So you have finally found your dream home. Now comes the next part: the paperwork. Documents related to purchasing a property are not only mandated by law or required by the developer — they also protect you and your hard - earned money.
So you have finally found your dream home. Now comes the next part: the paperwork. Documents related to purchasing a property are not only mandated by law or required by the developer — they also protect you and your hard - earned money. To kickstart your journey — and to make things easier — we have created a checklist for you of documentary requirements in purchasing a property. Check them out below and make sure you tick everything:
As the name states, this non - binding letter expresses your intent or interest to purchase a property. Your LOI should answer the following questions: • What are the details of your desired property? • How much is it? • How much will you pay for reservation / as downpayment? • What are your desired payment schedule and terms? Not sure how to draft yours? You may ask an agent or a lawyer to ensure all terms will protect both you and the seller or developer.
This document from your agent effectively puts the property on hold for you and cannot be sold to a different buyer. Similar to the letter of intent, a reservation agreement should include details of the property such as specifications and address, your payment mode and terms, and the period of which the property is reserved for you. This stage is also when you should pay an “earnest money” or downpayment to secure your hold on the property. It will then be deducted from the contract price.
A contract to sell is given once the downpayment is given. This, however, does not mean the property is under your name right away as you have to pay your remaining balance. Instead, this notarized document outlines the final terms and conditions of the sale that you and the seller or developer both need to comply with before the full payment is made. Any breach of the terms agreed upon may lead to the termination of your contract.
This document is given once all conditions in your contract have finally been met. This includes having the remaining balance paid for as well as corresponding registration fees and documentary stamp taxes. A deed of absolute sale states the property is being transferred to your name and must be filed to the Registry of Deeds in your city.
It only means one thing: your dream property is now yours. A certificate of title issued by the Registry of Deeds officially states you as the owner of the property. Condominium buyers will receive a condominium certificate of title (CCT) while house buyers will receive a transfer certificate of title (TCT).
Being a property owner also means being subject to tax obligations. A tax declaration form may be requested and submitted to your City Assessor’s office along with a photo of the property and the certificate of title. These documents may sound a lot but it will all be worth it once everything on this list has been ticked. Now go get your dream house.