It is every hardworking Filipino’s dream to own a home. However, there are instances when their hard-earned money goes to waste because of falling victim to real estate scams. While buyers are hoping to provide a decent shelter that their families can roost in, there are people who are after their money. The good news is, buyers can still avoid these scams. Here are some of the common real estate scams that buyers need to avoid.
1. Double Sale
Double sale of property refers to selling one property to two different people. This scam happens when the first buyer has not registered and transferred the title to their name. The owner will take advantage of the situation by reselling the property. As a result, both buyers will hold the same title under their own names.
2. Insufficient Disclosure
Real estate agents or developers intentionally provide incomplete information to the prospective buyer. With this scam, the developer may appear to have an attractive offer but due to the insufficient information, prospects will think twice in committing to buying the property. However, there are buyers who still fall prey to this scam and suffer from hidden charges, title complications and unsatisfactory structural facts.
3. Fake Agents
Real estate agent posers will use the Internet to trick buyers into believing that they are selling affordable properties. More often than not, fake agents will create a website where listings are copied from a legitimate site. They will provide believable information to prospects and once buyers agree to paying the initial deposit, these fake agents will mysteriously disappear.
4. Property Title Fraud
Everybody wants to get a great value for money and an agent that offers an affordable property will surely be appealing to prospects. Unfortunately, these affordable properties are non-existent. Once the security deposit is given to the fake agents, buyers will get fake property title in return.
How to avoid real estate scams?
• Be sure that the developer or agent has a license to sell. This can be verified through Housing and Land Use Regulatory Board.
• Ask the agent to visit the project site and the materials used to build the property.
• Never attempt to sign blank Contract to Sell forms.
• If still in doubt, consult a trusted lawyer to help you with accomplishing paperwork and signing any contract.
• Purchase a property from a reputable developer with solid history of delivering properties in a timely manner and without compromising on quality.
• For developers financing through Pag-Ibig Fund, buyers can verify if the property has been mortgaged with the Fund.
• The buyer can also verify authenticity of the land title with the Register of Deeds.
• It is safe to enter into a contract if the project already has a License to Sell.
• Engage services of a licensed broker especially for pre selling projects.
• Ask for official receipts when dealing with the owner or developer.
