When you buy a property, such as a residential lot, house-and-lot, or condo unit, focus on two key documents: (1) the License to Sell when purchasing from a developer or dealer, and (2) the Transfer Certificate of Title when purchasing from a private individual.
Project Selling: Buying from a Developer
License to Sell: Check the License to Sell for the subdivision or condominium project. This license confirms that the developer has met all legal requirements, including the land title. With this license, you don't need to verify the land title yourself. This saves you time and gives you peace of mind, knowing that everything is legally compliant. For added security, verify the license with the HLURB/DHSUD website.
Certificate of Registration: The developer must register the project with the HLURB/DHSUD. However, this registration alone does not authorize them to sell. Only a License to Sell does that. Some developers might show you only the registration certificate, which isn’t sufficient. Always ask for the License to Sell to ensure you're protected from unauthorized sales and avoid potential scams.
Important Note on License to Sell: Each development phase or condominium tower needs its own License to Sell. Make sure to see the specific License to Sell for the phase or tower where your property is located. This ensures that your property is legally covered, giving you complete peace of mind. Verify these licenses through official channels to confirm their validity.
Brokers and Salespersons: Licensed brokers and registered salespersons should provide the License to Sell and explain its significance. Deal only with licensed professionals to ensure you receive accurate and honest information. Check their credentials and reviews to build trust and avoid potential issues.
Contract to Sell: The Contract to Sell outlines the conditions of the sale, including the developer’s promise to build the property and your promise to meet payment conditions. Ownership only transfers when these conditions are fulfilled. Ensure the contract is approved by the HLURB/DHSUD. This contract protects your investment by guaranteeing that both parties fulfill their obligations. Consider having the contract reviewed by a lawyer for added security.
Brokerage: Buying from Private Individuals
Buying from a private individual doesn't require a License to Sell, making the process more complex. You'll primarily deal with the Transfer Certificate of Title (TCT), so careful verification is crucial. This ensures your investment is safe and reduces risk.
Transfer Certificate of Title (TCT): The TCT proves ownership but isn’t always conclusive. The Torrens system confirms ownership but doesn’t create it. Disputes can arise, so ensure the TCT is genuine by getting a certified true copy from the Register of Deeds and comparing it with the owner’s copy. This step reassures you that the title is legitimate and that you're buying from the rightful owner.
Verification Steps:
Confirm the seller is the registered owner by checking valid IDs. This helps prevent fraud and confirms the seller’s identity. For additional safety, consider cross-checking with local authorities.
Ensure the title is clean, with no encumbrances (e.g., mortgages, liens). Check for any legal claims or debts to ensure peace of mind. You can request a certificate of encumbrances from the Register of Deeds.
Visit the property and hire a surveyor to ensure it matches the title description. This confirms that the property’s physical boundaries align with the legal description, providing confidence in your purchase.
Verify that real estate taxes are up-to-date. Obtain proof of tax payments to ensure there are no outstanding liabilities.
For a more detailed discussion about buying from a private seller, refer to my other writings.
Final Advice
This guide provides a general overview. Some situations, such as properties with adverse claimants or subdivision issues, can be more complex. Always consult a lawyer when buying property to navigate complex situations and protect your investment, ensuring you have the trust and confidence needed for a secure purchase.
If you’re planning to buy a residential lot, house-and-lot, or condo unit, get in touch with us at 0920 207 5035 or email cebuhousefinder@yahoo.com for free assistance.
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