In recent years, the Philippine real estate market has attracted the attention of many investors, and many have come to consult us:
"Can I go ahead with the purchase in a situation where the seller does not reside within the Philippines and it is often an agent or broker who handles the transaction?"
Q&A►
Can I buy it?
In the Philippines, it is still perfectly feasible to purchase a property without the seller residing in the territory.
Philippine law allows a landlord, even if he or she is not in the Philippines, to handle the sale of his or her property through an authorized agent.
This means that the buyer only needs to deal with the agent appointed by the landlord. Therefore, the use of a Special Power of Attorney (SPA) is crucial in this process.
Q&A►
What is a SPA?
A Special Power of Attorney (SPA) is a legal document that authorizes a seller-appointed agent to act on behalf of the landlord in all matters related to the property in the landlord's absence.
For landlords who do not reside in the territory, the SPA is key to ensuring a smooth transaction of the property.
Q&A►
SPA's permissible enforcement powers
Through the SPA, an agent can:
1. sign contracts of sale on behalf of landlords:
Agents are given the authority to sign sales contracts through the SPA so that buyers can legally contract with the agent.
2. Processing of payments:
3. Transfers:
4. Settlement of legal matters:
Q&A►
How can I be sure the spa is authentic and reliable?
When using an SPA for real estate transactions, it is important to keep the following in mind:
Ensure the legality of the SPA:
a. Buyers are required to confirm that the SPA is notarized and certified.
Unnotarized or uncertified SPA may invalidate the transaction.
b. Carefully check that the signature and seal on the SPA are genuine and comply with the relevant legal requirements.Detailed examination of the agent's qualifications and identity:
Buyers should carefully review the agent's qualifications and identity to ensure that he or she actually represents and has the right to represent the landlord and has the appropriate authorization.
Clarify the scope of the SPA's authority:
The SPA should clearly list the specific authority of the agent, the content of the duties. Avoid disputes in the future.
Keep communicating:
Buyers and sellers should maintain regular communication to ensure that every step of the transaction is conducted with the knowledge and consent of both parties.Consultation with legal counsel:
Buyers are advised to consult a professional legal organization or attorney during the transaction process to ensure that all documents and processes comply with Philippine legal requirements and to verify the legality and validity of the SPA
Buying a property from a non-resident landlord is possible in the Philippines, but special attention needs to be paid to the use of Special Power of Attorney (SPA) and related considerations.
By ensuring the legality of the SPA, clarifying the authority of the agent, maintaining good communication and seeking the assistance of a lawyer, buyers can effectively avoid risks and successfully complete the property transaction.