Buying land in the Philippines is a big financial step, and it’s important to ensure everything is legal and in order before you close the deal.
Whether you’re looking for land to build your dream home or as an investment, here’s a step-by-step guide to help you navigate the land buying process in the Philippines smoothly.
1. Secure a Copy of the Land Title
Ask the seller or real estate agent for a certified copy of the land title. Visit the Register of Deeds to verify its authenticity. Check for any encumbrances, annotations, or disputes linked to the property.
✅ Tip: Always verify the title’s authenticity before proceeding with any land purchase in the Philippines.
2. Validate the Title’s Accuracy
Make sure the information on the title matches the public records at the Register of Deeds. A “clean title” means the land has no legal issues or conflicting claims.
3. Conduct a Relocation or Boundary Survey
Hire a licensed Geodetic Engineer in the Philippines to perform a relocation survey. This confirms the exact boundaries of the land and checks for any overlapping claims or boundary issues.
✅ This step helps prevent disputes with neighboring properties after purchase.
4. Execute a Notarized Deed of Sale
Once you’ve verified everything, the buyer and seller must sign a Deed of Sale in the presence of a notary public. This legal document formalizes the land transaction.
5. Settle the Documentary Stamp Tax
Pay the Documentary Stamp Tax (DST) within 30 days of the notarization date. This is required by the Bureau of Internal Revenue (BIR) to legalize the sale.
6. Seller Should Pay the Capital Gains Tax
The seller is responsible for settling the Capital Gains Tax (CGT). Once this is paid, the BIR will issue a Certificate Authorizing Registration (CAR), which is needed for the title transfer.
✅ If you’re buying from a developer, check if the tax obligations are already included in the selling price.
7. Transfer the Land Title at the Register of Deeds
With the CAR and notarized Deed of Sale, visit the Register of Deeds to transfer the title. Pay the Transfer Tax and other processing fees. Once approved, the new land title will be issued under your name.
8. Follow Up on the Title Transfer
The entire title transfer process may take a few weeks to months. Stay in touch with the Register of Deeds and submit any additional documents they may request.
Final Thoughts
Purchasing land in the Philippines can be safe and worry-free if you follow each legal step carefully. Always work with licensed professionals and verify all documents thoroughly. By doing so, you’ll avoid property scams and ensure a smooth transaction.
For those planning to build an affordable home, check out our budget-friendly home construction tips.
Check the Land Registration Authority (LRA) for official guidelines on land title verification.
