Tips When Buying A House

So finally you made a decision to buy a house, probably for the first time, or maybe a second one. Whether it is your first or second, or even more than that, the same principle applies when buying a house. Make sure what you are getting is clean and will not get you into any trouble.

So let us check on the brass tacks.

1) To prevent compulsive decisions, list down what you need : (a) its location (b) brand new or otherwise (c) minimum lot area (d) minimum floor area (e) number of rooms and toilets/baths (f) capacity of garage (g) preference for lawn or garden (h) model and style (i) concrete or steel fences (j) gated and guarded area or open location (k) required facilities and amenities in the area (l) future plans for the property (m) access to major roads and public transport system and (n) price range of the property.   

2) Make sure you have the following basic information : (a) location of sewerage tank (b) condition of electrical, water and drainage systems (c) supply of potable water (d) availability of electrical and telephone connections (e) barangay or city/municipal ordinance governing home ownership (f) condition of any creek making sure it's not silted or clogged (g) fire escape system (g) house plan as approved by the LGU engineering department (h) existence of termites and other pests, and means adopted to control them (i) flood alerts (j) soil or land upon which the house was built, to watch out for possible sink holes (k) earthquake fault (l) crime rate in the area (m) background check on your future neighbors (n) if it be in a subdivision or condominium unit, the status of the homeowners association, its financial statement, political and administrative history, and its officers and members as well as rate of monthly dues and contributions, and (o) barangay hall, officials including location of hospital, police station, fire station and gas (p) health status in the are like being prone to dengue, measles, rabies, and other contagious diseases (q) zoning information, current and future (r) taxes due and (s) cost or expenses for minor adjustments or repairs, if any.

3) Engage the services of a licensed broker as he or she may have the information you need or your desired property for sale in his or her listings. It is best to seek professional help since you are about to release your hard-earned money to buy your dream house. 

4) Check on the legal documents : (a) original or transfer certificate of title, with certified copy thereof (b) co-owner's duplicate of the title, if any  (c) tax declaration, with certified copy thereof (d) realty tax receipts (e) location / survey map showing lot description (f) LGU treasurer's clearance, to insure realty taxes are updated and property is not included in the public auction list (g) barangay clearance that the property is not involved in any dispute (h) court clearance (i) summary of property history and information checked with RD records (j)  special power of attorney as certified by the notarial section of the court in the area (k) deed of extrajudicial settlement, if any (l) if inherited, ask for a family tree outline showing all the heirs and that appropriate authorization have been obtained and (m) the TIN, cedula and 2 government issued IDs of the sellers 

5) Review the annotations inscripted on the certificate of title. Make sure that there are no unreasonable restrictions and conditions, existing loan or mortgage and encumbrances. Should there be any such encumbrance, it has to be clarified on how and when it will be removed and by whom.   

6) Get a warranty and representation from the sellers that the property has not been sold to any other person and which may not have been registered.

7) Be assured by the seller and any person claiming any right, that the property will be vacated at a certain date or prior to the closing of the sale, and peaceful and absolute possession thereof will be given and transferred at such agreed date and time. You may require that payment shall be made only upon such transfer of possession.

8) When signing any deed of absolute sale or any document pertaining to the sale, require that all parties must be present before a notary public to acknowledge the act personally. Verify the authority or the commission of the Notary Public which must be within the jurisdiction of the place where the document is being signed, and which must be valid at the time of notarization. 

  

9) Before letting go of your money, be sure you have seen the property, you are in possession of the property and you have all the documents with you and that they are all in order. Have the sale registered immediately. Get a new title, a new tax declaration, register with the barangay as a new resident, register with the homeowners association as a member, and physically secure your new house. 

10) Give a prayer of thanks at every stage of the transaction and always for as along as you live.