Philippine property terms, defined

Every term, A to Z

Amortization

The fixed monthly loan repayment covering principal and interest — the figure the mortgage calculator and every est. monthly chip estimate.

Association dues

Monthly fees every condo or subdivision homeowner pays the association for security, maintenance and amenities — a permanent part of the real monthly cost, quoted per square metre.

Capital Gains Tax (CGT)

The 6% tax on the selling price or zonal value (whichever is higher) conventionally paid by the seller on every property sale.

CCT

Condominium Certificate of Title — the ownership document for a condo unit, issued by the Registry of Deeds like a TCT but covering the unit plus an undivided interest in the building's common areas.

Certified True Copy (CTC)

An official Registry of Deeds copy of a title — the only reliable way to check ownership and encumbrances; always pull it yourself rather than accepting a seller's photocopy.

Deed of Absolute Sale

The notarised contract that transfers ownership — the document the BIR taxes and the Registry of Deeds uses to issue the buyer's new title.

Documentary Stamp Tax (DST)

The 1.5% buyer-side national tax on the deed of sale, due to the BIR within the 5th day after the month of signing.

Down payment

The buyer's cash share of the price, conventionally 20% for bank financing — paid before or alongside loan release.

Earnest money

A good-faith deposit paid to hold a deal while documents are prepared — usually credited to the price at closing, and forfeited under the terms of the reservation agreement if the buyer backs out.

Encumbrance

Any annotation on a title limiting or burdening the property — mortgages, liens, easements, lis pendens or adverse claims — read before paying anything.

Equity

The portion of the property you own outright — down payment plus principal repaid. Pre-selling buyers often pay "equity" in instalments during construction.

Floor area / lot area

Floor area is the enclosed living space; lot area is the land itself. Condo listings quote floor area, house-and-lot listings quote both — the ₱/m² chips use floor area for built types and lot area for land.

Lis pendens

A title annotation warning that the property is the subject of pending litigation — a hard stop until a lawyer explains it.

Notarial fee

The fee a notary public charges to notarise the deed of sale — typically ₱5,000–₱15,000 and a required step before BIR processing.

Pag-IBIG

The Home Development Mutual Fund — the government housing fund that lends to contributing members, historically at subsidised rates for lower-income borrowers.

Pre-selling

Buying a unit before or during construction, usually at a lower price than RFO. The buyer relies on the developer's DHSUD License to Sell and track record rather than a finished product.

Reservation fee

The developer or seller's fee to take a unit off the market for a fixed period, typically ₱20,000–₱100,000 for new projects — read its refund and forfeiture clauses before paying.

RFO

Ready for occupancy — a finished unit or house you can inspect and move into shortly after closing, as opposed to buying off a floor plan.

Special Power of Attorney (SPA)

A notarised authority letting one person sign and transact for another — required when anyone other than the titled owner sells the property.

Tax declaration

The municipal assessor's record of a property's assessed value for real property tax — should match the title's area and classification, and its receipts prove taxes are paid.

TCT

Transfer Certificate of Title — the ownership document for land and houses, issued by the Registry of Deeds. A clean TCT names the registered owner and lists every encumbrance on its annotations page.

Transfer tax

The local (LGU) tax on a property transfer — around 0.5–0.75% of price or zonal value, higher inside Metro Manila cities.

Turnover

The formal handover of a finished unit — keys, punch-list inspection and acceptance documents — after construction or after a resale closes.

Zonal value

The BIR's official per-square-metre value for a location — taxes are computed on whichever is higher between the selling price and the zonal value.