What to Know About Real Estate Scams in the Philippines
The real estate industry in the Philippines is booming, with numerous developments and investment opportunities popping up across the country. However, with this growth also comes the rise of scams that prey on unsuspecting buyers and even real estate professionals. As a real estate practitioner—whether you’re a broker, salesperson, or appraiser—it’s crucial to be aware of these fraudulent schemes so you can protect yourself and your clients.
1. Double Selling or Overlapping Sales
How it Works: A scammer sells the same property to multiple buyers, usually collecting down payments from each before disappearing. In some cases, they manipulate documents to make it look like they have legal ownership of the property.
How to Avoid It:
- Always verify the title with the Registry of Deeds.
- Request a Certified True Copy of the title.
- Check for any annotations that might indicate previous sales or legal issues.
2. Fake Titles and Forged Documents
How it Works: Fraudsters create fake land titles and other documents to sell properties that they do not legally own. Some even forge a deceased owner’s signature to transfer ownership unlawfully.
How to Avoid It:
- Verify the authenticity of the title at the Land Registration Authority (LRA): https://lra.gov.ph/
- Inspect the documents for inconsistencies, such as font differences and missing watermarks.
- Cross-check the seller’s identity with government-issued IDs and supporting documents.
3. Pre-Selling Scams
How it Works: Some developers sell condominium units or house-and-lot packages even before construction begins. The scam happens when developers fail to deliver on time or, worse, abandon the project entirely after collecting payments.
How to Avoid It:
- Only work with developers accredited by the Department of Human Settlements and Urban Development (DHSUD): https://dhsud.gov.ph/
- Check if the developer has a valid License to Sell.
- Research the developer’s track record and past projects.
4. Rent-to-Own Scams
How it Works: Scammers pose as landlords offering rent-to-own deals on properties they don’t own. They collect deposits and initial payments before disappearing.
How to Avoid It:
- Verify the ownership of the property with a Certified True Copy of the title.
- Use a notarized contract when engaging in rent-to-own transactions.
- Avoid paying in cash; use traceable payment methods instead.
5. Foreclosed Property Scams
How it Works: Scammers pose as bank representatives selling foreclosed properties at “bargain” prices. They collect reservation fees or down payments but do not process the actual sale.
How to Avoid It:
- Verify listings directly from banks or government institutions.
- Never transact with individuals claiming to sell bank-foreclosed properties without authorization.
- Demand official receipts and transaction records.
6. Bogus Real Estate Salespersons
How it Works: Some individuals pose as licensed real estate salespersons or brokers without proper accreditation. They may take deposits or commissions from clients and disappear afterward.
How to Avoid It:
- Ensure the salesperson or broker is licensed with the Professional Regulation Commission (PRC): https://www.prc.gov.ph/
- Ask for their PRC ID and check their credentials online.
- Deal only with reputable real estate firms.
Conclusion
Sa dami ng real estate transactions sa Pilipinas, hindi talaga maiiwasan na may mga manloloko na gustong makalamang. Kaya bilang isang real estate professional, kailangan mong maging mapanuri at maingat sa bawat transaksyon. Huwag basta-basta magtiwala, laging mag-verify ng documents, at siguraduhin na legit ang kausap mo.
Remember, your credibility is your most valuable asset in this industry. Kapag na-scam ang kliyente mo, maaaring maapektuhan ang iyong reputasyon. Kaya bago magbenta, bumili, o mag-refer ng property, siguraduhin mong safe at secure ang transaction. Stay informed, stay alert, at lagi tayong mag-ingat!
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