Buying real property in the Philippines is one of the most document-sensitive transactions a person can enter into. A buyer is not merely buying land, a house, a condominium unit, or a commercial space. The buyer is buying legal rights that must be capable of transfer, registration, possession, taxation, and future resale or use.

A clean-looking title is important, but it is not the entire due diligence process. A prudent buyer must verify ownership, authority to sell, title status, taxes, possession, zoning, restrictions, encumbrances, financing, physical condition, and legal risks before paying substantial money.

This article discusses due diligence before buying real property in the Philippines, including titled land, houses and lots, condominium units, agricultural land, inherited property, mortgaged property, foreclosed property, untitled land, and property sold by corporations, heirs, agents, or developers.

This is general legal information and not a substitute for advice from a Philippine lawyer, tax adviser, geodetic engineer, licensed real estate broker, or other qualified professional who can review the actual title, contracts, property documents, and facts.

1. Why due diligence matters

Real estate transactions involve large amounts of money, long-term consequences, and multiple government offices. A buyer who skips due diligence may later discover that:

The seller is not the true owner.
The title is fake, cancelled, reconstituted, or encumbered.
The seller owns only a share, not the whole property.
The property is mortgaged, levied, or involved in litigation.
The land is occupied by tenants, informal settlers, relatives, or lessees.
The property has unpaid real property taxes or association dues.
The land is agricultural, protected, or subject to agrarian restrictions.
The buyer cannot transfer the title.
The property cannot be used for the buyer’s intended purpose.
A spouse, heir, co-owner, or corporation did not validly consent.
A right of way, boundary, zoning, or subdivision problem exists.
The deed is defective or cannot be registered.

Due diligence is cheaper than litigation.

2. The basic rule: verify everything before paying

A buyer should never rely solely on:

A photocopy of title.
Verbal assurances.
Broker statements.
Seller’s possession of the owner’s duplicate title.
Tax declaration alone.
Barangay certification alone.
Social media advertisements.
Screenshots of documents.
“Rush sale” explanations.
Promises that missing documents will follow later.

Real estate due diligence should be document-based, office-verified, and transaction-specific.

The buyer should independently verify documents with the Registry of Deeds, Assessor’s Office, Treasurer’s Office, homeowners’ association or condominium corporation, developer, court records where relevant, and other government offices depending on the property.

3. Identify the type of property being purchased

Different properties require different due diligence.

Common property types include:

Titled residential lot.
House and lot.
Condominium unit.
Parking slot.
Commercial condominium unit.
Subdivision lot.
Agricultural land.
Industrial land.
Foreclosed property.
Property from deceased owner’s estate.
Property owned by a corporation.
Property under installment from a developer.
Untitled land or possessory rights.
Tax declaration property.
Public land rights, award, or patent property.
Property with tenants or occupants.
Property under lease or long-term occupancy.
Property under litigation.

The buyer should first ask: What exactly am I buying?

The answer may be ownership, co-ownership share, condominium unit, hereditary rights, leasehold rights, possessory rights, assignment of contract rights, or improvements only.

4. Verify the seller’s identity and legal capacity

The seller must have legal capacity to sell.

For individual sellers, verify:

Full legal name.
Government-issued IDs.
Tax Identification Number.
Civil status.
Citizenship.
Age.
Address.
Signature consistency.
Spousal consent where required.
Whether the seller is acting personally or through an attorney-in-fact.

For married sellers, determine whether the property is exclusive, conjugal, or community property. The spouse may need to sign, even if only one spouse appears on the title, depending on the property regime and circumstances.

For elderly sellers or sellers with possible incapacity, ensure the sale is voluntary and legally valid. If the seller is incapacitated, under guardianship, or unable to understand the transaction, court authority or other legal safeguards may be required.

5. Confirm the seller’s ownership

Ownership should be verified through the title and supporting documents.

For titled land, obtain a certified true copy of the title from the Registry of Deeds. Do not rely only on the owner’s duplicate copy.

Check:

Name of registered owner.
Title number.
Location.
Lot number.
Survey number.
Area.
Technical description.
Memorandum of encumbrances.
Date of issuance.
Registry of Deeds details.
Whether the title is an Original Certificate of Title, Transfer Certificate of Title, or Condominium Certificate of Title.

If the seller’s name is not on the title, ask why. The seller may be:

An heir.
A buyer under an unregistered deed.
An attorney-in-fact.
An assignee.
A corporation’s representative.
A developer.
A co-owner.
A mortgagee.
A judicial administrator.
A person selling “rights” only.

Each situation requires additional documents.

6. Get a certified true copy of the title

The certified true copy from the Registry of Deeds is one of the most important due diligence documents.

Compare the certified true copy with the seller’s owner’s duplicate title. They should match.

Look for:

Spelling differences.
Alterations.
Missing pages.
Different title numbers.
Different technical descriptions.
Different annotations.
Suspicious erasures.
Missing encumbrances.
Unusual font or formatting.
Reconstituted title markings.
Old annotations carried over from previous titles.

A buyer should be wary if the seller refuses to allow title verification.

7. Understand the Torrens title system, but do not be complacent

The Torrens system gives strong protection to registered titles. However, buyers are still expected to exercise diligence, especially where there are signs of irregularity.

A buyer who ignores red flags may not be treated as an innocent purchaser in good faith.

Red flags include:

Very low price.
Seller not in possession.
Property occupied by others.
Title recently transferred.
Seller rushing the transaction.
Title has adverse claim or lis pendens.
Seller’s name differs from documents.
Seller is abroad and represented only by questionable SPA.
Property is being sold by only one heir or co-owner.
The owner’s duplicate title is missing.
The title is reconstituted.
The property is in a disputed area.
The tax declaration does not match title details.
The land area on the ground differs from title area.
The broker discourages legal review.

Good faith requires inquiry when circumstances are suspicious.

8. Examine the memorandum of encumbrances

The back portion or annotations section of the title may reveal legal burdens.

Check for:

Mortgage.
Real estate mortgage.
Chattel mortgage affecting improvements.
Notice of lis pendens.
Adverse claim.
Attachment.
Levy.
Execution sale.
Tax lien.
Easement.
Right of way.
Restrictions.
Lease annotation.
Notice of land reform coverage.
Homeowners’ association restriction.
Subdivision restriction.
Developer restriction.
Court order.
Guardianship or estate proceeding.
Free patent or homestead restriction.
Reconstitution notation.
Co-ownership annotation.
Notice of pending case.

If there is an annotation, do not assume it is harmless. Ask what it means and require documentary proof that it has been cancelled, satisfied, or can be dealt with before transfer.

9. Check if the property is mortgaged

If the title has a mortgage annotation, the buyer must determine:

Who the mortgagee is.
Outstanding loan balance.
Whether the seller is in default.
Whether foreclosure has started.
Whether the mortgagee consents to sale.
Whether the mortgage will be paid from the purchase price.
How and when the title will be released.
Who will process cancellation of mortgage.
Whether the buyer will pay the bank directly.
Whether escrow is needed.

A safe structure is often to pay the loan balance directly to the mortgagee, obtain release documents, and pay the seller only the net proceeds.

Do not pay the full price to the seller while the mortgage remains unresolved.

10. Check for pending litigation

A notice of lis pendens on the title is a major warning. It means the property is subject to pending litigation affecting title or possession.

But absence of lis pendens does not guarantee absence of disputes.

Ask about:

Annulment of title.
Reconveyance.
Quieting of title.
Partition.
Ejectment.
Recovery of possession.
Boundary dispute.
Foreclosure.
Estate settlement.
Agrarian dispute.
Land registration case.
Injunction.
Expropriation.
Tax sale.
Homeowners’ association dispute.
Condominium collection case.

Where the property value is high or red flags exist, a buyer should consider court and local inquiries.

11. Verify real property tax status

Request from the local treasurer:

Real property tax clearance.
Latest real property tax receipts.
Statement of account.
Tax declaration for land.
Tax declaration for building or improvements.
Tax declaration for machinery, if applicable.

Unpaid real property taxes can create problems. The buyer should determine whether taxes are updated and who will pay arrears, penalties, and current-year taxes.

If the property has improvements, such as a house or building, check whether the improvements are separately declared and taxed.

12. Review the tax declaration

A tax declaration is not a title, but it is still important.

Check:

Declared owner.
Property index number.
Location.
Classification.
Market value.
Assessed value.
Area.
Boundaries.
Improvements.
Effectivity year.
Whether the tax declaration matches the title.
Whether the seller has been paying taxes.

Discrepancies should be investigated. A tax declaration may show a different area, classification, or declared owner from the title.

13. Physically inspect the property

A buyer must inspect the property personally or through a trusted representative.

Check:

Actual location.
Boundaries.
Access road.
Fences.
Gates.
Structures.
Informal settlers.
Tenants.
Caretakers.
Occupants.
Encroachments.
Easements.
Drainage.
Flooding.
Slope.
Soil condition.
Road widening risk.
Utilities.
Neighboring uses.
Noise.
Security.
Actual use of land.

A title may be clean, but possession and physical condition may still create serious problems.

14. Conduct a relocation or boundary survey

For land purchases, especially raw land, rural land, agricultural land, or large lots, hire a licensed geodetic engineer to conduct a relocation survey.

A survey can reveal:

Encroachments by neighbors.
Encroachments by the seller.
Incorrect fences.
Overlapping claims.
Missing monuments.
Road-right-of-way issues.
Technical description problems.
Area discrepancy.
Whether the property shown by the seller is the same property in the title.

Do not assume that the fenced area is the titled area.

15. Check access and right of way

A property may have a title but no practical access.

Ask:

Does the property directly abut a public road?
Is the road public or private?
Is there a registered right of way?
Is access merely tolerated by neighbors?
Is the road inside a subdivision?
Are road lots donated to the local government?
Is there a gate controlled by another owner?
Is access wide enough for the intended use?
Can utilities pass through the access?
Are there pending disputes over access?

Lack of legal access can greatly reduce property value and usability.

16. Check possession and occupants

Possession is crucial.

Determine:

Who occupies the property?
Is the seller in possession?
Is there a tenant?
Is there a lessee?
Are relatives living there?
Are there informal settlers?
Is there a caretaker?
Is anyone claiming ownership?
Are agricultural tenants present?
Is there a written lease?
Are there verbal occupancy arrangements?
Will the buyer receive vacant possession?

If the property is occupied, the deed should clearly state whether the buyer is purchasing with or without occupants, and who is responsible for ejectment, relocation, or turnover.

Buying “as is, where is” may mean accepting possession problems.

17. Check for leases and long-term occupancy

Ask for copies of:

Lease agreements.
Sublease agreements.
Occupancy permits.
Caretaker agreements.
Rent receipts.
Deposit records.
Letters from tenants.
Commercial lease terms.
Agricultural tenancy documents.

A buyer may be bound by certain leases or may need to respect tenant rights. If the buyer intends to occupy or develop the property, existing occupants can become a major issue.

18. Check zoning and land use

Before buying, verify whether the buyer’s intended use is allowed.

Request or check:

Zoning certificate.
Locational clearance.
Comprehensive land use plan classification.
Building restrictions.
Subdivision restrictions.
Homeowners’ association rules.
Condominium master deed.
Environmental restrictions.
Road widening plans.
Protected area status.
Heritage restrictions.
Flood hazard classification.
National or local infrastructure projects.

A property that is perfect for residential use may be unsuitable for commercial, industrial, warehouse, farming, subdivision, or mixed-use development.

19. Check subdivision restrictions

For subdivision lots, review:

Deed restrictions.
Homeowners’ association rules.
Architectural guidelines.
Setback requirements.
Height limits.
Use restrictions.
Prohibition on businesses.
Fence rules.
Parking rules.
Construction bonds.
Association dues.
Transfer fees.
Membership requirements.
Developer approvals.
Right of first refusal, if any.

Some subdivisions impose strict restrictions that affect building plans and future resale.

20. Due diligence for condominium units

For condominiums, review:

Certified true copy of Condominium Certificate of Title.
Master deed.
Declaration of restrictions.
Condominium corporation by-laws.
House rules.
Association dues clearance.
Real property tax clearance.
Utility arrears.
Move-in and move-out rules.
Parking rights.
Storage rights.
Special assessments.
Insurance.
Pending condominium corporation disputes.
Short-term rental restrictions.
Pet rules.
Use restrictions.
Foreign ownership limits, where applicable.

Check whether parking is separately titled, assigned, leased, or merely included by practice. A parking slot may have its own CCT or a separate contract.

21. Check condominium foreign ownership limits

Foreigners may generally own condominium units subject to nationality limitations under condominium law. However, foreigners generally cannot own land in the Philippines, except in limited cases such as hereditary succession.

For condominium purchases involving foreign buyers, check:

Current foreign ownership percentage.
Developer or condominium corporation certification.
Whether the unit can legally be sold to a foreign buyer.
Whether the buyer’s spouse or corporation structure raises nationality issues.
Whether the transaction is actually a disguised land purchase.

Do not assume every condominium unit is automatically available to foreign buyers.

22. Due diligence for house and lot

For a house and lot, investigate both land and improvements.

Check:

Title to the land.
Tax declaration for land.
Tax declaration for building.
Building permit.
Occupancy permit.
Approved plans.
Electrical permit.
Sanitary permit.
Fire safety documents, if applicable.
Structural condition.
Utilities.
Septic tank or sewer connection.
Flooding history.
Termite or pest issues.
Renovations.
Encroachments.
Setback compliance.
Association restrictions.
Real property tax on improvements.

A house may exist physically but may not be properly declared or permitted.

23. Due diligence for agricultural land

Agricultural land requires special caution.

Check:

DAR coverage.
Agrarian reform restrictions.
Tenancy claims.
Farmer-beneficiary rights.
Certificate of Land Ownership Award issues.
Conversion requirements.
Land use classification.
Irrigation status.
Protected land or forest classification.
Ancestral domain claims.
Free patent or homestead restrictions.
Retention limits.
Ownership restrictions.
Road access.
Actual cultivation and occupants.

A buyer intending to convert agricultural land to residential, commercial, or industrial use should verify conversion requirements before purchase.

24. Due diligence for untitled land

Untitled land is significantly riskier than titled land.

The buyer should investigate:

Tax declaration history.
Chain of possession.
Deeds of sale.
Affidavits of ownership.
Survey plan.
DENR land classification.
Whether land is alienable and disposable.
Whether land is forest land, timberland, foreshore, riverbed, protected land, or public land.
Pending land registration case.
Competing claimants.
Occupants.
Barangay and municipal records.
Ancestral domain issues.
Agrarian issues.

A buyer of untitled land may be buying only possessory rights, not registered ownership. The contract should accurately state what is being sold.

25. Beware of “rights only” sales

Some sellers advertise “rights” to land. This may mean they do not own titled property.

A sale of rights may involve:

Possessory rights.
Rights under a contract to sell.
Rights to apply for title.
Informal settler rights.
Award rights.
Leasehold rights.
Hereditary rights.
Beneficial rights.
Improvements only.

Before buying rights, ask:

What exact right is being sold?
Is it transferable?
Who recognizes the right?
Is government approval required?
Is the land private or public?
Can the buyer eventually obtain title?
Are there competing claimants?
Is the seller authorized to assign the right?

A low price may reflect high legal uncertainty.

26. Due diligence for inherited property

If the registered owner is deceased, additional due diligence is required.

Check:

Death certificate.
Heirs.
Surviving spouse.
Marital property regime.
Will, if any.
Judicial or extrajudicial settlement.
Estate tax payment.
BIR certificate authorizing registration.
Publication of extrajudicial settlement.
Authority of administrator or executor.
Signatures of all heirs.
Minors or incapacitated heirs.
Deceased heirs and secondary estates.
Omitted heirs.
Estate debts.
Pending estate proceedings.

Do not buy from only one heir unless the buyer understands that the heir may be selling only his or her share.

27. Due diligence for co-owned property

If the property is co-owned, all co-owners should generally sign if the buyer wants the entire property.

Check:

Names on title.
Shares of co-owners.
Whether co-ownership came from inheritance, purchase, marriage, or partnership.
Whether one co-owner has authority to sell for others.
Whether there is a partition agreement.
Whether any co-owner is abroad, deceased, minor, or incapacitated.

A co-owner cannot ordinarily sell the entire property without authority from the others. The buyer may end up owning only an undivided share.

28. Due diligence for property owned by a corporation

If the seller is a corporation, verify corporate authority.

Request:

SEC registration documents.
Articles of incorporation.
By-laws.
Latest general information sheet.
Board resolution authorizing sale.
Secretary’s certificate.
Valid IDs of authorized signatories.
Corporate TIN.
Proof of authority of representative.
Tax status.
Whether sale is in the ordinary course of business or requires stockholder approval.
Whether the corporation is dissolved, suspended, or under receivership.
Whether the property is corporate asset or held in trust.

A person claiming to be president, manager, or agent cannot automatically sell corporate property without proper authority.

29. Due diligence for property sold by an agent or broker

If dealing with a broker or agent, verify:

PRC license for broker, where applicable.
Authority to sell.
Special Power of Attorney or authority from owner.
Scope of authority.
Commission agreement.
Whether the agent can receive payments.
Official receipts.
Seller’s direct confirmation.
Whether the agent is authorized to sign contracts.

Whenever possible, payments should be made directly to the owner or through a verified escrow arrangement, not merely to an agent.

30. Due diligence for sellers abroad

If the owner or heir is abroad, the transaction may be signed through a Special Power of Attorney.

Check:

SPA details.
Whether it specifically authorizes sale of the property.
Property description.
Authority to sign deed, receive payment, pay taxes, process transfer, and deliver title.
Apostille or consular acknowledgment, as applicable.
Valid IDs of principal and attorney-in-fact.
Proof that principal is alive.
Date of SPA.
Whether the SPA has been revoked.
Whether the principal confirms the transaction.

A general SPA may be insufficient for a real estate sale if it does not clearly authorize the act.

31. Death terminates authority of an agent

If a seller claims authority under an SPA signed by a person who has since died, be careful. Agency generally ends upon death of the principal. The attorney-in-fact of a deceased owner usually cannot sell the property based only on the old SPA.

The transaction must instead involve the estate, heirs, administrator, executor, or other legally authorized person.

32. Due diligence for developer sales

For purchases from developers, check:

Developer’s license to sell.
Certificate of registration for the project.
Approved subdivision or condominium plan.
Project permits.
Master deed and restrictions.
Contract to sell.
Payment schedule.
Turnover date.
Maceda Law rights, if applicable.
Refund and cancellation provisions.
Association dues.
Transfer fees.
Title delivery timeline.
Financing conditions.
Construction status.
Developer track record.
Whether the unit or lot is mortgaged to a bank.
Whether the project has pending disputes.

Do not rely only on brochures, sample computation, or verbal promises from sales agents.

33. Due diligence for pre-selling properties

Pre-selling condominium or subdivision units require additional scrutiny.

Check:

Whether the project has a valid license to sell.
Construction timeline.
Completion date.
Turnover conditions.
Penalties for delay.
Buyer’s rights upon default.
Developer’s financing or mortgage over the project.
Escrow or project funding arrangements.
Exact unit location.
Floor plan.
Deliverables and finishes.
Reservation agreement terms.
Cancellation charges.
Refund rules.
Association dues start date.
Title issuance date.

Pre-selling purchases involve future delivery risk.

34. Due diligence for foreclosed properties

Foreclosed properties may be cheaper but riskier.

Check:

Who is selling: bank, buyer at auction, sheriff sale purchaser, government agency, or assignee.
Whether redemption period has expired.
Whether title has consolidated in seller’s name.
Whether occupants remain.
Whether ejectment is needed.
Whether taxes and association dues are updated.
Whether the property is sold “as is, where is.”
Whether there are hidden liens.
Whether previous owner has filed a case.
Whether the foreclosure was judicial or extrajudicial.
Whether the buyer can inspect the interior.

Possession is often the biggest problem in foreclosed properties.

35. Due diligence for properties under installment or contract to sell

Sometimes the seller does not yet have title but has rights under a contract to sell with a developer.

The buyer may be buying an assignment of rights.

Check:

Original contract to sell.
Developer consent to assignment.
Balance payable.
Penalties and arrears.
Transfer fees.
Buyer qualification.
Title issuance timeline.
Whether the original buyer is in default.
Whether the developer recognizes the assignment.
Whether the unit has been turned over.
Whether taxes and dues are paid.

Do not pay the original buyer without written developer approval if required.

36. Check tax consequences of the sale

Real estate sales usually involve taxes and fees, including:

Capital gains tax, where applicable.
Creditable withholding tax, for certain sellers.
Documentary stamp tax.
Local transfer tax.
Registration fees.
Notarial fees.
Real property tax clearance.
Estate tax, if inherited property.
Value-added tax, where applicable.
Broker’s commission.
Association or condominium transfer fees.

The contract should specify who pays which taxes and expenses.

Common practice varies, but often:

Seller pays capital gains tax or withholding tax.
Buyer pays documentary stamp tax, transfer tax, and registration fees.
Parties may agree differently.

Tax allocation should be written clearly.

37. Do not ignore BIR requirements

After notarization, the sale must be reported and taxes paid within applicable deadlines. The Bureau of Internal Revenue issues the Certificate Authorizing Registration or electronic CAR required for title transfer.

A buyer should ensure:

Correct valuation.
Correct taxpayer details.
Correct title and tax declaration details.
Proper tax type.
Timely filing.
Documentary stamp tax payment.
Capital gains tax or withholding tax payment.
Estate tax compliance if applicable.
BIR CAR or eCAR issuance.

Delay can result in penalties and transfer problems.

38. Beware of undervaluation

Some parties agree to state a lower price in the deed to reduce taxes. This is risky.

Possible consequences include:

Tax penalties.
Fraud issues.
Difficulty proving actual price.
Problems if refund or rescission occurs.
Lower basis for future tax computations.
Exposure to claims of simulated or falsified documents.
Issues with banks and regulators.

The deed should reflect the true transaction.

39. Confirm payment structure

Avoid paying the full purchase price before essential conditions are satisfied.

Payment may be structured as:

Reservation fee.
Earnest money.
Down payment.
Escrow deposit.
Payment upon signing.
Payment upon BIR CAR issuance.
Payment upon release of title.
Payment upon delivery of possession.
Final retention after turnover.

The contract should state whether amounts are refundable, forfeitable, or applicable to the purchase price.

40. Use escrow where appropriate

Escrow is useful where documents, taxes, liens, or possession issues remain pending.

Escrow conditions may include:

Delivery of original owner’s duplicate title.
Cancellation of mortgage.
Execution by all sellers.
Payment of estate tax.
Issuance of BIR CAR.
Registration of deed.
Issuance of new title.
Delivery of vacant possession.
Settlement of association dues.
Cancellation of adverse claim.

Escrow reduces the risk that one party performs while the other does not.

41. Understand reservation fees and earnest money

A reservation fee usually holds the property for a limited time while documents are prepared. It may or may not be refundable depending on the agreement.

Earnest money is often treated as proof of the perfection of a sale and forms part of the purchase price unless otherwise agreed.

Because terms vary, the document should clearly state:

Amount.
Purpose.
Deadline.
Conditions.
Refundability.
Forfeiture.
Whether it forms part of the price.
What happens if due diligence fails.
What happens if the seller backs out.
What happens if the buyer backs out.

Do not pay reservation money without written terms.

42. Review the deed or contract carefully

The main transaction document may be:

Offer to purchase.
Reservation agreement.
Contract to sell.
Deed of conditional sale.
Deed of absolute sale.
Deed of assignment.
Deed of extrajudicial settlement with sale.
Deed of sale with assumption of mortgage.
Memorandum of agreement.
Escrow agreement.

The document should state:

Full names of parties.
Civil status and citizenship.
Authority of signatories.
Complete property description.
Title number.
Tax declaration number.
Purchase price.
Payment terms.
Tax and expense allocation.
Representations and warranties.
Conditions before closing.
Delivery of possession.
Documents to be delivered.
Default provisions.
Remedies.
Governing law and venue.
Notarial acknowledgment.

A poorly drafted deed can create registration and litigation problems.

43. Contract to sell versus deed of sale

A contract to sell usually means ownership will transfer only after the buyer completes payment or conditions. The seller reserves ownership until full performance.

A deed of absolute sale generally transfers ownership upon execution and delivery, subject to registration requirements for third persons.

Using the wrong document can create confusion. For installment purchases, a contract to sell may be more appropriate. For fully paid transactions ready for transfer, a deed of absolute sale may be used.

44. Check notarial validity

A deed affecting real property should be properly notarized.

Check:

Proper acknowledgment.
Personal appearance of parties.
Valid competent evidence of identity.
Notary commission.
Notarial register entry.
Date and place of notarization.
Complete document pages.
Signatures on all pages, where appropriate.

Improper notarization may cause registration issues and evidentiary problems.

45. Register the sale promptly

A buyer should not leave the deed unregistered for a long time.

Registration protects the buyer against later transactions, liens, adverse claims, or disputes.

The usual post-sale process includes:

Notarization.
Tax filing and payment.
BIR CAR or eCAR issuance.
Local transfer tax payment.
Registry of Deeds registration.
Cancellation of old title.
Issuance of new title.
Transfer of tax declaration.
Update of association or condominium records.

Delay can be costly.

46. Transfer the tax declaration

After the title is transferred, the buyer should transfer the tax declaration with the Assessor’s Office.

This ensures:

Real property tax billing goes to the buyer.
Local records match the title.
Improvements are properly declared.
Future permits and resale are easier.
Tax obligations are tracked correctly.

Title transfer and tax declaration transfer are separate steps.

47. Check utilities and service accounts

For houses, lots with improvements, and condominium units, check:

Electricity account.
Water account.
Internet account.
Association dues.
Garbage fees.
Parking dues.
Building dues.
Utility arrears.
Meter ownership.
Disconnection risk.
Transfer requirements.

The contract should state who pays unpaid utilities and when accounts will be transferred.

48. Check homeowners’ association or condominium dues

For subdivision or condominium properties, request clearance from the homeowners’ association or condominium corporation.

Check:

Unpaid dues.
Special assessments.
Penalties.
Construction bond.
Transfer fees.
Move-in fees.
Parking dues.
Water or utility charges.
Pending violations.
Use restrictions.
Approval requirements.

Unpaid dues may cause problems with turnover, renovation, or use.

49. Environmental and hazard due diligence

Depending on location and intended use, check:

Flooding history.
Landslide risk.
Fault line proximity.
Liquefaction risk.
Coastal hazards.
Protected area status.
Watershed restrictions.
Drainage.
Soil stability.
Contamination.
Industrial pollution.
Easements along waterways.
National or local disaster risk maps.

A property may be legally transferable but physically risky or expensive to develop.

50. Check road widening and expropriation risk

Ask the local government or relevant agencies whether the property is affected by:

Road widening.
Infrastructure projects.
Right-of-way acquisition.
Railway projects.
Drainage projects.
Expropriation plans.
Setback requirements.
Easement requirements.

A property fronting a road may lose a portion to future widening.

51. Check building permits and occupancy permits

For improved properties, request:

Building permit.
Occupancy permit.
Electrical permit.
Sanitary permit.
Fire safety inspection certificate, if applicable.
Renovation permits.
Approved plans.
Completion certificate, if available.

Unauthorized construction may cause penalties, demolition orders, insurance problems, or resale issues.

52. Inspect structural condition

For houses and buildings, legal due diligence should be paired with technical inspection.

Check:

Foundation.
Structural cracks.
Roof leaks.
Electrical wiring.
Plumbing.
Drainage.
Termite damage.
Water damage.
Septic system.
Fire safety.
Retaining walls.
Unpermitted extensions.
Compliance with setbacks.
Renovation quality.

Consider hiring an engineer or architect for high-value purchases.

53. Check if the property is subject to easements

Easements may affect use and value.

Common easements include:

Right of way.
Drainage.
Waterway easement.
Utility easement.
Transmission line easement.
Road setback.
Party wall.
Light and view restrictions.
Legal easements along rivers, creeks, shores, or roads.

Easements may appear on title, survey plans, subdivision plans, or local regulations.

54. Check if the property is under land reform or government restrictions

Some titles carry restrictions from:

Free patent.
Homestead patent.
Agrarian reform award.
Socialized housing award.
Government housing programs.
Resettlement programs.
Public land grants.
Indigenous peoples’ rights.
Protected area laws.
Foreshore lease.
Timberland or forest classification.

These may limit sale, mortgage, transfer, conversion, or use.

55. Verify citizenship and nationality restrictions

Philippine land ownership is generally reserved for Filipino citizens and qualified Philippine corporations. Foreigners generally cannot own private land, subject to limited exceptions.

Foreigners may have options such as:

Condominium ownership within nationality limits.
Long-term lease.
Ownership through hereditary succession, where legally applicable.
Investment through lawful corporate structures, subject to nationality restrictions.

Avoid dummy arrangements. A transaction designed to evade constitutional nationality restrictions may be void or legally dangerous.

56. Check corporate buyer authority

If the buyer is a corporation, verify that the corporation is authorized to buy and hold real property.

Check:

Corporate purpose.
Nationality requirements.
Board approval.
Secretary’s certificate.
Authorized signatories.
SEC status.
Beneficial ownership concerns.
Tax registration.

For corporations with foreign ownership, landholding restrictions must be carefully reviewed.

57. Check financing and mortgage conditions

If the buyer will finance the purchase through a bank loan, check:

Appraised value.
Loan approval.
Equity requirement.
Mortgage requirements.
Bank-accredited appraiser.
Insurance.
Title acceptability.
Seller cooperation.
Timing of loan release.
Who receives loan proceeds.
Conditions before release.
Bank charges.
Annotation of mortgage.

The sale contract should address what happens if the buyer’s loan is denied.

58. Check if the property is acceptable to banks

Even if the buyer is paying cash, bank acceptability matters for future resale or refinancing.

Banks may reject or discount properties with:

Title defects.
Access problems.
Agricultural restrictions.
Occupancy problems.
Unregistered subdivisions.
Litigation.
Reconstituted titles.
Flood-prone locations.
Informal settlers.
Road right-of-way issues.
Zoning problems.

A bank’s refusal to finance can signal due diligence issues.

59. Check whether the price is realistic

A suspiciously low price may indicate hidden risk.

Reasons for low price may include:

Urgent family dispute.
Occupants.
Mortgage default.
Estate tax problems.
Title defects.
Unpaid taxes.
Litigation.
Fake seller.
No access.
Land reform restrictions.
Flooding.
Illegal subdivision.
Foreign ownership issue.
Sale of rights only.

A bargain can still be legitimate, but the buyer should investigate why the price is low.

60. Confirm broker’s commission and who pays it

Broker’s commission should be clarified early.

Check:

Who engaged the broker.
Who pays commission.
Amount or percentage.
When commission is due.
Whether commission is included in the price.
Whether there are multiple brokers.
Whether broker has authority to receive payment.
Whether broker is licensed.

Commission disputes can delay closing.

61. Check for duplicate sales

A dishonest seller may sell the same property to multiple buyers. Prompt registration is the best protection.

Warning signs include:

Seller refuses to surrender owner’s duplicate title.
Seller insists on unregistered deed.
Seller wants full payment before notarization.
Seller delays BIR processing.
Seller has multiple brokers.
Seller avoids direct meetings.
Property is advertised even after payment.
Seller offers only photocopies.

Use escrow, verify title, and register promptly.

62. Check for fake titles and forged documents

Fraud may involve:

Fake owner’s duplicate title.
Fake certified true copy.
Fake tax declaration.
Fake SPA.
Fake IDs.
Fake death certificate.
Fake board resolution.
Fake notarial seal.
Fake broker license.
Fake developer documents.

Verification with issuing offices is essential.

63. Review warranties in the contract

Seller warranties should cover:

Ownership.
Authority to sell.
Absence of liens, unless disclosed.
Absence of claims and litigation.
Taxes and dues status.
No undisclosed occupants or leases.
No pending expropriation or government notices known to seller.
Accuracy of documents.
Validity of signatures.
Cooperation in transfer.
Indemnity for breach.

Strong warranties help allocate risk, though they cannot replace due diligence.

64. Include remedies for default

The contract should state what happens if:

Buyer fails to pay.
Seller fails to deliver title.
Seller fails to clear mortgage.
Seller fails to deliver possession.
BIR transfer is delayed.
Title cannot be transferred.
Buyer’s financing is denied.
Hidden liens appear.
Occupants refuse to vacate.
Documents are defective.
One party backs out.

Remedies may include refund, forfeiture, damages, specific performance, cancellation, or retention.

65. Avoid informal handwritten agreements for major purchases

Handwritten receipts and simple acknowledgments may be insufficient for complex real estate transactions.

A proper written contract should address:

Price.
Property description.
Conditions.
Deadlines.
Taxes.
Transfer process.
Possession.
Documents.
Defaults.
Refunds.
Representations.

A receipt alone may not protect the buyer.

66. Buyer’s document checklist

A prudent buyer should request, as applicable:

Title and ownership documents

Certified true copy of title.
Owner’s duplicate title.
Deed by which seller acquired property.
Prior title, if needed.
Survey plan.
Lot plan.
Vicinity map.
Tax declaration.
Real property tax clearance.
Latest tax receipts.

Seller documents

Valid IDs.
TIN.
Civil status documents.
Marriage certificate.
SPA, if through representative.
Apostille or consular acknowledgment, if abroad.
Board resolution and secretary’s certificate, if corporation.
Estate settlement documents, if inherited.

Property documents

Building permit.
Occupancy permit.
Approved plans.
Utility bills.
Association or condominium clearance.
Lease documents.
Zoning certificate.
Subdivision restrictions.
Condominium master deed.
Homeowners’ association rules.

Tax and transfer documents

Capital gains tax or withholding tax documents.
Documentary stamp tax documents.
BIR CAR or eCAR.
Local transfer tax receipt.
Registration fee receipt.
New title.
New tax declaration.

Transaction documents

Reservation agreement.
Contract to sell.
Deed of sale.
Escrow agreement.
Receipts.
Turnover documents.
Undertakings and warranties.
Authority documents.

67. Red flags checklist

Be cautious if:

Price is too low.
Seller is rushing.
Seller refuses certified title verification.
Seller is not named on title.
Only one heir or co-owner is selling.
Spouse refuses to sign.
Owner is deceased but estate not settled.
Seller is abroad with questionable SPA.
Title has adverse claim or lis pendens.
Title is mortgaged.
Property is occupied by non-sellers.
There are informal settlers.
Taxes are unpaid.
Property has no legal access.
Survey does not match actual boundaries.
Tax declaration conflicts with title.
Property is agricultural but sold as residential.
Developer lacks license to sell.
Broker refuses to identify owner.
Seller wants payment to a third-party account.
Documents are photocopies only.
Notary appears suspicious.
Buyer is discouraged from hiring a lawyer.
Sale is “rights only” but advertised as titled property.
The property is still under a deceased owner’s name.
The title is reconstituted or recently issued after a suspicious chain of transfers.

68. Practical due diligence sequence

A buyer may follow this sequence:

Identify the exact property and type of rights being sold.
Verify seller identity and authority.
Obtain certified true copy of title.
Compare title with owner’s duplicate.
Review annotations and encumbrances.
Check tax declaration and real property tax clearance.
Inspect the property physically.
Conduct survey or relocation if land.
Check possession and occupants.
Verify zoning and land use.
Check association, condominium, or subdivision restrictions.
Review leases, dues, utilities, and permits.
Check special issues: estate, corporation, mortgage, agriculture, foreigners, developer sale.
Negotiate price, taxes, expenses, and payment structure.
Draft protective contract.
Use escrow or staged payment where needed.
Execute and notarize documents properly.
File and pay taxes on time.
Obtain BIR CAR or eCAR.
Register with Registry of Deeds.
Transfer tax declaration.
Secure possession and turnover.
Keep complete records.

69. Special note on “as is, where is” sales

“As is, where is” means the buyer accepts the property in its existing condition, often including physical and possession risks.

This phrase is common in foreclosed properties and distressed sales.

Before agreeing, the buyer should understand whether it covers:

Occupants.
Structural defects.
Utility arrears.
Unpaid dues.
Boundary issues.
Missing permits.
Title issues.
Tax liabilities.
Need for ejectment.
Repairs.

Even in an “as is, where is” sale, the seller should not commit fraud or conceal material defects.

70. Special note on possession turnover

A buyer should not assume that title transfer equals possession.

The contract should state:

Turnover date.
Condition of turnover.
Whether vacant possession is required.
Who removes occupants.
Who pays utilities until turnover.
Inventory of keys, documents, and items.
Penalty for delay.
Condition of improvements.
Risk of loss before turnover.

For occupied property, possession terms are critical.

71. Special note on risk of loss

The contract should state who bears risk if the property is damaged by fire, flood, earthquake, demolition, vandalism, or other events before full payment or turnover.

This is especially important for:

Installment sales.
Long closing periods.
Houses and buildings.
Foreclosed properties.
Properties with occupants.
Pre-selling units.

72. Special note on insurance

For improved properties, check:

Fire insurance.
Property insurance.
Mortgage redemption insurance, if financed.
Condominium building insurance.
Association insurance.
Coverage exclusions.

The buyer may need new insurance after transfer.

73. Special note on family homes

If the property is a family home, additional legal considerations may arise, especially in relation to spouses, children, creditors, and execution. A lawyer should review if there are signs that family home protections or family disputes may affect the transaction.

74. Special note on minors and incapacitated persons

If an owner, heir, or co-owner is a minor or incapacitated, the sale may require:

Legal guardian authority.
Court approval.
Proof of necessity or benefit.
Proper representation.
Protection of the minor’s share.

Do not rely on a parent’s signature alone without checking legal requirements.

75. Special note on marital consent

Property relations between spouses matter.

Ask:

When was the property acquired?
When were the spouses married?
Was there a marriage settlement?
Is the property exclusive, conjugal, or community?
Is the spouse alive?
Are the spouses separated?
Is there annulment, legal separation, or nullity case?
Is court approval needed for any disposition?

A missing spouse signature can create serious problems.

76. Special note on pending annulment or family disputes

If the seller is involved in marital, inheritance, or family litigation, the property may be disputed. Check whether:

The spouse consents.
The property is part of a family court case.
There is a property settlement.
There is a pending estate case.
There is a notice of lis pendens.
Heirs or relatives object to the sale.

Family disputes often become title disputes.

77. Special note on adverse possession and long-term occupants

Long-term occupants may claim rights based on ownership, lease, tenancy, tolerance, prescription, or other grounds. Even if their claim is weak, removing them may take time and litigation.

Do not underestimate possession problems. A buyer may win the title but spend years recovering physical possession.

78. Special note on informal settlers

Buying property occupied by informal settlers requires careful planning.

Check:

Number of occupants.
Basis of stay.
Structures.
Length of occupancy.
Prior notices.
Pending ejectment cases.
Relocation issues.
Local government involvement.
Demolition requirements.
Humanitarian and legal procedures.
Cost and timeline for clearing.

A property with informal settlers may be difficult to develop immediately.

79. Special note on ancestral domain and indigenous peoples’ rights

For rural, ancestral, mountainous, or indigenous community areas, check whether the land may be affected by ancestral domain claims or indigenous peoples’ rights.

A titled property may still face practical and legal issues if community claims, certificates, or consent requirements are involved.

80. Special note on foreshore, waterways, and reclaimed areas

Properties near beaches, rivers, lakes, creeks, and reclaimed land require special due diligence.

Check:

Foreshore lease.
Public easements.
Salvage zones.
Environmental restrictions.
DENR classification.
Reclamation authority.
Shoreline changes.
Titles over reclaimed land.
Flood and storm surge risk.
Waterway easements.

Not all land beside water is privately alienable.

81. Special note on overlapping titles

Some areas in the Philippines have overlapping titles, defective surveys, or competing claims. Red flags include:

Multiple claimants.
Boundary disputes.
Old Spanish titles.
Reconstituted titles.
Inconsistent survey data.
Different lot numbers for same property.
Conflicting tax declarations.
Neighbors contesting boundaries.

A geodetic engineer and lawyer should review these cases.

82. Special note on reconstituted titles

A reconstituted title is not automatically invalid, but it deserves closer review.

Ask:

Why was the title reconstituted?
Was reconstitution judicial or administrative?
Are source documents complete?
Are there competing titles?
Are prior transactions traceable?
Does the Registry of Deeds confirm validity?
Are there court records?
Are there annotations about reconstitution?

Reconstituted titles have been used in some fraud cases, so proceed carefully.

83. Special note on lost owner’s duplicate title

If the owner’s duplicate title is lost, the seller may need court or administrative proceedings for replacement, depending on circumstances.

A buyer should not pay in full based only on a promise that the title will be replaced.

Use conditions, escrow, or wait until the replacement title is properly issued.

84. Special note on adverse claims

An adverse claim annotation means someone else is asserting a right over the property. It should not be ignored.

Ask:

Who filed it?
What is the basis?
Has it expired?
Was it cancelled?
Is there a related court case?
Can the Register of Deeds cancel it?
Will the buyer take subject to it?

A seller’s statement that the adverse claim is “nothing” is insufficient.

85. Special note on lis pendens

A notice of lis pendens warns that the property is involved in litigation affecting title or possession. Buying property with lis pendens usually means the buyer is bound by the result of the case.

Proceed only with legal advice.

86. Special note on unpaid association dues

For condominium and subdivision properties, unpaid dues can be substantial. They may also block transfer, move-in, renovation, or use.

Always secure clearance before closing or require the seller to settle dues at closing.

87. Special note on improvements owned by another person

Sometimes the landowner and building owner are different persons. For example, a house may be built by a lessee, relative, or informal occupant.

Check who owns:

House.
Building.
Warehouse.
Crops.
Trees.
Machinery.
Fences.
Water system.
Fixtures.
Solar panels.
Tenant improvements.

The buyer should know whether improvements are included in the sale.

88. Special note on fixtures and inclusions

For houses and condominiums, specify what is included:

Air conditioners.
Cabinets.
Appliances.
Lighting fixtures.
Furniture.
Water heaters.
Security cameras.
Curtains.
Modular kitchen.
Solar panels.
Generators.
Parking rights.
Storage cages.

Attach an inventory if needed.

89. Special note on value-added tax

Some sales by developers or persons engaged in real estate business may involve VAT or other tax treatment different from ordinary capital gains tax transactions.

The buyer should clarify whether the price is VAT-inclusive or VAT-exclusive.

Unexpected VAT can materially affect the total cost.

90. Special note on withholding tax

If the seller is a corporation or person engaged in real estate business, creditable withholding tax may apply instead of ordinary capital gains tax treatment.

This should be reviewed before signing because it affects tax filings and closing costs.

91. Special note on estate tax and inherited property

If the property came from a deceased owner, title transfer may require estate tax compliance. Estate tax problems can delay or prevent issuance of a new title.

A buyer should not assume that heirs have already handled estate tax simply because they possess the title.

92. Special note on tax amnesty

Estate tax amnesty or other tax relief programs may sometimes affect inherited property. Availability depends on current law and deadlines. Because tax rules change, buyers should consult a tax adviser or relevant office for current requirements.

93. Special note on local transfer procedures

Different local government units and Registry of Deeds offices may have practical documentary requirements. Before closing, ask what documents are needed for:

Local transfer tax.
Tax clearance.
Assessor transfer.
Registry registration.
Issuance of new title.
New tax declaration.

A missing document can delay transfer.

94. Special note on notarization abroad

Documents signed abroad may require apostille or consular acknowledgment, depending on where signed and applicable rules.

For real estate transactions, ensure the document is acceptable to the BIR, Registry of Deeds, and other offices before relying on it.

95. Special note on IDs and TINs

Tax and registration processes require correct identification and taxpayer details.

Check:

Seller TIN.
Buyer TIN.
Correct spelling of names.
Middle names.
Civil status.
Address.
Citizenship.
Birthdate.
Corporate registration details.
Authorized representative details.

Small errors can delay BIR or Registry processing.

96. Special note on sale by attorney-in-fact

If an attorney-in-fact signs, confirm that the SPA authorizes:

Sale of the specific property.
Signing of deed.
Receipt of purchase price.
Payment of taxes.
Delivery of title.
Processing with BIR.
Registration with Registry of Deeds.
Signing of additional forms.

A vague SPA may cause problems.

97. Special note on notarized but unregistered deeds

A notarized deed of sale does not by itself complete the transfer of title in the buyer’s name. Registration is necessary to update the title and protect the buyer against third parties.

Unregistered deeds can create future problems, especially if:

Seller dies.
Seller sells again.
Creditors annotate liens.
Taxes remain unpaid.
Documents are lost.
Heirs dispute the sale.

98. Special note on possession before full payment

A seller may allow the buyer to occupy before full payment. This should be documented.

Clarify:

Is possession temporary?
Is it lease-like?
Who pays utilities?
Who repairs?
What happens if buyer defaults?
Can buyer renovate?
Who bears risk of loss?
Is buyer allowed to sublease?
Is possession revocable?

Do not rely on informal turnover arrangements.

99. Special note on buyer renovations before title transfer

A buyer should be careful about spending on renovations before title transfer. If the sale fails, recovery of renovation costs may be difficult.

If early renovation is allowed, the contract should state:

Scope of permitted work.
Permits required.
Risk allocation.
Reimbursement if sale fails.
Restoration obligations.
Insurance.
Access rights.

100. Special note on property sold below zonal or market value

Selling below zonal value may raise tax and fraud concerns. BIR tax computations may use zonal value, fair market value, or selling price, depending on applicable rules.

A buyer should not assume taxes are based only on the contract price.

101. Special note on donation disguised as sale

Sometimes parties use a sale to disguise a donation or vice versa. This can create tax and legal consequences, especially among relatives or where the consideration is not actually paid.

The transaction should reflect its true nature.

102. Special note on sale between relatives

Family transactions still require proper documentation and registration.

Risks include:

Future disputes among heirs.
Claims of simulated sale.
Lack of actual payment.
Undue influence.
Missing spouse consent.
Estate planning issues.
Tax consequences.

Do not skip formalities because parties are related.

103. Special note on notarized receipts and “open deeds of sale”

An “open deed of sale” where buyer details are left blank is risky.

Problems include:

Fraud.
Tax evasion.
Unclear transfer chain.
Difficulty proving actual buyer.
Rejection by government offices.
Disputes among parties.
Criminal or tax exposure.

Use properly completed documents.

104. Special note on simultaneous signing and payment

For high-value transactions, closing should be organized.

At closing, confirm:

Original title present.
Seller IDs present.
All signatories present.
SPA or corporate authority present.
Deed ready.
Tax declarations ready.
RPT clearance ready.
Association clearance ready.
Payment instruments ready.
Receipts ready.
Escrow instructions ready.
Turnover documents ready.

Avoid casual handover of cash without documentation.

105. Special note on cash payments

Large cash payments are risky.

Risks include:

No clear proof.
Theft or loss.
AML concerns.
Tax questions.
Disputes over amount.
Fake receipts.
Difficulty tracing.

Use manager’s checks, bank transfers, escrow, or other traceable methods where possible. Always obtain receipts.

106. Special note on payment to third parties

If the seller instructs payment to another person, require written authority.

Third-party payment may be legitimate, for example to:

Bank mortgagee.
Heir.
Broker for commission.
Creditor.
Escrow agent.
Attorney-in-fact.

But it must be documented to avoid later claims that the seller was not paid.

107. Special note on installment payments to individual sellers

If the buyer pays in installments, protect both sides with a clear contract.

Include:

Payment schedule.
Interest, if any.
Default period.
Grace period.
Forfeiture terms.
Refund terms.
Possession terms.
Title retention.
Taxes and expenses.
Registration timing.
Remedies.

For residential real estate installment sales, special laws may protect buyers in certain circumstances.

108. Special note on Maceda Law

The Maceda Law provides protections to buyers of real estate on installment, subject to its coverage and requirements. It may provide grace periods and refund rights depending on payments made and type of transaction.

Buyers purchasing from developers or on installment should ask whether Maceda Law applies.

109. Special note on Recto Law

The Recto Law is usually associated with installment sales of personal property, not real property. Buyers should not confuse it with real estate installment protections.

110. Special note on property flipping

Buyers who intend to resell quickly should check:

Transfer timeline.
Tax costs.
Minimum holding restrictions.
Developer assignment restrictions.
Association transfer rules.
Capital gains tax impact.
VAT or business tax exposure.
Marketability of title.
Possession issues.

A property that is hard to transfer will also be hard to flip.

111. Special note on rental investment

If buying for rental income, check:

Existing leases.
Rental rates.
Tenant payment history.
Security deposits.
Rent control issues, if applicable.
Condominium restrictions.
Short-term rental rules.
Business permit requirements.
Tax obligations on rental income.
Maintenance costs.
Association rules.
Insurance.

Projected rental income should be verified, not assumed.

112. Special note on commercial property

For commercial property, check:

Zoning.
Business permits.
Fire safety compliance.
Occupancy classification.
Environmental permits.
Parking requirements.
Signage rules.
Lease restrictions.
Association or building rules.
Utilities capacity.
Loading access.
Accessibility requirements.
Tax treatment.

Commercial use may require approvals beyond title ownership.

113. Special note on industrial property

For industrial property, check:

Zoning for industrial use.
Environmental compliance.
Hazardous materials history.
Wastewater disposal.
Power capacity.
Road access for trucks.
Fire safety.
Worker housing restrictions.
Local permits.
PEZA or economic zone rules, if applicable.
Neighbor complaints.
Existing contamination.

Environmental liabilities can be expensive.

114. Special note on beach or resort property

For resort or coastal property, check:

Foreshore rights.
Easements.
Environmental compliance.
Protected area status.
Tourism permits.
Water source.
Wastewater system.
Access roads.
Shoreline setbacks.
Coastal erosion.
Ancestral domain claims.
Foreign ownership restrictions.
Business permits.

Beachfront advertisements can be misleading if the beach area is public land.

115. Special note on mountain or farm property

For mountain or farm properties, check:

Slope stability.
Road access.
Water rights.
Land classification.
Agrarian reform issues.
Ancestral domain.
Protected area.
Farm tenants.
Crop ownership.
Right of way.
Disaster risk.
Electricity and communications.

Rural land often has undocumented local arrangements.

116. Special note on title name discrepancies

If the seller’s name differs among title, ID, birth certificate, marriage certificate, or tax records, resolve the discrepancy before closing.

Examples:

Maria Santos Reyes vs. Maria S. Reyes.
Juan dela Cruz Jr. vs. Juan dela Cruz.
Married name vs. maiden name.
Nicknames.
Missing middle name.
Typographical errors.

Government offices may require affidavits, corrected records, or court proceedings depending on the discrepancy.

117. Special note on change of civil status

If the title says the owner is single but the owner later married, or if the property was acquired before marriage but sold during marriage, marital consent issues may still arise.

Ask for current civil status and spouse information.

118. Special note on deceased spouse

If the seller’s spouse is deceased, determine whether the spouse had a share in the property. Estate settlement of the deceased spouse may be required before sale.

This is common when property was conjugal or community property.

119. Special note on double sale

Under Philippine civil law principles, double sale rules can become important where the same property is sold to multiple buyers. Registration, possession, good faith, and timing may matter.

The safest protection is to verify title, avoid suspicious sellers, and register promptly.

120. Special note on buyer’s good faith

A buyer should act as a reasonably prudent person would under the circumstances. If there are red flags, the buyer must inquire.

Good faith may be questioned if the buyer ignored:

Occupants claiming ownership.
Seller not named on title.
Unusually low price.
Adverse annotations.
Missing spouse.
Missing heirs.
Boundary disputes.
Obvious possession by others.
Suspicious documents.

Due diligence helps establish good faith.

121. Questions to ask before buying

Before committing, a buyer should ask:

Who owns the property?
Is the seller named on the title?
Is the title clean?
Are there annotations?
Is the property mortgaged?
Are taxes updated?
Who occupies the property?
Are there tenants?
Are there informal settlers?
Is there legal access?
Does the title match the actual land?
Has a survey been done?
Is the intended use allowed?
Are there association restrictions?
Are there unpaid dues?
Is the property inherited?
Are all heirs or co-owners signing?
Is spouse consent needed?
Is the seller abroad?
Is the SPA valid?
Is the property agricultural?
Are there land reform issues?
Is the buyer legally allowed to own it?
Who pays taxes and fees?
When will title transfer occur?
When will possession be delivered?
What happens if transfer fails?
What documents will be delivered?
Is escrow needed?
Has a lawyer reviewed the transaction?

If any answer is unclear, pause before paying.

122. Practical buyer protections

A buyer may protect himself or herself by requiring:

Certified true copy of title.
Original owner’s duplicate title at closing.
Seller warranties.
Spousal consent.
All heirs or co-owners as signatories.
Association and tax clearances.
Survey.
Escrow.
Staged payments.
Retention until title transfer.
Vacant possession condition.
Indemnity for undisclosed claims.
Written tax allocation.
Clear refund clause.
Lawyer review.
Prompt registration.

123. What a lawyer usually reviews

A lawyer may review:

Title.
Annotations.
Seller authority.
Civil status issues.
Estate documents.
Corporate authority.
SPA.
Tax implications.
Draft deed.
Payment protections.
Mortgage release.
Lease issues.
Occupancy issues.
Zoning risks.
Foreign ownership issues.
Remedies and default clauses.
Registrability.

For high-value property, lawyer review is usually worth the cost.

124. What a geodetic engineer usually does

A geodetic engineer may:

Relocate boundaries.
Verify technical description.
Identify encroachments.
Confirm lot location.
Prepare survey plans.
Check subdivision issues.
Assist in consolidation or subdivision.
Compare title with actual possession.

This is especially important for land purchases.

125. What a broker should and should not do

A licensed broker may assist in:

Finding property.
Negotiating price.
Coordinating documents.
Explaining market value.
Communicating with seller.
Coordinating closing.

But a broker should not replace:

Lawyer for legal review.
Tax adviser for tax planning.
Geodetic engineer for survey.
Engineer for structural inspection.
Government office verification.

126. Final due diligence checklist before signing

Before signing the final deed, confirm:

Seller identity verified.
Seller authority verified.
Spouse or co-owner consent secured.
Title certified true copy reviewed.
Owner’s duplicate title available.
Encumbrances resolved or accepted knowingly.
Taxes updated or allocated.
Association dues cleared.
Occupants identified.
Possession terms clear.
Survey completed if needed.
Zoning acceptable.
Restrictions reviewed.
Contract reviewed.
Payment structure safe.
Tax obligations understood.
Transfer process planned.
Documents complete.
Red flags resolved.

127. Final due diligence checklist before releasing full payment

Before full payment, confirm:

Deed signed by all required parties.
Notarization valid.
Original title delivered or controlled.
Mortgage release ready, if applicable.
Tax clearances available.
Association clearances available.
BIR processing arranged.
Escrow conditions satisfied, if any.
Possession turnover ready, if required.
Receipts ready.
No new annotations appeared.
No last-minute disputes arose.

128. Final due diligence checklist after purchase

After closing, the buyer should:

Pay required taxes on time.
Secure BIR CAR or eCAR.
Register deed with Registry of Deeds.
Obtain new title.
Transfer tax declaration.
Update association or condominium records.
Transfer utilities.
Secure possession.
Keep all documents.
Calendar real property tax deadlines.
Obtain insurance if needed.

The transaction is not complete simply because the deed was signed.

Conclusion

Due diligence before buying real property in the Philippines requires more than checking whether a title exists. A prudent buyer verifies ownership, authority, title status, taxes, encumbrances, possession, boundaries, zoning, restrictions, building permits, association dues, and transfer requirements.

The safest transaction is one where the seller is clearly authorized, the title is verified, the property is physically inspected, taxes and dues are settled, all required parties sign, possession is deliverable, and payment is released in a controlled manner tied to objective milestones.

A buyer should be especially careful with inherited property, mortgaged property, co-owned property, untitled land, agricultural land, foreclosed property, “rights only” sales, sellers abroad, corporate sellers, and occupied properties.

The central rule is simple: do not pay substantial money until the buyer knows exactly what is being bought, who has the right to sell it, whether it can be transferred, whether it can be possessed, and whether it can be used for the buyer’s intended purpose.