What to Check Before Buying a Property in the Philippines (Cebu Guide 2025)

By Junie Alon, CPA, REB

Buying a property is one of the biggest financial decisions anyone can make. Whether you’re a first-time buyer, an OFW investing for your family, or an investor expanding your portfolio, it’s important to ensure that the property you’re buying is safe, legitimate, and worth your hard-earned money.

In the Philippines—especially in fast-growing areas like Cebu—buyers must take extra care in reviewing documents and verifying project credentials. This guide summarizes the three most important things to check before purchasing a property: title, taxes, and developer credibility.

Verify the Property Title

The title is the most critical document in any real estate transaction. It legally establishes ownership, boundaries, and the property’s status.

What to Check in the Title

• Is the title authentic?
  Verify it at the Registry of Deeds (ROD) where the property is located.

• Does it contain the correct details?
  Check the lot number, area, and registered owner.

• Are there encumbrances?
  Look for annotations indicating:

  • Mortgage

  • Adverse claims

  • Court cases

  • Liens
    Issues like these may delay or block the transfer of ownership.

Types of Titles

• TCT (Transfer Certificate of Title): For residential lots and houses

• CCT (Condominium Certificate of Title): For condominium units

Request a recent Certified True Copy (CTC) through the Registry of Deeds or an official LRA service, such as eSerbisyo, and review the entries and annotations. A CTC is one part of due diligence, not a guarantee that every transaction risk has been resolved.

Check if Taxes Are Updated

Real property tax is a lien on the property under Section 257 of the Local Government Code. Before purchasing, verify the tax position and clearance with the local treasurer, and clarify settlement of any arrears in the transaction.

What Documents to Request

• Latest Real Property Tax (RPT) receipt

• Updated Tax Declaration (Tax Dec)

• Clearances from the local government unit (LGU)

• If applicable: BIR CAR (Certificate Authorizing Registration) for secondary transfers

Buying a property with unpaid taxes is risky—banks may refuse loan approval, and LGUs may impose penalties or interest.

Confirm Developer Credibility

If you’re buying pre-selling, subdivision properties, or condo units, make sure the developer has a strong track record.

What to Verify

• DHSUD License to Sell (LTS)
  This ensures the developer is legally allowed to offer the project.

• Project Registration & Permits
  Check for building permits, development permits, and compliance certifications.

• Developer Reputation
  Research:

  • Previous projects

  • Quality of turnover

  • Timeliness of completion

  • Feedback from current homeowners

Check the developer’s documented record rather than relying on promotional assurances. Registration and a License to Sell do not guarantee completion dates or investment returns.

Why These Checks Matter

A property might look good on paper or during site viewing, but without proper verification:

• Ownership may be unclear

• Unpaid real property tax liens may affect the property

• The project may be delayed or unsafe

• Banks may decline financing

• Legal disputes may arise

Doing due diligence early helps support peace of mind, protects your finances, and helps you assess transaction risks.

Final Thoughts

Real estate is a rewarding investment—but only if backed by proper documentation, verification, and guidance. Taking time to check the title, taxes, and developer can save you from costly mistakes and help you understand the risks before committing.

If you’re unsure how to begin, a licensed real estate broker can guide you through every step of the process—professionally and transparently.

For Professional Assistance

For title checking, due diligence, property sourcing, and investment guidance, contact:

📩 Junie Alon, CPA, REB
📞 0917 114 6166 (Viber/WhatsApp available)
🏢 REB PRC No. 0035478 – Valid Until June 2028
🏢 DHSUD: R7-B-8447