Real Estate

1. REAL
ESTATE
CHUA | LASALA | LAWAGAN | MACALALAG

2. Contents
What is real estate?
Registration requirements &
regulators (BOI, DENR, HLURB, BIR,
DAR, LGUs)
01
03
02 Types of Real Estate Developments

3. WHAT is Real Estate?
Real estate is real property that consists of land and
improvements, which include buildings, fixtures, roads,
structures, and utility systems. Property rights give a title of
ownership to the land, improvements, and natural resources
such as minerals, plants, animals, water, etc.

4. Types of
Real Estate
Developments
subdivisions,
townhouse and
apartments
condominiums,
condotels,
office spaces

5. In a real estate business, there are three
(3) main contracts that the developer
and the buyer have to execute; these are
the reservation agreement, the contract
to sell and the deed of absolute sale.

7. The BOI, if national interest requires, may deny
registration of projects engaged in the export of a
product including industry inputs that are in short
supply domestically.
The BOI shall include geographical considerations
in evaluating projects to be qualified for incentives.

8. Equity Requirements
The minimum equity of the project applied for
registration is 25% of the project cost unless
exempted under any of the following:
1. Projects of applicants with good track record in
implementing registered projects;
2. Projects of publicly-listed companies; or
3. Projects not entitled to ITH.

10. How do I apply for a DENR permit?
Duly accomplished Application Form.
Photocopy of Business/Mayor's Permit from the
city/municipality where the establishment is
located for the current year.
Location map of the establishment.
Duplicate copy of the official receipt of payment
of application fee.
Product listing Form.
PTO Application Requirements
1.
2.
3.
4.
5.

11. What are the priorities and duties of
DENR?
To mobilize our citizenry in protecting, conserving,
and managing the environment and natural
resources for the present and future generations.
DENR is tasked to formulate and implement
policies, guidelines, rules and regulations relating to
environmental management and pollution
prevention and control.

13. Who needs to register with Hlurb?
Any business firm, whether a corporation,
partnership, cooperative or association, or single
proprietorship, shall first register with the HLURB in
accordance with the rules and guidelines herein
provided before it can engage in the practice of
real estate service with any project.

14. Documentary Requirements
- Articles of Incorporation
- By-Laws
- Information Sheet
- Undertaking and List of Incorporators
- Certification
- Authorization

16. Established on 26 Oct 1936 by virtue of the
Commonwealth Act No. 83 or the Securities Act.
Prompted by the need to safeguard public interest in view
of local stock market boom.
Major functions:
registration of securities
analysis of every registered security
evaluation of the financial condition and operations of
applicants for security issue
screening of applications for broker’s or dealer’s license
supervision of stock and bond brokers as well as the stock
exchanges
1.
2.
3.
4.
5.

17. Who needs to register with SEC
Philippines?
Every businessperson who wants to run a business operation in
the Philippines has to register. SEC Registration in the Philippines
is compulsory, to legitimize the juridical unit and permit it to
legally participate in business, issue receipts, trade with financial
assets, and be entitled to rights under the nation's corporate and
investment laws.

18. DOCUMENTARY REQUIREMENTS FOR REGISTRATION OF
CORPORATIONS AND PARTNERSHIPS - PRIMARY
Documents signed abroad must be authenticated by the
Philippine Embassy or Consulate in the country where signed.
Audited Financial Statements and Special Audit Reports must
be certified by an independent Certified Public Accountant
(CPA), with Statement of Representation filed with the SEC
All applications must indicate the Tax Identification Number
(TIN)
Foreign investors are allowed to indicate passport number in
lieu of TIN

19. eLECTRONIC SIMPLIFIED PROCESSING OF APPLICATION FOR
REGISTRATION OF COMPANY (SEC - ESPARC)
One Person Corporation (OPC) and Domestic corporations
(stock and non-stock) with 2 or more incorporators who may
either be natural person.
Partnership, association or corporations, singly or jointly with
others but not more than fifteen (15) in number.
A facility to cater application for:

20. eLECTRONIC SIMPLIFIED PROCESSING OF APPLICATION FOR
REGISTRATION OF COMPANY (SEC - ESPARC)
Selection of Processing Office
Details for applicant authorized representative
Company type
Company name
SUBMISSION OF APPLICATION
STEP 1 – NAME VERIFICATION
https://esparc.sec.gov.ph/application
https://esparc.sec.gov.ph/docs/UserGuide-esparc.pdf

21. Purpose
Information for the Principal Office Address
Valid business contact information
Signed and authenticated or notarized documents
STEP 2 – COMPANY DETAILS
STEP 3 – CAPITAL STRUCTURE
STEP 4 – COMPANY OFFICERS
STEP 5 – FILE UPLOADING
STEP 6 – APPLICATION REVIEW

23. Shall be under the supervision and control of the
Department of Finance and its powers and duties shall
comprehend the assessment and collection of all
national:
internal revenue taxes
fees
charges
enforcement of all forfeitures, penalties, and fines connected
therewith
execution of judgments in all cases decided in its favor by the
Court of Tax Appeals and the ordinary courts.
1.
2.
3.
4.
5.

24. Who needs to register with BIR?
APPLICATION FOR TAXPAYER IDENTIFICATION NUMBER (TIN)
Any person, whether natural or juridical, required under the
authority of the Internal Revenue Code to make, render or file a
return, statement or other documents, shall be supplied with or
assigned a Taxpayer Identification Number (TIN) to be indicated
in the return, statement or document to be filed with the Bureau of
Internal Revenue, for his proper identification for tax purposes

25. Corporate income tax
Value-added tax
Withholding taxes (on compensation, fringe benefits, etc.)
The Certificate of Registration issued by BIR (BIR Form 2303) contains an enumeration of the
types of taxes that are required to be paid to the government, which includes the following:
Payment of the Annual Registration Fee (PHP500.00) at the Authorized Agent Banks (AABs) of
the concerned RDO
CERTIFICATE OF REGISTRATION
ANNUAL REGISTRATION FEE

26. Sale of residential lot with gross selling price exceeding P1,919,500.00,
residential house and lot or other residential dwellings with gross
selling price exceeding P3,199,200.00, where the instrument of sale is
executed on or after Nov. 1, 2005, is subject to 10% output VAT, and
starting Feb. 1, 2006, to 12% output VAT .
SALE OF REAL ESTATE PROPERTIES

27. Department of Agrarian Reform

28. The lead government agency that holds and implements
comprehensive and genuine agrarian reform which
actualizes equitable land distribution, ownership, agricultural
productivity, and tenurial security.
Provide Land Tenure security to landless farmers through land
acquisition and distribution; leasehold arrangements’
implementation and other LTI services;
Provide legal intervention to Agrarian Reform Beneficiaries (ARBS)
Implement, facilitate and coordinate the delivery of support
services to ARBs

29. Local Government Units (LGUs)

30. BUSINESS PERMIT AND REAL PROPERTY TAX
DECLARATION
A kind of business license that ensures your company’s full compliance
with city ordinances where your business is located.
Showing the market and assessed values of the property as the basis for
the collection of real property tax.
Keeps track of prior ownership of the property and is useful for
“tracebacks” (when research is being done on history of a property)
Assessment for the value of the improvement to figure out the zonal
value of the property.
To show proof of ownership.
Mayor’s Permit or Business permit
Declaration of Real Property (Tax Declaration)

31. REAL
ESTATE
CHUA | LASALA | LAWAGAN | MACALALAG
THANK
YOU!