Home Ownership Papers: Are titles and deeds the same thing? what is the difference?

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Jun 032013
 

Titles and Deeds, what is the difference?

A title is a document or evidence that you own the property or home that you have been paying off.  It can also mean that while someone else is on the property or land, an owner has the legal rights that are part of the property.  When you have a title as a piece of documentation, it will usually be matched in the records of the locality that you are at as well as by the one who has sold the property.

A deed is a similar type of documentation that will be used in the process of gaining a title.  Often times, those who are investing in real estate will receive a deed as a transaction paper to the title.  This shows that the person who will be getting the property has the right to the title as well as the right to the property.  Usually, there will be several legal factors and regulations that are bound to this type of documentation in order to make sure that the transaction is fair.

home-ownership-papers-titles-and-deeds

Are titles and deeds the same thing?

You cannot have one without the other. Like many other types of investments, the major thing that you will want to show at the end of the process is a piece of paper.  This is the same concept with real estate.  The type of paper that you will want to hold at the end of the loan is either a title or a deed.  This will allow you to show the locality that live in that you own the house and have paid off your loan.

When you are about to receive a title or a deed for a home or piece of property, there are several steps you will have to take.  First, a proof of insurance will have to be shown.  You will also need copies that prove that you bought the house.  The person who is selling you the home or property will also have to have these proofs for purchase.  This includes a purchase agreement, invoices, receipts from the mortgage and proof of satisfaction that the one who is buying the property has met all of the requirements for purchase of the property.

The last step to making your home completely yours is to make sure that you have the title or deed in your hand.  By understanding the process of getting a title, and making sure that you walk into the final closing ready to make the exchange, you can own the piece of property that you have been working towards.

 

 

How To Check If You Are Qualified For A Pag-IBIG Housing Loan?

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May 282013
 
pag-ibig housing loan qualification

You can personally determine if you are eligible for a housing loan based on the following:

Your Pag-IBIG Membership Status

  1. You must be an active Pag-IBIG member for at least 2 years and has contributed a minimum of 24 monthly contributions.
  2. Both the principal borrowers are subject to the above mentioned requirement.
  3. Up to three Pag-IBIG Members may avail of a single housing loan (same collateral) provided they are related within the second civil degree of consanguinity.TIPS: If you have been moving from one company to another, always make sure that you consolidate your Pag-IBIG contributions past and present. Don’t be in a hurry to get a housing loan. You need to establish a good record so that your application will be easier by the time you do it. To re-activate your Pag-IBIG Membership is very simple: just pay for the monthly contribution.

Your Age

  1. You must not be more than 65 years old at the time of loan application.
  2. You must not be more than 70 years old at the date of maturity.
  3. You must be insurable.
    NOTE: Advanced age really is a hindrance to getting a housing loan. And take note that this is true whether you are using Pag-IBIG or any Bank.
    TIPS:If you can afford it, apply for a housing at a young age.

Your Capacity To Pay

  1. Pag-IBIG Housing Loan Interest
    As a general rule, your monthly amortization should not exceed one-third of your gross income. This is the rule used by many financial institutions when qualifying a loan applicant.
  2. Pag-IBIG Financing
    Your monthly amortization (principal + interest) should not be more than 40% of your Net Disposable Income.
    TIPS:

    • Have your finances in order by saving enough for the Down Payment (or Equity).
    • You need to show some proof of income. Prepare the following documents: Pay Slips, Income Statements, Employment Contract (with indicated salary).
    • If your income is insufficient, you may take on a relative (within the second civil degree of consanguinity) or your spouse and tack-in your contributions then apply for a housing loan.

Other Pag-IBIG Loans

  1. You are only allowed one Housing Loan at a time. If you want to take another one, you have to pay your existing loan.
  2. If you have previously availed of the housing loan, make sure that it was not foreclosed, cancelled, bought back, or subjected to dacion en pago.
  3. If you have an outstanding Multi-Purpose Loan, your payments must be updated and it must not be in arrears at the time of application.

 

Steps on How to Apply for a Pag-IBIG Housing Loan

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May 282013
 

how to avail housing loan thru pag-ibig

Here are the Step by Step Procedures When Applying for a Pag-IBIG Housing Loan

  1. Attend a loan counseling session at the Pag-IBIG office and accomplish the following forms:
    • Preliminary Loan Counseling Questionnaire
    • Housing Loan Application (HLA)
    • Membership Status Verification Slip (MSVS)
      If eligible secure Checklist of Requirements (COR), requirements would depend on the loan purpose.
  2. Submit HLA with complete requirements, and pay the processing fee of P1,000 (non-refundable).
  3. Receive Notice of Loan Approval/Letter of Guaranty and sign loan documents.
  4. Proceed to the following:
    • Bureau of Internal Revenue for payment of documentary stamps and capital gains tax
    • Registry of Deeds for transfer of the title and annotation of mortgage
  5. Submit the following documents to Pag-IBIG for the release of loan proceeds:
    • Original Transfer Certificate of Title (TCT) in the name of the applicant with annotated mortgage
    • DOAS with original RD stamp
    • New Tax Declaration in the name of the applicant
    • Updated Real Estate Tax Receipt (for house and lot, if applicable)
    • Occupancy Permit (secured from LGU Engineering Office, if applicable)
    • Assignment of Loan Proceeds
  6. Pay the first monthly amortization on the month immediately following the loan take-out/final loan release.

Internet vs Newspaper Advertising – Real Estate Listings

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May 232013
 

Internet Vs Newspaper Advertising A Personal Choice

Internet vs Newspaper Advertising A Personal ChoiceWith internet gaining popularity, internet real estate listings have become one of the easiest ways of checking out the real estate listings. Though the traditional method of looking for real estate listings (through newspapers) is still one of the most used methods, it is a very time consuming one. You have to read through various listings and sort out the ones that seem more suitable to you (and possibly write down the phone numbers and contact details on a piece of paper) and then call up the owners/brokers to fix an appointment for viewing the property (which may turn out to be totally disgusting in the end). Moreover, the newspaper listings generally happen on a weekly basis. So if a deal has materialised in the meanwhile, there is no way you can check it without actually calling up the owner/broker. Internet vs newspaper advertising. On the contrary, the internet real estate listings (on a good real estate listings website) are updated everyday or maybe twice a week. Moreover, new real estate listings go up on the internet everyday (i.e. they don’t wait for the newspaper to get published).

Whether you are looking to buy a home for living in or whether are looking to just invest in real estate, you will need to get hold of real estate listings as the first thing. Internet and newspapers are the most common ways of getting real estate listings. So, if you have been using only the newspaper as your source of real estate listing information, you might end up getting stale information. You might lose out on a deal that was out on internet, say 2 days before. As such, making the first offer can make a big difference when it comes to real estate. Further, you don’t need to go through all the real estate listings in order to determine the listings that look suitable to you. You can specify various search criteria/ filters in order to get only those real estate listings that you really want to look into. This is a big advantage when compared with newspapers where listings are generally classified just on the basis of location of the property.

Thus you can save a lot of time here by browsing only through the real estate listings that are of interest to you. Moreover, there is no need to note phone numbers etc; you can just take printouts of the listings you want. Some websites also provide tools/ facilities to track those real estate listings. You could even contact the sellers by sending a message through the website (some websites provide such email type of facility). Another important benefit from real estate listings on internet is that some of them also contain images of the property. So you can have a look at the images and see if you like the property at all.

So, real estate listings on the internet do seem to offer a lot of convenience. However, internet or newspaper is really a matter of personal choice too.

Internet Vs Newspaper Advertising A Personal Choice

Guiding Rules in Buying Properties In The Philippines

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Feb 212013
 

Guide In Buying Properties In The Philippines

There are some rules and guide for filipinos and foreigners in buying properties in the Philippines.

guide in buying properties in the philippines

Tip #1: Buy Only Titled Properties

There are still vast amounts of land in the Philippines that have no Land Title under the Torrens System. Usually, the only proof of ownership that the seller has is a Tax Declaration. Buying this type property is a perfect recipe for a real estate disaster. As a buyer, you don’t want to get involved with this kind of real estate deal.

Ask the seller to hand you a photocopy of the Title. Take note of the Title Number and the indicated name of the owner. To verify the Title at the Registry of Deeds, you will need at least the Title Number and the Name of the owner of the property.

Tip #2: The Title Must Be Authentic and Accurate

Always request a Certified True Copy of the Title from the Registry of Deeds that has jurisdiction of the property. You simply can’t trust the seller’s broker or agent to handle this part. You have to personally do it, or have someone you can trust do it on your behalf.

Once you got hold of the title’s Certified True Copy, compare this with the photocopied Title handed to you by the seller or his broker. There should not be any inconsistencies or discrepancies.

Tip #3: The Title Must Be Clean, Free From Liens and Encumbrances

A clean title simply means one that has no encumbrances or liens. Liens, Encumbrances, and other annotations are printed at the back portion of the title.

Take a look again at the Certified True Copy of the Title. Is the back page clean? It should not have any unnecessary words or sentences other than those related to the property’s technical descriptions.

Special Note: Some Titles have very long descriptions that span more than just the front page. If you are not sure about the things written at the back portion of the Title, please consult it with your lawyer or someone who is an expert in handling such cases.

Tip #4: Double Check If The Property Being Sold Is What Has Been Stated In The Title

This sounds crazy, but some unscrupulous sellers will show you a property and show you a completely different land title, which doesn’t correspond to it.

The Title will always indicate a technical description of the property, its exact location and its boundaries. It would help if you can tap the services of a Geodetic Engineer or a Licensed Surveyor. You can request that such professional verify the accuracy of the land being described and, if possible, make conduct a re-survey of the land.

RECOMMENDED READINGS

Guide In Buying Properties In The Philippines

Real Estate Rentals, Most Attractive Ways of Making Good Money

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Feb 212013
 

Business Plan In Rentals And Real Estate Investing

Residential Rental Real Estate Investing is one of the most attractive ways to making good money. It’s an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art).

business plan rental real estate investing

Here is a list of strategies that can make real estate investing profitable for you:

Looking for old listings:

    • The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.

The hidden treasure:

    • A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.

Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA):

    • Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.

Keep tab on the newspaper announcements:

    • Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.

Team up with attorneys:

    • There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.

Thus, Investing in Real Estate Rentals not just a good idea but one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.

CLICK HERE for MORE REAL ESTATE TIPS 2012

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Business Plan In Rentals And Real Estate Investing