Buying a Property in the Philippines? Here is a simple Due Diligence Checklist!

1. Verify Ownership & Title Authenticity

• Certified True Copy of the Title (TCT or CCT) from the Registry of Deeds
• Check for:
  • Name of the registered owner
  • Title number and lot/parcel number
  • No discrepancies with the seller’s name and identity
• Verify if:
  • There are annotations or encumbrances (e.g., mortgage, liens, adverse claims)
  • The property is not part of public domain or ancestral land

2. Identity and Authority of the Seller

• Valid government-issued ID of seller(s)
• If represented by an agent or relative:
  • Notarized Special or General Power of Attorney
• If the seller is a corporation:
  • SEC registration, Articles of Incorporation, Board Resolution authorizing sale

3. Tax & Legal Clearances

• Real Property Tax (RPT) Clearance – shows property taxes are paid up to date
• Latest Real Property Tax Receipts
• Certificate Authorizing Registration (CAR) – from BIR (for past transfers or inheritance)
• Tax Declaration from the Assessor’s Office
• Zoning Clearance – confirm allowed use (residential, commercial, etc.)
• Environmental Clearance (ECC) – for large or environmentally sensitive properties

4. Property Survey & Technical Due Diligence

• Lot Plan / Vicinity Map certified by a licensed geodetic engineer
• Actual Site Inspection:
  • Check for right of way / access roads
  • Identify boundaries (to avoid encroachment or squatting)
• If applicable: Updated Subdivision Plan

5. Legal Encumbrances & Liens

• Check for annotations in the title:
  • Mortgages or loans
  • Lis pendens (pending litigation)
  • Easements or rights of way
• If mortgaged, request:
  • Loan details
  • Undertaking to release title after payment

6. Sellers’ Financial and Legal Standing

• Check if seller is involved in any pending cases:
  • Request a Clearance from the Barangay and/or NBI
• Ask for a Sworn Affidavit of No Pending Case / No Other Claimants

7. Review of Contracts & Documentation

• Draft and review Deed of Sale (or Contract to Sell, if installment)
• Ensure all key terms are clear:
  • Payment terms
  • Possession and turnover
  • Inclusions (e.g., fixtures, improvements)
  • Default clauses and liabilities
  • Who will pay the taxes, such as capital gains tax, documentary stamp tax, local transfer tax, etc.
  • Who will shoulder and process the transfer of the title.

8. Homeowners or Condo Association (If applicable)

• Clearance from Homeowners’ Association / Condo Corp
• Confirm:
  • No unpaid dues
  • No violations of subdivision or condo rules
  • Restrictions on construction, renovations, or rentals

9. Additional Checks (as needed)

• Historical ownership (ask about previous owners to trace proper transfer)
• Check for Informal Settlers or tenancy claims
• Ask neighbors or barangay officials about boundary issues or disputes
• Review past utility bills to check for arrears

10. Verify Broker’s License and Legitimacy

• Ask for:
  • PRC ID (Professional Regulation Commission ID) of the broker
  • DTI registration (if acting as a sole proprietor)
  • Business permit (if operating an office)
• Verify broker’s license via:
  • PRC Online Verification Portal: https://online.prc.gov.ph
    • Go to “Verification,” select “Real Estate Service,” and search by name or license number

11. Consult your lawyers to ensure a smooth and clean transaction.