RAP'S HORROR STORY

My colleague at RE/MAX Capital, Rap Santos, recently shared a real estate horror story that deserves more attention.

In a deal he brokered for a property in Alabang Hills, the seller discovered two things:

1.⁠ ⁠The CGT and DST from the seller’s original acquisition weren’t paid.

2.⁠ ⁠The CAR was fake.

Yes, fake. You can catch the full reel on his IG: @rapsantosrealty.

Rap’s point was clear: you need trustworthy people handling your title transfers. I fully agree. But I want to zoom out a bit and ask: how could this have happened in the first place? How did the title even get transferred if the required taxes were never paid?

Let’s break this down. Let’s say the current seller is “B,” and the person B bought the property from is “A.”

My hunch? This all started with a “net-priced” sale. That’s when the B agreed to shoulder all taxes and fees on top of the purchase price. Seller A just wanted to walk away with a clean amount.

Now here’s the twist: instead of settling taxes through the proper channels, B may have handed the money to a “fixer”, likely in cash, and trusted them to handle the paperwork. Instead, the taxes were never paid. A fake CAR was produced. The title somehow got transferred—perhaps through forged documents or connections.

Why do I think this is what happened?

Because if A had paid the taxes, they would’ve insisted on receipts—it’s their money, after all. But in a net deal, A wouldn’t care. It was B’s problem. And when Rap discovered the missing payments, B didn’t go after A, which tells you something.

Of course, I could be wrong. But you can’t say it’s implausible. Stories like this are why I warn clients—net pricing is risky.

So what can buyers and sellers do?

1.⁠ ⁠Request certified copies (CC) of the CAR and the tax payments from the BIR as soon as the transfer is completed.

(This is similar to what banks do for bank financed transactions. They require the CC of the new title along with the original title for the release of the seller's proceeds.)

2.⁠ ⁠Don’t rely on the person who processed the transfer to hand these over. Get an independent third party.

In real estate, shortcuts may cost you more than you save.