The Ultimate Checklist Before You Buy Property in the Philippines

Buying real estate is one of the biggest financial decisions you’ll make. Whether you’re eyeing a sleek condo in Metro Manila, a beachfront villa in Palawan, or a family home in Cebu, buy Philippines property involves unique considerations. With its dynamic property market, exciting investment opportunities, and legal nuances, it pays to do your homework. This checklist covers all you need to know before committing to that dream property—from verifying ownership to understanding fees and local rules.

Why Buy Philippines Property

The Philippines attracts investors, retirees, and expats with its stunning locales and emerging real estate market. With a growing economy and an increasing demand for residential and commercial spaces, property values have remained resilient—even weathering global downturns. Tourists fall in love with the country’s beauty; locals see opportunities in booming cities and serene provinces alike.

But with opportunity comes complexity. Real estate transactions here mix tradition, local regulations, and modern business expectations. This makes having a solid checklist not just helpful, but necessary.

Buy Philippines Property and Ownership Restrictions for Foreigners

Before falling in love with a listing, it’s important to understand who can legally own property in the Philippines.

• Filipino citizens hold unrestricted ownership rights.
• Former Filipinos may buy up to a maximum area prescribed by law (usually up to 5,000 sqm for urban land, or 3 hectares for rural land).
• Dual citizens can generally purchase as locals do.
• Foreigners can own condominium units (up to 40% of a condo project’s total floor area) but cannot directly own land. They can, however, acquire land on a leasehold basis or through a corporation that is at least 60% Filipino-owned.

If you’re a foreign buyer, seek guidance on establishing legal ownership structures to fully protect your investment.

Step One Verify the Title and Ownership

Start with the basics—never skip title verification. Confirm that the property has a clean title (Transfer Certificate of Title for land or Condominium Certificate of Title for condos). Visit the Registry of Deeds to:

• Check for liens, loans, or legal disputes tied to the property.
• Ensure the seller is the rightful owner.
• Match property boundaries in the title with what is physically on site.

Be wary of “rights only” properties; these may not confer absolute ownership and are riskier investments.

Step Two Know the Developer and Project Reputation

This is especially important if you’re buying a pre-sale or pre-construction property. Do your research:

• Confirm the development has been issued a License to Sell by the Housing and Land Use Regulatory Board (HLURB).
• Read reviews, visit previous projects, and ask about delivery delays and post-sale support.
• Avoid projects with frequent complaints or records of incomplete hand-overs.

Step Three Calculate All Costs

Many buyers budget only for the listing price, but there are other expenses to plan for:

• Down payment (usually 10-30% upon reservation)
• Monthly amortization (if taking out a loan)
• Documentary Stamp Tax (1.5%)
• Transfer Tax (0.5-0.75%)
• Registration Fees (0.25% + small fixed fees)
• Notarial, legal, or processing fees
• Association dues (for condos or subdivisions)
• Move-in and utility connection fees

Prepare for these additional costs by conservatively estimating and setting aside a buffer.

Step Four Understand Zoning Laws and Land Use

Local zoning laws affect how a property can be used. Verify:

• If your intended use (residential, commercial, rental) is permitted
• Future infrastructure or community development plans that might enhance or hinder value

A location might look ideal now, but highway expansions or rezoning could change its character or accessibility in a few years.

Step Five Inspect the Property

Don’t rely on glossy brochures or website photos. Inspect the property for:

• Actual size (match to title and plan)
• Construction quality, including electrical, plumbing, and roofing
• Potential risks like flooding, earthquakes, or nearby developments

For condos or subdivisions, ask about parking spaces, amenities, and building management standards.

Step Six Make Sense of Financing Options

If you need financing, compare home loan offerings from multiple banks and lending institutions. Look for:

• Competitive fixed or variable interest rates
• Payment terms and penalties for prepayment or late payments
• Required documents (proof of income, IDs, etc.)
• Approval timelines

Some developers offer in-house financing, which may be faster but sometimes has higher rates. Always request a computation and review the contract’s fine print.

Step Seven Check Taxes and Legal Obligations

Property taxes are due annually. Clarify with the seller who pays outstanding taxes, capital gains tax (usually the seller’s responsibility), and value-added tax (if any). Get official receipts for every transaction and make sure property payments, including taxes, are completely updated to avoid headaches later.

Step Eight Research the Neighborhood and Community

Your property’s value is shaped by things you can’t change after purchase. Spend time in the area:

• Assess traffic, public transport, and walkability.
• Visit at different times (day, night, weekends).
• Check for noise, safety, and proximity to essential services (schools, hospitals, markets).
• Ask residents about the local homeowners’ association, rules, and dues.

Step Nine Secure a Solid Contract to Sell

Before handing over money, ensure the contract-to-sell (CTS) is fair and protects your rights. Scan for:

• Complete property descriptions
• Payment schedule and terms
• Timeline for turnover and remedies for delay
• List of all inclusions (fixtures, appliances, parking, storage)
• Penalty clauses for contract breaches
• Conditions for refund or withdrawal

This contract forms the backbone of your purchase, so ask a trusted lawyer to review it, especially for high-value deals.

Step Ten Plan the Ownership Transfer Process

Upon full payment, the seller should issue a Deed of Absolute Sale (DOAS). Your name will appear as the new owner on the title, but only after government taxes and fees are paid and the new title is registered with the Registry of Deeds. Be patient; this process can take several weeks or longer. Always secure certified copies of all documents.

Step Eleven Learn About Maintenance, Association Dues, and Rules

Condo units and gated communities require payment of monthly or annual dues. Review:

• The schedule of fees
• Rules on rentals or renovations
• Guest access
• Security and upkeep standards

These contribute to your overall cost and determine the quality of your living experience.

Step Twelve Be Wary of Red Flags and Common Scams

Unfortunately, the market has bad actors. Watch out for:

• Sellers who can’t provide the original title or valid IDs
• Projects without HLURB approval
• Agents pushing for fast, cash-only sales without documentation
• Too-good-to-be-true “rights” or “informal settler” properties
• Promises of unrealistically high returns

When in doubt, consult real estate lawyers and work only with licensed brokers and agents registered with the Professional Regulation Commission (PRC).

What to Do Next Find the Right Support for Your Purchase

Buying property in the Philippines can set up a secure future or even generate passive income. But it all starts by asking the right questions and checking every detail before you commit. From legal ownership to after-sales support and community standards, this checklist covers the essential steps for a smartAn error occurred during generation. Please try again or contact support if it continues.