Example Loan Structure:

• Property Appraised Value: ₱5,000,000.00
• Loan-to-Value (LTV): 60%
• Principal Amount: ₱3,000,000.00
• Interest Rate: 12% per annum (Competitive market rate for private/business land-backed loans).
• Term: 24 Months.

1. DISCLOSURE STATEMENT ON LOAN/CREDIT TRANSACTION

(As required under R.A. 3765, Truth in Lending Act)

NAME OF BORROWER: Juan Q. Dela Cruz

ADDRESS: 123 Narra Street, Barangay San Lorenzo, Makati City, 1223

CREDITOR: Prime Yield Lending Corp.

2. REAL ESTATE MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This REAL ESTATE MORTGAGE (the “Mortgage”) is executed this 21st day of March 2026 at Makati City, Philippines, by and between:

JUAN Q. DELA CRUZ, Filipino, of legal age, married to Maria Dela Cruz, with residence at 123 Narra Street, Barangay San Lorenzo, Makati City, hereinafter referred to as the MORTGAGOR;

And

PRIME YIELD LENDING CORP., a corporation duly organized and existing under Philippine laws, with SEC Registration No. CS202412345, with principal office at Unit 808, Ayala Tower One, Ayala Avenue, Makati City, represented by its Manager, ATTY. ROLANDO S. SILVA, hereinafter referred to as the MORTGAGEE.

WITNESSETH:

SECTION 1. THE OBLIGATION. The MORTGAGOR hereby acknowledges a loan in the principal sum of THREE MILLION PESOS (₱3,000,000.00), Philippine Currency, with interest at the rate of TWELVE PERCENT (12%) per annum, payable within TWENTY-FOUR (24) months.

SECTION 2. THE COLLATERAL. To secure the payment of the Loan, the MORTGAGOR hereby transfers and conveys by way of REAL ESTATE MORTGAGE unto the MORTGAGEE, its successors and assigns, the following property:

TRANSFER CERTIFICATE OF TITLE NO. 006-2021008888

“A parcel of land (Lot 5, Blk 2 of the consolidation-subdivision plan…) situated in the City of Makati, Island of Luzon. Containing an area of THREE HUNDRED (300) SQUARE METERS, more or less.”

SECTION 3. COVENANTS OF THE MORTGAGOR.

• 3.1 Taxes: The MORTGAGOR shall pay all Real Property Taxes (RPT) annually.
• 3.2 Insurance: The MORTGAGOR shall maintain fire insurance on any improvements, naming the MORTGAGEE as the beneficiary (Loss Payable Clause).
• 3.3 Non-Alienation: The MORTGAGOR shall not sell, lease, or further encumber the property without the prior written consent of the MORTGAGEE.

SECTION 4. EVENTS OF DEFAULT / ACCELERATION. The entire balance shall become immediately due and demandable if:

1. The MORTGAGOR fails to pay any monthly installment for two (2) consecutive months.
2. The property is attached or levied upon by other creditors.
3. The MORTGAGOR provides false information regarding the title’s status.

SECTION 5. EXTRAJUDICIAL FORECLOSURE. In the event of default, the MORTGAGEE is hereby appointed as the Attorney-in-Fact of the MORTGAGOR with full power to sell the property at a public auction under Act No. 3135, as amended. The MORTGAGEE shall be entitled to attorney’s fees equivalent to 10% of the total amount due.

IN WITNESS WHEREOF, the parties have signed this instrument on the date and place first above written.

______________________      ______________________

JUAN Q. DELA CRUZ       ATTY. ROLANDO S. SILVA

Mortgagor            For: Prime Yield Lending Corp.

3. Crucial Advice for the Business

• Notarization & Registration: This contract is only “ideal” if you take it to the Registry of Deeds to have the mortgage annotated on the back of the Original Title. If you don’t annotate it, the owner could “lose” the title, get a second copy, and sell the land to someone else.
• Custody: As the lender, you should physically hold the Owner’s Duplicate Copy of the TCT until the loan is fully paid.

When an individual is the lender, there are two major shifts in setup:

1. Truth in Lending Act: If you are not “engaged in the business of lending” (meaning this is an isolated transaction), you aren’t strictly required to issue the formal Disclosure Statement. However, I have kept it in the example below because it is a “best practice” that prevents the borrower from later claiming they didn’t understand the costs.
2. Taxation: As an individual, you don’t use a “Certificate of Authority” from the SEC, but you must still report the interest income on your personal ITR.

1. DISCLOSURE STATEMENT ON LOAN/CREDIT TRANSACTION

(Standardized for transparency and protection of the Individual Creditor)

BORROWER: Maria L. Santos

ADDRESS: 456 Bluebird Lane, Brgy. Ugong, Pasig City

CREDITOR: Ricardo A. Ramos (Individual)

ADDRESS: 789 Maple St., Forbes Park, Makati City

2. REAL ESTATE MORTGAGE (Individual Version)

KNOW ALL MEN BY THESE PRESENTS:

This REAL ESTATE MORTGAGE made and executed this 21st day of March 2026 at Pasig City, Philippines, by and between:

MARIA L. SANTOS, Filipino, of legal age, single, with residence at 456 Bluebird Lane, Brgy. Ugong, Pasig City, hereinafter referred to as the MORTGAGOR;

And

RICARDO A. RAMOS, Filipino, of legal age, married to Elena Ramos, with residence at 789 Maple St., Forbes Park, Makati City, hereinafter referred to as the MORTGAGEE.

WITNESSETH:

SECTION 1. THE LOAN. The MORTGAGOR hereby acknowledges a loan from the MORTGAGEE in the principal sum of ONE MILLION PESOS (₱1,000,000.00), evidenced by a Promissory Note.

SECTION 2. INTEREST. The loan shall bear an ideal interest rate of TEN PERCENT (10%) per annum. This rate is chosen as it is well within the “conscionable” limits set by the Supreme Court (typically anything above 24% p.a. risks being declared void).

SECTION 3. THE COLLATERAL. To secure the loan, the MORTGAGOR hereby mortgages the following property:

TRANSFER CERTIFICATE OF TITLE NO. 123-456789

“A parcel of land situated in the City of Pasig, containing an area of TWO HUNDRED (200) SQUARE METERS, more or less…”

SECTION 4. EXTRAJUDICIAL FORECLOSURE. In the event the MORTGAGOR fails to pay the principal or interest when due, the MORTGAGEE is hereby authorized to extrajudicially foreclose this mortgage under Act No. 3135, as amended.

SECTION 5. BINDING EFFECT. This mortgage shall be binding upon the heirs, executors, and assigns of both parties.

IN WITNESS WHEREOF, the parties have signed this 21st day of March 2026.

______________________      ______________________

MARIA L. SANTOS        RICARDO A. RAMOS

Mortgagor            Mortgagee

Important Differences for Individuals:

• Ideal Interest: For individuals, 10% to 15% per annum is the “sweet spot.” If you charge 3% per month (36% p.a.), a judge might strike it down as “unconscionable” if the borrower sues.
• The Spousal Consent: Note that in the preamble, I mentioned “married to…” If the land is “conjugal” (owned by a married couple), both spouses must sign as Mortgagors, or the contract can be voided later.
• Doc Stamp Tax (DST): Even as an individual, you must pay the DST (₱1.50 for every ₱200 of the loan amount) at the BIR within 5 days of the following month, or the Registry of Deeds will refuse to annotate the title.

The post Real Estate Mortgage (REM) Contract first appeared on AB&B Real Estate Services.

Also see: Villasis Zonal Values

Barangay: POBLACION

Barangay: ALIWEKWEK

Barangay: BANTAYAN

Barangay: BASING

Barangay: BAAY

Barangay: BALOCOC

Barangay: BALANGOBONG

Barangay: CAPANDANAN

Barangay: DOMALANDAN – EAST

Barangay: DOMALANDAN – WEST

Barangay: Dulag

Barangay: DORONGAN

Barangay: Dulag

The post Lingayen Zonal Values first appeared on AB&B Real Estate Services.

After 50 years of agrarian reform in the Philippines, President Ferdinand “Bongbong” R. Marcos Jr. has taken a historic step by signing the New Agrarian Emancipation Act (R.A. No. 11953). This landmark law forgives over PHP 57 billion in unpaid debts for 610,054 Agrarian Reform Beneficiaries (ARBs), covering 1,173,101.57 hectares of land.

The signing ceremony, held at Kalayaan Hall in Malacañan Palace, was attended by key cabinet members, senators, congressmen, and 200 ARBs from Regions III and IV-A. Representatives from the World Bank and Land Bank of the Philippines also expressed their support for the act, emphasizing its role in promoting social justice and economic development.

The New Agrarian Emancipation Act cancels all outstanding loans, interests, penalties, and surcharges for ARBs. This move will relieve them of their financial burdens and allow them to own their lands without any further payments. The government, through the Land Bank of the Philippines, will cover these costs, ensuring that previously repossessed lands due to non-payment are returned to the beneficiaries and pending cases are dismissed.

The law also amends previous agrarian reform laws (R.A. 6657 and R.A. 9700), ending compensation requirements from ARBs to landowners. Additionally, it exempts awarded lands from estate taxes and encourages local governments to grant tax amnesty on real property and transfer taxes.

To support the ARBs, the Department of Agrarian Reform will provide Certificates of Condonation, and a broad range of support services will be extended to enhance agricultural productivity, enterprise development, and financial literacy. ARBs who have completed their payments will receive priority for credit facilities and additional support services.

President Marcos emphasized the importance of revitalizing the agricultural sector by training a new generation of farmers to drive sustainable rural development. He assured continued government support to help farmers increase productivity and improve their quality of life.

This new law marks a significant milestone in the Philippines’ agrarian reform history, promising positive impacts on the lives of farmers across the country.

The post The New Agrarian Emancipation Act first appeared on AB&B Real Estate Services.

1. Land Transfer Clearance Form – P2,000
2. Notarized Deed of Donation
3. Certified True Copy of Title
4. Certified True Copy of Tax Declaration
5. Affidavit of Transferor that:
   a. The land subject of the Deed is his retention area
   b. That the subject of the Deed is not tenanted; if tenanted, a statement showing compliance with the tenants’ right of preemption or redemption, attaching the required “Written Notices” to the concerned tenants and proofs of receipts.
   c. There is no pending case before the regular courts or any tribunal involving the land subject of the transaction. If there is a case, that the same has been decided with finality.
6. BARC Certification: Whether the land is tenanted or not; whether there is premature conversion or development of the land; and whether there is any form of conflict of claims involving land.
7. Certified True Copy of the aggregate landholding of the Transferor including the spouse from the Municipal AND Provincial Assessors Office where they are residing and where the property is located. If chartered city, the Certification must be issued by the City Assessor.
   

TRANSFEREE Requirements:

1. Affidavit of aggregate land holding including spouse.
2. Original or certified copy of the aggregate landholding of the Transferee including the spouse from the Municipal and Provincial Assessors Office where they are residing and where the landholding is located, issued within 6 months from filing. If land is situated in chartered city, the Certification must be issued by the City Assessor.

The post DAR Clearance Requirements (A.O. 04 Series of 2021) first appeared on AB&B Real Estate Services.

The due process of getting rid of informal settlers in private properties in the Philippines involves following the legal procedures outlined in the Republic Act No. 7279, also known as the Urban Development and Housing Act of 1992, as well as other relevant laws and regulations.

1. Identification of Informal Settlers: The landowner must identify the informal settlers occupying the property and determine whether they have legal rights to the land.
2. Notice: The landowner must give written notice to the informal settlers of the intention to evict them from the property. The notice must be in writing and served personally or through registered mail. It must also inform the informal settlers of their right to contest the eviction in court.
3. Filing of Complaint: If the informal settlers refuse to vacate the property, the landowner may file a complaint for unlawful detainer or ejectment before the appropriate court. The complaint should include the grounds for eviction, such as non-payment of rent or violation of the terms of the occupancy agreement.
4. Court Hearing: The court will then schedule a hearing to hear both sides and determine whether the eviction is lawful and just. The informal settlers have the right to present evidence to contest the eviction, and the court will consider all the evidence presented.
5. Court Decision: If the court determines that the eviction is lawful and just, it will issue an order for the informal settlers to vacate the property within a specified period. The court order must be executed by a sheriff or other authorized personnel.
6. Relocation: It is important to note that the landowner must provide alternative housing or relocation sites for the informal settlers. This is in line with the Urban Development and Housing Act, which mandates the provision of affordable housing to all Filipinos, including informal settlers.

It is important for the landowner to follow these legal procedures to ensure that the eviction of informal settlers from private properties is done legally and justly.

The post Due process of getting rid of informal settlers in private properties first appeared on AB&B Real Estate Services.

The following persons may file an application for registration of title to land, whether personally or through their duly authorized representatives:

(1) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.

(2) Those who have acquired ownership of private lands by prescription under the provisions of existing laws.

(3) Those who have acquired ownership of private lands or abandoned river beds by right of accession or accretion under the existing laws.

(4) Those who have acquired ownership of land in any other manner provided for by law.

Where the land is owned in common, all the co-owners shall file the application jointly.

Where the land has been sold under pacto de retro, the vendor a retro may file an application for the original registration of the land, provided, however, that should the period for redemption expire during the pendency of the registration proceedings and ownership to the property consolidated in the vendee a retro, the latter shall be substituted for the applicant and may continue the proceedings.

A trustee on behalf of his principal may apply for original registration of any land held in trust by him, unless prohibited by the instrument creating the trust.

B. Form and Contents

The application for land registration shall be in writing, signed by the applicant or the person duly authorized in his behalf, and sworn to before any officer authorized to administer oaths for the province or city where the application was actually signed. If there is more than one applicant, the application shall be signed and sworn to by and in behalf of each. The application shall contain a description of the land and shall state the citizenship and civil status of the applicant, whether single or married, and, if married, the name of the wife or husband, and, if the marriage has been legally dissolved, when and how the marriage relation terminated. It shall also state the full names and addresses of all occupants of the land and those of the adjoining owners, if known, and, if not known, it shall state the extent of the search made to find them.

C. Supporting Documents

The application shall be supported  by original muniments of titles or copies thereof and the following documents:

1. The original plan in tracing cloth duly approved by the Director of Lands/ Regional Lands Director/ Regional technical Director and Two (2) blue print copies duly certified by the aforementioned officers.

2. Three (3) copies of technical description that conforms with LRC Circular No. 365 which duly verified and certified by the Regional Technical Director or his authorized representative.

3. Three (3) copies of certificates from the surveyor or Geodetic Engineer or certificate of non-availability from the Regional Technical Director; and

4. Four (4) copies of the latest Tax Declaration or Assessment Certificate from the Assessor’s Office where the land is located.

The application shall contain the following information;

1. Description of the land

2. Civil Status of the applicant. If married, include the name of spouse. If separated (when, where and what court gives the order of separation). If the applicant is of minor age, state the age.

3. Complete name and address of the applicant, the present occupant of the land, owners of the adjacent lands if known, if not known, statement how shall they be located. If minor, complete name and address of legal guardian.

4. Citizenship of the applicant.

D. Outline of Steps

Below is a general outline of the steps in adoption proceedings. Please note that in some instances, these steps may not be followed.

1. Filing of Petition. The application for land registration shall be filed with the Regional Trial Court of the province or city where the land is situated. Cases involving land registration matters will be raffled only to designated land registration courts. This will take about a week.

2. Notice of Hearing. The court shall, within five days from filing of the application, issue an order setting the date and hour of the initial hearing.

The public shall be given notice of the initial hearing of the application for land registration by means of (1) publication; (2) mailing; and (3) posting.

3. Initial Hearing. The date and place of the initial hearing shall be set not earlier than forty-five days nor later than ninety days from the date of the notice.

4. Oppositions. Any person claiming an interest, whether named in the notice or not, may appear and file an opposition on or before the date of initial hearing, or within such further time as may be allowed by the court. The opposition shall state all the objections to the application and shall set forth the interest claimed by the party filing the same and apply for the remedy desired, and shall be signed and sworn to by him or by some other duly authorized person.

If the opposition or the adverse claim of any person covers only a portion of the lot and said portion is not properly delimited on the plan attached to the application, or in case of undivided co-ownership, conflicting claims of ownership or possession, or overlapping of boundaries, the court may require the parties to submit an approved subdivision plan .

5. No Oppositions. If no person appears and answers within the time allowed, the court shall, upon motion of the applicant, no reason to the contrary appearing, order a default to be recorded and require the applicant to present evidence. By the description in the notice “To all Whom It May Concern”, all the world are made parties defendant and shall be concluded by the default order.

Where an appearance has been entered and an answer filed, a default order shall be entered against persons who did not appear and answer.

6. Presentation of Evidence

7. Decree. All conflicting claims of ownership and interest in the land subject of the application shall be determined by the court. If the court, after considering the evidence and the reports of the Commissioner of Land Registration and the Director of Lands, finds that the applicant or the oppositor has sufficient title proper for registration, judgment shall be rendered confirming the title of the applicant, or the oppositor, to the land or portions thereof.

In a case where only a portion of the land subject of registration is contested, the court may render partial judgment provided that an approved subdivision plan showing the contested and uncontested portions was previously submitted.

The judgment rendered in a land registration proceedings becomes final upon the expiration of thirty days to be counted from the data of receipt of notice of the judgment. An appeal may be taken from the judgment of the court as in ordinary civil cases.

After judgment has become final and executory, the court shall issue an order for the issuance of the decree of registration and the corresponding certificate of title in favor of the person adjudged entitled to registration.

Original registration proceedings may be finished within 1 year to as long as 5 years depending on various factors such the availability of the court, complexities of the case, existence of oppositors,  availability of witnesses and documentary evidence, and also the place where the petition will be filed.

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