Buying Property in Philippines What are Due Diligence Process to do?
Buying Property in Philippines What are Due Diligence Process to do ?
If you are interested in buying property in the Philippines, it is important to conduct due diligence to ensure that you are making a sound investment. Here are some key steps in the due diligence process:
1) Check the Title:
The first step is to check the title of the property to ensure that the seller is the legal owner and that there are no liens or encumbrances on the property.
2) Verify the Identity of the Seller:
You should verify the identity of the seller to ensure that you are dealing with the legal owner of the property. You can ask for a government-issued ID or passport.
3) Conduct a Physical Inspection:
You should conduct a physical inspection of the property to ensure that it is in good condition and that there are no structural issues.
4) Check Zoning Regulations:
It is important to check the zoning regulations in the area to ensure that the property can be used for the intended purpose.
5) Obtain a Survey Plan:
You should obtain a survey plan to ensure that the property boundaries are clearly defined.
6) Verify Taxes and Fees:
You should verify that all taxes and fees on the property have been paid, including property taxes and transfer taxes.
7) Review Contracts and Documents:
Review all contracts and documents related to the sale of the property, including the deed of sale, transfer certificate of title, and other relevant documents.
8) Seek Legal Advice:
It is advisable to seek legal advice from a lawyer to ensure that the transaction is in compliance with all legal requirements.
9) Check with DENR
For Agricultural Lot check with the DENR Office if lot is Alienable and Disposable, and if this is mot with the Protected Landscape like Watershed Area, Timberland Area, atbp...
10) Court Clearance
Making sure the property is not involved in any Litigation.
11) Tenant on the Property
Double check rhe Lease Contract or if None. If Informal Settler? Be Cautious... Discuss thoroughly with Seller and with your lawyer for guidance.
Buying Income Generating Properties. add this...
12) BIR Clearance
Check of the TIN Number of the seller had no open case, or unpaid taxes
13) LGU City Treasurer
If you are buying and assume the business operations make sure to as clearance from City treasurer, of No Open Case or Payables.
14) SSS, Pag-ibig, PhilHealth
Buying an Asset with Operational Business and assuming the employees. Make sure all employees government Benefits is settle, pls get service of HR Consultant to guide you in transition.
15) And As Needed
Talk to your Team, with your Broker, Appraiser, Lawyer. They can Always guide you on what or How to Due Diligence the Property.
By conducting due diligence, you can minimize the risk of buying a property with legal issues and ensure that you are making a sound investment.
"About the Author: Samuel Lao is a Real Estate Broker with 14 years of experience in the field. He is a Past National President of the Philippines Association of Real Estate Board. He specializes in Real Estate Investment, Commercial & Industrial Real Estate, Property & Asset Management, and Real Estate Finance & Mortgage. For Business Meetings, contact him via WhatsApp at +639173236123 or laosamuel@yahoo.com, or visit his website at www.phmls.com"
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