Real Estate Basics 101
SPA - Special Power of Attorney; an authority given to representative of OFW buyers to transact on his/her behalf.
Atty-in-Fact - Attorney in Fact; another term for SPA.
Cedula - Community Tax Certificate; not required for OFW buyer. If married, only spouse in the Philippines can submit cedula. If single, only the SPA is needed to submit.
Who are allowed as SPA or Atty-in-Fact for Pagibig? - Wife, Mother, Father, Brother, Sister or Friends.
Who are allowed as SPA or Atty-in-Fact for Metrobank? - Wife, Mother, Father, Brother, Sister or Fiancee.
Who are allowed as SPA or Atty-in-Fact for UCPB? - Wife, Mother, Father, Brother, Sister only.
MSVS - is given by Pagibig office after Buyer or SPA attends the 2 hour Pagibig counselling in our office every Saturday only.
Pagibig may request ESAV if MSVS has findings regarding membership contribution.
TIN - Tax Identification Number; OFW are exempted in tax. But TIN is a requirement in transfering lot Title to Buyer’s name. So SPA / Atty-in-Fact will apply a TIN in behalf of the OFW buyer. Applying is fast and easy.
COE - Certificate of Employment and Compensation; Gross salary and allowances must be indicated in the certificate. Must be Consularized by our embassy. Special Power of Attoreny Form if signed abroad must be consularized by our embassy. Only 3 pages is required to be consularized.
PDC - Post Dated Checks; is strictly required to be submitted within 30-60 days. Not submitting the checks will cause delay in loan processing and house construction.
What is the purpose of my Reservation Fee?
Reservation fee is part of your downpayment. So it will be deducted from your DP. It is not refundable. But you can transfer it to another unit location or owner. Provided, under same agent and developer. Only Personal Checks, Manager Checks and Cash are accepted as payment.
When will my Monthly Downpayment start?
Your first downpayment will start 30-45 days after you paid your reservation. No overlapping of payments since hindi magsasabay ang pagbabayad ng reservation at first downpayment at amortization. Downpayments can be transferred to another person or unit provided under same agent, developer and same price or price is higher than old unit.
Payments made will be duly credited in the new owner or choosen unit. If partial commission to Agent has ben released and there are past due penalties and interest incurred, these will be deducted to payments made (net of reservation). Transfer fee for this transaction is Php3,000.00 to be paid upon approval of request. Approval may takes 2 weeks.
When will my Monthly Amortization start?
The first monthly amortization will immediately start after you have fully paid the downpayment. Again, NO overlapping of payments since hindi magsasabay ang monthly downpayment at monthly amortization.
What is the purpose of my Processing Fee?Processing fees are payment for the following:
- Premiums for the first years coverage-mortgage redemption insurance (MRI) & fire insurance.
- Real property taxes for one year.
- Blue print of the houseplans (one set)
- Home Owners Association (HOA) dues for provision for preventive maintainace.
- Administrative and documentary expenses.
Are there hidden charges?
There are NO HIDDEN charges. Profriends Inc. DOES NOT charge move-in fees. You will apply for water and Meralco connection after house is turned-over and accepted.
How do I apply for my water line?
Estimated cost for water connection is Php3,800.00 (deposit & meter). Timetable is 1-2 weeks from application date. Cost may vary depending on choosen project.
How do I apply for MERALCO (electricity) line?
Estimated cost for electrical connection is Php2,700.00 (deposit & meter). Timetable is 3-4 weeks from application date. Cost may vary depending on choosen project.
What is the purpose of Construction Bond?
Is required BY PROFRIENDS only if Buyer construct improvement (tiles/fence/balcony) after house is accepted. Estimated amount is Php 5,500 – 10,500.00 depending on housing project choosen. This Bond will pay for any damages (should there be any) during construction of improvement period. Bond will be refunded if there is no damage done during construction.
Why do I have to pay for a Pre-termination Fee?
Profriends charge pretermination fee of 14% if you decides to loan the Balance or Loanable Amount of Inhouse Financing to Pagibig (Individual Application). You or thru your SPA, will apply the loan with PAGIBIG Office. Profriends will not handle the loan processing. While loan is on process, you will be paying amortization base on INHOUSE computation.
When can I move-in?
For BANK Financing
You can start the move-in process on your 16th month of downpayment period and once bank has approved the loan thru a Letter of Guarantee certification. These two (2) requirements must be present before you’ll be able to move-in. In case your loan is still pending due to unsubmitted requirements needed for loan processing, moving-in on the 16th month will not be allowed.
For INHOUSE Financing
Three (3) mos. after full payment of downpayment and submission of full requirements (docs & postdated checks). No need for loan take-out. If the 80% balance is thru individual Pag-ibig Financing, Move-in only after full payment of downpayment or equity, payment of pretermination fee and Title cost transfer and full submission of requirements.
For Spot Cash Buyers or Spot Full Downpayment
For non-RFO units, House completion and turnover will still follow by Developer’s house completion schedule as shown in the Inventory Sheet. For Ready for Occupancy Units (RFO) with Notice of Completion, Buyers can move-in immediately.
Important Reminders: Profriends, Inc. will not allow you to move-in or transfer unless ALL REQUIRED DOCUMENTS and POSTDATED CHECKS are fully submitted.
I’m under Inhouse Financing, can I improve/renovate my house?
Developer only accepts deletion of tiles in Bathroom & Kitchen countertop. Deletion charge is Php1,000.00. Letter of request must be sent before house construction starts. Approval of request takes 2 weeks. You will be informed. Buyer must get outside contractor to do the improvement of their unit. You can only start installation of tiles/improvement after house is turned-over.
I’m under Bank Financing, can I improve/renovate my house?
Developer do not accepts deletion of tiles in Bathroom & Kitchen countertop. You can only start installation of tiles/improvement after house is turned-over. Buyer must get outside contractor to do the improvement of their unit
Can Foreigners own real estate in the Philippines?
Generally, only Filipinos are allowed by Philippine laws to acquire by purchase, transfer or assignment any lands in the Philippines. However Foreigners may be able to acquire properties in the Philippines by any of the following:
Citizenship Issues and Land Ownership (Balikbayan)
The Law of the Philippine states that, "former Filipinos or those who are natural-born Filipinos but lost their citizenship are still entitled to own real state properties in the Philippines" but subject to some limitations. Below is a few guidelines to former Filipinos.
- Lease the Property - You can lease public and private land for 25 years with an automatic renewal for 25 years, (just enough time for return on investments). This is also a cheap alternative, but it makes it difficult to make any sort of investment return on a property. However, it is ideal for those thinking of retiring here. Unlike many countries such as Thailand or Indonesia, a lease on property for a foreigner is a very easy and straightforward step to take in the Philippines. This is the easiest, least time-consuming, and safest way for a foreigner to purchase small areas of land within the Philippines. It can be done directly with the owner.
- Through a Filipino Trustee or wife – Have a Filipino (you can trust) where you can put the title or ownership of property in his/her name. This is the most common way for small-scale investors to buy property here.
- Purchase land as a Balikbayan – The Government of the Philippines has recently passed the Dual Citizenship Act which gives all former Filipinos the right to purchase land within the Philippines.
- Form a Corporation – You can form a corporation with Filipino partners with the sharing of 40% foreign - 60% Filipino capital. This is the most iron-clad form of property ownership for foreign investors, and definitely the preferred form of property ownership for those thinking of establishing a resort, or tourism facility. In fact, the majority of existing resorts and businesses owned by foreigners are using this form of ownership.
- Inherit the land if your Spouse dies: This simply means, when your Filipina wife dies, you as the compulsory heir, together with your children if you have any, will become the legal owners of her property.
Citizenship Issues and Land Ownership (Balikbayan)
The Law of the Philippine states that, "former Filipinos or those who are natural-born Filipinos but lost their citizenship are still entitled to own real state properties in the Philippines" but subject to some limitations. Below is a few guidelines to former Filipinos.
- The land must be use for business and residential purposes only.
- Acquisition of Land may be through sale, donation, for closure, tax sale or execution sale.
- If land is for Residential purpose, their is a maximum of 1,000 square meters of urban land or 1 hectares of rural land allowed.
- You can acquire either Urban or Rural lots, but not both.
- If land is for Business Purpose, a maximum of 5,000 square meters of urban land or 3 hectares of rural land is allowed.
- A maximum of 2 lots not exceeding the maximum limit in total combined area is allowed. Lots must be located in different cities or municipalites.
- Either one or both spouses may avail of this privilege, but the above limits must be observed.