Types of Philippine Properties You Should Not Buy No Matter How Cheap

Properties to Avoid When Buying Real Estate in the Philippines

Despite having available information about buying properties on the internet, many Filipinos are still unaware of the red flags to watch out for. In the Philippines, there are properties that come with legal issues and even structural problems. More often than not, sellers don’t disclose critical information to close the sale. So be wise and avoid these types of properties when buying a house even if they are the cheapest option in the market.

Rights-Only Properties

Rights-only land sellers usually present Tax Declaration or Deed of Sale to buyers instead of a clean title. This should be avoided because you’re literally buying a legal headache. In the end, you might get evicted from the property by a legal claimant or even the government. Tax declaration properties can’t be legally encumbered, and the affordable price tag is due to potential ownership disputes.

Housing Units Not DHSUD-Accredited

Fly-by-night developers offer subdivision lots or pre-selling condo units without the Department of Human Settlements and Urban Development or DHSUD accreditation or even a License to Sell certificate. This means buying such properties not accredited by DHSUD are problematic and may just waste your money in the end. Developments without DHSUD backing provide no legal protection for buyers and developers can vanish anytime.

Foreclosed Properties Still Occupied

These types of properties are often from Pag-IBIG and banks that offer huge discounts, however, some units are still occupied by original owners. It could even be a bigger problem if illegal squatters are living in the foreclosed unit. Evicting these occupants can be challenging and may sometimes take years. Even legal buyers cannot easily move the illegal squatters out, and may be dangerous as physical dispute may erupt.

Houses Located Near High-Risk Zones

Cheap houses and vacant lots are often located near fault lines and flood-prone areas, so due diligence when buying a property is a must. Residing in a home within hazard zones can be dangerous for you and your family, especially in regions often hit by typhoons. According to Philippine building codes, it’s prohibited to build structures in areas within fault lines. And if your property is located in a flood-prone zone, you are risking your health and overall safety

Final Thoughts

The key to avoid any potential issue with the property you want to buy is verify the clean title, make sure it is accredited by DHSUD, no illegal squatters in foreclosed units, and most important of all, it is not located in disaster-prone areas. For the safest options when it comes to real properties, check out REALS.PH and see the best property listings, such as house-and-lot developments in Baguio City. Our licensed real estate agents can help you find the exact property you need, from shopping around to sealing the contract. Contact us today if you have any questions about buying properties in the Philippines.