One common reason for invalid property sales in the Philippines is when the seller does not have the legal authority to sell. This can happen for several reasons. For example, if the registered owner has died, heirs might try to sell the property without proper estate procedures, causing legal issues later. Also, a representative might use a Special Power of Attorney that is either invalid or expired, making any transactions illegal. Additionally, if one co-owner sells their share without consent from the other co-owners, it can lead to disputes, jeopardizing the sale. Each situation has different legal consequences, but they all mean that transactions with unauthorized sellers can be canceled, putting unsuspecting buyers at risk and potentially leading to expensive legal battles. Therefore, it is crucial to conduct thorough due diligence to ensure all parties involved have the rightful authority to complete the sale.

The first check is to compare the name on the Certified True Copy of the title with the identity documents of the person selling the property. This step is important as it confirms the link between the seller and the property. If the name matches, the seller is confirmed as the registered owner and can confidently proceed with the sale. However, if the names do not match, it raises concerns about the legitimacy of the sale. In such cases, further checks are necessary to ensure all aspects of ownership are thoroughly reviewed, preventing potential legal issues from incorrect ownership claims. This step is crucial for protecting both the buyer and the seller in real estate transactions.

A Special Power of Attorney (SPA) is a legal document authorizing one person — the attorney-in-fact — to act on behalf of the registered owner for specific purposes, including selling property. SPAs are common in Philippine property transactions, particularly when the registered owner is an OFW, is based abroad, or is otherwise unable to sign in person.

When an SPA is presented, verify the following: the SPA must be notarized by a licensed notary public; if signed abroad, it must be authenticated by the Philippine Consulate or apostilled in the country where it was signed; the SPA must specifically authorize the sale of the particular property in question — a general SPA authorizing broad financial decisions may not be sufficient; and the SPA must not have expired. SPAs typically have a validity period. An expired SPA does not confer valid authority, regardless of how it was prepared.

Additionally, confirm that the registered owner named in the SPA is the same person named on the title. A mismatch between these names requires explanation and legal review.

If the registered owner has died, the property becomes part of their estate. No individual heir has the right to sell the property on their own authority — the estate must first be settled, either through extrajudicial settlement (for estates without disputed claims) or through a judicial proceeding. The resulting legal documents from estate settlement must be registered at the Registry of Deeds, and the title must be transferred to the heirs or to the estate administrator before any sale can proceed.

Buyers who purchase from someone claiming to be an heir — without formal estate settlement and title transfer — acquire no legally recognized interest in the property, regardless of what is paid. This scenario is one of the most commonly encountered sources of property fraud in the Philippines. Always verify through the title that the person signing has a registered ownership interest in the property being sold.

If the title shows multiple registered owners, all co-owners must consent to the sale. One co-owner cannot sell their share — or purport to sell the entire property — without the agreement of the other co-owners. The Deed of Sale must be signed by all registered owners, or by their duly authorized representatives under valid SPAs. A sale conducted without the consent of all co-owners is legally defective.

For married sellers, the Family Code requires the consent of both spouses for the sale of conjugal or community property. Even where only one spouse’s name appears on the title, the other spouse’s consent may be required depending on when and how the property was acquired. Verify this with a lawyer for any transaction involving a married seller.