Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
The Philippines real estate market attracts thousands of foreign buyers every year, but many of them end up making costly mistakes that could have been avoided.
Property scams in the Philippines remain a significant risk in 2026, and foreigners are often the primary targets because they are unfamiliar with local verification processes.
We constantly update this blog post to give you the most current information on risks, scams, and insider knowledge that can protect your investment.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the Philippines.
How risky is buying property in the Philippines as a foreigner in 2026?
Can foreigners legally own properties in the Philippines in 2026?
As of early 2026, foreigners cannot directly own land in the Philippines under the 1987 Philippine Constitution, but they can legally own condominium units and buildings.
The main restriction is the 40% foreign ownership cap in any condominium project, which means that at least 60% of all units in a building must be owned by Filipino citizens or Filipino-controlled corporations.
To work around the land ownership restriction, foreigners in the Philippines commonly use long-term land leases of up to 99 years (following the new Republic Act 12252 signed in September 2025), or they purchase condominiums where ownership is limited to the unit itself rather than the underlying land.
If you want a house-and-lot lifestyle, you can also own the building while leasing the land it sits on, or have a Filipino spouse hold the land title, though this last option carries relationship risks that you should discuss with a lawyer before proceeding.
What buyer rights do foreigners actually have in the Philippines in 2026?
As of early 2026, foreigners who buy property through legal channels in the Philippines have the same contractual rights as Filipino buyers, meaning they can sue for breach of contract, demand specific performance, and seek damages in Philippine courts.
If a seller in the Philippines breaches a contract, you can file a civil case for damages or specific performance, but you should know that Philippine courts are slow and a typical property dispute can take three to seven years to resolve, which is why prevention through proper due diligence matters more than relying on legal remedies.
The most common mistake foreigners make is assuming they have strong recourse through "side agreements" or informal arrangements, when in reality, if your ownership structure or payment arrangement is not properly documented and registered, Philippine courts may not enforce it at all.
How strong is contract enforcement in the Philippines right now?
Contract enforcement in the Philippines is functional but slow compared to countries like Singapore, Australia, or the United States, where property disputes typically resolve within one to two years rather than the three to seven years common in the Philippines.
The main weakness foreigners should understand is that scammers in the Philippines specifically exploit this delay, knowing that even if you have a valid claim, the time and cost of pursuing it through Philippine courts often exceeds what you lost, which is why many victims simply give up.
By the way, we detail all the documents you need and what they mean in our property pack covering the Philippines.
Buying real estate in the Philippines can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in the Philippines right now?
Are scams against foreigners common in the Philippines right now?
Real estate scams targeting foreigners in the Philippines are common enough that if you browse online listings and respond to social media ads, you should expect to encounter at least one suspicious offer within your first week of searching.
The transaction type most frequently targeted by scammers in the Philippines is pre-selling of condominium and subdivision units, because buyers pay money for something that does not yet exist, making verification harder and giving scammers time to disappear before the fraud is discovered.
The profile of foreign buyer most commonly targeted is someone who is purchasing remotely from overseas, does not speak Filipino, is under time pressure to close a deal, and is unfamiliar with Philippine government verification systems like the Registry of Deeds or the Professional Regulation Commission.
The single biggest warning sign that a deal may be a scam in the Philippines is pressure to pay a "reservation fee" or deposit before you have independently verified the agent's license, the seller's ownership, and (for pre-selling) the project's License to Sell from DHSUD.
What are the top three scams foreigners face in the Philippines right now?
The top three scams foreigners most commonly face when buying property in the Philippines are fake title fraud (where forged documents make it appear someone owns a property they do not), double-selling (where the same property is sold to multiple buyers), and unlicensed pre-selling projects (where developers collect payments for projects without proper DHSUD authorization).
The most common scam, fake title fraud, typically unfolds when a scammer shows you convincing documents and official-looking IDs, creates urgency by claiming other buyers are interested, collects a reservation fee or deposit, and then disappears or denies any transaction occurred once you try to proceed with the purchase.
The single most effective protection against each of these three scams in the Philippines is independent verification: for fake titles, verify ownership at the Registry of Deeds; for double-selling, check that no other annotations or claims exist on the title; and for unlicensed pre-selling, confirm the developer has a valid License to Sell number from DHSUD before paying anything.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How do I verify the seller and ownership in the Philippines without getting fooled?
How do I confirm the seller is the real owner in the Philippines?
The standard verification process to confirm the seller is the real owner in the Philippines is to request the title details (Transfer Certificate of Title number and registered owner name), then go to the correct Registry of Deeds office and request a certified true copy to compare against what the seller showed you.
The official document foreigners should check is the Transfer Certificate of Title (TCT) for land or the Condominium Certificate of Title (CCT) for condo units, and the only trustworthy version is one you obtain directly from the Registry of Deeds rather than a photocopy provided by the seller.
The most common trick fake sellers use to appear legitimate in the Philippines is presenting convincing photocopies of titles along with official-looking IDs or Special Powers of Attorney, and this happens commonly enough that you should treat any document you did not obtain yourself from a government office as potentially fake.
Where do I check liens or mortgages on a property in the Philippines?
The official registry where you check liens or mortgages on a property in the Philippines is the Registry of Deeds, which maintains records of all encumbrances (mortgages, adverse claims, lis pendens, levies) annotated on the back of the property title.
When checking for liens in the Philippines, you should request to see all annotations on the title, not just the front page, and specifically ask the Registry of Deeds staff to confirm whether any encumbrances, mortgages, or adverse claims are currently registered against the property.
The type of lien most commonly missed by foreign buyers in the Philippines is unpaid real property tax, which does not always appear as a title annotation but can still result in the government placing a lien on the property, so you should also obtain a tax clearance from the local Treasurer's Office before proceeding.
It's one of the aspects we cover in our our pack about the real estate market in the Philippines.
How do I spot forged documents in the Philippines right now?
The most common type of forged document used in property scams in the Philippines is the Transfer Certificate of Title (TCT), and while sophisticated forgeries are not extremely common, they happen often enough that you should never rely solely on a document the seller hands you.
Specific red flags that indicate a document may be forged in the Philippines include inconsistent fonts or spacing, serial numbers that do not match Registry of Deeds records, missing or incorrect notarial details, and pressure from the seller to skip the verification step because it "takes too long."
The official verification method you should use to authenticate documents in the Philippines is to visit the Registry of Deeds in person (or through a trusted representative) and request a certified true copy of the title, then compare it against what the seller provided, because the Registry's records are the only authoritative source of title information.
Get the full checklist for your due diligence in the Philippines
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in the Philippines?
What hidden costs surprise foreigners when buying a property in the Philippines?
The three most common hidden costs foreigners overlook in the Philippines are the Documentary Stamp Tax (1.5% of the property price, around PHP 75,000 / USD 1,300 / EUR 1,200 on a PHP 5,000,000 property), the Local Transfer Tax (0.5% to 0.75% depending on location, around PHP 25,000 to 37,500 / USD 450 to 670 / EUR 410 to 610), and association dues or special assessments in condominiums that can run PHP 50,000 to 200,000 (USD 900 to 3,600 / EUR 820 to 3,300) per year.
The hidden cost most often deliberately concealed by sellers or agents in the Philippines is unpaid real property tax from previous years, which sometimes happens when sellers assume you will not check and hope to pass the liability to you at closing.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in the Philippines.
Are "cash under the table" requests common in the Philippines right now?
Requests for undeclared cash payments in property transactions in the Philippines are common enough that you should expect at least one party to suggest it, usually framed as a way to "save on taxes" by declaring a lower purchase price than what you actually paid.
The typical reason sellers give for requesting undeclared cash payments in the Philippines is to reduce the Capital Gains Tax (which is 6% of the higher of the selling price or zonal value), but this reasoning is often flawed because the Bureau of Internal Revenue bases taxes on whichever value is higher, so under-declaring often does not save as much as sellers claim.
The legal risks foreigners face if they agree to an undeclared cash payment in the Philippines include losing proof of what you actually paid (which weakens your legal position in any future dispute), potential tax evasion charges if authorities investigate, and difficulty proving the true value of your investment if you ever need to sell or refinance.
Are side agreements used to bypass rules in the Philippines right now?
Side agreements to bypass official rules are common in Philippines property transactions, particularly arrangements designed to circumvent the foreign land ownership restriction, such as putting property in a Filipino nominee's name while the foreigner maintains "control" through a private contract.
The most common type of side agreement used to circumvent regulations in the Philippines is the nominee or dummy arrangement, where a foreigner pays for land but titles it in a Filipino's name, with a separate private agreement supposedly guaranteeing the foreigner's rights.
The legal consequences foreigners face if a side agreement is discovered by authorities in the Philippines include potential nullification of the entire transaction (meaning you lose the property with no refund), prosecution under the Anti-Dummy Law (Republic Act 2630), and deportation in severe cases, plus you have almost no legal recourse if your Filipino nominee decides to claim the property as their own.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in the Philippines in 2026?
Are real estate agents regulated in the Philippines in 2026?
As of early 2026, real estate agents in the Philippines are regulated under the Real Estate Service Act (Republic Act 9646), which requires brokers and salespersons to pass a licensure exam and register with the Professional Regulation Commission (PRC).
A legitimate real estate agent in the Philippines should have a valid PRC license as either a Real Estate Broker or a Real Estate Salesperson, and they should be able to provide you with their license number and PRC identification card upon request.
Foreigners can verify whether an agent is properly licensed in the Philippines by visiting the PRC's online verification portal at verification.prc.gov.ph, entering the agent's name, and confirming that their license is current and valid.
Please note that we have a list of contacts for you in our property pack about the Philippines.
What agent fee percentage is normal in the Philippines in 2026?
As of early 2026, the normal agent fee percentage in the Philippines for residential property transactions is around 3% to 5% of the sale price, though this can vary depending on the property type, location, and negotiation between parties.
The typical range that covers most residential transactions in the Philippines is 3% for straightforward deals with established developers and up to 5% for resale properties or deals requiring more agent involvement, with anything significantly above 5% warranting a detailed explanation of what additional services justify the higher fee.
In the Philippines, the seller traditionally pays the agent's commission, but in practice this cost is often factored into the sale price, and in some expat-heavy areas like Makati, Bonifacio Global City, or Cebu, you may encounter additional "coordination fees" or "processing fees" that should be clearly itemized and explained before you agree to them.
Get the full checklist for your due diligence in the Philippines
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in the Philippines?
What structural inspection is standard in the Philippines right now?
The standard structural inspection process for property purchases in the Philippines varies by property type: for condominiums, a professional unit inspection covering finishes, plumbing, and electrical systems is typical, while for houses, a more comprehensive inspection by a licensed civil or structural engineer is recommended.
A qualified inspector in the Philippines should check the foundation and load-bearing walls, roof condition and water intrusion points, plumbing systems and water pressure, electrical wiring and panel safety, and evidence of termite damage or mold.
The type of professional qualified to perform structural inspections in the Philippines is a licensed civil engineer or structural engineer registered with the PRC, though for condo units, a general building inspector or property specialist can cover most concerns.
The most common structural issues that inspections reveal in properties in the Philippines are water intrusion (especially in bathrooms and near windows), poor drainage causing flooding on lower floors or parking levels, and termite damage in wooden structures, all of which are exacerbated by the country's tropical climate and heavy monsoon rains.
How do I confirm exact boundaries in the Philippines?
The standard process for confirming exact property boundaries in the Philippines involves reviewing the technical description on the Transfer Certificate of Title, comparing it against local tax declaration records, and if the stakes are high, hiring a licensed geodetic engineer to conduct an on-site survey.
The official document that shows the legal boundaries of a property in the Philippines is the Transfer Certificate of Title (TCT), which contains a technical description specifying lot dimensions, bearings, and reference points, and this should match records at both the Registry of Deeds and the local Assessor's Office.
The most common boundary dispute affecting foreign buyers in the Philippines involves properties where the actual fence or structure does not match the title's technical description, often because neighbors have encroached over time or because the property was informally subdivided without proper survey updates.
The professional you should hire to physically verify boundaries on the ground in the Philippines is a licensed geodetic engineer, who can survey the property, mark the corners, and issue a survey plan that you can compare against the title's technical description.
What defects are commonly hidden in the Philippines right now?
The top three defects that sellers commonly conceal from buyers in the Philippines are water intrusion and leaks (especially in ceilings and bathrooms), flood exposure during heavy rains (particularly on ground floors and in low-lying areas), and undisclosed special assessments or pending repairs in condominium buildings.
The inspection technique that helps uncover hidden defects in the Philippines is running the official government hazard screening tool at HazardHunterPH (hazardhunter.georisk.gov.ph) to check for flood zones, fault lines, and landslide susceptibility, combined with visiting the property during or right after a heavy rain to see how drainage and waterproofing actually perform.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What insider lessons do foreigners share after buying in the Philippines?
What do foreigners say they did wrong in the Philippines right now?
The most common mistake foreigners say they made when buying property in the Philippines is skipping independent verification of ownership and agent credentials because the deal "felt friendly" or because they trusted someone who seemed professional.
The top three regrets foreigners most frequently mention after buying in the Philippines are paying money before verifying the agent's PRC license and the seller's title, not checking hazard exposure (especially flooding) before committing to a location, and treating "guaranteed rental return" pitches as normal real estate deals when they were actually unregistered investment schemes.
The single piece of advice experienced foreign buyers most often give to newcomers in the Philippines is to verify everything yourself through official channels (Registry of Deeds, PRC, DHSUD) before paying any money, no matter how trustworthy the agent or seller appears.
The mistake foreigners say cost them the most money or caused the most stress in the Philippines is entering into nominee or dummy arrangements to own land, which leaves them with no legal protection if the Filipino titleholder decides to claim the property or if authorities investigate the arrangement.
What do locals do differently when buying in the Philippines right now?
The key difference in how locals approach buying property compared to foreigners in the Philippines is that experienced Filipino buyers validate paperwork through the originating government office (Registry of Deeds, DHSUD, local Treasurer) rather than trusting documents the seller provides, because they know how easy it is to produce convincing fakes.
A verification step locals routinely take that foreigners often skip in the Philippines is checking with the barangay (local village council) and neighbors about the property's history, any disputes, flood behavior during monsoon season, and the reputation of the seller or developer, which provides ground-level information that no official document can capture.
The local knowledge advantage that helps Filipinos get better deals in the Philippines is understanding which developers have good track records for on-time turnover versus which ones routinely delay by years, and knowing the realistic rental yields in specific neighborhoods rather than trusting marketing projections, which allows them to negotiate more aggressively and avoid overpriced properties.
Don't buy the wrong property, in the wrong area of the Philippines
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about the Philippines, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Land Registration Authority (Registry of Deeds) | The LRA is the official government body that maintains all property title records in the Philippines. | We used LRA guidelines to explain how to verify ownership and check for liens. We also referenced the Registry of Deeds as the only authoritative source for title information. |
| Professional Regulation Commission (PRC) | The PRC is the government agency that licenses real estate professionals in the Philippines. | We used the PRC verification portal to explain how foreigners can confirm an agent is legitimate. We also referenced PRC licensing requirements as the standard for professional credibility. |
| Department of Human Settlements and Urban Development (DHSUD) | DHSUD regulates real estate developers and issues Licenses to Sell for pre-selling projects. | We used DHSUD requirements to explain how to verify pre-selling projects are legitimate. We also cited DHSUD scam warnings as evidence of common fraud patterns. |
| Bureau of Internal Revenue (BIR) | The BIR is the Philippine tax authority responsible for property transfer taxes. | We used BIR tax rates to calculate typical transaction costs for foreign buyers. We also explained how taxes are computed based on the higher of selling price or zonal value. |
| HazardHunterPH (DOST) | This government tool aggregates official hazard data from PHIVOLCS, PAGASA, and MGB. | We recommended HazardHunterPH as the essential first step for checking flood, earthquake, and landslide risk. We emphasized its importance because hazard exposure is a uniquely critical issue in Philippine property. |
| World Justice Project Rule of Law Index 2025 | The WJP Index is a respected global benchmark for measuring rule of law and enforcement reliability. | We used WJP data to explain why contract enforcement is slow in the Philippines compared to other countries. We also used it to contextualize why prevention matters more than legal remedies. |
| Transparency International CPI 2024 | The CPI is the most widely cited measure of perceived public-sector corruption globally. | We used CPI data to explain why foreigners must insist on official receipts and documented payments. We also used it to contextualize the prevalence of informal payment requests. |
| Condominium Act (RA 4726) via Lawphil | Lawphil provides the official text of Philippine laws, including the law governing condo ownership. | We used RA 4726 to explain the 40% foreign ownership cap in condominiums. We also referenced it as the legal basis for why condos are the main ownership path for foreigners. |
| Colliers Philippines Quarterly Report | Colliers is a major global real estate firm with transparent, consistent market reporting. | We used Colliers data to describe current market conditions, developer promotions, and demand patterns. We also used it to triangulate what "normal" looks like in the Philippines residential market. |
| SEC RENT Circular (MC No. 12-2024) | The SEC is the Philippine securities regulator and issued this circular specifically targeting property-linked investment schemes. | We used the SEC RENT circular to explain how "guaranteed rental return" condotel deals may actually be unregistered securities offerings. We used it to warn foreigners about this common grey-area pitch. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.