Gregorio Miguel Pallugna
IT’S a new year and many of you might be considering to buy a new house and lot. Before getting a new spread though, you most probably would research about good practices in doing it. An article I found online instructs that before getting a new house and lot, make sure that you do it at the right time. I nod my head in agreement, until I read further and found that the right time should be a birthday of a family member “with priority going to the head of the family and factored for best results.” It turns out I was reading an article on feng shui guidelines in getting a new house. It even went on to saying that upon transferring to your new home, make sure to carry a container filled with rice and two red pockets. Whatever that means, it is understandable that many of us would want to make sure that we are taking all precautionary measures in buying a new house and lot because it is a significant decision that will affect our lives for a considerable period of time.
A client recently came to my office telling me that she had bought a parcel of land which she had planned to build a house on but was not able to do because she got sick of cancer and had to undergo treatment. Her problem now is that she had found that the lot she bought was already titled in the name of another person. She apparently did not bother to register her Deed of Sale, she did not secure a tax declaration under her name and did not apply for the transfer of the title. Sometimes, we are so concerned about the spiritual and social traditions of getting a new house and lot that we forget to follow the legal traditions which could prevent us from having to get a lawyer in the future. Hence, without discounting the effects of feng shui or shamanic practices, it is important to remember these guidelines to consider before buying a parcel of land, a house or both.
First, make sure that you are buying the house and lot from the actual owner. You might think that this is a no-brainer but many of the clients who come to our office get into trouble because the property they bought was sold by a non-owner. How do you do this then? Check if the land has a title in the name of the seller issued by the appropriate government agency such as the Land Registration Authority or the DENR. Once you have a copy of the title, see if there are annotations on any of the pages. Any claims against the property annotated on the title serves as a notice to the whole world and you cannot claim innocence or good faith because you failed to check the same. Also, do not rely on the title presented by the seller. Double check with the register of deeds if the same title exists or has been cancelled already. There may also be new annotations on the title which have not yet been reflected in the document shown to you. The latest and most updated copy is with the office of the Register of Deeds.
Secondly, make an ocular inspection of the property. Check if the title shown to you is the actual property you have seen. A private survey will verify the identity of the lot. Should there be any occupants, make sure that they will readily vacate the property once you buy it. A considerable number of the cases we have involving bought property concerns the eviction of illegal occupants. Although a clean title will legally be sufficient basis for you to believe in good faith that the property has no claimants, failing to check the property will earn you the headache of having to file ejectment cases later.
Third, never pay any amount to the seller without first executing a contract. Always remember that under our laws, real property such as a house and lot should be sold through a notarized written document. Although, a verbal agreement coupled with partial payment will already bind the parties to the contract, other persons will not be affected by the agreement until there is a notarized contract registered with the Register of Deeds. Plus, it will be difficult to enforce an agreement that is not set on paper. If the seller decides to deny the agreement, it will be your word against his.
Once you execute an agreement always make sure that it is properly notarized and registered with the Register of Deeds. Make sure that the capital gains tax and all real property taxes due are paid. You will have to settle all of this when you wish to transfer the title and tax declaration under your name. Urge the seller to pay all of these immediately because there will be surcharges and interests that will accrue when you pay after the deadline.
Finally, immediately after executing the contract, pay real property taxes religiously and exercise acts of dominion over the property. That is, you should do acts that owners of property normally do such as fencing the property, hiring a caretaker to live inside, planting trees or building a house. These will reinforce your claim as the owner and will be useful proof of ownership should somebody question your title later on.
There are countless of ways that your title in real property can be attacked legally and neglecting to fortify your claim early on may expose you to the risk of later losing the property you have invested good money on. By all means, bring a bag of rice when buying a house and lot, wear the most colorful clothes and light a red candle for good fortune, but never ever forget to consult a lawyer before anything else.
