For many Overseas Filipino Workers (OFWs) in North America, investing in real estate is the ultimate reward after years of sacrifice. A home or property becomes both a symbol of hard work and a pillar of financial security. But without proper legal and financial guidance, one wrong move can turn your dream investment into a costly mistake.

Here are the common real estate pitfalls OFWs should avoid—and the legal insights to protect your hard-earned money.

1. Buying Without Proper Title Verification

Too often, OFWs rely on relatives or agents to handle transactions back home without ensuring the property’s title is clean. If the title has encumbrances or disputes, you may face litigation later. Always request a Certified True Copy from the Registry of Deeds and consult a lawyer before signing anything.

2. Skipping Written Agreements

Handshake deals or verbal promises are risky. Philippine law requires real estate transactions to be in writing and notarized to be enforceable. Without proper documentation, you expose yourself to fraud, double sales, or unenforceable contracts.

3. Overlooking Taxes and Fees

From capital gains tax, documentary stamp tax, to transfer fees, the costs add up. Many OFWs are shocked when they realize they owe more than they expected. Proper tax planning ensures you remain compliant and avoid penalties.

4. Naming the Wrong Co-Owner

It may be tempting to register property under a relative’s name for convenience. But legally, this can backfire. If disputes arise, proving ownership becomes difficult. The safer approach is to keep the property in your own name, or if needed, execute a clear co-ownership or trust agreement.

5. Falling for Too-Good-To-Be-True Deals

Pre-selling condos or overseas “investment packages” may look attractive, but without checking the developer’s permits (from HLURB/Department of Human Settlements in the Philippines), you risk losing everything if the project never completes. Due diligence is a must.

6. Failing to Plan for Succession

Your property is not just an asset—it’s a legacy. Without a proper Last Will and Testament or Estate Plan, your heirs may face probate battles or heavy estate taxes. Legal planning now prevents family disputes later.

Final Thoughts

For OFWs in North America, real estate remains one of the smartest retirement and investment choices. But as with any legal matter, due diligence is key. Avoiding these common mistakes—and securing proper legal advice—ensures your property truly becomes the home and legacy you’ve worked so hard to achieve.

Real Estate Mistakes OFWs in North America Should Avoid