5 Steps in Property Acquisition Process
For a newbie, You may think it is hard to cater clients who wants to buy properties working or residing abroad. To some extent, it may or it may not, but on the average it is doable.
After Mr. Buyer has chosen his condo or house and lot in a pre-developed real estate projects, your question is what’s next? How do I proceed to help my buyer? What are the processes my buyer has to undertake?
Here are 5 basic steps in acquiring properties for clients outside Philippines:
1. After the buyer has chosen a specific unit on a specific project, he has to make the reservation, these are the requirements: Scanned copies of the following shall be sent thru email:
a. Filled up Reservation Form, (provided by the developer)
b. Buyer’s Information Sheet, Term Sheet (provided by the developer),
c. Reservation Fee, 2 Vaild IDs. If buyer is outside Philippines he can pay through a. direct deposit to developer’s account, or b. he may send his representative to make the reservation. The filled out and signed forms and the reservation fee is officially acknowledged by the developer. The property is duly reserved under your buyer’s name. Reservation is normally good for 30 days, subject for completion of the booking requirements.
2. Booking requirements are set of documents to be complied within 30 days (mostly) and after 30 days, he has to make his first monthly amortization on the equity. He can pay thru direct deposit to developers account or thru representative. Each payment are supported with Official Receipts. Agents are not allowed to receive any payments from the buyer. To facilitate collection of monthly amortization, developers would required post dated checks, but if this is not possible, a buyer may pay in cash on or before due date. At this point, buyer’s property is now booked, and he may now pay succeeding monthly amortization
3. If the buyer is halfway of the equity period, he would be required to sign the Contract to Sell, some as early as 1 month after 1st equity. This document needs the original signature of the buyer (docs can be send thru courier like DHL,Fedex, UPS, etc) or if he has a representative to sign in his behalf, such representative must have a Special Power of Attorney, consularized by the Embassy where the buyer is working/residing abroad. Developers have a form of Special Power of Attorney. At this point all requirements should be complete, ready for documentation and for loan processing in case of financing.
4. After the full payment of the equity, Condominium Certificate of Title- CCT if condo units (Transfer Certificate of Title – TCT if house and lot) are being transferred from developers name to the name of the buyer – as proof of ownership, ready for submission to the bank if financing, or to the owner after full payment of the total contract price is made.
5. For Bank Financing, basic requirements are as follows:
- 2 Valid Ids including passport
- Proof of Billing
- TIN (Taxpayer Identification Number)
- Certificate of Contract of Employment with compensation (consularized)
- Pay Slips 6 months, or Proof of remittance
- Business Permit (if self employed)
- Marriage Certificate (if married)
- Federal Income Tax Return (latest if buyer is permanently residing abroad)
- 6 months Bank Statement
- Special Power of Atty. (SPA) (consul authenticated)
Most banks would required a local address of the buyer for credit investigation purposes.
NOTE: All original copies required Payments will be made thru bank transfers or other means as prescribed by the financing institution. After the loan period, full payment of the mortgage has been made, the CCT will be released to the owner. Your buyer has to double check if the mortgage being annotated at the back of the title has been cancelled, as proof that subject property is free from liens or any obligations therein For Spot Cash property acquisition, precisely it’s less hassle, your buyer only needs her passport and a consularized Special Power of Attorney if the purchase is through her representative.