Seller Identity and Authority Verification
Learn how to verify the seller's identity, check for proper authority to sell, and handle special situations like SPAs, corporate sales, estate properties, and co-ownership.
Verifying the Seller's Identity
“A notary public shall not perform a notarial act if the person involved as signatory to the instrument or document is not in the notary's presence personally at the time of notarization; and is not personally known to the notary public or otherwise identified by the notary public through competent evidence of identity.”
What This Means
The most basic due diligence is confirming the seller is who they claim to be. Identity theft and impersonation are common in real estate fraud. Verify identity through: (1) government-issued photo IDs (at least 2, with matching signatures), (2) comparison with the name on the title, (3) personal appearance before the notary (required by law), and (4) for high-value transactions, additional verification like barangay certification of residency or NBI clearance. The notary public is legally required to verify identity but this alone is not sufficient. the buyer/broker should independently verify.
- Require at least 2 government-issued photo IDs from the seller
- Name on IDs must exactly match the registered owner on the title
- Seller must personally appear before the notary. no exceptions
- Check for discrepancies in signatures across documents
- For high-value transactions: barangay certification, NBI clearance, community verification
Real-World Scenario
A seller presents himself as "Roberto Cruz" matching the TCT. He provides a driver's license and passport. However, the broker notices the passport photo looks slightly different, and the seller claims he "had surgery" to explain the difference. The property is worth P50,000,000.
What additional verification steps should the broker recommend?
Special Power of Attorney (SPA) Verification
“A special power of attorney is necessary: To make such payments as are not usually considered as acts of administration; To effect novations which put an end to obligations already in existence at the time the agency was constituted; To compromise, to submit questions to arbitration, to renounce the right to appeal from a judgment, to waive objections to the venue of an action or to abandon a prescription already acquired; To waive any obligation gratuitously; To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration.”
What This Means
When the registered owner cannot personally sell, they may authorize another person through a Special Power of Attorney (SPA). An SPA for real property sale MUST: (1) be in writing, (2) specifically describe the property, (3) state the authority to sell and the terms, (4) be notarized, and (5) if the principal is abroad, be authenticated by the Philippine Consulate. Common frauds involve fake SPAs, expired SPAs, or SPAs that have been revoked. Always verify the SPA's authenticity independently. contact the principal directly, check with the notary who notarized it, and verify consular authentication.
- SPA for real property must specifically describe the property being sold
- Must be notarized; if executed abroad, must be consularized
- Verify directly with the principal (owner) that the SPA is authentic and current
- Check if the SPA has been revoked. revocations should be annotated on the title
- SPA with general terms ("all my properties") is insufficient. must be specific
Real-World Scenario
An agent presents an SPA from the registered owner (currently in the USA) authorizing him to sell a house and lot in Manila. The SPA is notarized by a Philippine notary in Manila and dated 6 months ago. The SPA says "to sell my property in Manila" without specifying the exact lot or title number.
What are the issues with this SPA?
Corporate Authority and Estate Settlement Verification
“Every corporation incorporated under this Code has the power and capacity to purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage and otherwise deal with such real and personal property as the transaction of the lawful business of the corporation may reasonably and necessarily require, subject to the limitations prescribed by law and the Constitution.”
What This Means
When buying from a corporation, verify: (1) a Board Resolution or Secretary's Certificate authorizing the sale and designating who can sign, (2) the corporation's SEC registration and Good Standing Certificate, (3) the authorized signatory matches the resolution. For estate properties: require (1) the death certificate of the registered owner, (2) proof of settlement. either an Extrajudicial Settlement (if all heirs agree and no debts) or a court-approved settlement, (3) BIR estate tax clearance (eCAR), and (4) all heirs' consent/signatures. Missing any heir's consent can void the entire sale.
- Corporate sale: require Board Resolution + Secretary's Certificate + SEC Good Standing
- Verify the signatory is the person authorized in the Board Resolution
- Estate sale: require death certificate + settlement agreement + all heirs' consent
- Extrajudicial settlement must be published in a newspaper of general circulation
- Missing one heir's signature can void the sale. verify the complete list of heirs
Real-World Scenario
A property is titled to "Jose Reyes, married to Carmen Reyes." Jose died in 2020. His wife Carmen and their son Marco want to sell the property. They present an Extrajudicial Settlement signed by both of them. However, the buyer's lawyer discovers Jose has a daughter (Sofia) from a previous marriage who was not included in the settlement.
Can Carmen and Marco validly sell the property without Sofia?
Frequently Asked Questions
What if the title owner is married but the spouse refuses to sign the deed of sale?
If the property is conjugal (acquired during marriage), BOTH spouses must consent to the sale under Article 124 of the Family Code. A sale of conjugal property without spousal consent is VOID. If the property is paraphernal/exclusive (acquired before marriage or by inheritance), spousal consent is not required but is still recommended to avoid future disputes. In case of unjust refusal, the selling spouse can petition the court for authority to sell under Article 124.
How do I verify a Secretary's Certificate for a corporate sale?
A Secretary's Certificate attests that the board resolution authorizing the sale exists. To verify: (1) Check that the corporate secretary named is the actual secretary per SEC records (available via SEC Express or SEC website), (2) Verify the corporation's SEC registration and GIS (General Information Sheet), (3) Request a copy of the actual board resolution. not just the certificate, (4) Confirm the authorized signatory's ID and specimen signature, (5) For extra safety, check with other officers/directors independently.
Can a minor (below 18) sell real property?
No. A minor cannot execute a valid deed of sale. contracts entered into by minors are voidable. If a minor inherits real property, any sale must be authorized by the court through a judicial guardian. The guardian must petition for authority to sell, demonstrate the sale is necessary and beneficial for the minor, and the court must approve the terms. The proceeds must be deposited in a bank for the minor's benefit until they reach legal age.