Deed of Sale for Real Estate — You Can Create Your Own and Cut Legal Costs
If you’re selling your own lot or house and lot, you can create your own
Deed of Sale so you can cut your legal costs. I did it when I sold my own vacant lot in Pasig early this year.
1. First, find a copy or form of a Deed of Sale for real estate online. There are a lot offered for free by certain Pinoy legal websites. Some are short; the others are longer. Choose the one which you think contain all the things you think should be included.
2. After copying the Deed of Sale form, change the details to suit your circumstances, such as name and address of seller and name and address of buyer.
Revise in Microsoft Word or Open Office so it would be ready for printing.
3. Remove phrases that make the title transfer process more complex.
In my case, I failed to remove the following phrase, and I had to meet again with the buyer to sign again:
“as shown by my signatures on one side of every page of this document.”
4. Ask the buyer if he or she is married and if he/she wants the name of his/her
spouse included in the Deed of Sale. Typically, the phrase “married to” is included in deeds of sale, but some buyers do not want it, just like in my case.
Nagtaka tuloy ako dahil, di ba, may right pa rin ang legal spouse sa property kahit hindi nakasulat sa deed of sale? Sabi ng buyer, baka raw kasi mag-aaway sila in the future.
5. After printing the Deed of Sale for at least 4 copies, three for the buyer and one for you, have it signed, registered and sealed by a notary public.
If you ask notary public personnel to make the Deed of Sale, they’ll charge 2,000 pesos or more. Some even base their charge on the sale price for the property (which is legal if the lawyer also handled the sale negotiations ).
But if you have the document ready, you can shop it around by asking immediately Magkano before handing them your document. You can find someone to notarize it for only 200 to 500 pesos. Pag pumunta ka sa lugar na tabi-tabi ang mga puesto ng mga notary, mas makamura ka kasi may competition.
6. Lastly, remember that the sale price you’re putting in the Deed of Sale is the basis for the Capital Gains Tax, Transfer Tax and Documentary Tax. Will post about these taxes soon.