An Expat’s Guide to Buying a Condominium in the Philippines

If you’re an expat and you plan to live, work, or retire in the Philippines, you might want to consider buying a property here to lay down some roots in one place. 

The bonus of buying a property in the Philippines can be an excellent investment. Just before the beginning of the pandemic, the condominium market in the Philippines was starting to slow down after a decade-long boom. 

Nonetheless, it is now widely predicted the housing market will soon recover from the pandemic and the current global economic downturn.

And a fair degree of uncertainty in any market can be a blessing in disguise — some developers have slashed prices to free up much-needed cash reserves. 

But worry no more, we bring you all the information you need to make an informed decision when buying a condo in the Philippines.

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Can an Expat Buy a Condominium in the Philippines?

The simple answer is, yes you can. But there are some very important things you have to understand and consider.

First of all, let’s fully understand what we mean when we say ‘condominium’ or ‘condo’. The term means an individually owned residential unit in a complex or building of like units. 

Condominium owners own their units but share common spaces and areas.

Legalities

The condominium market aimed at foreigners in the Philippines is a mature and popular one, having been legislated for by RA 4726 The Condominium Act of 1966

This allows foreign nationals to buy and own condominium units in the Philippines, as long as no more than 40% of the units in a complex are bought by foreigners. 

You need to ask the real estate agent (preferably with the developer as well) if you are still within the 40% quota. 

Resident Status

It’s important to know that owning a condominium doesn’t automatically give you Philippine Resident status. You will still have to follow the procedure for applying for Permanent Residency in the Philippines.

Find out more: 

The 50-Year Lease Misconception 

One misconception about condominium ownership in the Philippines is that you only own it for just 50 years. This mistaken belief comes from the fact that companies and corporations only have a legal lifespan of 50 years in the Philippines. 

Therefore, many believe that the condominium corporation that manages your unit and owns the land it is built on can only exist for 50 years. 

Though this is true, all this means is every 50 years, your condominium corporation must simply re-register its business status, and then this corporation can exist once more for another 50 years. 

This is normally a straightforward procedure and should not affect your continual ownership of your condominium unit in any way.

Things to Consider

You may already have some ideas of what specifications of the condo unit you wish to buy. But before signing on the dotted line, here are some considerations to take.

Existing vs Off-Plan Condominium

The next thing you must decide on is what type of condominium to buy: existing or off-plan?

The off-plan route is where you put a down payment on a yet unbuilt unit and you can pay off the remainder once the condominium is completed. This is often called buying off-plan, as you base your purchase purely on the design plans and specifications presented to you initially by the developer.

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This comes with a set of pros and cons for the buyer.

The buyer can get significant savings on the unit’s price and is guaranteed to get a unit in what might turn out to be a highly sought-after condominium complex. 

Whereas, the developer’s cash flow is improved immensely during their financially costly construction stage by an injection of off-plan sales. For them, discounting at this stage is far cheaper and less hassle than getting a bank loan.

But do bear in mind if a developer is selling off-plan units on a large scale, it might be a sign that the development is underfunded and already in financial trouble. 

So always proceed with caution when considering going the off-plan route when purchasing a condominium, as there have been cases where projects go unstarted or unfinished once an unscrupulous developer has taken your money.

Price

Prices of condominiums in the Philippines can vary greatly depending on several factors like location, size, type, demand, amenities, availability, and build quality.

But to start, here is a table of average price ranges for condominiums in Metro Manila:

Budget TypeSizeAverage Range
Studio30-70 sqmAround ₱2-6M (Around US$36,000-107,000)
1-Bedroom30-40 sqmAround ₱2.5-4M (Around US$45,000-72,000)
2-Bedroom40-80 sqmAround ₱4-6M (Around US$72,000-107,000)
3-Bedroom80-100 sqmAround ₱7-15M (Around US$125,000-268,000)
Mid-Tier TypeSizeAverage Range
Studio30-40 sqmAround ₱5-6M (Around US$89,000-107,000)
1-Bedroom30-50 sqmAround ₱5-9M (Around US$89,000-161,000)
2-Bedroom50-60 sqmAround ₱7-15M (Around US$125,000-268,000)
High-End TypeSizeAverage Range
Studio40-50 sqmAround ₱7.5-10 (Around US$134,000-179,000)
1-Bedroom40-60 sqmAround ₱8-16M (Around US$143,000-286,000)
2-Bedroom60-80 sqmAround ₱12-19M (Around US$214,000-339,000)
3-Bedroom80-90 sqmAround  ₱40-50M (Around US$715,000-893,000)

Budget condominiums will usually have basic amenities and some will have commercial and residential units all in the same building. 

Meanwhile, mid-tier properties are usually located in convenient locations near the hustle and bustle of the city and feature top-quality amenities such as a swimming pool, children’s playground, and many more. 

On the more luxurious edge are high-end properties with direct access to entertainment hubs and major thoroughfares to the Metro and feature modern facades and luxurious amenities such as a barbecue area, pool deck, gym, tennis courts, high-ceiling lobby, private theater, reading and tea room, and so much more.

But nothing beats good, old-fashioned research. The web is an invaluable source of information, and you can look at websites such as PropertyAccess or Primer.

Also whatever professional help you decide to employ, they should be able to guide you about the correct going rate for any particular condominium you are interested in.

Currency Fluctuations

Though exchange rates are often stable, they can also be highly volatile at times, in part to reacting to global events like the war in Ukraine and the subsequent cost of living crisis.

So currency fluctuation can, on occasion, severely affect for better or worse your purchasing power if your capital is initially tied up in a non-Filipino currency.

If this is your situation, remember to keep an eye on the exchange rate and act accordingly, as timing is everything. You could end up saving or costing yourself a fortune if done properly or improperly.

Negotiating

As a foreigner, do not be afraid to negotiate. It is a sad reality that all levels of Filipino businesses see foreigners — especially those from the West, Japan, and South Korea — as being wealthy with money to burn.

But do not be offended by this, it’s an ingrained cultural notion held by most Filipinos. So do your research on costs otherwise you’d be paying through the nose for everything from taxi rides to condominiums!

However, negotiate only when appropriate. Although Filipinos may occasionally hike up their prices when selling to a foreigner, most will only raise their prices slightly. Only a few exceptions will try to out-and-out rip you off. 

Negotiating prices is a common practice in the real estate industry, even for new condo purchases. However, the degree to which you can negotiate the price will depend on a number of factors, such as the current market conditions, the developer’s pricing policies, and your bargaining skills. 

It’s important to note that not all developers may be open to price negotiation, so it’s important to set your expectations accordingly. 

Consider working with a real estate agent or broker who has experience negotiating prices for condos in the Philippines. An agent can help you navigate the negotiation process and provide valuable insights into the local real estate market.

Location

Most condominium development has been in urban areas and coastal resorts with good locations and ample utilities (water, sewer, electricity, trash collection, etc). 

Read more: Best Places to Live in The Philippines For Expats 

A checklist of nearby facilities to look for is as follows:

  • Medical facilities like doctor’s offices or hospitals
  • Pharmacies
  • Supermarkets
  • Recreational facilities like parks and hiking trails
  • Sports facilities like golf courses

Makati

Makati City is the financial and business capital of the Philippines. It is home to the Philippine Stock Exchange, the Ayala Triangle, and the Glorietta complex, among other major business and financial institutions. Makati is also a major residential and commercial center, with a wide variety of condominium properties available.

Hidalgo Towers Rockwell Makati_panoramio
Hidalgo Place, a 24-story condominium in Rockwell Center, in Makati

Condos in Makati come with a price tag of somewhere between ₱2M to ₱20M (Around US$36,000-360,000). Here is a list of price ranges that you can expect for different areas in Makati:

  • Ayala Triangle: ₱10M to ₱20M (Around US$179,000 to US$359,000)
  • Glorietta: ₱5M to ₱15M (Around US$90,000 to US$ 269,000)
  • Ortigas Center: ₱3M to ₱10M (Around US$54,000 to US$179,000)
  • Bonifacio Global City: ₱2M to ₱8M (Around US$36,000 to US$144,000)
  • Bangkal: ₱1M to ₱5M (Around US$18,000 to US$90,000)

Cebu City

Cebu City, located in the Visayas region of the Philippines, is a bustling metropolis with a rich history and culture. It is a popular destination for tourists and locals alike, with a thriving economy and a rapidly growing real estate market.

Condominium properties in Cebu City vary in size, style, and price point. They can be found in prime locations such as Ayala Center Cebu, IT Park, and Mactan Island.

The cost of condominium properties in Cebu City can vary greatly depending on several factors such as location, size, amenities, and age of the building. In general, prices for condominiums in Cebu City can range from around ₱1.5M (Around US$27,000) for a studio or small 1-bedroom unit in a mid-range development to ₱50M (Around US$897,000) or more for a large, luxury penthouse in a prime location.

For example, a typical mid-range 1-bedroom unit in Cebu City’s IT Park area could cost around ₱3-5M (Around US$54,000-90,000), while a 2-bedroom unit in a high-end development like Ayala Center Cebu could cost upwards of ₱10M (Around US$179,000). Luxury condominiums in Mactan Island can range from ₱15M to ₱50M (Around US$269,000 to US$897,000), depending on size and features.

Davao City

Compared to other major cities in the Philippines, such as Manila and Cebu, Davao City has lower property prices, making it a more accessible option for many people. Additionally, owning a condominium in Davao City can provide an opportunity for passive income, as these properties can be rented out to students, young professionals, and tourists who are looking for a place to stay in the city. 

Here are some of the most popular condominium developments in Davao City:

  • Abreeza Place – This luxury condominium development is located in the heart of Davao City, close to all the major amenities.
  • Avida Towers Abreeza – This mid-rise condominium development is located in the Abreeza Mall complex, offering residents easy access to shopping, dining, and entertainment.
  • Camella Northpoint Davao – This affordable condominium development is located in the Matina area of Davao City, close to schools, hospitals, and other essential services.
  • DMCI Homes Verdon Parc – This luxury condominium development is located in the Ecoland area of Davao City, offering residents stunning views of the city and the Davao Gulf.
  • Filinvest Eastland Heights Davao – This master-planned community features a variety of residential, commercial, and leisure amenities, making it a great place to live, work, and play.

You can expect to pay anywhere from ₱1M to ₱20M (Around US$18,000 to US$359,000) for a condo in Davao City. Here are some examples of prices for condos in different areas of Davao City:

  • Downtown Davao: ₱5M to ₱20M (Around US$90,000 to US$359,000)
  • Matina: ₱3M to ₱10M (Around US$54,000 to US$179,000)
  • Ecoland: ₱2M to ₱8M (Around US$36,000 to US$144,000)
  • Buhangin: ₱1M to ₱5M (Around US$18,000 to US$90,000)
  • Toril: ₱1M to ₱5M (Around US$18,000 to US$90,000)

Subic

Subic is also a major economic center, home to a number of multinational corporations. The Subic Bay Freeport Zone is a special economic zone that offers tax breaks and other incentives to businesses. This has made Subic a popular destination for foreign investors and has helped to boost the local economy.

The condominium properties in Subic are typically located near the beach, providing residents with stunning views of the ocean and easy access to the area’s many attractions.

Generally, the cost of a condominium unit in Subic ranges from around ₱2M to ₱10M (Around US$36,000 to US$179,000) or more. Condos located near the beach and with ocean views tend to be more expensive, while those located further inland or with fewer amenities can be more affordable.

Amenities

What a complex has to offer in terms of extra value can be a deal breaker. So figure out beforehand which amenities are important to you.

For example, amenities might not be enough for the total occupants of certain projects. For example, a single condominium building may have over 500 rooms inside but comes with only a medium-sized swimming pool. Or it may have a couple of tennis courts but have several hundred residents.

So do your homework and find out how many units are in the complex that you are interested in and then do the math.

A checklist of amenities to look for is as follows:

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  • Gym
  • Swimming pool
  • Sports facilities like a tennis court or running track
  • Garden area
  • Pets allowed (if you have one)
  • Reliable internet coverage and speed
  • Good mobile phone coverage and reception

Natural Disasters

Not to alarm you, but the Philippines does suffer from its fair share of earthquakes, typhoons, and volcanic eruptions. The United Nations 2022 Global Assessment Report on Disaster Risk Reduction predicts that these events are likely to become increasingly more commonplace in areas like the Philippines soon.

Since buying a condominium is a very long-term commitment, this kind of thing should be taken seriously along with the growing threat of rising sea levels due to global warming.

And remember that the Philippines is a hot, tropical country, where the daytime temperatures rarely drop below 30C (86F) and often get close to a scorching 40C (104F). If this is a problem, you can always invest in good-quality air con inverters for your unit. 

Developers

Some of the most respected and highly rated condominium developers in the country include:

  • Alveo Land – Has vibrant and innovative projects in various prime locations. 
  • Camella Homes and Communities – They have become the country’s largest developer with communities in the north and south of Luzon, Visayas, and Mindanao.
  • DMC – Specializing in comfortable, resort-style communities in Quezon City, Taguig City, Mandaluyong City, Pasig City, and Paranaque City. 
  • Robinsons Land – A well-established developer with projects located in key cities and other urban areas nationwide.
  • SMDC – Offers high-quality living at affordable, amenities-oriented condominiums at prime locations.

How to Find a Condo

There are several ways to find a condo for sale in the Philippines. Here are some tips:

Real Estate Websites

Check out reputable real estate websites that list condos for sale in the Philippines, such as Property24, Lamudi, and Dot Property.

Social Media

Many real estate agents and developers use social media platforms, such as Facebook and Instagram, to advertise their properties. You can also join real estate groups on Facebook to find listings and connect with agents.

Referrals

Ask your friends, family, or colleagues if they know of any condos for sale in the Philippines. They may know someone who is selling or can recommend a reputable real estate agent.

Property Fairs and Exhibitions

Attend property fairs and exhibitions where developers and agents showcase their properties. This is an excellent opportunity to compare prices and features and ask questions about the properties.

Classified Ads

Check out classified ads in newspapers or online websites like Craigslist, OLX, or AYOSDITO.

Driving Around

Go for a drive around the area where you want to buy a condo and look for “For Sale” signs. You might find a condo that’s not listed online.

Once you find a condo for sale that interests you, be sure to conduct due diligence on the property, such as reviewing the title and checking for any outstanding fees or taxes. It’s also a good idea to work with a licensed real estate agent or broker to ensure a smooth and safe transaction.

Buying Process

Every country has a different procedure for buying a condo. But some of the steps involved would be quite similar. 

Here are some of the common processes you will go through when buying a condo in the Philippines.

Inspection 

A glossy, well-polished website that showcases a developer’s or condominium corporation’s units can be a useful source of information, but it can also be very misleading and far too optimistic. 

The first thing you always must do is to personally visit the site, even if the development is not yet completed or even hasn’t started yet!

If the actual complex is an existing one or has just been completed, arrange to look around it and be given a tour of the unit and the complex‘s facilities.

smdc residence condo tour
Ask the developer or your realtor for a tour of the property if it’s a finished project

If it’s uncompleted or not started, it is worth inquiring if there is a show unit available where you can look around. If that is not the case, still go down there to get a feel of the site and see how the construction is being carried out or if the site has the potential the developer claims it has.

Whatever the state of the condominium complex you are seriously interested in, make sure you make the time to go for a walk or drive around the local area. That way you will get a real insight into the local community you may one day be a part of and see for yourself all it has to offer.

Take Advantage of Airbnb

Most condominium complexes in the Philippines have some of their units for rent on travel accommodation websites like Airbnb. You can book a unit in the same condo development you are interested in and experience condo living before buying.

From my own experience, it proved invaluable in helping me to decide whether to buy a certain condominium or not. 

For I discovered while staying there that the complex suffers badly from water leaks and low water pressure issues. But I also found out that its facilities like the swimming pool and gym were indeed first class. 

And that the complex staff (cleaners, receptionists, security guards, etc) were among some of the nicest and most courteous I have ever encountered!

Fill Out the Client Registration Form

One of the many documents that you will be asked to complete in the purchase process is the registration form. 

The form serves two purposes: to collect your information and for the agent to be able to receive his/her commission from the sale. 

Take note that when you have signed the form, if you need to change your real estate agent, you will need to wait for 30 days. In some cases, an online form is also required before a unit can be reserved for you.

Decide on Your Payment Plan

Most developers and condominium corporations will accept a variety of ways for you to pay for your unit:

Full Payment

This normally allows you to get a good size discount off the asking price of your unit. But this can leave you vulnerable and possibly financially overstretched if things go wrong.

Monthly Amortization

Remember to check if there is any interest associated with these monthly payments and if it is subject to any possible changes to the interest charges and if so why? 

The 10-40-50 payment scheme is a particularly popular version of this. This is where you put down an initial 10% payment, then you pay 40% of the asking price over the next 59 months. The remaining 50% is either financed by you through cash or through a bank loan. 

If you apply for a bank loan, expect strict eligibility requirements, but flexible loan options and low interest rates. Another option is in-house financing which has less strict documentary requirements but has high interest rates of up to 18% and repayment period is limited to 10 years.

And remember to budget accordingly and to make sure you can afford what you are financially committing yourself to. Also, remember that there may be other regular fees and costs associated with your condominium unit you may not have considered. 

Important to remember: Special offers can be very enticing like initial deferred payments. Just make sure you understand them fully and any strings attached to them.

Complete the Required Documents

The reservation fee is required so that the developer can secure your preferred unit and take it off the market for other buyers. 

The reservation fee which is around ₱20,000 to ₱200,000 (Around US$359 to US$3,590) is non-refundable and non-transferrable but it can be deducted from the downpayment or the total price.

Some of the documents that the developer may ask you to sign are:

  • Reservation Agreement Form
  • Buyer’s Information Sheet
  • Computation Sheet
  • Payment Schedule
  • Floor Plan/Layout
  • Data Privacy Policy

These documents may vary from one developer to the next, and will depend on the project as well. 

You will also be asked to submit a copy of the following:

  • Identification card which is your passport 
  • Valid ID of your co-owner if you have one
  • Marriage certificate if you are married
  • Proof of billing from the address you provided in the client registration form
  • Proof of income
  • Verified BIR 1904 form (taxpayer’s identification number)

Receive the Contract to Sell

The Contract to Sell will be sent to you by the developer via post or your real estate professional. 

This document will serve as proof of the developer’s intent to sell the unit to you and will include details such as the unit specification, purchase price, payment details, payment plans, and others. You will be asked to sign the contract and this will be notarized as well.

Some developers provide a Payment Schedule temporarily if it takes them a while to provide the Contract to Sell.

If you are overseas and you won’t be able to sign these documents, you will need a special power of attorney certified by the Philippine consulate in your country.

Process the Letter of Guarantee (If Paying Through Bank Loan)

The bank loan should be applied 2-3 months before the balance is completed. The bank will issue a Letter of Guarantee once your application has been approved. This document signifies that the bank has guaranteed to pay for the remaining balance with the developer.  

Some developers have partner banks, in which case, the bank will send the Letter of Guarantee directly to the bank.

Some developers also accept a Bank Loan Approval Letter to proceed with the turnover. 

Turnover and Receive the Certificate of Title

When you present the Letter of Guarantee to the developer, you will also need to pay the turnover fee and sign a Deed of Absolute Sale — a document that will allow the developer to transfer the ownership to the buyer. 

The turnover fee for new condo purchases in the Philippines ranges from 1 to 2% of the purchase price. This fee covers the cost of preparing the unit for occupancy, such as cleaning, painting, and installing fixtures. It may also include the cost of one-time association dues and other fees. The turnover fee will also include an electric company service deposit, a water service deposit, monthly association dues, and assessment fees. The exact amount of the turnover fee will be specified in the contract of sale. 

You will be asked to inspect the unit during the turnover where if you see defects in the unit, you need to let the turnover representative know so they can take note of them in the Handover Checklist and endorse it to the construction company. 

new-studio-unit-kitchen-area
Most new condo units will either be bare or contain basic furnishings upon turnover

If you are ready to accept the unit, you will be asked to sign turnover documents such as a Certificate of Acceptance, Key Transmittal Document, Homeowner’s Handbook, Warranty, Lease Policies, and others.

After that, you will be issued the Certificate of Title among other documents. However, this may take weeks or months.  

Getting Professional Help

Can you purchase a condo without professional help?  With some developers, you can. However, it is important to note that there are a number of risks involved in doing so. Some of these include incorrect paperwork, expensive title insurance, lots of bureaucratic red tape, and so much more.

The best and fastest way to find and process a condo purchase is to hire professionals to do the research and legwork for you. In the Philippines, they come in three types:

Realtors

All brokers and accredited agents are called realtors, as long as they are a member of the Chamber of Real Estate & Builders Association (CREBA). But not all brokers and agents are realtors, especially the ones performing their duties illegally.

Real Estate Agents

A real estate agent is an individual who works under a licensed real estate broker and assists in selling, leasing, or managing properties. They act as intermediaries between buyers and sellers, helping them to negotiate deals, prepare contracts, and provide information on properties, and they receive a commission from the sale of the unit. 

An agent needs to be accredited by a broker and they do not have the authority to sign documents unless the broker is a co-signatory.

Real Estate Brokers

A real estate broker has a professional license from the Professional Regulation Commission (PRC). They can work independently or manage a team of real estate agents. They have undergone more extensive training and are qualified to supervise real estate transactions. They can also own a real estate agency, hire and manage agents, and provide legal and financial advice to clients.

Important to remember: All brokers, agents, and realtors in the Philippines must follow the Code of Real Estate Service Act (RESA). DIY or transacting through an unlicensed individual is not a wise move and in some aspects of real estate, the purchase can turn out to be illegal. 

After Buying

Once you have received the unit, you will be asked to pay the one-time membership fee for the condominium corporation. If you are not available to accept the unit physically, you can also send a representative to accept on your behalf as long as he/she has a special power of attorney from the consulate.

Owner’s and Developer’s Responsibilities

So who is responsible for the day-to-day running of your condominium complex? This is the responsibility of your condominium corporation that manages this, which is funded by various fees leveled against the condominium owners by the developer that runs their particular complex.

The corporation will normally be in charge of things like the security of the complex, the upkeep of the shared areas, and the general maintenance of the complex. This will include the cleaning and the running of areas like the hallways, car park, reception area, and the complex’s facilities like the communal swimming pool, gym, etc.

As for the unit owner, they are generally responsible for what happens inside their units, such as dealing with wear and tear issues, maintaining and decorating the interior of the unit, and certain repairs.

Regarding any major upgrading or replacement of any of the community areas or the complex building structures, like upgrading the swimming pool or replacing the complex’s gym equipment, these have to be put to the vote to be approved. 

If more than 50% of the owners vote in favor of the motion, then the developers will then action these proposed changes.

So it is important to understand your responsibilities thoroughly and these will be outlined in your purchasing contract, as it will also tell you who bears the cost.

Extra/Hidden Costs

It is well worth considering that owning a condominium may also mean you may have to pay additional annual or regular additional fees, like:

  • Parking fees
  • Surcharges for communal services
  • Shared cost for any upgrade or major repair to communal areas
  • Realty tax
  • Share of realty tax on communal areas
  • Responsible or partly responsible for certain local, regional, or national taxes

Property Taxes

In the Philippines, property taxes are levied on real estate properties and are assessed based on the fair market value of the property. The taxes are payable annually, and failure to pay them can result in penalties, interest, and legal action. 

The Bureau of Internal Revenue (BIR) is the government agency responsible for collecting property taxes. The tax rate varies depending on the type of property and its location. 

For example, the basic property tax rate for residential properties is 1% of the assessed value, while commercial properties are subject to a 2% tax rate. 

Local governments can also impose additional taxes on real estate properties, such as the community tax, real property transfer tax, and business tax. 

To avoid any confusion or penalties, it’s important to consult with a licensed professional or the BIR for more information about property taxes in the Philippines.

Condo Management Fees

Condo management fees in the Philippines can vary depending on the location, size, and type of the condominium unit. 

The average condo management fee in the Philippines can range from ₱50 to ₱150 (Around US$0.90 to US$2.7) per sqm per month. For example, if you have a 50 sqm condo unit, you may expect to pay a monthly management fee of around ₱2,500 to ₱7,500 (Around US$45 to US$135).

However, some high-end condominiums may have higher management fees due to the more extensive amenities and services provided, such as gyms, swimming pools, and concierge services. It’s also worth noting that some condos may charge additional fees for special services, such as parking or pets, so it’s essential to review your contract thoroughly before purchasing a unit.

Rent-to-Own Condominiums

Another viable approach to buying a condo in the Philippines is the rent-to-own scheme. Although it can be a more complicated option but an easier one to qualify for.

This is where the buyer puts down a deposit, a non-refundable Option Fee which is equal to 1-5% of the unit’s selling price. This allows the buyer to rent the property for several years and then buy the property for a pre-agreed price later on.

One important thing to understand is who is responsible during the rental period for things like the unit’s maintenance, homeowner association dues, various property taxes, etc?

Also, make sure you fully understand how much of the Option Fee and rental payments will be taken off the final purchase price.

And remember that the agreed price is binding for both the buyer and seller, so if the housing market booms or collapses later, you still have to pay the pre-agreed price. 

There are two types of rent-to-own schemes: 

  • Lease-purchase is a type of agreement where you rent a property with the option to buy it at the end of the rental period. The purchase price is agreed upon at the beginning of the lease, and you are legally obligated to buy the property at that price if you choose to do so at the end of the lease.
  • Lease-option is where you have the option to buy (or not) the property at the end of the agreed rental period. But you are under no obligation to buy or keep on renting the property and if you so wish, you can walk away from the deal with no further obligation or penalty.

Scams

Common scams to look out for:

The condominium seller does not own the property

You can check this out by going to the local municipal government and requesting a copy of the Certified True Copy of the land title. Also, the Housing and Land Use Regulatory Board, Land Registration Authority, and the Professional Regulations Commission can help you confirm the legitimacy and whether a document is authentic or not.

Build quality can be an issue

Some complexes can look spectacular when they first open but quickly fall apart, not being able to bear wear and tear, and quickly have numerous issues like serious cracks and leaks. 

The best way to avoid this issue is to research a property developer’s track record or to find out from current owners their experience.

Fake awards

Check if any awards the developer or property is given are real and credible. Sometimes they are simply made up to impress a naive buyer.

Not registered with HSAC

In the Philippines, condominiums are regulated by the government-run Human Settlements Adjudication Commission (HSAC), which was until recently known as the Housing And Land Use Regulatory Board (HLURB).

So an immediate red flag will be if a condominium corporation you are dealing with is not registered with HSAC.

The HSAC has the power to hear disputes involving real estate developments and transactions. They also offer a variety of other services, so do check out their website to see how they can help you.

Their website has a useful Automated Net Assistant they are testing, which is designed to help you with real estate adjudication concerns and questions.

Important to remember: The HSAC do charge for some of their services, but generally the fees are reasonable and not excessive and they do have an online fee calculator.

Lastly, if it seems too good to be true, it probably is! So always be careful, do your research thoroughly, and always be a little cautious.

Selling Your Condominium

The crucial thing you must first do is to set the selling price for your property. Sites such as Zipmatch can help you with this by allowing you to see the price of similar condominiums in your area. 

Also, remember to seek professional legal advice when drawing up the purchaser’s contract and for them to help you understand what taxes or additional fees you are liable for regarding the sale of your condominium.

And though a real estate broker will charge you a fee or a commission for their services, they can provide invaluable advice to help you through all this. And give your property the exposure to sell quickly and for a good and realistic price.

Now on to You

So remember your decision to buy a condominium in the Philippines can easily be the very best or worst decision you will ever make. So get local professional advice, do your research, and take your time.

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