Due Diligence Before Purchasing Properties in the Philippines

Before buying any property in the Philippines, one should conduct the due diligence required of them and ensure that the property to be purchased is clean from any liens and encumbrances. Due diligence is “such a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent man under the particular circumstances; not measured by any absolute standard, but depending on the relative facts of the special case.”[1] If no proper due diligence is conducted, the outcome may result to a lot of headaches when another party suddenly surfaces after the sale and alleges that he is the true owner of the said property or claims that the said property is under litigation. More often than not, it will be very hard to collect what has already been paid to the seller and investors end up losing their money. The Supreme Court has held that “one who buys a property with knowledge of facts which should put him upon inquiry or investigation as to a possible defect in the title of the seller acts in bad faith.”[2]


This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance in conducting due diligence of a property in the Philippines, please feel free to send us an email at roselle.jean@nonatolaw.com.

[1] A Legal Dictionary, Black’s Law Online Dictionary, <http://alegaldictionary.com/due-diligence/>, accessed on September 1, 2021. [2] Spouses Pudadera v. Magallanes, G.R. No. 170073, October 18, 2010.

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