Purchasing a property in the Philippines requires a lot of patience since it can be tedious and time-consuming. You must make sure to cover and go ever everything since you will be making a big purchase for this lot. However, before getting all fired up in buying a lot in the Philippines there are things that you need to consider and take note of especially the documents needed when buying a lot in the Philippines. These simple lists will guide you so you know what things to do before buying a lot.
Investing in Real Estate
The future is bright for the real estate industry in the Philippines despite the economic challenges brought about by the pandemic. Subsectors are seeing a silver lining that encourages a gradual rebound for the industry amidst the pandemic slump. In the last two years, there is a steady growth in demand for real estate, and as we near the end of 2022, experts saw a robust increase in the residential, commercial, and warehousing market. It is no surprise that 2023 will be the year of redemption for the real estate industry since there is an existing eagerness to purchase a lot in the Philippines that is visible to both local and foreign investors.
Read Also: How to Buy a Lot in the Philippines?
6 You Need to Do Before Buying THE Lot
Whether you plan on buying a lot for commercial purposes or for residential use it is important for you to have a to-do list of the things you need to do before buying a lot as it is essential in mapping out your plan and the steps you need to undergo to finally getting your desired lot. We compiled a list of things to do before buying a lot in the Philippines.
1. Identify Your Preferred Type of Lot
The first step to buying a lot in the Philippines or in any part of the world is to know your preference. You may want a lot that is found in an exclusive location, a lot located in a strategic location that is near the city’s capital, or you may prefer to settle in a lot that meets your budget. Any type of lot will be easy to find and will be accessible to you once you identify your preference for a lot.
2. Pay Your Lot a Visit
Take the time to visit your preferred lot after identifying and locating it. Never purchase a lot you haven’t seen in person as it may totally be different from what you expect it to look like. Request a tour of the property from the agent or seller, and be on the lookout for potential issues such as large stones that can be difficult to excavate that may cause unnecessary hindrance once construction on the site starts.
3. Take Photos of the Lot and its Surroundings
When you arrive at the location, take numerous photos of the property so you can inspect it and go over the details when you get home. It’s also a good idea to photograph the surroundings – is there a nearby establishment that could be a future source of noise or a nearby sewer that could be a source of the foul odor? These are things you need to consider before buying a lot.
4. Acquire a Copy of the Lot Plan
You can request a hard or digital copy of the lot plan to get a “bird’s eye view” of the property. A copy of the lot plan can assist you in determining the lot’s size and boundaries. It’s best to have a digital copy so you can check it on your phone or tablet when you visit the site again. When buying land in the Philippines, it is also best to visit the lot when there is a change in weather to see if there is the flooding around the area.
5. Seek Expert Advice
Always seek a piece of expert advice as it is not enough to rely on your own or the agent’s opinion. A geodetic engineer can determine whether the details and description on the lot plan correspond to the actual lot. If you’re buying a lot in a subdivision, the subdivision will usually have an in-house surveyor who will inspect the lot before you buy it. To double-check the location and lot boundaries, it is always recommended to seek a second opinion from a licensed professional.
6. Conduct Soil Test
This may be additional money to burn, but it is highly recommended for you to allot a budget for a legitimate soil test to ensure that the soil is not too soft and that there is no water table beneath the lot. This will give you an assurance that the land is suitable for building and construction and also prevent any future accidents to happen.
Purchasing a lot requires a lot of work so take note of this list as it will guide you on making sure there won’t be any room for mistakes especially if it is your first time buying a lot in the Philippines. Don’t just rely on what you know rather always seek help from professionals to avoid any accidents that could possibly happen on-site and prevent mishaps during the construction inside your chosen lot. And since we are already discussing expert help, here are some lists of the documents needed when buying a lot in the Philippines. Make sure to secure these documents so as to secure the lot you have set your eyes on.
5 Documents You Will be Needing When Buying a Lot in the Philippines
1. Deed of Absolute Sale
Following receipt of full payment, a Deed of Absolute Sale will be prepared and filed with the Registry of Deeds before being delivered to you. This is a notarized document that proves you bought the property from the seller and are now the owner.
2. Deed of Adjudication with Sale
The Deed of Adjudication with Sale declares that all surviving heirs have agreed to sell the land, shielding this contract from future sale disputes.
3. Certificate of Titles
This is the best and most legitimate proof of land ownership. You will receive a copy of this from the Registry of Deeds. If you purchased a house or lot, you would receive a Transfer of Certificate of Title (if it was issued after the first title). Still, if you purchased a condominium unit, you will receive a Condominium Certificate of Title.
4. Tax Declaration
You must confirm that the seller is up to date on property tax payments. After transferring the title to your name, you must request a Tax Declaration from the Assessor’s office in your municipality. Submit a new title for the property as well as a photograph. Once completed, you will be free of tax obligations.
5. Contract to Sell
The Contract to Sell will function as a reserve agreement, with the seller agreeing to remove the property from the market. However, the seller retains possession of the property until the outstanding debt is settled. A contract to sell is issued if the buyer must first make a down payment and then pay the remaining balance over time. This is a written agreement between the land buyer and the property owner.
The foundation of your dream home
If the land is unsafe, rebuilding will be more expensive. And if you end up living in an unpleasant neighbourhood, you will be unable to enjoy your space. However, if you’d like to make it easier on your end you can always consider other options aside from buying a lot and starting from scratch. To save time and money, you may check out Bria Homes’ offers for house and lot in the Philippines. There is a variety of options to choose from the affordable house and lot packages to low-cost rent-to-own condominium units. Bria Homes offer competitive prices that will fit your desired budget.
Written by Noelyn Kate O. Cabrera