Buying property in the Philippines involves enough complexity that even experienced buyers make mistakes — and first-time buyers are particularly vulnerable. Most of these mistakes are not the result of bad intentions. They happen because buyers don’t know what they don’t know. Almost every common mistake is preventable with the right information and the right sequence of actions.

The most common financial mistake buyers make is treating the purchase price as their total cost. Closing costs — taxes, government fees, notarial fees, and legal fees — typically add 3 to 8 percent on top of the purchase price. Buyers who haven’t budgeted for this can find themselves short at closing or forced to renegotiate terms at the worst possible moment.

What to do instead: Before you begin searching, establish your true total budget — purchase price plus 5 to 8 percent for closing costs. If financing through a bank, add another 2 to 3 percent for loan-related fees. See our guide on the true cost of buying property for a complete breakdown.

In the excitement of finding a property they love, many buyers skip or rush the due diligence process. This is the most consequential mistake in resale transactions. Title defects, unresolved encumbrances, estate complications, or a seller who doesn’t have proper authority to sell can all invalidate a transaction — or leave the buyer holding a property with legal problems they cannot resolve.

What to do instead: Complete all due diligence before paying anything beyond a refundable reservation fee. Verify the title directly at the Registry of Deeds. Check for encumbrances. Confirm the seller’s authority. Verify RPT and association dues compliance. See our Real Estate Due Diligence Guide for the complete framework.

Many buyers sign reservation agreements, contracts to sell, or deeds of sale without having a lawyer review them first. Contracts in resale transactions are privately drafted and may contain terms that are legally inadequate or unfavorable — around payment disputes, title defects discovered after signing, or early termination scenarios.

What to do instead: Have a licensed lawyer review all contracts before signing. The cost is modest relative to the protection it provides and is not optional for resale transactions. Do not rely on the seller’s lawyer to protect your interests — engage your own.

For pre-selling and RFO transactions, buyers often focus entirely on the project — the unit, the amenities, the location — without researching the developer’s track record on previous projects. Developer delays of one to three years are not uncommon in the Philippines. Some projects have been abandoned entirely. No contract clause fully protects a buyer from a developer who cannot deliver.

What to do instead: Research the developer independently before signing anything. Check completed projects and whether they were delivered on time. Look for buyer feedback on existing developments. Verify that the project has a valid License to Sell (LTS) from the Department of Human Settlements and Urban Development (DHSUD

Capital Gains Tax is technically the seller’s obligation, but many transactions involve negotiation over which party actually shoulders it. Buyers who don’t understand this can be blindsided by an additional significant cost being passed to them at closing. Some sellers present this as standard practice — it is not. It is a negotiable point that must be confirmed in writing.

What to do instead: Before signing any agreement, clarify which party is responsible for CGT. If the buyer is absorbing it, factor this into your total cost from the beginning. Get the arrangement documented in the contract — verbal confirmations are not enforceable.

Capital Gains Tax and Documentary Stamp Tax must both be filed with the BIR within 30 days of the date of the Deed of Sale. Many buyers — and even some sellers — don’t realize the clock starts on the date of the Deed, not on the date payment is received. Missing this deadline triggers surcharges and penalties that increase the total transaction cost.

What to do instead: As soon as the Deed of Sale is signed, begin the BIR filing process. Don’t wait. Work with a broker or lawyer who will manage this timeline actively and ensure both taxes are filed on time.

For resale properties especially, buyers sometimes commit to a purchase without visiting the actual unit. Photos can be misleading — showing the property at its best, with staging and wide-angle lenses that make spaces look larger than they are. Building condition, noise levels, neighborhood character, and practical accessibility can only be assessed in person.

What to do instead: Visit any property you are seriously considering at least twice — at different times of day. For condo units, walk the building: check elevator availability, hallway condition, parking, and lobby upkeep. These details reveal building management quality far better than any sales brochure.

Buyers who start their search without bank pre-qualification often waste time looking at properties they cannot finance — or make offers without certainty that their loan will be approved. Loan approval is not guaranteed. A rejected loan application late in a transaction can leave a buyer unable to complete a purchase they’ve already committed to, with a reservation fee at risk.

What to do instead: Before searching, approach two to three banks and get a pre-qualification assessment. This tells you the loan amount you qualify for and sets your realistic price ceiling. It also signals to sellers and brokers that you are a serious, qualified buyer.