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.

The Republic Act No. 7279 or the Urban Development and Housing Act is authored by former senator Jose D. Lina and the law has been in existence for many years but, until now, it is misunderstood. While the law aims to pay serious attention to homeless citizens more often referred to as informal settlers, there are some guidelines and procedures that need to be followed in the event of demolition. One of the misconceptions is that informal settlers have the right to own the land if they have been squatting on it for more than 10 years. Unfortunately, this claim has no basis in the law. Thus, it remains a false belief that informal settlers continue to embrace.

There are also scenarios when private landowners pay informal settlers as a form of compensation. Although, private landowners are not prohibited to provide financial assistance to informal settlers who have agreed to relocate, giving money to squatters should be a voluntary act. Prior to relocation, squatters need to be consulted, but consultation does not necessarily mean that their consent is also needed. The role of the government is to ensure that all available resources are exhausted to ensure that the relocation site is near the settlers’ job sites. Without the settlers’ consent, the government will still push through with searching for a suitable relocation site.

Informal settlers do not own the land and this is why they have limited rights. They can be ejected based on ejection and accion publiciana.  Ejectment refers to unlawful detainer or forcible entry while accion publiciana refers to the plenary action to recover the better possession right.

Section 28 of this Act outlines eviction and demolition procedures:

“Sec.  28. Eviction and Demolition. — Eviction or demolition as a practice shall be discouraged. Eviction or demolition, however, may be allowed under the following situations:

(a) When persons or entities occupy danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and other public places such as sidewalks, roads, parks, and playgrounds;      
    
(b) When government infrastructure projects with available funding are about to be implemented; or

(c) When there is a court order for eviction and demolition.chanrobles virtual law library

In the execution of eviction or demolition orders involving underprivileged and homeless citizens, the following shall be mandatory:

(1) Notice upon the effected persons or entities at least thirty (30) days prior to the date of eviction or demolition;     
           
(2) Adequate consultations on the matter of settlement with the duly designated representatives of the families to be resettled and the affected communities in the areas where they are to be relocated;

(3) Presence of local government officials or their representatives during eviction or demolition;

(4) Proper identification of all persons taking part in the demolition;

(5) Execution of eviction or demolition only during regular office hours from Mondays to Fridays and during good weather, unless the affected families consent otherwise;

(6) No use of heavy equipment for demolition except for structures that are permanent and of concrete materials;

(7) Proper uniforms for members of the Philippine National Police who shall occupy the first line of law enforcement and observe proper disturbance control procedures; and

(8) Adequate relocation, whether temporary or permanent: Provided, however, That in cases of eviction and demolition pursuant to a court order involving underprivileged and homeless citizens, relocation shall be undertaken by the local government unit concerned and the National Housing Authority with the assistance of other government agencies within forty-five (45) days from service of notice of final judgment by the court, after which period the said order shall be executed: Provided, further, That should relocation not be possible within the said period, financial assistance in the amount equivalent to the prevailing minimum daily wage multiplied by sixty (60) days shall be extended to the affected families by the local government unit concerned.

This Department of the Interior and Local Government and the Housing and Urban Development Coordinating Council shall jointly promulgate the necessary rules and regulations to carry out the above provision.”

In a country where poverty is one of the biggest challenges that the government faces, you just cannot turn a blind eye on squatters, which are clear and undeniable proof that something needs to be done when it comes to finding these individuals a better place to roost in. Past and present administrations have continued to delve deeper into the root cause of the growing numbers of squatters in and around Metro Manila. 

It constantly ignites a spark of controversy and many fingers have been pointed at the present administration. In the hopes of giving equal rights to the less fortunate, Republic Act 8368 or better known as the “Anti-Squatting Law Repeal Act of 1997” repealed Presidential Decree No. 772. The Presidential Decree penalized squatting and with the repeal act, squatting is deemed a non-crime due to the fact that the squatters themselves are also victims of injustice and unequal social system. 

Under Section 2 of Presidential Decree No. 772, “Any person who, with the use of force, intimidation or threat, or taking advantage of the absence or tolerance of the landowner, succeeds in occupying or possessing the property of the latter against his will for residential commercial or any other purposes, shall be punished by an imprisonment ranging from six months to one year or a fine of not less than one thousand nor more than five thousand pesos at the discretion of the court, with subsidiary imprisonment in case of insolvency.”

Land owners may slightly have a clue which side this Republic Act is on and as a consolation the act does not exempt the so-called professional syndicates and squatters. The squatting syndicates refer to groups of people who are engaged in squatting housing business for their personal gain or profit. Professional squatters are individuals or groups who occupy the land without permission from the landowner. They are referred to as professional squatters because they have sufficient income for legitimate housing. People who have sold their housing units or homelots awarded by the government and chosen to settle illegally in the same place are also considered professional squatters. This law can be found in Republic Act 7279 or the “ Urban Development and Housing Act of 1992.” 

Under Section 16 of the Republic Act:

“Sec.  16. Eligibility Criteria for Socialized Housing Program Beneficiaries. — To qualify for the socialized housing program, a beneficiary: 

(a) Must be a Filipino citizen; 

(b) Must be an underprivileged and homeless citizen, as defined in Section 3 of this Act; 

(c) Must not own any real property whether in the urban or rural areas; and 

(d) Must not be a professional squatter or a member of squatting syndicates.”