PROPERTY DUE DILIGENCE REPORT

Documents under consideration:

1. Transfer Certificate of Title No. ____________ (TCT No. ____________);

2. Petition for Cancellation of Encumbrance in the TCT No. ____________;

3. Tax Clearance for Building with OR No. ____________ (TC-B)

4. Tax Clearance for Lot ____________ with OR No. ____________ (TC-L)

5. “Napakahalang Babasahin” for Lot ____________;

6. Tax Declaration of Real Property No. ____________ (TD-L) and,

7. City of Toledo Notice of Assessment.

Findings:

1. The subject property covered by TCT No. ____________ is particularly

described as Lot No. ____________ Plan No. ____________, Portion of
____________, ____________ located at City of Toledo, Province of Cebu,
Island of Cebu.

2. TC-B is for a property with A. R. P. No. ____________. While TC-L covers a

property described as Lot No. ____________.

3. TD-L covers a property described as Lot No. ____________.

4. TCT No. ____________ has an annotation for liabilities. However, the same
was already cancelled.

Comments:

 TCT No. ____________ covers Lot No. ____________ and NOT Lot No.
____________.

 TC-L covers a property described as Lot No. ____________. Therefore, it is not

the Tax Clearance for TCT No. ____________.

 TC-B is for a property with A. R. P. No. ____________. Unfortunately, there

are no other documents, like its Tax Declaration, to reckon with to determine if it
is the Tax Clearance for the improvements situated in TCT No. ____________.

 TD-L covers a property described as Lot No. ____________. The property

described in TCT No. ____________. Since there is no Tax Clearance
 presented covering Lot No. ____________, as what is attached is for Lot No.
1081-E, there can be no proof if the real property taxes for the said property were
paid or not.

 The names appearing on the aforementioned documents are different. As well as

the name of the requesting party in the receipts and acknowledgement forms.

Recommendations:

1. Ask for the correct Tax Clearances involving the land covered by TCT No.
____________ and its improvement.

2. In its absence, the purchase of the subject property will be very risky and
expensive since if the real property taxes were not actually paid, assessments can
go as high as 5-10 years’ worth of back taxes.

3. Ask for the Tax Declaration covering the improvement situated in the subject
property.

4. The risk respecting the annotation for liabilities can be disregarded since the
same was already cancelled.

5. Inquire comprehensively with the personality of the person you are dealing with.
The difference in the names appearing in the documents for consideration is
highly suspicious.