What If You Bought a Subdivided Lot Still Under Mother Title: Cautions for Filipino Buyers

Buying a Subdivided Lot Without An Individual Title in the Philippines

Many Filipinos are easily swayed to buy cheaper properties without knowing the hidden encumbrances. Always remember that not all cheap products are safe, especially when investing in a subdivided lot that is still under a mother title. This may seem like a good deal at first, but it may be problematic once you find out the inherent issues in the said property. Save your money and yourself from the headache by understanding how to safely buy a property in the Philippines.

Is A Subdivided Lot A Great Deal?

Perhaps a subdivided lot can be a good deal if you’re trying to save money from investing in real estate. However, you should be aware of the current situation before purchasing any property. For instance, if any property remains under the mother title, the individual title should be processed by either the buyer or the seller. This also means that the untitled lot is not yet fully independent from the law.
​
Maybe you bought the lot with a Deed of Sale, signed by involved parties, with measurements, and even a fence built already. But all these things don’t guarantee that the property will be legally yours because it’s still on a mother title. Meaning, it doesn’t have an individual title yet, the subdivision plan might not yet be approved, and the mother title may have encumbrances.

Hard Truths About Buying Subdivided Lot

There are so many land properties in the Philippines that are sold with Tax Declaration, rights only, still the mother title, not yet subdivided legally, and no individual titles. They all look cheap and affordable for many buyers, but it’s not yet clear when the new title will be awarded under your name, as the titling process can be long and grueling.
​
One of the most important reminders, a Tax Declaration is not a title or proof of ownership. There is not enough evidence that a person owns a piece of land or property in a certain location. If the seller says that they are still processing the legal documents, especially the individual title of a subdivided lot, this could be a red flag to watch out for. So, before you buy a property, ensure the following:

• TCT or OCT of the lot.
      
• Verify if the individual title is being processed.
      
• Check if the subdivision plan is legally approved.
      
• Get a Certified True Copy of the title from the Registry of Deeds.
      
• If it’s a project, confirm if they have a License to Sell from DHSUD.

Final Thoughts

Don’t get deceived by the usual lines that “it’s still under the mother title, but it’s safe to buy.” Be aware of potential issues when buying untitled properties to avoid hassle. If you want to invest in safe and secure properties, check out REALS.PH and explore our exclusive listings of Baguio City properties for sale and many more.