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Buying Property in the Philippines
Philippine Real Estate Definition of Terms
The Torrens System of Real Estate Ownership
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An adapted form of the "Torrens" system of land registration is used in the
Philippines. This system was adapted to assure a buyer that if he buys a land covered by an Original Certificate of Title (OCT) or the more familiar Transfer Certificate of Title (TCT) issued by the Registry of Deeds, the same will be absolute, indefeasible and imprescriptible. The registered owner will never lose his ownership to squatters no matter how long such land was illegally occupied.
Taking Title to Philippine Real Estate
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Owners must be active in enforcing their property rights. Possession is 90% ownership. If the property owner can only show a Tax Declaration as an evidence of ownership, that means the land is untitled and not registered under the Torrens system. As such, the buyer will not get as much protection, as his title will not be absolute and can yield to one who has a better right, like the person actually possessing and occupying or tilling the land, and who subsequently applies for the titling of the land in his name.
Typical Transaction Costs - Purchases from Individuals
Typical Transaction Costs - Purchases from Developers
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