DUE DILIGENCE BLIND SPOT - PART 2

What’s the usual due diligence process—and why wouldn’t it have caught this mess?

1. Secure certified copies of the Title and Tax Dec.

a. Everything matched perfectly. The names appeared consistently across the CCT, Tax Dec, and passports.

b. No liens or mortgages were annotated. Title was clean.

2. Verify the TINs.

a. The TINs matched the numbers provided.

3. No CENOMAR was required.

They already submitted a Canadian marriage certificate, meaning they weren’t claiming to be single. Under standard practice, this removes the need to check for prior marriages in the Philippines.

So with all that, how did we catch it?

Because couples abroad often forget to update their TINs, we routinely ask them to update their marital status with the BIR after their foreign marriage.

That’s when the red flag exploded:

1. Luz’s TIN was already registered as married.

2. John’s TIN was still single.

And then the second blow: Luz’s surname on the Canadian marriage certificate was BORROMEO, not Reyes.

What could they have done to hide this?

Honestly? Very little.

If Luz:

1. never updated her TIN to “married,” and

2. never submitted the Canadian marriage certificate,

then this issue would’ve slipped past almost any due diligence process—including ours.

What due diligence change could prevent this?

Require a CENOMAR—even if the sellers already claim they’re married—or ask for their Marriage Certificate.

It’s the only way to uncover any prior Philippine marriages hiding in the background.

The problem?

Requesting a CENOMAR or Marriage Certificate instantly makes buyers and brokers look paranoid, and many sellers get turned off.

It’s similar to that buyer who once asked a bank for a letter “guaranteeing” they’d release the title after the loan was paid (story on JPatag.com — search “Mortgaged Property”). The seller was furious, even after we explained the past incident, and the deal nearly collapsed.

Could you also ask female sellers for a birth certificate to confirm their maiden name?

Sure.

But that would make you look even more paranoid.

A birth certificate for a sale? LOL.