When purchasing a parcel of land in Palawan, especially in prime locations like San Vicente’s Long Beach, ensuring the property's legitimacy through real estate property validation is not just a formality—it's a crucial step that protects your investment. Whether the property is offered by the owner, a licensed real estate broker, or an unlicensed agent, property validation should always be conducted to verify ownership, confirm legal standing, and uncover any hidden issues that could affect your purchase in the future.
Why Real Estate Property Validation is Essential
In real estate transactions, due diligence is key. While property owners selling their land may not always disclose potential problems, it is the responsibility of the buyer to ensure that the property they are purchasing is free from legal disputes, boundary issues, or ownership complications. This is where licensed Real Estate Brokers come in, as they are trained and legally bound to conduct a thorough validation process before offering any property for sale.
For properties not listed by a licensed real estate broker—such as those offered by the owner directly or by unlicensed agents—the need for validation becomes even more critical. Fly-by-night agents often operate outside of the legal framework and are less likely to care about the laws governing property transactions. Under Republic Act 9646 (RESA Law), only licensed real estate professionals are legally authorized to sell real estate in the Philippines. If an agent is willing to violate this law, it raises serious doubts about their willingness to adhere to other legal requirements, such as verifying property ownership and conducting due diligence.
What Does Real Estate Property Validation Entail?
Property validation involves several critical steps designed to protect buyers from potential legal, financial, or ownership issues. These include:
Verification: The first step is to check the property’s records with various government offices, such as the Registry of Deeds, Assessor’s Office, and Barangay Office. This ensures that the property has the proper documentation and that no outstanding issues—such as liens, encumbrances, or adverse claims—exist.
Research: Researching the property involves tracing the ownership history. This step includes retrieving deeds of sale, waivers of rights, tax declarations, and other documents used to convey the property from the original owner to the current owner. Understanding the chain of ownership is crucial to ensure that no third party has a claim to the property that could arise after the sale.
Analysis: Once the documents are gathered, the next step is to analyze whether the ownership was fully transferred at each stage. This includes checking if the authorized signatories are complete and whether all required individuals (such as heirs in the case of inherited properties) participated in the sale. If any heir or party was excluded, they could raise a claim in the future, jeopardizing the buyer's ownership.
Investigation: A thorough investigation may involve interviews with neighboring lot owners, consultations with Barangay officials, and checking for any recorded boundary disputes or adverse claims. For instance, a Barangay Captain may have a record of disputes over the property that are not visible in government databases but could affect the property in the future. Speaking with neighbors can also reveal valuable insights into any past sales, disputes, or illegal activities involving the land.
Identification: This step involves confirming that the person selling the property is indeed the rightful owner. It requires identifying any ownership claims and ensuring that all public records and ownership documents are consistent. Verifying the lot number, lot area, and the owner's name helps prevent cases of fraud or misrepresentation by unscrupulous sellers.
Optional: Boundary Confirmation
For added security, buyers may choose to engage the services of a licensed Geodetic Engineer to confirm the property’s boundaries. This step is particularly important if there is any suspicion of boundary disputes or overlapping claims. Geodetic Engineers can help verify the exact dimensions and boundaries of the lot, ensuring there are no encroachments or overlapping claims with neighboring properties.
Risks of Skipping Property Validation
Failing to conduct proper property validation can lead to significant risks, including:
- Double Sale: In some cases, properties may be sold multiple times to different buyers, resulting in lengthy and costly legal battles.
- Undisclosed Heirs: If the property was inherited, undisclosed heirs may later emerge and challenge the sale, claiming they were deprived of their rightful share.
- Fake Documents: In some fraudulent transactions, documents such as the Deed of Sale may contain forged signatures or other falsifications, making the sale invalid.
- Government Projects: Properties may also be impacted by upcoming government projects, such as road expansions or zoning changes, which could reduce the property's value or lead to expropriation.
By conducting proper validation, buyers can avoid these risks and ensure they are making a sound investment.
The Importance of Hiring Licensed Real Estate Brokers
Licensed Real Estate Brokers are professionally trained and legally obligated to conduct thorough validation and due diligence on every property they offer for sale. They ensure that the property is free from legal complications and that all ownership documents are valid and up-to-date. Engaging the services of a licensed broker offers peace of mind, knowing that you are working with someone who understands the complexities of property ownership in the Philippines.
Moreover, local licensed brokers often have firsthand knowledge of the area and the property’s history. They can provide invaluable insights into the people, land transactions, and potential risks associated with certain properties. This local expertise is especially important when dealing with properties in areas like Palawan, where land ownership issues are more common due to its high demand and rapid development.
Always Validate Before You Buy
Real estate property validation is not an optional step—it's a necessity for anyone looking to buy property in Palawan or any part of the Philippines. Whether the property is offered directly by the owner, through a licensed broker, or by an unlicensed agent, the validation process ensures that the buyer is protected from potential risks such as ownership disputes, boundary issues, or legal complications.
In a market where properties can quickly become the subject of multiple sales, disputed ownership, or fraudulent transactions, the only way to secure your investment is to engage the services of a licensed Real Estate Broker and conduct thorough property validation. Don’t leave your real estate purchase to chance—verify, investigate, and confirm every detail before closing the deal.
