The check comes before the money, or it is not a check
Philippine law is strict with foreign buyers, and the courts do not unwind a bad purchase gently: the folk workarounds fail, and money paid into a void structure is usually gone. Due diligence is the work of proving that the property exists, belongs to the person selling it, is free of claims, and can lawfully be transferred to you in the form proposed. We run it the same way for a Shanghai family reserving a Taguig unit and for a Binondo businessman buying from a neighbour, and the deliverable is always the same: a written report with findings and a recommendation, delivered before any money is released.
The five workstreams
Every engagement mirrors the firm's foreign-buyer due diligence practice, angled to the questions a Chinese buyer actually faces:
- The title and its chain. A certified true copy pulled fresh from the Registry of Deeds — never the seller's photocopy — and the transfers behind it, read for gaps, reconstituted titles and any link that once passed through a buyer who could not lawfully own. A chain that once ran through a Chinese-citizen grandfather is not automatically fatal: the Supreme Court held in Borromeo v. Descallar (G.R. No. 159310, February 24, 2009) that the flaw in such a transfer is considered cured once the land comes to rest in qualified Filipino hands. Whether that describes your seller's chain is a matter of reading it, link by link — the fact patterns are on our old family titles page.
- The annotations. Mortgages, liens, adverse claims, lis pendens, notices of levy, rights of way and estate restrictions live on the back of the title. They are usually written down; someone has to read them.
- Seller identity, civil status and authority. Who actually owns it, whether a spouse must consent, whether heirs were left out of an earlier settlement, and whether the person signing holds a valid, current special power of attorney. This is also where fake sellers and double sales surface — the same unit or lot sold to two buyers, with the loss landing on whoever verified less.
- Taxes and clearances. Real property tax arrears, the tax declaration checked against the title, and the transfer taxes the purchase will trigger, including who customarily bears each one.
- The structure. Whether what you are being offered — a condominium unit, a lease, a purchase through someone else's name — is lawful for a buyer of your citizenship, and how it should be documented so it stays lawful.
The checks Chinese buyers specifically need
Two items come up in almost every engagement from China. First, the condominium foreign quota: the ceiling on alien interest is measured project by project, so we confirm the current figure with the condominium corporation itself, close to signing, rather than accepting the sales office's answer. Second, pre-selling checks: for a unit that exists only on paper, we verify the developer's project registration and licence to sell, what the reservation agreement does to your money if the quota or the project fails, and whether the developer can actually convey what it is marketing. Fake titles are the third, blunter risk — which is why every document is verified against registry originals, never against the copies in the sales kit.
A written report before money moves
The deliverable is a written report: findings, what can be cured, what cannot, and our recommendation — buy, renegotiate, or walk away. It reaches you before you pay, while you still have the leverage to do any of the three. Our standing advice is blunt: do not release money — not the “refundable” reservation fee, not the deposit — before the report is in your hands.
Fees, and working with us from China
Due diligence is a fixed-fee package, typically from ₱100,000, scaled to the number of titles, the registry involved and how far the deal has already gone. The scope and the fee are agreed in writing before we start, so the cost is known while you are still deciding. Consultations are paid at ₱3,500. The engagement runs fully remotely: instructions and documents by email, the registry, assessor and site work done by our people here, signatures covered by an apostilled special power of attorney — the same pattern we use for clients overseas. If you are weighing a purchase now, book a consultation and bring whatever the seller has sent you.
Frequently asked questions
What does your due diligence report cover?
The certified true copy of the title and the chain of transfers behind it, every annotation, the tax declaration and real property tax status, the identity, civil status and authority of whoever signs for the seller, and whether the structure offered is lawful for a buyer of your citizenship. You receive a written report with findings and a recommendation before you release money.
Can you verify whether a condominium project still has foreign quota?
Yes. The foreign-interest ceiling under the Condominium Act is measured per project, so we confirm the current alien interest with the condominium corporation itself, close to signing, rather than relying on the agent's assurance. For a pre-selling unit we also check the developer's registration and licence to sell.
The title once passed through a Chinese citizen. Is the property unbuyable?
Not automatically. The Supreme Court has held that where land invalidly transferred to an alien later comes to rest in the hands of a qualified Filipino, the defect in the earlier transfer is considered cured. Whether that describes your seller's chain is exactly what the title examination establishes, link by link.
How much does due diligence cost?
Our packages are fixed-fee and typically start at ₱100,000, scaled to the number of titles, the registry involved and how far the deal has gone. The scope and the fee are agreed in writing before we begin. Consultations are paid at ₱3,500.
Can everything be done while I am in China?
Yes. Instructions and documents move by email, the registry, assessor and site work is done by our people in the Philippines, and the report reaches you wherever you are. Anything that must be signed here is covered by a special power of attorney, apostilled where you live.