Requirements for transfer of ownership

Requirements for transfer of ownership "My parents have already decided to give me a lot so I can start on my own. What are the requirements needed for the transfer of ownership? Which is easier and less costly, selling the property or donating it? ErykaDear Eryka, There are several modes of transferring ownership. Two of these modes are sale and donation. Should your parents opt to sell the property, a contract of sale must be executed stating therein that they are transferring the ownership of the subject lot in your favor in consideration of a price certain. On the other hand, if they decide on donating the property, a deed of donation must be executed in your favor gratuitously conveying to you their ownership over said property.Insofar as your expenditure for acquiring the property or capital expense is concerned, it is more costly to enter into a contract of sale. As what we have mentioned, you will have to pay your parents the contract price in order for them to completely confer to you the ownership of the property. In contrast, it would be less costly if your parents decide to donate the property. Since donation is an act of liberality, you are not expected to shell out any amount in order for the transfer to prosper. It is only necessary that they make a public document or a deed of donation, and that you accept said donation during their lifetime, whether it be in the same deed or in a separate public document (Article 749, New Civil Code). Insofar as the expenses for the registration of the transfer is concerned, we regret to inform you that we cannot quantify with particularity which of the two modes will be less costly because in both cases, you will need to spend some amount of money for the registration of the transfer from their names to yours before the Register of Deeds of the place where the lot is situated. It would be more prudent for you to visit the said agency to inquire on the fees which you need to pay for the processing of the transfer. Insofar as the taxes to be paid for the transfer of the property, the same may also vary depending on which mode you and your parents agree on. If they end up selling the property to you, they will be required to pay capital gains tax which is a final tax of six percent based on the gross selling price or current fair market value as determined in accordance with Section 6(E) of the National Internal Revenue Code (NIRC), whichever is higher (Section 24 (D), id). On the other hand, if they opt to donate the property to you, they have to settle the appropriate donor’s tax. If the value of the subject lot does not exceed One Hundred Thousand Pesos, it shall be tax exempt. But if the property is over One Hundred Thousand Pesos but not exceeding Two Hundred Thousand Pesos, they will have to pay two percent of the amount exceeding One Hundred Thousand Pesos. If the value of the property does not exceed Five Hundred Thousand Pesos, the amount payable is Two Thousand Pesos plus four percent in excess of Two Hundred Thousand Pesos, and so on and so forth.We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated. Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net." - https://www.affordablecebu.com/