Buying your first home is an exciting milestone, but it comes with challenges—especially when the seller is out of the country. In such cases, buyers often work directly with brokers, raising concerns about authenticity and security. To protect yourself from scams and ensure a smooth transaction, here are key steps to take:
Verify the Title and Seller’s IDs
The most crucial step is confirming the seller’s identity and property ownership. Here’s how to do it:
- Check the Transfer Certificate of Title (TCT): Obtain a copy of the title and request a Certified True Copy from the Registry of Deeds. This ensures that the title is authentic and reflects the seller as the rightful owner.
- Validate IDs: Ask for copies of the seller’s government-issued IDs. Ensure the names on the IDs match the name on the property title.
Ask for an Apostilled Special Power of Attorney (SPA)
Since the seller is overseas, they need to authorize someone to act on their behalf. This is done through a Special Power of Attorney (SPA):
- What is an Apostilled SPA? An apostille is an international certification that authenticates the SPA for use in another country, replacing the need for consular notarization.
- Why it’s important: Without a properly apostilled SPA, any transaction conducted by the authorized person could be invalid. Make sure the SPA specifically grants the authority to sell the property.
- How to verify: Ensure the SPA is signed by the seller, apostilled, and lists the property details accurately.
Arrange a Zoom Meeting with the Seller
To add an extra layer of security, request the broker to facilitate a virtual meeting with the seller.
- Purpose of the meeting: Confirm directly with the seller that they are indeed selling the property and that all the details (price, terms, etc.) match your agreement with the broker.
- What to look for: During the meeting, verify the seller’s identity and ask for clarity on any points that seem unclear. Record the meeting for documentation purposes.
Pay Using a Manager’s Check in the Seller’s Name
When it comes to payments, ensure everything is traceable and secure:
- Why a Manager’s Check? Unlike cash or personal checks, a Manager’s Check is issued by a bank, making it safer and more reliable.
- In the seller’s name: Ensure the check is made out directly to the seller, not the broker or any other third party.
- Seller’s local bank account: If the seller has a Philippine bank account, deposit the check directly to that account for an official record.
If the seller doesn’t have a local bank account, ensure that the seller has indicated in the SPA that the authorized person can receive payment in their behalf.
Conduct Regular Due Diligence
Thoroughly inspect and evaluate the property and transaction process:
- Check for property liens or disputes: Request a tax clearance and check the title for annotations that may indicate pending issues.
- Inspect the property: Ensure it matches what was advertised, both in terms of location and condition.
Secure a Deed of Absolute Sale
Once all the conditions are met and payment is ready:
- Ensure the Deed of Absolute Sale (DOAS) is signed by the seller (or their authorized representative) and notarized.
- Double-check that all details, including the property’s technical description, buyer’s name, and payment terms, are accurate.
Transfer of Ownership
After the sale, complete the transfer process:
- Pay taxes: Settle the Capital Gains Tax and Documentary Stamp Tax.
- Title transfer: Submit the necessary documents to the Registry of Deeds to transfer the title to your name.
- Tax Declaration update: Update the Tax Declaration under your name at the local assessor’s office.
Additional Tips for a Smooth Transaction
- Request written agreements: Document all agreements, including who’s paying the broker’s commission, Capital Gains Tax and any additional terms.
- Be cautious with red flags: If anything seems off, such as the broker pushing for unverified payments, reconsider the transaction.
Buying a home with an overseas seller involves unique challenges, but with careful planning, due diligence, and the right professional help, you can safeguard your investment. Always prioritize transparency and documentation to make your first home-buying experience a success.
U-Property PH 
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