THEN THE CALL CAME

Once upon a time, a broker leased out a condo unit. The process was smooth. Papers signed, unit turned over, everything in place.

Then the call came.

It was the building administration. They had flagged the tenant after finding online records linking him to estafa and fraud cases. Naturally, they were concerned. No building wants that kind of reputation inside its premises.

The broker checked for himself. A quick search showed the same cases.

So he confronted the tenant.

The tenant didn’t deny it. Instead, he explained that the cases stemmed from a dispute with a former business associate. He then produced court documents showing that the cases had already been dismissed.

At that point, the situation shifted. What initially looked like a clear red flag became more nuanced.

Lessons:

1. Due diligence has limits.

In the Philippines, there’s no centralized, easily accessible database for verifying a person’s legal history. You won’t always get the full picture. But a simple Google search is still a useful first filter. It won’t catch everything, but it can prevent surprises like this.

2. Don’t jump to conclusions.

A case appearing online does not automatically mean guilt. Always verify. Always hear both sides. Allegations, dismissed cases, and convictions are very different things.

3. Protect the landlord through contract design.

If this becomes a concern, address it upfront in the lease. You can include a clause that allows termination if the tenant:

is convicted of a crime, or

engages in conduct that materially affects the safety, security, or reputation of the property

Be careful with wording. “Notoriety” alone can be vague and risky. Anchor it on objective triggers like conviction or verified misconduct to avoid abuse and disputes.

Bottom line:

In leasing, you won’t always have perfect information. What you can control is how you verify, how you respond, and how well your contract protects your client when uncertainty shows up.