How to Verify if an Online Lending App is Legitimate and SEC Licensed

In the Philippines, the integrity of real estate transactions relies heavily on the Torrens System. This system ensures that once a title is registered under the Land Registration Act, it becomes indefeasible and incontrovertible after one year. For any property buyer or owner, verifying the successful transfer of a title at the Register of Deeds (RD) is the final and most critical step in securing ownership.


1. Understanding the Goal: The Transfer Certificate of Title (TCT)

The primary objective of verifying a transfer is to ensure that a new Transfer Certificate of Title (TCT)—or Condominium Certificate of Title (CCT) for units—has been issued in your name and that the previous owner’s title has been cancelled.

Key Elements to Verify:

  • Title Number: Ensure the new TCT number is distinct from the old one.
  • Owner’s Name: Check for correct spelling and civil status.
  • Technical Description: Confirm the lot area, boundaries, and location match the Deed of Sale.
  • Encumbrances: Check the "Memorandum of Encumbrances" (the back page or subsequent pages) for any existing liens, mortgages, or adverse claims that may have carried over.

2. The Verification Process

Verifying a title transfer involves two levels of scrutiny: Physical Inspection of the document and Official Verification through the LRA (Land Registration Authority) database.

Step A: Requesting a Certified True Copy (CTC)

Do not rely solely on the "Owner’s Duplicate Copy" handed to you by a seller or a broker. To be certain the transfer is reflected in the government's records, you must request a Certified True Copy directly from the RD where the property is located.

  1. Visit the Relevant RD: Titles are jurisdiction-specific. You must go to the RD branch that has authority over the city or municipality where the land is situated.
  2. Provide the Title Number: You will need the TCT number and the name of the registered owner.
  3. Pay the Fees: Pay the required processing fees at the cashier.
  4. Wait for Release: Depending on whether the RD is "digitized" (using the LRA’s Computerization Project), this can take anywhere from an hour to a few days.

Step B: The LRA "Anywhere-to-Anywhere" Service

If the specific RD is fully digitized, you may utilize the Anywhere-to-Anywhere (A2A) service. This allows you to request a CTC of a title from any computerized RD branch nationwide, even if the property is located in a different province.


3. Red Flags During Verification

While reviewing the title at the RD, be alert for the following discrepancies:

  • "Cancelled" Watermark: If the title you are holding is marked "Cancelled," the rights have already been transferred to a newer TCT.
  • Active Annotations: Look for entries such as Lis Pendens (pending litigation), Adverse Claims, or Mortgages. If these appear on your new title, they were not cleared during the transfer process.
  • Standard Forms: Modern titles are printed on security paper with specific textures, watermarks, and fibers. If the paper feels like ordinary legal-size paper, it may be a forgery.

4. The Role of the E-Title

Many older titles (the "Red" or "Yellow" versions) are being converted to e-Titles. If you are verifying a recent transfer, the result will likely be a computerized title. This digital record is stored in the LRA central database, making it significantly more difficult to forge than manual, paper-based titles.


5. Documentary Requirements for the Transfer (Reference)

To understand why a transfer might be delayed or stuck at the RD, one must ensure the following "Trail of Documents" was submitted correctly:

  • Original Owner’s Duplicate Copy of the TCT.
  • Deed of Absolute Sale (DOAS) duly notarized.
  • Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR).
  • Transfer Tax Receipt from the Local Government Unit (LGU).
  • Tax Clearance from the City or Municipal Treasurer’s Office.
  • Real Property Tax (RPT) receipts for the current year.

6. Judicial vs. Administrative Verification

In cases where a title is lost or destroyed (e.g., during a fire at the RD), a "Reconstitution of Title" is required. If you are verifying a title that has been reconstituted, it will bear a prefix such as "RT" (for Judicial Reconstitution). These titles are subject to a two-year lien under Section 7 of Republic Act No. 26, which means someone with a better right to the property can still contest the title within that period.

Summary Table: Verification Checklist

Item What to Look For
Serial Number Must match the LRA’s recorded batch for that year.
Registrar’s Signature Must be the incumbent Registrar of Deeds for that jurisdiction.
Entry Number Every transaction is assigned an entry number in the Primary Entry Book.
Seal The embossed seal of the Land Registration Authority should be crisp and clear.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.