Unlicensed Property Sellers Leading Cause of Real Estate Complaints in the Philippines

Majority of Philippine Real Estate Complaints Now Due to Unlicensed Property Sellers

The real estate scam crackdown continues as the government remains full-force in strengthening its policies, especially when it comes to registration and licensing. Recently, the Department of Human Settlements and Urban Development reported that unlicensed brokers, unlicensed resellers, and property sellers with expired licenses are the major reasons why real estate complaints are increasing right now.

​Rising Cases of Unauthorized Property Selling

After saying that the biggest complaints right now regarding real estate selling is due to unlicensed salespersons and brokers, DHSUD reiterated that it will be harder for them to protect buyers from unregistered sellers across the country if they choose to transact with these fraudulent people. They explained that DHSUD cannot go after property dealers that are not properly registered.
Under the law, condominium and subdivision projects are required to register and get a license from DHSUD before the selling of units. In addition, this government department keeps all records of registered brokers and sellers as well as licensed projects nationwide. However, it’s another challenge to expose fake paperwork that looks legitimate for unsuspecting home buyers.

How to Avoid Illegal Property Selling

Tampered documents, fake titles, and other illegal paperwork seem to deceit a lot of home buyers in the Philippines. Bad actors do it so well, making innocent buyers fall victim to their scams. In this case, it’s crucial to seek help from the agency to validate these documents before signing the Deed of Sale. Also, you can verify the land title by visiting the Land Registration Authority yourself.
For a more rigorous campaign against scammers in real estate, DHSUD is now working closely with the NBI, DOJ, and PNP to implement a whole-of-government crackdown. Illegal real estate sellers who make transactions without following the regulations will be sanctioned by DHSUD, including registered sellers who violates the regulatory system. Cease-and-desist orders and other notices of violation will be implemented by prosecution and law-enforcement agencies.
Furthermore, the crackdown aims to achieve faster housing as DHSUD tries to make things smoother for property developers to deliver projects right to the market. For instance, the issuance of temporary License to Sell helps property developers to accomplish the requirements throughout the one-year validity of the license. Apart from that, DHSUD also secures registration for both condo and subdivision developments, so buyers can guarantee their credentials and project completion.

Final Thoughts

The goal is clear and that is for DHSUD to make legal housing faster and easier to sell. At the same time, make it difficult for scammers and unlicensed sellers to victimize prospective buyers. The key is to verify the background of the seller even before making payments. To ensure you are transacting with legal real estate brokers, visit REALS.PH for our updated listings, including subdivision lots for sale in Baguio City. Our licensed real estate agents will give you thorough guidance to ensure you are making the right investment choice.