Dacion en Pago

by Prime Radar Team   July 16, 2015

Question: Hello PRIME! I’ve loaned in this particular bank amounting Php 7 million to start up my own laundry business and to secure my payment, I mortgaged my property, an open lot, located in Malate, Manila with 500 square meters. I was given 18 months of installment to pay my debt and as of now, I know that I will fail to meet my obligation. Here is my question before jumping to a conclusion. Can I offer half of my property as a payment to the bank?  Answer: Greetings! Yes, you can use your property as payment for your remaining debt in the bank as long as you and your creditor will settle into an agreement. In the Philippine law, there is what we call ‘Dacion en Pago’ which is defined as “a special mode of payment” where you, as the debtor, can offer other means of payment to the creditor, in your case half of your property. In simpler term, Dacion en pago is a payment in a form or property which is left or given to the lender to satisfy an obligation.

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Master Deed
by PRIME Radar Team  June 16, 2015
Master Deed

Question: Greetings PRIME Philippines! I'm just curious about condominiums and its developers, actually a lot of my friends own or rent a condo and in the future, I'm going to buy my own. But for the meantime, Let me ask you this: how do developers of those huge condominium buildings divide the property among unit owners because as I look at it, condominiums are composed of huge multiple storeys with several individual units. Answer: Greetings in return and thank you for asking! We'll introduce you to the term "Master Deed." Condominium developers use this deed as an instrument to transform...

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by PRIME Radar Team  June 8, 2015
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by PRIME Radar Team  June 1, 2015
Capital Gain Tax

Question:  Good Day Prime!!! Since my family is going to move back to my province this October in the northern parts of Luzon, my husband and I are planning to sell our house in QC. Are there any additional payments or taxes that sellers need to pay for selling a certain property?   Answer:  That's a good question, thank you for asking. Both buyers and sellers have their own obligations. The sellers need to pay the Capital Gains Tax, a tax placed on the "gains and profits" of the owner for selling, exchanging, or any source of "capital assets" from his or her own property/ties. Although there...

Right to First Refusal
by PRIME Radar Team  May 17, 2015
Right to First Refusal

Question: Hello, PRIME. I’m considering moving closer to where I work, but I’m not ready to purchase property yet so I’ll be leasing in the meantime. I’ve already found a landlord willing to lease out a space for me to stay in, but I suspect that at some point he may sell it. I’m interested in the property and by then I’m sure I’ll have the means to purchase it, but I’m worried that he might sell it to someone else. Is there any agreement we can make to ensure that in the event that he does decide to sell...

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