Buying or accepting a property in the Philippines? Smart — but “looks fine” ≠ legally clear. Below is a practical, Philippines-specific due-diligence guide you (or your lawyer/agent) can follow before signing anything.
Quick checklist (what “clean & legal” means)
Clear Torrens title (TCT/OCT/CCT) in seller’s name (or properly transferable).
No mortgages/annotated liens or adverse annotations on the title.
Up-to-date real property tax (RPT) payments / RPT clearance from City/Municipal Treasurer.
Valid building permits / Certificate of Occupancy for structures (if any).
Developer has DHSUD (formerly HLURB) License to Sell (for subdivisions/condos) and project is registered.
No pending court cases, attachments, or writs affecting the property.
Step-by-step: how to verify each item (with where to go / what to ask)
1) Confirm legal ownership — get a Certified True Copy (CTC) of the title
What to do: Ask the seller for the original title (owner’s duplicate). Even if seller gives you a photocopy, you must obtain a Certified True Copy (CTC) from the Registry of Deeds that issued the title (or request it online via LRA eSerbisyo). Compare names, title number, and parcel description.
Why it matters: A CTC shows the official recorded owner and any annotations (mortgages, liens, release stamps). Never rely only on a tax receipt/tax declaration as proof of ownership.
2) Check for encumbrances — mortgages, attachments, annotations
What to do: Examine the title pages and marginal annotations on the CTC. Marginal annotations show mortgages, attachments, or other encumbrances. If anything is annotated, ask for documentary evidence of release/settlement. You can also ask the Registry of Deeds for a current status/annotation check.
3) Don’t confuse tax documents with title ownership
Important legal point: A Tax Declaration and tax receipts show who is paying property tax or is in possession — they are not conclusive proof of ownership under the Torrens system. Buying purely on a tax declaration is risky. Always insist on a Torrens-registered title (TCT/OCT) or documented chain of title.
4) Verify real property tax (RPT) status — obtain tax receipts / clearance
What to ask: Latest real property tax official receipts and/or a Real Property Tax Clearance from the City/Municipal Treasurer’s Office. Check the local treasurer’s office (or its online service) to confirm there are no unpaid taxes or tax liens. Many LGUs issue an RPT clearance for transfer/registration purposes.
5) If there’s a building/house — check building permits & occupancy permit
What to ask: Copies of the approved Building Permit, Certificate of Completion, and the Occupancy Permit (or Certificate of Final Inspection) issued by the Office of the Building Official (OBO). Verify the permit numbers and compare the as-built plans to the actual house. Structures without permits can be ordered demolished or may create legal trouble later.
6) For subdivisions / condos — confirm developer credentials & License to Sell
What to check: Ask the developer/seller for the project’s Certificate of Registration and License to Sell issued by DHSUD (formerly HLURB). DHSUD publishes lists and FAQs; you can confirm the project and developer status with DHSUD regional office or through their online resources. Buying from an unregistered project is risky.
7) Check for litigation, attachments, or sheriff’s levies
Where to check: Search public court dockets and e-court services (Supreme Court/eCourtPH, Court of Appeals case status, or RTC records) for cases naming the property owner or the property itself (attachments, writs). If the title has an annotation indicating a case/attachment, follow up at the court indicated.
8) Confirm boundaries & survey — request a survey plan / VSR
What to ask: Verified Survey Returns (VSR) or a copy of the approved survey and corner markers. For subdivisions or developer lots, VSRs are usually part of DHSUD/DENR/Registry filings. If there’s any boundary dispute, resolve it before purchase.
9) Barangay & HOA checks (local facts on the ground)
What to do: Visit the barangay hall to ask about the property (possession, boundary disputes, squatters). If the property is in a subdivision or condo, get a copy of HOA receipts (to check unpaid dues) and any HOA rules that affect transfers.
10) BIR / taxes on transfer — you will need a CAR/eCAR to register transfers
Note for transfers: Before the Registry of Deeds will register a sale, the Bureau of Internal Revenue (BIR) must issue a Certificate Authorizing Registration (CAR) — now an eCAR — confirming applicable taxes (capital gains tax, documentary stamp tax, etc.) have been paid. Ensure the seller/buyer follows BIR procedures when transferring title.
- Documents to request from the seller (sample checklist)
Original owner’s duplicate title (TCT/OCT/CCT) and Certified True Copy (CTC) from Registry of Deeds. - Deed(s) of sale / Deed of assignment and notarized documents showing chain of title.
- Building permit / Certificate of Completion / Occupancy Permit (for structures).
- Survey plan / Verified Survey Returns (VSR) or sketch plan.
- If subdivision/condo: developer’s DHSUD License to Sell / Certificate of Registration.
- Proof of release of mortgage (if title previously mortgaged) or bank documents showing loan discharge.
- Red flags (stop, verify, or walk away)
Seller cannot produce the original title or only offers a tax declaration. - Title has recent mortgage, annotated attachments, or unknown signatures.
- Unpaid real property taxes or tax liens shown in the Treasurer’s records.
- No building permits for an existing structure, or structure doesn’t match approved plans.
- Developer/project not on DHSUD’s list of licensed projects or License to Sell is missing.
- Practical tips & next steps
Do the title & tax checks first. If the title is clean, proceed to permits, surveys, and HOA checks. - Hire a lawyer or licensed broker for due diligence. They can run Registry of Deeds searches, BIR eCAR filings, and court checks faster and spot tricky legal issues.
- Get everything in writing. No verbal promises. Insist on notarized deeds, receipts, and official clearances before paying.
- Confirm payment responsibilities in writing (who pays capital gains tax, documentary stamp tax, transfer tax) — these affect the CAR and registration.
