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  1. Join Date
    Feb 2005
    Posts
    1,640
    #1
    just would like to ask people here familar with the condominium law or lawyers alike if who should shoulder all expenses (eg. transfer tax, doc stamps, etc.) for the conveyance of mother title( of the lot where the condo was erected) to the condominium assoc.?? must the developer shoulder this or the condominium association itself considering it's the beneficiary?

    Hope someone can enlighten me on this matter, Thanks very much...

    WBR,

  2. Join Date
    Oct 2002
    Posts
    3,872
    #2
    The lot on which the condominium building stands is considered part of the common area of the condominium project. There should be no taxes imposed once the developer transfers the title to the lot to the condominium corp. or association since there is no sale or donation. Ordinarily, the developer secures a BIR ruling confirming that the transfer is not taxable. Once this is secured, the developer now executes a Deed of Conveyance in favor of the condo corp./association.

    Transfer taxes and registration fees, however, are still assessed by the LGU and the Register of Deeds and this should be shouldered by the Developer.

  3. Join Date
    Feb 2005
    Posts
    1,640
    #3
    Thanks for the reply altis, yes there's no donor/capital gains tax to pay here but merely transfer tax, registration and doc stamps as i know....

    but the real problem is the developer wants the condo corp/assoc to shoulder all the expenses relating to the transfer of ownership of the land title from the previous one (business corp) to the condo corp. we found out that this will cost already half a million all in all.... tsk tsk, whatta developer......

    WBR,

  4. Join Date
    Jul 2005
    Posts
    280
    #4
    i would think the cost of transfer should be on the part of the developer, and that it would be contrary to public policy to pass those costs to the condo corporation.

    may i suggest you get an advisory opinion from the legal department of the HLURB? just write a letter describing the situation and ask them to confirm your opinion.

    link to their website.
    http://www.hlurb.gov.ph/

  5. Join Date
    Oct 2002
    Posts
    3,872
    #5
    Quote Originally Posted by Innova_Boy View Post
    Thanks for the reply altis, yes there's no donor/capital gains tax to pay here but merely transfer tax, registration and doc stamps as i know....

    but the real problem is the developer wants the condo corp/assoc to shoulder all the expenses relating to the transfer of ownership of the land title from the previous one (business corp) to the condo corp. we found out that this will cost already half a million all in all.... tsk tsk, whatta developer......

    WBR,
    Actually, this is to the detriment of the Developer. Until the title to the land has been transferred to the condo corp., they'll be forced to keep paying the real property tax on the land. You can complain to the HLURB about your developer though. Its the duty of the developer to transfer the title and that should be at no cost to the condo corp.

  6. Join Date
    Feb 2005
    Posts
    1,640
    #6
    Actually whats so funny bout this is the real estate tax of the land is included in our asso. dues already. meaning the RET of all common areas including the LAND is being payed by the condo assoc since years ago... this was the case coz the land was mortgage by the developer to PNB decades ago. and it was recently that they were able to complete all their liability hence the transfer of CLEAN LAND TITLE from the developer to condo asso. and the asso were asked to pay all expenses related to it or else the transfer will not push thru.... you get the picture....

    WBR,

  7. Join Date
    Oct 2002
    Posts
    3,872
    #7
    'Yan talaga problema pag wala sa ayos ang developer. I suggest that you go over all your previous payments at baka naman na-assess kayo dati ng pang-transfer ng title ng common areas nyo. Dapat nga ipa-refund sa association yung RET dahil wala naman sa pangalan nito kundi sa developer yung titulo.

  8. Join Date
    Feb 2005
    Posts
    1,640
    #8
    Thanks for your reply again altis, regarding RET when title is not yet in your hand, is there some sort of laws / rules from HLURB that i can cite of when discussing this matter with the developer?

    WBR,

  9. Join Date
    Mar 2007
    Posts
    130
    #9
    IB, aren't the other unit owners questioning the developer's acitivities?

  10. Join Date
    Feb 2005
    Posts
    1,640
    #10
    they aren't that much interetsed as i do...

    WBR,

conveyance of title of a condominium taxes?