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Is it Safe to Buy a Real Estate Property (House and Lot or Lot) Without a Land Title in Philippines?

Someone might sell you a real estate property (a house and lot, or a lot/land) without a land title. The seller said that he owns that property.

He might even show you the Deed of Absolute Sale of the said property. That is the only document he holds.

You might ask, "Is it safe to buy a real estate property which has no land title here in the Philippines?"

Is it safe to buy a real estate property (house and lot or lot) without land title in Philippines?

Answer

Yes. If you know what you're doing. It's safe if you find out later that the land or real estate property has a land title.

Or if it has really no land title, but it has a Tax Declaration, it's still safe to buy it if you verify first the ownership and location of the property.

Steps to Verify the Ownership and Location of the Property

Step 1

Before you buy the property in which the seller said that he doesn't hold a copy of the Land Title, you must request a photocopy of the Deed of Absolute Sale from him.

In the Deed of Absolute Sale, look at the description of the property (land), the name of the owner, location of the property, the size of the property and the Tax Declaration Number. They're written in the Deed of Absolute Sale.

Step 2

Go to the City/Municipality Assessor's, bring the photocopy of the Deed of Absolute Sale and request a Certified True Copy of the Tax Declaration and Certification of Land History.

You'll be using the Tax Declaration Number indicated in the Deed of Absolute of Sale. In this way, you can verify if the property really exist. And you can also verify the owner, location, and size of the property thru the Tax Declaration in the City/Municipality Assessor's Office.

If the property has no Tax Declaration in the City/Municipality Assessor's Office, it means the Deed of Absolute Sale is FAKE.

Likewise, looking at the Certification of Land History, you will be able to know the previous owner the property (land), how it was subdivided, and you will also know the mother lot of the property. Take note of the Title Number of the mother lot.
 

Step 3

To verify if the said property is Titled, go to the Registry of Deeds and request a Certified True Copy of the Land Title of the said property by using the Tax Declaration Number and Lot Number stated in the Deed of Absolute of Sale.

There are instances that the property is subdvided to the heirs (children). The Land Title of the mother lot exists but the subdivided properties has not been titled yet. Each subdivided properties have Tax Declarations.

It means the subdivided properties of the mother lot have different owners. Thus, subdivided properties have different Tax Declarations.

Conclusion

Again, it's safe to buy a property even if it has no Title (Land Title) for the reason it has not been titled yet and has only Tax Declaration.

Before buying this type of property, you should do the steps above. Verify first the property. Does it really have a Land Title? Who is the real owner? Where is it really located? What's the size of the property?

If you do your homework, you can avoid problems in the future.

Do you have any problem or concern related to real estate? Just ask in the comment below.
 

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"Is it Safe to Buy a Real Estate Property (House and Lot or Lot) Without a Land Title in Philippines?" was written by under the Real Estate category. It has been read 757 times and generated 0 comments. The article was created on and updated on 20 May 2018.
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