Query: What are the legal considerations for buying property in the Philippines that is still under a mother title and not yet transferred to the seller's name?

Purchasing property in the Philippines requires careful attention to the title and ownership status to ensure legal protection and to avoid potential disputes. One common scenario buyers may encounter is dealing with a property that remains part of a larger parcel and has not been individually titled in the name of the seller.

Verification of Title: It is crucial to verify that the title to the land is legitimate. Buyers should check the “mother title” at the Registry of Deeds to confirm the legal status of the property and the identity of the registered owner. This step is essential to avoid fraud and to ensure that the seller has the legal authority to sell the property.
Subdivision of Property: If the property for sale is part of a larger tract of land under a single title (mother title), it needs to be properly subdivided, and a separate title should be issued for the portion being sold. This process involves a surveyor who will subdivide the land according to the agreed boundaries.
Approval from Relevant Authorities: The subdivision plan must be approved by the relevant local government and the Land Registration Authority (LRA). This approval is crucial for the issuance of a new title under the buyer's name once the purchase is completed.
Dealing with Unregistered Land: If the land is not yet registered under the seller's name, the buyer must undertake additional precautions. It is advised to ensure that the seller completes the registration process before finalizing the sale. Alternatively, the buyer can negotiate to have the sale contingent upon the successful registration of the land to safeguard their investment.
Legal Assistance: Given the complexities of real estate transactions in the Philippines, especially with untransferred titles, it is wise to engage a lawyer who specializes in real estate. The lawyer can help navigate the legal requirements, verify documents, and ensure that the rights of the buyer are fully protected throughout the transaction process.
Payment and Contracts: To protect against potential fraud, it is recommended that any payments made before the completion of the title transfer are held in escrow. Additionally, the contract of sale should clearly state all terms, including the responsibility of the seller to provide a valid, registered title as part of the transaction.
Cost of Title Transfer: Buyers should be aware of the costs associated with transferring the title, including taxes, registration fees, and other legal expenses. These costs can be significant and should be factored into the overall budget for the property purchase.

Conclusion: Buying property in the Philippines where the title has not been transferred to the seller’s name involves significant risk and requires thorough due diligence. Ensuring that all legal steps are followed and seeking professional advice is not just advisable but essential for protecting one's investment. This approach minimizes potential legal issues and helps ensure a smooth and legally compliant property transaction.