MODES OF ACQUIRING TITLE IN THE PHILIPPINES (TCT/CCT):
TCT - Transfer Certificate of Title
CCT - Condominium Certificate of Title
Private Grant –voluntary transfer or conveyance of private property by a private owner, such as sale
Public Grant – acquisition of alienable lands of the public domain by homestead patent, free patent,
sales patent, or other government awards.
Involuntary Grant – acquisition of private party against the consent of the former owners, such as
foreclosure sale, execution sale, or tax sale
Inheritance – acquisition of private property through hereditary succession
Reclamation - filling of submerged land, subject to existing laws and government regulations.
Accretion – acquisition of more lands adjoining the banks of rivers due to the gradual deposit of soil
as a result of the river current
Prescription – acquisition of title by actual, open, continuous, and uninterrupted possession in the
concept of owner for the period required by law
RIGHT TO OWN
1. General Rule – Only Filipino citizens and corporations at least 60% capital of which is owned by
Filipinos are entitled to acquire and own land in the Philippines.
2. Exceptions to the General Rule – Alien acquisition of real estate in the Philippines is allowed in the
a) Acquisition before the 1935 Constitution.
b) Acquisition thru hereditary succession if the acquiree is a legal heir.
c) Purchase of not more than 40% interest in a condominium project
d) Purchase by former natural born Filipino citizens subject to limitations prescribed by B.P. 185
and R.A. 8179
3. A Filipina who marries an alien retains here Philippine citizenship (unless the law of her husband’s country makes her assume the citizenship of her husband because of such marriage) and can therefore acquire real estate in the Philippines.
ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZENS
1. Mode of acquisition is not limited to voluntary deeds (such as sale or donation) but includes
involuntary deeds (such as foreclosure, execution or tax delinquency sale)
2. Maximum area that may be acquired:
a) For residential purpose – 1,000 square meters of urban or one hectare of rural land.
b) For business purpose – 5,000 square meters of urban land or 3 hectares of rural land.
Business purpose refers to the use of land primarily, directly, and actually in the conduct of business or commercial activities in the broad areas of agriculture, industry, and services, including the lease of the land but excluding the buying or selling thereof.
In case of married couple where both spouses are former natural born Filipino citizens, both of them may avail of the right provided that the total acquisition shall not exceed the maximum area allowed.
A transferee who acquired urban or rural land for residential purpose while still a Filipino citizen may acquire additional urban or rural land for residential purpose which, when added to that already owned by him, shall not exceed the maximum area allowed by law.
Rule in case of double sale: The priority of rights in case of double sale of titled property shall be governed by the following rules:
1. The buyer who acquired in good faith and was the first to register the sale shall have a better
2.If none of the buyers registered the sale, the buyer who acquired to good faith and was the first
one in possession shall have a better right.
3. If none of the buyers registered the sale or took possession, then the buyer who acquired in good
faith and has the oldest title shall have a better right
CONTRACT OF SALE AND CONTRACT TO SELL
1. Distinction: In a contract of sale, there is already a transfer or ownership. In a contract to sell, there is no transfer of ownership yet but merely a mutual promise to buy and sell
Criterion: The test to determine whether a contract is a contract of sale or a contract to sell is not the manner of payment – whether cash or installment, but whether or not there is conveyance of ownership in the dispositive or grant clause of the deed. There is transfer of ownership when the dispositive clause states that the vendor “hereby sells, transfers and conveys unto the vendee in a manner absolute and irrevocable x x x”
Rights of buyer who has paid two years or more of installments:
1. To pay, without additional interest, any installment due within the grace period which is equivalent to one month for every year of installment payment, provided that such right can only be availed of once every five years.
2. To receive a thirty-day notarial notice of cancellation before his contract can be cancelled for delinquency
Rights of buyer who has paid less than 2 years of installment
1. The grace period to pay without additional interest due is fixed as 60 days
2. For cancellation of contract due to delinquency, the buyer is only entitled to receive a 30-day notarial notice of cancellation without right to receive the cash surrender value pf his payments
Right to refund under P.D. 957 & Maceda Law
Presidential Decree 957: Right to refund applies when the developer fails to complete the development within the required period. Refund is 100% of total payments
Maceda Law: Right to refund applies as a requisite for cancellation of contract due to delinquency when the buyer has paid at least 2 years. Refund is 50% of total payments; additional 5% per year after the 5th year.
MACEDA LAW (R.A. 6552) When the buyer is delinquent in his payment
Objective: To protect installment buyers of real estate against onerous and oppressive conditions.
Applicability – Applies to sale or financing of residential estate on installment payment covered by contract to sell and not sale with mortgage, but excluding industrial lots, commercial building, and sales to tenants under R.A. 3844.
Rights of buyer who has paid two years or more of installments: a) To pay, without additional interest, any installment due within the grace period which is equivalent to one month for every year of installment, provided that such right can only be availed of once every five years. b) To receive a thirty-day notarial notice of cancellation before his contract can be cancelled for delinquency. c) To receive the cash surrender value of his total payments before his contract can be cancelled due to delinquency. The refund is equivalent to fifty percent of total payments and, after the fifth year, an additional five percent per year of installment payment, but not to exceed ninety percent of total payments. d) To transfer or assign his right to the contract e) To register or annotate his contract on the title f) To pay, without additional interest, the full principal balance of the price before the term of the contract.
Rights of buyer who has paid less than two years of installment – The buyer has practically the same rights as a buyer who has paid two years or more of installments, except for the following differences:
a) The grace period to pay without additional interest on any installment due is fixed at sixty days
b) For cancellation of contract due to delinquency, the buyer is only entitled to receive a thirty-day notarial notice of cancellation but without right to receive the cash surrender value of his payments.
FOREIGN OWNERSHIP OF CONDOMINIUM UNIT
In the condominium concept of ownership, absolute ownership by a foreigner is allowed not to exceed forty percent interest in the project. The unit owner is the absolute owner of the space within the interior surface of his unit, but is only a co-owner of the exterior façade of the unit.
RIGHTS OF A CONDOMINIUM UNIT OWNER
Absolute ownership of his unit
Co-ownership of land and common areas
Exclusive easement of the space of his unit
Non-exclusive easement to common areas for ingress or egress
Right to sell, lease, or mortgage his unit
Right to repair, paint, decorate the interior surface of his unit
Right to participate and vote in condominium corporation meetings
OBLIGATIONS OF A CONDOMINIUM UNIT OWNER
Pay the realty tax on his unit
Pay the insurance on his unit
Pay the shared monthly dues for maintenance of common areas/amenities/garbage disposal
Comply with use restrictions
FOR MORE INFORMATION, PLEASE CALL/ TEXT:
(+63)922-466-1409 - Sun Cell
(+63)921-471-2721 - Smart Cell
(+6332)511-1481 - Landline Mobile