A shocking case of real estate fraud, where a buyer lost P27 million to sellers using a fake land title, highlights a persistent danger in the Philippine property market. The incident, which began seven or eight years ago, serves as a stark warning for all potential investors.
A Seemingly Secure Investment Turns Into a Nightmare
The victim, a friend of the writer, was offered a property by a broker. The location was familiar, as he passed by it often on his way home. After expressing interest, he engaged a lawyer to perform standard due diligence. The attorney checked with the Register of Deeds and confirmed the certificate of title presented by the broker was clean. Satisfied, the buyer issued a check for the full P27 million to the couple presented as the owners.
The very next day, a casual conversation with another broker friend revealed devastating news. This friend had heard rumors of the purchase and was certain the property actually belonged to someone else. Alarmed, the buyer rushed to his bank the following morning to stop payment on the check.
The Elaborate Scheme Unravels
At the bank, an officer delivered a double blow. Not only had the check already been cashed, but the payees had also completely emptied their bank account, leaving no recourse for recovery. The buyer then hired a new lawyer to dig deeper at the Register of Deeds.
The investigation uncovered an astonishing fraud. There were two titles for the same lot. One was the original, issued decades earlier to the true owner and possessor. The second was a new title issued in the name of the selling couple. The bogus title was created when the regular Register of Deeds was abroad. The officer-in-charge allegedly issued the new title based solely on a letter-request from the couple, without canceling the old, legitimate title.
Long Road to Justice and a Warning to All
The victim pursued legal action, filing a criminal case that was later dismissed by the prosecutor's office. He then filed a civil case and won, but the decision is currently on appeal. The writer fears that by the time the ruling becomes final, the P27 million will likely be long gone, spent by the couple. As for the officer-in-charge, a warrant for his arrest was issued in a separate case, though his current status is unclear.
This story is recounted now because the National Bureau of Investigation (NBI) recently arrested five suspects in another fake title transaction, proving such scams are ongoing. This case underscores the critical importance of extreme caution. Beyond standard due diligence, buyers must be vigilant. The key takeaways are:
- Conduct exhaustive, independent verification of property ownership.
- Be wary of deals that seem too good to be true.
- Understand that a "clean" title check might not reveal a duplicate, fraudulently issued title.
The ultimate lesson, as old as commerce itself, rings truer than ever in the complex Philippine real estate landscape: caveat emptor – let the buyer beware.
