Updated as of March 31, 2023
Purchasing a condo for sale coincides with the milestones of your life. And owning the condo also marks the beginning of your journey of investment in the real estate field of the Philippines. But, purchasing a condo is a mammoth process that includes planning and selecting the best match for your purpose. So, if you are a first-time investor, then here comes a step-by-step guide to purchasing a condo for sale in the Philippines.
Here Is a Step-By-Step Guide to Buying a Condo in the Philippines
1. Contact a broker or real estate agent
This is the first step in purchasing a condo for sale Philippines. And these days, the process is quite easier than before. All you have to do is to contact the broker or real estate agent online with a few clicks. But before you contact the person, don’t forget to do your research.
2. Make an appointment with the broker or agent to visit the property
After contacting the preferred broker or agent, set an appointment with him to discuss the property. Here you can have direct communication with the broker or agent mentioning your requirements. Inform the person whether you need a south-facing home or a north-facing one, the total bedrooms you want, whether you need a garden unit, etc. A good real estate agent or broker will always be ready to answer your concerns and queries about a property. Besides, you can collect information about the property online before contacting the agent. And during the site visit day, ask the broker or agent to accompany you and offer you an overview of the property.
3. Decide the unit you want to invest in or live in
As mentioned in the previous point, before you visit the property, you must research it to have a clear idea of the condominium unit that you want to purchase. Then you can check the model units of the property to have an idea of how what the future condo unit would look like and check the amenities. And in the case of a ready-for-occupancy property, you can have a tour of the outer part of the condo developments.
4. Choose the best payment method depending on your finances
Take your time and think well before you pay for the property. Never be pressured to invest in the property immediately or don’t take too much time. Make sure that your income is enough for paying the monthly installments of the property price. Based on the condo type you want to purchase and the developer, you may offer different types of payment terms. For example, you can pay for the property in full cash, through MA or Monthly Amortization, or a deferred term. Apart from that, some custom payment terms are also available that are subject to approval.
5. Pay the RF or Reservation Fee once you take the final decision
Once you make the final decision of investing in the condo for sale Philippines, pay the RF. You can choose to pay it on your first or second meeting with the broker or property agent or whenever you want to make the payment. The RF would be deducted from the total price of a contract. Generally, this is deducted from the first down payment if you don’t choose the cash payment term. Don’t forget to get the official receipt for the paid amount.
6. Offer the necessary identification documents
After paying the RF, the next thing you have to do is to offer a photocopy of the government IDs like a driver’s license and passport. Other necessary documents included here are the proof of billing, proof of Tax Identification Number if married then the marriage license, etc. Don’t forget to bring the actual ID and other necessary documents.
7. Fill in the necessary forms and then sign the buyer documents
Apart from submitting the documents, you have to fill in the necessary documents like the Corporate or Buyer Information Sheet and the Reservation Application. You have to sign two or three same forms to avoid the hassle of signing again or maintaining safety if you do any mistakes on the initially signed forms. Other documents you have to submit will depend on your requirements and the property type you purchase. Every developer has different terms for different properties. So, your property broker/agent will offer you different forms to sign depending on the required ones. If you are unable to sign the documents, then choose a person, who has the notarized or consumerized Special Power Of Attorney (SPA) as your representative.
8. Prepare the payments depending on your preferred payment term
Depending on your payment term, prepare your payments. For instance, if you prefer the 10-40-50 payment term, then you have to pay a 10% spot cash down payment, 40% in the next 59 months, and 50% bank financing or cash payment for the balance. And when paying the payments, don’t forget to get the acknowledgment receipts for the OR of every payment made and the PDCs. If you are planning to pay the remaining balance through a bank loan, then don’t forget to apply for it at least 3 months before paying off the last MA.
9. Ask for the important documents from the broker/property agent
Don’t forget to ask for the monthly account statement and the payment schedule from the property agent or broker. Based on the property developer, you must have these details as they will help you to keep track of all things. It is important to document the amount you have paid and keep in mind when you should make the payment.
10. Get the Deed of Absolute Sale (DAS) and the Contract To Sell (CTS)
CTS is the contract that indicates that the developer is ready to sell the condo unit to you and you are ready to invest in the house and lot for sale. It also mentions that the unit would be delivered to you once you make the full payment of the total agreed-upon contract price. And you will get the notarized DAS once you pay for the condo unit fully. This document will indicate that you are the sole owner of the condo unit after making the payment.
Condo living has a lot of benefits and there are several things to know before investing in one. For starters, condominiums come with shared amenities. Thus, to maintain these, you need to pay condo association fees to the condo associations or the property management company. Condo fees are being paid to take care of the amenities, the building, the exterior, and the greeneries. You also need to take into account the developer’s reputation. Choose a developer that has a good history of delivering world-class residential properties. Also be wary of the other payments you need to pay when buying a condo such as property taxes, agent fees, and, closing costs. If you want to know something that your real estate agent hasn’t mentioned, you could always talk to condo owners or condo dwellers who currently live there. If you’re lucky enough, they may give you a condo unit tour.
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Related Blog: Steps To Be Taken While Buying a Condo in The Philippines
