Once upon a time, a couple sold their condo through a bank-financed deal. The sellers were a Filipina and her foreign husband. When the transaction finally closed, the mortgagee bank released the proceeds: a Manager’s Check payable to “Spouses A & B.” That’s when trouble began. The wife went to deposit the check into their joint “and/or” savings account—only to be told: “Ma’am, we need both your signatures at the back before we can accept this.” Her husband had just flown abr

When the real estate market turns sluggish, a familiar idea resurfaces — the rent-to-own (RTO) scheme. On paper, it sounds like a win-win: “Why rent when you can own?” But behind the marketing pitch lies one of the most misunderstood setups in property transactions. Most people think of RTOs as a simple bridge between renting and buying. In truth, they’re two contracts stitched together — a lease and an option (or obligation) to buy. The first gives you the right to occupy th

A company was selling an office unit for P33.6 million. The documents didn’t say whether the amount was VAT-inclusive or exclusive. The property’s zonal value is P31 million. So here’s the question: 💡 What is the correct output VAT payable to the BIR? Options: A P3.60 million B P3.72 million C P4.03 million ****** Before diving into the VAT computation, it helps to know where the answer comes from. In February 2007, the Bureau of Internal Revenue issued Revenue Regulation No

If there’s one thing I’ve noticed, it’s that many new condo owners aren’t sure what to look for when developers finally hand over the keys. Here’s a quick checklist to help you catch issues before signing off. 🧱 Walls, Floors, Ceilings Look for cracks, uneven paint, or stains. Tap tiles with a coin—if it sounds hollow, it might pop later. Step barefoot to feel for bumps or dips. Check ceilings for leaks or discoloration. 🚿 Water & Plumbing Turn on everything—faucets, shower

Let’s explore an insightful way to evaluate returns from real estate investments — the Internal Rate of Return (IRR). Like the Compounded Annual Growth Rate (CAGR), IRR expresses profitability as a percentage. But while CAGR assumes a single buy-and-sell event (start vs. end values), IRR is far more flexible. It factors in all cash inflows and outflows over time — including staggered payments, rent, resale proceeds, or even interim costs — then determines the exact discount r

Many lease contracts in the Philippines require tenants to pay advance rent—often applied to the first months of the lease—alongside a security deposit. At first glance, it seems straightforward: pay a few months ahead, start the lease, done. But here’s where many contracts (and brokers) get it wrong. Advance rent is meant to protect the lessor throughout the lease term—not just at the start. It should be applied to the last two months of the lease, not the first two. The sec

When Lawyers Are Involved The moment a lawyer steps into a transaction, things often become more complex. And there’s a reason for that:...

Thought of the day: For nearly a decade now, rental rates in Metro Manila’s central business districts have been locked in the same...

Did you know that a land title can actually exist in more than one copy—with each co-owner holding their own? Under Presidential Decree...

Here’s a little-known quirk about subdivisions in the Philippines: Once a developer finishes building a village, they sometimes donate...