MODES OF ACQUIRING LAND TITLES:
1. Title Title by public public grant – conveyance conveyance of public public land land by government government to to a private private individual 2. Title Title by acquisitive acquisitive prescript prescription ion – open, open, continuous, continuous, exclusive, exclusive, notorious notorious possession of a property 3. Title Title by accretio accretion n – alluvio alluvion n 4. Title Title by reclamation reclamation – filling of submerged submerged land by deliberate deliberate act and and reclaiming reclaiming title thereto government !. Title Title by voluntary voluntary transfer transfer – private private grant grant voluntary voluntary execution execution of deed of of conveyance ". Title Title by involuntary involuntary alienatio alienation n – no consent consent from from o#ner o#ner of land forcible acquisition by state $. Title Title by descent descent or devise devise – hereditary hereditary succession succession to the the estate of deceased deceased o#ner %. Title Title by emancipation emancipation patent or or grant – for purpose purpose of amelioratin ameliorating g sad plight plight of tenant&farmers not transferable except by hereditary succession Chapter 2: TORRENS SYSTEM – ORIGIN, NA N ATURE & GENERAL CHARACTERISTICS ADVANTAGES: 1. 'boli 'bolish shes es endle endless ss fees fees 2. (liminat (liminates es repeat repeated ed examina examination tion of of titles titles 3. )edu )educes ces rec record ords s enormo enormous usly ly 4. *nsta *nstantl ntly y revea reveals ls o#ners o#nership hip !. +rotects against encumbrances encumbrances not not noted on on the To Torrens certificate certificate ". a-es a-es frau fraud d almost almost impos impossib sible le $. .*t assur sures %. eeps up up the system system #ithout #ithout adding adding to burden burden of taxation taxation beneficiar beneficiaries ies of the the system pay the fees /. (limin (liminat ates es tax titles titles 10.ives 10. ives eternal title as state ensures perpetuity perpetuity 11. urnishes state title insurance rather than private title insurance 12.a-es possible the transfer of titles or of loans #ithin the compass of hours instead of a matter of days UROSE OF TORRENS LA!: quiet title to land – once registered, o#ner might rest secure • ERSONS "OUND !HEN TITLE NOT REGISTERED
1. rantor 2. eir eirs s devi devise sees es 3. +erso +ersons ns #ith #ith actu actual al notic notice e
ROCEDURE IN LAND REGISTRATION CASE:
1. 2. 3. 4.
5urvey of land by 6ureau of lands or duly licensed private surveyor iling of application for registration by applicant 5etting of date of initial hearing of application by )T7 7ler- of court to transmit to 8and )egistration 'uthority the application, date of initial hearing other pertinent docs !. +ublication of notice of filing of application, date place of hearing – in 9 and in ne#spaper of general circulation ". 5ervice of notice – contiguous o#ners, occupants those #ho have interest in property $. iling of ans#er or opposition to application %. earing of case by )T7 /. +romulgation of :udgment by court 10.*ssuance of decree by )T7 – decision *nstruct land registration authority to issue decree of confirmation registration 11. (ntry of decree of registration in 8and Titles 'dministration 12.5end copy of decree to )egister of ;eeds 13.Transcription of decree of registration in registration boo- issuance of the o#ner
How about those not in the above list !egistration with the H"#!$ or H#%&& as a real estate dealer or developer shall be sufficient for a taxpayer to be & considered as habitually engaged in the sale of real estate. If the taxpayer is not registered with the H"#!$ or H#%&& as a real estate dealer or developer, he/it may nevertheless be & deemed to be engaged in the real estate business through the establishment of substantial relevant evidence 'such as consummation during the preceding year of at least six '() taxable real estate sale transactions, regardless of amount* registration as habitually engaged in real estate business with the "ocal +overnment #nit or the $ureau of Internal !evenue '$I!), etc.). A person who is not engaged in the real estate business but who is selling real property which is classified as its ordinary asset is also subect to VAT. This is pursuant to !! -o. 01 which provides2 & 3However, even if the real property is not primarily held for 4ale to customers or held fo r lease in the ordinary course of trade or business but the same is used in the trade or business of the seller, the sale thereof shall be subect to VAT being a transaction incidental to the taxpayer5s main business.6 Thus, if a taxpayer is engaged in the restaurant business and sells his restaurant building which he used in his restaurant business, the said sale shall be subect to VAT, notwithstanding that the taxpayer is not engaged in the real estate business. $an7s are not considered as VAT taxpayers. Thus, their sale of foreclosed properties are not subect to VAT. They are subect instead to &reditable 8ithholding tax ' &8T). Their foreclosed assets, when sold, are considered as ordinary assets but ban7s are not considered as engaged in the real estate business. VAT rate
The sale of properties which may be considered as ordinary assets would be subect to the 9:;< VAT effective =ebruary 9, :00(. Tax base of output VAT The tax base of the 9:; output VAT is the selling price '4>) or the fair mar7et value '=?V) of the property whichever is higher. If VAT is not billed separately in the document of sale, the selling price stated in the deed is deemed inclusive of VAT. Thus, to get the selling price without VAT, divide the selling price in the deed by 9.9:. To get the VAT, multiply the selling price without VAT by .9:. 8hat if the gross selling price in the document of sale is e@ual to the onal value or mar7et value of the property 8ill the selling price without VAT be effectively lower than the onal or mar7et value of the property -o, the onal/mar7et value shall be considered as net of the output VAT. BBBthe VAT should be separately indicated in the document of sale and official receipt as there are penalties for non compliance.
VAT payable The amount of VAT payable is the difference between the output VAT and input VAT. Ceep the VATregistered official receipts 'for services purchased) and invoices 'for goods purchased) supporting your business expenses so you can claim input VAT which can reduce your output VAT payable.
