Authentic\/ Genuine Land Title versus Fake Land Title

PART I

If they present to you the original copy of the title, check the quality of the paper used. The title is exclusively printed by the Bangko Sentral ng Pilipinas. This is a judicial form and the BSP uses a type of paper which contains several security features. If the title is held up against a light, a Land Registration Association watermark is visible through the paper.

If you are however unsure whether the physical features of the title is genuine, a trip to the Register of Deeds to show the title to them is a better option. Beware that there are colored xerox copier that can copy a title perfectly and can be passed upon as the original.

If the seller is presenting you an Owner’s Duplicate Copy (ODC) of the title, go the Register of Deeds to ask for a Certified True Copy of the title to ensure its authenticity. Do not just rely on the owner’s duplicate copy of the title presented to you by the seller. The ODC does not contain any memorandum of encumbrances. A Certified true copy of the title from the Register of Deeds contains information about mortgages, liens and other encumbrances and these are annotated in the memorandum of encumbrances at dorsal portion of the title. It is so unfortunate that there are many people who do not ask a certified true copy of the title from the Register of Deeds. They just rely on the title or ODC presented to them by the seller which do not contain any information about the claim of other people should there be any.

If the seller is presenting to you the Owner’s Duplicate Certificate of title, check likewise its authenticity. The owner’s duplicate copy contains the marking “Owner’s Duplicate Copy” on the left side of the form. There should also be a red seal on the lower corner of the form.

PART II

Years ago, I handled a case when a client of mine bought a land that is possessed by another person. We fought long and hard in court until we eventually won. Now he is in possession of the land. But that could have been avoided if only he exercised due diligence in investigating the documents presented to him by the seller.

Last Sunday, I gave you the first part of the seven practical tips to determine whether it is safe to buy the land offered to you based from the title shown or presented.

Now I am giving you the next three tips.

Check the technical description on the title. It is wise to ask the help of a geodetic engineer to determine the metes and bounds of the property and to check whether the land shown to you by the seller is indeed the one covered by the title. There are instances where the land covered by the title is different from the land presented by the seller as the property being sold.

If the person selling the property is not the landowner named in the title, check his authority. Is he empowered by a Special Power of Attorney? If he has an SPA, it is also wise that you talk personally to his principal or the landowner himself to verify whether indeed an authority is issued in his favor. This is part of due diligence on the part of the buyer. There are instances that the principal is already dead but the SPA he/she issued is still being used by the agent. Please bear in mind that once the principal is dead, the authority he issued ceases upon his death. There are also instances that there are sellers who use a falsified Special Power of Attorney. In the documents I process in behalf of my clients, I always require that the seller is the landowner himself or if he has empowered an agent, I see to it that the SPA is duly issued and authentic. Never rely on xerox copy of a special power of attorney.

It is wise also to check the identification card of the seller or his agent especially if they are not known to you personally. It is not wrong to ask the personal information of the seller or agent. This is a practical step to ensure that the person claiming ownership of the property is indeed the registered owner.

PART III

Check if the seller or the landowner is the one in possession of the property being sold. A trip or ocular inspection to the land being offered for sale is a must. If someone is occupying the land, ask from the occupant himself how, when, and why he is there. There are instances that the occupant is claiming ownership of the land and the person selling it may just want to get rid of the problem and pass it on to you without you knowing it.

Finally, it is wise to check whether the real estate taxes are paid. Check whether the owner has declared the property he is selling you for taxation purposes. Get a copy of his latest tax declaration and a copy of the latest tax receipts evidencing payment of his taxes over the land. If not sure, a visit to the assessor’s office is a good idea. There, you can check the status of the taxes due on the property. There are instances that taxes are not yet settled. In this case, you can haggle for a reduction of the selling price especially if you the buyer is the one to pay the transfer taxes and all other taxes over the property.

A real property is a wise investment. But buying one requires vigilance and some sleuthing or investigation on the part of the buyer.

Do not just be deceived by the potential of the property being offered to you by the seller or the exhorbitant discount offered to you. Do not allow your emotion to be ruled by your reason. When you get too excited to buy a property, pause, assess the information given to you and have an informed decision before you sign the deed of absolute sale and part with your hard earned money.