TAX DEC OVERSIGHT

Once upon a time, a property seller was nearing the finish line of a smooth and successful sale. Everything was going according to plan—until they were asked to provide a certified copy of the property's tax declaration.

When the seller’s agents went to secure the document, the City Assessor’s Office responded with an unexpected requirement: they needed to send an appraiser to inspect the property’s improvements.

The appraiser arrived, tape measure in hand, and got to work. It didn’t take long for him to discover a serious discrepancy—the declared floor area was understated by around 800 square meters. This oversight triggered a hefty consequence: the City Assessor imposed over one million pesos in real property taxes and penalties for the undeclared extension. The amount covered an arbitrary number of years in which taxes were presumed unpaid.

Here’s the thing: when homeowners expand their properties—whether it's building a new room or simply paving over the garden—they’re required to update the tax declaration to reflect the new improvement. The city then reassesses and imposes the appropriate real property tax based on the updated area.

The seller was stunned.

“How can that be?” they protested.

“I haven’t made any changes since I bought the property!”

That part was true. But it turned out that the previous owner had made the extension. Unfortunately, they never updated the tax declaration, and now the seller was left with the burden—paying for someone else’s oversight.

End of story.

Key Takeaways:

Always update the tax declaration when making any improvement to your property—whether it's a new structure, a pool, or even just paving over bare land. Each type of work may carry different tax consequences.

Before buying a property, hire an engineer or licensed professional to measure the improvements and verify if they match what's reflected in the tax declaration. It could save you from a costly surprise later.