Understanding Property Titles

1. What Is a Property Title?

A property title is the legal document that proves ownership of land or real estate.

In the Philippines, it’s issued and registered under the Land Registration Authority (LRA).

💡 If your name is on the title—you are the legal owner.

2. Types of Property Titles in the Philippines

🟢 Original Certificate of Title (OCT)

• First title issued for a land

• Usually from government distribution or first registration

🔵 Transfer Certificate of Title (TCT)

• Issued when land is sold or transferred

• Most common type in transactions

🟣 Condominium Certificate of Title (CCT)

• For condo units

• Covers ownership of a unit + shared areas

⚠️ Tax Declaration (NOT a title)

• Proof of tax payment only

• Does NOT prove ownership

3. Key Parts of a Title You Must Check

When reviewing a title, focus on:

• Owner’s Name – Must match the seller

• Title Number – Unique ID of the property

• Technical Description – Size, boundaries, location

• Annotations (Encumbrances) – Loans, liens, or legal issues

🚨 Red flag: If there are annotations like mortgages or disputes

4. Clean Title vs. Encumbered Title

✅ Clean Title

• No debts, no legal issues

• Ready for transfer

⚠️ Encumbered Title

• Has loans, liens, or claims

• Needs to be cleared before transfer

💡 Always ask: “Is the title clean?”

5. How to Verify a Property Title

To avoid scams:

1. Go to the Registry of Deeds

2. Request a Certified True Copy (CTC)

3. Compare with the seller’s title

4. Verify with the LRA if needed

💡 Never rely on photocopies alone

6. Common Mistakes Buyers Make

• Buying based on tax declaration only

• Not checking annotations

• Skipping title verification

• Trusting verbal agreements

🚨 These mistakes can lead to ownership disputes

🔥 Pro Tip

Always verify before you pay—even a reservation fee.

👉 A legit property will always have a verifiable title