Owning land is a dream for many Filipinos. Having a land property registered under your name is a significant achievement that can bring irreplaceable financial and social benefits. Land acquisition is a great first step toward achieving life goals like building a home, constructing your own commercial building for business, or even developing the land as a livestock or agricultural farm to increase income and return your investments.
Land acquisition is a complex business and many local regulations need to be followed before it can be done successfully within legal bounds. But whether you are a Filipino citizen or a foreign investor, knowing the ways to purchase land in the Philippines is important if you want to own and utilize the property. In this article, we will explore three different ways one can buy land in the Philippines. We will also explain the process that one has to follow when buying land.
3 Ways To Acquire A Land in the Philippines
Image from InCorp Philippines
Owning a land property in the Philippines is simplified by the government, but each step is crucial and should not be overlooked. The local regulations surrounding land acquisition are shaped by laws, the classification of the land, and other factors that may be unique to the case. Below are three ways to follow when acquiring land property in the Philippines.
Purchase The Land From the Previous Owner
One of the most common ways to acquire land in the Philippines is by purchasing the property from its previous owner. Having a land title is significant, and it is a requirement that one should obtain before being recognized as the legal owner of the property. To purchase land in the Philippines, one can utilize a PAG-IBIG loan, a bank land purchase loan, or government-assisted funds for special cases like land ownership for Filipino farmers.
Inherit The Land Title From the Previous Owner
Another common way to acquire land in the Philippines is through inheritance. Many Filipinos who own land typically transfer their ownership to their closest kin or companion once they want to be relieved from proprietorship. There is no proof of family relation required in order to be eligible to inherit a land property from its previous owner if there is an existence of title transfer approval from the owner. However, it is important to note that only a person’s direct descendants will inherit a land property in special circumstances like untimely death without a last will and testament. There may be special laws and regulations that differ from case to case.
For Foreigners With Filipino Spouses: Purchase The Land Property Under Your Spouse’s Name
For foreign individuals, purchasing land in the Philippines has a couple more hurdles due to the local regulations that safeguard Philippine land ownership. In order to purchase land, foreign individuals usually would have the help of their spouse who has Filipino citizenship. Legally, the Filipino spouse would have the land title registered with their name.
How To Buy A Land In The Philippines
Image from Dream Agritech
Purchasing a land property in the Philippines necessitates acquiring important documents and an official transfer of ownership. Below are the steps to follow when buying land in the Philippines. Note that this is a general guideline and additional procedures and requirements may be included due to special circumstances.
1. Verify The Ownership
Before purchasing land, make sure to coordinate with the verified owner of the property before proceeding with the acquisition. This ensures that the transaction will all be legal and you will be receiving a government-recognized land title. To verify the ownership, make a request for a copy of the owner’s land title and have it checked in the Register of Deeds. Once the title is verified, check all the details of the document, preferably with the help of a professional.
3. Secure The Deed Of Sale
Once all the content of the land title is verified to be true, you can secure the Deed of Sale from the previous owner. The Deed of Sale is a document that states that the previous owner is relinquishing their proprietorship, which makes the acquisition of legal.
4. Pay The Property Tax
Transfer Taxes, Documentary Stamp Tax and Capital Gains Tax are some of the property taxes that need to be settled within the next 30 days after the Deed of Sale is finalized. These payments should be settled at the Bureau of Internal Revenue.
5. Get An Updated Tax Declaration Form
After all property tax is officially settled at the BIR, head to the Municipal or Provincial Assessor’s office where your land property is registered. Present all required documents to have the new Tax Declaration released.
6. Secure The New Land Title
Securing the new land title is the final step in purchasing land in the Philippines. After settling all pending payments and submitting all the necessary documents, the Registry of Deeds will make an updated title of the property, which a copy can be requested from the City Assessor’s office.
Buying A Land In The Philippines
Acquiring land in the Philippines can be a rewarding experience. Land properties offer so much potential to the buyer– from home construction to agricultural use, land can be a great asset to so many hardworking Filipinos. Follow the right, legal steps in acquiring land in the Philippines to ensure a prosperous and secure future for yourself and your family.
References
- AllProperties. (n.d.). Guide on How to Buy Land in the Philippines. AllProperties. Retrieved September 15, 2023, from https://www.allproperties.com.ph/guide-on-how-to-buy-land-in-the-philippines/
- Brittany Corporation. (n.d.). Land Ownership and Property Acquisition in the Philippines. Brittany Corporation. Retrieved September 15, 2023, from https://www.brittany.com.ph/blogs/land-ownership-and-property-acquisition/
- Fitz Villafuerte. (2021, August 11). The Ultimate Guide to Buying Land in the Philippines. Fitz Villafuerte. Retrieved September 15, 2023, from https://fitzvillafuerte.com/the-ultimate-guide-to-buying-land-in-the-philippines.html
