REAL ESTATE LIMBO

In the Philippine real estate world, I call the gap between full payment and the release of the title Real Estate Limbo. It’s that in-between stage where you’ve paid in full, but the title isn’t in your name—and you can’t sell the property.

How It Happens

Once a buyer pays the final balance to a developer, only then does the developer begin processing the title transfer. This is where the waiting game begins. While a 6- to 12-month timeline is common, I’ve seen extreme cases drag on for over ten years. And it doesn’t end there—after the title is finally transferred, the tax declaration still needs to be updated in the buyer’s name, adding another 3 to 6 months to the process.

Think you can pressure the developer to speed things up? Good luck with that.

Why Limbo Matters

During this period, you technically own the property—but good luck selling it.

You can't tell the Developer to "re-assign" the property (via Deed of Assignment) since the title transfer is already in process.

You can't sell the property (via Deed of Absolute Sale) since you need the new title number for the closing documents and tax payments.

Some sellers consider entering into a Contract to Sell (or Deed of Conditional Sale). But few buyers are willing to pay a large sum for something neither party truly controls. The risk? Double sale. Once a buyer signs a contract to sell with you, what’s stopping you from signing another contract to sell with someone else who’s unaware of the first deal? See the problem?

Banks are no help either. They typically won’t accept a property as collateral unless the title and tax declaration are already in the seller’s name. The only exception? When the transaction is directly between the developer and the original buyer—because the bank knows the developer will deliver the title straight to the bank once it’s ready.

The Takeaway

If you’re planning to sell a property near turnover, plan carefully. You might even consider delaying your final payment to the developer to avoid triggering the title transfer process too early—and getting stuck in limbo.