A Practical Guide with Real-Life Examples
Buying or renting property is a big investment. Unfortunately, real estate scams are common in the Philippines, especially online. Scammers take advantage of buyers who are excited, rushed, or unfamiliar with legal processes. Knowing the warning signs can save you from losing your hard-earned money.
1. Verify the Property Title (Always Check the TCT)
What to do:
Ask for a copy of the Transfer Certificate of Title (TCT) and verify it with the Registry of Deeds where the property is located.
Why it matters:
A legitimate property must have a clean title—no disputes, mortgages, or fake owners.
Example Scam:
A buyer paid a reservation fee for a “rush sale” house. Later, they found out the title was fake and the seller was not the real owner.
Tip:
The name on the title must match the seller’s valid IDs.
2. Be Careful with “Too Good to Be True” Prices
What to do:
Compare the price with similar properties in the area.
Why it matters:
Extremely low prices are often bait used by scammers.
Example Scam:
A condo in BGC was offered at half the market price with the excuse: “Owner is abroad and needs quick cash.” After the down payment, the seller disappeared.
Golden Rule:
If it’s unbelievably cheap, investigate more.
3. Deal Only with Licensed Real Estate Professionals
What to do:
Check if the broker or agent is licensed with PRC (Professional Regulation Commission).
Why it matters:
Licensed brokers are accountable by law.
Example Scam:
A “real estate agent” collected viewing fees and deposits but turned out to be unlicensed and untraceable.
Tip:
Ask for their PRC ID and verify it on the PRC website.
4. Never Rush Payments or Transactions
What to do:
Take time to review documents before paying any amount.
Why it matters:
Scammers pressure victims by saying “Last slot today” or “Many buyers are interested.”
Example Scam:
A buyer was forced to send a down payment immediately via GCash to “secure the unit.” No contract was provided.
Safe Practice:
Never send money without a signed contract and official receipt.
5. Inspect the Property Personally
What to do:
Visit the property in person and talk to neighbors or the barangay office.
Why it matters:
Some scammers sell properties that don’t exist or aren’t for sale.
Example Scam:
A vacant lot was sold online, but it belonged to another family who had no intention of selling.
Extra Step:
Ask the barangay if there are disputes involving the property.
6. Use a Lawyer for Document Review
What to do:
Hire a real estate lawyer to review contracts, titles, and deeds.
Why it matters:
Legal terms can hide unfavorable conditions or fraud.
Example Scam:
A buyer signed a “contract to sell” that had hidden clauses canceling ownership if full payment was delayed by one day.
Reminder:
Legal fees are cheaper than losing millions.
7. Avoid Paying in Cash or Personal Accounts
What to do:
Make payments through banks under the seller’s real name.
Why it matters:
Cash and personal e-wallet accounts are harder to trace.
Example Scam:
Payments were sent to a third-party account “for convenience.” After payment, all contact was blocked.
Best Practice:
Ensure payment details match the seller’s name on the title.
8. Check for Multiple Owners or Heirs
What to do:
Confirm if the property has co-owners or heirs and ensure all have signed consent.
Why it matters:
Selling without all owners’ consent is illegal.
Example Scam:
One sibling sold inherited land without informing other heirs, resulting in a legal battle.
9. Research the Developer (for Condos & Subdivisions)
What to do:
Check if the developer is registered with HLURB / DHSUD.
Why it matters:
Unregistered projects may never be completed.
Example Scam:
Buyers paid monthly amortizations for a subdivision that was never developed.
10. Trust Your Instincts and Ask Questions
What to do:
If something feels off, pause and ask more questions.
Why it matters:
Scammers avoid detailed explanations and documentation.
Red Flags to Watch For:
- No valid IDs
- Refusal to meet in person
- No official receipts
- Pressure to pay immediately
Final Reminder
Real estate scams can happen to anyone—even experienced buyers. The best protection is knowledge, patience, and proper verification.
Remember:
✔ Verify documents
✔ Deal with licensed professionals
✔ Never rush payments
✔ Ask for legal advice
Taking these steps can protect your investment and give you peace of mind. 🏠✨
