The Buying Process Step by Step

Before making an offer, conduct thorough due diligence on the property. This begins with verifying the land title at the Registry of Deeds in Tagbilaran City. Obtain a Certified True Copy and check for liens, encumbrances, or adverse claims. Verify that the seller is the actual registered owner — request valid government-issued ID and compare the name on the title.

Hire a licensed geodetic engineer to survey the property and confirm that the boundaries match the title's technical description. In Bohol, boundary disputes are not uncommon, especially for larger rural lots. The survey cost typically ranges from PHP 10,000 to PHP 50,000 depending on the lot size and terrain.

Check with the municipal or city assessor's office that property taxes are current. Delinquent taxes can become liens that transfer to the new owner. Also verify the land's zoning classification with the municipal planning office to ensure your intended use (residential, commercial, resort) is permitted.

Once due diligence is satisfactory, the buyer and seller negotiate the price and terms. In the Philippines, this is typically documented in a Contract to Sell (CTS) — a preliminary agreement that outlines the purchase price, payment terms, conditions precedent (such as title verification and tax clearance), and the timeline for completing the sale.

A reservation fee or earnest money is usually paid at this stage, typically 5% to 10% of the purchase price. This amount is applied to the purchase price at closing. The Contract to Sell should specify what happens if either party fails to fulfil their obligations — typically, the buyer forfeits the earnest money, or the seller returns it plus a penalty.

It is essential that the Contract to Sell is prepared or reviewed by your lawyer. Do not sign any document — even a handwritten agreement — without legal counsel. Verbal agreements are common in Philippine property transactions but are extremely difficult to enforce.

The Deed of Absolute Sale (DOAS) is the main legal document that transfers ownership from the seller to the buyer. It is executed when all conditions in the Contract to Sell have been met and the full purchase price has been paid. The DOAS must be notarised by a Philippine notary public to be legally valid.

The DOAS contains the identities of both parties, the property's technical description, the purchase price, and a declaration that the sale is absolute and irrevocable. Both buyer and seller must sign in the presence of the notary, along with two witnesses. If the seller is married, the spouse must also sign to indicate consent.

After notarisation, the DOAS is submitted to the Bureau of Internal Revenue (BIR) for tax computation and payment, then to the Registry of Deeds for the issuance of a new title in the buyer's name. Keep multiple certified copies of the notarised DOAS — you will need them for various government submissions.

Philippine property transactions involve several taxes and fees that are typically shared between buyer and seller, though the allocation is negotiable. The Capital Gains Tax (CGT), equal to 6% of the selling price or the zonal value (whichever is higher), is legally the seller's responsibility but is sometimes negotiated to be shared or borne by the buyer.

The Documentary Stamp Tax (DST) is 1.5% of the selling price or zonal value (whichever is higher) and is typically paid by the buyer. Transfer Tax is approximately 0.5% to 0.75% of the selling price, paid to the local government unit. Registration fees at the Registry of Deeds are based on a sliding scale relative to the property value.

In total, expect transaction costs of approximately 8% to 10% of the purchase price. These taxes must be paid before the title can be transferred. The BIR will issue a Certificate Authorising Registration (CAR) once taxes are settled, and this CAR is required by the Registry of Deeds to issue the new title.

With the CAR from the BIR, the notarised DOAS, and proof of tax payments in hand, you can proceed to the Registry of Deeds in Tagbilaran City to register the transfer and obtain a new Transfer Certificate of Title (TCT) in the buyer's name (or the corporation's name, for foreign buyers using the 60/40 structure).

The Registry of Deeds will cancel the seller's old title and issue a new TCT. This process typically takes two to four weeks, though delays can occur. Once the new TCT is issued, you should also update the tax declaration at the municipal assessor's office to reflect the new owner — this ensures property tax bills are sent to the correct party.

Finally, if the property has existing improvements (buildings, fences, wells), ensure these are also declared and assessed. Keep all original documents — the TCT, DOAS, CAR, tax receipts, and survey plans — in a secure location. Consider having your lawyer retain certified copies as a backup. Congratulations: you are now a property owner in Bohol.