% FEE ON CONVEYANCING OF A VACANT LOT OF LAND?

The vendor and purchaser pays one-half of:-

1. Stamp Duty- J$5,000.00 (Flat fee)
2. Attorneys fees for preparing agreement for sale (anywhere between $100,000-140,000)
3. Registration fee- o.5% of the sale price
4. Miscellaneous fees – letters to utility companies (between 10,000-15,000)

The vendor alone pays:

• Transfer Tax—2% of market value
• The Real Estate Agent’s Commission, usually 5% of the sale price. (If any)
• Each party pays his own Attorney-at-Law. (between 1%-3% of the sale price)

For conveyancing of a vacant lot of land in the Philippines, the professional fee of a lawyer is not strictly fixed by law but is generally guided by the Integrated Bar of the Philippines (IBP) Schedule of Attorney’s Fees and prevailing market practice. The following are reasonable and customary standards:

a) For simple conveyance or deed of sale (where the property is free from liens or disputes), the usual attorney’s fee ranges from one percent (1%) to three percent (3%) of the property’s agreed selling price or fair market value, whichever is higher. Some law offices impose a minimum professional fee of around ₱15,000 to ₱30,000 for lower-valued lots.

b) If the transaction involves estate settlement, transfer from heirs, or property still under extrajudicial settlement or reconstitution, the fee may increase to three percent (3%) to five percent (5%), depending on the complexity, number of documents, and government coordination required (e.g., BIR, Registry of Deeds, Assessor’s Office).

c) For document preparation only, such as the drafting and notarization of the Deed of Absolute Sale, the fee can range from ₱10,000 to ₱25,000, separate from taxes, notarial, and registration costs.

Please note that these professional fees are distinct from transfer taxes and government fees such as:

- Capital Gains Tax or Creditable Withholding Tax (6%)
- Documentary Stamp Tax (1.5%)
- Transfer Tax (0.5% to 0.75%)
- Registration Fees with the Registry of Deeds

If you wish, our firm can review your property documents and give you a precise quotation depending on your transaction details, title status, and location. We have offices in Luzon, Visayas, and Mindanao, and we can schedule an initial consultation via Google Meet, Zoom, or in person.