Transferring a title of property involves burdensome process that includes the heap of paper works and the fees that should be paid for.
Many buyers were asking about the cost to transfer a land title. Aside from the correct processing of the transfer, it is also important to know the costs.
As compared to other purchases, if you will buy real estate you need to expect for the various fees and taxes involved. Transferring land title is not the only expense, but also the taxes and other fees. There are several factors that are considered in determining the cost such as the following:
- Capital gains tax that is equivalent to 6% of the zonal value or the selling price
- Withholding tax, but only applicable if the seller is a corporation,
- Unpaid real estate taxes
- Commission of the broker
- Documentary stamp tax, which is 1.5% of the selling price
- Transfer tax paid at the local treasurer’s office
- Transfer tax paid at BIR
- Registration fee that is 0.25% of the actual selling price
- Miscellaneous and incidental expenses
As a standard practice in the Philippines, the buyer will be the one to pay for the transfer taxes, documentary stamp, registration fees, and miscellaneous expenses. The other expenses will be paid by the seller.
The arrangement for sharing the expenses should be mutually agreed by both parties before signing the Deed of Sale.
However, if both the seller and the buyer have no time to secure all the requirements and take the burdensome process of transferring the land title, they can consider hiring the services of land transfer companies.
According to Jake Loria, a licensed real estate broker, a land transfer company offers the services for a cost of Php30, 000 or within that price range.
To ensure that the transfer of title is promptly and properly processed, property buyers should consult a licensed real estate broker of a lawyer that specializes on real estate.