what to check before buying lot-only property in the philippines

Complete Guide for Filipinos in Purchasing a Lot-Only Property

Buying a lot-only property? Learn how to check the title, zoning, access rights, and hidden costs before signing the contract.

A vacant lot is like a blank canvas where you can draw your dream home and turn it into reality. However, buying land in the Philippines is not as simple as it seems. Many Filipino buyers overlook key details that may eventually lead to unexpected expenses and even legal problems. So, let’s uncover all the important factors before investing in a lot-only property and how to ensure you are sealing the right deal.

Why Invest in Lot-Only Properties

Perhaps, you’re wondering why buying land properties is so popular among Filipinos. Lot-only investment is attractive for many buyers because it offers freedom and flexibility. For instance, you can design your own house, expand later, or hold it as an investment for future use. They’re also generally cheaper upfront than house-and-lot packages.

How to Check Lot-Only Property Titles

Of course, you need to do your due diligence before buying any type of property in the Philippines. Here are the steps in verifying lot properties with clean titles ready for ownership transfer:

1. Land title verification. Request for the Transfer Certificate of Title or Original Certificate of Title and verify it with the Registry of Deeds. Watch out for signs of duplication or encumbrances, including mortgages, liens, and claims.
   
   
2. Zoning and land use restrictions. Confirm the property’s zoning classification with the local planning office. A residential zone allows you to build a home, but agricultural or protected lands often have strict limitations.
   
   
3. Access roads and utilities. Confirm that the property has a legal right of way and access to essential utilities like electricity, water, and drainage. A lot-only property without proper access to public roads can lose significant value and become difficult to develop.
   
   
4. Hidden fees and taxes. Review all necessary documents, such as the latest Real Property Tax receipts, to confirm the property is not delinquent. Also, make sure to check the titling, notarial, and surveying fees, which can add thousands to your total cost.
   
   
5. Real estate lawyer or trusted surveyor. Before making any payments, consult a licensed surveyor to verify boundaries and area size. On the other hand, a real estate lawyer can review the Deed of Sale and confirm the ownership authenticity. By doing so, this can prevent major losses in the future.
   

Final Thoughts

Always conduct due diligence to ensure you’re on the right track, as mentioned in this brief guide. Check the title, verify land classification, and ensure there's legal access to the property. With all these proper measures, your lot investment will be a secure and valuable asset that you can benefit from for years to come. In case you’re also on the lookout for a new property, you can visit REALS.PH for the latest house and lot for sale in Baguio, as well as presale condominium units in the Philippines.