In the booming Philippine property market, the relationship between a real estate agent and a client is built on trust. However, when an agent provides false information or withholds material facts—whether through negligence or deliberate intent—the financial and legal repercussions for the buyer can be devastating.

Under Philippine law, victims of misrepresentation have several avenues for redress, ranging from administrative sanctions to civil damages and criminal prosecution.

1. Statutory Basis: The RESA Law (R.A. 9646)

The primary legislation governing the conduct of real estate service practitioners is Republic Act No. 9646, or the Real Estate Service Act of the Philippines (RESA).

Real estate agents and brokers are mandated to adhere to a strict Code of Ethics and Responsibilities. Misrepresentation constitutes a violation of these professional standards.

Administrative Remedies

If an agent provides misinformation, the aggrieved party can file a verified complaint with the Professional Regulation Commission (PRC) and the Professional Regulatory Board of Real Estate Service (PRBRES).

Suspension or Revocation of License: The PRC has the power to revoke the certificate of registration and professional identification card of a broker or salesperson found guilty of unethical conduct or malpractice.
Fines: Penalties for practicing without a license or violating the RESA law include substantial fines (ranging from ₱100,000 to ₱200,000) and potential imprisonment.

2. Civil Remedies under the Civil Code

The Civil Code of the Philippines provides the substantive basis for seeking damages or voiding a contract tainted by misrepresentation.

Annulment of Contract (Article 1390)

If the misrepresentation was serious enough to determine the consent of the buyer, the contract is considered voidable.

Causal Fraud (Dolo Causante): If the agent used insidious words or machinations to induce the buyer into a contract they otherwise would not have signed, the buyer may seek to annul the sale.
Restitution: Upon annulment, the parties must restore to each other the things which were the subject matter of the contract, including the price with interest.

Action for Damages (Article 1170)

Even if the buyer chooses not to annul the contract, they may sue for damages. Under the Civil Code, those who are guilty of fraud, negligence, or delay in the performance of their obligations are liable for damages.

Actual/Compensatory Damages: To recover the actual financial loss suffered.
Moral Damages: If the misrepresentation was done in bad faith or caused mental anguish.
Exemplary Damages: Imposed by way of example or correction for the public good.

3. Consumer Protection: The Consumer Act (R.A. 7394)

Real estate transactions are often covered by the Consumer Act of the Philippines, which protects against "deceptive, unfair, and unconscionable sales acts or practices."

A representation is deceptive if it misleads the consumer regarding the nature, quality, or characteristics of the property. The Department of Trade and Industry (DTI) oversees these complaints, and remedies include:

Cease and desist orders.
Restitution or replacement.
Administrative fines.

4. Jurisdiction of the DHSUD

For cases involving developers and their agents (e.g., buying a condo or subdivision lot "off-plan"), the Department of Human Settlements and Urban Development (DHSUD)—formerly the HLURB—has quasi-judicial jurisdiction.

Buyers can file complaints for:

Misleading Advertisements: If the amenities promised in the brochure (e.g., a swimming pool or park) do not exist.
Non-development: If the project is not completed according to the approved plans.
Refunds: Under Presidential Decree No. 957, if the developer/agent fails to develop the project, the buyer may stop payments and demand a 100% refund of the total amount paid (including amortization interests but excluding delinquency interests).

5. Criminal Liability: Estafa

In extreme cases where the misrepresentation involves "false pretenses or fraudulent acts" executed prior to or simultaneous with the commission of the fraud, the agent may be charged with Estafa under Article 315 of the Revised Penal Code.

This is applicable if the agent:

Used a fictitious name or falsely pretended to possess power/influence.
Deceived the buyer into surrendering money based on false representations about the property's title, location, or condition.

Summary of Remedies

Legal Basis	Primary Remedy	Authority
R.A. 9646 (RESA)	License Revocation / Suspension	PRC / PRBRES
Civil Code	Annulment of Sale / Damages	Regional Trial Court
P.D. 957	Full Refund / Cease & Desist	DHSUD
R.A. 7394	Fines / Administrative Sanctions	DTI
Revised Penal Code	Imprisonment (Estafa)	Criminal Courts

Essential Evidence for a Claim

To successfully pursue these remedies, the buyer should preserve:

All promotional materials (brochures, flyers, social media posts).
Written correspondences (emails, Viber/WhatsApp messages).
The License to Sell (LTS) number of the project.
The agent's PRC accreditation details.
Proof of payments and signed "Reservation Agreements."