Taxes And Fees Related To Buying Real Estate Properties In Mintal, Davao

Buying a house in Mintal, Davao is very costly. There are other factors that are added to the final cost of the property. As a buyer, it is important that you have an idea of the fees that you will be paying. This way, you can save enough money for them and avoid any hindrance along the way. ere are the list of taxes and fees that you’ll be dealing with when buying real estate properties in Mintal, Davao.

1. Value-added tax (VAT)

In every item we purchase, a value-added tax is always included in the price. A value-added tax is the 12% of the cost of the purchased item. In real estate, the VAT is calculated from the purchasing price, the zonal value or the TD value of the house, whichever is higher.

2. Registration Fee

This is the graduated rate based on the selling price of the property in Mintal, Davao. This is paid to the Registry of Deeds or the Land Registration Authority where the property is situated. This fee is for the registration for the deed of sale, exchange or donation of a real estate property.

3. Documentary Stamp Tax

This tax is charged on documents, loan agreements, and papers verifying the receipt, assignment, sale, or transfer of right to the property. This is computed by getting 1.5% of the purchasing price, the zonal value or the TD value of the house, whichever is higher.

4. Transfer Tax

This tax which is imposed by the local government unit where the property is situated is levied upon transferring the ownership of the property regardless if through sale, barter, donation or in any mode possible. This is calculated by getting the 50% of the 1% of the purchasing price, the zonal value or the TD value of the house, whichever is higher.

5. Notarial Fee

This fee is for the notarization of the Deed of Absolute Sale. This is usually 0.1% to 0.15% of the selling price of the house.

6. Loan Fee

This fee is applicable to those who applied for a housing loan. In a housing loan, there are other charges such as the appraisal fee, mortgage redemption, handling fee, and fire insurance. Of course, these extra charges depend on the bank or lending agency.