Buying a Home in Philippines

Buying a home in the Philippines can be a rewarding investment, but it also comes with its own set of challenges. This guide aims to provide expats with a comprehensive understanding of the process, from finding houses for sale to understanding the legalities of property ownership in the country. Whether you're planning to retire, start a business, or simply want to own a piece of paradise, this guide will help you navigate the Philippine real estate market with ease.

How Do I Find Houses for Sale in the Philippines?

There are several ways to find houses for sale in the Philippines. Online property portals like Lamudi, Property24, and Dot Property are popular platforms where you can browse listings based on your preferred location, budget, and property type. Real estate agents and brokers are also valuable resources, as they have access to multiple listings and can provide insights on the local market. Additionally, you can check out property expos, classified ads, and even social media groups for listings.

Are There Restrictions on Foreigners Owning Property in the Philippines?

Yes, there are restrictions on foreign ownership of land in the Philippines. The Philippine Constitution states that only Filipino citizens or corporations with at least 60% Filipino ownership can own land. However, foreigners can legally own condominium units, as long as 60% of the condominium corporation is Filipino-owned. Another way for foreigners to acquire land is through a long-term lease, which can last up to 50 years and be renewed for another 25 years.

Does the Philippines Have an MLS Type System?

The Philippines does not have a Multiple Listing Service (MLS) system like in the United States. However, there are several online property portals and real estate agencies that provide comprehensive listings. It's important to note that due to the lack of a centralized system, information may vary across different platforms.

Do Brokers Have Licenses and How Do I Know if They Are Licensed?

Yes, real estate brokers in the Philippines are required to have a license issued by the Professional Regulation Commission (PRC). You can verify a broker's license by checking the PRC's online verification system or asking the broker for their PRC ID. It's crucial to work with a licensed broker to ensure that transactions are legal and transparent.

What Documents Are Required When Buying a Home?

Key documents required when buying a home in the Philippines include the Seller’s valid IDs, Certificate of Title, Tax Declaration, Real Estate Tax Receipts, and Deed of Sale. If you're buying a condominium, you'll also need the Condominium Certificate of Title and the Master Deed with floor plan. It's important to ensure that all documents are authentic and up-to-date to avoid legal complications.

Do I Need a Lawyer When Buying a Home in the Philippines?

While it's not mandatory, hiring a lawyer when buying a home in the Philippines is highly recommended. A lawyer can help review contracts, ensure the authenticity of property documents, and facilitate the transfer of title. Legal fees vary, but you can expect to pay around 10% to 20% of the property's selling price.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both cash purchases and mortgages are common in the Philippines. Cash purchases can often lead to discounts and a faster transaction process. However, many buyers opt for a mortgage due to the high cost of properties. Banks, government institutions, and private lenders offer a variety of mortgage options with varying interest rates and payment terms.

Are There Inspections That Take Place, and If So What Is That Process Like?

Yes, property inspections are a crucial part of the home buying process in the Philippines. These inspections help identify potential issues with the property, such as structural defects or legal encumbrances. It's advisable to hire a professional inspector or engineer to conduct the inspection. The process typically involves a visual examination of the property's structure, systems, and components, followed by a detailed report.

What Are Some of the Pitfalls to Avoid When Buying Property in the Philippines?

Common pitfalls to avoid when buying property in the Philippines include not verifying the authenticity of property documents, not conducting a thorough property inspection, dealing with unlicensed brokers, and not fully understanding the terms of your contract. It's also important to consider the location of the property, as issues like flooding and traffic congestion can affect your quality of life and the property's value.

Expats Talk about Real Estate in Philippines

"I was lucky because my wife is from the Philippines so as far as learning the customs and so on that part was easy. Even so I made several trips of three to four weeks each over a three year period before I made the decision to move and retire here. Your US Dollars go very far here. My advice is to do your home work on any place you may want to move. There is much to learn. Visas for long term stay is most important. I am married to a local citizen so I only need to leave the country every 12 months for an overnight stay if I wanted and this visa is free. There permanent visas with a fee. There is top notch health care available here at a fraction on USA cost. As I stated before do your home work and you will have much happier results," said one expat living in Isabel.

"I lived in Cebu, Quoit Pardo for a few years off and on. Great people but just too much traffic, I have moved up north to Danao. Everything you need here, or a cheap air conditioned bus ride to Cebu City if you need any of the Government Departments. A good immigration office and plenty of banking facilities available, if you get a private car. Make sure you have somewhere to park, because that can be a problem. For accommodation DO NOT BUY, just rent. There are plenty of condos, houses or rooms at a good price," wrote a member in Cebu.

"Live in the Philippines a minimum of ONE YEAR and be certain this is for you before making any decisions. Personally, I have been here 3 years plus and have not yet made that leap of faith of making a purchase. My sense is that contrary to the propaganda of a booming world economy, reality and basic economic math, relative to national debt levels says this is the crest of the wave, beware the forthcoming financial tsunami," commented one expat living in Palawan, Philippines.

"Research on the ground. Listen for dogs next door (oh there will be!). Roosters (not if but how many and how far away!?). Obviously crime (Iloilo is very cool in that department). Use a lawyer, check title, make sure you are buying in the name of a Filipino (foreigner cannot own land here which is why they can own condos). DO NOT expect the process to be fast or "like home". You aint in Kansas Toto," mentioned one expat living in Philippines.

"Yes, there are restrictions. As a foreigner you can not own property in your name directly. However, you can own a condominium with the added advantage of obtaining Special Resident Retiree's Visa (SRRV) as a result of a qualified investment. Do research this option. Note: YOU NEED NOT MARRY TO STAY IN THIS COUNTRY!!!," commented one expat living in Palawan, Philippines.

"There are many Real Estate web sites. Most are obscenely outdated and worthless. Try DotProperty. Very professional and timely !!! ," commented one expat living in Palawan, Philippines.

"There are 4 main ways to find places - Facebook, online realty ads, word of mouth and driving around. There is no MLS per se here. Like other developing countries the real estate is often repped by many people trying for a sale. Going around the agent (all are called Brokers here) is not uncommon (but IMO dishonorable as hell). Unlike N America the introducing "Broker" (who is most times not a career specialist anyway) is not really involved in much more than the back and forth on pricing. After that its lawyer time," mentioned one expat living in Philippines.