Real Estate Docs 101

In line with the celebration of all the Superwomen all around the world this International Women’s Month, Lumina Homes will be giving away Php 1,000 worth of AllEasy Load to one lucky winner!

You can join this exciting promo by following these four easy steps:

Step 1. Watch this Lumina Sessions video and spot SOMETHING PURPLE that will pop up randomly on your screen.

Step 2. Pause that video scene and take a screenshot.

Step 3. Upload your proof of entry on our website at www.lumina.com.ph/public-event-upload. On the Event field, make sure to select the Lumina Sessions: Spot Something Purple option.

Buying your dream home

When you’re buying your dream, you will encounter a lot of paper works that you would need to process and keep in mind. We will discuss these important documents in our Lumina Sessions for today so that we can help you out in making sure that you have them just in case you would need them in the future.

1. Letter of Intent or LOI

This type of document is being submitted in order to express your intent to purchase a property. Afterward, the seller may reject or accept your intention to purchase the real estate.

In writing this document, make sure to compose it in a simple and straightforward manner. You need to put in important information, such as how much you would need to pay for the property and how you are going to pay for it.

2. Offer to Purchase

The Offer to Purchase is a more official and more formal type of document. Once the seller approves your Letter of Intent to purchase the property, you would need to send this type of document to him or her.

Once you sign this, it will become legally binding, and you cannot change your offer anymore.

3. Buyer Information Sheet or BIS

Another document that you need to prepare and sign once the seller accepts your offer is the Buyers Information Sheet or BIS.

When buying a Lumina Homes house and lot, you would need to disclose your personal information, such as your credit cards and bank accounts. This is a way for us to verify if you are qualified to push through with our real estate sales process.

4. Reservation Agreement

Once you have chosen your preferred property and made the reservations for it, the property that you chose will be put under your name, and you would need to pay a reservation fee for that particular home model unit.

You must also take note that thirty (30) days after you make the reservation, you would also need to start paying for the monthly down payment. Aside from this, to set your expectation, the reservation fee is mostly non-refundable

The Reservation Agreement that will be given to you upon making a house and lot reservation from Lumina will contain information such as your chosen block and lot and the location of the reserved unit.

5. Contract to Sell

During the 30 days after reservation, you will be given the Contract to Sell document for you to sign.

The Contract to Sell is simply an agreement between you and Lumina Homes about the property that you recently reserved. It is also quite important to review the contract, especially on the part of its Terms and Condition, particularly when you are purchasing a property under a Pre-selling stage. 

Apart from this, make sure to also carefully read the Provision, Clauses, Taxes, Other Charges section of the contract as well as the Penalties part just in case of payment defaults. The Contract to Sell also needs to be duly notarized.

After the payment of the total amount of down payment, you need to apply for a loan to pay the remaining amount to purchase the property.

6. Loan Guarantee

The Loan Guarantee is a written guarantee that is being provided by your bank to the developer in order to inform them that you have been approved to get a bank housing loan. The bank will then take care of your remaining balance in purchasing your property. You, in return, will have to directly pay your assigned monthly amortization to your chosen bank. 

7. Deed of Absolute Sale

This is one of the most important documents that you have to settle when purchasing your dream home.

This is a particularly significant document as this will be the basis for the issuance of your land title, and it should be given once you have fully paid your property. Just make sure that you file and pay your taxes within 30 days based on the date that you put on the Deed of the Absolute Sale.

8. Certificate of Title

Another important document that you would encounter and must-have is the Certificate of Title. This paper will serve as proof that you absolutely have ownership of the house and lot that you recently purchased.

Before you can apply for the title transfer, you would need to have first another Deed of Sale, and you have to fully pay your property.

9. Tax Declaration

Last but definitely not least of the most important documents that you have to prepare in purchasing a house and lot is the Tax Declaration. You can request a Tax Declaration document from the Assessor’s Office of the local government unit in which your purchased property is located.

In requesting a Tax Declaration, you have to submit a certified true copy of the title and the photos of the property. The Assessor’s Office will then assess the taxable value of your property, which will be the basis for paying your real property taxes in the coming years.

Buying your dream home can be less of a hassle if you know what purchasing process to expect when availing of a brand new house and lot. It is important that you are familiar with the different documents that you would need to prepare, submit, and process in order to achieve a smoother home buying journey.

To learn more about the real estate investment journey, don’t forget to Like, Subscribe, and turn on your Notification Button for our Lumina Sessions episode and to our Lumina Homes Official YouTube Channel.