Due diligence is a chain of verification
The objective is not to collect the most documents. It is to verify the facts that can materially change the purchase: who is selling, what exactly is being sold, whether the project can legally be marketed, what you must pay, what you will receive, and what risks remain.
1. Confirm the seller, developer and project identity
Record the legal developer/project name, phase or tower, selling entity and the person or channel handling the transaction. For preselling subdivision or condominium projects, check the relevant Certificate of Registration and License to Sell. Make sure the approval corresponds to the project or phase being offered rather than a similarly named development.
2. Confirm the exact unit or property
Verify the unit or lot identifier, floor or block, stated area, parking treatment, inclusions, orientation where material, and turnover condition. Keep the dated price sheet and payment schedule that apply to that exact offer. Marketing images and model units should be treated as representations unless the contract clearly identifies what is included.
3. Understand every stage of the payment path
List reservation, equity, lump sums, financing/balance, taxes and fees, turnover charges and recurring ownership costs. Ask which amounts are estimates and which are contractually fixed. Then use the budget framework to test whether the purchase remains workable through turnover.
4. Read the documents before the deadline pressures you
Review the reservation agreement, contract to sell or deed applicable to the transaction, disclosure of charges, cancellation/refund provisions and turnover conditions. If a clause is unclear or financially significant, obtain appropriate professional advice before signing rather than relying on an informal explanation.
5. Verify title and encumbrance questions appropriate to the transaction
For titled property, determine what title document should exist at the current stage and what liens, annotations or restrictions matter. A resale transaction and a preselling condominium purchase require different checks. Our title-verification guide explains the starting questions.
6. Check the Cebu location in real life
Test the routes that matter at realistic times. Observe road access, neighboring uses, construction, noise, flood or drainage concerns where relevant, and the distance to the places that drive your decision. A map pin cannot tell you whether a daily journey is practical.
7. Separate verified facts from forecasts
Rental yield, appreciation, future infrastructure effects and future commercial activity are scenarios—not guaranteed property facts. Ask what evidence supports each claim and whether the purchase still works if the optimistic scenario does not occur.
A practical stop rule
Do not let a reservation deadline substitute for verification. If the exact unit, current payment schedule, payee, applicable project authority or a material contract term cannot be confirmed, resolve that gap before committing substantial funds.
PD 957 establishes the regulatory framework for subdivision and condominium project sales, including registration and licensing requirements. Current project-specific status should be checked with DHSUD.