Question 1

What is HLURB/DHSUD license?

Accepted Answer

HLURB (now DHSUD - Department of Human Settlements and Urban Development) regulates real estate developers and brokers. Before buying from a developer, verify their License to Sell (LTS) at DHSUD. This protects you from fly-by-night developers. You can check licenses online at the DHSUD website.

Question 2

What is the difference between Contract to Sell and Deed of Sale?

Accepted Answer

Contract to Sell: Preliminary agreement where ownership transfers only upon full payment. Used during installment period. Deed of Absolute Sale: Final document transferring full ownership. Executed after full payment. This is registered with the Registry of Deeds to transfer the title.

Question 3

What is an encumbrance on a property title?

Accepted Answer

An encumbrance is any claim or lien against the property, such as: mortgage (bank loan), adverse claim, lis pendens (pending lawsuit), easement, or levy on attachment. Check the title's annotations at the back page. Clear all encumbrances before buying to avoid legal problems.

Question 4

How do I verify if a property title is clean?

Accepted Answer

Steps: 1) Get certified true copy from Registry of Deeds, 2) Check owner's name matches seller, 3) Review annotations/encumbrances at the back, 4) Verify tax declaration is updated, 5) Check for real property tax arrears, 6) For untitled land, check tax declaration history. Consider hiring a lawyer for high-value transactions.

Question 5

What is Extrajudicial Settlement?

Accepted Answer

Extrajudicial Settlement is the process of dividing an estate among heirs without going to court. Requirements: All heirs must agree, no debts or the estate is sufficient to cover debts, and must be published in a newspaper. After settlement, heirs can transfer the property title to their names or sell it.

Legal & Documentation FAQ

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Legal & Documentation FAQ

1What is HLURB/DHSUD license?

2What is the difference between Contract to Sell and Deed of Sale?

3What is an encumbrance on a property title?

4How do I verify if a property title is clean?

5What is Extrajudicial Settlement?

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