Real Deals
(Acquiring real property)

It is a big step people get to make, buying that land to build on, that house and lot as a family home, or that condominium unit. And it requires a lot of cash, perhaps something that an individual has saved over a long period of time, or even begged for and borrowed. Considering what is at stake, it pays to be prudent before signing on that dotted line to insure that you get what you will be paying for.

Title Check

First things first, check out the title to the property. Try not to rely on the copy shown to you by the seller. One can readily get a certified copy from the Register of Deeds for the place where the property is located. Then read up.

See the technical description of the property. This includes the area and location of the property which should give you an idea if what is purportedly being sold to you is the same property described in the title. If need be, you may get a surveyor to see if the description tallies to what is being sold to you.

Are there annotations? Annotations refer to liens or encumbrances on the property that are reflected on the title itself, usually at the back. If the land is mortgaged, the fact of such mortgage will be written down on the title. If there is some sort of adverse claim, this will also be written down. Please remember that one buys the property subject to all registered encumbrances. If you buy a piece of land which is covered by a mortgage, the lender can still foreclose on your property since you had valid notice of the security interest and bought it anyway. Registration operates as a “notice to the whole world” even if you never really heard or knew about it.

As provided in Section 44 of P.D. 1529, the Property Registration Decree, a “subsequent purchaser of registered land taking a certificate of title for value and in good faith, shall hold the same free from all encumbrances except those noted on said certificate” and certain specified encumbrances which need not be annotated (such as those not required to be so registered, unpaid real estate taxes, a public or private way or irrigation canal, disposition or limitations on use pursuant to agrarian reform.

Under our system, we need not look beyond what is in the title. If there are liens which are not registered, you can buy the property and the holders of these liens would not be able to claim against you.

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