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FAQ
Got questions? We’ve got answers. Learn everything you need to know about the Philippine real estate process in our comprehensive FAQ section.
Can I buy property in the Philippines when I’m based here abroad?
You can purchase property in the Philippines remotely, as almost all aspects of the process can now be handled online. After electronically signing the reservation agreement and transferring the reservation fee, you will need a representative, known as an attorney-in-fact, to sign the Contract to Sell and Deed of Absolute Sale on your behalf.
How do I designate someone to be my Attorney-in-fact?
To buy property in the Philippines from abroad, you’ll need a Special Power of Attorney (SPA) to designate your attorney-in-fact (AIF) and specify the property they are authorized to purchase on your behalf.
This document must be consularized or apostilled unless executed in the Philippines, where it simply needs notarization. Developers and banks usually provide a SPA template, but for private listings, an attorney may need to draft one for you.
What is a consularized document?
Consularization is the process of authenticating a legal document through a consul’s office, which includes the consul’s signature and attaching a red ribbon, hence the term "red ribbon."
Any legal document from abroad must be consularized by the Philippine Embassy/Consulate General or apostillized by the issuing state to be legally recognized in the Philippines. After obtaining the SPA, print two copies on long bond paper, have both spouses sign if married, and schedule consularization at the nearest embassy.
What is an Apostilled document? What is the difference between an Apostilled and a Consularized document?
An Apostille is a certificate that authenticates the origin of a public document, intended for use between countries that are members of the Apostille Convention, such as the United States and the Philippines, which joined on 14 May 2019.
This process is generally quicker and more convenient than consularization, which is necessary in countries not part of the Convention, like Canada. The main difference between an Apostille and a consularized document lies in the method and appearance of authentication.
Where do I get an Apostille?
If you’re an Overseas Filipino Worker (OFW) needing an Apostille, you should visit the nearest Philippine Embassy or Consulate in the country where you are located. These diplomatic offices are authorized to issue Apostilles for documents that will be used back in the Philippines. This service ensures that your documents are legally recognized in both the host country and the Philippines.
When buying a pre-selling property, do I really need to submit Post-dated checks?
Yes, when buying a pre-selling property in the Philippines, it is common practice to submit post-dated checks. These checks cover the installment payments for the property, as many developers require this method for monthly payments. This requirement helps ensure a commitment from the buyer and provides a consistent payment schedule for the developer.
How do I pay for a private listing if my money is still here abroad?
If you’re a foreigner or an OFW buying a property in the Philippines and your funds are still abroad, you can transfer the payment through international bank transfers or remittance services. Ensure the transaction complies with the Philippine banking regulations regarding foreign currency transfers.
Additionally, consult with your bank or financial advisor to handle the transfer securely and to understand any potential fees or exchange rate issues.
What are the main responsibilities of my AIF?
The main responsibilities of your Attorney-in-Fact (AIF), when you’re buying property in the Philippines, include signing legal documents such as the Contract to Sell and the Deed of Absolute Sale on your behalf.
Additionally, your AIF handles transactions and negotiations with the developer or seller and ensures compliance with all necessary legal procedures. This role is crucial for managing the property purchase effectively while you are abroad.
I am a natural-born Filipino but now has acquired the citizenship of another country. Do I need to be a dual citizen to acquire property in the Philippines?
As a natural-born Filipino who has acquired foreign citizenship, you do not necessarily need to be a dual citizen to acquire property in the Philippines, but there are restrictions.
Former natural-born Filipinos are eligible to own land in the Philippines with specific limits: up to 1,000 square meters of urban land or one hectare of rural land for residential purposes, and up to 5,000 square meters of urban land or three hectares of rural land for business purposes, as per Philippine laws (RA 8179 and BP 185).
Do I need to be a dual citizen to get a home loan?
Most Philippine banks require citizenship for home loan applications, but BDO uniquely offers loans to applicants who are not dual citizens, albeit at an interest rate about 1-2% higher than usual.
Who will manage my condo unit/house for me?
Once you invest in a condo unit or house, you’ll need to decide on management for maintaining the property, handling repairs, and paying taxes and dues. You have three options: manage the unit yourself, have a relative oversee it, or hire a professional property manager in the Philippines. Most owners prefer to entrust a relative with these responsibilities, but hiring a dedicated caretaker is also an effective solution.
Is my unit fully furnished?
Pre-selling units are often turned over unfurnished unless you bought the model unit. Developers often furnish their model units and sell them once the project is sold out. Model units have a higher selling price because it has been interior designed and furnished.
I am a foreigner, can I own land in the Philippines?
Under the Foreign Investment Act of 1991 (Republic Act No. 7042), foreigners can purchase real estate in the Philippines by establishing a domestically owned business, with registration required at the Securities and Exchange Commission (SEC). While foreigners can own up to 40% of the company, this business can acquire various real estate assets including land, houses, condos, and office buildings.
Can a foreigner own a condo in the Philippines?
Generally, a foreigner can buy a condo in the Philippines, but they must adhere to the Condominium Corporation’s ownership cap, where only 40% of the property can be foreign-owned, as mandated by Philippine law.
This ownership includes not only the individual condo unit but also shares in the common areas. The condominium corporation itself must be at least 60% Filipino-owned, under the Condominium Act (R.A. 4726) as amended by R.A. 7899.
Can a foreigner avail of a home loan in the Philippines?
Foreigners generally cannot obtain loans in the Philippines unless they are married to a Filipino, who would then act as the primary borrower with the foreigner as a co-borrower.
For purchasing condo units in the Philippines, foreigners have three options: pay in cash within 30 days of reservation, opt for deferred cash payments over 12 to 50 months depending on the project’s turnover, or pay for equity first and the balance in cash upon unit completion.
