Purchasing your first condo property is a remarkable milestone. However, the entire process –from looking for the ideal home to making the purchase can be overwhelming, especially with acronyms and jargons thrown around within the industry. That’s why it’s always helpful to equip yourself with the right knowledge when navigating the uncharted waters of homebuying.
We crafted a handy list of terms you’ll most likely encounter in condo hunting:
- Authority to Sell (ATS): A written agreement granting a real estate broker or agent the authority to market and sell a property.
- Bureau of Internal Revenue (BIR): The government agency responsible for collecting taxes, including real estate taxes.
- Capital Gains Tax (CGT): A tax imposed on the profit from the sale of a real estate property, typically paid by the seller (usually 6% of the selling price or zonal value, whichever is higher).
- CCT (Condominium Certificate of Title): a property title that certifies ownership of a condominium unit. It details the unit’s physical specifications, floor number, and unit number, along with the names of developers and owners.
- Documentary Stamp Tax (DST): A tax levied on documents, including the Deed of Absolute Sale (usually 1.5% of the property’s selling price, zonal value, or fair market value, whichever is highest).
- Down Payment (DP): The initial upfront payment made by the buyer towards the property’s purchase price.
- Homeowners Association (HOA): An organization that manages a subdivision or condominium development and collects CUSA (Common Use Service Area) fees for maintenance and shared amenities.
- License to Sell (LTS): A permit issued by the Department of Human Settlements and Urban Development (DHSUD) allowing a developer to sell subdivision lots or condominium units.
- Pre-selling: Properties sold while they are still under construction or before construction begins, often at a lower price.
- Ready for Occupancy (RFO): A property that is fully completed and ready for the buyer to move in.
- Real Property Tax (RPT) or “Amilyar”: The annual tax levied by the local government on property owners based on the assessed value of the property.
- Reservation Fee: A smaller initial payment made by a prospective buyer to secure a property temporarily, often non-refundable if the buyer backs out.
- Special Power of Attorney (SPA): A legal document authorizing someone to act on another person’s behalf in property transactions.
- Total Contract Price (TCP): The full price of the property, including the down payment and any remaining balance.
- Transfer Certificate of Title (TCT): The primary document proving ownership of a piece of land.
- Transfer Tax (TT): A local tax imposed on the transfer of property ownership.
- Zonal Value (ZV): The value per square meter of land as determined by the Bureau of Internal Revenue (BIR), used as a basis for tax calculations.
Familiarizing yourself with real estate terms can help you make a sound decision. Buying a condo is a big step– an investment for the future, a place to start a family, and a space to call yours. When selecting a condo, work with an agent who is committed to finding the perfect match for your lifestyle and budget.
Century Properties offers homeowners various condo options from the North in San Fernando, Pampanga to the South in Batulao, Batangas.
Find your ideal home at www.century-properties.com
