Avoiding Real Estate Scams: A Seller’s Legal Guide
Protecting Yourself, Your Property, and Your Peace of Mind
Selling property in the Philippines is a major financial move. For many homeowners, it’s the result of years of hard work, sacrifice, and careful planning. But in a market where opportunities are high, so are the risks—especially when it comes to scams that target property sellers. While most people associate scams with buyers being victimized, many sellers also fall into traps that cost them time, money, and sometimes even ownership of their homes.
This guide breaks down the most common real estate scams targeting sellers and the legal steps you can take to protect yourself.
1. Fake Buyers and “Option Fee” Tricks
One of the most common scams involves individuals pretending to be serious buyers. They will present themselves as well-dressed, well-spoken, and even show fabricated bank statements to appear credible. Their goal? To convince you to sign Option to Buy agreements or Reservation Agreements where you, the seller, end up paying hidden charges or taxes supposedly needed to “speed up” the purchase.
How to Protect Yourself:
Never pay any amount to a buyer. Legitimate buyers do not require sellers to shell out fees.
Always read contracts and have them reviewed by a lawyer before signing.
Verify the buyer’s identity and financial capacity before entering any agreement.
2. Identity Theft and Impersonators
There are cases where scammers pretend to be the property owner and try to negotiate with third parties behind your back. But the reverse can also happen: scammers might pretend to be buyers using someone else’s identity.
How to Protect Yourself:
Ask for government-issued IDs and cross-check signatures.
Conduct video calls or face-to-face meetings to validate identities.
Document every transaction and communication.
3. Fraudulent Payments and Bounced Checks
Some scammers offer to pay in the form of post-dated checks or manager’s checks, only for sellers to discover later that the checks were either counterfeit or unfunded. By the time the bank confirms the fraud, the scammer may have already taken possession of your property documents.
How to Protect Yourself:
Accept payments only through verified bank transfers or on-cleared manager’s checks.
Never release the original title until payment has fully cleared.
Use escrow services when dealing with large amounts.
4. Fake Real Estate Agents or Middlemen
Some individuals introduce themselves as brokers or agents even without a PRC license. They may promise high-selling prices or a roster of “sure buyers,” only to disappear after receiving commission advances or sensitive documents.
How to Protect Yourself:
Verify licenses through the Professional Regulation Commission (PRC).
Avoid giving anyone original documents unless absolutely necessary.
Only sign broker agreements with accredited agents or brokerage firms.
5. Illegal Double Sales
Sellers can also be dragged into scams without realizing it. A fake buyer may attempt to register a fraudulent Deed of Sale with the Register of Deeds even before completing payment. They may also resell your property illegally right after obtaining photocopies of your title.
How to Protect Yourself:
Keep your land title, tax declaration, and deed of sale documents secure.
Always notarize contracts before releasing any proof of ownership.
Check the buyer’s history—ask for references and verify their reputation.
6. Signing Documents You Don’t Understand
Some scammers use pressure tactics—“ma’am/ser, this promo price is valid only today,” or “we need to notarize this quickly before the bank closes.” They take advantage of a seller’s trust or urgency. In some cases, sellers unknowingly sign Deeds of Absolute Sale thinking they were only signing reservation documents.
How to Protect Yourself:
If you don’t understand it, don’t sign it.
Bring a trusted lawyer to major meetings.
Ask for draft copies of contracts ahead of time.
Conclusion
Sa dami ng modus ngayon, hindi na sapat na honest ka lang bilang seller. Kailangan maging smart ka rin. Ang property mo ay pinaghirapan mo—kaya dapat protektado. Always verify, always document, at huwag magmadali sa anumang deal. Kung duda ka, magtanong. Kung nalilito ka, magpatingin sa abogado. In real estate, ang pinakaunang bantay ng property mo ay ikaw. Maging maingat, maging mapanuri, at siguraduhin na sa bawat pirma, panalo ka, hindi dehado.
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