10/05/2026
An “open deed of sale” usually means there is a signed Deed of Absolute Sale, but the buyer’s name is left blank or the title was never transferred to the buyer’s name.
Example:
1st Owner (named in title) sold to 2nd Owner.
2nd Owner did not transfer the title to their own name.
2nd Owner sells again to 3rd Owner using the old deed or another deed.
This is very common in the Philippines, but it is risky.
Risks in this scenario
For the 3rd Owner / New Buyer
Title is still under the 1st owner
Legally, the registered owner is still the person on the title.
The 2nd owner may not have full legal authority anymore if documents are incomplete.
Possible double sale
The property might also be sold to another person.
Fake or invalid documents
Open deeds are often used in fraudulent transactions.
Estate or inheritance problems
If the 1st owner dies, heirs may question the sale.
Tax penalties and transfer problems
Unpaid capital gains tax, DST, transfer tax, or late registration penalties may arise.
Bank financing difficulty
Most banks do not accept open deed transactions.
What TO DO before buying
Verify the title
Go to the Land Registration Authority or Registry of Deeds and get:
Certified True Copy of Title
Check:
owner’s name
annotations
mortgage
adverse claims
lis pendens
Ask for complete document chain
You should see:
Deed from 1st owner → 2nd owner
Deed from 2nd owner → 3rd owner
IDs and signatures of all parties
Tax declaration
Real property tax clearance
Updated tax receipts
Verify taxes
Check with the Bureau of Internal Revenue if:
Capital Gains Tax
Documentary Stamp Tax were already paid for the first sale.
Meet the titled owner if possible
Best practice:
Speak directly with the person named on the title.
Confirm the sale personally.
Execute proper documents
Best and safest:
Make a NEW notarized Deed of Sale directly from titled owner to final buyer whenever possible.
What NOT to do
Do not rely only on photocopies.
Do not pay full amount without verification.
Do not buy if signatures are doubtful.
Do not accept “open deed” only without supporting documents.
Do not skip title verification.
Do not buy rights only unless you fully understand the risk.
Do not transact without notarized documents.
Best and safest way to buy property in the Philippines
Ideal setup
The safest transaction is:
Title is clean
Seller is the registered owner
New notarized Deed of Absolute Sale
Taxes properly paid
Title transferred immediately to buyer’s name
If buying from a 2nd owner whose name is not yet on title
Safest option:
Require the 2nd owner first to transfer the title to their own name before you buy.
Second-best option:
Execute:
acknowledgment/confirmation from original owner
complete deed chain
SPA if applicable
immediate processing of title transfer
