No Title, No Loan: It’s Difficult to Get a Bank Loan Without a Land Title


Purchasing your dream home can become a nightmare when you start paying the monthly equity but cannot secure a loan to cover the balance. Things get a little tricky when buyers are caught in the developer’s hook, and dragged to a point of no return.

No Title, No Problem?

Once you’ve made all the necessary equity payments, you start talking to banks for the most competitive rates. Unfortunately, banks look for collateral documents such as the land title and a contract to sell before they start entertaining applicants.

For developers who cannot produce the title to the property due to a multitude of reasons, this can be a huge problem for buyers. Most common excuses that developers have are:

  1. Mother title has not yet been subdivided.
  2. Title is mortgaged.
  3. Land is still subject of a settlement of estate.
  4. Land is under litigation.

Caveat Emptor, Buyer Beware

Next time you want to purchase a property, always ask for the basic documents such as the Transfer Certificate of Title (TCT) and a sample Contract to Sell.

Red flags should raise if a different person appears in the TCT aside from the owner/developer or if the owner/developer cannot produce a copy of the TCT at all.



Owner/developers are required to secure a title to the land clean and free from all liens. Failure of the owner/developer to do this may cause the revocation of their license to sell and/or refund of all payments made to the property that they are selling.

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