Tips Before Buying a House (FSBO)

Tips Before Buying a House (FSBO) 

Transfer Cerficate of Title

FSBO is an acronym meaning "For Sale By Owner". You do not need an agent actually to buy a house. Statistics says that 20% of home purchases are done without an agent involved. Yes you can but if you decide, you should be ready to deal with the inconveniences of buying without an agent. Here are some tips you must know before buying a property.

1. AUTHENTIC TRANSFER CERTIFICATE OF TITLE.  You can verify the veracity of documents from the office of Register of Deeds. This office is usually located at the city or municipal hall where the property is located. Request a photocopy of certificate of title of the said property. Get the title number, the name of the owner to be able to process the request.

TCT with Encumbrances

2. CLEAN TITLE. Clarify if the property is not mortgaged (no liens & encumbrances on the property). You can see that at the back of the title with the heading "Encumbrances". This page must be empty if you are told that the title is "clean". But sometimes the space for the technical description of the property on the front page of the title is not enough and the description of the property is continued on the "Encumbrances" page, this is of course all right.

3. VERIFY  THE PROPERTY'S DESCRIPTION IN THE TITLE TO THE ACTUAL SITE LOCATION. You can validate this at the Register of Deeds or by hiring a private land surveyor or a geodetic engineer. Land titles don't have any street name and number to pin point a property, it is a must to confirm that the actual property you are buying matches the technical description on the Transfer Certificate of Title.

4. REAL OWNER.  If you are buying from an individual property owner, ask for proof of identity, identification cards like passport or driver's license. You should also check the person’s identity through the seller’s neighbors or the Barangay Captain from which the seller reside just to confirm the identity of the seller/s. You can also trace the history of the property from the Register of Deeds.

5. UPDATED REAL ESTATE TAX PAYMENTS. Ask for certified true copies of the Tax Declaration and original Tax Receipts to confirm that real estate tax payments are up to date.

These are some of the more important things to know about buying a property. Please be advised that the amount involved is huge. In the end, it is safer to hire the services of a knowledgeable real estate broker/agent

If the tips above is observed, it is generally safe to proceed with the purchase of property.