Real Estate Scams in the Philippines: How to Protect Yourself
By: Timons Cabansi
Imagine this: You’ve finally saved enough to buy your dream home. You find a property that seems perfect—great location, affordable price, and a charming seller who promises you the moon. You sign the papers, transfer your hard-earned money, and feel a sense of relief.
But weeks later, you discover the property isn’t yours. The title is fake, the seller has vanished, and your dream home has turned into a nightmare.
Unfortunately, this scenario is all too common in the Philippines. Real estate scams are on the rise, preying on unsuspecting buyers who just want a place to call their own. From fake titles to double or even triple selling and fraudulent agents, the tricks are endless.
But don’t worry—we’ve got your back. In this article, I’ll expose the most common real estate scams, share tips on how to protect yourself, and explore what the government is doing to crack down on these schemes.
The Most Common Real Estate Scams in the Philippines
Here’s a rundown of the scams you need to watch out for:
1. Fake Titles, Ghost Titles and Documents
Scammers often use forged titles, tax declarations, or deeds of sale to make a property appear legitimate. They may even go as far as creating fake government seals and signatures.
There’s also ghost titles, which are legitimate on paper and are registered with the Registry of Deeds but do not have a connection to the history of the title on that specific property. So, part of doing due diligence is also verifying and doing a history check on the title of the property.
Red Flags:
- The seller can’t provide original documents and show them personally.
- The title has inconsistencies, such as misspelled names or incorrect lot numbers.
- The property is priced suspiciously low.
2. Double-Selling
In this scheme, a seller sells the same property to multiple buyers. By the time you realize what’s happened, the seller has disappeared with your money.
Red Flags:
- The seller pressures you to make a quick decision.
- The property is already occupied or being shown to other buyers.
- The seller avoids answering questions about the property’s history.
3. Fraudulent Agents and Brokers
Not all real estate agents are created equal. Some are unlicensed or work with scammers to sell non-existent or problematic properties.
Red Flags:
- The agent can’t provide a valid PRC license or other valid ID’s.
- They refuse to give you direct contact with the seller.
- They push you to pay upfront fees without proper documentation.
4. Scam Listings Online
With the rise of online marketplaces, fake listings have become a major problem. Scammers post photos of properties they don’t own, often using stolen images and descriptions.
Red Flags:
- The listing has poor-quality photos or vague descriptions.
- The seller asks for a deposit before you’ve seen the property.
- The price appears excessively favorable.
5. “No Downpayment” Scams
Some developers or agents lure buyers with “no downpayment” schemes, only to disappear after collecting initial fees.
Red Flags:
- The offer sounds too good to be true.
- The developer or agent has a questionable reputation.
- There’s no clear contract or payment plan.
How to Protect Yourself from Real Estate Scams
Now that you know the scams, here’s how to avoid falling victim:
1. Verify the Title
Always check the property’s title at the Registry of Deeds. Look for the title’s authenticity, encumbrances, and ownership history.
2. Work with Licensed Professionals
Only deal with licensed real estate agents, brokers, and developers. You can verify their credentials with the Professional Regulation Commission (PRC) or the Housing and Land Use Regulatory Board (HLURB).
3. Visit the Property
Never purchase a property without first inspecting it. Visit the location, inspect the property, and talk to neighbors to confirm its legitimacy.
4. Check the Developer’s Track Record
Research the developer’s reputation and past projects. Look for reviews, complaints, or news articles about their business practices.
5. Read the Fine Print
Before signing any contract, read it thoroughly. If something seems unclear or suspicious, consult a lawyer.
6. Avoid Rush Decisions
Scammers often pressure buyers to act quickly. Take your time, do your due diligence, and don’t let anyone rush you.
7. Use Escrow Services
For added security, use an escrow service to hold your payment until all conditions are met.
What the Government is Doing to Address Real Estate Scams
The Philippine government has taken steps to combat real estate scams, but there’s still much to be done. Here are some initiatives:
1. Stricter Licensing Requirements
The PRC and DSHUD have tightened licensing requirements for real estate professionals, making it harder for scammers to operate. But these are only for the legitimate real estate professionals, so beware of those who aren’t, and these government bodies are only retroactive as they don’t regulate much on those who practice the real estate profession. We can’t blame them, as sometimes they are underfunded and only rely on whistleblowers who are becoming the watchdogs for the real estate profession.
2. Public Awareness Campaigns
Government agencies like the Department of Human Settlements and Urban Development (DHSUD) are running campaigns to educate the public about real estate scams.
3. Online Verification Systems
The Land Registration Authority (LRA) has launched online systems to verify property titles and ownership.
4. Legal Action
Authorities are cracking down on scammers, with several high-profile cases leading to arrests and prosecutions.
Takeaway
Buying a property is one of the biggest investments you’ll ever make, and it’s crucial to protect yourself from scams. By staying informed, doing your due diligence, and working with trusted professionals, you can avoid becoming a victim.
I, too, have fallen victim to these scammer developers; initially, they appear trustworthy and legitimate during the initial years of client transactions, but ultimately, they turn out to be fraudulent. They would blame you as the agent for the demise of the project as a scapegoat, and also I faced the agony, anger, and sadness of these hardworking clients just to have there own property in there name.
Sadly, it is an ongoing administrative and criminal case today (2025), and it is taking my time, energy, and resources.
For those clients who are reading my blog, I would like to say that
So, even I, who would like to champion the goodness of the real estate profession, have fallen victim to the predatory and fraudulent side of real estate.
Remember, if something seems too good to be true, it probably is. Don’t let scammers turn your dream home into a nightmare.
What’s your experience with real estate scams? Share your story in the comments—it might just help someone else avoid the same fate.
Frequently Asked Questions (FAQ’s)
1. What are the most common real estate scams?
Common scams include fake titles, double-selling, fraudulent agents, scam listings, and “no downpayment” schemes.
2. How can I verify a property’s title?
Visit the Registry of Deeds to check the title’s authenticity, encumbrances, and ownership history.
3. What should I do if I’ve been scammed?
Report the incident to DHSUD if it is developer-owned sale property or local law enforcement. You may also consult a lawyer to explore legal options.
4. Are online property listings safe?
Not always. Be cautious of listings with poor-quality photos, vague descriptions, or requests for upfront payments.
5. How can I protect myself from real estate scams?
Verify the title, work with licensed professionals only, visit the property, research the developer, read contracts carefully, and avoid rushed decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Always consult with a professional before making any decisions.
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