Market Value VS. Selling Price

Good afternoon.
My question is about the difference between a market value and a selling price.
If the market value of a lot in 1985 was PHP3.64 per sq.m., how much is its market value in 2013?
Additionally, is the market value the basis for the selling price?
Thank you.

Normally, market value and assessed value of a lot is indicated on the tax declaration for the purpose of paying the realty tax, and this assessment made by the local assessor's office where the lot is situated, is being changed from time to time. Market value of a lot indicated on the tax declaration generally is not being considered as the basis of the lot seller on how much he/she sells it to the public, but the current market value on the tax declarations, the selling price on deed of sale, and the BIR zonal value effective at the time of sale are being considered in the payment of the Capital Gains Tax and Documentary Stamp Tax, whichever is higher.
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I am not a lawyer but only sharing my opinion and knowledge through experience.

Hello Ladie.
Thank you very much for taking the time to share your knowledge/experience on the topic.

I have a follow up question.
Ours is a case settled through compromise agreement, approved by the court. Thus, the judgment. For every property left by our father, we the children (A) get 3/4 share while another party (B)gets 1/4. One lot was sold but we have to give the other party (B) their 1/4 share. The other party wants to be paid (monetary not land). In the agreement, it is indicated that we pay them using the market value of the actual payment. Does it mean the current market value of the lot? We've got the current Tax Dec. of the lot and the market value is only P20, 000.00 for the 2 hectare area by the road but hilly or mountainous not flat. However the other party (B) has their own price of the lot amounting to 3 million pesos for the 1/4 share alone. Is their computation right or wrong? Again, the compromise agreement indicated market value only not selling price. I hope you or anyone with knowledge on this matter help us. Thank you.

advise_please2013 wrote:Hello Ladie.
Thank you very much for taking the time to share your knowledge/experience on the topic.

I have a follow up question.
Ours is a case settled through compromise agreement, approved by the court. Thus, the judgment. For every property left by our father, we the children (A) get 3/4 share while another party (B)gets 1/4. One lot was sold but we have to give the other party (B) their 1/4 share. The other party wants to be paid (monetary not land). In the agreement, it is indicated that we pay them using the market value of the actual payment. Does it mean the current market value of the lot? We've got the current Tax Dec. of the lot and the market value is only P20, 000.00 for the 2 hectare area by the road but hilly or mountainous not flat. However the other party (B) has their own price of the lot amounting to 3 million pesos for the 1/4 share alone. Is their computation right or wrong? Again, the compromise agreement indicated market value only not selling price. I hope you or anyone with knowledge on this matter help us. Thank you.

Maybe the lawyer who handled your case in court to arrive to a court judgment of compromise agreement can interpret what it means by "pay them using the market value of the actual payment"? Was the judgment a sharing by land partition? Is there a court judgment waiver that if one party does not want a land share, the land be sold and share the monetary value of the land? Based on my experience, and according to my siblings extrajudicial settlement, whatever is the actual selling price of the land shall be the basis for the sharing or partition. In short, the market value of the land in the Tax Declaration was only P102,000 however we were able to sell it at P250,000 and we paid the Capital Gains Tax and Documentary Tax based on the selling price on the Deed of Sale as it was higher than the market value on the Tax Declaration and the Zonal value of BIR. Hence, we siblings shared the partition based on the P250,000 actual payment when we sold it. Why not ask your lawyer about your disagreement on the interpretation of the court judgment? I only shared to you about our own experience. Good luck...

Thank you so much for sharing your experience/knowledge Ladie. God bless and more power!