Philippines — Property: Legal Checks

Why this matters

A thorough understanding of legal checks is essential to ensure a smooth and secure property transaction, protecting your investment and avoiding costly disputes.

Key facts

• Request a certified true copy of the title through the LRA eSerbisyo Portal by Registry of Deeds, title type and number, and track it to delivery.
• Manually issued titles take an extra 5 to 7 working days to validate against the government copy.
• The BIR eCAR is verified through the LRA system, and the Registry will not register a transfer without it.
• Foreigners cannot own land under Article XII of the Constitution, so check the ownership structure (condominium within the 40% cap, or a long-term lease).

Steps

1. Step 1: Conduct a title search — A title search involves verifying the ownership of the property through the Land Registration Authority (LRA). This step ensures that the seller has the right to sell the property and that there are no outstanding liens or encumbrances.
2. Step 2: Secure the Transfer Certificate of Title (TCT) — The TCT is a document that proves the ownership of the property. It is usually issued by the LRA after the title search has been conducted.
3. Step 3: Prepare the Deed of Absolute Sale — The Deed of Absolute Sale is a document that outlines the terms of the sale, including the price, payment terms, and other conditions. It must be signed by both the buyer and the seller.
4. Step 4: Register the property with the BIR and SEC — The BIR and SEC may require registration of the property sale, which involves filing the necessary documents and paying the required fees.