In the Philippines, pasalo is a common real-estate practice but not a formally defined legal term. In everyday use, it refers to a transfer by which a person who is still paying for a property “passes on” the property, together with the payment obligation, to another person. It is often seen in condominium units, subdivision lots, house-and-lot packages, and properties bought on installment from a developer, Pag-IBIG, or sometimes a bank after financing has begun.

Because pasalo is widely practiced, many people assume it is simple. Legally, it is not. A pasalo deal may be valid between the parties as a private arrangement, but that does not automatically mean the developer, bank, Pag-IBIG, or the Registry of Deeds is bound to recognize it. That gap between private agreement and enforceable transfer is where most of the risk lies.

This article explains the legal nature of pasalo in the Philippine setting, the buyer’s rights, the seller’s continuing liabilities, the effect of financing and title status, the major dangers, and the practical safeguards that matter.

I. What a Pasalo Really Is in Legal Terms

A pasalo is usually not one single legal transaction. It is often a combination of several acts, such as:

a sale of rights or assignment of rights;
an agreement for reimbursement of prior payments made by the original buyer;
an undertaking by the new buyer to continue installment payments;
sometimes a special power of attorney;
eventually, if allowed and completed, a deed of absolute sale or deed of assignment recognized by the relevant institution.

So when people say “I bought a property through pasalo,” what may actually have happened is one of the following:

1. Sale or assignment of contractual rights

The original buyer has a contract to sell, reservation agreement, or installment contract with a developer. The original buyer assigns his or her rights under that contract to another person.

2. Private takeover of installment payments

The new buyer simply pays the original buyer and continues the monthly installments, but no formal substitution is approved by the developer or lender.

3. Sale of an equitable or beneficial interest

The original buyer may not yet own the property fully, but may have an existing right or interest arising from payments already made. What is transferred is that interest, not yet full ownership.

4. Assumption of mortgage or loan-related burden

Where financing exists, the parties sometimes treat the transaction as though the new buyer is assuming the seller’s mortgage. But unless the creditor agrees, the original debtor usually remains liable.

This distinction is critical: in many pasalo situations, what is transferred first is not legal title, but rights under a contract.

II. Why Pasalo Is Popular

It is popular because it can be cheaper, faster, and more flexible than a regular sale. Common reasons include:

the original buyer can no longer continue payments;
the seller wants to recover payments already made;
the buyer wants a lower cash-out than a standard resale;
the property value has appreciated and both sides want a practical transfer;
the title is not yet available, but the parties do not want to wait.

These business reasons are understandable. The legal dangers begin when speed replaces documentation.

III. The First Legal Question: Does the Seller Actually Own the Property?

This is the most important starting point.

A person may be “selling” a property through pasalo even if:

the title is still in the developer’s name;
the seller only has a contract to sell;
the seller is still paying installments and has not completed payment;
the property is mortgaged to a bank;
the property is under Pag-IBIG financing;
there are unpaid association dues, taxes, penalties, or arrears.

In many cases, the seller does not yet have full ownership in the sense of transferable registered title. The seller may only have contractual rights, possessory rights, or a future right to convey the property upon full payment and compliance with contractual conditions.

That means the buyer in a pasalo transaction must first identify exactly what is being sold:

full ownership;
rights under a contract;
possession only;
expected future ownership;
or merely the chance to continue payment.

A buyer who misunderstands this may think he bought land, when in law he only acquired a private claim against the seller.

IV. Contract to Sell vs. Deed of Sale: Why the Difference Matters

A lot of pasalo transactions involve a contract to sell, not yet a perfected transfer of ownership.

In a contract to sell

Ownership is generally retained by the seller or developer until the buyer fully pays and meets the conditions. The buyer has a right to complete the contract, but title does not yet pass.

In a deed of absolute sale

Ownership is intended to transfer, subject to registration requirements and other legal effects.

If the original buyer is still under a contract to sell with the developer, then the original buyer often cannot freely transfer full ownership because full ownership has not yet vested. At most, the original buyer may assign his contractual rights, subject to the developer’s consent if the contract requires it.

This is where many informal pasalo arrangements fail. The parties execute a private “deed of sale,” but the underlying contract with the developer does not allow transfer without prior written approval. In that case, the private document may still bind the parties to each other, but may not be effective against the developer.

V. Assignment of Rights: The Core Document in Many Pasalo Deals

The most legally accurate document in many pasalo transactions is not a deed of absolute sale but a deed of assignment or assignment of rights.

This document typically states that:

the original buyer transfers all rights and interests under the contract;
the new buyer assumes the obligation to continue the installments;
the new buyer reimburses the seller for payments already made, sometimes plus a premium;
the parties agree who will handle taxes, fees, penalties, and transfer charges.

But even a properly written deed of assignment has a limit: it cannot prejudice the rights of a third party, such as the developer or bank, if the original contract prohibits assignment without consent.

So the buyer must ask not only, “Do we have a notarized assignment?” but also, “Was the transfer approved by the party whose consent is required?”

VI. Consent of the Developer, Bank, or Pag-IBIG

This is the issue that decides whether the pasalo is merely private or truly enforceable in practice.

A. If the property is still with a developer

The contract may expressly prohibit sale, assignment, or transfer without the developer’s prior written consent. Some contracts allow it subject to transfer fees, documentary requirements, updated payments, and credit investigation of the new buyer.

If the assignment is not approved, the developer may continue to recognize only the original buyer. The consequence is severe:

official receipts remain under the seller’s name;
statements of account go to the seller;
turnover and title processing may still be in the seller’s name;
the buyer may have no direct standing with the developer;
the developer may treat the transaction as unauthorized.

B. If the property is bank-financed

If there is a mortgage and a housing loan, the bank’s consent is usually needed for any valid substitution of debtor. Without bank approval:

the original borrower remains liable;
the buyer may pay installments in practice but does not become the recognized borrower;
default may still be charged against the original borrower;
the bank may foreclose if the loan is not paid, regardless of the private arrangement.

C. If the property is under Pag-IBIG financing

A private pasalo is not the same as an approved transfer recognized by Pag-IBIG. The rules of the financing institution matter. Without proper approval and substitution, the original member-borrower may remain the liable party.

The governing principle is simple: a debtor cannot, by private agreement alone, force a creditor to accept a new debtor. Creditor consent matters.

VII. Rights of the Buyer in a Pasalo Arrangement

A buyer does have rights, but their strength depends on the structure and documentation of the transaction.

1. Right to enforce the private agreement against the seller

If there is a valid contract between buyer and seller, the buyer may demand compliance based on contract law. This can include:

delivery of possession if promised;
turnover of documents;
execution of further instruments;
reimbursement or damages if the seller breaches;
refund if the seller misrepresented the status of the property.

This is the buyer’s most immediate right.

2. Right to whatever rights the seller actually had and validly transferred

The buyer cannot receive more rights than the seller legally possessed. But the buyer may step into the seller’s shoes to the extent the transfer is valid.

If the seller had assignable rights under a contract to sell, those rights may pass to the buyer, subject to contract terms and third-party consent requirements.

3. Right to possession, if included in the transaction

If the agreement includes turnover of the unit, house, or lot, and possession is legally available, the buyer may take possession. But possession is not the same as ownership.

A buyer living in the property should not assume that mere occupation cures title defects.

4. Right to seek damages for fraud or bad faith

If the seller conceals material facts such as arrears, prior pasalo, existing mortgage, litigation, fake receipts, unpaid taxes, or forged authority, the buyer may pursue civil remedies and, in some cases, criminal complaints depending on the facts.

5. Right to specific performance or rescission

Depending on the breach, the buyer may sue to compel the seller to perform, or seek rescission and return of amounts paid, with damages where justified.

6. Right to protection as a buyer of subdivision lot or condominium unit, where applicable

When the transaction concerns subdivision lots or condominium units, the broader legal environment includes buyer-protection laws and regulatory frameworks. But those protections often apply most directly to the developer-buyer relationship, not automatically to every informal private pasalo between individuals. The buyer should not assume that every protection against developers cleanly extends to the informal assignee.

VIII. Risks to the Buyer

This is where pasalo becomes dangerous.

1. The seller may not have a transferable right

The seller may still be disqualified from assignment under the original contract. Or the seller may be in default, which means the rights are already impaired or vulnerable to cancellation.

2. The property may already be cancelled, delinquent, mortgaged, or in dispute

The buyer might discover too late that:

installments are overdue;
penalties are heavy;
the contract has been rescinded or is already subject to cancellation;
the property is mortgaged;
the seller has a pending case;
another person is claiming rights;
there is a prior sale or prior pasalo.

3. The buyer may pay but still have no recognized status with the developer or bank

This is one of the worst scenarios. The buyer faithfully pays the monthly installments, but the account remains legally under the seller’s name. If relations sour, the seller may interfere, disappear, or deny the arrangement.

4. Double sale or multiple assignments

An unscrupulous seller may execute more than one pasalo or assignment over the same property. Because many pasalo transactions occur before title transfer or registration, priority disputes become ugly and fact-intensive.

5. No title transfer despite full payment to seller

The buyer may fully reimburse the seller, but if the original account remains defective, unapproved, or unpaid with the developer or lender, title may never be transferred.

6. Defects in the SPA or authority

Sometimes the seller is abroad and an agent signs. Sometimes the registered owner is married and only one spouse signs. Sometimes one heir sells inherited property without the others. Authority problems can defeat the transaction.

7. Hidden charges

The buyer may discover unpaid obligations such as:

transfer fees imposed by the developer;
unpaid real property tax;
capital gains tax or other tax allocation disputes;
documentary stamp tax;
registration fees;
notarization and processing costs;
condominium dues or homeowners’ association arrears;
utility arrears;
penalties and interest on missed installments.

8. Possession problems

A buyer may discover that the property is occupied by tenants, relatives, informal occupants, or the seller himself. A private agreement does not guarantee peaceful turnover.

9. Defective or fake documents

Forged IDs, fake titles, fake tax declarations, altered receipts, fabricated certificates of full payment, and fake special powers of attorney are recurring real-estate fraud risks.

10. Death, incapacity, or disappearance of the seller

If the account and title remain under the seller’s name and the seller dies, becomes incapacitated, or cannot be located, the buyer may face a far more difficult process involving heirs and estate issues.

IX. Risks to the Seller

The seller is not safe either.

If the pasalo is not formally recognized by the developer, bank, or Pag-IBIG, the seller may remain:

the party liable on the loan;
the party responsible for arrears;
the person facing collection or foreclosure;
the taxpayer of record;
the official account holder;
the person whose credit standing is affected.

This leads to a common misconception: the seller thinks, “Naipasa ko na.” Legally, not always.

A private contract may entitle the seller to reimbursement from the buyer, but it does not automatically release the seller from obligations to third parties. Release from liability usually requires consent from the creditor or recognition by the institution concerned.

X. The Importance of Marital Property Rules

In the Philippines, the seller’s marital status matters greatly.

If the property is conjugal, community property, or otherwise falls within the property regime of spouses, the signature and consent of both spouses may be necessary. A sale or encumbrance by only one spouse may be void or unenforceable depending on the circumstances.

Even if the contract or title appears in one spouse’s name, a prudent buyer must examine whether spousal consent is required. This is especially true for family homes, residential properties acquired during marriage, and properties paid for with community or conjugal funds.

A buyer who ignores the non-signing spouse risks future nullification or litigation.

XI. Inherited Property and Rights of Heirs

A pasalo arrangement involving inherited property is especially dangerous if estate settlement has not been completed.

Where the registered owner has died and the property has not been properly settled among the heirs, one heir usually cannot unilaterally transfer the entire property unless authorized by the others or unless only his undivided share is being transferred.

A buyer dealing with “heirs” must check:

whether there is an extrajudicial settlement or court settlement;
whether all heirs signed;
whether estate taxes and related requirements were addressed;
whether the title has been transferred to the heirs.

A buyer who transacts with only one heir may acquire, at best, only whatever share that heir could legally transfer.

XII. Mortgaged Property: A Pasalo Is Not a Magic Escape

Where the property is mortgaged, the mortgage follows the property. A buyer must distinguish:

buying the property subject to a mortgage;
paying off the mortgage;
assuming loan payments privately;
being officially substituted as borrower.

Without creditor consent, assumption of mortgage may bind the buyer and seller between themselves, but not the bank. The bank can still enforce the mortgage according to the loan documents.

A practical reality in the Philippines is that some people do pasalo by simply continuing monthly loan payments. That may work while relations are smooth. Legally, it is fragile.

XIII. Special Concerns in Developer Sales

When the property comes from a developer, the buyer should examine the original documents, such as:

reservation agreement;
contract to sell;
statement of account;
official receipts;
notices of delinquency;
notices of cancellation;
turnover documents;
deed of restrictions or condominium master deed;
schedule of transfer charges and fees.

The buyer must verify whether the seller is in good standing and whether assignment is allowed. Some developers require:

written request for transfer;
IDs and civil-status documents;
marriage documents if applicable;
proof of updated payments;
deed of assignment in prescribed form;
transfer fees;
credit evaluation of the new buyer.

A private pasalo that skips these requirements may leave the buyer exposed.

XIV. Tax and Transfer Issues

Tax treatment depends on what is really being transferred and at what stage.

If the transaction is an assignment of rights rather than a completed sale of titled property, the tax posture may differ from a straightforward sale of registered real property. Still, the parties often ignore taxes entirely, which becomes a problem later when they attempt formal transfer.

Potential tax and cost issues include:

capital gains tax questions where a taxable sale of real property is involved;
documentary stamp taxes;
transfer taxes;
registration fees;
notarial fees;
local tax clearances;
unpaid real property taxes;
association dues and special assessments.

A dangerous pattern in pasalo deals is the sentence: “Bahala na kung sino magbabayad ng taxes later.” That uncertainty often leads to deadlock, because title transfer cannot proceed cleanly without compliance.

The agreement should clearly allocate:

who pays taxes;
who pays transfer fees;
who shoulders arrears and penalties;
what happens if additional charges appear later.

XV. Can a Notarized Pasalo Alone Transfer Ownership?

Not necessarily.

Notarization makes a document a public document and improves its evidentiary weight, but notarization does not cure legal defects such as:

lack of ownership;
lack of authority;
absence of spousal consent;
violation of anti-assignment clauses;
lack of bank or developer consent;
forged signatures;
invalid subject matter.

A notarized invalid transfer is still invalid.

Many buyers place too much confidence in notarization. It is important, but it is not the same as legal effectiveness against the world.

XVI. Registration: Why It Matters

For registered land, rights are strengthened by proper registration. An unregistered private pasalo may leave the buyer vulnerable to later claims.

Where title is not yet ready for transfer, the buyer’s position is inherently weaker because the buyer cannot immediately consolidate registered ownership in his own name. The buyer may then be relying mainly on:

the seller’s honesty;
the continuity of payments;
the cooperation of the developer or lender;
the availability of future documents.

This is precisely why pasalo transactions are higher-risk than ordinary titled sales.

XVII. Default, Cancellation, and Buyer Protection in Installment Sales

Philippine law recognizes protections for buyers of real estate on installment in certain situations. But these protections depend on the type of transaction, the number of installments paid, the governing contract, and who the parties are.

In a pasalo involving an installment contract, the buyer must determine:

whether the original buyer had already paid enough installments to trigger statutory protections;
whether the account is current or in default;
whether cancellation has already been initiated;
whether notices required by law or contract were sent.

A buyer who acquires a defaulting account may step into a legally troubled position. The account may not be “rescued” just because the private buyer starts paying. Timing matters, notices matter, and the exact status of the account matters.

XVIII. Fraud Patterns Common in Pasalo Deals

A legally informed buyer should watch for the following recurring patterns:

1. “Rush sale” with pressure for immediate down payment

The seller claims there are many buyers and pushes for cash before document verification.

2. Seller cannot produce original documents

Only photocopies are shown, with excuses about being abroad, locked files, missing spouse, or unavailable developer liaison.

3. Payments requested to personal accounts without paper trail

This creates later proof problems.

4. Seller avoids direct verification with developer or bank

A legitimate seller should be willing to verify the account status.

5. Different names appear in different documents

Mismatch among reservation forms, IDs, receipts, title, tax declarations, utility bills, and authorization papers is a major warning sign.

6. Seller says “No need to inform the developer”

That is often the exact thing that most needs to be done.

7. Occupants are already in conflict

There may be tenants, family disputes, or possession trouble hidden behind the transaction.

XIX. Due Diligence: What the Buyer Must Check

A prudent pasalo buyer in the Philippines should verify at least the following:

A. Identity and authority of the seller

Check government IDs, tax identification data if relevant, civil status, and authority documents. If represented by an agent, require a valid SPA and verify authenticity.

B. Marital status and spouse consent

Obtain marriage information where relevant. If married, determine whether spousal conformity is required.

C. Nature of the seller’s right

Is it a title, a contract to sell, a loan account, or mere possession?

D. Status of payments

Get updated statement of account, receipts, and proof of arrears or current standing.

E. Consent requirements

Ask the developer, bank, or Pag-IBIG in writing whether transfer/assignment is allowed and what documents are needed.

F. Property status

For titled property, verify title authenticity and check for annotations, encumbrances, adverse claims, notices of lis pendens, mortgage, levy, or other burdens. For untitled or not-yet-titled developer properties, verify the project and account status directly with the developer.

G. Taxes and dues

Check real property taxes, association dues, condominium dues, utilities, and special assessments.

H. Possession and occupancy

Inspect the property physically. Confirm who occupies it and under what authority.

I. Litigation or disputes

Ask about pending cases, complaints, collection issues, and cancellation notices.

J. Exact amount being paid and for what

Separate clearly:

reimbursement of prior installments;
premium or profit;
assumption of future installments;
transfer fees;
taxes;
arrears and penalties.

XX. Documents Commonly Needed in a Safer Pasalo

The exact set depends on the property, but safer transactions often involve:

deed of assignment of rights or other correct transfer document;
conformity or consent from developer, bank, or financing institution where required;
updated statement of account;
payment history and official receipts;
seller and buyer IDs;
marriage certificate or proof of civil status where relevant;
spouse’s written conformity, when needed;
SPA if signed through an attorney-in-fact;
authority documents if seller is a corporation;
acknowledgment receipts for all payments;
possession turnover document;
undertaking on taxes, dues, and hidden obligations;
escrow arrangement in higher-risk transactions;
postdated documents only with extreme caution;
final deed of sale and transfer documents once ownership becomes transferable.

XXI. Should the Buyer Pay the Seller in Full Up Front?

This is often the worst structure.

If the account is not yet officially transferred or recognized, a full upfront payment exposes the buyer to enormous risk. A safer structure usually ties payment releases to milestones, such as:

verification of account status;
execution of assignment;
written consent from the developer or lender;
delivery of original documents;
turnover of possession;
proof that arrears have been settled;
eventual transfer of title.

Where the risk is significant, some use escrow-like arrangements through trusted professionals or institutions. The point is to avoid paying the entire price before legal control improves.

XXII. What Happens If the Seller Backs Out After Receiving Payment?

If the seller received payment and refuses to cooperate in completing the transfer, the buyer may have civil remedies based on contract law, including:

specific performance;
rescission;
refund;
damages;
possibly annotation or protective court relief depending on the circumstances and stage of title.

But litigation is costly and slow. A buyer should not rely on future court action as a substitute for careful documentation at the start.

XXIII. What Happens If the Buyer Stops Paying After the Pasalo?

If the buyer undertook to continue installments but stops, several layers of liability can arise:

the seller may sue the buyer for breach of the private agreement;
the developer or lender may proceed against the original buyer if that party remains the recognized account holder;
the property may be cancelled or foreclosed;
the seller may lose both the property and the credit standing tied to the account.

This is why sellers should never assume that a private “takeover” fully protects them. Until formal substitution is recognized, risk remains.

XXIV. Can the Buyer Immediately Resell a Pasalo Property?

Not safely unless the buyer has already acquired transferable rights and complied with required approvals.

If the buyer himself has only an informal, unapproved right, a second transfer compounds the legal weakness. This creates chains of private assignments with increasing uncertainty. The farther the chain goes from the original recognized account holder, the more dangerous the arrangement becomes.

XXV. Possession Is Not Ownership

Many pasalo disputes arise because the buyer has moved into the property and assumes that physical control equals legal title.

It does not.

A person may possess a house or condo for years and still lack:

registered ownership;
recognized contractual substitution;
authority to mortgage or resell;
protection against a stronger titleholder or creditor.

Possession helps factually, but it is not a substitute for proper transfer.

XXVI. Can a Buyer Rely on Barangay Papers or Simple Receipts?

No, not for a serious real-estate acquisition.

Barangay certifications, handwritten receipts, or simple acknowledgment papers may help show that money changed hands, but they are not enough to establish a legally secure transfer of real property rights. At most, they are fragments of evidence.

For property transactions, the legal and documentary standard must be much higher.

XXVII. Corporate Sellers and Developers’ Internal Policies

If the seller is a corporation or business entity, the buyer must verify:

SEC existence and status;
board authority or secretary’s certificate;
identity of authorized signatories;
consistency of project documents;
the actual rights of the company in the property.

In some pasalo deals, a person presents himself as an “agent of the developer” or “authorized broker” when he has no power to approve a transfer. Internal sales personnel are not necessarily authorized to bind the developer.

XXVIII. Broker and Agent Issues

A broker or agent can facilitate, but cannot create rights that the principal does not have.

If a buyer transacts through a broker, the buyer should still independently verify:

the seller’s identity;
the status of title or contract;
whether assignment is allowed;
the exact outstanding obligations;
whether the broker is properly licensed or authorized.

A broker’s verbal assurance is not a substitute for legal due diligence.

XXIX. Remedies Available to the Buyer If Something Goes Wrong

Depending on facts, a buyer may pursue:

Civil remedies

rescission or cancellation of the private contract;
refund of amounts paid;
damages;
specific performance;
reimbursement of expenses;
injunction or related judicial relief.

Criminal remedies in proper cases

If there was fraud, deceit, falsification, or estafa-like conduct, criminal liability may be explored depending on the evidence.

Administrative or regulatory complaints

Where the property involves regulated subdivisions or condominium developments, there may be administrative avenues related to developer conduct, though this depends on who committed the wrong and on the exact issue.

The correct remedy depends on whether the problem is:

fraud by the seller;
refusal of the developer to recognize an unapproved transfer;
loan default;
title defect;
possession dispute;
or breach of private contract.

XXX. Best Legal Position for a Buyer

The safest pasalo is one where all of the following are present:

the seller’s right is real and documented;
the account is current;
the contract allows transfer;
the developer, bank, or Pag-IBIG gives written approval where needed;
the spouses or co-owners properly consent;
the amounts paid are documented;
taxes, dues, and arrears are allocated clearly;
possession is delivered lawfully;
final title transfer is feasible and mapped out.

The weakest pasalo is one where:

the parties rely on trust and receipts only;
no one checks the developer or lender;
the seller is in default;
the property is mortgaged;
the title remains elsewhere;
the spouse did not sign;
the buyer pays a large amount in cash immediately.

XXXI. Practical Rule: Buy Only What Can Be Clearly Described

Before entering a pasalo, the buyer should be able to answer this sentence with precision:

“What exactly am I buying?”

A legally sound answer might be:

“I am buying the seller’s rights under a developer contract, subject to developer approval, and I will become the recognized transferee upon compliance.”

A dangerous answer sounds like:

“I’m buying the house, even if the title is not yet in the seller’s name, the bank doesn’t know, the spouse hasn’t signed, and we’ll fix the papers later.”

The clearer the legal object, the safer the transaction.

XXXII. A Simple Legal Summary of the Core Principles

In Philippine practice, pasalo can be lawful, but it is not automatically secure. Its legality depends on the true nature of the seller’s right, the contents of the original contract, the necessity of third-party consent, and the completeness of documentation. A private agreement may be enforceable between buyer and seller while still being ineffective against the developer, bank, Pag-IBIG, co-owner, spouse, or other third parties. That is the central legal reality.

A buyer in a pasalo arrangement has contractual rights against the seller and may acquire whatever rights the seller can validly assign. But the buyer also carries major risks: non-recognition by the real account holder, title defects, hidden encumbrances, unpaid obligations, invalid authority, marital-property problems, and fraud. The seller, meanwhile, may remain liable on the loan or account despite believing the property has already been “passed on.”

The safest approach is to treat pasalo not as an informal shortcut, but as a real legal transfer requiring the same seriousness as any significant property transaction: verification of ownership or contract rights, direct confirmation from the developer or lender, proper signatures and authority, careful allocation of taxes and fees, and written documentation matched to the true stage of ownership.

XXXIII. Bottom-Line Legal View

A pasalo is not inherently illegal in the Philippines. But it is also not inherently safe.

Its enforceability can range from:

strong, where rights are real, consent is secured, documents are complete, and transfer is properly recognized;

very weak, where the deal is only a private arrangement unsupported by ownership, authority, or third-party approval.

The difference between those two situations is everything.

For a buyer, the true question is not whether pasalo is common. It is whether the rights being sold are real, transferable, recognized, and documentable. If not, the buyer may end up paying real money for a right that exists only on paper between private parties and nowhere else.