Spot Cash Payment

Spot Cash Payment in Buying Properties

Are you planning to avail of property on Spot Cash Payment? To avail of Spot Cash will give you an easy way of processing, less hassle for your time and could focus on your business and the other things.
source: arbutus.net
A two valid Identification and Tax Identification Number is the requirement. At this payment options you can avail the highest possible discount especially if you pay the full 100% at the moment or with in a week of reservation date.

Here's how to compute.

Suppose:
Selling Price is Php. 1 Million
Discount for Spot 100% Cash Payment is 10%.

Selling Price ...................................1,000,000.00
Less: 10% (1Mx10%)...................................100,000.00 Discount
Balance Payable ......... ..................................900,000.00

Above, is an example if there is no Miscellaneous expense, if there is, you only add that expense at the Balance Payable. Let say 90,000 is the Miscellaneous

Selling Price ...................................1,000,000.00
Less: 10% (1Mx10%)................................100,000.00 Discount
Balance Payable ........................................900,000.00

Balance Payable ........................................900,000.00
Plus: Miscellaneous ....................................90,000.00
Total Payable..............................................990,000.00

Requiremenents: 2 valid Identification, TIN Number

The discount were always deductible at selling price without miscellaneous, because miscellaneous are fees and charges for processing and transfers of all documents which are payable to gov't agencies. The fees are, Transfer Tax, Docs Stamp, Real Property Tax, Registration Fees and others.

Note: Developers has different discounts on spot cash payments, this is an example only.


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About the Author

Jerome Morada

Realtor & Webmaster

Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

8 (mga) puna:

  1. Sir, what's the TIN for?

    ReplyDelete
    Replies
    1. The TIN Number of Principal Buyer, it's used in notarization of Contract to Sell and Deed of Sale. A BIR 1904 Form where clients TIN has, should be verified and validated. Thanks

      Delete
    2. Thanks sir...uhm...the "notarization" of contract..... how does that work exactly?

      Delete
  2. Notarization of Contract is the developers responsibility in transferring of titles, unless you avail property in Direct Listing. The most important is the TIN of the Principal Buyer to where the property is to be transferred. Coordinate with your seller or developer if they are the one going to transfer title, just submit all their required documents. Thanks

    ReplyDelete
  3. hi sir,
    i have a small question about those spot cash payments and the possible discounts offered in this case.
    Let say i want to buy a condo with for example a 20 or 30% downpayment in 36 months. then i want to pay the balance (70 / 80 %) in one time after the 36 months DP. is the payment of the balance after 36 month still called a spot cash payment, or is a spot cash discount only applicable when the 100% payment is made right after reservation of a unit? Thanks in advance.

    ReplyDelete
  4. Sir Arnaud, paying the down payment in stretched 24 months or 36 months is 0% interest and it applies if after down payment you are going to pay in cash the 80% or 70% balance. That payment term is considered Deferred Cash payment which is 0% interest and will not be considered as Spot Cash, that atleast to developers I know.

    To avail of Discounts, you may have as much Down Payment as possible like 50% Spot Down and 50% Balance payable in 36 months. Although developers has different approach is computing discount, some developers give discount based the Standard DP only even though you make as much as 50% as DP.

    Thanks for viewing.

    ReplyDelete
  5. Hi Sir jerome,

    Is License to Sell still needed if i pay spot cash?

    Thanks,
    Albert

    ReplyDelete
  6. @sibey mun, License to Sell (LTS) is required for Project Developers, for buyers it's important that we are buying properties through developers with LTS - it's a requirement of HLURB to make sure housing projects have proper documentations. Thanks for viewing.

    ReplyDelete

 
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