A house and lot are a long-term investment that helps families to live well and that allows them to upgrade their lifestyle. According to analysts, lot owners have the flexibility and may expand their property according to their needs, such as the addition of children or pets. Unlike in a condominium or apartment, they could expand or modify the home to add rooms or outside spaces such as a garden, yard, or parking space. Nevertheless, it depends on the person’s needs and wants so we should not judge. Owners like the solitude and security that gated house and lots afford. Furthermore, owners are able to add additional safeguards such as a fence or security gadgets. The long and arduous process of owning real estate in the Philippines begins with the completion of a Deed of Absolute Sale and finishes with you registering the title under your name.
Read Also: List of Documents You’ll Need When Buying a Property in the Philippines | Affordable House and Lot | Bria Homes
What exactly is Deed of Sale?
The deed of sale is the legal document that transfers ownership of real estate from the seller to the buyer. Both the seller and the buyer are protected by a Deed of Sale. The Deed of Sale acts as confirmation to the buyer that he or she purchased and owns the property from the seller. This document is quite clear in that it spells out the essential terms of the transaction and cross-references the sale and buy agreement for the remaining details. This is the document that is provided to the tax authorities when paying the necessary taxes, and to the Register of Deeds when requesting for a transfer certificate of title to be granted to the buyer in the case of a property sale.
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Title is transferred from the buyer to the seller on the date indicated in the deed of sale for the sale of land and other forms of real property. Most of the time, title is transferred following the completion of the deed of sale (i.e., the parties sign the deed of sale only when all the conditions to closing have been complied with). If there is a flaw in the goods or difficulties with the transaction in general, the buyer can also enforce any guarantees provided in the Deed of Sale.
In the event of a land transaction, under the Torrens system, title is transferred from the buyer to the seller only upon registration of the deed of sale with the Register of Deeds.
Read Also: The Registry of Deeds, What is It? | Affordable House and Lot | Bria Homes
Composition of a Deed of Sale
- Deed of Title. Check to see that the title – Deed of Absolute Sale – is displayed in the document’s first section.
- Involved Parties A Deed of Absolute Sale must include correct information regarding the selling and buying parties’ identities. As a result, if the seller is married, the spouse must declare approval, therefore the name must also be given. Other details, such as age, legality, citizenship, and mailing address, must be given.
- Property Specifics. A Deed of Absolute Sale must include a full description of the property, such as the Transfer Certificate of Title number, technical description, and borders, among other things.
- Purchase and Sale Contract This, as one of the most crucial and critical components, establishes the price of sale and resolves the agreement’s terms and conditions.
- Execution. Once the Deed of Absolute Sale has been written, the parties concerned must execute it by signing it. Witnesses should sign all pages of the paperwork in addition to the selling and purchasing parties. A legal practitioner must also accept and notarize the Deed of Absolute Sale for it to be valid.
Check if the Deed of Sale is Clean
- Examine the paper quality.
Know that the Banko Sentral ng Pilipinas is the sole printer of property title forms. The judicial form is printed on paper that has several security features. Furthermore, the paper is made with colored fibers from 50% cotton and 50% chemical wood pulp. An LRA or Land Registration Association watermark should be visible through the paper when held up to a light. The paper also has the texture of a bank check. As a matter of fact, there are some security features to look for in its physical appearance to ensure its authenticity:
- When held up to the light, the NALTDRA or LRA watermark can be seen.
- Fibers as material from the paper
- planchettes or the title’s colored circular patterns
- border with intaglio (printmaking technique)
According to the LRA, counterfeit titles are typically printed on cartolina or inferior quality material.
- Examine the “Transfer Certificate of Title” document for authenticity.
To ensure the title’s authenticity, the Register of Deeds should be able to provide you with a “Certified True Copy.” Request a photocopy of the title from the property’s seller, as the Register of Deeds will require information such as the title number and the owner’s name. Their office is typically located in the municipal building where the property is located.
In addition the phrase “OWNER’S DUPLICATE CERTIFICATE” should appear on the left side margin of the judicial form. On the lower left corner of the form, there should also be a red seal that does not blot or stain when wet. Neither of these features is present in the original edition.
- Check the seller’s identification.
Request a valid ID to ensure that the individual claiming ownership of the property is indeed the registered owner. In line with this, if the title says that the seller’s parents are the registered owners, there may be other heirs claiming the property. Some heirs may like to sell, while others may object. Those who wish to sell must first file a petition in court before engaging in any transactions with possible purchasers. Numerous prospective heirs who want to sell will not override the rights of those who want to maintain the property.
- Check the History of the Title
If the personal information of the seller couldn’t suffice your needs then it is suggested that you look further back into the title’s history to see if the source is genuine. You may need to go back to the mother title, derivate titles, and other relevant documents.
- Check to see if the real estate taxes have been paid.
Check with the Assessor’s Office to see if your real estate taxes are current. If there are arrears or past taxes, for example, work with the landowner to figure out how to settle the money, which should already be included in the property purchase. A notarized document is required for the agreement on the payment of back taxes.
- Check the technical description of the title again.
Lastly, check the technical description of the title again. Ask the landowner for permission to have the land surveyed by a Geodetic Engineer. This is done to see if the land area listed in the title corresponds to the actual land area surveyed.