13/03/2026
📜 WHAT ARE “ENCUMBRANCES” IN A LAND TITLE?
(A Simple Guide for Property Buyers)
If you are planning to buy land or a house in the Philippines, one of the most important things you should examine is the “Encumbrances” section of the title.
Many buyers focus only on who owns the property, but they forget to check the annotations at the back of the title. These annotations may contain legal claims, restrictions, or obligations attached to the property.
Let us break this down.
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📌 What is an Encumbrance?
An encumbrance is any claim, lien, charge, restriction, or legal burden attached to a property that may affect the owner’s full rights over it.
In simple terms:
👉 Even if a person owns the property, the property may still be subject to certain obligations or limitations.
These encumbrances are usually annotated on the title at the Registry of Deeds.
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📌 Why Are Encumbrances Important?
Encumbrances are important because they may:
• prevent the owner from selling the property freely
• give another person a legal right over the property
• create financial obligations attached to the land
• limit how the property can be used
If you buy a property without checking encumbrances, you might unknowingly inherit the legal problems attached to the land.
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📌 Common Examples of Encumbrances in Land Titles
Here are the most common encumbrances you will see in Philippine titles:
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1️⃣ Real Estate Mortgage
This is the most common encumbrance.
It means the property was used as collateral for a loan, usually with a bank.
Example:
A title may contain an annotation such as:
“Real Estate Mortgage in favor of BDO Unibank.”
Meaning:
✔ The owner borrowed money
✔ The property serves as security for the loan
⚠️ If the loan is not paid, the bank may foreclose the property.
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2️⃣ Notice of Levy on Ex*****on
This appears when the property owner lost a case in court and the sheriff levied the property to satisfy a judgment.
Example:
A person loses a civil case and is ordered to pay PHP 2,000,000.
The sheriff places a levy annotation on the property.
Meaning:
⚠️ The property may later be sold at public auction.
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3️⃣ Lis Pendens
“Lis Pendens” literally means a pending lawsuit involving the property.
Example:
Two siblings are fighting in court over ownership of the land.
The plaintiff registers a Notice of Lis Pendens on the title.
Meaning:
⚠️ Anyone who buys the property does so at their own risk, because the ownership is still being decided in court.
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4️⃣ Easement or Right of Way
Sometimes a property is subject to a legal right of passage.
Example:
A neighboring lot has no access to the road, so the court grants a right of way through your property.
Meaning:
✔ Another person has the legal right to pass through your land.
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5️⃣ Deed Restrictions or Subdivision Restrictions
Subdivision developers sometimes annotate restrictions on the title, such as:
• residential use only
• no commercial establishments
• building height limitations
• minimum setback requirements
Meaning:
⚠️ The owner cannot freely use the property for any purpose.
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6️⃣ Adverse Claim
An adverse claim is filed when someone claims a legal interest in the property even if they are not the registered owner.
Example:
A buyer already paid for the land but the seller refuses to transfer the title.
The buyer may register an Adverse Claim.
Meaning:
⚠️ There is a dispute regarding ownership.
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📌 Where Do You See Encumbrances?
Encumbrances appear in the ANNOTATIONS or ENCUMBRANCES section of the title, usually found at the back page of the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT).
Never rely on the front page alone.
Always check:
✔ the last page of the title
✔ the certified true copy from the Registry of Deeds
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📌 Practical Advice Before Buying Property
Before purchasing any land:
1️⃣ Get a Certified True Copy of the Title from the Registry of Deeds
2️⃣ Carefully examine the encumbrances/annotations
3️⃣ Verify if mortgages or liens are already cancelled
4️⃣ Check if there are pending cases (lis pendens)
5️⃣ Consult a lawyer before signing the Deed of Sale
Remember:
⚠️ A clean title is not enough.
You must make sure it is also FREE FROM ENCUMBRANCES.
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📌 Real estate due diligence can save you from losing millions.
