Legal Checklist for Buying Property in the Philippines (2025)
- DP Law
- Jul 24
- 4 min read
Buying real estate in the Philippines is a major financial decision—and one that requires more than just shaking hands and signing a contract. From verifying land titles to checking for tax liabilities, the process can be complex and full of hidden risks.
This guide provides a comprehensive legal checklist for buying property in the Philippines, focusing on real estate due diligence, document verification, and legal requirements that every buyer should know before closing a deal.
Whether you’re buying a house, a vacant lot, or agricultural land, this checklist can help you avoid costly mistakes and secure your investment.
Why Legal Due Diligence Matters
Buying real estate without proper due diligence can result in:
Buying from a fake owner or heir
Acquiring land with unpaid taxes or pending litigation
Being denied title registration by the Registry of Deeds
Losing your investment in a scam
Under Philippine law, buyers are expected to exercise prudence—which means you must verify ownership, legality, and property conditions before signing a Deed of Sale. Failure to do so may result in the loss of legal remedies in the future.
Legal Property Checklist for Buyers in the Philippines
Here is your essential buying property Philippines checklist to guide you through the legal process.
1. Title Verification
Document Required: Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)Where to Verify: Registry of Deeds (RD)
Request a Certified True Copy (CTC) from the RD.
Confirm that the title is free from encumbrances, adverse claims, or lis pendens.
Check if the title matches the location, lot number, and registered owner.
Be cautious of altered or forged titles. Look for the RD dry seal and microtext borders.
Note / Legal Basis: Property Registration Decree (Presidential Decree No. 1529)
2. Tax Declaration Check
Document Required: Latest Tax Declaration
Where to Verify: Local Assessor’s Office
Confirm the assessed value and land classification (residential, agricultural, commercial).
Check for unpaid real property taxes. You may request a Tax Clearance from the City/Municipal Treasurer’s Office.
Ensure the declared owner matches the name on the title.
Note / Legal Basis: Real Property Tax obligations are governed by the Local Government Code (RA 7160).
3. Zoning Certificate and Land Classification
Where to Verify: City Planning or Municipal Zoning Office; Department of Agrarian Reform (if agricultural)
Confirm that the land is legally classified for the intended use (e.g., residential, industrial).
If agricultural land, secure clearance from the Department of Agrarian Reform (DAR).
Avoid buying land that is classified as timberland, forest land, or ancestral domain unless conversion or clearance has been approved.
Note / Legal Basis: Check for compliance with the Comprehensive Land Use Plan (CLUP) of the LGU.
4. Deed of Sale and Seller Identification
Document Required: Draft Deed of Absolute Sale
Ensure the Deed of Sale includes complete property details, purchase price, and conditions.
Seller(s) must present valid government-issued IDs. If married, the spouse must also sign or give consent.
In case of representatives, require a notarized Special Power of Attorney (SPA).
Note / Legal Basis: The Deed of Sale must be notarized to be legally binding and registrable.
5. Seller Background Check
Verify if the seller is the true registered owner (or authorized heir/representative).
For inherited properties, ask for Extrajudicial Settlement or court order of partition.
Ask if the property has pending legal cases (check for Notice of Lis Pendens in the title).
Review any existing lease agreements or informal occupants.
6. Survey Plan and Property Boundaries
Document Required: Lot Plan or Relocation Survey with Technical DescriptionWhere to Verify: DENR or Licensed Geodetic Engineer
Check if the physical boundaries match the title description.
If necessary, commission a relocation survey to avoid boundary disputes.
Note / Legal Basis: DENR and the Land Management Bureau maintain records for titled and untitled public lands.
7. Barangay and LGU Clearance (Optional but Recommended)
Request Barangay Clearance to check for informal claims or community disputes.
Some LGUs require Certificate of No Improvement or Certificate of Ownership Transfer Tax Exemption.
8. Payment and Transfer Costs
Before you close the sale, prepare for the following payments:
Legal Fees and Taxes | Responsibility (Default) |
Documentary Stamp Tax (DST) | Buyer |
Capital Gains Tax (CGT) | Seller |
Transfer Tax (Local Treasurer) | Buyer |
Registration Fees (RD) | Buyer |
Notarial Fees | Shared or negotiated |
Note: Always agree in writing on who shoulders which cost.
9. Notarized Documents and Filing
The notarized Deed of Sale must be filed within 30 days with the BIR for the issuance of Certificate Authorizing Registration (CAR).
After securing the CAR and paying transfer fees, proceed to register the title under the buyer’s name at the Registry of Deeds.
10. Final Title Transfer and Tax Declaration Update
Once the RD issues the new title, submit a copy to the Assessor’s Office to update the Tax Declaration under the buyer’s name.
Keep copies of all documents: titles, tax receipts, CAR, Deed of Sale, and IDs.
Optional Due Diligence (But Highly Recommended)
Property Appraisal – Hire a licensed appraiser to assess if the property is priced fairly.
Environmental or Structural Inspection – Especially for homes or industrial lots.
Consult a Lawyer – For proper review of all documents and legal implications.
Summary: Real Estate Due Diligence Checklist
Checklist Item | Purpose |
Title Verification | Confirms ownership and legal standing |
Tax Declaration | Confirms valuation and property classification |
Zoning Certificate | Ensures legal use of the land |
Seller ID and Sale Documents | Prevents fraud |
Notarized Deed of Sale | Required for registration |
CAR and Tax Payments | Precondition for title transfer |
RD Registration | Secures buyer’s ownership rights |
Final Thoughts on Buying Property Philippines Checklist
The process of buying real estate in the Philippines requires more than just money—it requires vigilance, legal knowledge, and proper documentation. Without the right legal property checklist, you risk buying land with hidden issues that can delay or derail your ownership.
Need Help with Property Due Diligence?
At DPASCUAL Law Office, we assist buyers in Muntinlupa, Las Piñas, Cavite, Laguna, and nearby areas with complete real estate due diligence services—from title verification and document review to Deed of Sale execution and title transfer.
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