DUE DILIGENCE IS PARAMOUNT: A REVIEW OF THE PRINCIPLES AFFIRMED BY THE SUPREME COURT IN DINA MANAGEMENT CASE

The Court underscored that prospective purchasers of land must go beyond routine searches at the land registry. Comprehensive due diligence now includes:

• Investigating the root of title to ensure that the initial allocation and subsequent transfers of land rights complied with constitutional and statutory procedures;

• Physically inspecting the land to verify occupation, use, zoning, and any competing claims;

• Scrutinizing the legality of any original grant or alienation, especially where the land in question is situated near public utilities or reserves.

This principle recognizes that a registered title is not inherently indefeasible where there is evidence that the title originated from a transaction that was procedurally flawed or illegal. Purchasers are therefore charged with an affirmative duty of inquiry, and failure to meet this standard may result in the loss of purported ownership rights.