MundingDida

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= Important Highlights =
= Important Highlights =
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* the total estate tax (minus 52 ha of toledo) is P6.5M. the deadline amnesty deadline is june 14, 2021
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* the total estate tax (minus 52 ha of toledo) is P6.5M. the deadline amnesty deadline is june 14, 2021. after the amnesty, our estate tax will be a whopping P63M.
* [[PrioritiesPolicies|click here to view our proposed priorites and policies that ian thinks can guide us in better accomplishing our goals]]
* [[PrioritiesPolicies|click here to view our proposed priorites and policies that ian thinks can guide us in better accomplishing our goals]]
* each of the 9 heir will get P17M if all common properties get sold at current market value
* each of the 9 heir will get P17M if all common properties get sold at current market value
** minus toledo, each heir only gets P6M
** minus toledo, each heir only gets P6M
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* [[IansMessages|click here to read ian's important messages and updates]]
= Status of Properties =
= Status of Properties =
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=== mambaling ===
=== mambaling ===
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* 1/19/21: 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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* 1/19/21: the broker for mambaling buyer told ian 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. ian told him we will try but doubt it's possible because we can only be granted the right of way that was in the deed of sale. ian 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 on 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 the residents have to pass by heir property. the broker agreed with ian's opinion.
* 1/18/21 status: atty gines says the right of way hearing will be publised this week. if the hearing is published, after 3 weeks, the title will be annotated because he guaranteed we will win. a buyer is offering us P30m net and is just waiting for the title to be annotated to give the 50% down payment. full payment is monthly for 1 year.
* 1/18/21 status: atty gines says the right of way hearing will be publised this week. if the hearing is published, after 3 weeks, the title will be annotated because he guaranteed we will win. a buyer is offering us P30m net and is just waiting for the title to be annotated to give the 50% down payment. full payment is monthly for 1 year.
* [[MambalingStatus|click here to read the status of mambaling as of 12/18/20]]
* [[MambalingStatus|click here to read the status of mambaling as of 12/18/20]]
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* the lawyer of the buyer said the sale is only possible through the corporation if the title is tansferred under the name of the corporation. this will take long and very expensive because we need to pay capital gains with 30 years penalty (P3 million). that means we should just sell mambaling via the extrajudicial.
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* there is a deed of assignment to DC crystal realty corp. in 1992. note lawaan was sold via DCCI which was dissolved. however, DC crystal realty corp was reconstituted in 2012. this might sound like good news because we can sell mambaling with just a majority vote. unfortunately, unlike lawaan, mambaling has not yet been transfered to the corporation. it has to be transfered first before we can sell with majority vote. to do the transfer, we will need to pay capital gains tax plus 30 years penalties which could amount to P3m. the smart thing to do is just sell mambaling via the extrajudicial so we only need to pay estate taxes of which there is an amnesty. if not all heirs will sign the sale of any property, a majority of heirs have agreed to file for administratorship so properties can be sold requiring only majority vote and approval by the court. the advantage of administratorship it's safe and bonded and funds can only be released by the approval of the court. the administrator also has to submit an inventory and accounting.
* this is the only property that has a clean title so we are aggressively trying to sell it so we can beat the amnesty deadline
* this is the only property that has a clean title so we are aggressively trying to sell it so we can beat the amnesty deadline
* ------------------------------------------------------------------- the following are out of date and are retained for historical purpose --------------------------------------------------------------------------------------------------
* ------------------------------------------------------------------- the following are out of date and are retained for historical purpose --------------------------------------------------------------------------------------------------
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* <p>doris has a buyer who we've been meeting with for about a year. the last meeting was on feb 14 where the buyer told us not to worry because they are surely gonna buy if it's still available but they are just waiting to finalize the 3k+ sqm lot purchase beside our lot (whose owner resides in the states that's why it's taking more time than they expected) because our lot is kinda like trapped so they will only buy our lot after they buy the lot beside it. they said it probably will just take a few more weeks but for sure they will buy it. he also said that it's ok if another buyer gets it first because the 3k lot beside is good enough but it's just much better for their business (rice trading warehouse) if they also get to buy our lot. ian told him once we get a computation for our inheritance tax then we can tell him the down payment we need in case his funding is just delayed but they can already afford to give us the down payment (note we also have to add the P3M for Ang). ian told him after he gives us the down payment we need then we can give him more time to secure the funding for the rest of the payment (which will be indicated in the deed of sale).</p>
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* 2/13/20: doris also has another buyer. virgilio, jane, georgia, doris and ian met with 2 representatives of the buyer (paul brionnes, jose delgado). the reps inspected the title and concluded the title was clean. the reps advised that we remove the levy stamp on the tax dec to avoid worrying the buyer. jane georgia and jane went to city hall get the levy lifted where we were graciously assisted by the valuable connections that ian established during the redemption of pelaez.
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** done (buyer backed out) the next meeting is on feb 27. doris will text me, georgia and virgilio once the time and place is finalized (postponed indefinitely)
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** virgilio and jane suspected the lady sitting on the next table (the wife of one of the reps) was recording our conversations and advised ian not to meet with them anymore. ian vehemently argued that it's a very dangerous judgement because if we are wrong about our suspicion and they happened to be our only chance to get mambaling sold, then we might not beat the amnesty deadline if nobody else buys any of our properties only because of our paranoia. if virgilio happens to be right that they were scammers, we really have nothing to lose because there is nothing they can do to scam us according to atty mark.
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* doris also has another buyer. virgilio, jane, georgia, doris and ian met with 2 representatives of the buyer (paul brionnes, jose delgado) on 2/13/20. the reps inspected the title and concluded the title was clean. the reps advised that we remove the levy stamp on the tax dec to avoid worrying the buyer. jane georgia and jane went to city hall get the levy lifted where we were graciously assisted by the valuable connections that ian established during the redemption of pelaez.
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** ian and georgia met with paul again who requested the right of way be annotated on the title. georgia said it would be impossible because the heirs of de la cerna haven't paid the estate taxes. but ian said he will still give it a try because we have nothing to lose if we try and fail.
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** the reps also claimed they have connections that can hasten the titling of a property and it only takes 1-2 weeks and it only costs P5-10k. although probably there was a misunderstanding they probably meant transferring ownership of an existing title while ian meant partitioning a property and issuing new titles ([[#Partition Alternative|Partition Alternative]])
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** virgilio and jane suspected the lady sitting on the next table (the wife of one of the reps) was recording our conversations and advised ian not to meet with them anymore. ian vehemently argued that it's a very dangerous judgement because if we are wrong about our suspicion and they happened to be our only chance to get mambaling sold, then we could lose everything (P170M in properties) only because of our paranoia. mambaling is our only chance to beat the amnesty deadline and avoid having to pay P37M. and if virgilio happens to be right that they were scammers, we really have nothing to lose because there is nothing they can do to scam us even if we intentionally try to let them scam us. ian consulted with atty mark he said unless ian has and SPA from all 9 heirs, there really is nothing they can do to scam us.
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** we met again on 2/19/20 (ian, doris, georgia, paul, jose)
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*** ian asked for the LOI (letter of intent) because it's what virgilio requires from any buyer. paul said the purpose of the meeting was to negotiate the price so they can request the LOI from the buyer
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*** paul said they found 2 other buyers aside from the british but for now they are focusing on the british (with filipina wife) because the british is also buying the lot beside ours so the 2 properties combined will now be along avocado street. paul said our lot alone will be harder to sell because our right of way only goes to cashmere st which means to go to the main highway you will have to go around (cashmere - elordo - avocado - highway).
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**** ian thinks paul has a valid point because imagine if you buy our property to put up a warehouse where trucks come in and out many times a day, this could be factor. same with a residential condo - the residents would probably prefer just walking short cut to avocado to catch a jeepney instead of having to go around.
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*** georgia contended that the right of way is not an issue because of the 94sqm access that we purchased. doris showed the deed of sale and the map but the map did not show where th 94sqm was exactly located. paul said the deed of sale was vague because it didn't contain the dimensions. paul advised us that although the 94sqm is not an issue for the british it might be an issue for other buyers who won't buy the lot beside ours that goes all the way to avocado st. he says a buyer would only be convinced that the 94sqm is ours if we show it is annotated on the title that contains the lot. georgia said it's not yet annotated. paul said if have it annotated we probably will have to pay the capital gains tax since 1993 so it will incur a huge penalty. paul suggested we work with the heirs of the seller (isaac de la cerna) to create a new deed of sale to lower the capital gains tax. georgia and doris said we tried in the past but they won't cooperate. ian said of course they won't cooperate because they have nothing to gain but if we give them money i'm sure they will. ian asked paul that if he were in our shoes, how much he would offer the isaac's heirs. paul suggested P100k. but ian computed the capital gains tax using the 1993 estimated zonal value + 17 years penalty it only amounted to P23k so might as well use the original deed of sale.
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*** georgia told them that P30M is the lowest we can go. paul said they might go with P30M if we pay the capital gains tax and commission, which would total around P2.5M so we only get P27.5M net. paul said this is just the worst case scenario but it's still possible the buyer would go with our initial asking price of P30M.
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*** after the meeting, ian told georgia he will explore the possibility of having the 94sqm annotated on the title. georgia said it would be impossible because the heirs of de la cerna haven't paid the estate taxes. but ian said he will still give it a try because we have nothing to lose if we try and fail.
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*** when ian got home, he looked at the requirements to have the title annotated and realized isaac will have to rise from the dead (we need his TIN, his 2 govt issued IDs, owner's copy of the TCT and official deposit evidencing receipt by the owner). so paul was right after all - we need to give the heirs P100k for them to cooperate and create a new deed of sale for the 94sqm.
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*** ian called paul to ask why the 94sqm ownership is an issue when there is a right of way easement law anyway? paul said we might be given a right of way that is not favorable, example they might give us the one that goes through the smelly squatter's area. ian went to mambaling to inspect and discovered the only possible right of way access is the 94sqm. the narrow foot pass access along the squatters area is too long and too many homes will have to be demolished. ian googled the easement law and found out there is no required width but it is according to the required needs. in this case a large truck should be able to pass by if we declare the property will be for a warehouse. the 94sqm immediately connects to a road 7m wide. currently a car garage is on the 94sqm and blocking access. doris will work with the baranggay to have this garage demolished</span>: <span style="background: rgb(255,165,0)">[[MambalingRightOfWay|click here to view the status]] (this task has been changed to petitioning for right of way)
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* (done - not possible) doris will ask bebing which among isaac's heirs is the most approachable (non combative). then inform the heir that if they cooperate, we will create a written agreement to give them money once our lot is sold. and upon the signing of the deed of sale we will give them an advance of P50k. if they won't cooperate, we will still end up getting the 94sqm anyway because it's the law plus we have the deed of sale, it will just take us time because we will need to sue in court and we have to hire a lawyer. so they might as well cooperate and get lots of money. georgia said they haven't paid their estate tax. if this is true, we will offer to help them do the leg work and even make a deal that if mambaling is sold we will pay half of their estate tax. give them an estimate of their humongous savings if they beat the tax amnesty deadline. based on the sketch map, ian estimated that their lot is just a little less than 1/3 of ours so around 700sqm. so for example, assuming isaac died year 2000, zonal value is P4k/sqm = P2.8M X 6% (flat amnesty rate) = P168k. if they don't beat the amnesty deadline, it will be P223k (tax table) + (20% penalty for 20 years: P892k) + (P110k surcharge) = P1.2M. but note that if the british buyer pushes through, then this won't be an issue because he is also buying the lot beside ours that will give him a frontage to avocado st. ian predicts that if the sale with the british where to happen, it will happen before the signing of the deed of sale with isaac heirs.
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* [[MambalingRightOfWay|click here to view the important task from virgilio for tiyo dodong's buyer]]
* [[MambalingRightOfWay|click here to view the important task from virgilio for tiyo dodong's buyer]]
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* ian would like to suggest to the family that as the amnesty deadline nears, we should start softening our stance on the price. example maybe when it's january of 2021 (6 months before amnesty deadline) we should not gamble anymore and just accept a P25M offer or else we end up paying P34M more in inheritance tax and if we can't pay it all the properties will be confiscated.
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* jane will not allow ian to meet with any buyer without the presence of virgilio and georgia. ian argued this will be a huge hindrance to his efforts because georgia is always in camotes and virgilio never replies to his text messages and answers his calls.
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* ian's next blitz is to find a buyer for mambaling - wake up early in the morning and work hard the whole day to find a buyer - post in all real estate websites, approach as many brokerage companies/realtors and ask all his potential friends. however jane will not allow ian to meet with any buyer without the presence of virgilio and georgia so this will be a huge hindrance to his efforts because georgia is always in camotes and virgilio never replies to his text messages and answers his calls.
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* in case mambaling is not yet sold and the amnesty dealine is near (about 6 months left), ian suggests we take out a bank loan where we collateral mambaling.
* in case mambaling is not yet sold and the amnesty dealine is near (about 6 months left), ian suggests we take out a bank loan where we collateral mambaling.
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* there is a high chance the right of way will be annotated in the title soon. click on this link to view the details and latest status from ian: [[StatusMarch16|click here to view 3-16-20 status]]
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* atty tan and rey claimed the papers are ready to sell mambaling via the corporation. but ian noticed that unlike the lawaan titles, the mambaling title was assigned to DC crystal realty corp and not DCCI. ian found a partially filled (incomplete) DC Crystal Realty corp application dated 2013 with angie as the requester. ian immediately asked angie if the application was ever completed and submitted but angie replied she doesn't remember. ian lost hope and assumed it was never completed. that day ian was scheduled to fly to the US and did not have time to go to SEC to verify. when ian arrived 6 weeks later (1/17/20) he immediately tried to get a GIS for DC Crystal Realty Corp and it turns out the corp was reconstituted in 2013 with all the 9 heirs as shareholders. BINGO !!!
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** another option is to mortgage pelaez to ian at the amount equal to (inheritance tax of all properties + P3M (Ang)) at 6% interest and redeem it once mambaling is sold
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* mambaling has a deed of assignment to DC Crystal Realty Corp in 1992. therefore this property can be sold without going through the extrajudicial process. but there are/were minor issues:
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** while everyone was looking for a buyer, believing the sale will be without problems, ian studied all the crystal documents and noticed the deed of assignment was to DC Crystal Realty Corp. but the current corporation was DC Crystal Inc. (which was used in the Lawaan sale). ian also noticed that only lolo and lola were the shareholders in the attached articles of incorporation. ian immediately went to atty oscar to question this and atty oscar said we can't sell through the corporation meaning it has to be included in the extrajudicial. ian then saw a partially filled (incomplete) DC Crystal Realty corp application dated 2013 with angie as the requester. ian immediately asked angie if the application was ever completed and submitted but angie replied she doesn't remember. ian lost hope and assumed it was never completed. that day ian was scheduled to fly to the US and did not have time to go to SEC to verify. when ian arrived 6 weeks later (1/17/20) he immediately tried to get a GIS for DC Crystal Realty Corp and it turns out the corp was reconstituted in 2013 with all the 9 heirs as shareholders. BINGO !!!
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** the next issue was that ian saw a document stating the capital gains tax was never paid and that means mambaling has not yet been transferred to the corp. ian got a certified true copy of the title from georgia and asked atty oscar to review the encumbrances. atty oscar concluded the capital gains hasn't been paid and for us to sell via the corp, we need to first pay the capital gains/transfer tax. ian asked what's the rough estimate but atty oscar can't give one he only said it's going to be very big because of the penalties (since 1992). ian asked if P10M is a possibility and atty oscar said it's possible. atty oscar said it would be much cheaper if we sell via the extrajudicial because we only have to pay the inheritance tax which now has an amnesty. he said capital gains has no amnesty. ian went to city hall in hopes of getting an estimate but they also can't give one. ian then googled it and found out the capital gains is only around P585k including penalties (6% + 25% surcharge + 20% penalty for 28 years). transfer tax is only P17.5k including penalties. ian also found an article stating that capital gains was part of the tax amnesty and we only have to pay 40% of what we owe (https://www.bakermckenzie.com/en/insight/publications/2019/02/tax-amnesty-act-approved-by). if this is true, we only have to pay 585(.4) = P234k. however, ian asked the runner he is hiring to process the inheritance tax <span style="background: rgb(0,255,0)">(manoy eddie) to also have the capital gains tax computed</span> in case we need to sell mambaling via the corporation because the extrajudicial has unforeseen issues.
** the next issue was that ian saw a document stating the capital gains tax was never paid and that means mambaling has not yet been transferred to the corp. ian got a certified true copy of the title from georgia and asked atty oscar to review the encumbrances. atty oscar concluded the capital gains hasn't been paid and for us to sell via the corp, we need to first pay the capital gains/transfer tax. ian asked what's the rough estimate but atty oscar can't give one he only said it's going to be very big because of the penalties (since 1992). ian asked if P10M is a possibility and atty oscar said it's possible. atty oscar said it would be much cheaper if we sell via the extrajudicial because we only have to pay the inheritance tax which now has an amnesty. he said capital gains has no amnesty. ian went to city hall in hopes of getting an estimate but they also can't give one. ian then googled it and found out the capital gains is only around P585k including penalties (6% + 25% surcharge + 20% penalty for 28 years). transfer tax is only P17.5k including penalties. ian also found an article stating that capital gains was part of the tax amnesty and we only have to pay 40% of what we owe (https://www.bakermckenzie.com/en/insight/publications/2019/02/tax-amnesty-act-approved-by). if this is true, we only have to pay 585(.4) = P234k. however, ian asked the runner he is hiring to process the inheritance tax <span style="background: rgb(0,255,0)">(manoy eddie) to also have the capital gains tax computed</span> in case we need to sell mambaling via the corporation because the extrajudicial has unforeseen issues.
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* however atty oscar advised selling mambaling via the extrajudicial because it would be much simpler and we only have to pay the inheritance tax (7.5% at the time of death (6% + 1.5% doc stamp)). ian assumes the market value in 2002 (time of lolo's death) was 30% of what it is now so it's around P10M so 7.5% of it is P750k (not much difference from capital gains tax) contrary to atty oscar's guess.
 
=== pelaez ===
=== pelaez ===
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* [[ToledoStatus|click here to read the status of toledo as of 12/18/20]]
* [[ToledoStatus|click here to read the status of toledo as of 12/18/20]]
* ian has a copy of sketch plan/map
* ian has a copy of sketch plan/map
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* according to angie, we should <span style="background: rgb(0,255,0)">follow up from NPC because they still need to pay us for the electric towers and it could be worth millions. this needs to be asap because there is a good probability NPC might close soon.</span>
 
* the following lots don't show up in the certified list of holdings of lolo and lola. atty oscar told ian we will still include these in the extrajudicial (these were not included in the 2014 extrajudicial draft). ian gave the a copy of the finality of the toledo case because atty oscar will need it for the extrajudicial
* the following lots don't show up in the certified list of holdings of lolo and lola. atty oscar told ian we will still include these in the extrajudicial (these were not included in the 2014 extrajudicial draft). ian gave the a copy of the finality of the toledo case because atty oscar will need it for the extrajudicial
* atty camiso is our lawyer for the toledo properties
* atty camiso is our lawyer for the toledo properties

Revision as of 02:59, 20 January 2021

  • Note: a backup copy of each wiki page is in https://reyondit.blogspot.com/2020/02/reyonditwiki-sitecom-backup-wiki-format.html, in case this wiki site goes out of business
  • to learn how to use wiki click: here
  • the purpose of this wiki is transparency which avoids misunderstandings and conflicts which has plagued the family in the past
  • note atty oscar tan and atty camiso belongs to the sosa firm. atty oscar is the son in law of the late atty francis soza.
  • manoy eddie (julius arciete) is a runner ian hired to help us expedite the inheritance tax processing. he also has friends in the BIR that might give us a favorable compromise on the estate tax
  • color code:
    • super critical (we could lose everything if not done)
    • critical (gating item or prerequisite of a super critical task)
    • important
    • assigned task
    • unassigned task - anyone can volunteer


Contents

Important Highlights

Status of Properties

Status Table

status table
property est. value area title# taxdec# property tax status
mambaling P30M (P12.5k/sqm) 2,369sqm 21604 GRC6-09-064-00095 ??? sell before 4/20/21 amnesty deadline
pelaez P20M (P39k/sqm) 510sqm 10123,10124 GRC6-5-35-00358/9 P27k titles w/ Ang(details), earning P40k/month
guba P11M (P300/sqm) 37,049sqm oct 263 GRC6-01-006-00863/4 ??? titles w/ Ang(details)
toledo P120M (P200/sqm) 59ha various various  ??? details
compound water tank P360k (P20k/sqm) 18sqm none C011535 62 ??? beside water tank.
compound entrance P1M (P20k/sqm) 48sqm T-59753 GRC6-08-062-11548 ??? occupied by mely familytitle w/ Ang (details)
  • total: ~P182M - P3M (payable to ang) - P2.5M (ian's guess on inheritance tax) - P1.375M (ian's pelaez redemption) =~ P174M / 9 heirs =~ P19M/heir
    • without toledo, the total is P51.5 / 9 heirs =~ P6M / heir
  • as of 12/13/20 all the property taxes of all properties has been paid and up to date. georgia has all the records and tax clearances
  • the following properties will appear in the extrajudicial but is not part of the common property of the 9 heirs:
    • main house: 1,323 sqm
      • (owned by mike and georgia)
    • mactan lot: 1,655 sqm click here for complete status
    • front lawn of main house (300+ sqm)
      • (this has also been given to the sosa firm as payment for recovering the main house from BPI)
    • pagina san nicolas: 193 sqm
      • (it was lolo's wish to give this property to her dear sister tiya rosa)
  • the following properties have been sold:
    • lawaan I (talisay): P10M (1,819 sqm, P5.4k/sqm)
    • lawaan II (talisay): P10M (1,819 sqm, P5.4k/sqm)
      • (lawaan I and II did not need an extrajudicial/payment of inheritance tax because it was already assigned to DC Crystal Inc in 1972)
      • (the sale of a corporate property only requires a majority vote)

Details

mambaling

  • 1/19/21: the broker for mambaling buyer told ian 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. ian told him we will try but doubt it's possible because we can only be granted the right of way that was in the deed of sale. ian 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 on 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 the residents have to pass by heir property. the broker agreed with ian's opinion.
  • 1/18/21 status: atty gines says the right of way hearing will be publised this week. if the hearing is published, after 3 weeks, the title will be annotated because he guaranteed we will win. a buyer is offering us P30m net and is just waiting for the title to be annotated to give the 50% down payment. full payment is monthly for 1 year.
  • click here to read the status of mambaling as of 12/18/20
  • there is a deed of assignment to DC crystal realty corp. in 1992. note lawaan was sold via DCCI which was dissolved. however, DC crystal realty corp was reconstituted in 2012. this might sound like good news because we can sell mambaling with just a majority vote. unfortunately, unlike lawaan, mambaling has not yet been transfered to the corporation. it has to be transfered first before we can sell with majority vote. to do the transfer, we will need to pay capital gains tax plus 30 years penalties which could amount to P3m. the smart thing to do is just sell mambaling via the extrajudicial so we only need to pay estate taxes of which there is an amnesty. if not all heirs will sign the sale of any property, a majority of heirs have agreed to file for administratorship so properties can be sold requiring only majority vote and approval by the court. the advantage of administratorship it's safe and bonded and funds can only be released by the approval of the court. the administrator also has to submit an inventory and accounting.
  • this is the only property that has a clean title so we are aggressively trying to sell it so we can beat the amnesty deadline
  • ------------------------------------------------------------------- the following are out of date and are retained for historical purpose --------------------------------------------------------------------------------------------------
  • 2/13/20: doris also has another buyer. virgilio, jane, georgia, doris and ian met with 2 representatives of the buyer (paul brionnes, jose delgado). the reps inspected the title and concluded the title was clean. the reps advised that we remove the levy stamp on the tax dec to avoid worrying the buyer. jane georgia and jane went to city hall get the levy lifted where we were graciously assisted by the valuable connections that ian established during the redemption of pelaez.
    • virgilio and jane suspected the lady sitting on the next table (the wife of one of the reps) was recording our conversations and advised ian not to meet with them anymore. ian vehemently argued that it's a very dangerous judgement because if we are wrong about our suspicion and they happened to be our only chance to get mambaling sold, then we might not beat the amnesty deadline if nobody else buys any of our properties only because of our paranoia. if virgilio happens to be right that they were scammers, we really have nothing to lose because there is nothing they can do to scam us according to atty mark.
    • ian and georgia met with paul again who requested the right of way be annotated on the title. georgia said it would be impossible because the heirs of de la cerna haven't paid the estate taxes. but ian said he will still give it a try because we have nothing to lose if we try and fail.
  • click here to view the important task from virgilio for tiyo dodong's buyer
  • jane will not allow ian to meet with any buyer without the presence of virgilio and georgia. ian argued this will be a huge hindrance to his efforts because georgia is always in camotes and virgilio never replies to his text messages and answers his calls.
  • in case mambaling is not yet sold and the amnesty dealine is near (about 6 months left), ian suggests we take out a bank loan where we collateral mambaling.
  • atty tan and rey claimed the papers are ready to sell mambaling via the corporation. but ian noticed that unlike the lawaan titles, the mambaling title was assigned to DC crystal realty corp and not DCCI. ian found a partially filled (incomplete) DC Crystal Realty corp application dated 2013 with angie as the requester. ian immediately asked angie if the application was ever completed and submitted but angie replied she doesn't remember. ian lost hope and assumed it was never completed. that day ian was scheduled to fly to the US and did not have time to go to SEC to verify. when ian arrived 6 weeks later (1/17/20) he immediately tried to get a GIS for DC Crystal Realty Corp and it turns out the corp was reconstituted in 2013 with all the 9 heirs as shareholders. BINGO !!!
    • the next issue was that ian saw a document stating the capital gains tax was never paid and that means mambaling has not yet been transferred to the corp. ian got a certified true copy of the title from georgia and asked atty oscar to review the encumbrances. atty oscar concluded the capital gains hasn't been paid and for us to sell via the corp, we need to first pay the capital gains/transfer tax. ian asked what's the rough estimate but atty oscar can't give one he only said it's going to be very big because of the penalties (since 1992). ian asked if P10M is a possibility and atty oscar said it's possible. atty oscar said it would be much cheaper if we sell via the extrajudicial because we only have to pay the inheritance tax which now has an amnesty. he said capital gains has no amnesty. ian went to city hall in hopes of getting an estimate but they also can't give one. ian then googled it and found out the capital gains is only around P585k including penalties (6% + 25% surcharge + 20% penalty for 28 years). transfer tax is only P17.5k including penalties. ian also found an article stating that capital gains was part of the tax amnesty and we only have to pay 40% of what we owe (https://www.bakermckenzie.com/en/insight/publications/2019/02/tax-amnesty-act-approved-by). if this is true, we only have to pay 585(.4) = P234k. however, ian asked the runner he is hiring to process the inheritance tax (manoy eddie) to also have the capital gains tax computed in case we need to sell mambaling via the corporation because the extrajudicial has unforeseen issues.

pelaez

  • 1/18/21 status: there are 2 interested buyers, each offering P25m net. both are waiting for the titles from Ang.
  • this was at the brink of being auctioned because property tax has not been paid since 1982. ian volunteered to redeem it at P1.375M on 11/19/19. click here to view Payables to Ian. in the event mambaling is not sold and the amnesty deadline is fast approaching and we resort to loaning from a bank, jane promised ian that the rent from pelaez will go to him to start paying him.
  • however this property has been mortgaged to Salvador Ang and we need to pay him P3M to:
    • 1) get back the title and
    • 2) remove the lis pendens on the title so we can pay inheritance tax and beat the amnesty deadline
  • pelaez is earning around P40k a month
    • it has total 6 units but only 2 units are habitable and rented out
    • 2 units need repair
    • 1 unit can't be rented out because the electric connection is being illegally tapped and georgia is afraid the perpetrators might do harm to her if she tries to put an end to it. if you can help the family resolve this issue, contribute your time and effort.

    • jane is the administrator. the funds are used to pay the property taxes and occasionally paying out dividends to the heirs
    • jane will update us monthly on the balance and summary of expenses and ian will post it here: click here to view PelaezReport

guba

  • also mortgaged to Ang
  • located in the outskirts of balamban
  • (resolved) ian to question atty oscar why the first draft of the extrajudicial only included the 11,819 sqm portion and the 25,230 sqm portion was excluded
  • doris claims the city government is interested in buying guba for P100/sqm (P3.7M) but georgia argues that it's too cheap because communities are starting to form near the area. mayor jojo thinks P300/sqm (~P10M) should be a good price to sell it. ian confirms this because he has some scholars who used to live in the now demolished slum areas in the city and their families were relocated around this area.

toledo

  • 1/18/21 status: 7ha (lots 3816, 3816, 4130-E,3820) are included in the first extrajudicial because tax decs are under lolo's name. 52ha is still being transferred by atty louie santos so we can pay the estate taxes before the amnesty deadline in june 14. there is a 2006 court order to title all our toledo properties in favor of lolo, but court orders expire after 5 years so atty atup has to file a case to have them titled. ian is having toledo DENR CENRO to project the land classification of 4126 so we can know the zonal value and TRANSCO can pay us the 3ha they used for the power lines. however, if the zonal value is less than P150/sqm, we will refuse the TRANSCO payment so we can sell the entire property for a bigger price. but note that if it is classified as forest timberland, we won't get paid because it's considered imminent domain. currently there is a buyer interested in the 38ha of 4126 and 4127 for P150/sqm or P57m. the buyer is planning to turn it into a motorcross trail park. DAR says landbank should be able to give us their assessment of the 27ha of 4126 that was CARPed. however, we are confident we will get back the 27ha because it is 18 degree slope and landbank will not pay for any property above 18 degree slope. if landbank will not assess it as 18 degree slope, ian will hire engr norvic abella to do a topographical survey which will cost around P285k, and we will ask atty atup to file a case to recover it. however if the payout is at least P100/sqm or P27m, we will take it.
  • click here to read the status of toledo as of 12/18/20
  • ian has a copy of sketch plan/map
  • the following lots don't show up in the certified list of holdings of lolo and lola. atty oscar told ian we will still include these in the extrajudicial (these were not included in the 2014 extrajudicial draft). ian gave the a copy of the finality of the toledo case because atty oscar will need it for the extrajudicial
  • atty camiso is our lawyer for the toledo properties
status table
lot# area title# taxdec# property tax status
4126-prt 32.6867ha none 426,427,429,431,432,433,5807  ??? 27.8597ha was carped.claim payment from land bank
4143 9.8151ha t-564 none  ??? ??? mango trees. officially ours but 8 families squatting
4127 6.0188ha none 98-149016-04546  ???
4129 3.5884ha 113-2013000289 96-149028 P5,714.76 tax dec has no title#manoy eddie requesting assessor to add title# on tax dec
  • total: 49.7165ha
  • ian went to land bank to claim the payment for the CARPed portion of 4126. they had no records so ian went to DAR office near sto nino. ian asked the officer (atty guanzon) why until now DAR has not processed the payment we should be receiving from land bank. she said it's because until now nobody in our family has given them the status of case t-215 that they requested via a letter sent on feb 12, 2014 (which ian had with him). ian checked all the toledo documents and did not find any document for case t-215. so ian messaged jane asking for approval to pay a runner P3k to go to toledo and dig up the decision for case t-215. before texting the runner, good thing ian browsed througheach page of the very thick toledo court documents hoping in mentions t-215. ian got lucky because in the decision of t-381 there was a sentence saying case t-215 was dismissed. the following day ian gave atty guanzon a copy of t-381 decision and pointed to her the sentence that said t-215 was dismissed. perseverance is the moral of this story.
  • ian also questioned why there is a document from DAR stating that 4143 was "placed under a government financial institution". the officer said it was probably mortgaged and since the mortgage was not paid it was probably CARPed. to verify they will have to dig up the records and she asked ian to come back a week later. the following week, the officer told ian that 4143 is officially ours but the 27.8597ha of 4126 was officially CARPed. they will start processing it so we can be paid by land bank. ian asked what is the timetable the officer said she can only promise it will be done within this year. therefore around december of 2020 someone should go to DAR (PARO) near sto nino and talk to atty guanzon to follow up. ian asked how much is the usual payment she said some get paid P2/sqm some get paid P200/sqm so it's very unpredictable. she suggested that if we are not content with the amount we can contest it in the adjudication board.
  • virgilio suggested we hire a lawyer to recover our CARPed property. he knows a lawyer who is a former DAR official who went into private practice and is known for winning CARP cases for prominent families.
  • also note that although we never received any NOC (notice of coverage), we received an OLT (final notification letter to land owner) in 1989. atty camiso said this is the same as NOC
  • ian does not have any desire to take back our CARPed property for 2 reasons:
    • 1) moral reason: those lands originally belonged to the native inhabitants. the spaniards came and stole it away from them. the natives were then oppressed and subjugated for the next 400 years. so we basically bought stolen property. yes we are also partially descendants of natives and that's why we still have 59ha. we should actually feel lucky we still have 59ha. however, note that this moral argument does not apply to city properties because the astronomical rise of city properties was because of the expertise and risks taken by non native engineers, capitalists and developers.
    • 2) security reasons: since the prospect of selling toledo is bleak, the next best option is to subdivide it among the heirs and make use of it. if we successfully take back the CARPed properties, none of use will be able to go to toledo without being killed. they could even come down to guadalupe to carry out their revenge. the caveat to this argument is that 4143 (10ha) is now officially ours and there are lots of claimers (squatters) which we still need to deal with.
    • however for those who don't share ian's convictions and philosophy, of course nobody will block you and we will even cooperate if you try to take back the CARPed 29ha. ian even agrees that the heirs share in the expenses. however, all leg work and efforts will have to be done by those who want to recover the CARPed 29ha.
      • however, be aware that unless the lawyer is someone who we trust such as atty oscar or atty mark, there is a possibility that a laywer will mislead you into making you believe that we can recover the 29ha because of course they will earn income if we pursue it. so my suggestion is to inform the lawyer that we don't have any money and we can only pay him/her with a portion or percentage of any recovered property (maybe 20% or 5ha of the entire 29ha if recovered). this is similar to the deal we had with the sosa firm. this way, we are assured that the lawyer will give us honest advice and work hard to help us.
  • history of accomplished tasks (lessons on perseverance and how to get things done)
    • ian went to atty oscar and asked why 76ha of toledo is not in the extrajudicial. atty oscar said he forgot why and referred ian to atty camiso. he was not in his office so his secretary told ian that doris has his number and we can just text or call him. ian went to doris who immediatelly called atty camiso and they got to talk. there were 3 questions ian wanted to ask. after only the 2nd questions, atty camiso yelled, "HAY SALAMAT DUNA NA GYUD NINYO NA KAMAO MO BASA !!!". ian told him his uncles and aunts are ateneo graduates of course they know how to read. atty camiso told ian to dig up (ukay) the documents in toledo. ian asked what he should ask the people working there he shouted, "ayaw pangutana !!! ikaw gyud ang mangukay". ian said but he can't just go there and start rummaging through random documents all over the place. ian needs them to point him to something, maybe a case number or a date. the phone connection got cutoff. so ian asked doris to simply text him asking for the information ian will need which is suppose to be just a 1 sentence reply but instead atty camiso replied that he will setup a meeting with ian. everyday for a week ian kept following up with doris if atty camiso has already scheduled the meeting (even if all ian needed was 1 sentence from him). finally after 1 week, atty camiso scheduled the meeting.
    • in the meeting ian asked his simple question and atty camiso told him to go to toledo and dig up the decision of the court case. ian asked what case number atty said he forgot. ian gave him the 3 case numbers (r-166, t-381 and t-215) and asked which one it is and atty said it's t-381. ian told him he has the decision with him and showed it to atty. atty camiso read the decision and told ian that the properties have not been substituted in favor of the heirs. ian then asked atty camiso if it's still possible for us to do the substitution. atty said no. ian then asked, does that mean we should include them in the extrajudicial? atty said yes. ian asked if the 38ha carped lots is officially carped and if there is anything we can do about it. he told ian to go to DAR to find out. ian then asked that if it's officially carped, should we still include it in the extrajudicial? he said yes or else we won't get paid by land bank. notice ian's series of questioning and how he was not expecting atty camiso to spoon feed him and tell him what we need to do. we have to persevere and not be entirely dependent on the lawyer. we need to be proactive because if we don't then we lose everything. it's that simple.
  • the following lots have titles under the name of lolo and lola and therefore will be included in the extrajudicial which means we will have to pay the inheritance taxes (they appear in the certified list of holdings of lolo and lola)
  • note that a tax dec is required for the inheritance tax to be processed. furthermore, a tax dec should contain the title#
status table
lot# area title# taxdec# property tax status
3816 6.1052ha 113-2013000287 none  ??? manoy eddie applying for tax dec
3817 0.1224ha 113-2013000288 none  ??? manoy eddie applying for tax dec
4130-E 0.4139ha none 132  ??? indemnity for damages (case r-166)
3820 0.4000ha none 620  ??? indemnity for damages (case r-166)
  • total: 9.816ha
  • ian's message to the heirs on 11/20/20:

i did more analysis on our toledo properties and thought of a plan on how we can get the optimal value. first let me break down the status of our toledo properties. i attached the sketch map.

originally we had 86ha. 27ha of lot 4126 was carped. atty atup, who is renowned for recovering the CARPed properties of the lhuillers, says there is a chance, albeit very small, that we might be able to recover the 27ha. he says DAR is notorious for ignoring the "agricultural land" classification. note that each heir is entitled to 5ha of agricultural land. so if out of our 86ha, only 45ha is agricultural, that means we are entitled to 9 heirs X 5ha = 45ha so it was illegal for them to CARP our 27ha. atty atup's firm is currently investigating this. he said we will know the status by december. i already gave P21.5k to atty atup for the consulatation and mobilization fees. atty atup said that if DAR made an error, they will proceed to recover the 27ha and they will just ask for contingency fee as compensation. note we've been try to sell toledo for 2 years now offering P150/sqm but buyers were only willing to pay P100/sqm. but if it's already recovered and titled under out name i think we can sell if for P200/sqm. note that if we do recover it, 1/3 of it will go to atty atup. so we only get around 18ha. but the value is still P36m or P4m per heir. but there is only a very small chance it gets recovered so forget about this.

that leaves us with 59ha. however, lot 4143 (9.8ha) was distributed by DAR to the farmers. the farmers already have titles issued by DAR and are even trying to sell them (even if the titles were clearly marked "can't be sold). i let the head of legal dept of DAR (atty guanzon) review the court papers and she said we won the case and the entire 4143 should belong to us. what happened was that DAR wrongly distributed it to the farmers while the case was still ongoing. atty atup is currently trying to recover it and put it under the names of the heirs. atty atup says he is highly confident we will get back lot 4143. his firm was also willing to get contingency fee as compensation. contingency fee is usually 1/3 of the recovered property so expect lot 4143 to be down to just around P6.5ha best case scenario. at P200/sqm, that's P12 million (down from P19m) or P1.3m per heir.

atty atup is also in the processing of transfering the remaining 32.6ha of lot 4126 to your names because it won't show up in the list of holdings that's why we can't pay estate taxes for it yet. same with lot 4127 (6ha), and lot 4129 (3.5ha). that's 42.1ha total. at P200/sqm that would be P84 million total, or P9.3m per heir. what's weird is 4129 is titled under lolo and lola's name but still won't show up in the list of holdings. but the BIR can't process anything that does not appear in the list of holdings because after the estate taxes are paid, they are obligated to give us a CAR of each property which is as good as a title because it's now just a matter of processing to get it titled. atty atup says by december it should already be under your names so we can process the extrajuducial and pay the estate taxes.

that leaves us with just 7ha that shows up in the list of holdings and is being included in the first extrajudicial. this is lot 3816 (6.1ha), 3817 (0.122ha), 4130-E (.4ha) and 3820-prt (.4ha). 7ha might seem depressingly small but this 7ha could actually be the most lucrative property of our entire estate. if you look at the sketch map, all these properties are right by the main highway (uling-naga road). i think i know the reason why lolo and lola made sure these are under their names while they kinda neglected the other 80ha. before the pandemic i was negotiating with a buyer from manila. we were having lunch at gerry's grill in robinsons. i told them the heirs would not accept anything under P150/sqm. but the buyer was only willing to pay P100/sqm.

then tita doris told me that tito virgilio got a text from a buyer who was interested in buying our toledo property for a mind boggling P3,000/sqm. i laughed so hard i thought the person who texted was just joking. but when me tita jane and tito virgilio were eating at lola conchings, tito virgilio did confirm he got that text. i remember tito virgilio even said he will be very happy with just P600/sqm. but now i realized, that mystery texter was probably looking at our 7ha properties by the highway. today i looked at properties for sale around poog toledo and found out that although farmlands around toledo are selling for only P200 to P400 /sqm, there was a 200sqm property by the highway near our property that was selling for a whopping P10,000/sqm. that means that P3,000/sqm was actually realistic. however there are bigger properties for sale also by the highway going for only P1,000/sqm. if we use that as a conservative valuation, that means our 7ha can easily fetch for P70 million, or P7.7m per heir. WOW !!! what's amazing is this 7ha is under the list of holdings and is included in the first extrajudicial so after we pay the estate taxes, we can have it titled under your names. my plan is to fence this 7ha and sell it at P1k/sqm while continuing to try to sell the rest of 52ha for P200/sqm or even P150/sqm. we can fence cheaply with just a simple barbwire just to make it easy to show the buyers where the boundaries are.


toledo lumber sale retrospective

thanks to doris' hardwork and perseverance she was able to help many in the family with cash flow problems by selling some lumber in our toledo property. click on this link for a full retrospective click here to view toledo lumber sale retrospective

compound water tank

  • the lot around the old water tank behind rey's house and beside the maid's quarters of the main house
  • (done) ian will ask atty oscar why this was not included in the first draft of extrajudicial even if it appears in the certified list of holdings?
  • (done) ian get a copy of the tax dec from georgia and give it to atty tan in case it will be needed for the extrajudicial
  • (done) manoy eddie is getting the certificate of no improvement for this tiny lot
  • (done) georgia is getting the tax dec from city hall so ian can give it atty oscar so it can be included in the extrajudicial

compound entrance

  • (done - will be included and ian will sort out later on why this is not in the list of holdings) ian will ask atty oscar why this was included in the first extrajudicial draft even if it does not appear in the certified list of property holdings?
  • (done) ian to find out from the heirs why this not appear in the certified list of holdings
  • mely's family built a 2 story house on this property. rey said our family will not attempt to take this property away from mely.
  • georgia told ian this has been partitioned, mely's house officially belongs to them, and part of the frontage belongs to us. ian suggested we put up a lotto booth. georgia agreed
  • georgia told ian that this used to appear in the list of holdings until 2018 and the folks in city hall can't explain why it disappeared. however she was able to pay the property taxes.
  • atty oscar told ian this can be included in the extrajudicial even if it's not in the list of holdings because the BIR will never refuse any payment. if this disappeared in the list of holdings because of an ownership issue we can resolve it later.

mactan

  • 1/18/21 status: atty tan gave us an option to buy this back for P15m where he will also give up his claim to the main house front lawn. there is no right of way for cars, only motorcycles can pass. but ian thinks this is a good deal because mactan is actually worth P76m if we use it for bedspacing. click here for ian's plan for the mactan lot
  • the best offer we got for mactan after 3 buyers approached us was P13.5M.
  • the heirs insisted this lot is 2,444 sqm. our caretaker also insisted it's 2,444 sqm. however, ian walked the boundaries and confirmed it's only 1,655 sqm (~63 steps X 27 steps, from golfing experience ian knows his step is around 1 meters)
  • (behind lilang's guitar near the foot of mactan bridge)
  • (this has been given to the sosa firm as payment for recovering the properties from Ang. a written agreement exist - https://photos.app.goo.gl/8SRTEYC29vZLjEAt7)
  • (note the written agreement states it's 1,655 sqm - https://photos.app.goo.gl/8SRTEYC29vZLjEAt7. however, the title also says the entire property is 1,655 sqm - https://photos.app.goo.gl/mwPQn38vdw5F8fYS7, which means we awarded the entire lot to the sosa firm in the agreement)


Ang Case

  • 1/19/21: the broker for one of the pelaez buyers, atty balili informed ian there is a pending case recently filed by Ang which is an action for settlement of estate. ian has no idea what it means. ian asked for the court documents and case number but he hasn't replied. ian will also talk to atty tan about this tomorrow to get advice on what should be our course of action. once we get clarity, ian thinks we should disclose it to tita georgia's buyer for pelaez
  • status as of 1/18/21: ronnie texted Ang who replied saying he is currently preparing a proposal.
  • status as of 12/18/20 - on dec 2, per atty tan's advice, ian made an offer to Ang for P3m. a week later ian visited Ang's office to follow up and his secretary told ian that Ang is still trying to decide. the secretary got ian's number and said they will just call me when Ang has decided.
  • in 1993, lola borrowed P2.95M from Salvador Ang to fund her housing project in mactan. the following properties were mortgaged:
    • pelaez
    • guba
    • compound entrance
    • doris' house
    • mactan
    • pagina
  • at 6% interest, the total payable to Ang reached P6.659M by 12/2/16
  • atty oscar was able to strike a deal to bring it down to P3M
  • rey and virgilio said we don't have to pay Ang anything anymore because his lawyer made a mistake by not setting some sort of deadline in court. ian thinks not paying Ang is a dangerous move because to remove the lis pendens (so we can pay the inheritance tax) it would require suing in court and by the time the lis pendens is removed the amnesty would have already expired so we would now have to pay P37M instead of P4M in inheritance tax.
  • vigilio and georgia have expressed their sentiments that we don't owe Ang anything because the money was used by lola to develop the property used for the housing project by flattening the otherwise rocky terrain of the property. since Ang was able to profit from the said property improvement, we should not owe him anything. ian said maybe if we can find a way to meet with Ang personally we can make an emotional plea which might work because rumor has it that he is old and dying and maybe he would want to right the wrongs he has done to cleanse his soul in preparation for the next life.
  • note doris' house was recovered by paying Ang partially. the title was given to us but is now missing and doris is looking for it. ian told doris it's a blessing in disguise it can't be found because of her history of bad judgements. (closed case - doris has acknowledged not having the title is for her own good)


Inheritance Tax or Estate Tax

  • the deadline of the tax amnesty is june 14, 2021
  • 12/2/20: the final and official computation of estate taxes is P6.5M (including gerry's estate tax of P255k and bertie's estate tax of P235k). this does not include the 52ha of toledo which are not yet under lolo's name or not in the list of holdings and therefore has no tax decs. atty louie santos is working on transferring the 52ha to lolo's name so we can pay the estate tax before the amnesty expires.
  • if we don't pay before the amnesty deadline, our estate tax goes up to P63M
  • --------------------------------------------------------------------------------------------- (the following items are out of date and are just for historical reference) ----------------------------------------
    • because of the tax amnesty, the inheritance tax is now only 6% of the total market value of the properties during the time of death and without penalties. ian's estimates on the market value of the properties that appear in the certified list of holdings is:
      • mambaling: P30M
      • pelaez: P20M
      • guba: P3M
      • toledo (9.8ha): P10M
      • mactan: P48M
      • pagina: P3M
      • compound water tank: P360k
      • main house: P25M
      • -------------------------
      • total: ~P139M
      • ian googled similar properties in the area that are for sale and used their prices to estimate the current market value of our property
      • assuming the values during the time of death of lolo was 30% of the current values, the basis is: P139 X .3 = P42M. 6% is P2.5M
    • inititally ian's esimate was P6M because he used the original tax table instead of the flat 6% of the amnesty law. in a meeting at dunkin donuts, virgilio said his estimate was also around P6M.
    • ian did not bother to include the standard deductions (medical expenses, etc ..) because the total limit is only P2.5M which is insignificant considering his estimates on the property values can vary widely from the actual.
    • the tax amnesty expires on 6/15/21
    • (done - it's april 20 2021) ian will verify to make sure the deadline of the amnesty is not 4/24/19 as what this article says - https://platonmartinez.com/articles/tax-amnesty-implementing-rules-and-regulations
    • if the amnesty expires the inheritance tax will now be computed according to this article - https://transferwise.com/gb/blog/philippines-inheritance-tax
      • P42M - P2M deductions = P40M. so it's 1.215M + (.2)(P30M) = P7.215M + (.25(7.215) surcharge) + 7.215(.2)(18 years) = P37M
    • jane suggested a very valid point - that maybe we should not have somebody go to the BIR first until we are ready with the money para dili ma utingkay nga wala pata mkabayad sa taxes. ian replied: "if there was no amnesty that would be a smart thing to do. however, the amnesty expires 6/15/21 so we have enough time and we need to come up with the money anyway by hook or by crook or else our tax becomes P37M instead of only P4M. there are also many options for us to pay - loan from the bank or ian could pay it if it's not that much. if we can't get a loan we can also loan from mama because within this year she will be getting P30M from the unitop sales and it's also in my parent's best interest to save the properties. the advantage of getting a computation early is that it will scare everyone into being cooperative and helping out in the leg work if they realize how much we will save if we beat the deadline". feel free to express your opinion via messenger group.
    • (done) ian will ask the assistance desk in BIR barrio luz when exactly is the amnesty deadline. ian saw an article saying it's june 25, 2021 but also saw an article saying it's april 25, 2020.
      • result: the assistance desk personnel started asking around when is the tax amnesty deadline but none of them knew. so she googled and found the article i found that says it's june,2021. so she told me it's june 2021. amazing !!!
    • (done) in ian's meeting with atty mark on wednesday, he will ask if they can scare the assessors of toledo using marlo cugtas' name (head registry of deeds who plays golf with ian) into issuing us the new tax decs. georgia said there already is a court order but the assessor's office required that the court order should be a cancellation of the existing ones first. georgia asked the court clerk in quimoda and the provincial court for a cancellation but both insisted that the court order already implies cancellation. georgia believes the assesor's office in toledo is giving us a hard time because they are the relatives and friends of the families who tried to grab our land where we won the case. ian said if atty mark's runner, manoy eddie fails to get them to issue new tax decs (using atty marlo cugtas' name) (not needed) ian will consult atty cugtas if there is anything he can do to help. if this fails, then (not needed) georgia will get a motion from the court order the assessor's to issue us new tax decs. note the reason why need new tax decs is so we can start paying the property taxes which we haven't done since forever. also note that even without the tax decs, we can already include it in the extrajudicial and pay inheritance tax. atty oscar will just use the finality of the court case that we won where it says the properties are ours. ian has already given atty oscar a copy of the finality.
      • result: ian asked manoy eddie to try informing the assessors office folks "we will give them a little something to make them happy" if they issue us new tax decs. manoy eddie said it worked and we will be getting the new tax decs for 3816 and 3817 next week (first week of march).
    • georgia got the tax dec of the 18sqm (tanki) and sent to ian and ian gave it to atty oscar who said the draft of the extrajudicial should be ready around next week and he will text ian once it's ready. ian will then give a copy to manoy eddie and have it computed by his contact in the BIR so we can already get the estimate. this would give us more visibility to make better decisions on what other options to take if mambaling is not yet sold and the tax amnesty deadline nears.
    • (resolved) virgilio will meet with the assessor where he will ask the assessor to revise the list of holdings, namely remove gikom's talamban townhouse (he has the same name as lolo), and also move the tax dec assessment to 1994 instead of 1995 because the zonal value between that time jumped from P3M to P7M, which means the inheritance tax (6%) jumped from P180k to P420k so we save P240k if it is revised to 1994.

Extrajudicial

  • 1/19/20 status: virgilio still has not given us a go signal to print and start signing. the BIR assessor will allow payment of the estate tax even if not all signatures are present as long as the extrajudicial has no deed of sale or assignment. therefore the simple solution is to separate the deed of assignment of the main house to georgia and mike because anyway there is no fundamental difference according to all the lawyers ian consulted. jane and mike also chose not to give an SPA to a trusted lawyer in cebu. without the SPA, mike and jane will need to have their signatures for the extrajudicial and future sales of any property apostilled by the secretary of state of california which could take a month, and nobody knows the direction of this pandemic.
  • 12/23/20: ian and georgia shopped around for a notary and the cheapest they could find was P400k. luckily ian talked to his tita citcit who introduced him to a lawyer who would notarize our 3 extrajudicials for only around P25k, as long as the extrajudicial does not contain a deed of sale or assignment. this is the notary the unchuans who own the properties around redemptorist have been using to settle their estate without any issues.
  • 12/23/20: virgilio has reviewed the extrajudicial and made edit suggestions. ian has made the edits and sent virgilio a copy. the heirs are now waiting for virgilio to give the go signal so we can print and start signing.
  • as of 12/2/20, the extrajudicial has been finalized by atty mark tolentino and ready to be signed
  • all heirs need to sign the extrajudicial before we can pay the inheritance tax
  • if not all heirs agree to sign the extrajudicial, we will have to go through administratorship, or the judicial process which could take time and could prevent us from beating the amnesty deadline
  • ----------------------------------------------------------------------------------(these gating items have been resolved and are retained for historical reference) gating items: -----------------------------------
    • atty oscar to create the draft.
      • when there is a buyer, atty oscar will just add the name of the buyer and print it.
      • virgilio's unconditional demand is to separate the deed of sale from the extrajudicial. his reason is that it's much simpler. atty oscar said there is no difference. atty oscar agreed to just separate it because it would not make sense that we lose everything and some heirs continue to suffer economic hardships just for this insignificant issue. ian suggests to jane to ask atty george and judge angeline quimpo if there is a difference between separating the deed of sale from the extrajudicial or not. maybe it will ease the worries of the contending heirs
    • atty oscar is creating the SPAs for luz,abigail,christian,mike,angie, and rey
      • ian will fedex the SPAs as soon as they are available
      • jane said she will just fly here from the states anytime she needs to sign anything so she does not need an SPA. ian suggested that it's better for her to ready an SPA assigned to georgia but she does not need to give it to georgia yet. in case there is an urgent buyer for mambaling and jane cannot attend the signing (maybe due to medical emergency, doctors appointment, corona virus escalation, etc ...) this whole thing could fall apart and we could lose everything if the buyer happens to change their mind or finds another opportunity while waiting for jane to arrive. at least if the SPA is ready she can just fedex it if she can't come here. ian suggested to jane to at least consult atty george or judge angeline to assure her that a specific SPA (only for earnest money and down payment for the mambaling sale) is very safe and she has nothing to worry about.
    • georgia to have the houses of jane, bertie and gerry cancelled from the certified list of holdings. actually this is not suppose to be a gating item because the only downside is we pay a little bit more in inheritance tax but jane said she will not sign the extrajudicial until her house is removed from the list.
  • history of resolved issues:
    • it is very important each heir is aware of the issues and demands of the other heirs because it enables us to be in sync and cooperate with each other to preserve our common interests and achieve our common goals. keep in mind that if we fail to reach a compromise, which can easily happen if we don't stay sharp and focused and don't refrain from being too emotional, we can easily lose everything. the lessons here can also teach us how to resolve future conflicts.
    • jane was advised by her sister in law helen that we should take advantage of the tax amnesty because it could lower our inheritance tax significantly and if we don't pay the inheritance tax a time will come when the government will confiscate the properties. on early november 2019, jane relayed this information to ian. at this time, ian did not even know what is an extrajudicial and only learned about it when he googled the requirements for the inheritance tax.
    • ian organized and studied all the documents he could find related to lolo and lola's properties and found a draft of an extrajudicial (2014) created by atty oscar.
    • ian asked georgia why not everyone signed. georgia said because noy virgilio and noy gerry wants the deed of sale separated from the extrajudicial and they don't want the mactan lot to go to the sosa firm. georgia also expressed her reservations about losing her lawn (main house) to the sosas. ian explained that the sosas helped us recover the properties at the time when the family was broke. it's just logical that we agreed to a contingent fee and after reviewing all the properties, the mactan lot and the main house lawn would have been the most logical choices at that time (which were not yet that valuable in 1999 when the case started). it can't be guba or toledo because CARP was already in full force at that time. georgia said we probably gave the country club shares as payment. ian asked her if she has any proof. she said none so ian said we should disregard that argument. ian said her choice is simple:
      • 1) give up the main house lawn but also get P15M of your share in inheritance, or
      • 2) don't give up the main house lawn and get 0 inheritance (but later the sozas will sue and you will still end up losing the main house lawn anyway)
      • georgia pledged to help ian convince the other heirs. she told ian from now on she will just accept that the main hose lawn is gone
    • ian talked to jane who insisted she will only sign the extrajudicial if there is a written agreement where the mactan lot goes to the sozas as compensation. ian talked to rey who said there was a verbal agreement between lola and atty soza and we should all honor it. ian pointed out that the court case started 1999 so it's impossible because lola died 1995 long before the court case started. if there was an agreement, it can't be between lola and atty soza.
    • jane told ian they will get another lawyer to make the extrajudicial. ian relayed this information to rey who said he will not sign any extrajudicial that does not come from atty oscar. ian relays this information to jane and virgilio. virgilio was relying on the judicial process as an option. but ian felt the judicial process is very dangerous because it could take time and if the tax amnesty deadline expires the tax would be so huge such that we would end up losing everything.
    • so ian continued to study the rest of the documents and luckily found the written agreement for the main house lawn. ian pointed out to jane that the written agreement proves it was customary for us to pay using a property as contingency fee and if you just look at all the properties we had the mactan lot seemed the most logical. if not mactan lot then it's the pelaez apartments.
    • ian studied the Ang case and was flabbergasted because lola signed a deed of sale to Ang for each of the properties, received the money, and gave the titles to Ang. ian felt it was a miracle the sozas managed to recover the properties. ian pointed this argument to jane. ian said that even if there was no agreement, the sozas deserve the mactan lot for the miracle they have done. jane asked for proof so ian sent photos of the deeds of sale. jane was disappointed because it was the first time she has seen the documents even if her name shows up as one of the recipients. ian said this whole mess is actually nobody's fault because when lola got into business with Ang you all had your own problems and family to take care. you can't expect yourself to be studying each document that comes along much more expect someone to ensure that all siblings get a copy of the documents. even papa did not know the written agreement for the main house lawn existed even if it was just beside his bed for many years. only a lonely loser like ian has all the time in the world to be studying the documents.
    • virgilio argued that winning the case wasn't a miracle because we didn't recover anything because we still don't have the titles. ian argued that the monetary value of the recovery should be the metric, not the possession of titles. example if 10 titles were recovered each valued at P1M then that is small compared to what the sozas recovered which is P50M total value of properties and we only need to pay P3M to Ang to get back the titles so the sozas virtually recovered P47M.
    • virgilio told ian he wants the deed of sale separated from the extrajudicial. ian asked atty oscar if there is any difference he said none. ian pleaded to atty oscar to just separate it anyway there is no difference just for the sake of the heirs who are suffering economic hardships and those who might need the inheritance for critical and possibly even life saving medical treatments. atty oscar agreed.
    • atty oscar also told ian there is a written agreement on the mactan lot and he will send it to him soon. atty oscar also said that even if there was no agreement, he can invoke the quantum meruit law where an attorney is entitled 10% of the recovered properties/award in an absence of a written agreement. when atty oscar sent the written agreement, ian immediately forwarded it to everyone.
    • at this point (december 2019) no heir in their right mind had any valid reason not to sign the extrajudicial.

Partition Alternative

ian notices that some heirs have the tendency to have a higher than normal expectation on the selling price of a property. mambaling is an exception but that's because we are desperate to beat the amnesty deadline. but after mambaling is sold, ian predicts it will be almost impossible to sell the rest of the properties because unlike mambaling which can be sold via the corporation, each property will require the signature of all heirs and if just 1 heir disagrees with the price then the sale can't happen.

of course we should proceed with trying to sell the remaining common properties (which was the agreement). but in case not all heirs are willing to adjust to a more realistic selling price, we should also start subdividing the entire property among the 9 heirs (drawing of lots). ian thinks we can find a creative way to subdivide the pelaez apartments into 9 units. if not, ian is sure some heirs would be willing to be bought out if for example only 7 units is possible in pelaez. we can agree that the price would be according to whatever is the appraised value. the buyout can also be in a form of getting more share or more lucrative partition in toledo or guba. example toledo has a severe water supply problem but one of the lots has a tubod or spring which makes it a good business opportunity to be the MCWD of toledo (contact my friend aris kintanar - he will provide all your engineering needs). or getting the 18 sqm water tank lot of crystal compound. we will cross this bridge when we get there but for now, it's something to keep in mind so that you don't keep worrying about the overly high expectations of some heirs.

with regards to toledo and guba, this is actually a blessing in disguise. as a seasoned investor, ian believes that farmlands will only become more and more scarce and valuable with the current population growth and number of mouths to feed. especially with the rapid advancement of artificial intelligence (AI), most jobs and industries would disappear. by the time lolo and lola's great grand kids are in their 50's, farm owners could be the new kings of society and even those in the states who currently have no interest with these inheritance would probably want to come back and take part. this also serves as an insurance that lolo and lola's descendants in the future who fall into misfortunes will never be homeless and always have a place to go where at least they have a place to stay and plant crops for food.

meanwhile, you should be excited about this prospect because for example, it will be fun to fence your property, plant coffee and just keep harvesting this legal drug twice a year for the next 50 years (no need for replanting). which virtually makes you a legal drug lord. you don't have to worry about sales and marketing because nestle have centers that buys all your harvest at the market price published on the internet.


Family Commission

to motivate members of the clan into finding buyers for our properties, let's make an internal agreement where whoever finds the buyer gets 3% commission from the total sale. this is separate from the agent and broker commission that is required by law. note that this was already agreed upon but let's make it official. we should end the culture of ignoring the importance of written agreements, documentation, and proper record keeping because it's the source of the chaos and misunderstandings that has plagued the family in the past.

to make it simple just message ian (text or messenger) saying you agree or disagree. majority wins.

Payables to Ian

  • ian kept the receipts in case you want to verify
  • here's the list of what the estate owes ian:
    • pelaez redemption - 1375671
    • toledo expenses - 3000
    • 12/16/19 atty mark tolentino consultation - 4000
    • western union fee and georgia's expenses - 965
    • bdo acct maint. deposit - 25000
    • partial payment for inheritance tax processing - 25000
    • pelaez property tax - 27400
    • tax clearances - 1500
    • rey's share of toledo lumber sale - 26000
    • partial payment for inheritance tax processng - 10000
    • doris expenses ROD old titles of mambaling - 1000
    • doris expenses to mambaling baranggay hall (5 trips) - 800
    • doris ROD new titles of mambaling - 495
    • doris isaac tax dec - 450
    • atty mark partial payment for 3 extrajudicials and BIR representation - 40000
    • mobilization fee for manoy julius to collect BIR requirements - 25000
    • #entered to quicken 7/15/20 total P1,566,281
    • guba appraisal - 8168
    • mambaling appraisal - 5130
    • mactan appraisal - 8168
    • mambaling right of way notary certified - 2000
    • doris cert true copy right of way mambaling - 1000
    • mambaling right of way title annotation atty abellana - 20000
    • 9/17 tita doris expenses to toledo ROD re. 4143 landgrap by marcelo - 1000
    • 9/22 tita doris expenses to get cert true copy of marcelo's titles in toledo ROD - 2000
    • 10/7 toledo assessors office BIR requirements - 5000
    • 10/8 atty atup - 21500
    • 10/10 xerox toledo court docs for doris - 345
    • 11/3 manoy julius mobilization expenses for BIR requirements for tito gerry and tito bertie estate tax - 20000
    • 11/4 death certs of tito bertie and tito gerry for estate taxes - 500
    • 11/12 tita doris expense for cert tct pelaez mambaling - 1000
    • 11/22 xerox for 16 property buyers package - 625
    • 11/22 folders, bond papers for 16 property buyers package - 325
    • 11/25 cert tax dec and tax clearance of mactan - 105
    • 11/27 atty mark fee for 3 extrajudicials/BIR representation (120k each) - 200000
    • 12/1 atty abellana atty fees - 100000
    • 12/3 tita doris nso death certificates of lolo and lola for filing of administratorship - 1000
    • 12/7 nso birth cert of tita angie - 155
    • 12/8 tita doris pickup nso birth cert of tita angie - 500
    • 12/9 xerox t215 and t381, gave change to court clerk as tip - 1000
    • 12/10 make 2 copies of t215 and t381 - 531
    • 12/13 tita doris pickup another nso birth cert of tita angie - 500
    • 12/15 tita doris certifications for family homes and indigents - 500
    • 12/16 extrajudicials print xerox buy paper folders - 526
    • 12/21 CLUP toledo - 230
    • 1/11/21 tita doris TCT for 3 family homes for estate tax deduction - 1000
    • 1/11/21 tita doris tax decs for 3 family homes for estate tax deduction - 1000
    • 1/11/21 tita doris birth certificates of heirs of tito gerry and tito bertie - 1500
    • 1/12/21 engr norvic sketch plan for 4126 for toledo cenro land classification - 5000
    • 1/13/21 tito ronnie meds assistance for helping us with Ang - 2500
    • 1/13/21 tita doris death certs of lola lola tito gerry tito bertie for family home cert - 1000
    • 1/16/21 pelaez appraisal - 7000
    • 1/18/21 tita doris deaths certs and birth certs for administratorship - 1000
    • ---------------------
    • total: P1,988,089
  • tita angie assistance
    • 1/11/21 DTI coop loan payment - 50000
  • tita doris assistance
    • 9/26 tita doris food assistance - 2000
    • 10/25 tita doris food assistance - 1000
    • 11/4 tita doris food assistance - 500
    • 11/24 tita doris electric bill payment - 18000
    • 12/24 tita doris electric bill - 7000
    • 1/7 tita doris assistance - 500
    • 1/18 tita doris assistance - 500
    • 1/19 tita doris assistance - 2000
    • ---------------------
    • total: 31500

contentions

  • virgilio contended there was no need for ian to pay P1.3M because a law was about to come out of congress where we don't have to pay it anymore. ian checked with a tax lawyer about this but she said no such law exists. in any case, even if virgilio is correct and what ian did was a mistake, jane and georgia promised that part of the mambaling sale proceeds will be used to pay ian's redemption expenses on pelaez
  • virgilio also contended that the processing of inheritance tax is as simple as giving the BIR the certified true copies of all our properties so there is no need to hire a runner. he also said that he has the complete documents ready to be computed by the BIR. virgilio even got angry and insulted manoy eddie in front of atty mark. ian had to apologize and we are lucky manoy eddie is still helping us. jane and ian has been asking for the documents and it's been 3 weeks since the time of writing virgilio hasn't given the documents. therefore ian is continuing to hire manoy eddie. furthermore, before ian hired manoy eddie (atty mark's runner), ian has been mentioning in the meetings and messages to georgia and jane he will hire atty mark to help us with the inheritance tax processing but nobody objected. here is a more detailed breakdown of manoy eddie's service:
    • doing the leg work for us - no one in the family has time to do the leg work needed for inheritance tax processing. case in point virgilio is very busy with religious duties such that it is only suppose to take him 30 minutes to make copies and hand over the inheritance documents but it's been 3 weeks and he still didn't find the time. while ian was in the states from dec 6 to jan 17, ian suggested to georgia that she starts processing the inheritance tax and he will provide any necessary funding but georgia was too busy with her civic duties in camotes the entire time.
    • lowering the tax computation - assessment of property values can be subjective. manoy eddie has friends in the BIR that could considerably lower our tax so it's possible we actually save more money
    • connections to expedite the processing - before ian hired manoy eddie, georgia has been complaining that when she goes to the assessor's office in toledo, the folks there won't give her the tax decs needed to pay the property taxes. the tax decs are also required for the inheritance tax computation. that's because the folks in the assessor's office are relatives and friends of our enemies that tried to land grab our properties which we sued and won in court. when manoy eddie went to get the tax decs he was also snubbed but when manoy eddie mentioned the name of this powerful friend, the folks got scared and suddenly became accomodating. georgia contended that even without manoy eddie, we could still have gotten a court order or motion to force them to assist us. ian argued why go through the hassle and besides it can take time and hinder our ability to beat the amnesty deadline.
    • note that the certificate of holding that manoy eddie gave ian contained the houses of jane, bertie and gerry. the law says we can't pay the inheritance tax if not all holdings are included in the extrajudicial. jane got upset and said she won't sign any extrajudicial that includes her house. georgia is currently processing this to remove the 3 houses from the list of holdings. the point is that if we did not hire manoy eddie, this issue would have surfaced in the last minute which would have jeopardized the sale of mambaling.

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