Need some advice regarding property sale

From what I understand, the law in this country states that the payment of the 6% capital gains tax regarding the sale of a property is an obligation for the seller.

I also understand that in most cases this tax is paid by the buyer. However, if the seller insists on fulfilling that obligation, so the buyer negotiates a buying price that takes this into account, then how is the transfer of the title ensured?
What I mean is, if the seller just "forgets" to go pay that tax, then I assume that will make the transfer of the title impossible? What assurances if any can be written into the deed of sale or otherwise?

So, if the seller insists on paying the Cap. gains tax, and the buyers' lawyer says: then we'll run into trouble with the transfer of the title, then who's playing some game?
Seller, or lawyer, or both?

I understand that tax avoidance is probably as big an issue here as elsewhere, and without that explanation the whole thing doesn't make sense to me, but if someone could advise how things can or can't work here then I'd be grateful.

Maybe I'm seeing trouble looming where there is none, all I know is that I'm used to settling real estate transactions in a totally different way, where payment is made by the buyer into an escrow account at a certified notary, who pays all taxes and other stuff (like a mortgage bank) and assures that all paperwork is fine, before paying the remaining money to the seller. The (lack of) system here is totally alien to me.

 

My research and experience from a few years ago says you're right. Capital gains tax is the seller's responsibility but as with most things, it's negotiable. I think what sometimes happens is that the seller does not pay the tax and the title can't be transferred until it's paid, usually by the buyer at that point.
****This is not legal advice and should not be taken as such.

I suggest talking to Atty Michael Miguel. He's very straightforward and reasonably priced.
Unit 2E, 2nd Floor, Yala Bldg., South Road, Calindagan (beside Robinsons Mall) 6200 Dumaguete City, Philippines

 

One sales agreement had a list of all the assorted fees and who was responsible to pay the fee. All the fees payable by the vendor were deducted from the money paid to the vendor. The buyer made the payments to the assorted government agencies so everything got done.
Some buyers have been known to become total a$$hats once they have their money. Consider having a clause added requiring the seller to provide all necessary assistance to complete the sale FREE OF CHARGE.

Atty Miguel is one of the most reliable lawyers I know of.

 

In my 3 transactions here, if I am the buyer I try and get the seller to pay fees and taxes; if I am the seller, I try and get the buyer to pay fees and taxes. Normally, you negotiate and settle on a fair outcome for both parties.

 

This is totally true,, these people do not trust each other even within their own family's, never mind what they say.. if you have been here long enough you will see where property's are sold because mom and dad died and there is no way the sharing is anyway near equal or fair..

 

Pat, assuming that in at least one of those transactions where you were the buyer you succeeded in having the seller pay the taxes, how did you ensure there was no trouble with registering the title in your name?

 

I would not rely on the seller to actually go to the BIR and pay the taxes. Just deduct the amount due from the cash you hand over to the seller and make the trip to the BIR yourself. That's the only way to be certain it gets done.
Don't expect the seller to have any motivation to do anything once they have their money in hand.