Do I have to pay Real Property Tax even if I don’t have a title?

Posted in QA on April 12th, 2010 by admin | 26 comments
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Question:

We bought a house and lot from a subdivision developer thru Pag-ibig Financing. It’s been more than a year now since we moved in and have been paying the monthly amortization without delay.

The developer has recently adviced us to pay our Real Property Tax which you can calculate with the help from the best Metric Accountants. My question is,  is it legal and a must for us to pay the Real Property Tax even if the property title is not yet in our possession? Isn’t it still the responsibility of the developer at the moment?

Answer:

Yes , you have to pay the real property tax from the time you moved in to-date or almost one year. You could request for copy of TCT with annotation at the back…mortgaged with Pag-ibig from the developer or from Register of Deeds (RD). Once the property is fully paid, you could go back to RD for copy of TCT without annotation anymore.

The real property tax or realty tax is paid at the local government municipal hall not to the developer. The amount will be based on the declared market value of the property X assessment level ( which is 20% for residential) = Assessed Value X rate (2%) = Tax

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  • Pia KUHRT says:

    Hi,

    I’m living abroad ( Europe ) but a Filipino citizen , my foreigner husband and I are investors, we acquired townhouses in Antipolo for rent. Now, we fully paid a condo in Ortigas since September 2009 but haven’t get the title yet. The Real Estate Agency let us paid the whole year property tax ( 2009 ) and now they won’t release our title without us paying the 2010 property tax. Isn’t it right that we should pay our property tax at the Municipal Hall and not to the Developer or REal Estate Agency?

    Please help. Things like still won’t stop us investing in the Philippines but we want to do business correctly and deal only with honest developer or agency.

    Thanks in advance,

    Mrs. Pia KUHRT

  • admin says:

    we’ve sent you an email, hope you received it :)

  • Ralph Escalante says:

    We have just purchased a foreclosed property through public bidding. The property has been abandoned by the previous owner more than 15 years ago and he did not pay for the annual realty tax eversince. Do we have to pay this exorbitant amount in order for us to obtain Tax Clearance?

    Thanks.

  • admin says:

    Usually yes, sales of foreclosed property is on an “as is where is basis”, and whatever is left behind to be paid is the responsibility of the new owner. Discuss with the bank (if purchased thru bank) or auctioneer to be sure.

  • ronald sioson says:

    hi.can u send me the pictures of the property in #22 xavierville,qc.also i want to know the payment scheme of this townhouse.thank you.

  • admin says:

    Kindly fill up our contact form so we can address you personally. Thank you!

  • Joel Torres says:

    hi,
    we have purchased a piece of land in antipolo to be paid for 4 years. something bad happened in my job and now i am getting a hard time paying monthly payments.
    my question is what will happen if I stop paying? will we be able to get portion of the money we paid? what other options I have if I decide to give up the land? thanks a lot.

  • Cherrie Tuazon says:

    This is in relation to the question you posted on April 12, 2010 “Do I have to pay for the real property tax even if I dont have the title?”

    i bought a property in 2008 and paid it in a “cash in 30 days” term. the developer told us that the title will be released in 120 working days after the execution of the Deed of Absolute Sale. It’s been more than 2 years already and they have not released my title due to some BIR issue on their partner’s/ joint venture’s end. In this case, do i need to pay for the real property tax or let them shoulder it?

  • admin says:

    Yes, you have pay the RPT if you are occupying the property already even if the title is not with you yet. Transfer of title really takes time.

  • Lori Salvador says:

    Greetings,
    My husband who is a foreigner and I, Philippine Citizen aquired condo in Philippines, Both the properties are in our name. Is is true or false that if the property is under the foreigner’s name it is not required to pay the RPT

  • jo-ann vila says:

    Hi,
    I’d like to know if i am required to pay a tax on a land that is not generating an income? And is the tax computation conducted annually or monthly? Your answer would be highly appreciated. More power to you! I like your website and your knowledge and I am very grateful for you sharing it. Thank you.

  • admin says:

    Hi Ms. Jo-Ann,

    Yes, you are required to pay annually the real property tax imposed by the local government in the municipality where the property is located…even if the property is not generating income. If it is generating income, then you have to pay another tax, this time to the BIR. Why? because if you don’t pay RPT and you would like to sell it later on, the buyer will require the tax declaration and you have nothing to show and the sale will not push through.

  • admin says:

    Hi Ms. Lori, even if the property is under the name of the foreigner, real property tax is still imposed and should be paid to the local government where the property is located.

  • Caren Cruz Meman says:

    Hello my husband and I are both Filipinos but has been assigned abroad. We took a mortgage out from PAG-IBIG through a developer more than 2 years ago and have paid 2 years amortization to them as part of the agreement. Since we have left we have had arrears for 7 months and Pag-ibig informed us that the developer can buy back our house due to non payment. We have been behind our payments due to financial problems. We would like to know if the developer can opt to buy back our house even if we have already paid them for 2 years. thanks! we hope we can hear from you soonest…

  • gervacio e. lacre jr. says:

    I had bought a lot and the house is only made of light materials, the owner paid tax only on lot, we removed the old house and construct a residential house and soon to apartment type a three door. we paid the tax only in lot, could i know more on how i can pay the real property tax on my house and lot?

  • admin says:

    You request the person handling the collection of RPT at the local municipal hall if they could visit/view your property, assess and give the new market value of the the improvements you made.. The RPT will now be based on the new assessment.

  • admin says:

    Yes, the developer could buy back the property if that was emhasized in the arrangement with PAG-IBIG prior to approval of loan. Loans with PAG-IBIG are categories into loan with buy back guaranty and loan without back buy guaranty. Note: The borrower who fails to pay the full monthly amortization when due shal pay a penalty of 1/20 or 1% of the amount due for every day of delay.

  • jane says:

    hi gud day!, year 2006 nakabili po ako ng condo sa PI at 10% dp and balance 2 years to pay.after po ng last payment ko 2008 ay nagbigay rin po ako ng kabayaran sa developer para sa trasfer/registration/tax fee ng title na higit sa 57,000 pesos dahel kugn diko makumpleto ay di nila marelease ang ttle dahel sila rin po ang nagasikaso nito for registered etc..nagbabayad din po ako ng property tax every quarter yearly.eto lang pong last nov 2009 nakarecieved ako ng”collection letter”from BIR na may utang ako na 53,000 income tax since 2006 at nagkaron na ng interest na umaabot ng13,000 at nagsabe ron sa letter na failed ang pagbabayad ko.di ko po alam kung etong utang ko o kailangn ang developer ang managot nito since wala abiso sa amen at kami ay nagbabayad ng property tax every year at ang condo ay di nagenerate ng income so di ko po maintindihan kung baket may cllection letter ako natanggap sa pagkahaba-haba ng panaho ngayun lang 2009 dumating?need help badly.salamat po.

  • admin says:

    Hi Jane:

    We would suggest that you refer your problem with a lawyer/realtor since it is too complicated already.

    God Bless,

    Virgilio

  • eugenia odvina says:

    Hi I currently live in the states and have property there, can property taxes be paid online

  • admin says:

    depends on where your property is – i know paranaque offers online payments but other cities don’t. check the website of the city where your property is located to get information. good luck!

  • Cherry says:

    Hello. I purchased a lot property in laguna and I have not paid my property taxes for 2 years since I am in the United States. What happens to my property? Does the government do anything about it? I am new to real estate investing in the philippines and your information would be greatly appreciated. Thank you.

  • admin says:

    Hi Cherry:

    Just request one of your relatives to pay the real estate property tax (RPT) for you. The local government will charge you interest charges for your arrears.

    God Bless,

    Virgilio

  • Paz cuaresma says:

    My cousin bought a condo yrs ago and has fully paid it. We found out he has not paid real property tax for it. The real property tax he has been paying are for the common areas in condo. Requirement daw ito & tax clearance 2014 bago transfer. My questions:
    a) what papers do I need (he gave me authorization) para makapa-assess ko sa Q.C assessor’s office.
    b) the property is still in the condo’s name …so I will pay in Condo’s name
    c) I have a xerox copy of Tax dec …pwede na ba ito ?

  • admin says:

    My cousin bought a condo yrs ago and has fully paid it. We found out he has not paid real property tax for it. The real property tax he has been paying are for the common areas in condo. Requirement daw ito & tax clearance 2014 bago transfer. My questions:
    a) what papers do I need (he gave me authorization) para makapa-assess ko sa Q.C assessor’s office.
    b) the property is still in the condo’s name …so I will pay in Condo’s name
    c) I have a xerox copy of Tax dec …pwede na ba ito ?

    a.) Copy of latest Real Property Tax Declaration, Photocopy of latest Real Property Tax payment/Official Receipt, bring a photocopy of your title as well. Expect penalty if your rpt hasn’t been paid, ever, by the condo.

    b.) yes you will have to pay in their name

    c.) yes just bring it, usually people in the assessor’s office are nice so if you have any questions they would be willing to entertain you

  • admin says:

    a.) Copy of latest Real Property Tax Declaration, Photocopy of latest Real Property Tax payment/Official Receipt, bring a photocopy of your title as well. Expect penalty if your rpt hasn’t been paid, ever, by the condo.

    b.) yes you will have to pay in their name

    c.) yes just bring it, usually people in the assessor’s office are nice so if you have any questions they would be willing to entertain you

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