No investment decision in Boracay — regardless of how compelling the opportunity seems — should be finalized without completing thorough due diligence. Philippine real estate has specific legal, regulatory, and operational risks that require systematic investigation.
Here is the definitive 10-point due diligence checklist for Boracay property investors.
Title Verification at the Registry of Deeds
Obtain a certified true copy of the TCT (Transfer Certificate of Title) or CCT (Condominium Certificate of Title) directly from the Registry of Deeds in Kalibo, Aklan — not from the seller or developer. Verify that the title is in the name of the registered owner, free from adverse claims, liens, or encumbrances. Any annotation on the title should be investigated with a qualified attorney before proceeding.
DHSUD License to Sell Verification
For any pre-selling development, verify the developer's License to Sell on the DHSUD (Department of Human Settlements and Urban Development) website. The LTS is a mandatory pre-sales requirement and its absence is an immediate disqualifying red flag. No payment of any amount should be made to a developer without a verified LTS.
BIATF Compliance Confirmation
Confirm that any existing structures on the property comply with BIATF regulations, including the 30-meter shoreline easement, building height limits, and environmental clearances. For new developments, verify that BIATF clearance has been issued for the project. Absence of BIATF clearance for a development in Boracay is a serious red flag.
Environmental Compliance Certificate
Verify that the property or development holds a valid Environmental Compliance Certificate (ECC) from the DENR or BIATF. Development without an ECC is non-compliant and subject to closure or demolition.
Local Government Business Permits
For resort or commercial property purchases, verify that all current operating permits from the Malay LGU are valid and current. Confirm that real property taxes are up to date — unpaid RPT creates liens that transfer to the new owner.
Geodetic Survey Verification
Engage a licensed geodetic engineer to conduct a relocation survey confirming that the physical boundaries of the property match the TCT description and that the property is not encroaching on adjacent lots, roads, or easement zones.
Inspection of the Physical Property
Conduct a thorough physical inspection of any existing structure, covering: structural integrity (walls, floors, roof), plumbing and electrical systems, air conditioning, signs of water damage or mold, condition of common areas and amenities, and security infrastructure. For condominiums, inspect actual common areas — not just show units.
Developer Track Record Investigation
For pre-selling purchases, investigate the developer's track record of project delivery. Visit completed projects. Speak to unit owners in completed developments. Check for pending complaints with DHSUD or the courts. A developer with a strong completion record is a meaningfully lower risk than an untested developer.
Management Operator Due Diligence
For resort-integrated units, independently assess the management operator's performance. Review guest ratings on Booking.com, Agoda, and TripAdvisor for existing units in the same development. Request actual historical occupancy data (not projections) from existing unit owners if possible.
Legal Review of All Contracts
Engage an independent Philippine attorney (not the developer's legal counsel) to review all contracts before signing, including the Reservation Agreement, Contract to Sell, Deed of Sale, and any Rental Management Agreement. Pay particular attention to completion warranties, turnover penalty provisions, rental split structures, management fee definitions, and exit clauses.