CLOSING FEES/ OTHER CHARGES
Closing fees cover documentary stamp tax, transfer fees, registration fees, notarial and documentation fees and other administrative and handling fees in order to transfer title to buyer’s name.
ASSOCIATION DUES
Association Dues are assessment of the community’s regular operational expenses based on the operating budget and projected expenditures for the year. This is collected monthly and comprises the homeowner’s share of condominium/subdivision expenses.
Payment of Association Dues will automatically start from the day your property has been accepted or deemed accepted.
Payment of Association Dues will automatically start from the day your property has been accepted or deemed accepted.
TURNOVER FEES
Turnover Fees usually cover the following:
- Meralco Service Deposit
- Power Bill Deposit
- Water Bill Deposit
- One-time joining fee for Condominium Corporation/Homeowners Association
- Monthly Association Dues: Prorated for the current month and two (2) months advance
- Other special assessments
REAL ESTATE PROPERTY TAX
A province or city or a municipality within the Metropolitan Manila Area has a uniform rate of basic real property tax applicable to their respective localities as follows:
- (a) In the case of a province, at the rate not exceeding one (1%) of the assessed value of real property; and
- (b) In the case of a city or a municipality within the Metropolitan Manila Area, at the rate not exceeding two percent (2%) of the assessed value of real property.
MACEDA LAW
To protect buyers of real estate who make the purchase on installment basis against sellers/ owners who impose onerous and oppressive conditions, Republic Act No. 6552 also known as the “Realty Installment Buyer Act” or the “Maceda Law” was enacted in 1972.
Under the law, in the case where less than two (2) years of installments were paid, the seller must give the buyer a grace period of not less than 60 days from the due date of installment. If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after 30 days from receipt by the buyer of the notice of cancellation of the demand for rescission of the contract by a notarial act.
In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants, where the buyer has paid at least two (2) years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:
Any stipulation in any contract entered into contrary to the provisions of the Maceda law is null and void.
Under the law, in the case where less than two (2) years of installments were paid, the seller must give the buyer a grace period of not less than 60 days from the due date of installment. If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after 30 days from receipt by the buyer of the notice of cancellation of the demand for rescission of the contract by a notarial act.
In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants, where the buyer has paid at least two (2) years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:
- (a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him, which is fixed at the rate of one (1) month grace period for every one year of installment payments made, provided that this right must be exercised by the buyer only once in every five (5) years of the life of the contract and its extensions, if any; and
- (b) If the contract is cancelled, the seller must refund to the buyer the cash surrender value of the payments on the property equivalent to 50% of the total payments made and, after five (5) years of installments, an additional five percent (5%) every year but not to exceed 90% of the total payments made, provided that the actual cancellation of the contracts must take place after 30 days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.
Any stipulation in any contract entered into contrary to the provisions of the Maceda law is null and void.
Sources:
- DMCI Homes Buyer’s Guide
- Real Estate Laws by Nancy Joan M. Javier, Ll.M.
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