It's not there

Once upon a time, a buyer was just about to close the purchase of a condo unit. He had paid a sizeable amount as earnest money for the purchase.

Everything was in order: certified copies of the Title and tax declaration were procured, the Tax Clearance was issued, and other condo admin-related documents were on hand. The final step was to execute the Deed of Absolute Sale and pay the balance.

The seller and the buyer met to close the sale. The parties presented the pertinent documents/items for the sale: manager's Checks, Deed of Absolute Sale, etc. When it came to the property title, the seller pulled out a blue document.

Broker: "Sir, that's the certified copy of the Title. The CCT is yellowish with a red or blue border." 😅

Seller: "This is the only document I have."

The seller handed over the envelope to the broker so the broker could check himself. The Title wasn't there.

The parties rescheduled the signing to a later date as the seller tried to locate the missing Title. The buyer looked irate with how the scenario turned out, partly blaming the broker for not checking.

A few weeks passed, and the seller still couldn't find the Title. He seemed impervious to the situation, thinking he could simply have another one produced. After being updated, the buyer became restless and demanded his money back.

The problem is that the seller had already used the earnest money as a downpayment for another property.

Lessons:

1. Property owners should familiarize themselves with pertinent ownership documents.

2. Include "possession of the title" in your due diligence process (e.g., have the seller show the copy of the Title via a video call)

3. FYI, if the owner's copy of the Title is lost, the reissuance of a new copy would require court hearings and take approximately 16 to 24 months.