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    Real Estate Scam Transactions

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    Arafat Domado
    This document discusses various real estate scams and provides tips to avoid them. It outlines 9 common scams: 1) pre-selling scams, 2) double sale of property, 3) bait-and-switch schemes, 4) insufficient disclosure, 5) fake real estate agents, 6) property title fraud, 7) pirated listings, 8) fake house rentals, and 9) foreclosure scams. It then recommends performing due diligence when buying property, such as researching the agent and property history. The document also lists 12 steps to check if a property title is authentic, such as verifying serial numbers, dates, and records with the Register of Deeds.

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    © All Rights Reserved
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    Real Estate Scam Transactions

    Uploaded by

    Arafat Domado
    36K views8 pages
    This document discusses various real estate scams and provides tips to avoid them. It outlines 9 common scams: 1) pre-selling scams, 2) double sale of property, 3) bait-and-switch schemes, 4) insufficient disclosure, 5) fake real estate agents, 6) property title fraud, 7) pirated listings, 8) fake house rentals, and 9) foreclosure scams. It then recommends performing due diligence when buying property, such as researching the agent and property history. The document also lists 12 steps to check if a property title is authentic, such as verifying serial numbers, dates, and records with the Register of Deeds.

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    This document discusses various real estate scams and provides tips to avoid them. It outlines 9 common scams: 1) pre-selling scams, 2) double sale of property, 3) bait-and-switch schemes, 4) insufficient disclosure, 5) fake real estate agents, 6) property title fraud, 7) pirated listings, 8) fake house rentals, and 9) foreclosure scams. It then recommends performing due diligence when buying property, such as researching the agent and property history. The document also lists 12 steps to check if a property title is authentic, such as verifying serial numbers, dates, and records with the Register of Deeds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36K views8 pages

    Real Estate Scam Transactions

    Uploaded by

    Arafat Domado
    This document discusses various real estate scams and provides tips to avoid them. It outlines 9 common scams: 1) pre-selling scams, 2) double sale of property, 3) bait-and-switch schemes, 4) insufficient disclosure, 5) fake real estate agents, 6) property title fraud, 7) pirated listings, 8) fake house rentals, and 9) foreclosure scams. It then recommends performing due diligence when buying property, such as researching the agent and property history. The document also lists 12 steps to check if a property title is authentic, such as verifying serial numbers, dates, and records with the Register of Deeds.

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    © All Rights Reserved
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    The document discusses various common real estate scams and ways to protect oneself such as performing due diligence when purchasing property.

    Some common real estate scams discussed are pre-selling scams, double sale of property, bait-and-switch schemes, insufficient disclosure, real estate agent posers, property title fraud, pirated listings, fake house rentals, and foreclosure scams.

    The document provides several steps to verify the authenticity of a land title including checking security features, comparing original and duplicate copies, checking serial numbers, dates, title number, seals, reconstitution tags, and registry records.

    REAL ESTATE SCAM TRANSACTIONS

    1. PRE-SELLING SCAM

    The developer will promise that it will be finished on a certain timeframe, but they
    will extend it time and again until the home buyer gives up on it.

    2. DOUBLE SALE OF PROPERTY

    Under this scam, the property in question is bought by two different people. This
    happens when the first buyer fails to register and transfer the title to their name,
    and then the crooked owner will sell it again. Thus, both buyers have the same
    title under their own names.

    3. BAIT-AND-SWITCH SCHEME

    These properties are either not really for sale or are handled by a different
    agent. The property is listed at an attractively low price to get people’s
    attention (the bait), but once a client inquires, the agent will claim that either
    the house has already been sold or is not available anymore. Agents will then
    offer their own listings that may even be pricier than their previous offer (the
    switch).

    4. INSUFFICIENT DISCLOSURE

    This scam happens when less-than-reputable real estate developers, real estate
    agents, or even home sellers intentionally withhold information about the property
    that may make potential clients think twice before buying.
    5. REAL ESTATE AGENT POSERS

    These fake agents are responsible for most real estate frauds in the country.
    Some would create legitimate-looking web sites and put up listings they’ve
    copied online. And once they’ve tricked you into paying a security deposit or
    initial payment, they’ll leave you high and dry. Because they use forged
    documents and contact information, running after them is more difficult.

    6. PROPERTY TITLE FRAUD

    This is done by syndicates or fake agents with their cohorts to convince you to
    buy seemingly affordable properties. These scammers would use old titles and
    copy the information to create a fake title. They would also add supporting
    documents to make it seem like all the papers are in order.

    7. PIRATED LISTINGS

    These are often found in online classified ads, which cannot be personally
    verified by site administrators. Or the agents sometimes pose as potential buyers
    and gather all pertinent information about the property. Once they have the
    details and have even taken photographs, they would claim that they are the
    homeowners’ representative. But after the buyer pays for fees and initial
    payment, the agents will suddenly be unavailable or will come up with excuses
    when contacted.

    8. FAKE HOUSE RENTALS

    There are two ways this scam is executed: using a house that is vacant because
    the owners are abroad or one that is really up for sale. The scammer will scout a
    property which has been sitting empty for a period of time – either the owners are
    not based in the country or away on a trip. The property will then be offered to an
    unsuspecting client. They will either say they are the owners or are the
    authorized representatives of the owners.

    9. FORECLOSURE SCAMS

    Scammers take advantage of properties up for foreclosure by offering it to


    unsuspecting clients – particularly OFWs – who are not able to check the
    properties personally. The scammer would either pose as the real home owner or
    an agent. They will then forge official-looking documents to present to the
    potential buyer.

    DUE DILIGENCE

    In order to protect your future home, you should always perform due diligence.
    Research is a very important part of the home buying process. You shouldn’t just
    rely on the real estate agent you’ve hired. Do know who you are dealing with and
    conduct a thorough background investigation. Find out how credible they are and
    if the property they are selling is really legitimate.
    HOW TO AVOID FAKE TITLES

    Here are a few things to keep in mind when you’re conducting your due
    diligence:

     Original Certificate of Title. The original title, which is stored in the


    Register of Deeds.
     Owner’s Duplicate Copy. An exact or carbon copy of the Original
    Certificate of Title that’s given to the owner of the property.
     Transfer Certificate of Title. When the title is to be transferred from the
    owner to the buyer, the original Owner’s Duplicate Copy should be the
    same as the Transfer Certificate of Title.
     Judicial Forms. The government forms used in conducting the transaction
    with accompanying serial numbers. There are different kinds of judicial
    forms depending on the purpose.

    Take note of these forms:

    o No. 108-D Original Certificate of Title – Owner’s Duplicate


    o No. 109-D Transfer Certificate of Title – Owner’s Duplicate
    o LRC Form 1-A Condominium Certificate of Title – -Owner’s
    Duplicate
    Easy Way:

    1. Check the Paper Material


    One of the first things you can check to immediately spot a fake title is the
    physical appearance of the paper. The Bangko Sentral ng Pilipinas (BSP)is
    solely responsible for printing the judiciary forms used in the preparation of the
    property titles. They use a special paper composed of 50% cotton and 50%
    chemical wood pulp with artificially colored silk fibers. As such there are security
    features you need to look out for in its physical appearance to ensure its
    authenticity:

     NALTDRA or LRA watermark that can be seen when held against the light.
     fibers of the paper material
     planchettes or the colored circular patterns on the title
     intaglio (technique used in printmaking) on border

    According to LRA, fake titles are usually printed in forms made of cartolina or
    material of inferior quality.

    2. Check the Copies


    First, check the initials, signatures, technical description, annotation and other
    component elements in the front and the back of the original copy are exactly the
    same as the duplicate copy. After all, they’re supposed to be carbon copies. If
    you see any difference, you better be suspicious.

    3. Check the Serial Number


    The serial number of Judicial Forms for the original copy should be printed in red
    while the duplicate copy should be in black. The serial number of the title should
    follow the serial numbers of the other titles from the particular Registries of
    Deeds from which your title came from.

    4. Check the Dates


    Likewise, a number is assigned to the judicial form found on the upper left-hand
    corner of the form. Below the number is the year when the form was printed or
    revised. If the judicial form of your title was prepared before the date when the
    form was printed or revised, then you better start worrying.

    5. Check the Title and Seal


    The duplicate copy should have the words OWNER’S DUPLICATE
    CERTIFICATE on the left side margin of the judicial form. There should also be a
    red seal—which should not blot or stain when wet—affixed on the lower left
    corner of the form. The original copy does not contain either of these feature.

    6. Check the Title Number


    Check the last two digits of the title number, which should match the page
    number of the registration book noted on the upper right corner of the title.

    7. Check the Reconstituted Tags


    A lost or destroyed title needs to be reconstituted. A reconstituted original copy of
    the title should have the letters “RO” before the title number while a reconstituted
    transfer certificate of title should then have the letters “RT” before the title
    number.
    Registry of Deeds or LRA Verification:

    8. Check the Register of Deeds


    Check if the person who signed the title was really the Register of Deeds at the
    time when the title was issued.

    9. Check the Entry Book


    Check if the entry of a related transaction in the Primary Entry Book to see if the
    title was issued on the basis of a duly registered document.

    10. Check the Enumeration Book


    Check the Enumeration Book or logbook to see which personnel was assigned to
    prepare the title on a certain date and the serial number of the judicial form used.

    11. Check the Releasing Book


    Check the Releasing Book to see if there was a title of such number that was
    released by the registry on that date.

    12. Check the History


    Lastly, track the history of the title to see if the source is genuine. You might have
    to go back all the way to the mother title, the derivate titles and other relevant
    documents.

    Following the above steps is a good way to avoid being victimized by fake land
    titles to supposedly cheap real estate properties being sold by syndicates. Most
    of the time, the offered price is generally too low vis-à-vis the current fair market
    value.

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