Checklist Before Buying a House or Condo on Pre-Selling Stage
Before putting your money in a house or condo on pre-selling stage, follow this checklist to help you in the buying process.
- Check first if the house or condo you want to buy is registered with the Housing and Land Use Regulatory Board (HLURB) and has been issued a license to sell by the same agency. The HLURB regulates and monitors all real estate developments such as vertical (condos) and horizontal (house and lots) projects.
- Conduct a site survey to see if the location of the house or condo is acceptable to you and according to your liking and preference. Pay careful attention to its neighborhood and proximity to commercial, recreational, financial, and educational establishments.
- Do a background check on the property developerand the people behind the company. Your best bet is the developer’s official website, which has a list of past, current, and future projects.
- Know the terms of sale such as:
- Reservation Fee – Know how much and valid for how long? The reservation fee is normally valid for 30 days prior to the down payment (DP)
- Down Payment (DP) – Due 30 days after you paid the reservation fee
- Balance – Normally required 30 days after paying the DP; can be paid in installments and spread over the repayment period prescribed by the developer
- Know the construction schedule such as:
- Date of Groundbreaking – Start of development and construction
- Target Completion Date – Turnover to buyers with Certificate of Completion (COC) issued by HLURB
- Lastly, know much would the association fees be (for condos) and monthly dues (for house and lots) upon completion and turnover of the property.
With all information at hand, you can already sign the reservation agreement and pay the required fees to reserve a house or condo of choice. It’s important to remember that the reservation fee is subject to forfeiture if you suddenly change your mind or if you’re unable to pay the required DP. Upon full payment, the developer then facilitates the Deed of Absolute Sale (DOAS) in favor of the buyer with the title (Transfer Certificate of Title [TCT] for house and lots or Condominium Certificate Title [CCT] for condos) to immediately follow.
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