To successfully purchase a land and to protect your hard-earned money, there are few legal documents you should be familiar with. These sample documents are proof that you bought the property from its seller and that you are now the legal owner of the said land or property. After doing an extensive research about the property, and some useful tips before the actual sale, this is the part 3 of our post to help you make a sound decision in buying a land.
Upon purchase, make sure that the contract is notarized by a lawyer and secure copies of the contract of sale which is needed as a proof of purchase. Again this is proof that you already purchased the land and you can do whatever you want to do with it. So, in case someone will show up and claim the property (without evidence), they won’t be able to take it away from you. Make sure to put everything in writing (and legally), after all, it’s your investment we are talking about.
So here are the 6 legal document needed in purchasing land here in the Philippines.
Contract to Sell (Reservation Agreement)
It is the written agreement that both the buyer and the seller. It contains the terms and conditions that you both agreed on. Contract to sell is issued if the buyer needs to put up a downpayment first and pay the remaining balance after some time (depends on what they agreed on). This will serve as the reservation agreement, meaning that the seller will take the property off the market. However, until the remaining balance is settled, the property’s ownership will still be under the seller.
Deed of Absolute Sale
After the full payment is settled, a Deed of Absolute Sale will be made, then file it with the Registry of Deeds before it will be issued to you. This a notarized document which legally states that you bought the property from the seller and you are now the owner of the land.
Deed of Adjudication with Sale
This is the type of document needed if the property has not yet transferred to the seller’s name and if he managed to acquire the said property through inheritance, and the seller is not the only heir. To explain this further, here’s an excerpt from Article 774 of the New Civil Code of the Philippines:
“If succession is the mode of acquisition whereby the property owned by the decedent, as well as his rights and obligations are transferred upon his demise to his heirs, devisees, and legatees”.
Basically, the Deed of Adjudication with Sale states that all the surviving heirs of the property have made the decision to sell the property, making this contract safe for unforeseen disputes regarding the sale among heirs in the future.
Certificate of Titles
This is the legal proof and the best evidence of land ownership. You will have a copy of this that will be issued by the Registry of Deeds. If you bought a house or lot the land title will be the Transfer of Certificate of Title (if it was issued succeeding to the first title), but if you buy a condominium unit, a Condominium Certificate of Title will be given to you. Here is a sample:
As we mentioned in our previous article, you must confirm that the seller is up to date with the property tax payments. After transferring the title to your name, you have to request a Tax Declaration from the Assessor’s office in your municipality. SUbmit the new title and a photo of the property. Once done, the tax obligations will now be under you. Here’s a sample:
If you have all the above-mentioned documents, congratulations! meaning you successfully purchased the property you desire. But if you are not knowledgeable about these documents or you just don’t want hassle in processing these, our team here at Infinit3Solutions are here to assist you in purchasing land here in the Philippines.