On Land, Legacy, and Listening to the Ground Beneath You
When a San Francisco Realtor reviews a hillside lot in Baguio City via Zoom, the result is a masterclass in smart, respectful property offers. From soil analysis to zoning insights, discover how to invest in Philippine real estate with clarity, due diligence, and global perspective.
By Richard Valdez | San Francisco Realtor & Global Property Investor
Investing in Property Abroad: From San Francisco to Baguio City
San Francisco real estate has taught me that every parcel of land tells a story—one that deserves to be understood fully before any offer is made. That’s why, when I virtually toured a hillside lot in Buenos Aires, Dontogan, Baguio City, Philippines, I brought the same thoughtful lens I use when representing clients in San Francisco's competitive real estate market.
Touring Baguio Real Estate Virtually: A Zoom Call with High Stakes
Even though I wasn't physically present in Baguio, I explored the property via a Zoom video call with my Philippine-based architects and local real estate agent—joined by my husband and our four dogs watching from home. Through the screen, the views were breathtaking. But as a seasoned Realtor, I knew better than to rely solely on first impressions.
Due Diligence in International Real Estate: What Lies Beneath the Surface
Whether in San Francisco or the Philippines, one rule remains: never skip the due diligence. A geotechnical report revealed soluble limestone beneath the property—a red flag in Baguio, a city known for heavy rainfall. In my experience, you can’t build confidently on soil that may dissolve beneath you.
What Is Soluble Limestone, and Why Should Real Estate Buyers Care?
Soluble limestone can erode, creating dangerous voids beneath the ground. For hillside developments in areas like Baguio, this isn’t a small detail—it’s a structural game-changer.
Writing a Respectful, Data-Driven Offer on a Lot in Buenos Aires, Dontogan, Baguio City
The land was listed at ₱16,000 per square meter. After reviewing reports and calculating additional construction requirements, we submitted a fair offer of ₱13,000 per square meter. This wasn’t about negotiating for the sake of it—it was about ensuring safe and sustainable property development in Baguio City.
Smart Real Estate Offers Are Built on Facts, Not Just Feelings
My offer accounted for:
Engineering upgrades
Deeper, reinforced foundations
Enhanced drainage infrastructure
This wasn’t a lowball—it was an informed, responsible offer, backed by experience.
Zoning Laws Matter: R3 Development Impacts Property Value
The neighboring lot is zoned R3, meaning multi-story construction is permitted. This could affect natural light, noise, privacy, and long-term property value. It’s a reminder: always research adjacent zoning when investing in Philippine real estate or abroad.
Real Estate Without the Drama: Clarity, Commitment, and Integrity
We made it clear:
✅ We were ready to begin legal due diligence immediately
✅ Full payment could be released within 30 days
✅ No endless back-and-forth
As a Realtor, I value offers that feel like partnerships—not pressure tactics.
What San Francisco Real Estate Has Taught Me About Global Investment
The lessons I’ve learned in San Francisco real estate—about timing, transparency, and respect—served me well here. Real estate isn’t just about closing deals. It’s about starting the next chapter with confidence and clarity.
Final Thoughts: How to Approach International Real Estate Wisely
Before you make an offer—whether in Baguio City, the Bay Area, or anywhere in between—ask yourself:
Have you researched the soil and infrastructure?
Do you understand the zoning?
Are you offering with respect and realism?
Because in this business, your principles are your brand.
Ready to Buy Property in San Francisco or the Philippines?
If you're looking to invest in San Francisco real estate, explore international property in the Philippines, or simply want a Realtor who puts thought into every offer, I invite you to connect.
👉 Visit www.RichardValdezRE.com
Let’s make sure your next real estate decision is built on solid ground.
Understanding Tax Declaration Lots in Baguio City: A Lesson from Outlook Drive
Buying a Tax Declaration property in Baguio City — especially along Outlook Drive — can feel like stepping into a dream wrapped in pine-scented fog. But beneath that view lies a maze of paperwork, patience, and history. Learn why some prime Baguio lots remain untitled, what “Tax Declaration only” really means, and how to protect your investment through due diligence and proper titling. A must-read guide for anyone planning to buy property in Baguio, written by Realtor Richard Valdez.
by Richard Valdez - www.RichardValdezRE.com
There’s a certain calm that hangs over Outlook Drive in Baguio City — a place where the fog rolls in like a soft blanket and the scent of pine trees drifts through the air. But beneath that beauty, there’s something most people don’t see. Some of these parcels of land, despite sitting on prime mountain real estate, don’t come with the golden piece of paper every property buyer hopes for: a land title.
They’re what locals call “Tax Declaration properties.” And if you’re a buyer dreaming of building your mountain home here, you need to understand what that means — before you write that first check.
What Is a Tax Declaration Property?
A Tax Declaration (Tax Dec) property is land that’s recognized for taxation purposes but not yet formally titled under the government’s Torrens system. In simple terms, you can pay real estate tax on it, build a home, and even pass it on to heirs — but legally, it’s not yet registered in your name as owner under the Land Registration Authority (LRA) or Department of Environment and Natural Resources (DENR).
Think of it as having the keys to the land, but not yet the deed.
Why Some Outlook Drive Lots Remain Untitled
Now, you might wonder — how can land on a prestigious stretch like Outlook Drive, home to luxury apartments and heritage houses, still be untitled? The reasons often lie deep in history, bureaucracy, and local land laws.
1. Ancestral or Private Claims Overlapping
Some parcels in Baguio sit on ancestral domains — land historically claimed by indigenous groups. These overlapping claims can delay or prevent titling until disputes are resolved.
2. Incomplete or Lost Documentation
Over decades, property boundaries and ownership documents can go missing. A simple missing survey plan or old deed can halt the titling process indefinitely.
3. Government or Institutional Ownership
Certain lands along Outlook Drive may still technically belong to government entities, such as the DENR, City Government of Baguio, or even Camp John Hay Reservation areas. These can only be acquired through Miscellaneous Sales Applications (MSA) or special titling programs.
4. Historical Subdivision and Inheritance Issues
Families often subdivided land informally over generations, transferring property rights through private deeds rather than formal titling. The paper trail gets blurry, and formal ownership becomes a puzzle with missing pieces.
5. Pending Conversion from Alienable and Disposable Land
Some properties haven’t been officially reclassified as Alienable and Disposable (A&D) by the DENR. Without that designation, the land cannot be titled — no matter how long you’ve paid taxes.
Can a Tax Declaration Lot Be Titled Later?
Yes — but it’s not automatic. You’ll need to apply through the Miscellaneous Sales Application (MSA) or other land disposition programs under the DENR. The process involves:
Surveying and verifying that the land is alienable and disposable.
Paying the zonal value or fair market value of the land to the government.
Submitting proof of long-term possession and tax payments.
Waiting months — sometimes years — for government approval.
And remember: your payment to the seller of the Tax Declaration rights is separate from what you’ll owe the government.
What Every Buyer Should Do Before Buying a Tax Declaration Property
Before you sign anything, do your due diligence — or hire someone who can.
1. Engage a Real Estate Lawyer and Licensed Broker
A local real estate lawyer can perform due diligence on the property — checking for encumbrances, ancestral claims, disputes, and government restrictions before you buy.
2. Verify with the Barangay and DENR
Ask the Barangay Office and DENR-CAR if the land is eligible for titling or falls within protected or reserved zones.
3. Structure Your Payment in Tranches
Put a clause in your agreement that payment is subject to due diligence clearance.
Small earnest money after initial checks.
Balance after Barangay/DENR verification.
Final payment upon Deed of Sale for the Tax Declaration rights.
That way, if any problem surfaces, you can walk away safely.
The Real Price of Paradise
Owning land in Baguio — especially along Outlook Drive — is like capturing a piece of heaven. But heaven, as we know, always asks for faith, patience, and a little bit of paperwork.
A Tax Declaration property isn’t a deal-breaker — it’s just a longer story to tell. And if you start that story with due diligence, the ending could be beautiful.
Because in real estate, just like in life, the view is worth it only when the ground beneath you is solid.