Why is real estate due diligence in the Philippines so important?
Doing real estate due diligence in the Philippines is essential in shielding buyers from fraud and scams. Buying houses from less reputable vendors or the secondary market is crucial. Before making any payments, it is essential to confirm the legitimacy of the seller and the ownership of the property. To prevent fake titles and ensure a safe transaction, verifying the seller’s ownership is essential when conducting property due diligence in the Philippines.
How to do due diligence on a property in the Philippines?
When buying a property, real estate due diligence in the Philippines is crucial to ensure the seller’s and the property’s legitimacy. Here is an overview of how to do due diligence on a property in the Philippines:
Step 1: Verify ownership in condominium
Verifying the legitimacy of the seller’s ownership is crucial when performing real estate due diligence in the Philippines. To accomplish this for a condominium, ask the seller for ownership documentation such as a title, tax declaration, and most recent tax receipt. Visit the condominium or subdivision administration office as well, and compare the ownership details supplied by the seller with the documentation kept by the management of the building or subdivision. Any disparities found throughout this procedure must be considered as possible warning signs and require additional research.
Step 2: Obtain a certified true copy of the title
Obtaining a Certified True Copy of the land title is crucial when doing due diligence on real estate in the Philippines. To accomplish this, go to a local registration of deeds, complete an information request form, pay the processing cost, and obtain an official receipt.
Step 3: Request a certified true copy of the tax declaration
Apart from the title, it’s critical to confirm the authenticity of the seller’s tax declaration. The assessor’s office can provide a Certified True Copy of the tax declaration. Go over the particular requirements on the office website where the property is situated. Complete the request forms, attach the required documentation, and pay the processing charge. An official receipt serves as a confirmation of payment. Once it is finished, you will receive a certified true copy of the tax declaration.
Step 4: Get a tax clearance
One critical step in real estate due diligence in the Philippines is to obtain a tax clearance, which allows you to verify that all property tax payments are settled. You should refer to the procedures outlined on the treasurer’s office website in the property’s specific location, present the updated real property tax official receipt as proof of payment, and pay any applicable fees to obtain a tax clearance. This ensures that all property taxes are duly settled.
Land due diligence in the Philippines
Land due diligence in the Philippines differs from property or document due diligence. It focuses specifically on the physical and legal status of the land itself, rather than just the associated documents or structures. Key factors to consider include verifying the authenticity of land titles, checking for any existing liens or encumbrances, confirming the land’s zoning classification, and ensuring there are no ongoing disputes or claims on the land. Additionally, it is crucial to assess the environmental compliance and potential issues related to the land, such as flooding or geological hazards.
To conduct thorough land due diligence in the Philippines, it is recommended to engage with local government units to review zoning laws and obtain necessary permits. Additionally, consulting with surveyors for accurate land measurement and boundaries and seeking legal advice to navigate any potential legal complications is essential. This approach helps mitigate risks and ensures a secure investment or development on the land.
Get help with real estate due diligence in the Philippines
Do you want to buy or sell property in the Philippines? Conducting due diligence on real estate in the Philippines is very important. Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our knowledge and experience in the local market, we can help with legal requirements, conduct due diligence, find suitable buyers, and negotiate the best deals.
With our expert team, you won’t have to navigate the complexities of the Filipino market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected].
Frequently Asked Questions (FAQs)
How long is the due diligence period in the Philippines?
The length of the period for real estate due diligence in the Philippines may vary depending on the transaction and parties involved. The parties typically agree upon it during the negotiation phase.
What is technical due diligence in the Philippines?
A comprehensive assessment of a property or project’s technical features is known as technical due diligence in the Philippines. Infrastructural conditions, regulatory compliance, and other hazards or difficulties that could impact the project or property are all included in this assessment.
What should you check before buying a property in the Philippines?
Before buying a property in the Philippines, make a due diligence checklist to examine the property. When conducting real estate due diligence in the Philippines, first check the title and ownership, look for existing liens or encumbrances, review zoning and land use restrictions, conduct due diligence property inspections, and verify the history of taxes and fees.
How to check if a developer is legit in the Philippines?
To check if a developer is legit in the Philippines, you can verify their license and registration with the Housing and Land Use Regulatory Board (HLURB). The HLURB is the government agency regulating real estate developers and projects. You can also check the developer’s track record, reviews, and reputation in the industry.
