1. Do you own this property?
Yep there are people who buy a piece of real estate without even asking if the seller is the owner. Some people sell properties that are not even theirs. Married individuals sell property without the consent of their spouses. Siblings sell inherited property without the consent of their other siblings.
In the Philippines, a person selling real estate property who is not an owner must have a special power of attorney from the real owner, generally, a spouse not in the forefront of negotiating the sale of their property must give his/her marital consent and siblings must execute an extrajudicial settlement with deed of sale if the properties of their deceased parents are not yet partitioned among them heirs.
2. What is your proof of ownership?
A deed of sale, a will, a deed of donation, a waiver of rights or a title, all these are proof of ownership.
The easiest document to peruse is a title. Once the title is in the name of the seller without marks of encumbrance at the back, it is one clear proof of ownership.
The rest needs additional proof, a deed of sale for example will need a photocopy of the title showing that the person who is currently selling the lot to you was also the buyer from the person whose name appears in the title.
It is also necessary that documents showing transfer of rights over a piece of real estate is notarized.
3. I am getting a certified true copy of this title, can you wait for a while while I verify?
The answer of a bonafide seller to this question must be a yes.
Any self-respecting seller would allow the buyer to exercise due diligence and due diligence starts with getting a copy of the ctc for titled properties.
A recent ctc will tell you whether the property is mortgaged or not, whether the property is under litigation or not and whether there is an adverse claim over the property (indicates if someone else is exercising a claim over the property) or not.
4. Who pays the taxes?
Be very wary of this especially if the property is an inherited one. Estate tax or tax that those who are left behind are supposed to pay over a property bequeathed to them could be costly. This should be paid by the seller but some buyers are compelled to pay them because non payment of this tax means no clearance from the BIR for titling and sellers often wash their hands of this responsibility once they have the purchase price.
Capital gains and documentary stamp tax costs 7.5% of the total purchase price or the market value whichever is higher. This tax should be paid by the seller but when the sellers indicates that she is getting net of the purchase price, this usually means that the buyer is shouldering the taxes.
5. Who pays for titling and lawyer's fees?
Yup lawyers charge 3% of the purchase price for notarization. Surveys and geodetic engineers charge a fee too when the parcel of land is not yet subdivide. The Register of Deeds charge fees for titling.
Sellers often assume that the buyers will shoulder these while buyers assume that the purchase price is what they will only cash out.
It is always best to ask these questions least you be feeling like you brought a 1000 square meter lot for a measly 150k only to find out that you will be paying taxes for 350k and titling expenses of 50k or worse you brought a property from a person who has zero authority to sell the piece of land.
