Buying a house provides a sense of security, stability, and accomplishment. Still, one should never rush with this decision. Homes these days are quite expensive, sometimes crossing a million pesos. Since a person will be investing such a huge amount, they must research well before signing any agreement or contract. This involves learning about the different types of residential homes in the country, the best locations, insurance requirements, and other crucial details.

1. Ejido lands
Those looking to buy land and build a house on it should know what “ejido” lands are. Ejido lands are agricultural land parcels owned by local communities and passed down through generations.

2. Title insurance
Getting title insurance is one of the most important steps when buying a house. This insurance covers buyers in case the property turns out to have liens associated with it. Before purchasing a policy, one must consult a realtor or legal advisor because it may have several complicated terms and conditions that may be difficult to understand.

3. Language of the documentation
One should remember that all forms and documents related to a house purchase are sent to the buyer in the country’s native language. Those who do not speak the language would need a translator to help them. Depending on where the property is being purchased, some documents may come with a courtesy English translation, which could be helpful for non-residents. Generally, real estate agents translate documents for buyers who are not native to the country and those who do not speak the national language.

4. Location of the property
The country’s beautiful cultural locales and exotic natural beauty make it an irresistible destination to live in. While one can buy a home in any state or location, some are considered better than others because they offer higher capital gains and an incredible return on investment in the long run. It is usually advisable to pick a place with world-class infrastructure and high economic development as it makes life easier. That said, one must also consider their budget. The house prices in large cities and tourist destinations are usually higher. People who need help finding a house that fits their tastes and budget can hire a real estate professional.

5. Closing costs
When budgeting for a house, one must account for different kinds of additional charges. A large proportion of these charges is in the form of Property Acquisition Tax (PAT). Both native home buyers and overseas individuals need to pay this tax. Normally, PAT is about 2% of the total purchase price of the house, but it changes depending on the property’s location. The PAT will be higher if the house is in a popular location or an in-demand zone. The total closing expenses, including PAT, notary fees, and other expenses, generally constitute about 5% to 7% of the total price of the land or house. Factoring these expenses ensures one does not exceed their budget, which can have financial implications.

6. Notary public
In addition to PAT, one must account for notary fees. The notary is an appointed government official who is an impartial witness during the house sale process. The individual helps buyers with legal matters and ensures all procedures are executed as per the law. By doing so, they help avoid real estate fraud. The notary also helps one prepare documents and certificates related to the final sale contract. Some other key responsibilities include closely reviewing the property deed, registering the property with the country’s Public Property Registry, and legalizing the purchase contract of a given house.

7. Legal residency requirements
Many countries have stringent property purchase policies, making it mandatory for people to become legal residents or, in some cases, citizens before they can officially purchase property or houses under their name. But here, one does not have to be a legal resident to own houses or property. In other words, people do not need to qualify for residency status under the immigration rules. This is applicable in both instances, whether a person purchases property directly or through a property trust.

Due to the country’s relatively flexible rules and regulations around house purchases, owning a home here is fairly straightforward. If people know the basic legalities related to possession, title, and ownership, they can get a home that fulfills their requirements without overpaying. Also, banks and other lenders nationwide offer incredible deals to prospective home buyers. For example, one may be able to buy an apartment in installments paid over several months. That said, it is important to read the terms of these deals carefully and compare offers to find the most suitable one.