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Browse our 12 legal questions about Real Estate Due Diligence in Philippines and the lawyer answers, or ask your own questions for free.
Real Estate Due Diligence in Cebu City, Philippines, involves the comprehensive evaluation of a property before purchasing it. This assessment can include reviewing documents, checking legal compliance, setting real estate taxes, and confirming there are no encumbrances or liens on the title of the property. It is a critical process ensuring the buyer is completely aware of any possible issues, potential risks, or underlying value tied to the property.
Engaging a lawyer becomes necessary in situations where it is complex to assess legal documents, identification of property lines, and understanding local zoning laws. A legal professional can conduct a thorough review to detect any possible concerns or problems with the property. They will also preserve your rights during negotiations, resolve disputes if any, and assist in closing the deal successfully.
In Cebu City, like the rest of the Philippines, the "Torrens" system is followed. It guarantees that the person shown in the title is the legal owner of the property. Tax Declaration of Real Property is a key document which confirms that the owner has paid obligatory taxes. Laws in Cebu City mandate that all land sales be authorized by the Department of Agrarian Reform, regardless of whether the property falls under agrarian land or not.
Freehold is the primary form of land tenure in Cebu City, where the property owner holds full ownership rights.
Direct land ownership by foreigners in the Philippines, including Cebu City, is not allowed. However, there are legal structures such as leasing or incorporating a domestic corporation for owning real estate.
Foreigners can lease land for a period not exceeding 50 years, and the lease can be renewed for another 25 years.
While it's possible to conduct due diligence individually, legal assistance is advised due to the complexity of laws and rules, and to ensure a thorough check.
If an issue is discovered during due diligence, it can be addressed before finalizing. Depending on the problem, the purchase might be renegotiated or even cancelled.
You can refer to governmental bodies such as the Department of Agrarian Reform, Land Registration Authority, and Philippines Securities and Exchange Commission for legal resources. Cebu Real Estate Board and The Philippine Association of Real Estate Boards can also provide assistance.
Should you need legal assistance in Real Estate Due Diligence, it is advisable to seek reputable law firms or legal professionals with expertise in Philippine real estate law. Research lawyers who have substantial experience in handling real estate due diligence in Cebu City. Conduct initial consultations to understand their approach, and check client reviews to verify their effectiveness and reputation.
