Table of Contents
Decide: Pre-Selling vs Ready-for-Occupancy (RFO)
Before buying, understand the two main options:
Pre-Selling Condos
- Lower prices (typically 20-30% cheaper than RFO)
- Flexible payment terms during construction
- Risk of delays or developer issues
- Cannot move in immediately (2-5 years)
Ready-for-Occupancy (RFO) Condos
- Move in immediately after purchase
- What you see is what you get
- Higher prices but no construction risk
- Can inspect actual unit before buying
Set Your Budget
Calculate all costs involved:
Purchase Costs
- Down payment: 10-20% of unit price
- Reservation fee: PHP 20,000-50,000
- Monthly amortization (if financing)
Additional Fees (5-8% of unit price)
- Documentary Stamp Tax: 1.5%
- Transfer Tax: 0.5-0.75%
- Registration Fees: ~0.5%
- Notarial Fees: 1-2%
- Move-in fees: Varies by developer
Recurring Costs
- Association dues: PHP 50-200 per sqm/month
- Parking fee: PHP 3,000-10,000/month (if separate)
- Utilities (water, electricity, internet)
Choose the Right Location
Consider these factors:
Lifestyle Factors
- Proximity to workplace/school
- Access to public transportation
- Nearby amenities (malls, hospitals, parks)
- Noise levels and neighborhood safety
Investment Factors
- Rental demand in the area
- Future infrastructure projects
- Price appreciation potential
- Developer's track record in the area
Understand Condo Ownership Rules
Key legal points to know:
For Filipino Citizens
- Can own any condo unit without restrictions
- Full ownership of unit and proportionate share of common areas
For Foreign Nationals
- CAN own condo units (unlike land)
- Limited to 40% of building's total units
- Must verify available foreign quota before purchase
- Same ownership rights as Filipinos
Condominium Corporation
- All unit owners are automatic members
- Governs building rules and maintenance
- Board elected by unit owners
Review the Condominium Documents
Request and review these documents:
Essential Documents
- Master Deed and Declaration of Restrictions
- Articles of Incorporation and By-Laws
- License to Sell (from DHSUD/HLURB)
- Certificate of Registration
- Approved building plans
Financial Documents
- Association dues breakdown
- Reserve fund status
- Building insurance coverage
- Any pending special assessments
Inspect the Unit and Building
For Pre-Selling Units:
- Visit the showroom unit
- Check model unit specifications
- Review floor plans carefully
- Verify view and orientation
For RFO Units:
- Inspect actual unit multiple times
- Check for defects (walls, flooring, fixtures)
- Test all utilities (water pressure, electrical)
- Visit at different times of day
- Check amenities condition
- Talk to existing residents if possible
Secure Financing
Financing options for condos:
Bank Financing
- Interest: 6-9% per year
- Term: Up to 20 years
- Requires unit to be RFO or near turnover
- Income verification required
Pag-IBIG Financing
- Interest: 5.375-6.375% (lowest rates)
- Term: Up to 30 years
- Maximum loan: PHP 6 million
- Must be Pag-IBIG member
- Available for RFO units only
In-House (Developer) Financing
- Flexible down payment terms
- Available for pre-selling
- Higher interest rates (12-18%)
- Shorter term (5-10 years)
Complete the Purchase Process
Step-by-step process:
1. Reservation
- Pay reservation fee
- Sign Reservation Agreement
- Submit requirements
2. Contract to Sell
- Sign CTS after paying equity
- Review all terms carefully
- Get legal advice if needed
3. Final Payment & Turnover
- Complete down payment
- Pay remaining balance or start bank financing
- Sign Deed of Absolute Sale
- Receive Condominium Certificate of Title (CCT)
- Conduct final unit inspection
- Get keys and move in!
Tips for Foreign Buyers
Verify Foreign Quota
Before purchasing, ask the developer for the current foreign ownership percentage. The 40% limit is per building, not per project.
Consider Corporation Ownership
A Philippine corporation (60% Filipino-owned) can own both land and condos. Consult a lawyer about this structure.
Long-Term Lease Alternative
If buying isn't an option, you can lease a condo unit for up to 50 years (renewable for 25 more years).
Understanding Condo Fees
| Fee Type | Typical Amount | What It Covers |
|---|---|---|
| Association Dues | PHP 50-200 per sqm/month | Building maintenance, security, common area utilities, staff salaries |
| Reserve Fund | Included in dues or separate | Major repairs, equipment replacement, building improvements |
| Parking Fee | PHP 3,000-10,000/month | Parking slot maintenance (if not purchased) |
| Special Assessments | As needed | Unexpected major expenses not covered by reserve fund |