Due Diligence Checklist: Protecting Your Siargao Property Investment

Proper due diligence is essential when purchasing property in Siargao. This comprehensive checklist helps ensure you're making a sound investment and avoiding common pitfalls.

Title Verification

Registry of Deeds Check

• Verify title authenticity at the Registry of Deeds
• Confirm seller is the registered owner
• Check for any annotations, liens, or encumbrances
• Verify tax declaration matches the title
• Confirm property boundaries and area

Title History

• Review chain of ownership back to OCT
• Check for any gaps or irregularities
• Verify all previous transfers were properly executed
• Confirm no pending legal cases affecting the property

Physical Inspection

Property Boundaries

• Conduct actual survey of property
• Verify boundaries match title description
• Check for encroachments or boundary disputes
• Identify all access points
• Confirm right-of-way if applicable

Physical Condition

• Inspect existing structures
• Check for flood or erosion damage
• Assess soil quality and stability
• Evaluate topography and drainage
• Document current condition with photos

Legal Compliance

Zoning and Land Use

• Verify current zoning classification
• Confirm intended use is permitted
• Check for any land use restrictions
• Review comprehensive land use plan
• Confirm compliance with coastal setback rules

Environmental Compliance

• Check if property is in protected area
• Verify environmental clearance requirements
• Assess flood zone designation
• Review any environmental restrictions
• Confirm compliance with environmental laws

Financial Verification

Tax Compliance

• Verify real property tax payments are current
• Check for any tax delinquencies
• Confirm capital gains tax paid on previous sale
• Review tax declaration accuracy
• Calculate transfer taxes and fees

Valuation

• Obtain independent property appraisal
• Compare with recent comparable sales
• Assess fair market value
• Evaluate investment potential
• Calculate total acquisition costs

Seller Verification

Identity and Authority

• Verify seller's identity with valid ID
• Confirm authority to sell (if corporation or estate)
• Check marital status and spouse consent
• Verify power of attorney if applicable
• Confirm no legal impediments to selling

Seller's Obligations

• Ensure all property taxes paid
• Confirm no outstanding utility bills
• Verify homeowners association dues current
• Check for any pending obligations
• Obtain clearances from relevant authorities

Infrastructure and Utilities

Access and Roads

• Verify legal access to property
• Check road condition and maintenance
• Confirm right-of-way documentation
• Assess accessibility during rainy season
• Evaluate distance to main roads

Utilities Availability

• Check electricity connection availability
• Verify water source and quality
• Assess internet connectivity options
• Confirm sewage/septic requirements
• Evaluate mobile phone coverage

Neighborhood Assessment

Location Factors

• Research neighborhood development plans
• Check proximity to amenities
• Assess noise and traffic levels
• Evaluate security and safety
• Review future development projects

Community

• Meet with neighbors if possible
• Check homeowners association rules
• Assess community atmosphere
• Verify any community restrictions
• Understand local customs and practices

Documentation Review

Required Documents

• Original Certificate of Title or TCT
• Tax Declaration
• Real Property Tax Receipts (last 5 years)
• Deed of Absolute Sale (if previous transfer)
• Survey Plan and Technical Description
• Barangay Clearance
• Certificate of No Improvement (if applicable)

Contract Review

• Have lawyer review purchase agreement
• Verify all terms and conditions
• Confirm payment schedule
• Check for hidden clauses
• Ensure proper contingencies included

Professional Assistance

Engage Qualified Professionals

• Hire licensed real estate broker
• Engage property lawyer for title search
• Obtain independent surveyor
• Consult tax advisor
• Consider property inspector

Professional Verification

• Verify professional licenses
• Check references and track record
• Confirm insurance coverage
• Review engagement terms
• Establish clear communication channels

Risk Assessment

Identify Potential Issues

• Assess natural disaster risks
• Evaluate market volatility
• Consider political/regulatory changes
• Review insurance requirements
• Plan for contingencies

Exit Strategy

• Consider resale potential
• Evaluate rental market
• Assess liquidity
• Plan for property management
• Consider long-term holding costs

Final Steps Before Closing

Pre-Closing Verification

• Final title search (within 7 days of closing)
• Confirm no new liens or encumbrances
• Verify all conditions met
• Prepare closing documents
• Arrange payment and transfer

Closing Day

• Review all documents carefully
• Verify payment calculations
• Ensure proper execution of documents
• Obtain all original documents
• Register transfer immediately

Post-Purchase Actions

Immediate Steps

• Register title transfer at Registry of Deeds
• Update tax declaration
• Secure property insurance
• Change utility accounts
• Install security measures

Ongoing Maintenance

• Pay property taxes annually
• Maintain property insurance
• Keep all documents secure
• Monitor property condition
• Stay informed of local developments

Red Flags to Watch For

Be cautious if you encounter:

• Seller reluctant to provide documents
• Significant discrepancies in property details
• Unusually low prices without explanation
• Pressure to close quickly
• Incomplete or suspicious documentation
• Multiple owners or unclear ownership
• Pending legal cases
• Environmental violations
• Unpaid taxes or liens

Professional Support

Never skip professional assistance:

• Lawyer: Essential for title search and contract review
• Surveyor: Confirms boundaries and measurements
• Broker: Facilitates transaction and local knowledge
• Accountant: Tax planning and compliance
• Inspector: Property condition assessment

Investment Protection

Insurance Coverage

• Property insurance against natural disasters
• Title insurance if available
• Liability insurance for rental properties
• Builder's risk insurance during construction

Legal Protection

• Properly executed contracts
• Clear title documentation
• Compliance with all regulations
• Regular legal reviews

Thorough due diligence may seem time-consuming and expensive, but it's a small investment compared to the cost of discovering problems after purchase. Take your time, engage qualified professionals, and don't let excitement override careful analysis. A well-researched property purchase in Siargao can provide years of enjoyment and solid investment returns.