I have been so busy lately with the title transfer of a foreclosed property that I purchased and I realized that it would be better if I just outsourced the title transfer to someone else. The amount of time that I have already allocated for this could have been put to better use finding more income generating properties, among a number of other activities that are more worthwhile doing, which is why I don’t intend to spend more time with the title transfer.
Don’t get me wrong, handling the title transfer is very important for me and my tenant/buyer, and I also want to learn how this is done, which is why I tried to do this myself. However, with the amount of time and effort needed to complete this, it makes better sense to just let someone else do it for me.
Just yesterday, I spent the whole afternoon following up on some documents I needed and I drove more than a hundred kilometers in the process going back and forth from Makati to Antipolo.
Highest and best use of my time
Outsourcing the title transfer to a title company would free up my time and allow me to use it for its highest and best use. As real estate investors, the highest and best use of our time is to find more deals that would generate passive income and positive cashflow. I should always keep this in mind and focus!
Why do I need the title transferred to me?
I have already paid in full for this particular property of mine and my objective is to transfer the title of the said property from the bank to myself, in the shortest amount of time possible, so that my tenant/buyer can apply for a housing loan for it. You will notice that this is a double closing. This was the only option I had with the bank where I bought the foreclosed property from. Yes, this would mean double taxation but it is okay, I factored-in the taxes I am going to shoulder into my expenses and the numbers still made sense for this deal.
Transferring the title of the property
Just to give you an idea, transferring the title of the property to my name would require the following:
- Payment of Creditable withholding Tax – already done by the bank
- Payment of Documentary Stamps Tax – already done by me
- Payment of Transfer Tax
- Filing of Certificate Authorizing Registration or CAR at the BIR
- Payment for Registration fee and filing the transfer of the title
- Transfer of Tax Declaration
Looks easy but in reality, these tasks are very tedious and time consuming but if you are into real estate investing, you will have to do these sooner or later, unless you outsource it. The tasks above will be done for me by the title company I hired, except for those that have already been done. I’ll update you all of the status of the title transfer in a month or two. Wish me luck!
To our success and financial freedom!
Real Estate Investor
Real Estate Broker License #: 3194
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Text by Jay Castillo. Copyright © 2010 All rights reserved.
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