A word of advice in real estate dealings

When you engage the services of a real estate agent, salesman or broker, ask for his/her real estate license. The Brokerage Law (Act # 2728) and its implementing rule (DTI MO # 39, SERIES OF 1985) regulates the realty service practice in the Philippines. The Law and the rules mandate the licensing of every person who performs the following acts and practices involving real properties: Offering of the Sales, Advertising, Listing, Promoting, Mediating, Negotiating, and Effecting the meeting of minds for the sale, purchases, exchange, mortgage, lease or joint venture or other transactions in real estate and any interest therein.

The Department of Trade & Industry is the governing body that issues the real estate license. BP# 220 and PD 957 also require the registration of real Estate Brokers & Salesmen at the Housing and Land Use Regulatory Board (HLURB).

Yours truely, Michael Abonitalla is registered with the Housing and Land Use Regulatory Board / HLURB and duly licensed by the Department of Trade and Industry in Cagayan de Oro City, Philippines with License no. RES-20080-06-01520 under RPM Realty.

DEAL ONLY WITH LICENSED REAL ESTATE PRACTITIONERS.

Requirements in buying a house

If you are wondering about the requirement and how to go about in buying a house here are the general checklist of requirements in buying a house and lot thru Pag-ibig and In-house financing from the developer of the community. For more details about your requirements, you can contact me.

For Pag-ibig Financing:

A. Private/Government Employee
[ ] Latest 24 months HDMF Premium
[ ] Certificate of Net Take Home Pay
[ ] Certificate of MPL repayments (if applicable)
[ ] Payslip/Payroll Voucher (lates 1 month)
[ ] Lates ITR/W2

B. Overseas Contract Workers
[ ] Latest Job Contract (original or if photocopy must be certified from employer)
[ ] Health Statement/Medical Health Result (original or certified photocopy)
[ ] Special Power of Attorney (SPA) (Notarized from the Philippine Embassy/Consul)
[ ] Passport (photocopy)

C. Self-Employed
[ ] Latest 2 years original copy of ITR w/ audited Financial Statement
[ ] Business Permit (photocopy)

For In-House Financing

Based on buyers income (please see above requirements if applicable)
Note: To issue Post Dated Checks of the following:
- Post-Dated checks for PF/Equity amortization
- Post-Dated checks for In-house amortization

Other Documents:

[ ] Latest Residence Certificate (photocopy)
[ ] Birth Certificate (photocopy)
[ ] Marriage Contract if applicable (photocopy)
[ ] Death Certificate if applicable (photocopy)
[ ] Court Order (if legally separated)
[ ] Tax Identification Number - TIN Card (photocopy)
[ ] 2 pcs. 1×1 I.D. Picture with signature at the back (if applicable)
[ ] 2 pcs. Valid ID’s if applicable (photocopy)
[ ] Proof of Billing if applicable (photocopy)

Housing loan for OFW’s with SSS

The Overseas Filipino workers or OFW’s can take advantage of SSS Direct Housing Loan Facility that aims to provide low-cost housing for your family in the Philippines. If you’re younger than 65 years old, a certified OFW and an active SSS member with at least 12 months continuous contributions, you may be qualified to receive a housing loan from SSS. Loanable amounts for socialized housing is Php 300,000; for low-cost housing you can get a loan from Php 500,000 to Php 1,000,000. All loans can be paid in five years or for a maximum of thirty years, so long as it doesn’t exceed the building’s economic life. Interests rates are 9% for Php 300,000 loans, 13% for Php 500,000 and 14% for Php 1,000,000.

For details and for more information, visit the SSS website or visit the nearest SSS office in your area in the Philippines. In Cagayan de Oro City, it is located at Carmen going to Patag. There are branches also in key cities around the world you can visit too.

Benefits of In-House Financing

In-house financing is a loan directly from the developer or the subdivision. Most home buyers in the Philippines choose in-house financing over bank loans because processing the former is easier and faster than the latter.

For one thing, no background checks of the applicant are made and the developers who offer the in-house financing program do not usually require the applicant to submit proof of income. The approval of the loan is made once the buyer is able to pay the reservation, submit the required documents, and fill out the forms. The interest rates of in-house financing for the duration of the loan is also fixed, meaning that the amount the buyer has to pay is not affected by any political or economic developments, which makes bank interest rates rise up or fall down.

Bank loans have lower interest rates and greater flexibility (9% per year for a 1-3 year loan, 12% for a 15 year loan), but many buyers get turned off by the stringent requirements and the length of time it takes for the loan to get approved. One of the requirements for a bank loan is a proof of income - a reason why freelancers or workers in the informal sector need to formalize their businesses before they can get a loan. Some applicants who earn by commission also do not qualify for a loan because they don’t have a fixed salary. While there are banks who are more flexible about these nuances and only need proof of consistent income, these are few and far in between.

Most developers and subdivisions here in Cagayan de Oro have services like this.

REIT to be Introduced in 2009

Despite the current global financial crisis, the Philippine government is still planning to push through with introducing Real Estate Investment Trust (REITs) into the local equities market. REITs are legal entities whose functions are to allow small and large investors to participate in owning income-producing real estate properties and other similar assets. REIT shares are traded like stocks, which means they are affecting by the ups and downs of the local and global stock market.

President of the Philippine Stock Exchange Francis Lim told the press at the REIT Forum in Makati that regardless of the external shocks going on right now, our market has to keep on moving. The government and the private sector must keep on creating an environment where investments can flourish, and this includes implementing measures to insulate the local stock market from external shocks and making it easier for investments to push through. [Read more]