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= 1/19/21 update on pelaez and mambaling =
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= 8/31/22 hearing update =
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the broker for one of the pelaez buyers, atty balili informed me there is a pending case recently filed by Ang which is an action for settlement of estate. i have no idea what it means. i asked for the court documents and case number but he hasn't replied. i will also talk to atty tan about this tomorrow to get advice on what should be our course of action. once we get clarity, i think we should disclose it to tita georgia's buyer. at first i thought it's the same case that Ang filed in 2017, which was already closed thanks to tito virgilio and atty garrote. so i asked tita doris to get the court documents in quimoda because tita doris was the litigant. while tita doris was on her way to quimoda, good thing atty balili told me it's a new case and it's pending.
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last month's hearing was postponed to today because last month, atty gica failed to comply with the annual requirement for his license to practice law. atty balili explained to us that it's common for old lawyers especially the known legends to feel entitled and not comply with the misc requirements. in the past they can get away with it but nowadays the court system is very strict.
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the broker for mambaling buyer also told me to request atty abellana to include in our petition that the right of way will be 6 meters wide instead of only 4 meters because the developer can only get a building permit if the right of way is at least 6 meters wide. i told him we will try but i doubt it's possible because we can only be granted the right of way that was in the deed of sale. i told the broker not to worry becuase it shouldn't be a show stopper for the developer because there is no structure around the right of way and once the 4 meters right of way is annotated in the title, it will be in the best interest of the dela cernas to sell an additional 2 meters wide right of way because if our property is developed, it will cause the value of their property to increase, and it will also give them business opportunities such as karinderias because all the residents has to pass by heir property. the broker agreed with my opinion.
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today's hearing was postponed again to sep 29. a 15 year old boy was in the hearing and claimed he was Ang's lawyer. the hearing today was suppose to be for atty gica to present evidence why Ang should be co-administrator. so the judge asked the boy to present evidence and the boy said he does not know anything about the case. the boy said he is an associate lawyer in gica's law firm and gica just messaged him 3 days ago to attend today's hearing. he has been trying to contact gica and Ang for the past 3 days but they would not reply his messages. so the judge got angry at the boy and punished us by postponing the hearing.
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= 1/18/21 good news amnesty deadline is june 14 =
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the boy came to me and asked me what the case is all about and asked me how he can contact Ang. he said he never met Ang and does not even know what he looks like. atty balili was also present. i told the boy that if he wants to make a name for himself to follow the advise i'm about to give him.
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good news !!! me and tita georgia went to our BIR assessor (named edith) to give the 3 family homes certifications (thanks to tito virgilio's advice). she said it will lower our estate tax. but a bigger good news is that she told us she is ok if we pay by end of may. i bulatik to her that the philippine embassies in the states are closed for notary until april and so is the secretary of state for apostille and it usually takes a month to process. note i didn't ask for or mention the june 14 deadline because she might get offended and think, "wala diay mo ni salig nako pag ingon nako ug end of febuary". i was playing dumb and pretended i believed the deadline she gave me before. that's because she still needs to recompute our estate taxes, and if we insult or offend her she might give us an unfavorable compromise. that's how you get things done here in the philippines. if you scold them or quarrel with them they will only make your life harder even if you are right. the assessor said she will text me the new computation. let's have some fun. everyone give their guess on how much it will lower our taxes. the closest wins. my guess is the 3 family home deductions will lower our estate taxes by P1 million.
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i told the boy this case is as simple a 1+1=2. we owe Ang 1.6m plus interest. Ang sent us copies of his court petition demanding P6m in 2016. we included Ang's demand letter in the petition for administratorship. we already told Ang that we have the money and we want to pay him his P6m anytime. so there should be no problem. the boy agreed and atty baili supported my statements. atty baili then told the boy that if we really want to, we don't need to pay Ang anything because the case has been prescribed. atty balili explained more details and the boy agreed that the case has been prescribed and we really don't need to pay anything anymore. the boy was shocked and agreed it's really stupid for Ang not to accept the P6m.
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me and tita georgia also met with the broker of another pelaez buyer. as i said i'm sick and tired of meeting with buyers so i told him to meet us at the BIR to save us time and effort. we met at the parking lot of the BIR and i told him we have 2 other buyers who told us they are willing to give the downpayment even if we haven't retrieved the titles from Ang. this is a sales tactic to pressure the buyer to decide quickly.
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i told the boy it's clear gica is just trying to scam Ang and not interested in doing what's best for Ang. i suspect gica is just trying to prolong the case so he can continue to earn lawyer's fees. i told the boy about the previous hearings where gica interrogated my aunts and all his questions where irrelevant as if he just wants to show Ang he is doing something. i told the boy the judge is clearly on our side because when the judge asked gica why Ang won't give up the titles and gica replied they need it for proof on their claim, the judge told gica, "the crystals already included Ang's claim and the P6m demand in the administratorship petition. what more do you want?". the boy and atty balili strongly agreed with my opinion.
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earlier that day i met with atty abellana, who told me the hearing for the right of way in mambaling (title annotation) could be published this week. he was wearing the knights of columbus shirt, so he must be a close friend of tito virgilio. that's probably why he is doing his best to schedule the hearing early.
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i told the boy that this is an opportunity for him to build a reputation that he cares about his clients more than money. i told him i was never a good engineer but the reason why i kept getting promoted and ending up earning P150k or P7m a year in silicon valley was because i built a reputation as someone who never takes advantage of anyone and helping others and making other people happy is what makes me happy.
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= 1/17/21 coaching moment: navigating beaurocracy =
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i told the boy to talk to Ang personally and show Ang you just want to do what's best for your client. i told him to advise Ang to just take our P6m payment so we can all move on and he won't have to waste time, unecessary stress, and money paying lawyers. there's also no chance the judge would allow Ang to be co-administrator because he can't even attend hearings and his new lawyer can't even contact him to prepare for the hearing.
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tita georgia posted an article confirming the amnesty deadline is june 14. since our assessor told me it's end of febuary, i told tita georgia to accompany me to our assessor to have our estate tax recomputed with the family homes deduction. we also need to find a way to let our assessor agree or tell us the amnesty is on june 14 without offending her. i know the law is on our side. but by now you should know that in the philippines, there is a way or STYLE on how we should deal with government agencies. it's not as simple as simply doing what is right or what is "THE LAW". you were the one who told me that the toledo assessor never gave you the tax decs you needed even if by law they were required to do so. the NFA never approved my philippine passport because my birth cert says i was not born in the philippines even if by law they should give me a passport because both my parents are filipinos. i was only able to get my passport in san francisco philippine embassy. also by law DAR was not suppose to give away our 10ha 4143 because the court case was still on going. that's why it's important everyone reads my policy proposal because you will learn valuable skills on how to navigate the VERY TREACHEROUS PHILIPPINE BEAUROCRACY LANDSCAPE. the core theme of my proposal is really about STREET SMARTS and how we can be stronger as a group to ward off the sharks that are circling around us. the skills you learn will be very valuable in the future even after we resolve all the estate issues and we go our separate ways, so you can better protect your children and love ones from the sharks that are always swimming around your assets waiting for you to let your guard down. my point is that we should not just go in to BIR and demand our deadline is june 21 just because "it's the law".. first, we should do whatever we can to not rock the boat. first we should pretend that we believe the assessor that the deadline is end of febuary. then we plead that it's impossible for us to beat the deadline because of the apostille problem in the US, and the philippine embassy is closed indefintely, and we ask our deadline be moved to june. if she voluntarily moves our deadline to June, then great. but if she insists on end of feb or before june, we VERY RESPECTFULLY AND HUMBLY say, "naa man gud mi na basahan sa google maam. ambot tinuod ba ni kay daghan baya fake news sa internet karon." then we let her read your screen shots. these little things can sometimes mean the difference between success and failure. oops. no offense to tita angie and my dad. i was just generalizing, and of course we know tita angie, papa and tito jojo serves our country with integrity. hehehe. by the way discussing the amnesty deadline with the assessor should happen only after she recomputes our taxes based on the family home deductions. note that the compromise part of our estate tax is PERSONAL DISCRETION of the assessor and we were able to get a huge compromise on top of the amnesty because she is dear friends with atty mark's staff. she might get annoyed at our amnestly deadline demand and give us a very unfavorable compromise number.
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i then showed the boy the google map location of Ang's house in mandaue. i advised him that Ang does not talk to anyone face to face. the guard will call Ang and you just talk over the phone.
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= 1/16/21 coaching moment: conversation with broker =
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= 4/22/22 hearing retrospective =
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i just talked to atty balili, who's client is interested in buying pelaez. our conversation highlights the importance of the policies i just proposed. i asked for LOI and bank cert on availability of funds. he said his firm's practice in the past is to just cut to the chase and offer the MC for the 50% downpayment based on the price they think is fair and it always works. i was impressed. then i told them the script that i narrated in my policy proposal, about the situation with Ang. i also told them there is another buyer (tita georgia's) almost ready to give the downpayment (which is a sales tactic i also suggested in my policy proposal). he started to get rattled. he told me he agrees with me that there is really no need for the buyer to be in hurry with getting the title from Ang, so he will try to convince the buyer to give us the downpayment even without the title and just stipulate in the contract that they are aware of the risk. anyway the full payment won't be due until we get the title from Ang. note he is a lawyer so that proves my hypothesis that the title is really not important. it's just common sense. then he calls me again saying the buyer wants to construct a building and the title is needed for the building permit. then i said if the buyer is a big developer that means the P6m worse case scenario is just pocket change for the buyer. it should be no sweat for the buyer to shoulder the P3m on top of our P3m. he says he will talk to the buyer. he calls back and says the buyer offers to shoulder 50% of the P3m, so we pay Ang P4.5m and they shoulder P1.5m in the worse case scenario. since the appraisal for pelaez is P21m, i thought it would still be a big win. so i told him we agree and to call me when the MCs are ready. then he asks me - if in case Ang's proposal is the worse case scenario, do we have the P4.5m? i told him, why are you asking me that question? if you are going to shoulder the P1.5m, that means the deal is done, which means you should already have MCs for the downpayment, which means we should already have the P4.5m for Ang. he said, yes you're right, o sige i will talk the buyer. then i told him, if the buyer agreed to give the full payment after we get the tile from Ang, then he should give us the full payment during the downpayment because we already got the title from Ang. he say, yes that's right, i will talk to the buyer and call you back. by the way the amount the buyer agreed to was also P25m net. the lawyer also asked for 5% commission. i told him if the heirs like the amounts in the MCs, i give you my word that we will give you 5%. he thanked me and now i'm waiting for his call.
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(just sent this to atty balili. we should learn from yesterday's hearing that everyone should at least trust me so i will have less mistakes and the judge won't be angry at us. the judge was angry at us for submitting the inventory after the deadline because nobody was replying my postings in our chat group soliciting info on the missing mambaling and toledo titles so i didn't know what to put in the affidavit of loss so i can legally put in the inventory the status. if we make these kinds of mistakes that angers the judge he might assign co-administratorship to Ang)
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= 1/15/21 priorities and policies proposal =
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good morning atty, i want to summarize our meeting with tita georgia and tita doris yesterday and also report it to the heirs to ease some of their worries. i also have a few questions and requests. first, in behalf of the heirs, i would want to express my gratitude and thanks. the heirs feel so blessed and lucky to have you as our lawyer. based on our experiences, the heirs sincerely believe that your expertise and competence is very rare and there is no way the problems of the estate would be solved if you are not our lawyer.
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(i am still creating exhibit A and B, but you can start reading this for now)
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- the #1 priority of the heirs is to pay the estate tax, including toledo, before the amnesty deadline. i just want to inform the heirs that you confirmed that after the hearing on may 18, there should already be an order from the court to direct the BIR to submit the final computation. the money set aside is P4m. the initial estate tax computation is P2.8m including toledo 6ha 3816, .1ha 3817, 3.5ha 4129 and .38ha 4130-prt. but this EXCLUDES TOLEDO (60ha 4126 + 6ha 4127 + 9.8ha 4143 + 1.8ha 3820 + 2.2ha (no lot#)). let's call these "toledo new tax decs" because we took possession of their tax decs only last year (after many years of wrangling).
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------------ PART 1: priorities
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- the #2 very big concern of the heirs is the P9m estate tax computation of the toledo new tax dec properties. the fair market value assessed was P200/sqm. however, you said it's possible to negotiate a settlement with the BIR and maybe bring it down to P3m which brings our total estate tax to P6m. the heirs also claim that 2 years ago, they were looking for buyers for the toledo property and the best offer they got was only P50/sqm because there was no right of way and it was forest timberland. which means at the time of death of my grandparents (1995 and 2001), the fair market value has to be much less than that. in fact, the reason why NGCP won't pay us for the 4 towers they put in our property is because until recently our property was classified as forest timberland which is imminent domain. we would also like to get advice on who to consult in the BIR regarding this matter. my father has contacts in the BIR but i don't want him to get too involved due to his health.
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in our next meeting, we will discuss our priorities (goals/objectivs) and policies as tito mike proposed. i will give my opinions here. please read everything and try to understand so that we don't waste time going around in circles in the meeting like what happend in today's meeting.
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- the #3 big concern for the heirs is the source of funds to pay for the "toledo new tax decs". we were blind sided when we received the P9m computation. we were always under the impression that forest timberlands have very low zonal and market value. in fact at the time of death the zonal value for the new toledo tax decs was only P10/sqm. until yesterday, we never worried about the source of funds to pay for the additional toledo estate tax because we had interested buyers for our mambaling property. but in yesterday's hearing we learned that because the amnesty has been extended to june 14, 2023, the judge might not approve the payment of capital gains tax which basically means we can't sell. although the amnesty deadline is still 1 year and 2 months from now the heirs are very worried because we have no idea when we can actually have a hearing where the judge will order a final computation from the BIR and appoint a regular administrator. it's obvious to us that atty gica is trying his best to delay the hearing and it seems there are lots of tools in his disposal to delay the hearing.
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if you love your children and grandchildren and want to give them more economic security, you will read everything i write here line by line, try to understand it and give your own opinions. i drive a motorcycle everyday which is very dangerous and if something happens to me, maybe blunders like the expiration of the toledo court order for titling won't happen anymore, if all heirs follow the policies that i propose here.
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the problem is if the appointment of regular administrator keeps getting delayed, there might not be time left before the amnesty deadline to sell mambaling. we would like to request in the next hearing to inform the judge about these legitimate concerns. all we ask for is that if the hearing or appointment of regular administrator is delayed again, that the judge assures us the court will approve the payment of capital gains tax. the heirs would also want to request that in the next hearing, to inform the judge that we cannot be making offers to sell yet unless we can assure the buyer that the sale will be finalized without any hiccups. also inform the judge that it can take many months and even more than a year to find a buyer at a fair price.
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i'm the only loser in this family. i have no wife and kids, i have no job. i'm a worthless human being. but the advantage to my being a loser is i'm also the only one who has all the time in the world to do the DUE DILIGENCE and RESEARCH so that our family will be equiped with the information we need to accomplish our goals. why not take advantage of it? read everything i post and try to understand them because they will help you make better decisions and LESSEN YOUR STRESS and lessen your worries. it will also avoid confusion, misunderstandings, and conflicts.
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most importantly inform the judge that if the amnesty deadline is not met, the value of the properties are pretty much the same as the liabilities on estate tax which practically makes the entire estate worthless.
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our policies should serve as a template and guide on knowing what to do for every offer and sale for all properties so we don't waste time meeting everytime there is a buyer, only for the buyer to back out. any heir can answer any question the buyer has and tell the buyer everything the buyer needs to know about a property. i'm sick and tired of talking to buyers, brokers and agents that's why i created those package folders so that you don't have to call me and set a meeting with a buyer everytime you get an interested buyer. so that all you have to do is give the folder to the buyer, which already contains everything they need to know about the property for them to make an offer.
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- the #4 concern of the heirs is the concern that you brought up in the meeting that Ang might have some evidence we don't know of to support his P43m claim. is it correct for me to say that after 12 years of litigation, it's safe to say all evidence and tricks in his bag should have already been exhausted? is it also correct for me to say that his demand to pay him P6m in 2016 should invalidate his P43m claim?
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agreeing on priorities and policies will also prevent misundertandings and conflicts. the key to understanding any situation is to focus on the consequence. CONSEQUENCE !!! CONSEQUENCE !!! CONSEQUENCE. example if you just find out your son is gay, if you realize there really is no negative CONSEQUENCE for being gay, then you will actually be excited making plans - maybe enrolling your son to figure skating or ballet lessons. or be thankful that your son probabily won't get married and have kids so he will have time to change your diapers when you are old. try your best to not allow emotions cloud your judgement or jump into conclusions that will only ENDANGER THE ECONOMIC SECURITY OF YOU AND YOUR LOVE ONES because we fail to beat the amnesty deadline.
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- the #5 concern of the heirs is the request of atty gica to make Ang a co administrator. as you said in the meeting, there's very small chance Ang will be granted co-administratorship because of the rule which states that heirs have higher priority. you also confirmed that all estate decisions are majority vote and the heirs can petition to remove any administrator who does not carry out the will of the majority. but as you said, it will be a big headache on your part and it might further delay the sale of our properties. therefore the heirs would like to request that i be given the privelege to speak at the hearing and give a counter argument.
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priorities will guide our strategies and policies. so we should first agree on our priorities. here's what i think our priorities should be, in order of importance:
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this is what i would say in the hearing:
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1. i agree with tito virgilio that these properties are not ours and we should fulfill lolo and lola's wishes, which are:
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- your honor, i'm not a lawyer but my understanding is that the responsibility of an estate administrator is to pay the debts of the deceased and preserve the value of the estate for the benefit of the heirs. in the past 2 years, all i have done was make sacrifices and efforts to pay the debts and preserve the value by paying the estate taxes before the initial deadline was extended. on the other hand, Mr. Ang has demonstrated that his intentions are unfair and very dangerous to the value and interest of the estate which should disqualify him as co-administrator.
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- to develop properties for future generations. i refer you to exhibit B for my proposal on how we can develop the properties with minimal risk but optimal returns.
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- alleviate the economic sufferings and poverty of their pinanggas
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2. for the heirs to have funds for medical emergencies and expenses which could save their life. example, if an heir needs a bypass surgery but there is no money the heir could die. i'm giving this a lower priority because these are just the wishes of the heirs, who just inherited the properties from lolo and lola. lolo and lola's wishes should come first. it's also possible lolo and lola wants their pinanggas to die early to be with them in heaven. personally, i'm giving this a lower priority because i'm a terrible person and i believe wealth is more important than human life.
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i think it's very important for the court to know that we do have the money that mr. ang was formally demanding in 2016 + interest. we can pay him right now. therefore there really is no reason for mr. ang to be the co-administrator.
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before you crucify me for believing that wealth is more important than human life, the good news is even if we have different priorities, there is no need to argue because the strategies and action items to meet all the different priorites are THE SAME, which is: do whatever it takes to beat the amnesty deadline. example if your priority is to develop the properties to fullfill lolo and lola's wishes, where will we get the money? the money can only come from selling a property. but to sell a property we first need to pay the estate taxes and if we don't beat the amnesty deadline, we will need to sell ALL our properties just to pay the estate taxes, which is STUPID !!!
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moreover, i am willing to testify under oath that all my proceeding statements are true and correct.
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i agree with tito virgilio that pelaez is the most valuable and only income earning property. but the mambaling buyer is waiting for the court hearing for annotation of right of way, which could come after the amnesty deadline. we are not even sure the buyer will still proceed after the right of way has been annotated on the title. the only thing we can do is hope and pray there will a buyer for other properties who will give us the downpayment enough to pay for the estate taxes. but the only buyer right now is for pelaez, and the deadline is already upon us. if we don't sell pelaez, all our priorities will go down the toilet.
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all my activities regarding the estate have been logged in the collaboration tool of the estate that's why it was easy for me to recall. since the initial amnesty law was passed, the heirs have been desperately trying to sell a property to pay for the estate taxes. the reason i got involved and the heirs trust me is because i loaned the estate P1.5m to redeem one of the income generating properties that was being auctioned due to non payment of property taxes. even if at that time, i had no clue on how they will be able to repay me. i did it solely out of love and concern for my beloved, aunts, uncles, and cousins and in honor of my grandparents who were the greatest grandparents anyone could have. many were shocked that i only own a junky old motorcycle and borrow the 30 yeard junky car of my parents yet i would rik P1.5m of my hard earned nest egg without interest. i just told everyone that material things are not important in life. helping others is what makes me happy.
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i just told you the wishes and priorities of lolo and lola, and the wishes and priorties of the heirs. now i will tell you my personal wish or priority. i apologize for violating the dogma of separation of church and state or in this case separation of church and estate. i understand we should not impose our religion on others, so i want to make it clear these are just my personal priorities. my priority is to be a good christian especially during these celebration of Sr Sto Nino. and what makes Sr. Sto Nino really happy is when we help our fellow human beings, especially those suffering poverty and sickness. the core christian value is to make SACRIFICES for others. Christ demonstrated this by dying on the cross to save us. if i don't sign the contract for the pelaez sale, i'm basically making my fellow human beings, much more my dear aunts and uncles, suffer longer than necessary, or probably even cost them their life if they need an expensive life saving medical treatment. i'm basically making Sr. Sto Nino and Mother Mary very sad and dissapointed at me. at first, i didn't want to sign the pelaez sale contract because I DON'T NEED THE MONEY and pelaez has sentimental value to me. but if i do that, all my prayers, rosaries, novenas, bible studies, holy mass and blessed sacraments will be irrelevant and useless if i won't make that small sacrifice to help lolo and lola's pinanggas who are suffering poverty and might need the money for life saving medical treatment.
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a lawyer even adviced me to file for judicial partitioning where my dad will surely get the property i redeemed so we just have to pay the estate taxes for that property and we don't have to worry about the problems with the other properties. but instead i chose to file for administratorship and made another sacrifice of posting a P20m bond because the welfare of all the heirs is more important to me than money.
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now that we established our #1 priority is to sell a property as soon as possible to beat the amnesty deadline, we need to lay out the possible pitfalls or dangers that could cause all the wishes of lolo and lola to go down the toilet and cause lolo and lola to be very sad
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i was told that around 2018, the heirs were informed by their then lawyer Atty. Tan that Mr. Ang was already willing to settle for P3m. Atty Tan can attest to this. in fact, 2 of the heirs, Anne Georgia Solante and Jane Willkom told me they approached atty tan and offered to deposit the P3m in court.
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the greatest danger is the delay of the apostille in the US because of the resurgence of the covid-19 pandemic. we also don't know if the new strain of the virus will be contained. for me the best way to protect ourselve from this grave danger is for tito mike and tita jane to assign a lawyer in cebu that they can trust, maybe their classmate, who can be their SPA for the extrajudicial and the sale of any property. they can even assign auntie helen or atty george quimpo and i will fly to cagayan everytime they need to sign something. but it's safer if the lawyer is in cebu because if there is a resurgence or another wave of the virus here, i might not be able to fly to cagayan because of the lockdown.
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the heirs were aware that the only way to pay the estate tax was to pay mr. ang first because it's a requirement in the extrajudicial that the deceased left no will and no debt. in nov 25, 2020, with the amnesty deadline approaching, i set out on a mission to locate mr. ang. after lots of effort i finally knew where he lived and tried to talk to him. because of the pandemic, we only talked through the phone in the guardhouse of his house. he told me to make a written offer. i came back to his house with the written offer. i still have the very friendly and conciliatory letter i wrote to him. i also informed mr. ang about the URGENCY to accept our payment so we can file the extrajudicial and beat the amnesty deadline.
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you should not be angry at what i'm saying because WHAT I'M ASKING YOU TO DO IS WHAT YOU REALLY WANT TO DO. i feel like i'm insulting the intelligence or competence of the heirs for lecturing them as if the heirs are capable of committing monumental blunders and making self destructive decisions. but the heirs allowed the 5 year expiration date of the super favorable court order to have all the toledo lots titled to expire. that would have prevented the landgrabbings that are going on right now on our toledo lots. now we have to file a case and pay a laywer god knows how much, to recover a big chunk of our toledo properties. we don't even know if we will win the case. simply because we failed to do what WAS VERY OBVIOUS - which was to have the lots titled. so can we just for once, look at ourselves in the mirror, learn from our past mistakes and ask ourselves, ARE WE REFUSING TO DO WHAT IS OBVIOUS? i hate to offend people but it's very obvious that for the FIRST PROPERTY we sell, we should just accept any offer that is within 25% of the appraisal value, or else we miss the amnesty deadline. what i'm telling you to do is what you really want to do. if it's what you really want to do, why do i have to tell you? because titling the toledo propertie before the 5 year expiration of the court order is i'm sure what you really wanted to do, but you did not do it. so that's why i feel i have to tell you to do what you really want to do.
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2 months later, i was very happy when mr. ang's secretary said that mr. ang decided to accept payment. but when i talked to mr. ang, turns out he was asking for the market value for all the titles in his possession. in 2016, mr. ang sent us a demand letter for our P3m debt + interest which totaled to around P6m which means he knows clearly well that the court decision in our case was that mr. ang does not own the properties and we just need to pay him what we owe + interest. how can we trust him to be co-administrator when he does not even respect the decisions of the court?
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------------ PART 2: POLICIES
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i also find it very unprofessional and immoral for mr. ang to claim P43m without even an ounce of evidence. for the last 10 months, the P43m claim caused a lot of stress and anguish to the heirs with frail health and suffering economic poverty. the delays and unpredictability of the schedule of the hearings was torture for them and it really broke my hear to see them suffer. some of their children and grandchildren had to quit college. i was loaning them money for tuition but now i already ran out of funds.
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once we agree on our priority, the next step is to agree on the policies that will help us fullfill our priorities.
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at that time there was no extension of the amnesty deadline yet. it's very obvious to anyone with common sense that mr. ang has no interest in preserving the value of the estate and that his actions would have caused irreparable damage to the estate which would have even be destructive to the claimants including mr. ang himself. how can the good court trust mr. ang to preserve the value of the esate when he does not even have the competence to preserve the value of his claim? luckily the amnesty deadline was extended, atty balili came to our rescue and i had the money to post the P20 million bond to be special administrator so we can sell a property and pay for the estate taxes.
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our policies should be specific and tailored for our needs and priorities. example, of course it's better to impose a full payment instead of 50% down. and if the estate taxes and Ang has been paid, of course we can impose a full payment policy. it is very dangerous to blindly follow general rules and guidelines because it might not suit our specific need or situation. policies should be well defined or else it will just backfire and cause more misunderstandings. policies should be based on merits, facts, and professional advice, not emotions. this prevents disastrous blunders that could TRAUMATIZE THE HEIRS FOR THE REST OF THEIR LIVES if we miss the amnesty deadline.
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your honor, the deadline maybe 1 year and 1 month from now. but the heirs are very concerned because sometimes it can take many months or sometimes even 1 year to find a buyer for the property. yet mr. ang continues his never ending quest to endanger the estate and cause mental anguish to it' heirs by delaying the hearing simply because they did not receive the judicial affidavit that was sent to them registered mail. the administratorship has lots of responsibilities and issues that need to be resolved. he can't even perfrom the very basic task of receiving and reading a document that was sent registered mail.
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here's what i propose. they are arranged according to importance:
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and lastly, with mr. ang's age and the covid still lingering around, and with the many issues and responsibilities of the administrator, it would be dangerous for mr. ang to perform the duties as administrator because it would involve face to face interactions with various buyers, geodetic engineers and brokers. even before the pandemic, many of the heirs don't even know what he looks like or have never seen him after all our history because he is always unreachable.
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- i think the most important policy we need to agree on is our threshold of price tolerance for the first sale. we can afford to be stringent on the appraisal value after we pay our estate taxes and Ang, but on the first sale, i propose our threshold is 25% below the appraisal value. that means if pelaez is appraised at P30m, we should just accept any offer where we get P22m net (limpyo). please read exhibit A to know the common sense way to value a property. let's look at the CONSEQUENCE: example if we sell pelaez at P20m, the consequence is that we save P56.5m in taxes, which means we practically sold pelaez at P76.5m. if we insist on the appraisal value of P25m and the buyer backs out, we lose P56.5m in taxes only because we were trying to daginut P5m. that's just plain stupidity !!!
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= 3/8/22 redemption request and FUTURE PLANS =
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- another policy i think is very important is we should inform the buyers that our policy is whoever is first to give the downpayment that can pay Ang and the estate taxes. and of course the contract or agreement should also be solid. example a buyer approached me saying they are ready to give us a manager's check for P15 million but the full payment happens only after the title is under their name. i told them the full payment should happen before the title is under their name, maybe when all the requirements for transfer of ownership has been met. because if the title is already under their name, they won't need to pay us anymore because the property is already theirs. the buyer never contacted me again. it is also good sale tactic to inform the buyer that another buyer promised to give the downpayment in 2 weeks. this will speed up their action if they really are interested on the property. let's focus on the CONSEQUENCE: example, buyer A offers P30m for pelaez, buyer B offers P25m. buyer A promises to give P20m downpayment next week. but buyer B just calls me telling us they are at BDO bank preparing the manager's checks totaling P12m (50% downpayment) and we should go there so we can sign the contract and immediately cash the checks. we tell them to wait 2 weeks because one of the heirs is out of town (but actually we are waiting for buyer A to give the downpayment). during the 2 weeks, buyer B finds a better property to buy and backs out of our deal. buyer A also finds a better property and backs out of our deal. the amnesty deadline expires. so the consequence is lolo and lola's wishes go down the toilet and you are traumatized for the rest of your life.
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yesterday i followed up our redemption request for tita jane's house and they said the OIC already issued a reply but they still need to process and release it. they got my number and they said they will call me as soon as it's ready.
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- until the estate taxes (including toledo) are paid, our policy is to NOT accept earnest money. unless of course the earnest money is enough to pay the estate taxes (but technically that would already be a downpayment). normally it's the advantage to the seller if the buyer gives an earnest money and backs out because the seller gets to keep the earnest money. but in our case, the CONSEQUENCE is it could cause us to miss the amnesty deadline because we can't entertain any other buyer until the earnest money expires. getting free P1 million earnest money is peanuts compared to having to pay P63m in estate taxes instead of P6.5m. this is another example that it's dangerous to blindly follow general practices. in general, it's smart to accept earnest money. but in our case, it's very very dangerous.
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it is important everyone reads this post because we finally have CLEAR VISIBILITY on the direction of the estate.
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- we should accept a payment term of 1 year. this will give us a wider range of buyers and increases our chances of beating the amnesty deadline. it's foolish to have to pay P63m in estate taxes just because we can't wait 1 year to be fully paid. that's just ridiculous. if you think there are potential dangers for a 1 year payment term, you have to inform the heirs. policies should be based on facts and sound legal advice, not emotions. of course it should say in the contract that when the payment deadline has expired, the contract is null and void and we keep the downpayment. consequence !!! consequence !!! consequence !!!
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as you know our hearing for assignment of regular administrator is march 30 (it was suppose to be september last year but the judge got covid and then typhoon odette disaster happened). the court will publish in the newspaper and give 6 months for all claimants to come forward. which means for sure by october we will have a settlement plan where the main house will be assigned to tita georgia and tito mike, the estate taxes will be paid and we will get all the titles from Ang. note there is already money for estate taxes and Ang which was set aside frome the pelaez sale.
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- heirs should know the status of each of our properties. if you don't follow this policy, the CONSEQUENCE is i don't get to play golf or go rubberboating with my chics because i will have to be the one to talk to the buyer. the most up to date status of each property is in our wiki collaboration site (http://covid19.wiki-site.com/index.php/MundingDida). actually i apologize because i still need to update our wiki because i've been busy with our meetings. i will also update the package folders for each property that contain everything a buyer needs to know so we don't waste time meeting with the buyer for an entire afternoon and the buyer will just back out. the next item is just a sub item of this item but very important for our immediate situation:
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the top candidates for the next sale of property is mambaling (~P30m), guba (~10m) and the 6ha lot 3816 of toledo (~P30m) along the national road. 3816 of toledo may take longer because we won't sell it until the court order on the ejectment of squatters comes out.
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- for properties that are tied up to Ang, we need to tell the buyer or broker this right from the beginning (the CONSEQUENCE for this is it gives the buyer more confidence. transparency + more information = higher confidence) :
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on the next sale of a property, i will set aside money for:
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"The heirs would like to disclose that the the owner’s copy of the title is in the possession of Salvador Ang, who's last message to us was that they are in the process of creating a proposal to return the title. Three years ago Mr. Ang agreed to surrender the title in exchange for P3 million but the heirs did not have sufficient funds. The heirs are confident his proposal will be around the ballpark of P3 million. The heirs are convinced that getting the titles from Ang is just a question of when, and not a question of “if”. Maybe we just need to file a case to get the titles or declare it as lost and request a new one from ROD. If the buyer wishes to verify, the heirs would gladly show the finality or court decision to the buyer’s counsel.
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1) future property taxes of all remaining properties for the next 10 years
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2) funds for maintenance of lola and lolo's plot in queen city for the next 10 years
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3) funds for the topographical and relocation survey of 4143 (10ha), 4126 (32ha) and 4127 (6ha) = P48ha total
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4) funds for fencing (cheap barbwire) of all our properties in toledo
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5) funds for reconveyance of 4143 title
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6) package contract with engr. norvic abella to convert the existing PRIVATE road from mormons to our 4126 to a barangay road.
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There is no reason for any buyer to wait for the owner's copy of the title from Mr. Ang before giving the downpayment. We can stipulate in the contract that the buyer can start using the property, but the full payment should be due once the title is retrived form Mr. Ang and the requirements for transfer of ownership to the buyer are met. If the buyer waits for the title to be retrieved, then the buyer risks losing the property to another buyer who migh be smart enough to do their due diligence and confirms that getting the titles is just a matter of when, not a matter of "if". The worse case scenario for the amount we need to pay Ang is P6m. It cannot exceed P6m. And note the heirs have guaranteed to shoulder the P3m so the worse case scenario is that the buyer will need to give an extra P3m to retrieve the titles. The most likely scenario is that Ang only demands P3m, which means the buyer won't have to pay Ang anything. Mr. Ang is aware that if we file a case, there is a high probability he will have to give up the titles without any payment because they missed a deadline set by the court to submit certain documents. The buyer can setup a meeting with our lawyer, Atty Oscar Tan of the Soza law firm for more details. The bottom line is it's in Salvador Ang's best interest to accept our P3 million offer."
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i haven't done any calculations yet but for now my rough estimate would be around P2m. but as usual everything will be transparent and all accounting will be itemized in our wiki for everyone to monitor.
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- because only tito virgilio has expertise with real estate, and tito virgilio is always busy, we should always simplify our offer by simply saying, "we pay the estate tax and the price is PXXm net or limpyo". the reason is we don't know how much is VAT, notarial fee, capital gains tax, documentary stamp tax, transfer tax, registration fees, etc ... so we really can't be sure how much we will receive. if we don't follow this policy, the CONSEQUENCE is we waste our time and effort meeting for hours to discuss these annoying items when it could easily be simplified such that we get the same in the end. especially if the buyer will just back out in the end. usually the broker will start tricking you that they won't have anything left for their commission. just tell the broker that it's their problem to patung the price he gives the buyer to make room for their comission. the broker would usually try to trick you and say the buyer is already fixed on the price. simply say, "wala man ko ma buhat ana kay decision mana sa mga heirs ug dle man gyud sila mo pa ubos bisan gamay". sometimes the broker will start blurting out technical terms. just politely say, "sorry sir/maam, wala man gud ko kahibaw unsa na. simply lang, ang amo pangayo PXXm limpyo. kamo na bahala mo compute or mo patong sa buyer".
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after consulting with engr. norvic, he suggested i hold off on our right of way mutual MOA with the garces for now because it might jeopardize our request to make the existing road a barangay road. the road that passes through our 4129 and 4128 of garces cannot be converted to barangay road because there is too few residents along the road (just 1 household).
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- another policy we need to agree on to avoid bad blood and legals issues is everyone should agree that 3% be given to the heir who sells any property. example if the current pelaez buyer gives the downpayment, 3% of the sale will be added to tita georgia's share of the proceeds. but the most important policy we should agree on is that tita georgia should use the 3% to buy a jet ski for everyone to use. just kidding. all my friends who bought a jet ski had buyer's remorse because after only 1 day they got sick and tired of the jet ski they wished they just rented and saved tons of money. this brings me to the next policy:
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engr. norvic assured me that there is a 100% chance the conversion to barangay road will be granted because 27ha of our 4126 has been CARPed so there's a huge farming potential. the government will always want a road that lowers the cost of farm goods and not having a road to transport the goods to the market will increase the cost which takes away the incentive to farm. the national goverenment right now is desperately trying to promote and incentivize more farming to increase food security.
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- nobody should buy a jet ski. the consequence for not following this policy is guaranteed buyer's remorse.
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after the surveys, engr. norvic can plot the coordinates of the road and draft a barangay resolution. i already talked to brgy. captain chito alferez and he was very happy because he currently uses the road for his sand and gravel business but he has to pay a toll fee of P200 per truck to the owner of the private road. engr. norvice will also draft the reqest or petition letter that will be signed by the residents who will benefit from the road.
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- another policy i think is very important to avoid conflicts and legal issues is whenever a buyer gives a payment, we ask the buyer to already give us MC's for each heir. and of course the computation should be posted in our chat group and approved by all heirs first. the laws for inheritance and succession is very clear and strict. do not waste your time trying to be a justice warrior because you will surely lose and pay for big damages and litigation cost. you will only create further chaos and emotional trauma to those you swore to help and protect. just accept the reality. anyway the beneficiary is still the dear love one of those you swore to protect. besides those you vowed to protect will still get a considerable chunk of the inheritance.
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what's amazing about this plan is that we won't have to spend for the building, cementing, and maintenance of the road. once it is classified as barangay road, there will be funds for the cementing and maintenance. this will save us millions. note that the current existing private road will cut through the aboitiz lot so it will need to be diverted to the boundary which could cost us a lot of money if we do it ourselves. if we proceed with the road that goes from our 4130/4129/garces to our 4126, it would also cost us a lot because it will have to go over a creek therefore we will have to build a small bridge.
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- always request an LOI (letter of intent to buy) and bank certification on availability of funds. once they give it, email it to all the heirs. but of course continue to answer their questions even if they haven't given an LOI or bank cert. the CONSEQUENCE for not requesting an LOI is there is just a possibility you waste your time answering questions or talking to the buyer even if the buyer is not that serious.
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this will also increase the value of our 48ha (4126/4127/4143) easily by P200/sqm or P100m. we can easily sell the entire 48ha for P400/sqm or P192m. my uncle joe soberano of landmasters is very interested in buying it. that's P21m per line of heir.
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- we should only meet to discuss the buyer's offer after they give an LOI. but of course you should continue to answer questions and the sale can still happen even without the LOI. it would be foolish to not accept a P20m manager's check for the downpayment of pelaez just because the buyer did not give an LOI. the LOI is a good gauge on the seriousness of the buyer but it's not a perfect gauge. it's possible the broker don't want to reveal the identity of the buyer to avoid someone else approaching the buyer and getting the comission. the LOI and bank certification would reveal the identity of the buyer. we must understand that brokers are just human beings like us working hard to feed their family and send their kids to school. we must be compassionate to fellow human beings because it's the core teaching of Christ. the broker for mambaling let me sign an authority to sell, but i notice that the name of the agent named joy deleon was not in the ATS. joy was the first to approach me. i told the broker he needs to give joy her share that they agreed upon. the broker told me agents have no legal claim and it should be ok to not include them on the deal. i told the broker that i will not sign the contract unless one of the MCs goes out to joy. i let him know that for me, principles are more important than money. that day, joy called me up to thank me and told me God will reward me for my good heart.
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of course you can do whatever you want with your money but my suggestion is to use P2m for enjoyment then use the rest to build a 3 storey munoz style bedspacing building on your lot at the compound or in mactan. note that if the judge vagano decides that atty tan would be paid in cash instead of the mactan lot, we will subdivide mactan among the 9 line of heirs. this would provide economic security for many generations to come and lolo and lola's dream will finally come true.
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- we should not insist on revealing the identity of the buyer. again. focus on the CONSEQUENCE. why the hell would we care who the buyer is, as long as they will pay us? policies should be based on merits, not emotions. of course it's ok to ask for the identity of the buyer. but if the broker refuses, should we stop dealing with them? that would be plain stupidity because it's very possible that buyer could have been our ONLY HOPE to beat the amnesty deadline. focus on the consequence, guided by our priorities.
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i will be the GUINEA PIG and document everything including where i bought the nails, which government official i bribed to get the permit, how to mcgyver a motorized cart that will efficiently transport the hollow blocks and cement from the main road to our mactan lot (note there is no right of way), etc ... etc ... if i succeed, that means your risk and pitfalls are minimized by simply following my documentation to the letter. if i fail and i lose millions you can all just laugh at me and invest your inheritance safely by buying ready made townhouses for rental income.
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- we should pay attention to the issues raised by the buyers regarding our property and try to address them. example, for many years we've been trying to sell mambaling but nobody ever bothered to have the right of way annotated on the title, which turns out to be a prerequisite before mambaling can be sold. i'm not a real estate expert and knew nothing about right of ways or titles. i simply listened to the buyer and worked hard to get things done.
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note we will push through with the subdivision development of 4130/4129 (3.5ha) and 4126/4127/3820 (8ha). our partner is aroha land (office is in andres abellana) and we get 40% and they get 60% of all the sales. we are still waiting for the subdivision plan and titling of 4130 (.38ha) which should be expected to come out by the end of the year so the architect can start the design. this is more of a symbolic decision so that there will be a street named after lolo, lola and each direct heir.
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- whenever someone posts something in our chat group, we must all read, try to understand, and ask questions if there is something we don't understand. this avoids wasting time and prevents unecessary conflicts. i don't know why i even need to add this policy. all educated people know that communication is the key to the success of any group or organization. example in the meeting we had to waste time discussing issues that's been resolved long time ago such us gikom's talamban townhouse and tita jane's house being in the lolo's list of holdings.
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now that we have a clearer visibility on the direction of the estate, it's now easy to see the big picture to help us make better decisions. this means if the best offer for our next sale of property is let's say P3m less than what we want, we should still go ahead with the sale because it will equate to easily P100m increase of our entire estate if we have the funds to survey and fence all our toledo properties and convert the existing private road into a barangay road.
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- we must never burn bridges or quarrel with any person who we need or might need to accomplish our goals. that includes lawyers, government workers, engineers, etc ... example, i paid mobilization fee to atty atup but i'm still doing all the leg work. i never say anything about it and just keep thanking them and being grateful for their very valuable advice. you might think i have the right to complain but it could alienate the lawyer and delay the transfer of ownership of the toledo lots, and the CONSEQUENCE is we could miss the amnesty deadline and have to pay P30m in estate taxes for toledo instead of just P1.5m. don't just do what is right, instead do what is necessary to accomplish our goal which is to make lola, lolo, tito gerry and tito bertie smile upon us from heaven.
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* ---------------------
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- money is what gets things done. not emotions. influence also gets things done but keep in mind we don't have family members who hold high office anymore. this is why i never hesitate to give lawyers and fixers large incentives, even if some of you have expressed your disapproval of my strategy. i was embarassed to know engr norvic did a relocation survey for toledo but we never paid him.
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the rest of this post is not important so you can just skip it if you are not interested:
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- we should consider all our meetings and communication like it's a bull session or brain storming, which is an effective tool to understand each other better and come up with the best ideas that can be critical to meet our goals and priorites. in bull sessions and brainstormings, the rule is that nobody should be afraid to say anything. although saying the wrong thing could hurt someone's feelings, not saying something that's in your mind could be more dangerous because we might miss an idea that could be the key to accomplish our objectives and priorities. another rule for bull sessions and brainstorming is we should be THANKFUL when we receive CONSTRUCTIVE CRITICISM. no human being is perfect and for us to improve, we should encourage people to criticize us.
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after the barangay road is approved and the property has been surveyed and fenced, we can start analyzing and planning how we can monetize the property before selling it. we can quarry and supply clay to APO cement. i did some research and calculations and my estimate is we can earn around P20m in a span of 1 year and 3 moths if we get a permit. note that the barangay captain and the brother of the mayor of toledo tried to be our contractor to haul the clay and both of them tried get the permit but both of them were denied because carmen copper currently has the mining rights even if it's our property. however i know the pages side of my mom's family is the original holder of the mining rights and atlas mining has been paying them royalties ever since. i also know they have close connections with the executives and board of atlas and carmen copper. i play golf with my pages uncles regularly so when the time comes i will ask if they can influence some decision makers to grant us a permit.