Advice needed on Sale of Property

I'm going to say my thoughts,  with no experience on the subject. But my response is from thinking about your exact wording.

Say what? I am wondering if this is a US attorney or a Philippines attorney for one thing.

1. Is the real question getting your hands on the money? Or is it making sure your buyer pays?

2. What lawyer would ever suggest using them will reduce your capital gains? By taking a major cut? Or by just embezzling it?

3. How do we get real estate money in the states? It's escrowed. You give title (or bank does) and escrow officer gives you check.

So now, are you trying to reduce tax or get paid? That's the real question.

Reducing property sales tax is practiced here but illegal. People selling property often reduce (officially in their favour) the sale price of the property, 2 sets of paperwork (like a fixer, stay away) as for giving power of attorney to your mouth piece and only my opinion,,,,, don't go there, the sale can be accomplished from a different country, been there and that's why God created the internet.

As Larry mentioned in #2, that's fraud and if you put them in control you will lose, stay in control. Don't ask the purchaser to pay your CGT as that is also illegal though many here try, make sure you have clean title and Municipal and Barangay fees are up to date, has the property been surveyed correctly as you don't want to be selling what is not yours.

Taxes? 3 things in life are sure, birth, taxes and death.

Hope you find your answers, google can be your best friend and BTW welcome to the forum.

Cheers, Steve.

If you are are talking about a Filipino attorney then if that is what you decide to to (give a Filipino  attorney power of attorney over your property) then you can probably say goodbye to whatever monies are realized from the sale of your property unless he's your brother........ even then....... who knows.

Walk softly but always carry a big stick.

Reverse situation we purchased a property here and the reputable agent (no problems with them) recommended an attorney for us to complete the sale legally, we paid the quoted price up front to secure and half way through the process the attorney disappeared, Manila I believe.

Fortunately for us the agent as he recommended that mouth piece engaged and paid the costs to complete the sale and legals out of his own pocket, no more fees to us. We were offered bribes and fixers to expediate the sale and we said no, do it by the legal book, that's why it took 3 more years to finalize.

I'm sure the agent was well out of pocket as the brief to the agent and original mouth piece was to have the land encumbered with my 25 + 25 year lease,,,,,, we received the title and no lease, they did it again and 3 years later received the new encumbered title,,,,,, lots of frustration but no costs to us.

Be very very wary here when it comes to legal eagles especially if they look for power of attorney and their ineptitude and ability to fleece to, that's their focus.

OMO.

Cheers, Steve.

@bigpearl Walk softly but always carry a big stick. Haha i like that one..and how true it is..

I'm going to say my thoughts, with no experience on the subject. But my response is from thinking about your exact wording.
Say what? I am wondering if this is a US attorney or a Philippines attorney for one thing.

1. Is the real question getting your hands on the money? Or is it making sure your buyer pays?

2. What lawyer would ever suggest using them will reduce your capital gains? By taking a major cut? Or by just embezzling it?

3. How do we get real estate money in the states? It's escrowed. You give title (or bank does) and escrow officer gives you check.

So now, are you trying to reduce tax or get paid? That's the real question.
-@Larry Fisher

The Lawyer is from the Philippines.   He said that after the fees are taken from the sale it will lower our cap gains, instead of just getting paid.    Just wanted to get people's advice here, since it's been 3 years of jumping through hoops to get to this point.  Frustrating to say the least.

We'll start researching Escrows, Thank you so much!

@bigpearl Thanks for the advice!   Really love this forum.   It's so hard to get objective advice.  3 years and we're finally at the point of actually selling, don't want to screw it up at the finish line

@bigpearl Walk softly but always carry a big stick. Haha i like that one..and how true it is..
-@Ivo sonnenberg

Variation of Teddy Roosevelt's  "Talk softly, but carry a big stick, you will go far."

I'm going to say my thoughts, with no experience on the subject. But my response is from thinking about your exact wording.
Say what? I am wondering if this is a US attorney or a Philippines attorney for one thing.

1. Is the real question getting your hands on the money? Or is it making sure your buyer pays?

2. What lawyer would ever suggest using them will reduce your capital gains? By taking a major cut? Or by just embezzling it?

3. How do we get real estate money in the states? It's escrowed. You give title (or bank does) and escrow officer gives you check.

So now, are you trying to reduce tax or get paid? That's the real question.
-@Larry Fisher

The Lawyer is from the Philippines.  He said that after the fees are taken from the sale it will lower our cap gains, instead of just getting paid.  Just wanted to get people's advice here, since it's been 3 years of jumping through hoops to get to this point. Frustrating to say the least.

We'll start researching Escrows, Thank you so much!
-@Bella79

I could be wrong, but that just sounds like a setup to me. Best wishes you get it all worked out.

I agree with above posts, if it was me I would spend some money, buy tickets and fly here to receive the funds myself and close the deal, seller is usually responsible for Capital gain sales tax here...so you need to budget that in to your sale price. Let your attorney take care of all the Paperwork but don’t put the cash in his hands...

Hello.

My wife and I are trying to sell our house and lot in the Phils but most agents or realtors offer us a net price.

They ask for “over-pricing” in which we get paid too little, the buyer pays all of the taxes and costs and the agents keep the amount left over.

i.e. the owner gets duped because they don’t know what the market value of their property is.

The owner loses more when a “favourable” amount is written in the Deed of Absolute Sale and less Capital Gains Tax is paid.

That’s despite us offering a very generous 5% agent commission on the gross sale price.

Can it be specified please in an Authority to Sell or Letter of Intent document to ensure finishing up with a true net amount and paying “only” a 5% agent commission?

Apologies to @Bella79 for thinking any house-sale question could be posted.

This might be useful advice anyway…

As I said in my previous post, we’re trying to sell but we’re currently out of the Phils.

When I tried insisting upon an escrow account to our most favourable (direct) buyer, they said both the BPI and the BDO banks would require both parties to be physically present to sign contracts and that it would take months. We’re doubtful about the veracity of this but have decided to go there physically anyway.

In case you haven’t got this far yet and want to use a real estate agent, get one that will accept a fixed commission on the gross sale price. Five percent is always asked for but it’s negotiable.

Try to avoid what’s known as “over-pricing” whereby you’ll be offered a net selling price and you’ll be ripped-off as:

  1. you don’t know the market value of your property as well as the agent who could sell for a much higher gross sale price;

  2. the agent will probably pay less Capital Gains Tax than they should by stating a lower property value in the Deed of Absolute Sale;

  3. the agent may have a much cheaper notary and/or attorney than what you were told.

I think @bigpearl made a good point on June 11 at 06:49 when they said it was illegal for the purchaser to pay the CGT.

If the seller pays this, the gross selling price can account for it and the total agent remuneration can easily be determined.

@Bella79 hi i have been buying and selling property in the Philippines for many years. you need to look at the following

1) do you have a clean title?? this means has the land been registered in your Philippine partners name by the denr, and register in the capital of the area you are in.

**a dead of sale isnt good enough, it will do if you want to take the money and run** this is not our way.

if you do not have a clean title, which would mean all the checks on possible later claims would not be forth coming from family members i.e unheard of family members.

(we have walked away from buying property because there isn't a clean title).

if you have a clean title, the next move would be to get the services of a attorney (he/she) will make a deed of sale which will state that the parcel of land, and house are being sold to xyz.  this deed of sale is a legal document, once signed and notarized. the house and lot becomes the other persons.  so to get your money, i personally would have my bank, which is a British bank registered in the Philippines release the deed of sale, when full and final payment has been received.

THE MONEY IS IN YOUR BANK. NOT SOMEONE ELSES.  i trust attorneys as far as i can throw them. they love to put problems in the way for more money.  so escrow is the way to go.  don't trust anyone except yourself.  if you want to see an actual land title go to [link under review] i am not advertising, as you are selling.  in that site you will see the title and there are 3 sets of numbers, each relate to the parcel of land.

if you are buying/selling do not be fooled with oww this is my portion to sell,  many many people have sold land under the feet of others in the family.  to get a clean title each and every member who has a claim on that land, must have signed over there portion, and it is register by an attorney.

for you selling, DONT TRUST OTHERS WITH YOUR MONEY.