Real Estate Scams Everyone Must Know

No one relishes in being deceived by a trusted realtor or partner in growing your real estate Cebu investments. Though every scam story points to the scammer, it is also essential to note that each has participation. The scam can be a result of negligence from the buyer, seller or agent. Either way, no one looks forward to the event.

There are several factors involved in executing the crime - the property, documents, lenders, sellers, buyers, agents, and third-party entities. All of these can perform the violations or be an accomplice. Hence, it's best to be aware of the real estate scams in the Philippines. Below are the crimes rampant in the industry and how they operate.

Abrupt Change in Lender

The property owner receives an official notice regarding the transfer of load to a different lender. Besides the change in the lender, the letter will also inform you that your remaining balance will be carried over a different account name.

If you didn't request for any changes on your loan structure or anything connected to it, it's best to disregard the letter. Moreover, you must verify instructions before accepting any of the terms.

Bogus Buying

A woman under the alias Virginia "Virgie" Manalang had gone around Manila to trick real estate agents and homeowners into giving her cash. She presents herself as a potential buyer of a property. She says she can purchase the unit or house and lot as she is married to an engineer in Australia who sends his monthly pension. To prove it, she issues a check worth hundred thousand as initial payment. However, she initiates to draft the deed of sale and handle the transactions from there. Her acts are questionable as she asks the agent or seller for cash so her lawyer can write the deed of sale. She asks additional amount to cover attorney and notarial fees. She also requests for photocopies of valid IDs and signatures which she uses to target other real estate agents and realtors. Her check is also a bouncing check and the bank account used for it belongs to a different entity.

Copycat Rentals

The person would post an online listing of his or her rental that seems harmless at first. The photos look valid as there are images of the rooms of the unit and its amenities. Fake agents use this tactic to ask renters for a deposit without meeting them in person.

Double Sale

It may be a case of an initial buyer of the property may neglect the registering and transferring the title, or a seller accepting a higher price thought a potential buyer already placed payment.

Fraudulent Schemes by Agents

Agents advertise properties that aren't for sale or currently handled by a different agent. They offer the properties at a low price to bait people. Once the client sends inquiries on the property, the agent will claim it as sold or unavailable. He or she will then offer their own listing which may have a higher price than the previous property.

Some brokers and realtors may take advantage of their skills in selling and building rapport. They may misrepresent a property and neglect to disclose the most important details. Though it is the duty of the agent to be transparent on the pros and cons of choosing the land, condo unit or house and lot, they may not comply to close a sale.

On the other hand, other agents connive to raise their commission fees. One acts as the listing agent, while the other represents the buyer. Both the seller of the property and its buyer aren't aware of the setup which distorts the value of the property. The practice violates the Code of Ethics and Responsibilities for Real Estate Service Practitioners.

Predatory Lending

Loan sharks and small time, unscrupulous financial institutions lure home buyers and house hunters to unfair and abusive loan terms. They coerce their victims through deceptive or exploitative actions to acquire a loan. Most of the time, the forced borrowers don't need, want or can't afford the mortgage.

Property Title Fraud

This type of scam involves the use of old property titles and use it to generate fake titles. The scammer provides supporting documents keep buyers from doubting the deal. Another way of doing it is by presenting a fake title over an existing an existing property regardless if it has an owner or not. People who neglect due diligence are potential victims of this scam.

Sale of Foreclosed Properties

This scam is rampant and likely to happen with Overseas Filipino Workers (OFWs) wanting to invest in a home in the suburbs like Vermosa. Scammers, who act as a homeowner or realtor, offer foreclosed properties to potential buyers who cannot check and inspect the property (due diligence). They forge the documents to make the transaction as real as possible. Once they close the deal and the buyers are ready to move in, they disappear. They are out of reach while buyers deal with the bank.

Unfinished Developments

Lesser known developers or names you haven't heard in the industry must be taken with a grain of salt. Scams involving unfinished developments include asking for reservation fees or amortization on a property without the advertised amenities and facilities. These add-ons can also be pending or abandoned by the developer. These developers may refuse to return the money leaving the owners empty-handed.

Part of this scam is pre-sold properties with low rated that remain unfinished until the turnover date. The developer promises a different period. They move it several times until the buyer gives up.

“Too-good-to-be-true” Real Estate Champions

Individuals advertise themselves as experts who can provide insights on the market and valuable pieces of advice. They sell themselves by conducting seminars promising quick returns and strategies. They market immediate success which is far from reality.

There are also individuals posing as real estate agents. They set up a website full of property listings copied from legitimate realtors. They trick home buyers by presenting forged documents and contact information to pay a security deposit or initial payment.


You can avoid these schemes by raising awareness and spreading them to communities. That way, other people recognize the signs and report them to authorities and institutions immediately. Moreover, you must conduct your research when inquiring in a real estate property in Cavite or any place in the South. You'll have your notes to compare with your broker which can prove their reliability on the transaction.

Note: This article was first published on May 5, 2015, as "Top 3 Real Estate Scams You Need To Avoid." It was updated to raise awareness of potential buyers and sellers of real estate properties.

Image by Quill Group

Why Rent? A List of Pros and Cons for First-Time Homebuyers

Renting a condominium unit, apartment or a house and lot may be a wise decision for others. Some people may think it's the right one for them. The answer always depends on the homebuyer. What are their needs? What are they looking for in the space? Is it crucial to be at a walking distance in their workplace? Can their salary cover monthly mortgages? There's a lot more to consider before settling on a home.

As a first time homebuyer, you must note the factors that can affect your capacity to select and purchase the property that fits your bill. Whether its a checklist of the features you look for in a home, you must consider how all of these affects your homebuying capacity. Sometimes, a condo near a serviced office Makati suits you better than a townhome in the area.

Are you still deciding if renting an apartment a good decision? You can read the pros and cons below to resolve your inner debate. The list starts with the advantages and directly followed by the opposing thought.

Renting Pros

1. Affordability

The monthly rental cost is ultimately cheaper than the mortgage payment and interest fee. Of course, the price depends on the type of property you will undertake. For instance, a high-rise condominium will be more expensive than a bungalow in a gated community. You always have the option to share the space and split the expenses if you wish to settle on properties on the high-end market.

2. Flexibility

A rental is much suited for people always on the move. House ownership won't tie them down. The typical property term is one to two years. Thus, homebuyers who aren't ready to commit can opt to rent. Once the lease expires, you can renew the contract terms or explore the housing market.

Moreover, renting won't drain your finances once the economy is in a depression. Losing your job only results in a delay of lease payments. As interest increase, the mortgage payment becomes higher which can push a homeowner to give up their property.

3. Hassle-free Maintainance

Since you do not own the rental, owner, landlord or a hired keeper will attend to damages and repairs in the area. They cover the fees for upgrading and fixing the features of the place. They ensure to maintain the quality of their property to satisfy their renters and keep their income flowing. All you have to do is save their number in case of an emergency.

4. Exclusive Amenities

If you choose to rent a condo unit, you won't have to worry about recreation. A modern complex comes with high-class facilities such as an Olympic-sized pool, patches of green for relaxation and a basketball or a volleyball court. Others have tennis courts and laundry services. They include these facilities to create a wholesome and stress-free lifestyle for homeowners.

On the other hand, a few apartments include pieces of furniture and appliances for the settlers. There's a stove, refrigerator, dishwasher, and even a dryer. You can stock up on food and other essentials once you get the place. How sweet is that?

The advantages are great but there are downsides to renting a property as your home.

Rental Cons

1. Hidden Costs

The facilities in a condominium aren't free. Though you don't have to pay for maintenance and repairs in your unit, you have to contribute to the preservation of the common areas. Some property owners don't include the fees in your monthly rental, so you have to pay them yourself. It may consist of parking dues, hallway maintenance costs, or garbage collection.

On top of that, your landlord may decide to increase your rent. The increase will affect your budget. It will be difficult to cope in a few months since you also must consider utility bills.

2. Temporary Dwelling

Renting a place isn't sustainable especially if you plan to expand your family. As more people become part of your home, you need additional space for each person as well as the stuff they lug behind them. You might be better with buying and owning a townhome or a house and lot. The rental won't provide the roots to stabilize and establish the history of your family.

3. Common Areas

Asking a relative, friend, or colleague to join you in an apartment solves your financial woes. Unfortunately, it won't provide much privacy. You have to share the bedroom or bathroom especially if you are in a studio type or one bedroom condo unit. Other problems may arise especially if your roommate isn't fond of cleaning and organizing their stuff. Then, there's also the snoring problem, the noise from the TV or the music blaring from the speakers during ungodly hours.

4. Limited Parking

A condominium complex comes with parking lots, but they aren't designated to homeowners. Hence, looking for a spot may consume most of your time. On top of that, you are competing with others to grab the free space.

5. Pet Control

Some apartment rentals or units implement no-pets-allowed policy. It becomes difficult for you and your beloved furry companions to find a place to stay.

6. Fickle Landlords

You have the perfect place, but you can't stand your him or her. They complain whenever you remind them of repairs or maintenance. They are even grouchy when you hand him or her your rental fees. Some property owners are also unreliable as they can trick you into giving in to their price even when the property inputs low-quality materials. They also won't allow remodeling. They want to retain the color of their walls or the placement of specific pieces of furniture and home accessories.


There you have it! These are just some simple tips you should know for yourself even if you aren't a first-time home buyer. The pros and cons of renting will help you arrive at a decision. Hope this has been of help!

Note: The article was first published on June 30, 2014, with the title "The Pros and Cons of Renting a Place To Stay." It has been updated for relevance and comprehensiveness.