Top 10 Things You Must Know Before Buying Property in the Philippines (2025 Guide)

Are you planning to buy a property in the Philippines in 2025? Whether you’re a first-time buyer, OFW, or real estate investor, understanding the local process and legal landscape is crucial. Here’s your ultimate guide to avoid costly mistakes and make smart decisions.

1. Verify the Legitimacy of the Property Title

Always request a Certified True Copy of the Title from the Registry of Deeds. Check for any annotations such as liens, mortgages, or disputes. Avoid "open deeds of sale" or incomplete ownership transfers.

2. Understand the Types of Property Ownership

• TCT (Transfer Certificate of Title) is for land or house-and-lot properties.
• CCT (Condominium Certificate of Title) is for condo units.

Foreigners cannot own land, but may own condominium units up to 40% of a development.

3. Work Only with PRC-Licensed Real Estate Brokers

Under RESA Law (RA 9646), only licensed brokers and their accredited salespersons can legally handle real estate transactions. Ask for their PRC ID or verify through the Professional Regulation Commission (PRC).

4. Know the Total Costs Beyond the Property Price

Factor in taxes and fees such as:

• Capital Gains Tax (6%)
• Documentary Stamp Tax (1.5%)
• Transfer Tax (0.5% to 0.75%)
• Registration Fees
• Notarial fees and incidental costs

5. Secure Your Financing Early

Plan your budget. If applying for a home loan via bank or Pag-IBIG, prepare necessary documents such as proof of income, employment certificate, valid ID, and TIN.

6. Avoid Red Flags and Real Estate Scams

Be wary of sellers offering too-good-to-be-true deals or requesting payment without proper documentation. Always transact with transparency and request receipts.

7. For Preselling Properties, Verify Developer Legitimacy

Check if the developer is registered with DHSUD (formerly HLURB) and has the necessary License to Sell. Ask for updates on construction timelines and penalties for delays.

8. Research the Location and Zoning Laws

Check local zoning restrictions, flood zones, and future infrastructure developments. Proximity to schools, malls, and transport hubs greatly affects property value.

9. Consult a Real Estate Lawyer

It’s smart to have a lawyer review contracts like the Deed of Sale or Reservation Agreement. They can help spot legal loopholes and ensure your rights are protected.

10. Inspect the Property Before Paying in Full

Do a thorough site visit and physical inspection. Check for structural issues, access roads, drainage, and neighborhood conditions.

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