Top 5 Legal Mistakes to Avoid When Buying Property in the Philippines
- DP Law
- Jul 24
- 4 min read
Buying real estate in the Philippines is a major financial milestone—but it also comes with serious legal risks. From fake land titles to unauthorized sellers, many buyers fall into traps that could have been avoided with proper legal guidance and documentation.
In this post, we’ll go through the top 5 legal mistakes to avoid when buying property in the Philippines, especially for first-time buyers, investors, or OFWs. This is your legal checklist, combining real estate due diligence tips and applicable legal principles to help you avoid long-term problems.
1. Failing to Verify the Land Title
Many buyers rely solely on the seller’s copy of the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) without confirming its authenticity with the government.
Under Presidential Decree No. 1529 (Property Registration Decree), land titles in the Philippines must be registered with the Registry of Deeds (RD). The RD is the only legal authority that can confirm whether a title is valid, updated, and free of encumbrances.
Common mistakes include:
Accepting photocopies or forged titles
Skipping a title check at the RD
Overlooking annotations like mortgage liens, adverse claims, or lis pendens
What to do instead:
Request a Certified True Copy of the title from the RD
Inspect the physical document for red flags such as missing dry seal, inconsistent details, or altered serial numbers
Compare the boundaries and technical descriptions with a survey plan
2. Not Confirming the Seller’s Legal Authority
A valid title is not enough—the seller must also have legal capacity to sell. Many scams involve unauthorized sellers, heirs without proper settlement, or even “agents” with no Special Power of Attorney (SPA).
According to Article 1458 of the Civil Code, a contract of sale requires the seller to be the legal owner or a legally authorized representative. Without this authority, the sale is voidable or unenforceable.
Key warning signs:
Title still under the name of a deceased person
Seller unable to present valid government-issued ID
No SPA when an agent or representative is transacting
What to do instead:
Require valid IDs and, if applicable, a SPA or extrajudicial settlement
Verify if the seller is married; under Article 96 of the Family Code, both spouses must consent to the sale of conjugal property
Ask for proof that the seller has exclusive ownership or lawful authority
3. Skipping Due Diligence on the Property’s Legal Status
Beyond the title, there are other legal elements that must be verified before purchase. These include the land’s classification, zoning compliance, tax status, and physical possession.
Buying land that is classified as timberland, ancestral domain, or agricultural land under agrarian reform may be invalid unless you obtain special clearance.
Under the Local Government Code (RA 7160) and Comprehensive Agrarian Reform Law (RA 6657), certain lands are restricted from sale or require government approvals before disposition.
What to check:
Zoning Certificate from the City or Municipal Planning Office
Land classification from the Department of Agrarian Reform (DAR) or DENR
Tax Declaration and updated Real Property Tax Clearance
Actual physical inspection and relocation survey from a geodetic engineer
4. Relying on Verbal Agreements or Incomplete Sale Documents
Under Article 1358 of the Civil Code, contracts involving the sale of real property must be in writing and notarized. Verbal promises or informal agreements—even through text or email—have no legal weight when registering the transaction.
Many buyers proceed with paying a down payment or “reservation fee” based on verbal assurances, only to find out later that:
The seller backed out
There is no enforceable Deed of Sale
The property was sold to someone else
What to do instead:
Execute a notarized Deed of Absolute Sale containing:
Full names of both parties
Legal description of the property
Purchase price and payment terms
Ensure all documents are complete, including:
Tax Declaration
Valid IDs
Proof of payment
BIR Certificate Authorizing Registration (CAR) after tax payment
5. Ignoring Legal Review and Professional Help
Many property buyers skip consulting a lawyer to save on costs—only to spend more later resolving legal disputes. Real estate transactions involve multiple agencies (BIR, LGU, RD) and complex legal compliance, especially for inherited properties, tax-declared lands, or special zoning areas.
Under Article 1332 of the Civil Code, contracts may be annulled if one party is at a disadvantage due to lack of understanding. Not knowing the law is not an excuse—and buyers are expected to conduct due diligence.
What to do instead:
Consult a real estate lawyer before signing any contract
Have a legal expert review title documents, seller identity, SPA, and zoning compliance
Let your lawyer or representative handle registration and BIR processing to avoid procedural mistakes
Summary: Common Legal Mistakes in Philippine Property Purchases
Mistake | Legal Consequence |
Title not verified | Void or fraudulent sale under PD 1529 |
Seller lacks authority | Sale is void or voidable under Civil Code |
Due diligence skipped | Buyer assumes hidden liabilities |
Verbal or incomplete contracts | Unenforceable under Article 1358 |
No legal consultation | Higher risk of contract error or fraud |
Final Thoughts
Buying property in the Philippines requires more than just enthusiasm and funding—it requires legal knowledge, proper documents, and professional guidance. Most real estate issues arise not from bad luck, but from avoidable mistakes made early in the process.
If you're in the market for a property—especially in Muntinlupa, Las Piñas, Cavite, or Laguna—consulting a property lawyer before you commit could save you years of legal trouble.
Need Help with a Property Purchase?
At DPASCUAL Law Office, we help clients conduct full real estate due diligence, verify land titles, check seller authority, and process legal documents for safe and efficient transactions.
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