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PROPERTY TITLE PROBLEMS IN THE PHILIPPINES

property title problems

Property Title Problems in the Philippines

A lot of Filipinos Property Rich but Cash Poor

For the past year I have seen my wife get well established in the Dumaguete Real Estate market, and one of the things I have seen over and over again is how so many Filipinos are property rich, but cash poor. The vast majority of raw property that comes across her desk is for the most part unsaleable because of property title problems that are overwhelming.

This seems to be in most part due to the fact that the sellers’ interest in these properties are from inheritance and usually it is several generations removed from the original owner before the issue of property title problems are addressed.

The beginning seems to be what is called a “mother title” owned by an ancestor and upon their death, the justified heirs duly inherit a stake in the property as laid out by Filipino statute. ( I will not go into trying to explain in this article, as it is a whole complicated subject in itself). When the mother title is passed down, numerous things are supposed to happen in order for the heirs to gain their own titles. These include such things an “extra judicial settlement” whereby the parties agree to the division of the land and who gets what. At that point there are costs involved including estate taxes, legal fees and surveying charges, which in most cases are far beyond the means of the average Filipino family. Not being able to complete that process, the heirs do nothing and next thing you know, some of the heirs die, bringing their heirs into the picture. Before long there can be so many people involved that not only is cost a factor but the added hurdle of reaching a consensus among the large group that now has to be in agreement but who have differing views.

When buying a property, it is crucial to gain a full understanding of the background of the land including who is involved and what the costs will be to get everything in order. The most common scenario  if a person deems the property to be well worth the hassle, is that part of the sale price will have to be paid up front to work through all these legal titling hurdles. As well, the buyer will require a whole lot of patience since things in Philippines do not seem to happen quickly or easily.

Absence of a purchaser who will endure the hassles, that handed down land will probably remain unsold for years to come, leaving the Filipinos who own it in a continual state of being property rich and cash poor. Each succeeding generation of heirs will just add to the property title problems by adding additional complications.

issues of Property title  in the Philippines can be a sad state of affairs, unless addresses properly!

(8) Comments

  1. Angel Christopher

    on   said 

    I live in the US with my mother. She has a quit claim deed for property in Dauin, Negros Oriental. We have individuals reaching out to us to have her sign the property over. Before we have her sign anything, how can we determine the value of the property and any tax amounts due?

  2. Sophia

    on   said 

    Hi my family lives in a place for almost 37 years now. the lot in which our house is built in not owned by my parents because the mother title or the owner is not that clear. there were claims that someone owns it. they also tried to get some money for us but we told them to present to us the mother title but resist. they told us to give them money. we even got summons and meetings in barangay to settle it. they told us that they will sue us or even file a writ of demolition..it is necessary to do it?what cases can they file against us?

  3. Binky

    on   said 

    I have a scenario. The lot is owned by someone1 during pre-war but was transferred to someone2 through reconstitution even if he was not the real owner. Someone2 transferred about 80 lots at once in 1950, including someone1’s lot. So in short, he stole most of the lots and named it under him. But in the registry of deeds, the reconstituted lot has 2 original titles which is misleading. The first original title starts with zero like oct-01xx, the other original is oct-8xxx. Both original title numbers were present in one reconstituted title. Then another descripancy of the same reconstituted title was when it was cancelled and transfered to new transfer title for example t-45678, it belongs to another lot which is also misleading. Upon thorough research, it’s found out that the new transfer title was not t-45678 but t-45679, only the last number was changed to mislead again. When the copy of the t-45679 came out, it has all the details from the previously mentioned reconstituted title but what’s misleading on that transfer title, it came from another lot number once again, a lot from another place that has an existing title until now and not cancelled.

    To summarize, it’s all mismatched and registry of deeds was involved.

    It’s very confusing. The heirs of someone1 wants to recover the property since someone2 was not the real owner and has confusing land title contents. How can the confusing titles be nullified?

  4. agnes adaza

    on   said 

    Hi.. i bought a piece of land last April 6 this year from a friend whom he just bought it from a co owner who was the wife on March 15 this year. My question is, is it legal that he sell the piece of land to me even if he did not yet transfer the title into his name.

  5. gord

    on   said 

    generally , yes it is alright to sell before transfer to his own name would be complete however it would be wisethe consult an attorney for specific cases. Note that the titling process may take longer for you to get it in your name.

  6. Roy

    on   said 

    Hello.

    My other has a title, but the 2nd person on title has an incorrect name. Would my other pay a fine to have the title only in her name?

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