The Ultimate guide to Navigating the Real Eatate Market.

1. BUYING AND SELLING PROPERTIES.

When buying or selling real estate. Buyers want to ensure they are paying a fair price for the property, while sellers want to set an appropriate asking price. Appraisals help both parties determine the market value of the property and negotiate a reasonable transactions.

2. SECURING LOANS.

Lenders require property appraisals to assess the value of the collateral when approving loans. Wheater its a mortgage for purchasing a home or a loan. Whether it`s a mortgage for a commercial property, the lender wants to ensure the property`s value justifies the loan amount. Appraisals provide the necessary infomation to migitate risk for the lender.

3. INSURANCE PURPOSES.

Property appraisals are conducted for insurance purposes to determine the replacement cost or the insurable value of a property. In the event of damage or loss, the appraisal helps ensure that the property is adequately insured, and the insurance company can provide appropriate coverage.

4. PROPERTY TAX ASSESSMENT.

Goverment authorities use property appraisals to assess the value of properties for taxations purposes. The appraisals helps determine the property`s assessed taxes. Accurate appraisals ensure that property owners pay thier fair share of taxes based on the propety`s value.

5. ESTATE PLANNING AND PROBATE.

Property appraisals play a vital role in estate planning and probate proceedings. When an individual passes away, their real estate assets need to be appraised to determine their value for inheritance purposes, equitable distribution among heirs, or estate tax calculations.

6. LITIGATION AND DISPUTE RESOLUTION.

Appraisals are often necessary in legal proceedings related to real estate, such as property disputes, divorce, settlements, eminent domain cases, or insurance claims. Appraisals provide an unbiased assessment of a propety`s value, serving a basis for resolving legal disputes.

7. INVESTMENT ANALYSIS.

Property investors rely on appraisals to assess the potential return on investment. Appraisals provide insights into the property`s value, rental income potential, and market conditons, enabling investors to make informed decisions about purchasing or selling properties.

REAL ESTATE VALUATION PROFESSIONAL

1. THE SUBDIVISION AND CONDOMINIUM BUYER`S PROTECTIVE DECREE (PD 957).

REALTY TAX

Real estate tax and assessment on a lot or unit shall be paid by the owner or developer without recourse to the buyer for as long as the title has not passed the buyer; Provided, however, that if the buyer has actually taken possession of occupied the lot or unit, he shall be able to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.

DONATION OF ROADS AND OPEN SPACES TO LOCAL GOVERMENT.

The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project may, his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located. Upon acceptance of the donation by the city or municipality concerned, no portion of the area donated shall thereafter be converted to any other purpose or purposes unless after hearing, the proposed conversion is approved by the HLURB.

PENALTIES

Any person who shall violate any of provisions of this Decree and/or any rule or regulation thay may be issued pursuant to this Decree shall, upon conviction, be punished by a fine of nor more than twenty thousand (P20,000.00) pesos and/ or imprisonment of not more than ten (10) years. Provided, that in the case of corporations ,patnerships, cooperatives, or associations, the President, Manger or Administrator or the person who has charge of the administration of the business shall be criminally responsible for any violation of this Decree and/ or the rules and regulations promulgated pursuant thereto.

2. BATAS PAMBANSA 220

authorizing to establish and promulgate different levels of standards an technical requirements for economic and socialized housing projects in urban and rural areas from those provided undeR PD 957 -economic socialize housing refers to housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority from time to time. it shall also refer to the goverment -initiated sites and services development and construction pf econmic and socialized housing projects in depressed areas.

CONFORMALITY WITH THE ZONING ORDINANCE OR LAND USE PLAN OF THE CITY/ MUNICIPALITY.

Housing projects should conform with the zoning ordinance of the city/municipality where they are located, thus, shall be in suitable sites for housing . However, where there is no zoning ordinance or land use plan , the predominant land use principle and site suitability of a project to a site. Futhermore, if the project is undoubtedly supportive of other land uses and activities(e.g..,housing for industrial workers) said project shall be allowed.

3. THE CONDOMINIUM ACT (RA 4726)

Consisting of a seperate interest in a unit in a residential, industrial or commercial building and undivided interest in common, directly or indirectly , in the land on which it is located and in other common areas of the building.

COMMON AREA

Means the entire project excepting all units seperately granted or held or reserved

The following are not part of the unit bearing walls , columns , floors, roofs foundations and other common structural elements of the building ;lobbies stairways ,hallways , and other areas of common use,elevator equipment and shafts central heating, central refrigeration and central air-conditioning equipment reservoirs, tanks , pumps and other central services and facilities, pipes, ducts, flues chutes, conduits, wires and other utility installations , whearever located, except the outlets thereof when located within the unit.

Other parts of the project, as may be declared in the Master Deed of Restrictions as required by PD 957 such as but not limited to; amenities, play are swimming pool , function rooms, etc.

NON-PAYMENT OF A UNIT OWNER OF HIS DUES

• shall constitute a lien on the title of the condominium unit to be registered with the Registry of Deeds concerned.

• the management body shall have the power to bid at the foreclosure sale.

CONDOMINIUM CORPORATION

Membership in the shall not be transferable , wheather stock or non stock, shall not be transferable seperately from the condominium unit of which it is an appurtenance.

4. PD 1216-OPEN SPACES IN RESIDENTIAL SUBDIVISION

this amends Sections 31 of PD 957 requiring subdivision owners to provide road, alleys, sifewalks and reserve open spaces for parks and recreational use.

1. OPEN SPACES.

an area reserved exclusively for parks, playgrounds, recreational areas, schools, roads, places of workships, hospitals, health centers, and other similar facilities and amenities.

2. STANDARD PROVIDED.

adequate roads, alleys and sidewalks, 1 hectares or more, 308 – 70 ratio. 30% OF Gross area for open spaces and 70% of gross area is the saleable are.

3. EXCLUSIVE FOR PARKS, PLAYGROUNDS AND RECREATIONAL USE;

9% of GA for high density socialized housing consisting of 66 to 100 family lots per gross hectares 7% of gross area for medium density or economic housing consisting of 21 to 65 housing unit per gross hectares 3.5% of gross area for low density or open market housing project consisting or less than 20 housing unit per gross hectares.

5. LOCAL GOVERMENT CODE OF 1991 (RA 7160)

All real property, wheather taxable or exempt, shall be appraised at the current and fair market value prevailing in the locality where the property is situated.