Every acronym and technical term in Philippine real estate, defined in plain English. Bookmark this page — you'll come back to it.
The gradual repayment of a loan through scheduled monthly payments that include both principal and interest. In Philippine housing loans, the amortization is typically computed using the standard amortization formula and is fixed for the duration of the chosen fixed-rate period before repricing.
Commonwealth Act No. 108, the Philippine law criminalizing the use of Filipino “dummies” or nominees to circumvent foreign ownership restrictions on land and certain businesses. Penalties include 5–15 years imprisonment, fines, and forfeiture of the property.
The legal mechanism allowing a pre-selling buyer to transfer their rights and obligations under a Contract to Sell to a new buyer before turnover. Requires a notarized Deed of Assignment and developer consent. Sometimes called “pre-assignment” or a “pre-selling flip.”
The official government-issued document proving ownership of a condominium unit in the Philippines. Issued by the Registry of Deeds. The condominium equivalent of a Transfer Certificate of Title (TCT) for land.
A 6% tax on the sale of real estate classified as a capital asset in the Philippines, computed on the higher of selling price, BIR zonal value, or assessed FMV. Paid by the seller, due within 30 days of notarization. The largest single tax in most property sales.
The contract signed between buyer and developer (or seller) during the installment period of a real estate purchase. The seller commits to sell once payment is complete, but title remains with the seller until full payment. This is the primary contract during the pre-selling and equity phase.
A withholding tax (1.5%–6%) imposed on the sale of real estate classified as an ordinary asset (e.g., developer inventory). Unlike CGT, CWT is creditable against the seller's annual income tax and is not a final tax.
Republic Act No. 4726, the law that establishes condominium ownership in the Philippines and sets the 40% foreign ownership cap on any condominium project. Enacted in 1966.
The notarized contract that actually transfers ownership of real property from seller to buyer. Signed at the end of a transaction, after full payment. Triggers the obligation to pay CGT, DST, and Transfer Tax.
The Philippine government agency that regulates the residential real estate development industry. Created in 2019 under RA 11201, succeeding HLURB. Issues Licenses to Sell, accredits brokers and salespersons, and resolves disputes between buyers and developers.
A financial metric comparing a property's net operating income to its annual debt service. Used by banks to evaluate income-producing properties. A DSCR of 1.25 or higher is typically required for investment property loan approval.
A tax on documents, instruments, and papers evidencing the transfer of obligations or property. For real estate sales, the rate is 1.5% of the higher of selling price or FMV. Typically paid by the buyer, due within 5 days after the close of the month of notarization.
The certificate issued by the BIR confirming that all national taxes (CGT and DST) on a property transfer have been paid. Without an eCAR, the Registry of Deeds will not transfer the title to the buyer's name. Typically issued 2–6 weeks after BIR document submission.
The portion of a property purchase paid by the buyer from their own funds, before any loan is applied. In Philippine pre-selling, equity is typically 10–30% of the total contract price, paid in installments over 24–48 months during construction.
The predecessor agency to DHSUD. HLURB was the housing and real estate regulator from 1981 until 2019. References to HLURB in older contracts now apply to DHSUD.
The legal organization of property owners within a subdivision or condominium project. Manages common areas, collects monthly dues, and enforces community rules. For condominiums, the equivalent is the Condominium Corporation. Membership is typically mandatory for property owners.
An arrangement where the seller of a property continues to occupy it under a lease agreement after the sale. Sometimes used for retiring buyers who want to monetize their home without moving immediately, or for investment buyers acquiring units that the developer continues to operate (e.g., serviced apartments).
The permit issued by DHSUD authorizing a developer to sell pre-selling units in a specific project. Required by PD 957. Selling without an LTS is a criminal violation. Always verify the LTS before paying any reservation fee.
The ratio of loan amount to property value, expressed as a percentage. Pag-IBIG offers up to 95% LTV for properties under ₱2.5M and 90% LTV for properties ₱2.5M and above. Banks typically offer 70–80% LTV. The remaining percentage is the buyer's required down payment.
Republic Act No. 6552, the Realty Installment Buyer Protection Act. Protects buyers of residential real estate sold on installment from arbitrary cancellation and grants refund rights (50–90% of payments) for buyers who have paid 2+ years. Enacted in 1972.
A voluntary 5-year savings program from Pag-IBIG offering tax-free dividends (historically 6–7% per annum). Available to all Pag-IBIG members including OFWs. Useful for accumulating cash for property down payments.
The Philippine government's mandatory savings program that also offers housing loans at preferential rates. Membership is mandatory for all employed Filipinos. Maximum housing loan: ₱6,000,000. Subsidized rates as low as 3% available for socialized housing.
The Philippines' primary consumer protection law for subdivision and condominium buyers. Issued in 1976. Requires License to Sell, mandates performance bonds, regulates marketing, protects buyers from project changes, and creates buyer remedies for developer non-compliance.
The transfer of rights under a Contract to Sell from one buyer to another before turnover. Same as Assignment of Rights. Allows pre-selling buyers to monetize their unit before construction completion.
The sale of residential units before construction is complete. Buyers pay a down payment in installments during construction and finance the balance at turnover. Typically prices 15–30% below RFO market rates.
The Philippine government agency that licenses professionals including real estate brokers, salespersons, appraisers, and consultants under RA 9646 (Real Estate Service Act). Selling Philippine real estate without a PRC license is illegal.
A publicly listed company that owns and operates income-producing real estate, distributing 90%+ of taxable income as dividends. Philippine REITs (under RA 9856 and SEC rules) include AREIT, RCR, MREIT, DDMPR, and others. A way to invest in real estate without buying physical property.
An initial payment (typically ₱20,000–₱100,000) made to take a specific property unit off the market while purchase documents are processed. Generally non-refundable if the buyer backs out, but credited toward the down payment if the purchase proceeds.
A property unit that is fully constructed and ready for the buyer to move in. Contrasts with pre-selling (under construction). RFO units typically command 15–30% premium over pre-selling launch prices but eliminate construction risk.
An annual tax imposed by the local government unit on property owners. Rate is 1% of assessed value in provinces and 2% in highly urbanized cities including Metro Manila. Payable annually or in 4 quarterly installments. Unpaid RPT becomes a lien on the property and prevents title transfer.
A notarized legal document authorizing a specific person to act on the principal's behalf for specific transactions. For OFWs buying remotely, an SPA executed at a Philippine Embassy or Consulate is essential to allow a representative in the Philippines to sign documents.
The full price the buyer agrees to pay for a property, including base price, miscellaneous fees, parking, and any add-ons. The reference figure used in computing the down payment, equity, balance, and most taxes. Should be itemized in the Contract to Sell.
The document issued by the Registry of Deeds proving ownership of land or a house and lot. Different from a Condominium Certificate of Title (CCT) which proves ownership of a condo unit. Each TCT has a unique number and is the legal evidence of ownership.
A local government tax (0.5% in provinces, 0.75% in highly urbanized cities including Metro Manila) on the transfer of real property ownership. Paid by the buyer to the LGU Treasurer's Office within 60 days of notarization of the Deed of Absolute Sale.
The point at which a developer hands over a completed unit to the buyer. The buyer inspects the unit, lists any defects (punch list), accepts the keys, and the unit becomes their possession. For pre-selling buyers, turnover typically happens 3–6 years after reservation, depending on construction progress.
A 12% consumption tax. For residential real estate, sales of house and lot or other residential dwellings are VAT-exempt if the selling price is ₱3,600,000 or less (per BIR RR 1-2024, effective January 1, 2024). The threshold is adjusted every 3 years using the Consumer Price Index.
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