Agents victimizing OCWs

QUESTION: Sir John, I was able to buy a House last Aug 2009 ang finished paying last April 2010 however nawawala daw ung copy nung title. I told them to cancel and refund of ALL my payments. They agreed but sabi they have to deduct the commission they gave to the broker. Is that fair?

ANSWER: No, it is not. They have to pay ALL, until the last centavo. The broker's commission is PART of the purchase price.

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ORIGINAL QUESTION: Sir John, Can you help with the question below?

I was able to purchase a House last August 2009. I have already finished the equity payments last April 2010 however I still haven’t received my take out loan. The developer told me that my loan application is already approved but they are still waiting for the annotated copy of the title in Registry of Deeds before they could release it. Until now, wala p din. Nawawala daw ung copy nung title and wala n sila magagawa but to wait.I told them to cancel my application and refund of ALL my payments. They agreed but sabi they have to deduct the commission they gave to the broker.

Is that fair? Hindi naman natuloy ang transaction so dapat wla commission and in good faith naman ako.

ANSWER AND DISCUSSION: No, it is not. They have to pay ALL, until the last centavo. The broker's commission is PART of the purchase price.

From her story, it appears na walang due diligence before the transaction. It is also possible that the title or property really does not exist. This anomaly frequently hapens in Philippines, victimizing "ignorant" OCWs who have no way to inspect the property, the seller, the paperwork.

That tragedy is very COMMON, it always happens when buyers go directly to sellers/developers without a representation of an Exclusive Buyer Agent. Kung mag-sama-sama kayo lahat na consumers na na-hohold-up harap-harapan ng conspiracy ng developers and colorum brokers/agents, sa dami ninyo eh pwede na kayo mag EDSA 4.

Always be represented by a Broker (Exclusive Buyer Agent type) when you are a BUYER. You dont know what an Exclusive Buyer Agent is? Search it in the Internet and find it out yourself. You pay the same price with or without an EBA. Without an EBA, you are paying a commission in full to an Agent/Broker who serves the interest (with 100% loyalty) of the Seller. With an EBA, you are paying half of the commission to your EBA and half to the seller's Broker/Agent. Without an EBA you are always defeated in all aspect of the transaction from start to finish.

In my operation as EBA, the commission paid to me stays in an Escrow Account -- I can only get/consume it after the client gets hold of the new crispy title in his/her name. At least if something goes wrong, the client gets a full refund of the commission QUICKLY. If the purchase is cash, I also prefer that the whole cash stays in an Escrow -- the seller can only get it after the due diligence process is completed.

I believe a broker should be ashamed to enjoy any centavo of the commission from a client pag hindi pa completely finished ang service niya para sa client.

Kahit abutin ng ilang taon naka-tiwangwang ang commission sa escrow, it should stay untouched until the transaction is completed and the client is happy.

Government is unreliable? These scambags can even defraud Pag-Ibig Fund of government with 7 Billion Fraud. I say government does not exist. Real Estate Service in Philippines is similar way back 300 years ago!

NO Transaction No Commission. Ang problema nakuha na ng seller/agent lahat na pera. Problema na ngayon yan sa pag-refund.

In short, as a buyer, as a SMART BUYER, either you go in ALONE or you be smart with a professional Exclusive Buyer Agent.

But be warned also with EBAs. They are very FEW and very "choosy" when it comes to accepting clients/buyers. Their choosy rate is like 1:100, meaning out of the 100 clients who wants their service they will only serve 1 at a time. EBAs only accept SMART Buyers.