1–3: Legal, Regulatory, and Title Fundamentals
1. FOREIGNERS CANNOT OWN LAND — BUT HAVE OPTIONS: Philippine law prohibits foreigners from directly owning land. However, foreigners can purchase condominium units outright up to the 40% foreign ownership cap, lease land for up to 50+25 years, or hold up to 40% equity in a Philippine corporation that owns land. 2. THE BIATF IS THE MOST IMPORTANT REGULATORY BODY: No development proceeds without BIATF clearance. Before purchasing any property, confirm BIATF compliance of existing structures and development plans. 3. THE 30-METER SHORELINE EASEMENT IS ABSOLUTE: No permanent structure can be built within 30 meters of the mean high waterline in Boracay.
4–6: Due Diligence Essentials
4. ALWAYS VERIFY THE TITLE INDEPENDENTLY: Never rely on title documents presented by the seller. Always obtain a certified true copy of the TCT or CCT directly from the Registry of Deeds in Kalibo, Aklan. 5. CHECK THE DEVELOPER'S LICENSE TO SELL FROM DHSUD: For any pre-selling project, the developer must hold a valid DHSUD License to Sell. Verify this on the DHSUD website before paying any reservation fee. 6. MODEL CONSERVATIVE RENTAL YIELDS: Developer rental yield projections are always optimistic. Apply a minimum 25–30% haircut to any developer yield projection and model your investment based on conservative annual occupancy (60% average, not 85% peak).
7–10: Financial and Exit Planning
7. UNDERSTAND ALL OWNERSHIP COSTS BEFORE BUYING: Total cost of ownership includes closing costs (3–5%), annual real property tax, monthly association dues, insurance, management fees, maintenance reserves, and income tax on rental earnings. 8. EVALUATE THE MANAGEMENT OPERATOR, NOT JUST THE BUILDING: For resort-integrated condominiums, the quality and financial stability of the management operator is as important as the physical quality of the building. 9. CONSIDER EXIT LIQUIDITY IN YOUR INVESTMENT PLAN: Boracay's secondary market is smaller than Metro Manila or Cebu. Selling a Boracay property can take 6–18 months. 10. ENGAGE PROFESSIONAL ADVISORS BEFORE SIGNING ANYTHING: Engage a PRC-licensed real estate broker, a qualified Philippine attorney, and a tax advisor before signing any contract.
