3 Basic Rights of a Buyer in the Purchase of a Condominium or Subdivision Units

Right to be assisted by a licensed real estate professionals

  • RA 9646. SEC. 29. Prohibition Against the Unauthorized Practice of Real Estate Service. No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in R.A. No. 9646 and the IRR is a holder of a valid certificate of registration and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission; and, in the case of real estate brokers and private appraisers, they have paid the required bond as provided for in R.A. No. 9646.”

The Philippine Regulatory Board has issued professional license identification cards for all brokers. If you are researching via internet, you may get the name, date of birth and license number and verify it at PRC website. The link is http://www.prc.gov.ph/services/?id=16. The search may be done on the name or the license number of the professional. It is a recommended that you will be assisted by a registered professional to avoid future problems. Moreover, the law requires that real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

 

Right to demand a receipt and get a copy of any contract

In every transaction particularly involving a real estate, buyer is advised to ask for the official receipts of any payments made. The official receipt is the best evidence of the transaction. Moreover, a company that provides an official receipt signals that the company is legitimate and doing the business rightly.

Sadly, despite being a big companies we could consider, there are still real estate developers who are stable and “with a name”  but are sneaky and conduct their sinister way to avoid paying the proper tax from their revenues. Let us not tolerate these kind of practice who cheat not only on the government, but also on us. Always demand for an official receipt, the one that has serial number and the business Tax Identification Number. Our tax should go where it belongs. You can do your part by reporting any developers who do not issue receipts to the Bureau of Internal Revenue.

 

Right to a Clean Title

Under Sections 25 and 26 of PD 957, Subdivision and Condominium Buyers Protective Decree,

“SECTION 25. Issuance of Title. – The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fees, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and delivered to the buyer in accordance herewith.

“SECTION 26. Realty Tax. – Real estate tax and assessment on a lot or unit shall be paid by the owner or developer without recourse to the buyer for as long as the title has not passed to the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.”

Upon full payment of the purchase price, the buyer of a subdivision lot or condominium unit shall have a right to possess and own a clean title. If the lot or unit is mortgaged, the owner/developer shall redeem the mortgage within six months from full payment so that the title could be delivered to the buyer. The only fee collectible from the buyer is the registration fee for the deed of sale in the Registry of Deeds. Realty taxes can be assessed on the buyer if he has actually taken possession and occupied the lot or unit prior to the transfer of the title in his name.