The housing market offers great opportunities for buyers, sellers, and renters—but it also attracts scammers looking to take advantage of unsuspecting individuals.
Whether you’re purchasing a home, renting an apartment, or investing in property, knowing how to identify housing scam can save you from financial loss and stress. Here’s how to spot a scam in the housing market and protect yourself from fraud.
1. Unrealistically Low Prices
How It Works:
If a property is listed at a price significantly lower than comparable homes in the area, it could be a housing scam. Fraudsters lure buyers or renters with too-good-to-be-true deals to collect deposits or fees before disappearing.
How to Avoid It:
- Research market prices in your target area.
- Compare listings on multiple platforms to check for discrepancies.
- Be wary of sellers or landlords pressuring you to pay quickly.
2. Lack of Proper Documentation
How It Works:
Scammers often avoid providing official documents, such as property titles, ownership verification, or lease agreements. They may claim the paperwork is “in process” or ask for payments before showing legitimate documentation.
How to Avoid It:
- Always request and verify the Certificate of Title (for purchases) or lease agreement (for rentals).
- Check the property’s ownership with the Registry of Deeds in the Philippines.
- Avoid transactions where the seller refuses to provide official documents.
3. Fake Property Listings
How It Works:
Scammers copy legitimate property listings and repost them with their contact details. When interested buyers or renters inquire, they request deposits or fees without showing the actual property.
How to Avoid It:
- Cross-check listings on different websites to ensure legitimacy.
- Verify the real estate agent’s license through the Professional Regulation Commission (PRC) website.
- Never pay before seeing the property in person.
4. High-Pressure Tactics
How It Works:
Fraudsters create urgency, claiming that the property has multiple interested buyers or renters. They push you to make a decision quickly, often demanding a deposit to “secure” the deal.
How to Avoid It:
- Take your time to review all details before committing.
- Consult with a licensed real estate professional before making payments.
- If a deal feels rushed, step back and investigate further.
5. No In-Person Property Viewing
How It Works:
Scammers make excuses for why you can’t visit the property, such as being “out of town” or handling everything online. They request payments upfront without allowing a proper inspection.
How to Avoid It:
- Insist on an in-person or virtual tour before making any payments.
- If the seller refuses to meet or show the property, walk away.
- Bring a trusted real estate agent or property inspector to verify the home’s condition.
6. Requests for Cash Payments or Untraceable Transfers
How It Works:
Fraudsters prefer payments via cash, cryptocurrency, or money transfers, making it harder to trace or recover funds if something goes wrong.
How to Avoid It:
- Use secure and traceable payment methods like bank transfers or escrow services.
- Avoid cash payments, especially without a written receipt.
- If paying a deposit, ensure it goes to a verified bank account under the property owner’s name.
7. Unlicensed Real Estate Agents or Brokers
How It Works:
Scammers may pose as real estate agents or brokers without proper accreditation. They collect commissions or deposits but disappear after the transaction.
How to Avoid It:
- Verify the agent’s license with the PRC or Housing and Land Use Regulatory Board (HLURB) in the Philippines.
- Check if the real estate agency has a physical office and customer reviews.
- Work only with licensed professionals to avoid fraudulent transactions.
Before working with a real estate agent, verify their credentials through the Professional Regulation Commission (PRC) website.
8. Title Fraud (Double Sale or Fake Titles)
How It Works:
Scammers may sell a property to multiple buyers or use fake land titles to deceive buyers. This results in legal disputes and financial losses.
How to Avoid It:
- Verify the land title at the Registry of Deeds.
- Request a certified true copy of the title to check for discrepancies.
- Hire a real estate lawyer to ensure all documents are valid.
Ensure a property’s legitimacy by checking its title through the Registry of Deeds.
9. Fake Rental Agents or Landlords
How It Works:
Scammers pretend to be landlords or property managers, collecting deposits or rent payments before disappearing. Some even break into vacant properties to pose as owners.
How to Avoid It:
- Verify the landlord’s identity by requesting ownership proof.
- Avoid landlords who refuse to sign formal lease agreements.
- Pay rent through secure methods, such as direct deposit to the verified landlord’s bank account.
How to Protect Yourself from Housing Scams
- Do Your Research: Always verify property details, ownership, and agent credentials before making payments.
- Inspect Before You Invest: Visit the property in person or conduct a video tour.
- Use Legal Assistance: Consult a real estate lawyer to review contracts and documents.
- Avoid High-Pressure Sales: If someone rushes you into paying, it’s a red flag.
- Secure Transactions: Use traceable payment methods and keep receipts.
What to Do If You’ve Been Scammed
If you suspect a housing scam, take the following steps:
- Report the scam to the National Bureau of Investigation (NBI) Cybercrime Division or the local Philippine National Police (PNP).
- Contact your bank to attempt a chargeback or freeze any unauthorized transactions.
- Warn others by posting reviews or reporting the fraudulent listing online.
Conclusion
The housing market is full of opportunities, but it also attracts scammers looking to exploit unsuspecting buyers and renters. By staying vigilant, verifying property details, and working with licensed professionals, you can protect yourself from fraud and make a safe real estate investment.
Looking for verified listings and trusted real estate advice? Hanap Bahay is here to help! Explore safe and legitimate housing options today.
Before buying or renting a home, be sure to check out Hanap Bahay’s safe home-buying and renting guides and our articles on verifying property ownership for essential tips.
