The Quezon City Office of the City Treasurer shall be having a property tax sale through public auction on July 2, 2009, 10 a.m., at the main entrance, Taxpayer’s Lounge, Quezon City Hall, Diliman, Quezon City. As stated on the notice of sale of delinquent real property which was published last June 15, 2009 in the Manila Bulletin as a special supplement , the real property listed on the notice are hereby certified to be delinquent in the payment of real property taxes, penalties, cost due thereon as of the date.
Property Tax Sale Overview
A property tax sale generally happens when a real property is sold through public auction for nonpayment of real property taxes. Take note that the sale is still subject to a one year redemption period which gives the owner time to pay all taxes due plus interest and surcharges before the City treasurer can execute a final deed conveying to the purchaser (the winning bidder) the said property.
In order to redeem a property, the owner of a real property will have to pay the total amount of taxes, fees, interest or penalties, cost of sale, and other delinquency charges, from the date of delinquency to the date of sale, plus interest of 2% per month on the purchase price to the date of redemption. The winning bidder shall likewise receive the entire purchase price paid by him plus interest of 2% per month computed from the date of sale to the date of redemption. This shall be given to the winning bidder by the City treasurer or his deputy upon the surrender of the certificate of sale issued to him as the winning bidder during the public auction.
In case the taxpayer fails to redeem the property within the one year redemption period, the City Treasurer shall execute a final deed conveying to the purchaser said property, free from the liens of the delinquent tax, interest due thereon and expenses of sale. The deed shall briefly state the proceeding upon which the validity of the sale rests. To get more details like rules and regulations, conduct of sale, etc., it is highly recommended that interested parties visit the Quezon City Office Of The City Treasurer.
Based on the notice, prospective bidders on the public auction sale are required to post a cash bond of Php5,000.00.
You may download the list of delinquent real properties included in the Quezon City Property Tax Sale through the following links: Page 1, Page 2, Page 3
My wife and I were able to attend our first property tax sale last November 2008 in Marikina and we learned so much from that experience. What sticks in my mind is that investing in tax foreclosures will either give an annual return of 24% or you get a property at a fraction of its market value. Better read my post about the Marikina Tax Foreclosure Auction to find out more.
Happy investing!
To our financial freedom!
Jay Castillo
Real Estate Investor
REBL#: 20056
Blog: www.foreclosurephilippines.com
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Good afternoon Sir Jay!
Saan po pwede mag inquire about sa mga foreclosed and available house and lot around Laguna po sana?
Please help! I need info.
Greetings sir Jay!
I would just like to quote what you said: “What sticks in my mind is that investing in tax foreclosures will either give an annual return of 24% or you get a property at a fraction of its market value.”
Is this true? fraction of its market value? what does that mean? Does it mean instead of the TCP of the property, it can go way below? how low? less than 10% of the original price?
Sorry for the silly question. Would just like to understand properly the culture of investing in tax lien properties and to be familiar as well.
Thanks and Regards.
Hi Joseph, since the property is being auctioned for the unpaid real property tax amount (plus interest, penalties, surcharges), just in case it is not redeemed, the winning bidder will own the property for only the winning bid price, which is very small compared to the actual market value (assuming the winning bid is not far from the unpaid real property tax amount plus interest, penalties, surcharges).
Thank you sir Jay for responding. 🙂 I would just like to clarify something.. So if the winning bidder fully acquires the property due to the owner failing to redeem it, would there be other charges that the winning bidder has to pay aside from the unpaid real property tax amount?
You’re welcome Joseph!
Going back to your question, there would be no additional charges, and in effect, the winning bid will be the actual selling price.
Pardon my expression but isn’t that too good to be true? Does that usually happen? Has there been a lot of cases/situations like this? What kind of a person who would not be able to pay their tax for the property? Who are usually those people? Again, thank you for taking time to read sir.
Hi Joseph, while this may sound too good to be true, this happens lots of times. Aside from people who simply don’t have money for their RPT, there are those who don’t know they should pay RPT, those who forgot to pay RPT, those who don’t want to pay RPT, etc.
You can learn more about tax delinquent properties here: 9 Lessons Learned From The Marikina Tax Delinquent Properties Auction Last November 13, 2008
Wow! Thank you very much sir! 🙂 Was there a public auction for tax delinquent properties recently if I may ask? 🙂
Hi Jay,
Very informative, thanks for sharing, Just wondering, does Manila City has same process? Have you encountered any such event for Manila City?
Hi Andrei, I believe Manila also has the same process but I have not yet tried to check their schedules for tax foreclosure auction, Manila city hall is kinda far away from my place. You’re welcome and thanks for the visit!
If there’s anyone here from Manila who knows of any upcoming auction tax foreclosure auction, please do leave a comment here. Thanks!
Pingback: 9 Lessons Learned From The Real Property Tax Foreclosure Auction Sale In Quezon City
Hi Robin, actually, all local governments are required to publish a first notice months before the second and final notice before the tax delinquent properties are to be auctioned which would give investors enough time to do their due diligence. They probably published those notices in newspapers that are not so well known. I usually look for the notices in the Manila Bulletin, Philippine Daily Inquirer, etc. but I did not see the first and second notices in any of them.
The title would give an indication for problems like existence of encumbrances, lis pendens, adverse claims, etc., it would also help establish the true ownership of the property, and if the tax foreclosure is valid if it is annotated on the title. However, other things to consider like any arrears in homeowner association dues, utilities, cannot be found on title and one must check for these through other means.
As I have indicated in my post about the Marikina Tax Foreclosure Auction, properties that have been delinquent for only a short period of time are more likely to be redeemed. These are most probably newer and in better condition, hence, owners would be more inclined to redeem them. Properties that have been delinquent for 10 years or so, would most probably have owners that have little capacity to pay or have no intention of redeeming the property at all.
Thanks for the questions and for dropping by!
Hi Jay, additional pointer here is that the easiest and the quickest way to give investors enough time to do their diligence is to contact every now and then the treasurer’s office of the next auction. By doing this you will have a head start over the rest if you can get a list before they publish it.Sometimes they will not issue any list until the first publication but at least you have the ample time to do research and checking of the property you want to bid.
What are the clues that you can investigate if a property is going to be a quick redemption?
From the title itself of these properties would you be able to determine if the title is really clean?
I wonder why these tax foreclosures don’t give ample time for people to do their research if these properties are worthwhile investments in case unredeemed?
@Jun, very valuable information, thanks for sharing! One more challenge with regards to checking the titles at the Quezon City Registry of Deeds is you can’t get a certified true copy immediately as you have to come back after a few days to get it. This means there is a time constraint for due diligence as the auction is only 8 days away as I write this comment.
@leela, I have not tried yet but I will surely look at our next house as an investment. I would not recommend tax foreclosures as a means to get a property for personal use as it takes time as you have to wait for the 1 year redemption period to lapse. In my case, I only plan on getting properties that are likely to be redeemed because if the owner does not redeem it, the winning bidder will have to take care of ejecting them.
When the time comes for me to purchase our family’s new residence, I will look at bank foreclosed properties and I will look at it as an investment so that when I do decide to sell it later or have it rented out, it will still be a source of profit or positive cashflow. Thanks again for visiting!
Hi Jay, were you able to attend the Tagaytay pproperty auction sale last week?
have you ever tried bidding for a piece of property for personal use (instead of investment)?
Hi Jay, Thank you for the info regarding the auction at the Quezon City Hall. Just to caution everyone to investigate first the property before you bid on it. There are lots of properties here for reconstitution of Titles or cannot be found at the Register of Deeds. Another problem here in QC when you ask for refund of your bid it will take almost a year before you can have it without the interest. Fyi.