Aug 17, 2010
Today, it’s increasingly risky to buy real estate prospects of poor materials or workmanship, delayed, inadequate – or even absent – structures, mortgaged or absent titles, and other problems. Worst, you may find yourself duped into parting with your hard-earned money.
The dangers exist not for want of laws, rules and regulations. There’s enough legal stuff, but people do not know these. This column is meant to arm ordinary buyers with sufficient information to help prevent the headaches associated with making a real estate purchase. Here are some tips.
Look for permits and licenses. If busying with in a townhouse, subdivision or condo, the seller must be able to show subdivision approval or development permit – issued by the perspective mayor of the sanggunian bayan, or the Housing and Land Use Regulatory Board or HLURB, and a certificate of registration and license to sell, also issued by the HLURB,.
Having all these three permits is not fool-proof assurance, but guarantees at least that government will try to correct problems that crop up.
Check the title, A title indicates the existence of a piece of real estate. It contains a technical description of the property’s precise boundaries’ area identifies the name of the registered owner, and may also include annotation or record of any interest in the property.
Always insist on getting a copy. Then present this to the proper Register of Deeds to see if a copy of it is on file. To know which Register of Deeds to go to, check the upper portion of the title’s first page. You may also have the technical description plotted out to check if the bounderies are complete, and if the indicated area is accurate.
Visit the property. There is nothing like seeing property first-hand. Also bring along the people who will eventually live, or have a real stake, in property. An on-site visit will allow you to spot things that you could otherwise miss: steps are high for the small children, the room is too small, space is too cramp, etc.
Get a copy of documents to be signed and study them before signing. These include a reservation agreement ( through not always required), a contract to sell, and deed of absolute sale. For a condo, a master deed with declaration of restriction is indispensable, providing the general terms and conditions governing the projects.
Read these documents and have the provisions that are not clear explained to you by the developer and seller before you sign.
Pay special attention to provisions regarding payments – from reservation, downpayment, amortization, interest and charges for changes for delayed payments, to miscellaneous expenses. Keep track of the exact amounts, in pesos and centavos, and their due dates. Find out about project completion, when the house or unit will be finished, livable and delivered to you is clearly indicated in the license to sell.
Also make sure that there is a written record of details of what to expect in the house or unit, such as size or area, features ( with partitions, ect.) flooring, ceiling and wall finishing, electrical fixtures, color, ect.
Know the persons you are dealing with. Deal only with those who can present credentials: ID cards, letters of authority, HLURB certifications, licenses from the Bureau of Trade and Regulation and Consumer Protection of the Department of Trade and Industry. Always record the names of those you speak with – lowly clerks, mid-level or top management – their contract numbers, and the date and approximate time of the interaction.
There are many part-timers in selling real estate, one-time agents who are in this only for the commission – including well- meaning friends and relatives, if you have to deal with this bunch, look at the guy behind them with the credentials. They may still be some bad apples, but you have a better chance of going after credentialed guys, and getting some remedy should you fall into the wrong hands.
Know the seller. The permits will tell you who the seller is, but beyond that, you know the reputation of the person or entity selling to you. Check with the HLURB, which maintains records of developers. If any complaints has been files about the specific project you plan to buy into. To inquire, present the name of the owner – developer as well as the project will give you a more informed judgment of the developer’s reputation.
Lastly, don’t rely on just one of the foregoing tips. For a worry-free purchase, consider all, or most, of these tips.
REW
(Atty. William L. Jasarino)
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