Selling a property could be an emotional thing esp if you have lived in that property for years or it could be just a business-decision, ie., to earn off profit from the sale of the property.
Whatever the impact on the seller, one has
to prepare the checklist of basic documents and other requirements before selling the property :
Make sure you have the title to the property. If it is on loan, explain to the buyer that the title is with the bank and the bank will release it once full payment on the loan have been made.
You can request a certified true copy from the Registry of Deeds to assure the buyer that the title you are holding on to is authentic.
You don’t have to show a copy of the notarized Deed of Sale when you bought the property. It will disclose the original price of the property when you bought it but it’s the option of the buyer to check a copy of the Deed of Sale from the Registry of Deeds where the title was issued.
Make sure that you have a copy of the Tax Declaration to the property. There are 2 types of Tax Declaration, if you’re selling a house and lot. One, for the lot and one for the improvement or house. If the Tax Declaration is not yet in the present owner’s name, then one possible reason is due to negligence and it is incumbent upon the owner to transfer it to his/her name. Also, make sure that real property tax payments are updated. You can show copies of the Official Receipts as proof of tax payments. You also need to request a Tax Clearance from the Assessor’s office to prove that real property tax payments are updated.
If there are more than one name in the title and a co-owner is based abroad, he/she should execute a Special Power of Attorney, authorizing his/her representative to sign and represent him/her in all phases of the transaction. All authority vested on the Attorney-in-Fact should be specified in this document (SPA) so it is advisable to hire a lawyer to draft this SPA.
If one of the co-owners is deceased already, present a Certified True Copy of the deceased co-owner’s Death Certificate. This can be secured from the City Hall that has jurisdiction where the co-owner lives. It is imperative on the co-owners to fix this title first, if there’s already a deceased party co-named in the title, before they start selling the property. The best thing to do therefore is to hire a lawyer first to effect and handle this change of name in the title.
2. Supporting Documents
If title to the property is with a bank, then it is on loan. This means, the owner borrowed money from the bank to fully pay the property. Hence, the owner is obliged to pay monthly amortization to the bank until property is fully paid. Once fully paid, the bank processes the title and releases it to the owner. That is why most buyers ask if the title is clean. If not, title is currently mortgaged with the bank.
What other supporting documents can an owner present to the prospective buyer?
a. Vicinity Map – this will show the location of the property in relation to the vicinity/neighborhood
b. Location plan – this pertains to the specific property detailing the boundaries (this can be checked against the Technical Description found in the title)
c. Authority to Sell – if the buyer found out about the property through a Real Estate Broker. This proves that the broker selling to the buyer has a formal agreement with the seller/owner of the property. Never mind if the buyer sees the commission rate due to the broker. That is understandable and acceptable whatever terms were made between the seller/owner and the broker. The buyer has to respect that and should not try to manipulate or circumvent the terms as it would be unethical to do so.
d. Brochures/Pictures of the property – Though not important, if the seller/owner has this in his/her possession, it’s a bonus and can “spice” up the interest of the buyer, esp. if there are amenities within the development or project area where the property is situated.
This is not meant to make this requirement the least important. On the contrary, this could also tilt the buyer’s decision in favor or against the owner.
a. Property/Site Inspection – The seller/owner should address this schedule whether the property for sale is available on weekdays, weekends, daily or on a specific time-frame and whether there is a caretaker available to assist the buyer and broker if the owner will not be available to assist. Sometimes, inaccessibility, unavailability or the inflexibility of the seller/owner can turn off the buyer if the seller/owner fails to adjust to the buyer’s reasonable request.
b. Pricing – Although this is the prerogative of the seller/owner, pricing should also be considered on the buyer’s perspectives. Is it affordable? reasonable? competitive? negotiable? fixed? So it would be best if the seller/owner can study the market prices by doing due diligence ie., find out comparable done deals within the vicinity, looking at prevailing market prices in classified ads, or even hiring an appraiser to assess and give a recommendation. Otherwise, if the pricing is based subjectively, the seller/owner might even risk it and lose a sale, if the price is exorbitant or worse, the seller/owner might sell it at a loss if seller/owner is not aware that the price is undervalued.