Many first-time buyers focus on the price, but the most important document to review is the land title.
Before paying a reservation fee, earnest money or down payment, check these key details:
1. Registered Owner
Make sure the seller's name matches the name on the title and their valid ID. If the seller is not the registered owner, ask for the legal authority allowing them to sell the property.
2. Title Number
Verify that the title number matches the latest Certified True Copy issued by the Registry of Deeds.
3. Lot Area
Compare the land area stated on the title with the Tax Declaration and the actual property.
4. Technical Description
Check if the property's location, boundaries, and dimensions are accurate. If you're unsure, consider hiring a licensed geodetic engineer to conduct a relocation survey.
5. Annotations (Most Important)
Read the annotations on the title carefully. Look for mortgages, adverse claims, notices of lis pendens, levies, court orders, easements, or other encumbrances. These don't always prevent a sale, but they should be fully understood before you proceed.
6. Previous Title Reference
This helps trace the ownership history of the property if further verification is needed.
7. Request a Certified True Copy
Never rely on a photocopy alone. Always obtain the latest Certified True Copy from the Registry of Deeds to confirm the title's current status.
Pro Tip:
A title alone is not enough. Compare it with the Tax Declaration, updated Real Property Tax receipts, approved survey or lot plan, and the property's actual location.
Spending time and money on proper due diligence is far less expensive than dealing with legal disputes later.
Remember, not every property with a title is automatically a safe investment.
If you're buying property for the first time, working with a licensed real estate broker and conducting proper due diligence can help you avoid costly mistakes.
