RULES IN USING LAND AS COLLATERAL FOR A LOAN

Hello! First post. Hope may makaanswer.

Do you have to pay in full for the land before you receive the legal documents evidencing absolute ownership?

Ownership is transferred by delivery. But an article from lamudi.com.ph says that you can only claim the property as your own once the title is transferred, which I believe is through the Transfer Certificate of Title.

Common sense would dictate that a seller should not process these documents unless and until he has been fully paid. Otherwise, the buyer could renege on the promise. Maybe I'm wrong, so what exactly is happening in real life?

This is for a feasibility study. Hypothetically, we want to purchase the land for our business to stand. Use the land as a collateral for a loan to finance the construction of the premises. What exactly should we, hypothetically, do?

The TL;DR is: Would the seller process the transfer certificate of title only when he is paid in full?

Issuance of a certificate of title in your name is not a mode of transferring the ownership of the land to you. It is because registration is not a mode of acquiring ownership, but merely a mode of confirming ownership over the property that you already acquired through, let's say, sale. Therefore, it is necessary that there is already a deed of sale so that you may now register the property in your name. Try reading this, I hope it helps. https://www.alburovillanueva.com/land-titles-property-dealings