10/03/2026
PLANNING TO BUY LAND OR A HOUSE AND LOT? DO YOUR DUE DILIGENCE FIRST.
One of the most common mistakes buyers make is paying a reservation fee or down payment without verifying the property first. Many legal disputes start because buyers rely solely on the sellerโs word.
Before buying any real property in the Philippines, conduct proper due diligence to protect your money and avoid future problems.
Here are the basic steps every buyer should do:
1. Verify the Title at the Registry of Deeds
Ask for a copy of the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT).
Go to the Registry of Deeds and request a Certified True Copy. This allows you to verify:
โข if the title is genuine
โข who the registered owner is
โข if there are mortgages, liens, or encumbrances
Never rely only on a photocopy from the seller.
2. Check for Encumbrances
Look at the back portion of the title.
Check if the property is:
โข mortgaged to a bank
โข subject to a court case
โข covered by a notice of levy or lis pendens
If there is a mortgage, the bank must first release the property before transfer.
3. Verify the Tax Declaration and Real Property Taxes
Visit the City or Municipal Assessorโs Office and verify the Tax Declaration.
Then go to the Treasurerโs Office and check if the Real Property Taxes are updated.
Unpaid taxes can become your problem after the purchase.
4. Inspect the Property Personally
Never buy property without visiting the actual location.
Check:
โข who is occupying the property
โข if there are informal settlers
โข if there are boundary disputes with neighbors
Possession issues can create serious legal problems.
5. Verify the Identity of the Seller
Make sure the seller is the registered owner on the title.
Ask for:
โข valid government IDs
โข marital status
โข spouseโs consent if married
Under Philippine law, spousal consent is usually required in selling conjugal property.
6. Check if the Property is Part of an Estate
If the registered owner is already deceased, the property cannot be sold directly by the heirs unless the estate has been properly settled.
You must verify documents such as:
โข Extrajudicial Settlement of Estate
โข Deed of Partition
โข Estate Tax clearance
Otherwise, the transfer may later be challenged.
7. Use Proper Documentation
Avoid informal agreements.
Always use proper documents such as:
โข Contract to Sell
โข Deed of Absolute Sale
โข Acknowledgment before a Notary Public
Improper documentation can invalidate the transaction.
Final Advice
Buying property is one of the biggest financial decisions you will make. A simple verification can save you from years of litigation and financial loss.
If you are unsure about the documents or the process, it is always best to consult a lawyer before signing anything.
โธป
Know the law. Protect your investment.
