Land Title Processing Philippines
The Dynamics of Sales Contract and Land Title Processing
When buying real estate, the sales contract often stipulates who—between the buyer and the seller—will handle the land title processing. This is a crucial aspect to be aware of as it involves various legal and financial implications.
Standard Practices in the Industry
In the Philippines, it is common for the developer or seller to process the land title as part of their service to the buyer. This is often seen as an assurance that the property being sold is free from any legal issues.
Stipulations in the Sales Contract
The sales contract may explicitly outline who is responsible for the land title processing. Such clauses are legally binding, so both parties are expected to adhere to these terms. Failure to do so could lead to a breach of contract.
Costs Involved in Title Processing
There are various fees involved in title processing, such as registration fees, documentary stamp tax, and transfer tax. It is important to be aware of these fees and who is responsible for them as per the contract.
Legal Implications of Taking Over Title Processing
Attempting to take over the land title processing when the contract stipulates otherwise could be seen as a breach of contract. Parties interested in amending these terms would typically need to renegotiate the contract and perhaps create an addendum to the existing agreement.
Mediation and Legal Recourses
If a conflict arises concerning who should handle the title processing, mediation is often the first step. If this fails, parties can turn to legal action based on what is stipulated in their sales contract.
Conclusion
Both buyers and sellers must thoroughly read and understand the terms of the sales contract, especially those relating to the handling of the land title processing. The contractual agreement is legally binding and sets the stage for how the subsequent transactions and responsibilities will unfold. Legal advice should be sought when in doubt about these intricate matters.