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PMT Forum's MOST POPULAR Discussion Boards => Property and Real Estate => Topic started by: sourcing.pro on Apr 12, 2013, 03:08 PM

Title: Deed of Sale questions
Post by: sourcing.pro on Apr 12, 2013, 03:08 PM
Hi!

After paying the seller the Manager's Check on the sale of property, does the BIR require a xerox copy of the manger's check as proof of payment to the seller?

Thanks!
Title: Re: Deed of Sale questions
Post by: naldcagape on Apr 13, 2013, 08:45 AM
Yes and acknowledgement receipt/official receipt.
Title: Re: Deed of Sale questions
Post by: bauer on Apr 14, 2013, 12:03 AM
Hi!

After paying the seller the Manager's Check on the sale of property, does the BIR require a xerox copy of the manger's check as proof of payment to the seller?

Thanks!

Not required.  a notarized deed of absolute sale is more than sufficient for the BIR.  Likewise, in tax assessment, the deed of sale is just a reference point only by the BIR so why does it need an MC to check and validate?
Title: Re: Deed of Sale questions
Post by: naldcagape on Apr 14, 2013, 05:40 PM
Actually, some RDO's require it. They are not saying why but I think it's their way of verifying a cash sale and an instalment sale or maybe to make sure there is no undervaluation being done. Of course it's easy to just break down the MC to 2 checks so I think it's the first reason.
Title: Re: Deed of Sale questions
Post by: bauer on Apr 15, 2013, 12:57 PM
I do not suggest to anyone to provide an MC just because an RDO officer requested such info.

It will or might open a floodgate of new problems for the buyers!
Title: Re: Deed of Sale questions
Post by: grandestan on Apr 17, 2013, 12:11 PM
agree with mr. bauer.whatever amount we put in deed of sale, BIR will always follow their own computation based on whichever is higher among 1. selling price in deed of sale  or 2. zonal value for land  plus tax declaration for improvements.
Title: Re: Deed of Sale questions
Post by: mxherr5 on Apr 17, 2013, 01:58 PM
I do not suggest to anyone to provide an MC just because an RDO officer requested such info.

It will or might open a floodgate of new problems for the buyers!
sort of out of topic but what kind of problems would this cause
for us(buyers?) Aside from paying a small fee for the manager's check
Title: Re: Deed of Sale questions
Post by: naldcagape on Apr 17, 2013, 07:51 PM
If it's a straight cash sale and the deed of sale is not undervalued, I don't see a problem.

If the deed of sale is undervalued, BIG PROBLEM! Most likely, you'll be charged with tax evasion and falsification.

If it's instalment sale and you have already paid more than 25% of the price years ago but you haven't paid capital gains tax, then there are tax penalties.
Title: Re: Deed of Sale questions
Post by: cedrick.img on May 09, 2013, 01:58 PM
Hi!

After paying the seller the Manager's Check on the sale of property, does the BIR require a xerox copy of the manger's check as proof of payment to the seller?

Thanks!

 No need for the cheque(s).  Deeds of absolute sale is enough  for paying the taxes in BIR.. because they have their own computation to the value(zonal value)of the property even you buy it cheaper than the original price...
Title: Re: Deed of Sale questions
Post by: cedrick.img on May 09, 2013, 02:00 PM
No need for the cheque(s).  Deeds of absolute sale is enough  for paying the taxes in BIR.. because they have their own computation to the value(zonal value)of the property even you buy it cheaper than the original price...

   along with other supporting documents like tax declaration and tax clearance that you can get in the municipality... etc....
Title: Re: Deed of Sale questions
Post by: naldcagape on May 10, 2013, 05:42 PM
No need for the cheque(s).  Deeds of absolute sale is enough  for paying the taxes in BIR.. because they have their own computation to the value(zonal value)of the property even you buy it cheaper than the original price...
have you processed taxes in the BIR? they don't just use the zonal value.
Title: Re: Deed of Sale questions
Post by: cedrick.img on May 11, 2013, 09:00 AM
have you processed taxes in the BIR? they don't just use the zonal value.

 yes... Always... :D
Title: Re: Deed of Sale questions
Post by: naldcagape on May 11, 2013, 09:50 AM
I'm surprised. If the BIR always the zonal value in your case, I'm inclined to think you are always under-declaring the sale price. That is not good practice. I know you can buy below zonal value but do you always sell below zonal value?
Title: Re: Deed of Sale questions
Post by: cedrick.img on May 11, 2013, 09:58 AM
I'm surprised. If the BIR always the zonal value in your case, I'm inclined to think you are always under-declaring the sale price. That is not good practice. I know you can buy below zonal value but do you always sell below zonal value?

No... depends to my boss hehehehe (my sister) :D
Title: Re: Deed of Sale questions
Post by: matiaski on May 20, 2013, 12:27 PM
Hi!

After paying the seller the Manager's Check on the sale of property, does the BIR require a xerox copy of the manger's check as proof of payment to the seller?

Thanks!

Depende sa RDO. Like RDO 28, they require photcopy of MC's. so pag may discrepancy mag kaka problem kayo.
Title: Re: Deed of Sale questions
Post by: jomor on Jun 17, 2013, 05:01 AM
I believe it is no longer necessary because the Deed of Sale document indicates this: "NOW THEREFORE, for and in consideration of the amount of xxx (Pxxx) Philippine Currency, the receipt whereof is hereby acknowledged by the SELLERS from the BUYERS ..."

I experienced being asked for a receipt at the RDO office but I pointed out to the Officer of the Day about this paragraph in the Deed of Absolute Sale... which they understood, and no further questions asked...
Title: Re: Deed of Sale questions
Post by: mark_ruiz2005 on Nov 25, 2013, 03:44 PM
Actually, some RDO's require it. They are not saying why but I think it's their way of verifying a cash sale and an instalment sale or maybe to make sure there is no undervaluation being done. Of course it's easy to just break down the MC to 2 checks so I think it's the first reason.
A Copy of checks in any form is not being required by the bir rdo or the registry of deeds. What is being required by the bir is a copy of official receipt if the seller is a corporation and acknowledgment receipt (notarized) if otherwise. On the otherhand, the registry of deeds needs a copy of the car, transfer tax payment, and deed of sale duly stamped by the bir since its duty is ministerial in nature. Please take note also that not all sales of property should be in the form or checks or managers check in particular, it can be also in form of cash or via loan take out from other banks. If for the sake of arguments  a copy of managers check is required to establish that the amount stated in the deed is not under-value, how about if the payment is in cash?
Title: Re: Deed of Sale questions
Post by: jomor on Nov 28, 2013, 08:54 PM
Hi!

After paying the seller the Manager's Check on the sale of property, does the BIR require a xerox copy of the manger's check as proof of payment to the seller?
Thanks!
If you signed a Deed of Absolute Sale, you don't need any receipt of payment anymore... I would like to direct you to the paragraph in the Deed of Absolute Sale which states: "Now therefore, for and in consideration of the aforesaid premises and more specifically the sum of ______, Philippine Currency, the receipt whereof is hereby acknowledged in full ..."

I had a similar experience with BIR and they asked for a separate receipt of payment... I just pointed out this particular provision which is very clear... and even notarized... what other document or documents that will defeat this particular paragraph of the Deed of Absolute Sale? I think what the BIR has asked is just a way of (?)... you know what I mean... hope this helps.
Title: Re: Deed of Sale questions
Post by: julz on Apr 07, 2014, 10:01 PM
Paano malalaman kung magkano ang computation ng BIR sa property mo? May formula ba yun?
If lote madali lang kasi per sqm, zonal values, what if meron minimal improvement?

Masama ba maglagay ng undervalued price? Eh kung yun ang price na nakapag-sunduan? especially if motivated seller.