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Conducting comprehensive due diligence helps in uncovering potential risks and liabilities associated with the property such as issues on double titling and non-registration. Once the buyer has a certified true copy of the title and verified the seller’s identification or authority, you may proceed with the following steps:

STEP 1.  Request a copy of the Tax Declaration and Tax Clearance of the property

Copies thereof can be requested from the Office of the Assessor. These can help the buyer check if the real property tax is up to date and if there are no delinquent taxes. If there are unpaid taxes, this may entail additional costs or cause a further delay in your transaction with the seller. 

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STEP 2.  Obtain a copy of court clearances for the property.

Court clearances can be obtained from the Office of the Executive Clerk of the Court of Regional Trial Courts and the Office of the Clerk of Court of the Municipal Trial Court in Cebu. These clearances will show whether or not the land is subject to litigation or encumbrances.

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STEP 3. Request a copy of the Zoning Certification 

The certification can help the buyer identify and verify the property’s zoning classification, whether it is for residential, agricultural, industrial, or commercial. 

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STEP 4.  Conduct an ocular inspection of the property.

This will enable the buyers to see if there are occupants, lessees, and informal settlers on the property. 

Performing due diligence on a real property helps buyers avoid bogus sellers and properties. Remember that your hard-earned money should always be invested in an existing property with a legitimate seller as this will save you from stress and headaches in the long run.

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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 or business advisor.

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