One of the best parts in property acquisition is the last and final part, the transfer of ownership of the land or property. Before you get the property under your grasp you still need to settle any remaining balance. Both the buyer and the seller need to settle any government fees and taxes. Even if you already have the funds and all necessary documents for the transfer, without settling the taxes and fees you will not get a hold of the property.

The process of transfer ownership depends on the property that you purchased. The transfer of the ownership for the property usually take place at the Land Office where you will register the property under your name or your company. If you bought the property from a developer even before the said development is completed, the transfer will happen after the property has been completely constructed and ready for occupancy, the title deed will follow suit. The usually process before the transfer of ownership is to settle the remaining balance on that day itself at the Land Office.

 

Table of Contents:

  1. Taxes and Fees
  2. What are the Taxes and Fees for transfer of ownership?
  3. Sabai Property Law Firm can help you!

 

1. Taxes and Fees

Prior to the Ownership title transfer, there are a couple of taxes and fees that needs to be settled first in order to proceed with the transfer successfully. There are a couple of things that you have to consider in terms of the taxes and fees.

Here are some FAQS with regards to taxes and fees (Frequently Asked Questions):

  • Who will pay what?
  • Should the buyer and seller equally split the taxes and fees?
  • Is it okay if only one party will take care of the taxes and fees? 

The taxes and fees are usually discussed and settled by both the buyer and the seller, whoever will settle the mentioned financial liabilities should also be included on the Sale and Purchase Agreement between the buyer and the seller or developer.

2. What are the Taxes and Fees for transfer of ownership?

The buyer and the seller have joint responsibility on settling the government taxes and fees. There are a couple of taxes that needs to be settled before the transfer of ownership will be approved and legalized. Stamp duty tax or special business tax, transfer tax and withholding tax as well as the transfer fees.  Please refer to the following:

  1. The Special Business Tax (SBT) – is 3.3% based on the selling price of the property. This will only apply if the property to be sold is within the first five years of ownership. This is paid by the seller.
  2. Withholding Tax – 1% of the appraised property value, this is paid by the seller.
    • If the property seller is a company the withholding tax is 1% of the sales price or 1% of the assessed value, whichever is higher.
    • If the property seller is an individual the withholding tax is calculated on a progressive income tax scale.
  3. Stamp Duty – 0.5% of the total registered value of the property. This is usually paid by the seller.
  4. Transfer Fee – 2% of the property value based on the registered value. This is usually paid by the buyer.

3. Sabai Property Law Firm can help you!

Our law firm can provide the most convenient solutions with regards to settling taxes and fees. Our service also includes the following:

  • Accompany our client to the Land Office on the day of the Ownership Transfer.
  • Preparation of proper documents and heads up about the remaining balance and estimated cost of the Taxes and Fees.
  • If our client cannot go to the Land Office for the Ownership Transfer, we will prepare a Power of Attorney that will give our law firm or any preferred person (by our client) to represent him at the Land Office.

For more information about Ownership Transfer and our Property Services, please do not hesitate to contact us. Sabai Property Law Firm is always here to help and provide information.