Protect your investment

Here are a few tips for the buyer of a lot:

1. Get the latest copy of the lot's title from the appropriate Registry of Deeds.
• Check the title if the owner is the same person from whom you plan to buy the lot.
• Check for encumbrances, like Real Estate Mortgage, Notice of lis pendens, adverse claims, etc.  If the title has these encumbrances, you are putting your hard-earned money in great risk if you pursue the purchase of the property.
2. Assuming that the title is "clean," the next thing to ask is who will pay for the taxes due to the BIR, like the capital gains tax and documentary stamp tax? This should be made clear at the outset of the negotiation.
3. After the deed of sale is signed and the owner of the property has been paid, the buyer should have the deed of sale registered at the Registry of Deeds of the city or municipality where the property is located, or have the said deed annotated on the title of the property.  The purpose of registration is to make the sale "binding upon the whole world," and not just to the owner of the property.

You may disregard all of the above tips if you plan to buy real estate here!