Things you need to know about Deed of Donation for Land

1. What is a Deed of Donation?

A Deed of Donation transfers property from the owner (the “donor”) to another person (the “donee”) by way of donation. The Deed of Donation is usually executed for the love, gratuity and affection the donor has for the donee (e.g. from a parent to a child).

The donation can be simple and straight-forward with no conditions attached. However, the donor can also impose conditions on the donation that the donee must follow at the risk of the donation being revoked. For example, the donor can require the donee to take care of the donor for a certain period of time.

2. When do you need a Deed of Donation?

A Deed of Donation is used when you will donate property to another person.

Philippine law requires the donation of (a) immovable property (e.g. land, house); and (b) movable property (e.g. jewelry, car) worth more than PHP 5,000.00 to be in writing and notarized in certain cases. Hence, certain donations cannot be made orally otherwise they are not legally binding under the law. A Deed of Donation can satisfy the law's requirement for a written document.

3. How can a Deed of Donation protect you?

A Deed of Donation serves as the donee’s proof that property has been donated to him / her and that he / she has a right to the same. In certain situations government agencies require a Deed of Donation before they will issue a new Certificate of Title in the donee’s name.

For the donor the Deed of Donation allows the donor to put in writing any conditions that come with the donation. The donor can require the donee to follow certain conditions at the risk of revoking the donation.

In any case the Deed of Donation ensures that the donation complies with the requirement under the law (if applicable) that the donation be in writing.

4. What information do you need to create the Deed of Donation?

To create your Deed of Donation you’ll need the following minimum information:

1. The type of donor (e.g. individual or business) as well as name and details (e.g. nationality and address);

2. The type of donee (e.g. individual or business) as well as name and details (e.g. nationality and address);

3. Brief description of the property to be donated;

4. The obligations and conditions (if any) imposed on the donor and donee together with the donation; and

5. Other terms of the donation (e.g. the reason for the donation, when the donation becomes effective).

Source: Legaltree

The science of dating and house-hunting

How many dates do you need to go on before finding the right partner? Luckily (or not-so-luckily for some), mathematics can shed some light on just the right number of dates a person needs to go on before they should stop and commit.

There is a popular “optimal stopping” solution in the field of decision science, widely known as Rule 37%. Rule 37% says that in order to find Mr. or Miss Right, you should settle down with the next best person you go out with after dating 37% of the potential candidates in your lifetime.

Assuming an average Joe gets to go out on a date with 20 different candidates in his lifetime, Rule 37% says he should date at least seven people (37% of 20) and reject them, before settling down with the next best person he dates.

This maximizes his probability of finding that dream partner. For the more mathematically inclined, you can read more about the optimal stopping theory, also known as the secretary problem.

Settling down is no laughing matter. Arguably the only thing that beats getting hitched on the priority scale is buying a home. Fret not, for decision science solutions such as Rule 37% can be applied to a broad range of problems, including buying property.

Just following your heart may not always be right

How often have we been told to “go with your gut feeling” or “just follow your heart” when it comes to choosing a home? Counterintuitively, investing in million-dollar properties can still be a snap decision for many. First-day sales of new launches tend to yield better results than later-day sales, driven partially by herd mentality. Science provides a solution.

Suppose you have three months to buy a house (excluding another two months to sort out the paperwork to complete the sale) and you are only available to view the potential properties on weekends. If there are 12 weekends or 24 Saturdays and Sundays in three months, Rule 37% says you need to spend at least nine Saturdays and Sundays (37% of 24 days) viewing, assuming you view an equal number of properties each day.

Try to not commit to any of the places you see in these first nine days, unless the property is an exceptionally good deal. This step ensures you build up sufficient understanding of the types of property that might be suitable for you, such as the layout, facilities and level of furnishings.

From the 10th day onwards, get ready to buy the unit that is better than all the places you saw in the first nine days. Say, for example, on the 12th day of viewing, you find a place that is better than all the other places you have seen. Committing to it will be your optimal decision.

This process gives you the greatest chance of sealing the best deal without having to physically view all the available ones in the market, which would be a dreadful task given the time constraints. You also cut the risk of committing too early to a place you may eventually regret buying.

Strictly speaking, one of the key conditions of Rule 37% is that you can never revisit the properties you have viewed. However, this only applies in a fast-moving market or if the sample size is large; otherwise, you may not find a better property after rejecting those you have viewed. If the sample size is small, one can simply refrain from committing to the first 37% properties viewed.

The first 37% of the properties viewed serves to build your understanding of your personal preference

What’s the right price?

Nicholas Sparks, author of The Notebook, once wrote: “There’s no love like the first.” Inevitably, we tend to compare many of our life relationships to the first, regardless of whether or not it ended well. There is an aura of mystique to being the first.

In decision science, there is a term for this cognitive bias — anchoring. Anchoring is our tendency to rely too much on the first piece of information we received when making decisions. In real estate, this problem rears its head in its most important element — pricing.

Gregory B Northcraft and Margaret A Neale, professors from the University of Arizona in the US, conducted an experiment on real estate pricing and found that even professionals were affected by anchoring bias.

In the experiment, a group of real estate agents were each given a package containing information on a selected property, such as listing price, floor area, photos, layout and a summary of sales transactions in the neighborhood for the past six months. The only item that was different was the listing price.

Each participant received one of these four listing prices: a) US$119,900, b) US$129,900, c) US$139,900 and d) US$149,900. Participants were also brought to the property for a physical inspection and were then asked to provide a valuation of the property.

Surprisingly, estimates varied widely and were heavily influenced by the listing price. For example, agents who received the lowest listing price of $119,900 submitted conservative valuations of $114,204 on average.

On the other hand, agents who were given the highest listing price of $149,900 submitted bullish valuations averaging $128,754, despite being given the same information on the subject property, less the price.

Science as a solution

As players in the property scene, being aware of inherent problems and potential solutions is critical to helping you gain a competitive advantage. An understanding of simple decision science theories can provide practical rule-of-thumb solutions.

Source: EdgeProp

BSP urges use of online security features

The Bangko Sentral ng Pilipinas (BSP) on Monday, April 18, has again called on the public, especially digital financial consumers, to make use of “all available security features for online transactions” as protection against cyber fraud.

“The BSP encourages digital financial consumers to enable multiple layers of security features, including multi-factor authentication (MFA), for online transactions in BSP-supervised financial institutions’ (BSFIs) digital platforms,” the BSP said in an advisory.

At the same time, the BSP is reminding all BSFIs to “strictly comply with policies on the management of cyber security risks.”

MFA requires users to verify their identity through several methods before proceeding with a transaction. MFA includes one-time PINs or OTPs, biometric authentications, and mobile banking PINs or MPIN. Authentications are sent through SMS, e-mail, or phone call. Enabled notifications will promptly alert the individual if a transaction was completed.

“The BSP continuously reminds the public that e-safety is everyone’s responsibility,” it said.

The BSP has been strongly advising the public to practice cyber hygiene such as refraining from sharing personal as well as sensitive information, and by using strong passwords and changing them regularly.

It also reminds the public to update device operating systems and to report immediately any suspicious or unusual activities to their banks or digital non-bank service providers.

The BSP has recently approved new rules on banks and non-banks’ robust fraud management systems to build up its cybersecurity resiliency.

BSP Circular No. 1140, which BSP Governor Benjamin E. Diokno signed last March 24, amended the existing IT risk management regulation not just to reinforce consumer education and awareness of cyber threats but also to strengthen cybersecurity and minimize losses due to fraud and cybercriminal activities.

The new circular is part of a comprehensive cybersecurity guidelines that BSP has been preparing.

The BSP is giving BSFIs until end-December 2022 to comply with circular standards, and to show its plan of actions including specific timelines and status before achieving full compliance.

It was in December 2021 when Diokno first announced BSP’s intention to issue stronger regulations on banks’ fraud management systems following the hacking crisis which victimized a number of BDO Unibank Inc. clients. The hacking incident also involved Union Bank of the Philippines.

The Bangko Sentral ng Pilipinas (BSP) on Monday, April 18, has again called on the public, especially digital financial consumers, to make use of “all available security features for online transactions” as protection against cyber fraud.

“The BSP encourages digital financial consumers to enable multiple layers of security features, including multi-factor authentication (MFA), for online transactions in BSP-supervised financial institutions’ (BSFIs) digital platforms,” the BSP said in an advisory.

At the same time, the BSP is reminding all BSFIs to “strictly comply with policies on the management of cyber security risks.”

MFA requires users to verify their identity through several methods before proceeding with a transaction. MFA includes one-time PINs or OTPs, biometric authentications, and mobile banking PINs or MPIN. Authentications are sent through SMS, e-mail, or phone call. Enabled notifications will promptly alert the individual if a transaction was completed.

“The BSP continuously reminds the public that e-safety is everyone’s responsibility,” it said.

The BSP has been strongly advising the public to practice cyber hygiene such as refraining from sharing personal as well as sensitive information, and by using strong passwords and changing them regularly.

It also reminds the public to update device operating systems and to report immediately any suspicious or unusual activities to their banks or digital non-bank service providers.

The BSP has recently approved new rules on banks and non-banks’ robust fraud management systems to build up its cybersecurity resiliency.

BSP Circular No. 1140, which BSP Governor Benjamin E. Diokno signed last March 24, amended the existing IT risk management regulation not just to reinforce consumer education and awareness of cyber threats but also to strengthen cybersecurity and minimize losses due to fraud and cybercriminal activities.

The new circular is part of a comprehensive cybersecurity guidelines that BSP has been preparing.

The BSP is giving BSFIs until end-December 2022 to comply with circular standards, and to show its plan of actions including specific timelines and status before achieving full compliance.

It was in December 2021 when Diokno first announced BSP’s intention to issue stronger regulations on banks’ fraud management systems following the hacking crisis which victimized a number of BDO Unibank Inc. clients. The hacking incident also involved Union Bank of the Philippines.

Source: Manila Bulletin