Top 10 Deal Breakers in Closing Resale Properties (Philippines)
Top 10 Deal Breakers in Closing Resale Properties (Philippines)
By: Realtor Samuel O. Lao
1. Incomplete or Problematic Property Title
Missing titles, errors in names, annotations of liens, adverse claims, or pending cases can delay or cancel a sale entirely.
2. Unsettled Real Property Taxes (RPT) or Estate Tax
Many resale properties have unpaid real estate taxes or estate taxes (if inherited) that must be cleared before a transfer can proceed.
3. Zonal Value or Capital Gains Tax Disputes
Disagreement on who shoulders the taxes (CGT, DST, VAT if applicable) and inaccurate declared values can be red flags for buyers.
4. Undisclosed Encumbrances or Lis Pendens
Legal claims, mortgages, or pending litigations discovered late in due diligence can lead to cancellations.
5. Disagreement on Payment Terms or Timeline
Sellers wanting full payment upfront vs. buyers requesting staggered payments or bank financing can cause misalignment.
6. Delayed or Incomplete Documentation
Lack of updated tax declarations, IDs, SPA (if represented), or improperly signed contracts may stall closing.
7. Low Appraisal Value for Bank Financing
If the bank values the property lower than the selling price, the buyer must shoulder the difference — a common cause of failed deals.
8. Multiple Owners or Heirs Not in Agreement
When a property has multiple co-owners or heirs, lack of unanimity or updated extrajudicial settlement can be a major barrier.
9. Structural or Property Condition Issues
Hidden defects, informal occupants, boundary disputes, or encroachments may prompt buyers to back out.
10. Lack of Transparency and Trust
Misrepresentation by either party, unclear negotiation terms, or pressure tactics often erode buyer or seller confidence.
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DISCLAIMER: All info is for educational and guidance purposes. Actual situations may vary.
