It is vital to have all the necessary documents in hand when buying property in the Philippines. Failing to have all these will cause you a plethora of headaches in the future, including the possibility of having the transaction being deemed void.
With that in mind, here are the five documents you will for sure need when buying property in the Philippines:
- Contract to sell
- Deed of absolute sale
- Deed of adjudication with sale
- Certification of titles
- Tax declaration
If you are buying a property during the pre-selling stage, there are two more documents you’ll need to have. These are a reservation letter and a letter of intent. Let’s take a brief look at each one and why it matters.
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Documents you need when buying property in the Philippines
1) Contract to sell
The contract to sell is a written pact between buyer and landowner that lays out the basis for a purchase agreement. This contract remains in place until all debt has been settled.
2) Deed of absolute sale
Once the aforementioned debt has been settled, a deed of absolute sale must be filed with the Registry of Deeds. The document essentially confirms that you are the rightful owner of the property.
3) Deed of adjudication with sale
The deed of adjudication with sale is an important document that confirms heirs to the property have also agreed to the sale. This protects you from future disputes from the owner’s family.
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4) Certification of titles
This document, which is given to you by the Registry of Deeds, essentially proves your ownership of the property. In most cases, this document will be the Transfer of Certificate of Title.
5) Tax declaration
Once you have obtained the title, you’ll need a tax declaration from the Assessor’s office in the municipality the property is located in. Having this will clear you of any previous tax responsibilities.
6) Reservation letter
This handy document confirms the pre-selling property you want to buy has been taken off the market and is now yours. In most cases, you will be given this after paying the reservation fee.
7) Letter of intent
A letter of intent is a piece of paper that lays out your plans for buying the property. It contains details such as the price you’ll pay. This is a non-binding agreement that is more of a formality than anything else. As it is a document provided by the buyer, it is up to you if you wish to draft one and have the seller sign the letter of intent.
Documents matters
Failing to have the documents needed to buy land in the Philippines can cause delays in completing your transaction or create a number of other issues for you in the future. If the seller does not assist you in obtaining these, do not proceed with the land sale.
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