Before Buying Real Estate Properties: Guidelines in Conducting Proper Due Diligence

In the case of Domingo Realty, Inc. and Ayala Manufacturing Co., Inc. vs. Court of Appeals and Antonio M. Acero, the Supreme Court laid down some guideline in conducting proper due diligence, what needs to be done before buying real properties. It is advisable that such parties:

(1) Verify the origin, history, authenticity, and validity of the title with the Office of the Register of Deeds and the Land Registration Authority;

(2) Engage the services of a competent and reliable geodetic engineer to verify the boundary, metes, and bounds of the lot subject of said title based on the technical description in the said title and the approved survey plan in the Land Management Bureau;

(3) Conduct an actual ocular inspection of the lot;

(4) Should inquire from the owners and possessors of adjoining lots with respect to the true and legal ownership of the lot in question;

(5) Put up signs that said lot is being purchased, leased, or encumbered; and

(6) Undertake such other measures to make the general public aware that said lot will be subject to alienation, lease, or encumbrance by the parties.