12/12/2024
6 Steps Before Buying Land
Step 1
When a real estate agent arrives and says he sells his LUPA, the first one is a copy of the TITULO.
Because you need to investigate in the REGISTER OF DEEDS. You have a Xerox copy of the land title, you should go there, because who knows, there might be some burdens (problems) with that land: it could be mortgaged or someone else might be claiming it. You need to see that. It should be clean. Because that copy must be exactly the same as the copy of the Register of Deeds. They are not different. So you can tell if it's FAKE, if there are BURDENS, or if there are PROBLEMS with the land.
Step 2
Hire a Geodetic Engineer to conduct a relocation survey on the boundaries to check if the actual ground is okay and to see if there are any structures or fences on the adjacent lot that have encroached. Regarding the property that you will be purchasing.
Step 3
For example, you see that there is actually no problem, everything is fine, you will execute a document called a DEED of SALE. When you execute a DEED of SALE or "Contract of Sale," both the seller and the buyer will sign it, and it will be notarized.
Step 4
Within 1 month from notarization, the first payment will be made. That's called DOCUMENTARY STAMPS. Before the end of the month of signing, you must pay for the DOCUMENTARY STAMPS.
Step 5
After that, the seller will also be the one to pay what is called the CAPITAL GAIN TAX. Because if he earns, he will pay the BIR.
And the BIR will issue the CERTIFICATE OF AUTHORITY TO REGISTER, a certification that informs the Register of Deeds that all taxes have been paid and that you can transfer the title to the buyer's name.
Step 6
Once you've seen that (CERTIFICATE OF AUTHORITY TO REGISTER), you will take it to the Register of Deeds; that's the final step. The Register of Deeds will say, here is the final payment, Transfer Fees. Once that's paid, it's not too expensive, there you go, the Register of Deeds will take care of everything.
You will surrender the OWNERS' COPY of the title and you will just have to wait. And that's when you need a follow-up. Because of the Register of Deeds, that might take a while. That's why follow-up after follow-up is necessary.
