OFW, Old Friends, and Overeager Sellers: How Not to Buy a Lot on the Spot
(or, The Perils of Buying Property Just Because Your Kumare Said It’s Fine)
By: Atty. Eugenio L. Riego II, LLB, MPA, REB
The Situation
Meet Pedro, a hardworking OFW who finally decided to take a well-deserved break from years of making the world go round (one remittance at a time). He visited his mother’s quaint hometown in Mindanao—a place where the mangoes are sweet, the air is fresh, and everyone seems to know your family tree better than you do.
While reconnecting with long-lost titos, titas, and random people who claim to be his second cousins twice removed, Pedro ran into his childhood best friend Juan. After a warm embrace and some tsismis over a glass of salabat, Juan said:
“Pare, may 1,000 square meter lot ako. Malapit lang, near the highway. Very good investment! Cheap lang, pangkaibigan price pa! Ako mismo ang magbebenta sa ‘yo.”
Pedro was intrigued. After all, land is a good investment—especially one near a highway (code word for soon-to-be-commercial).
Juan explained that the property was sold to him by the original owner, and although the title hasn’t been transferred yet, there’s already a Deed of Sale. He then said,
“Let’s skip some taxes. You can buy it directly from me. Let’s execute the Deed of Sale now while you’re still here. Wala nang tanong-tanong.”
At this point, Pedro started to feel a little suspicious. Why the rush? Why skip the title transfer? Can someone really sell land they haven’t officially registered under their name? But Pedro didn’t want to offend Juan. After all, they’re old friends. And in the province, feelings sometimes matter more than facts.
So, he asked himself:
Is the Deed of Sale from the previous owner enough for Juan to sell me the land?
And what should I do to protect myself without making Juan feel like I don’t trust him?
The Legal Answer
Pedro’s gut instinct is correct: he should slow down faster than a tricycle approaching a speed bump.
In real estate transactions, ownership is proven not by a Deed of Sale alone, but by the Transfer Certificate of Title (TCT) issued by the Registry of Deeds. The rule is simple:
Only the registered owner of the property has the legal right to sell it.
A Deed of Sale is just a private agreement. It does not, by itself, transfer ownership. For Juan to legally sell the property, he must first register the original Deed of Sale (from the original owner to him) with the Registry of Deeds and have the title transferred to his name.
Without that, Juan is not yet the legal owner. In fact, if Pedro proceeds with the sale and the property is still under the name of the original owner, then Pedro has no enforceable right to claim ownership over the property—even if he paid full price.
Pedro may end up being the proud owner of a piece of paper… and a whole lot of regret.
The Supreme Court Case
A relevant Supreme Court case is Caburnay, et al. v. Sison, et al., G.R. No. 230934 (2020)
In that case, the Supreme Court ruled that:
“The perfection of a contract of sale should not, however, be confused with its consummation. … sale by itself does not transfer or affect ownership; the most that sale does is to create the obligation to transfer ownership. It is tradition or delivery, as a consequence of sale, that actually transfers ownership.”
Further, it is a well-accepted principle that:
“One cannot give what one does not have. Nemo dat quod non habet.”
In other words, Juan cannot sell something he legally doesn’t own yet. Even if there’s a Deed of Sale between him and the original owner, until the title is registered under Juan’s name, he has no right to pass ownership to Pedro.
The Court emphasized the importance of due diligence in real estate transactions. Buyers must check the title, verify ownership, and ensure that the person selling the property is indeed the registered owner. Otherwise, the transaction is voidable, risky, or completely invalid.
The Quick Advice
So, dear readers, if you ever find yourself on a beautiful vacation in your ancestral land, and an old friend offers you a slice of paradise for a “bargain price,” take a breath before pulling out your checkbook.
Let’s make this crystal clear:
Buying land is not like buying fish in the palengke.
You don’t just ask, “Magkano ‘to?” then walk away with it in a plastic bag.
Here’s what you (and Pedro) should always remember:
1. Conduct due diligence
Don’t rely on your seller’s smile, handshake, or “Pare, sa ‘yo na lang ‘to.” Visit the Registry of Deeds. Verify if the title exists, who owns it, and if there are liens or encumbrances. Google is good, but the Registry is better.
2. Only buy from the registered owner
If Juan isn’t on the title, then Juan has no business selling. Even if he built a fence, planted bananas, or claims his dog guards the place, it doesn’t make him the legal owner.
3. Don’t skip taxes or legal steps
When people say, “I didn’t register the sale to avoid taxes,” what they really mean is: “I didn’t complete the transaction properly.” And improper property transactions often lead to expensive litigation later. It’s like saving ten pesos today and paying a hundred thousand tomorrow.
4. Insist on proper documentation
Every real estate sale should include:
- Original and certified true copy of the Transfer Certificate of Title
- Properly executed and notarized Deed of Sale
- Tax declarations and proof of real property tax payments
- Valid IDs of the seller
- Proof of ownership history if the seller is not the original owner
5. Don’t be shy to ask questions
You can protect yourself and be polite. Say something like:
“Juan, I trust you, pero syempre, lupa ito. Malaking halaga. Okay lang bang ipa-check ko muna sa abogado ko? Para din sa kapakanan nating dalawa.”
Friendship should never be used as a shortcut for legal safety. And if your seller gets offended when you ask for documents? That’s your cue to run faster than the Bureau of Internal Revenue after unpaid capital gains.
Final Words
Pedro may be new to town, but he doesn’t have to be new to the ABC of land acquisition:
• Ask for the title
• Beware of “shortcut” deals
• Confirm the seller’s authority to sell
And if you’re ever in doubt?
Remember the age-old legal advice:
“When in doubt, don’t shell out.”
Because buying land isn’t just about money—it’s about peace of mind, legality, and making sure your future home isn’t built on a legal sinkhole.
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