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Guide: Buying Land from Private Sellers

Buying property is a major life decision, filled with excitement and significance. When working with a general brokerage, you interact directly with private owners rather than developers, making each transaction personal and unique. Imagine the joy of acquiring a condo, house, or lot from someone who has cherished it, rather than a faceless developer.



BEFORE YOU BUY A PROPERTY

Conduct Due Diligence:

  • Land Title (Registry of Deeds):

  • Check the Title: Verify that the property is legally yours to own. A clear and legitimate land title protects your investment and ensures that you’re securing a rightful place in the world.

  • Request Certified Copies: Obtain the most recent documents yourself. This ensures that your investment is supported by the strongest legal evidence, safeguarding your future.

  • Tax Declaration (Assessor’s Office):

  • Review Details: Although a tax declaration isn’t conclusive proof of ownership, it offers insight into the property’s history and supports your peace of mind by confirming the seller’s claim.

  • Real Property Tax Clearance (Treasurer’s Office):

  • Confirm Paid Taxes: Enjoy the peace of mind knowing that all taxes are paid. This step ensures your investment is free from past debts and avoids unexpected financial burdens.

  • Lot Plan/Vicinity Map/Land Use Plan (Tax Mapping Office; Tourism Office):

  • Verify Boundaries and Zoning: Confirm the property’s location and zoning to ensure it fits your plans. This helps you avoid surprises and ensures that your new home aligns perfectly with your vision.

  • Determine the Seller's Right to Sell:

  • Verify Ownership and Authority: Confirm that the seller has the legal right to transfer ownership. This ensures that your purchase is secure and your new home is truly yours.

  • Request Relevant Documents: Collect documents like the Deed of Sale or SPA to validate the transaction and protect yourself from future disputes.

  • Visit the Property:

  • Assess Accessibility and Utilities: Check that the property is easily accessible and equipped with necessary utilities. This ensures that your new home will be functional and convenient.

  • Examine Property Conditions: Inspect the property’s condition and surroundings to ensure it is safe and pleasant. This step helps ensure that your new home will be a comfortable and secure haven.


IF DEALING WITH A BROKER OR AGENT

  • Work with Registered Brokers and Salespersons:

  • Verify Registration: Ensure that your broker is registered and trustworthy. Their expertise and adherence to industry standards add security to your purchase and make the process smoother.

  • Understand Broker Training: Knowing that your broker is well-trained reassures you of their expertise and boosts your confidence in their guidance.

  • Request the Authority to Sell from the Listing Broker:

  • Confirm Exclusivity: An exclusive Authority to Sell means the broker is committed to your property search, which often results in better service and a higher likelihood of finding your ideal home.


DEALING WITH THE LISTING BROKER/AGENT

  • Verify Authority: Confirm that the broker has the Authority to Sell. This ensures that all negotiations are legitimate and professionally managed.

  • Discuss Pricing and Commission: Understand the pricing and commission rates to make informed decisions. Transparency in these areas helps you achieve better terms and a more satisfying buying experience.


DEALING WITH THE REGISTERED OWNER OF THE PROPERTY

  • Understand the Role of the Land Registration Office:

  • Ensure Accurate Registration: Trust the Land Registration Office to manage and protect land titles, providing peace of mind that your property’s title is secure.

  • Purpose of Land Title Registration: Recognize that land title registration protects your rights and investment, giving you confidence and assurance in your property ownership.

  • Torrens Certificate of Title:

  • Reliable Proof of Ownership: The Torrens Certificate of Title is the strongest proof of ownership, offering reassurance that your claim to the property is legally recognized and secure.

  • Role of Register of Deeds:

  • Efficient Processing: The Register of Deeds ensures timely processing of registrations, reducing stress and allowing you to focus on enjoying your new home.

  • First Registration, First in Right Policy:

  • Secure Your Claim: The principle of first registration ensures that your claim is prioritized, helping you feel confident that your purchase is secure and recognized.

  • Identifying the Registered Owner:

  • Verify Ownership: Request and verify the Owner’s Duplicate Copy to confirm you are dealing with the rightful owner. This minimizes the risk of fraud and ensures a secure transaction.


VERIFYING AUTHENTICITY OF TITLE THROUGH THE REGISTRY OF DEEDS

  • Compare Documents: Compare the Certified True Copy with the Owner’s Duplicate to ensure consistency, reinforcing the legitimacy of your property’s title and avoiding potential discrepancies.

  • Check for Liens and Restrictions: Verify that the property has no liens or restrictions. This step helps you avoid hidden financial or legal burdens, ensuring a clean and secure purchase.


This discussion is for educational purposes only. Consult your lawyer for advice on your specific case. For any questions, contact us.


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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