Investing in real estate can be an exciting step towards building your future, and it is important to be cautious before buying and finishing the deed of sale. Due diligence, the process of carefully investigating a property before purchase, is one way to protect yourself against fraudulent transactions and other potential risks.
The foundation of due diligence is verifying land ownership – and this is where the Land Registration Authority (LRA) helps interested property buyers.
Certified True Copies (CTCs) of land titles provide information like the legal owner, property type, and any encumbrances or restrictions on the title. Land and property owners can obtain CTCs by requesting them through the Registry of Deeds or online via the LRA eSerbisyo Portal ( eserbisyo.lra.gov.ph).
Here are further steps in the due diligence process:
● Examine the Title Carefully: Ensure all information, such as property size, boundaries, and easements (rights granted to others to use part of the property), match the seller’s description of the property. Sometimes the information available in the government copy is not updated in the Owner’s Duplicate Copy of the Title. One way to validate details is through the CTCs of land titles.
● Check for Encumbrances: A property may have mortgages, liens (claims against the property), lis pendens (a legal notice to potential buyers that someone else has a claim to the property), or annotations/restrictions (such as government restrictions on developments). It is best to have these cleared before making the purchase.
● Verify Tax Payments: Inquire about any unpaid taxes and consider them when making negotiations. Landowners can get tax clearance from the treasurer’s office of the local government unit where the property is located.
● Investigate Zoning Laws: Know the zoning restrictions in the area where the property is located as it could affect future plans, such as renovations or commercial use.
● Inspect the Property: Schedule a property inspection with a professional to identify any structural issues or potential problems that may not be obvious in photos or descriptions.
● Consult a Lawyer: Get legal advice to help understand legal issues or complications with the property and ensure that the contract protects your interests.
Consider additional due diligence steps as well, depending on the property type, such as researching flood and earthquake risks or historical ownership issues.
The LRA eSerbisyo Portal simplifies the process of due diligence by offering convenience, transparency, and efficiency. CTC requests can now be made online anytime and anywhere, saving time and travel expenses. The status of the request can also be tracked in real-time, removing unwanted wait times. Additionally, land and property owners will receive their CTC requests in their preferred location with the door-to-door delivery service.
Visit the LRA eSerbisyo Portal (eserbisyo.lra.gov.ph) to learn more about CTCs of land titles.
For more information regarding LRA and its services, head on to the official LRA website (lra.gov.ph) or follow LRA’s official social media accounts.
