Philippine Legal Context

In the Philippines, land ownership is ideally proven by a Torrens Title (Original or Transfer Certificate of Title). However, a significant portion of land is still "unregistered," with a Tax Declaration (TD) serving as the primary evidence of possession. Buying land covered only by a TD is common but carries substantial legal weight and risk.

I. The Nature of a Tax Declaration

Under Philippine law, specifically settled jurisprudence by the Supreme Court, a Tax Declaration is not conclusive evidence of ownership. It is merely proof of a claim of possession and an indication that the declarant is paying taxes to the government. While it serves as a "strong indicia of possession in the concept of an owner," it does not have the same indefeasibility as a Title.

II. Major Risks Involved

Purchasing land without a Title exposes the buyer to several critical vulnerabilities:

Ownership Disputes: Someone else may hold a registered Title for the same property. In a conflict between a TD holder and a Title holder, the Title holder almost always prevails.
Multiple Claimants: Since TDs are easier to obtain than Titles, different individuals might hold different TDs for overlapping portions of the same land.
Government Ownership: The land might be part of the "public forest," "inalienable land," or "mineral land" which cannot be privately owned regardless of how many years taxes have been paid.
Overlapping Boundaries: Tax Declarations often lack precise technical descriptions (metes and bounds) verified by the Land Registration Authority (LRA), leading to boundary disputes with neighbors.

III. Essential Legal Due Diligence

Before proceeding with the purchase, the following steps are non-negotiable to mitigate risk:

Verify the Land Classification: Visit the Department of Environment and Natural Resources (DENR) or the Community Environment and Natural Resources Office (CENRO). Secure a Certification of Land Classification to ensure the land is "Alienable and Disposable" (A&D). If it is not A&D, it cannot be titled or privately owned.
Trace the History (Tax Trace): Request a "Tax Trace" from the Assessor’s Office. This shows the history of the TD from the first declarant to the current seller. Look for gaps or sudden changes in the declared area.
Check for Liens and Encumbrances: Even without a Title, a TD can be used as collateral for loans or have pending claims recorded in the Assessor's "Memorandum of Encumbrances."
Physical Inspection and Survey: Hire a Geodetic Engineer to conduct a boundary survey. Compare the actual ground measurements with those stated on the TD. Verify who is actually living on or tilling the land.

IV. Necessary Legal Documents

To formalize the transaction and protect the buyer's interest, the following documents must be executed:

Deed of Absolute Sale: This must be notarized. It should explicitly state that the seller is the "lawful possessor and claimant" and is transferring all rights and interests to the buyer.
Affidavit of Aggregate Landholding: Both buyer and seller must execute this to comply with the Comprehensive Agrarian Reform Law (CARL), swearing that their total landholdings do not exceed five hectares.
Waiver of Rights: In some jurisdictions, a specific "Waiver and Quitclaim of Rights" is executed by the seller in favor of the buyer to strengthen the transfer of the possessory claim.

V. Post-Purchase Steps

Once the sale is completed, the buyer must immediately:

Pay Taxes: Settle the Capital Gains Tax (6%) and Documentary Stamp Tax (1.5%) at the Bureau of Internal Revenue (BIR) to obtain the Certificate Authorizing Registration (CAR).
Transfer the Tax Declaration: Submit the CAR, the Deed of Sale, and the Transfer Tax Receipt to the Municipal/City Assessor’s Office to have the TD transferred to the buyer's name.
Initiate Titling: The ultimate goal should be to convert the TD into a Title through Judicial Titling (filing a case in court) or Administrative Titling (applying for a Free Patent or Homestead Patent via the DENR), provided the legal requirements for length of possession are met.