Your Essential Guide to Verifying Property Titles: Steps and Tips

When buying a property, start by obtaining a Certified True Copy of the property title from the nearest Registry of Deeds. This step is crucial for verifying the title’s authenticity, confirming the registered owner, and checking the property’s technical description. It ensures that the property is clear of liens, mortgages, and adverse claims. A Certified True Copy is your primary safeguard against fraud.

In this blog, we’ll cover the buyer’s responsibility for due diligence, the Torrens Title system, the significance of land registration, and the role of the Land Registration Authority and its Registry Offices. We’ll also walk you through the process of obtaining a Certified True Copy. For any questions about buying property in Cebu, call 0920-207-5035 for free assistance. For a shorter discussion, please refer to How to Obtain a Certified True Copy of a Land Title

I. BUYER’S DUTY TO CONDUCT DUE DILIGENCE

When purchasing property, performing due diligence is crucial for protecting your investment and ensuring a smooth transaction. Due diligence refers to the comprehensive process of investigating and verifying various aspects of the property before finalizing the purchase. Here's an in-depth look at this vital step:

1. Understanding Due Diligence

Due diligence in real estate involves a thorough review of the property’s legal, physical, and financial status. The principle of "caveat emptor," which means "let the buyer beware," underscores the buyer's responsibility to conduct a careful examination to uncover any issues that could affect the property’s value or usability.

2. Key Areas of Due Diligence

a. Verification of Land Title

• Certified True Copy: Obtain a Certified True Copy of the land title from the Registry of Deeds. This document confirms the authenticity of the title and ensures it is free from encumbrances.

• Title Ownership: Confirm that the seller is indeed the registered owner of the property. Cross-check the name on the title with the seller's identification and any other documents provided.

b. Property Description and Technical Details

• Technical Description: Review the technical description of the property, which includes boundaries, dimensions, and location. Ensure it matches the actual property you intend to buy.

• Land Use and Zoning: Verify the zoning classification and permitted land uses to ensure that the property aligns with your intended purpose (e.g., residential, commercial).

c. Verification of Liens and Encumbrances

• Outstanding Liens: Check for any outstanding liens or encumbrances against the property. This includes unpaid taxes, mortgages, or legal claims that could affect your ownership.

• Mortgage Status: Ensure the property is not mortgaged or that any existing mortgage will be cleared before or during the transaction.

d. Seller’s Disclosure

• Latent Defects: The seller is required to disclose any latent defects or issues that could affect the property’s usability. This might include structural problems, environmental hazards, or lack of necessary permits.

• Flood Zones and Permits: Ask about the property’s location in relation to flood zones or other environmental risks and ensure that the property has all necessary permits and approvals for construction or use.

e. Documentation and Contracts

• Deed of Absolute Sale (DOAS): Ensure the DOAS or any other instrument of conveyance is properly notarized. This document transfers ownership from the seller to you.

• Title Transfer: Register the transfer of the property title in your name at the Registry of Deeds as soon as possible to formalize your ownership.

3. Importance of Timely Action

• Tax Deadlines: Be aware of important deadlines for taxes related to the property transfer:

• Capital Gains Tax: Due 30 days after executing the DOAS.

• Documentary Stamp Tax: Due on the 5th day of the month following the execution of the DOAS.

• Transfer Tax: Due 60 days after executing the DOAS.

• Title Registration: Timely registration of the property title in your name ensures legal ownership and protects your rights against future claims or disputes.

4. Practical Steps for Due Diligence

• Hire Professionals: Engage a real estate lawyer or consultant to help with legal checks and verify the validity of documents.

• Conduct Physical Inspections: Visit the property to inspect its condition and confirm that it matches the description provided.

• Review Historical Records: Examine past transactions related to the property to ensure there are no unresolved issues or discrepancies.

5. Consequences of Neglecting Due Diligence

Failing to perform due diligence can result in various issues:

• Legal Disputes: Unresolved legal claims or encumbrances can lead to disputes or loss of ownership.

• Financial Losses: Unidentified defects or liens can incur unexpected costs or diminish the property's value.

• Regulatory Issues: Non-compliance with zoning laws or permit requirements can lead to fines or legal complications.

By thoroughly conducting due diligence, you protect your investment and ensure that the property meets your expectations and legal requirements. This proactive approach helps avoid complications and ensures a smooth and secure property transaction.

II. THE TORRENS TITLE AND THE IMPORTANCE OF LAND REGISTRATION

The Torrens Title system is a land registration framework designed to provide a reliable and efficient means of proving ownership and transferring property. It was named after Sir Robert Torrens, who developed the system in Australia in the 19th century. The system has been adopted in various countries, including the Philippines, to streamline property transactions and protect property rights.

1. Understanding the Torrens Title System

The Torrens Title system establishes a government-backed register of land ownership, which serves as the definitive proof of ownership. Here’s a breakdown of how it works:

• Original Registration: When land is first registered under the Torrens system, an Original Certificate of Title (OCT) is issued to the property owner. This initial registration is crucial as it marks the official start of the property’s title in the government’s records.

• Subsequent Registrations: Once the property is registered, any subsequent changes in ownership, such as sales or transfers, are recorded in the form of Transfer Certificates of Title (TCTs). When a property is sold or otherwise transferred, the OCT is canceled and replaced with a TCT in the name of the new owner.

• Owner’s Duplicate Copy: The owner receives a duplicate copy of the Transfer Certificate of Title, known as the Owner’s Duplicate Copy. This document serves as evidence of ownership and should match the records kept by the Registry of Deeds.

2. Legal Assurance of Ownership

The Torrens Title system provides several key benefits:

• Indefeasibility: According to the Supreme Court rulings in cases like Abobon vs Abobon and Heirs of Leopoldo Vencilao Sr. vs Court of Appeals, once a title is registered, it is considered indefeasible. This means that the title is conclusive proof of ownership, and it cannot be easily challenged or overturned, even by adverse possession or claims.

• Incontrovertibility: The title issued under the Torrens system is incontrovertible, meaning that its authenticity is unquestionable. The system is designed to put an end to disputes over property ownership by ensuring that the registered title reflects the true and lawful owner.

• Public Trust: The Torrens system builds public trust in property transactions. Anyone dealing with registered land can rely on the title without needing to investigate further beyond what is recorded in the government’s registry.

3. Importance of Land Registration

Land registration under the Torrens system is crucial for several reasons:

• Clear Ownership: It provides a clear and official record of property ownership, which is essential for legal transactions such as sales, mortgages, and inheritance.

• Protection Against Fraud: The system helps protect against fraud by maintaining an authoritative record of ownership that can be verified through government offices, reducing the likelihood of fraudulent claims or disputes.

• Ease of Transfer: The registration system simplifies the process of transferring property ownership. With a clear and reliable record, buyers and sellers can confidently complete transactions knowing that the title is accurately reflected and legally binding.

4. The Role of the Registry of Deeds

The Registry of Deeds plays a critical role in the Torrens Title system:

• Maintaining Records: The Registry of Deeds is responsible for keeping the official records of all property titles. It updates these records with any changes in ownership or legal status of the properties.

• Issuing Documents: The Registry of Deeds issues certificates of title and maintains the Owner’s Duplicate Copies. It also handles the processing of applications for new titles, transfers, and other property-related transactions.

• Public Access: The Registry provides public access to property records, allowing individuals to verify property details, ownership history, and other relevant information.

Understanding the Torrens Title system and its importance helps you appreciate why obtaining and verifying a Certified True Copy of the property title is essential in the property buying process. It ensures that you are dealing with a legally recognized owner and protects your investment by minimizing the risk of future disputes or complications.

III. LAND REGISTRATION AUTHORITY AND REGISTRY OF DEEDS

The Land Registration Authority (LRA) and the Registry of Deeds are critical institutions within the land registration system in the Philippines. They work together to manage, maintain, and protect property titles and records.

1. Role of the Land Registration Authority (LRA)

The LRA is a government agency responsible for overseeing the implementation of the Torrens system of land registration throughout the Philippines. Its main functions include:

• Implementing Land Titling and Registration: The LRA administers the Torrens system, which provides a reliable method for registering land ownership and transferring property titles. This system ensures that property titles are accurate, secure, and legally recognized.

• Regulating and Supervising: The LRA sets regulations and standards for land registration practices, ensuring consistency and reliability across all Registry Offices. It supervises the operations of local Registry of Deeds offices to maintain uniformity and adherence to legal requirements.

• Computerization and Innovation: The LRA is involved in modernizing land registration processes through initiatives like the Land Titling Computerization Project (LTCP). This project aims to convert land titles into electronic formats (eTitles), making the registration process more efficient and accessible.

• Central Repository: The LRA serves as a central repository for land records, including registered titles and transactions. It ensures that these records are securely stored and readily accessible for verification and reference.

2. Function of the Registry of Deeds

The Registry of Deeds operates at the local level and is responsible for maintaining and managing property records within its jurisdiction. Its key roles include:

• Maintaining Property Records: The Registry of Deeds keeps the official records of all land titles within its area of jurisdiction. This includes recording the issuance, transfer, and modification of property titles.

• Issuing Titles and Documents: The Registry issues various land-related documents, such as the Original Certificate of Title (OCT), Transfer Certificate of Title (TCT), and Certified True Copies of titles. These documents serve as official proof of property ownership and transactions.

• Processing Transactions: The Registry handles the processing of land transactions, including sales, transfers, and mortgages. It ensures that all documents are properly filed, fees are collected, and records are updated.

• Public Access and Services: The Registry provides public access to property records, allowing individuals to verify ownership, check property details, and obtain certified copies of titles. It also offers assistance and guidance on land registration matters.

3. Importance of the LRA and Registry of Deeds

• Legal Security: Both the LRA and the Registry of Deeds play vital roles in ensuring the legal security of property ownership. By maintaining accurate and up-to-date records, they help prevent disputes and fraudulent claims.

• Efficient Transactions: The efficient operation of these institutions streamlines property transactions, making it easier for buyers, sellers, and other stakeholders to complete their dealings smoothly and confidently.

• Public Trust: By providing reliable and accessible property records, the LRA and the Registry of Deeds contribute to public trust in the land registration system. This trust is essential for the stability and functionality of the real estate market.

4. The Certification Process

When you need to verify property ownership or obtain a Certified True Copy of a title, the process involves the following steps:

• Request Submission: Submit a request to the Registry of Deeds for a Certified True Copy of the property title. You may need to provide relevant information and documentation, such as a photocopy of the existing title and a valid ID.

• Verification: The Registry will verify your request and ensure that all information is accurate and complete. This may involve checking the title against the official records.

• Issuance: Once verified, the Registry will issue a Certified True Copy of the property title. This document is a legally recognized proof of ownership and reflects the most current information in the land records.

Understanding the roles and functions of the LRA and the Registry of Deeds is essential for anyone involved in property transactions. These institutions ensure that property ownership is accurately recorded, legally recognized, and protected from disputes, thereby supporting a stable and trustworthy real estate environment.

IV. THE USE OF THE CERTIFIED TRUE COPY OF THE LAND TITLE

A Certified True Copy of the land title is a crucial document in property transactions. It serves as official proof of the property's title and provides essential information about ownership and property details. Here's an expanded look at its importance and use:

1. Verifying Ownership

• Registered Owner Verification: The Certified True Copy helps confirm the identity of the registered owner of the property. Before engaging in any transaction, it is essential to ensure that you are dealing with the legitimate owner. This verification can help prevent fraud and unauthorized transactions.

• Dealing with Authorized Representatives: If the registered owner is not directly handling the transaction, you must ensure that any representatives, such as agents or attorneys-in-fact, are properly authorized. This is typically evidenced by a duly notarized Special Power of Attorney (SPA). Confirm that the representative’s authority is valid and up-to-date.

2. Proof of Ownership

• Transfer Certificate of Title (TCT): The Certified True Copy of the title is often derived from the Transfer Certificate of Title, which is issued by the Registry of Deeds. The TCT is the official document that proves ownership and details the property's legal standing.

• Official Documentation: This copy is an official and legally recognized document that reflects the current state of the property title. It is crucial for any transaction, including sales, donations, or property transfers.

3. Comparing Documents

• Comparison with Owner’s Duplicate Copy: When you obtain the Certified True Copy, you should compare it with the Owner’s Duplicate Copy of the Transfer Certificate of Title held by the property owner. Both documents should be identical in terms of details and information. Any discrepancies may indicate potential issues.

• Technical Description and Registered Name: Check that the technical description of the property, including boundaries and area, matches between the Certified True Copy and the Owner’s Duplicate Copy. Also, verify that the registered owner’s name is correctly reflected.

4. Ensuring Property Cleanliness

• Checking for Liens and Mortgages: The Certified True Copy should indicate whether the property has any existing liens, mortgages, or encumbrances. If a property is mortgaged, this will be annotated on the title. Ensure that there are no outstanding claims or legal issues associated with the property.

• Adverse Claims: Verify if there are any adverse claims annotated on the title. An adverse claim indicates that someone else is asserting a right or interest in the property. This annotation serves as a warning to potential buyers and should be carefully reviewed. The adverse claim remains in effect until it is resolved or canceled through legal proceedings.

5. The Torrens Title System

• Indefeasibility of Title: Under the Torrens Title system, the Certified True Copy provides evidence of an indefeasible title. This means that the title is guaranteed to be valid and cannot be contested except through specific legal channels. This system offers protection against claims that are not reflected in the official records.

• Legal Assurance: The Certified True Copy reassures you of the property’s legal standing. It is an assurance that the property title has been properly registered and that the ownership is recognized by the law.

6. Importance in Transactions

• Due Diligence: Obtaining and reviewing the Certified True Copy is a critical step in due diligence. It helps ensure that you are making an informed decision based on accurate and up-to-date information about the property.

• Legal and Financial Security: This document provides legal and financial security by confirming the authenticity of the title. It protects you from potential legal disputes and financial losses associated with property transactions.

7. Obtaining a Certified True Copy

• Request Process: To obtain a Certified True Copy, you need to request it from the Registry of Deeds. This process involves submitting a request form, paying the necessary fees, and providing identification and documentation.

• Cost and Accessibility: The cost of obtaining a Certified True Copy is generally low, and the process can be completed quickly at the Registry of Deeds. Some regions also offer online services for added convenience.

In summary, the Certified True Copy of the land title is a vital document for verifying property ownership, ensuring legal accuracy, and protecting against fraudulent transactions. Proper use of this document supports secure and informed property dealings, providing peace of mind to buyers and other stakeholders involved in real estate transactions.

V. STEPS IN GETTING THE CERTIFIED TRUE COPY OF THE LAND TITLE

Obtaining a Certified True Copy of the land title is a key step in verifying property ownership and ensuring a secure transaction. Here’s a detailed guide on how to obtain this important document:

1. Overview of the Process

With advancements in technology, the process of acquiring a Certified True Copy of a land title has become more streamlined and accessible. The Land Registration Authority (LRA) has implemented the Land Titling Computerization Project (LTCP), which allows for electronic land titles (eTitles) and offers convenient methods to request Certified True Copies from computerized Registry of Deeds offices.

2. Step-by-Step Procedure

Step 1: Go to the Nearest Registry of Deeds

• Locate a Computerized Registry of Deeds: Find the nearest Registry of Deeds that has been computerized. Thanks to the A2A - ANYWHERE-TO-ANYWHERE program, you can now request the Certified True Copy from any Registry of Deeds, regardless of where the property is located. This eliminates the need to travel to the specific city or municipality where the property is situated.

• Requirements: Prepare the following documents:

• Information Request Form: Obtain this form from the Registry of Deeds office or download it from the LRA website if available online.

• Photocopy of Land Title: Provide a clear copy of the existing land title, if available.

• Identification Card: Present a valid government-issued ID to verify your identity.

• Fees:

• For the First Two Pages: The cost is Php 196.97.

• Additional Pages: Php 38.19 per page beyond the first two.

Step 2: Approach the Registration Information Officer

• Fill Out the Information Request Form: Complete the form with all required details. Ensure you include information such as the property’s title number and the owner's name. The EPEB (Electronic Property Evidence-Based) Number, if available, is useful for tracking your request online.

• Submit the Form: Hand over the completed Information Request Form to the Registration Information Officer (RIO). The RIO will review your submission, issue an Assessment Form, and provide a Payment Order.
  

• Payment: Proceed to the cashier to pay the necessary fees as indicated on the Payment Order. Keep your receipt, as you will need it to claim the document.

Step 3: Claim the Certified True Copy

• Final Steps:

• Approval: The Record Officer will review and approve your request.

• Printing: The Printing Clerk will print the Certified True Copy of the land title.

• Release: The Releasing Clerk will hand over the Certified True Copy to you. If no claim stub is provided, use your official receipt to retrieve the document.

3. Tips for a Smooth Process

• Verify Information Before Submission: Double-check all information on the Information Request Form for accuracy. Incorrect details can lead to delays or complications.

• Understand Processing Times: Be aware that processing times can vary depending on the Registry of Deeds office and the volume of requests. It’s helpful to inquire about the estimated time for completion.

• Follow Up if Necessary: If there are any issues or delays, follow up with the Registry of Deeds office to check the status of your request.

• Secure the Document: Once obtained, keep the Certified True Copy in a safe place. It’s an important document for any property transaction and may be needed for future reference or legal purposes.

4. Benefits of Electronic Systems

• Efficiency: The computerized system reduces processing time and minimizes the need for physical travel to different locations.

• Accessibility: You can request documents from any participating Registry of Deeds office, making the process more convenient.

• Reliability: The digital system ensures that records are accurate and up-to-date, reducing the risk of errors or outdated information.

5. Additional Resources

• LRA Website: Visit the LRA website for additional resources, including downloadable forms, FAQs, and contact information for various Registry of Deeds offices.

• Customer Support: If you encounter any difficulties, reach out to the LRA’s customer support or the Registry of Deeds office for assistance.

By following these steps, you can efficiently obtain a Certified True Copy of the land title, ensuring that you have the necessary documentation to verify property ownership and proceed with your real estate transactions with confidence.

Download Information Request Form This guide is for educational purposes only. Consult a lawyer for advice on your specific situation. If you have any questions or need personalized assistance, contact us at 0920 207 5035 or email cebuhousefinder@yahoo.com. We're here to guide you every step of the way, ensuring a smooth and confident buying experience.