Due diligence is a process of researching and verifying aspects of real property, including its ownership and seller’s authority, before purchasing the same to ensure that buyers are informed and protected against potential legal and financial pitfalls. 

STEP 1. Obtain a copy of the Certificate of Title of the property. 

If the seller only has a photocopy or, an image of the title itself, it is crucial that the buyer will go to the Registry of Deeds and request for a Certified True Copy of the title. This will allow the buyer to determine if the property subject of the sale is the very same property covered by the title and if the name of the seller is the same as the registered owner. Some details that need to be considered are the name/s of the registered owner/s, the property's size, and the property's location. 
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STEP 2. Ensure proper authorization of the seller.

More often than not, buyers deal with agents of the seller. If that is the case, it is important for the buyer to check if the agent was duly authorized by the seller, through a notarized special power of attorney. It is also crucial that the buyer has proper identification of both the seller and his/her agents, such as their full names, valid government IDs, contact information, and address.

If the seller is a child of the registered owner, the buyer has to inquire whether he/she has surviving parents and siblings, for this may lead to settling an estate prior to closing a sale. 

After verifying the identity of the property and the authorization of the seller, the buyer can decide if he/she can safely proceed in purchasing the property. To avoid falling for fake titles and bogus sellers, it is vital that the buyer knows the real property and the seller he/she is dealing with.

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Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance on conducting due diligence in Cebu and/or Cebu City, consult with a legal professional.

‍Padin & Partners Law Offices is a full-service law firm based in Cebu City, Cebu Philippines, that offers services related to real estate transactions, including the sale of real property. For consultations: book an appointment or reach us at +63 (32) 316-1540 or +63 917 188 0361.