Keeping Yourself Away from Real Estate Scams

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When talking about the Real Estate Industry, we’re also talking about a huge sum of money. And by ‘huge’ we mean millions or even billions of pesos.  So, for businessmen who engage their capital and investments here, falling into a scam is the most feared nightmare because it is a sure terrible disaster for your company.

Unfortunately, scams are part of the reality in the Philippines and all over the world including in real estate. Even though there are laws which seek to protect and prevent scams and fraud from happening, sometimes it is still inevitable.  So it is also important especially for business owners to be aware and knowledgeable about the perils that they are prone to when they choose to dive into real estate.

So in this article, we will discuss to further understand and hopefully help people to avoid being victimized by this crime which can surely destroy lives.

Well, there are different modus of scam. Here are some:

Purchasing a pre-selling property

This is usually considered as a wise move for many investors however, some are unaware of the risks and the danger that they are unconsciously getting closer to fraud. Developers which use this type of scam usually cause long delays in turnover and inferior quality homes. Worst comes to worst, there is a tendency for the project to be stopped in the middle of its construction, leaving the buyers without their money and the property they paid for.

Unauthorised selling

This is one of the most common kinds of scamming strategy but still as years go by, more and more are still falling into it. Most of the time, buyers get excited or some are just not knowledgeable enough that’s why they fall into rhetoric leading them into being indecisive and do panic buy. Discovering later on that what they have bought does not bear authorization to the legitimate owner of the property.

Ghost properties

Believe it or not, some people have the tendency to be foolish or desperate enough to fall into this trick. Although this could be the most avoidable type of scam, some are still being victimized. It is either because of an expert perpetrator or an accomplice of the crime which is known to them that is why they become unsuspecting. This is often done through informal transactions with falsified documents or even without any document at all. It may be funny but in reality, some are using this and some are being milked of about millions of money from this.

So, now that you know about the things you need to be aware of, here are some reminders for you to avoid being scammed:

  • Keep everything recorded. Always check for complete, legitimate documents and transaction papers. Do not hasten the transaction and remember that when we’re talking about millions of money that you have worked hard for, then it is better to be slowly but surely.

  • Also, make sure that before paying anything, do check if the title is clean, free from other claims and make sure that everything will be original and no problem will arise.

  • Look for a reputable and trustworthy developer. It is not bad to do background check regarding their profile and their previous transactions. After all, your money is at stake. It will be your loss in the end if things get worse.

  • Consult a lawyer and other necessary expert help for the process of the transaction.

Again; check, inspect, make sure, consult insist and if necessary, avoid. Keep these words in mind because these things will always keep your money and property sure and safe.

District 23