When Buying A House : Ten Points To Remember

Due diligence in a very simple manner of speaking, would mean, common sense. But when buying A house, one should be very careful in making a decision, and a person must consult experts and those who are knowledgeable what a perfect house really is. Here are some tips:

1. Right Price. Before one goes any further, it is important to know if the offering price is within your budget. If it is, then you have what you can call as bargaining power. Thus, when you haggle or negotiate for a lower price, and you are given the price you want, then at least you would have the satisfaction of having the advantage at the very start of the process.

2. Right Location. More or less, the first question asked is the price when offered a house in a desired location. Usually the offer is general in nature and the details are not yet given. The moment one is attracted with the reasonableness of the price, the next consideration is the right location. Logically, location should mean proximity to the workplace, hospital, school, supermarket, mall, gasoline station, mini grocery, pet shop, clinic, bank, police station, barangay hall, means of transportation, along a major road network, etcetera. But specifically, the house should be in a peaceful, quiet, progressive and prestine community. Close to nature or greener pastures. By the way, it should be flood-free and not within or near an earthquake fault, or any potential environmental disaster such as sink hole, landslide, flash flood, active volcano, or man made risks such as industrial pollution, irresponsible mining, poor planning and corruption.

3. Right House. Do not buy a house which you will later on regret owning. Do not be pressured into buying a house to keep up with the Joneses. Your house must suit your requirements or needs. Check on the materials and paints used, the roof and ceiling, termite and rodent infestation, water source and system, electrical system and connection, firewall and fire escape system, telephone lines, drainage system,

4. Clean Title. Every title over the property has a history. A clean title means that there is no lien or encumbrance, and does not have the markings of any potential litigation. While a buyer in good faith can only rely on what is seen on the face of the title, still it would be prudent to check on the records found at the Register of Deeds, Assessor's Office and the Treasurer's Office. Make sure that ownership over the property can actually be transferred from the old owner to the new one, without any problem.

5. Homeowners or Neighborhood. You would want to live in a friendly neighborhood and not in a community that you will later find yourself complaining in the barangay or entangled in a litigation. Check on the history of a neighborhood. You can inquire with the barangay or from people you know and familiar with the place. By looking at the surroundings, you will initially have an impression of what you are going into. Do not forget the amount of homeowners dues, fees, rates and other charges, monthly and annual. You should also look into the status of the homeowners association, open spaces, potential litigation, and village politics.

6. Site Integrity. It is important that the land over which the house has been built or shall be constructed must not have been consecrated for use as a cemetery or was formerly one before, or it must be free from any dark or grim past. Superstition is not the issue here but respect for what it is intended for, such as a hallowed ground. On another point, it is more peaceful to live in a land which is not haunted by its past such as when it became a dumping site for salvage victims or fetuses extracted as a result of abortions. However, if one is not particular about these things, then go ahead and be a courageous homeowner.

7. Expansion Plans and Restrictions. The adrenalin rush into buying a house has the danger of disabling a person in making an informed decision. Among the points often taken for granted are those pertaining to legal documents and documentation. The fine and unwritten lines are not looked into seriously. There may be restrictions imposed in building improvements on the house such as another floor or extending a garage. One may not dispose of the property for a certain number of years or it can only be sold to a specific person or entity. In other words, if you have plans of doing some kind of alterations, improvements or changes on the property, you have to ensure that they will be allowed.

8. Contingency and Buffer Funds. Buying a house is like buying your own apparel or personal belongings. You would normally have a personal attachment to your clothes, shoes, among others. You need cash to keep them clean, and useable. They need to be laundered, shined, and stored properly against pests. The same is true with houses. You will need cash for minor repairs and maintenance from time to time, and for pest control particularly against rodents and termites. Without any reserved funds for these and other contingencies is certainly a concern. You just do not know what may happen later on.

9. Legal Documentation. The representative of a vendor may not be appropriately equipped with the corresponding authorization. The property may be part of the estate of a deceased person and there may be a need for an extrajudicial settlement signed by all the heirs. Make sure that representatives have their special power of attorney. Find out if there are no lis pendens or other restrictions, liens or encumbrances annotated on the title. If there is any and for one reason or the other, such lien or encumbrance is no longer existing, have it cancelled and removed. It is important that all legal documents will eventually be in your possession and each must have been checked and validated.

10. Overall Property Potential. Overlooked by most homeowners is the need to regularly assess the potential of the property in terms of its current market value and future uses, from residential to commercial or to an upscale residential area. If you are in a subdivision, be particular with the protection or uses given to open spaces against encroachment or idleness, existence and maintenance of clubhouse, sports court, playgrounds and other facilities. All these amenities will contribute to the value of the house and lot.

Shelter : A Basic Need. An Inherent Right.

As argued, no man can be a squatter in his own land. This is absolutely a valid argument, but it's not happening as a fact. The truth remains that many families are languishing in substandard or impoverished conditions, do not enjoy the security of having their own houses, being driven away from the property where their elders have settled which only time can remember, or whose lands have been grabbed from them.

It is not even surprising to know that those who have work or small businesses are also dreaming of owning houses or at the least, dwelling units, which could be an apartment, a townhouse or a condominium.

The spaces have become scarce in the metropolis, or if there be any, they are not affordable. Further, even if there be any and which are affordable, there are nonetheless not enough for all. Development cannot just be pursued indiscriminately without taking into account the need to preserve areas for agricultural spaces for crops and livestocks. The highlands have already been denuded and abused, and the adverse effects created havoc to wide areas. The destruction caused in areas like Infanta and Real, Ormoc, Cagayan de Oro, and New Bataan, among others, will never be forgotten.

The result - more housing backlog. This is a serious concern because the country is confronted with an increasing demand for shelter and not having enough would mean a homeless segment of the society will also increase. Social problems will naturally increase and that would require an increase in government spending for these concerns.

What must be done?

In the beginning, man was given dominion over the earth, it was inherent therefore that as a human being, he has the right to live. Such right is to be respected and supported by each other. No man is an island. Each one has a moral obligation to care for others. This could be done by paying taxes so that government will have more to spend for infrastructures and shelters, join and actively participate in projects pursued by Gawad Kalinga or Habitat for Humanity, among others, lobby for more housing projects, help in the eradication of corruption, and support such other programs that would alleviate the conditions of others particularly the homeless.

On the part of property owners and developers, while this country may be a free economy thriving in a free enterprise where every person has the right to be successful and get rich, it does not give anyone the license to be greedy. It is important to be mindful and be immersed in carrying out one's social responsibility. The bottomline is that it's definitely acceptable for the price to be right but it must also be reasonable and not restrictive.

And of course, on the part of the government, policies and rules must further be eased up, equalized and rationalized. The immediate creation of a primary-line agency such as a Department of Housing should be supported. Realistic and responsive programs must be initiated and implemented.

Zero-corruption and Zero-backlog should be an individual advocacy and a collective commitment.

Three years ago, it has been said that the country has 1.7 million housing backlog. Now it's 3 million.

Do not blame the government. It is presumed to be doing it's job. The constant and uncontrollable exodus of people to the metropolis in search for greener pastures, and an ever increasing population as a result of the increasing number of families have largely distributed to this backlog.

It is time then to really and genuinely move and act. Write letters to your political leaders, initiate movements and projects, effect change in our society but let that change begin in you, in each one of us. Be fair, be honest and do not succumb to corruption.

So be it.

OUR MISSION

Real property ownership is admittedly the most sought goal in the hierarchy of human needs. Neither can it be eaten nor cover your body. But it can provide your food to fill your stomach and your clothes to keep you warm. A source of income that can buy what you need. It can serve as your life's material security and stability over which you build your home, or by which you can obtain the needed business capital by mortgaging or selling it. Or perhaps it can be something of sentimental value or part of a family heritage where money is not a consideration.

Simply put, viewed from a practical perspective, real property is synonymous to this "material world". It is essentially, wealth. People work and even die for it. Wars have been won or lost due to claims over territory. Relationships are built or destroyed because of land disputes or settlement.

Government has several departments focused on protecting and preserving its patrimony or natural resources, and the country's territory; registering it for private ownership by corporations and individuals; distributing it as part of agrarian reform; financing and utilizing it for housing, agricultural and industrial uses; or revenue generation, among others.

Real property is measured by metes and bounds. The boundaries are important in ownership. They must basically be precise and identifiable. They should not encroach on each other lest there be a dispute or controversy.

Ownership must be clearly established with due consideration to legal titles and rights. Tax and contractual obligations must be updated or settled. For it to have further value, it must be clean. This means it can freely disposed of free from any lien or encumbrance.

Transactions dealing with realty are actually complex and completed. Even realty practitioners would have different and sometimes irreconcilable views or approaches to the same problem or situation.

Thus, laws have been passed, rules were formulated, decisions handed down, realty organizations are gearing toward integration, realty practice are being professionalized and regulated, and government agencies concerned are placed under an umbrella institution.

It is the intention of Metes & Bounds to provide a "one-click & one-site" online reference to realty matters as a public service. The end in view is to create an awareness among realty stakeholders and simplify the otherwise complicated terms about then and recent practices.