Real estate due diligence in the Philippines is an essential process that involves thoroughly investigating a property’s legal, financial, and physical aspects to minimize risks and make informed decisions. With the rapidly growing real estate market in the Philippines, it is important to understand things like land ownership laws, property valuation, and development regulations. In this article, we will explain the process of real estate due diligence in the Philippines.
Why is real estate due diligence in the Philippines so important?
Real estate due diligence in the Philippines is crucial to protect buyers from scams and fraudulent transactions. It is important when purchasing properties from the secondary market or less reputable sellers. It is necessary to ensure the seller is legitimate and to verify property ownership before making any payments. Authenticating the seller’s ownership is vital in property due diligence in the Philippines to avoid counterfeit titles and to provide a secure transaction 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
When conducting real estate due diligence in the Philippines, it is important to ensure the authenticity of the seller’s ownership. To do this for a condominium, request proof of ownership, such as a title, tax declaration, and updated tax receipt from the seller.
Additionally, visit the condominium or subdivision administration office and compare ownership information provided by the seller with records held by the building or subdivision manager. Any discrepancies discovered during this process should be considered potential red flags and warrant further investigation.
Step 2: Obtain a certified true copy of the title
Obtaining a certified true copy of the land title is important when conducting due diligence on land in the Philippines. This can be done by visiting a nearby registry of deeds and filling out an information request form, paying a processing fee, and securing an official receipt.
Step 3: Request a certified true copy of the tax declaration
In addition to the title, it is essential to verify the accuracy of the tax declaration provided by the seller. You can obtain a certified true copy of the tax declaration from the assessor’s office. Check the specific requirements on the office’s website where the property is located. Fill out the request forms and provide any necessary documents; then pay the processing fee with an official receipt as proof of payment. Once completed, you will receive a certified true copy of the tax declaration.
Step 4: Get a tax clearance
Obtaining a tax clearance is crucial in real estate due diligence in the Philippines to verify payment of all property taxes. 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.
Let Own Property Abroad help you with real estate due diligence
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, negotiate the best deals, and close 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 firstname.lastname@example.org.
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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?
The length of the due diligence of real estate in the Philippines may vary depending on the transaction and parties involved. The parties typically agree upon it during the negotiation phase.
What to check before buying a property in the Philippines?
Before buying real estate, make a due diligence checklist of real estate in the Philippines 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.