1/14/2013

The Anomaly of Notarial Fee Rip-off

QUESTION: Rltr. John, I bought a property worth P10Million. The agent says the Notary Public is asking P100,000 (1% of P10M) for the deed of sale. I felt I was treated unfairly, so decided to put the documentation on hold. How much should be the notarial fee of the Deed of Absolute Sale?

ANSWER: That’s a rip-off! The correct price tag of notarization of deed of sale is maximum Five Hundred Pesos (P500). Rule 5 Section of the 2004 Rules on Notarial Practice in the Philippines, titled Imposition and Waiver of Fees of Notary Public, states that a notary public may charge the maximum fee unless he waives the fee (meaning, charge a lower fee) in whole or in part. Section 21 of Rule 141 states that the notarial fee for entries of certificates of sale and final deeds of sale in extra-judicial foreclosures of mortgages is Five Hundred Pesos (P500).

If I were you, I would skip the headache by having that deed of sale notarized by someone else other that that one being recommended by the agent. By the way, I am surprised that you (buyer) are the one paying the notarization of deed of sale. Notarization of any deed of property conveyance (whether sale, lease, or mortgage) is supposed to be at the expense of the conveyor who executes the deed. Myself, being an Exclusive Buyer Agent, I always believe that a well informed buyer can never be deceived.


If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
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10 comments:

Ichigo03 said...

This is really helpful.. Thank's

greenlife said...

what about for the notarization of DOAS that does not involve foreclosed properties? in my research, typical rates for the notarization fee are between 1% and 2% of the selling price indicated in the DOAS. is this correct?

Rltr. John R. Petalcorin said...

Notarization by a Notary Public is just a workload of (1) stamping and (2) filing. It's only P500 plus tip for a fast work. If the lawyer attempts to open his mouth to explain why he would charge percentage, just close your ears and walk away right away, and find another notary public who will not rip you off.

Oscar said...

Good morning Rltr. John,

Regarding the notarial fee, I noticed that it varies among many others whether it is under the account of the seller or buyer or shared between the two parties. Is there a particular basis or principle regarding which account should the notarial fee be under? Thanks in advance and more power to you!

Oscar

Rltr. John R. Petalcorin said...

Hi Oscar! Thank you for the question. The one who executes the document is the one who pays the notarial fee. For example: Deed of Sale. You ask, "who is granting the DEED to sell the property?". The answer is, "Seller", so, seller pays the Notary Fee of the Deed of Sale. Another example: Authority to Sell. You ask, "who is granting the AUTHORITY to sell the property?". The answer is, "Seller", so, seller pays the Notary Fee of the Authority to Sell.

Sometimes, both parties must AGREE. Example in LEASE AGREEMENT. In this case, both parties must equally share the notarization cost.

Anonymous said...

Notarization converts a private document into a public document. If its just stamping and filing then let us just all perform notarization.

Anonymous said...

Good afternoon Mr. Petalcorin. Are there known Notary Public offices in QC who charge the 500Php maximum value for notarizing a DOAS? The one that I know of charges 2,000 per 1M so that's 0.2%. Thank you very much!

Rltr. John R. Petalcorin said...

There are many who charge only P500. You just need to be diligent in looking around to find them.

Anonymous said...

Sir clarify ko lng po sabi po ninyo 500php max pay for notary as per rule 5 .... Sa ibp po naman daw sabi ng atty. ko friend now fiscal sa ibp daw po 1% panu po b talaga ? Kasi pay pa bir taz rd eh loan lng po sa pag ibig ito kukunin to pay owner tnx let me know po

Aubrey Portugal said...

Notarization of Deeds of Sale by a legitimate Notary Public as per I.B.P. regulation is 1% of the selling price, the option to waive it depends on the lawyer. Ask for an OFFICIAL RECEIPT if he does not waive. Sa tabi-tabi lang ang P500!