Yuta Data Data – How to Check for Possible Scams and Red Flags

Ever heard of yuta data data? There are legit offers like this, but there are also scams. The latter you should watch out for!

Owning a house or buying lot only with plan of building a home in the future are two of the ultimate dreams of Filipinos. And why not? The family is very important to us and what better gift to give our family than our own home, right?

This is why there are lots of house and lot agents and real estate marketers in the country, as well as there is a proliferation of Facebook pages encouraging us to buy real properties from this developer, this real estate agent, etc. You may have even come across offers that says “yuta data data”.

Yuta Data Data

What is Yuta Data Data? This is a Bisaya term that can be loosely translated in English as “land or lot for sale on installment basis”.

Yuta = Land

Data Data = installment

The prices for yuta data data are generally cheap compared to prevailing market rate per sqm in the subject area. To entice buyers, the sales agent will use words such as “this is still in pre-selling stage that is why it is cheap”, “affordable monthly amortization”, “this is an investment”, “with just 1 ID you can get priority”, “no need for bank loan or pag-ibig loan”, etc.

BUT PLEASE BEWARE. Watch out for red flags!

Know what you are investing in.

What are the possible issues that buyers should watch out for when it comes to buying or investing in yuta data data?

Most of times yuta data data is offered because the mother lot is still unconverted for residential use. That is why per square meter lot price is cheap and enticing, because of the big risk involve.

You need to know if the subdivision lot is still categorized as “agricultural lot”. Ask the agent the lot status if it is already approved for residential use or not. Or better yet, ask the developer directly.

Why ask? Because if the lot category is still under ‘agricultural” it will take about 4 to 5 years, sometimes longer to get the Department of Agriculture and DENR approval for the land conversion from agricultural to residential.

The worst thing that could happen is that after a long waiting time, it will turn out that the government will not allow the lot you have invested in and risked-on to be converted to residential! If this happens, the result will be = Goodbye money! Your lot investment will be gone, and pahirapan ang pagkuha ng refund from the developer. Ang ibang buyers tinakasan ng kanilang developers kasi modus pala nila ang ganito.

Pag agricultural at hindi residential land ang category ng lupa, installation of electricity, drainage system, water are not allowed. KAYA DO DUE DILIGENCE BEFORE YOU BUY or INVEST IN REAL PROPERTIES.

WATCH OUT FOR REAL ESTATE BUYING RED FLAGS

Protect your hard-earned money, make sure that you will put your money in good investment. How? There should be little to no red flag.

Buying a lot even on installment basis will cost you lots of money in the long run. Even a P5,000 a month amortization will amount to P180,000 after 3 years of diligent paying! How much more if you are paying higher monthly installment or have already paid for a longer period of time!

It doesn’t matter if you are buying 50 sqm lots, or 100 sqms, or 200 sqms or bigger portion, what matter is that you will not take unnecessary risk with your fund.

If you are buying LOT ONLY in a subdivision that is on pre-selling stage, meaning the subdivision is still being develop, you must ask these questions to the realtor or agent:

1. Who is the developer?

Once you know the land developer, you need to do research. Make it your business to know what other properties or projects this developer has undertaken. Does the developer have a good track record with respect to previous work? Meaning on past projects, did the developer deliver the property on time, as promised during the pre-selling stage? Did the developer complete the project on schedule? Are there issues with the other project handled in the past by this developer?

For those buying house and lot, town houses, condo units, etc, please research about the past work handled by the developer. Try to find out the sentiments of home owners of past projects. Are they satisfied with the houses turn-over to them materials-used wise, integrity of structure? Did they get the land title or absolute deed of sale on time? Is there problem with water connection, electricity? Etc.

Trust only the developer with good track record of project delivery and fulfillment of all promises to respective homeowners.

There are some fly by night developers who uses the yuta data data model as a modus operandi.

2. Check if the developer is registered in SEC? Most developers are corporations and they should be registered in SEC. iSensey checked some of the developers offering yuta data data in Cebu, Mactan, Cagayan de Oro, and it turns out some have no SEC registration.

We will be publishing a guide on how to check SEC registration status of a company online, so our readers can check by themselves if a corporation is duly registered with the Securities and Exchange Commission.

*If not registered in SEC, ask the agent if developer is a partnership or solo proprietorship, if so, ask the DTI registered name. You can then verify online in DTI website to confirm if the trade or business name is truly legit and duly registered in DTI.

Here is how to online check DTI name if registered or not. If registered, good. If not registered, red flag.

3. WHAT IS THE HLURB License To Sell number for the offered lots or housing units?

This is very important. Do not ignore this please. All subdivision lots for sale, townhouses, house/lot for sale even in pre-selling stage requires a HLURB license to sell if the developer wants to start offering and selling the property to buyers. Once you get the LTS number, verify it with HLURB.

It is NOT TRUE that a license to sell is not needed because a subdivision is still under development.

It is NOT TRUE that a license to sell is not needed because the property is still in preselling stage.

It is NOT TRUE that the developer will only get the HLURB license to sell after site development.

4. When can developer and sales agents be allowed to offer subdivision lots or houses to buyers and get monthly fees or amortization?

Only after they get the LTS or License to Sell. If they don’t have that, they can’t get any type of fees from clients. They are not allowed by law to get down payment, reservation fee, monthly amortization, etc.

A developer / realtor can’t start pre-selling and getting fees without the HLURB approval. But they can accept Letter of Intent from buyers so buyer can be on the priority list, and be among the first one to be contacted once the LTS is issued to the developer. But again there should be no actual money exchange involve pag wala pang license to sell ang developer.

EST TIME from PRESELLING to COMPLETION STAGE

Based on our consultation with a respective realtor, he said that high rise buildings generally takes about 4 to 5 years to complete the project from pre-selling stage. House and Lot generally takes about 3 years pre-selling to completion stage. Lot only or “yuta” takes less time to complete the development, about 1 to 2 years IF ALL PAPERS ARE COMPLETE and there are no issues with the property.

If the yuta data data that is being offered to you now by a real estate broker or agent, or one that you have seen on Facebook, says turn-over of lot/property will be more than 3 years, dig deeper, investigate. Ask ‘bakit ang tagal?‘.

As already mentioned, there are genuine offers of lots or ‘house and lot’ for sale, but you have to be aware that there are real property scams circulating now too. Don’t fall prey to such schemes. Before you part with any money, research and practice due diligence.

Invest only in subdivisions and lot offers by well-reputed developers with a strong track record of completing projects on time and delivering on all its pre-selling commitments.

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