Selling a condo in Manila.
 

Hi

I am currently living in the UK but selling a condo in Manila that i own outright.I am selling it through a large and reputable real estate company,said property being included in their "resale" section.

I have accepted an offer in principle,with the buyer putting up 25% cash and borrowing 75% from a bank.The sale was due to go thru,that was UNTIL the real estate agency came back to me and told me that the lender was not willing to issue to them a cheque for the 75% of the proceeds in their(REAL ESTATE AGENT'S NAME) name.Instead,i have been advised to open a Filipino bank account in my own name if i am to receive the cheque from the lender.Unfortunately,opening a Filipino bank account is just not feasible right now.

I find this situation puzzling to be honest,because surely in the Filipines nearly all property sales involve a bank loan or mortgage somewhere along the line?..how have other banks/real estate agents circumvented this very common problem down the years?

I fail to understand why the bank will not issue a cheque that can made payable to the real estate agency for now,with the monies subsequently being forwarded to me at a later date,when the transaction is fully completed.!!

Could it be that this transgresses Filipino property law ??...i can think of no other reason why the bank will not release the monies to the real estate agency.

Apolgies for my ignorance if this indeed the case,but if i am wrong in my presumption,i would VERY MUCH accept any guidance/advice on this matter,please.

I was hoping that the following would happen seamlessly (is that possible in the filis!)....the estate agent would hold monies from the 75% bank loan and the 25% cash from the buyer until we have then finalised the sale,and then the monies can be wired directly to my bank account in the uk.

Thanks in anticipation.

Re: Selling a condo in Manila.
 

I know nothing about this.

Can the check made payable to you not be sent to you. Yes your bank in the Uk would then have to send it for ''collection'' or'' negotiation back to the Philippines bank that issued the cheque. This can take several weeks. You may wish to check with our local Uk bank that they can do this . Chances are they will also use a ''correspondent bank'' as an intermediary. All those processes will have charges deducted.

Did you not have a bank account in the Philippines when you purchased the condo?

Re: Selling a condo in Manila.
 

I can understand the reluctance of the bank to issue a cheque to a third party.This is the Philippines.........and despite how much you regard the integrity of so called professionals, it is often the case that collusion, commission, and the attempt to make a fast buck are evident.

I know of a case whereby a ex pat sold a property via an estate agent, who simply pocketed the proceeds of the sale. The seller was naive enough to trust the smooth talking , all inspirational,agent.

I question what is your attorney doing? Surly, you could have asked for him to act as POA and the bank may have released the cheque to him.

I have bought properties here and have a reputable (rare) attorney, who we use. After the initial price of the purchase has been agreed, I insist to the vendor that all future communication reguarding the sale, transfer, payment are explicitly done through our attorney.

Re: Selling a condo in Manila.
 

:goodpost: Absolutely mike. We gave POA to our attorney and all monies went through him , from deposit to final payment, including paying off the sellers existing mortgage from our purchase money. The seller then got the final balance , less charges etc deposited into his bank account. Went smooth as silk.

Re: Selling a condo in Manila.
 

mikemike,thanks for the advice.

When i originally bought the property i paid for it is cash through my THEN girlfriend's bank account,so i did not need a bank account to purchase the properrty,as the money was sent to her Filipino account from mine in the uk,via Western Union.I am not with the girl now,so it would not be wise i guess to use her bank account again,lol !!

I will consider getting the cheque sent out to the uk,but this is something that i do not really want to do,as the condo itself may well attract a cash buyer very soon,as it is advertised at a ridiculously low price.

--------------------------------------------------

mikek,thanks for the reply

The real estate agents i am using is just about the biggest in the Filipines,if not Asia, and i have given them authority to act on my behalf.Surely they can be trusted not to run off with a few million Pesos??..That said,if you do think i should appoint an attorney,how would i go about this,being based in the uk,and what type of fees can i expect to pay?

Thanks again lads.

Re: Selling a condo in Manila.
 

"Surely they can be trusted not to run off with a few million Pesos??"

I wouldn't trust them with a few hundred peso. It's not necessarily the company but the individual that receives the cheque.

Re: Selling a condo in Manila.
 

Is that right Gazza??...is the following scenario possible?

A mortgage lender's cheque made payable to" DCMI Homes," for example, can be stolen by an employee and put into said employee's account and be cashed,and the monies subsequently can be withdrawn or moved into another account??....can this really happen?

Re: Selling a condo in Manila.
 

You are very trusting


where is the condo and how much are you asking? or am i being too nosey:amen:

Last thought from left field

If you bank with HSBC have a chat with them as they have offices in the Philippines and may know how to assist

Re: Selling a condo in Manila.
 

mikemike,

i sent a private message to your inbox

cheers

Re: Selling a condo in Manila.
 

Jagged,

Send me a private message, location, size. Condition, age, service charges etc.Could be interested. On another matter concerning any sale are you aware of taxes you would be liable for..... capital gains, transfer tax etc ?

Re: Selling a condo in Manila.
 

If the cheque is paid into the agents account before the money being past to you then yes it can happen.

Re: Selling a condo in Manila.
 

jaygee68, can you send me a private message please regarding the condo.

Cheers

Re: Selling a condo in Manila.
 

Send me one too if it's still for sale

Re: Selling a condo in Manila.
 

Not sure if I'm still on time or or track with regards to this. Do you have any updates in attempting to sell your Condo. There's a lot of Real Estate re-sellers around the market that can help you out. Just give us the necessary information and details and I think many or some of the people here would gladly help you out.

Re: Selling a condo in Manila.
 

thomas,

The current real estate agency are displaying a lack of urgency.I have sent DMCI resales no less than 4 emails asking them if they would be interested in marketing the property.Alas,i have had no reply from them either.

If you could point me in the way of a reputable and trustworthy real estate agency,who are not lazy or disinterested in selling theproperty,i would be most grateful.

Refards

JG