5 Essential Property Due Diligence Steps Before Buying Real Estate

Buying property is one of the largest investments most people will make. In the Philippines, where land title issues are common, proper due diligence is essential to protect your investment.

Step 1: Verify the Title at the Registry of Deeds

Never rely solely on the owner's copy of the title. Visit the Registry of Deeds where the property is registered to verify:

- The title is registered and genuine - There are no liens, encumbrances, or adverse claims - The registered owner matches the seller - The technical description is accurate

Step 2: Check the Tax Declaration and Real Property Tax Payments

Visit the Assessor's Office to verify:

- The property tax declaration matches the title - All real property taxes are paid up to date - There are no back taxes that could result in auction

Step 3: Conduct a Physical Survey

Have a licensed geodetic engineer survey the property to confirm:

- The boundaries match the title's technical description - There are no encroachments or overlapping claims - The actual land area matches the titled area

Step 4: Verify Seller's Authority

Ensure the seller has the legal authority to sell:

- If the seller is not the titled owner, verify the Special Power of Attorney - For estate properties, confirm the seller has authority from all heirs - For corporate sellers, verify board resolution and secretary's certificate

Step 5: Check for Any Pending Cases

Conduct a search at the relevant courts to determine if there are any pending cases involving the property or the seller that might affect the sale.

Conclusion

These steps may seem extensive, but they are necessary to protect what may be your life's savings. A qualified real estate attorney can conduct comprehensive due diligence and ensure your purchase is legally sound.