There are things we want to achieve in our life and one of which is to acquire your own property to build your forever home in your chosen location wherein you can enjoy the whole community. Buying a vacant lot takes a lot of courage and dedication. For starters, it is a complex and important decision that you should be able to take responsibility of. There are many factors you need to consider on how to buy a lot in the Philippines.
Buying a lot is different from buying a house and lot that you can just occupy and start living with it. You can use the vacant lot as a long-term investment or even start making a business out of it. Vacant lots appreciate over a period of time. You can even start making a business out of it by making it a commercial space, or build a housing complex for people to rent. You just have the resources to start making something out of it.
Read Also: 5 Benefits of Buying Real Estate Now
Documents needed when buying a lot in the Philippines:
There are a lot of things to consider when purchasing lots. Here are the documents needed when buying a lot in the Philippines:
1. Letter of Intent
A letter of intent is a non-binding document that states your will to purchase the lot with certain payment terms and conditions, process of the reservation fees, and other financial concerns when purchasing the lot and where you can state the detailed description of the lot you are purchasing. Once the seller acknowledges the letter of intent, the seller will affix its signature on the document and should be able to make a reservation of the property to the buyer not unless the buyer breached the agreed and indicated terms and conditions in the letter of intent.
2. Contract to Sell
A contract to sell will be drafted by the seller to be given copies of to the buyer. This document will be legalized by the notary public and should indicate the final agreements regarding payment terms, down payments, other financial concerns, and other documents needed when buying a lot in the Philippines to acquire the property. Once the contract is finalized and notarized, the seller’s responsibility of to take off the sale of the recently purchased lot on the market, and should not be available for sale anymore to anyone. The ownership of the purchased lot will be remained in the seller’s name until final and full payment has been made.
3. Deed of Absolute Sale
A deed of absolute sale is given and processed by the government agency once the final and full payment has been done by the buyer. It is a legal document that states that the land acquired is officially and legally sold to a new owner. It will then be filed in the Registry of Deeds and will be issued to you. The deed of absolute sale is a document that should indicate the names of both parties with signatures, the transfer certificate of title number with its description, and the final selling price.
4. Certificate of Title
A certificate of title will be provided to the owner of the lot that indicates and certifies you as the new owner of the lot purchased. This is will be given and issued by the government agency, Registry of Deeds as proof of the existence of the new owner.
5. Tax Declaration
A tax declaration will be requested in the assessor’s office that you will need to present the acquired title and a photo for assessment of the lot. The tax declaration will then be released and should state that all property taxes will now be under the new owner should oblige to its monthly dues indicated. This is also declared to be the success of acquiring the property purchase.
Things to Check When Buying a Lot in the Philippines
Location is the most important consideration. Whether you are buying real estate an investment, you should consider its demand and its future resale value. When you will start a business, do not buy a lot in a location in a secluded area where it is hard to reach by the people. If you are buying it for personal use or building a home, choose a place where you can enjoy all the life conveniences and check for its safety parameters and neighboring establishments.
When buying a lot in the Philippines, you should consider all the possible accessible roads you will go through, the schools nearby, proximity to your workplace, near restaurants, and shopping centers. To summarize, shop around the community and check all the things around for convenience and safety.
Buying a lot is both an investment of time and money. Time to process all the documents needed when buying a lot in the Philippines and the money to properly execute the plan you have in mind. Have a list and a concrete plan on how you want to execute the acquired lot.
Title insurance is recommended to ensure your safety in purchasing a lot or property. A cost to survey is also a must to check all future problems it may incur and how you would be able to solve them once you start building your home. And finally, the building cost.
Building a property from the ground up takes a lot of money. You will need to consult professionals to properly execute the plan you have in mind. Without them, you could make the mistake of wasting your money as they know better than you do.
3. Zoning restrictions
Zoning laws are indicated what type of property can be built and should not be built. These laws are responsible for a good community structure in wherein there are no near damp sites or factories near your homes for safety. As a buyer, you should make sure that the lot you purchase is a place where you can build your own home. You have to check all the limitations you have for the lot you purchase and there won’t have any problems related to local zoning laws.
4. Ordinances and Covenants
Small pieces of land are sometimes meant to be sold to be made as subdivisions. These subdivisions are governed and dues that need to be paid monthly.
Buying a lot in a subdivision is complicated things as there are a lot of things to consider and follow. These covenants or restrictions are private agreements that you should follow as well as ordinances in each city. It can be a complex thing but all of these are applied to all landowners and should have the same standards as you.
Utilities like electricity, phone, and internet lines are essential to all homeowners. You have to coordinate with the local agencies for power and other utility lines. These are the things you need to consider as these entail additional costs on your part if none is provided. You should apply on your own if that happens and this entails additional time spent on your investment and additional cost for money.
6. Road Access
Accessibility is one of the essential items you should consider when buying a lot in the Philippines. A place where you can easily access going in and out of the city for a quick gataway, a place near your work, an area where you can easily take public transportation, and near your children’s school. A place where you can be conveniently located and all the major roads are present. It is also a factor for your safety.
Flooding is one of the problems here in the Philippines. If you are to purchase a lot that will incur and store flood, it will just damage the property and will accumulate more costs for cleaning and re-planning the structure of your newly acquired lot.
Tips when buying a lot in the Philippines
Buying a lot is an investment of your lifetime savings and hard work. You should be able to execute properly and prepare all things needed to build your perfect home or your location to your new business. Here are some tips when purchasing you new lot:
1. Look for a capable agent
Find an agent that will help you through the acquiring process that you can trust. An agent who will be honest with you about all the flaws and things you need to know once you purchased the lot. It is important to know also the history of the land or lot your acquiring to know its past issues and be able to consider it in your next big purchase.
2. Prepare your finances
It is easier to process payments and documents needed for acquiring the property you need if you are financially prepared. It is right to be prepared in all aspects as there are extra costs once inspections are made and done. Construction is not cheap and should be prepared in all aspects.
3. Find the right community
When purchasing a lot in a community, you need to follow the standards and laws indicated by the home owner’s association. It is important to check the neighborhood to know if you have the same standard as you.
4. Environmental testing
These tests will be done by a professional and could cost a certain amount of fees but you should not skip this as environmental tests are a way to check if your property could stand the test of time whatever the condition may be.
Bria Homes offers an affordable house and lot for sale and affordable condominium for sale in the Philippines. Bria communities are master-planned to offer ease, and convenience, and ensures the safety of the family to all its residents. A home built for your family is very attainable with a bank loan to be able to achieve your dream home.
Written by Yna Faundo