The 4 Basic Requirements You Need When Buying a Property 

What are the basic requirements for buying properties in the Philippines?

1. Verify ownership
2. Assess your finances (or apply for a loan)
3. Prepare your official IDs
4. Submit the required legal documents

There’s a lot of preparation that goes into buying a new property in the Philippines. Aside from researching the location and the home itself, you also have to gather plenty of requirements to start the purchasing process. But what exactly do you have to prepare? We’ve compiled a list of the basic requirements for buying properties in the Philippines. Read on to see which things you need to get ready so you can buy your dream home!

Verify ownership

One of the first requirements to get when buying a property is verified ownership. You don’t want to end up buying a property that is wrongfully claimed by one party or is under ownership dispute. This is especially common in older properties.

To verify that the person you’re dealing with is the rightful property owner, ask the seller for a photocopy of their property title. You will need this to request a ‘Certified True Copy’ of the title from the Register of Deeds. This certificate will show the name of the owner and other important information.

Assess your finances (or apply for a loan)

Once you’ve verified ownership, the next thing to do is check your financial preparedness. One way to check if you are ready is to see if you can afford the 20% down payment on the property. If you have the cash reserves to pay the downpayment, it’s a good sign that you have the finances to afford the house. 

That said, you can also apply for a loan if you don’t have enough money for full payment. You have two options for housing loans in the Philippines — a public loan from PAG-IBIG or a private loan from a bank. Major banks that provide housing loans include BDO, BPI, Metrobank, and Security Bank. 

At Pueblo de Oro, we accept several payment schemes through Pag-IBIG or private bank loans. Using these schemes, you can purchase one of our homes for as low as 10% equity of the selling price — plus miscellaneous fees. We offer payment plans of up to 36 monthly installments without interest. More information on this can be found in our FAQ. 

Prepare your official IDs

Next, prepare your official IDs and relevant documents. The requirements depend on what category you fall under:

1. For Single Persons with Filipino Citizenship:
   1. Two (2) Valid Government IDs (Brgy. Clearance is acceptable in absence of one Gov’t ID).
   2. Tax Identification Number (Duly filled-up BIR Form 1904 is acceptable in absence of TIN).
   3. Birth Certificate.
   4. Two (2) original latest proof of billing with the same address, no need to be under the buyer’s name. 
      1. If not under the buyer’s name, provide a copy of the Certificate of Residency (Brgy. Clearance with a stated address is acceptable in absence of one billing).
2. For Married Persons with Filipino Citizenship:
   1. Two (2) Valid Government IDs of both spouses (Brgy. Clearance is acceptable in absence of one Gov’t ID).
   2. Tax Identification Number of both spouses (Duly filled-up BIR Form 1904 is acceptable in absence of TIN).
   3. Marriage Certificate.
   4. Two (2) original latest proof of billing with the same address, no need to be under the buyer’s name. 
      1. If not under the buyer’s name, provide a copy of the Certificate of Residency (Brgy. Clearance with a stated address is acceptable in absence of one billing).
3. For Widow/Widower with Filipino Citizenship
   1. Two (2) Valid Government IDs (Brgy. Clearance is acceptable in absence of one Gov’t ID).
   2. Tax Identification Number (Duly filled-up BIR Form 1904 is acceptable in absence of TIN.
   3. Marriage Contract.
   4. Death Certificate of Spouse.
   5. Two (2) original latest proof of billing with the same address, no need to be under the buyer’s name. 
      1. If not under the buyer’s name, provide a copy of the Certificate of Residency (Brgy. Clearance with a stated address is acceptable in absence of one billing).
4. Filipino Citizen Married to a Foreigner
   1. Passport and one (1) valid ID of husband and wife.
   2. Tax Identification Number of Filipino buyer (Duly filled-up BIR Form 1904 is acceptable in absence of TIN).
   3. Marriage Certificate.
   4. Waiver of Conjugal Rights.
   5. Two (2) original latest proof of billing with the same address, no need to be under the buyer’s name. 
      1. If not under the buyer’s name, provide a copy of the Certificate of Residency (Brgy. Clearance with a stated address is acceptable in absence of one billing).
5. Filipino with Dual Citizenship
   1. Passport and one (1) valid ID of husband and wife (if married).
   2. Tax Identification Number of Filipino buyer/s (Duly filled-up BIR Form 1904 is acceptable in absence of TIN).
   3. Marriage Certificate or Birth Certificate
   4. Declaration of Citizenship
   5. Two (2) original latest proof of billing with the same address, no need to be under the buyer’s name. 
      1. If not under the buyer’s name, provide a copy of the Certificate of Residency (Brgy. Clearance with a stated address is acceptable in absence of one billing).

Submit the required legal documents

There are also several legal documents you have to file to start the purchasing process:

1. Letter of Intent (LOI) — A non-binding document that you should present to the seller. The LOI declares a serious intent to buy the property in question. The LOI should be handwritten by the buyer. As a housing developer, we (Pueblo de Oro) have templates that you can copy and then sign.
2. Reservation Letter — This document, when signed by the seller, reserves the property for you (the buyer). Like the LOI, it shows the seller’s commitment to take the home off the market, and reserve it for you and you only. 
3. Contract to Sell — This document contains all the final terms, conditions, and fees of the sale. This is given by the seller to you after you have made your down payment. The seller still retains ownership of the property until you have paid the balance (either through your own finances or through a loan). This document needs to be signed by both parties and notarized to be legally binding.
4. Letter of Guarantee (LOG) — This document is issued by the financial institution where you took out your loan. It guarantees that the financial institution will cover any costs if the buyer defaults. An email LOG is adequate. 
5. Deed of Absolute Sale — This document is given once the full payment, plus registration fees for the property has been made. It declares that the seller has given all the interests and rights to the property to you. This document needs to be signed by both parties and notarized to be valid. 
6. Certificate Title — This document is issued by the Registry of Deeds in the city or municipality that which the property is located in. It certifies your exclusive rights to the property. If the property is a condominium, then this document is called a Condominium Certificate of Title.
7. Tax Declaration — You have to request this document from the City/Municipality Assessor’s Office. It declares the tax obligations of the property to be under your name. Apply for this document by submitting to the Assessor the new title and photo of the property for processing.

Key Takeaway

There are a lot of documents and other requirements for buying properties in the Philippines that you have to prepare — but don’t get frustrated! With our guide and the help of experienced agents at Pueblo de Oro, we can help make your transaction with us an easy, hassle-free experience! Contact us today to get started on reaching one of life’s greatest milestones.