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September 17, 2011

How to Buy a Condo? Take a Peek at the Process.

Pic from RE Network
Condo buying process can be tedious with all the papers that needs to be filled up, supporting documents that needs to be prepared and application that needs to be done (for loans and checks, if you don’t have one yet.). It would help if you know the process beforehand so you would not be cramming because you only have a certain period (usually 30 days from reservation) date to complete your purchase or else your reservation fee is forfeited. (It works like “Option money”). The process of buying a condo that I will share is specifically for DMCI homes but nevertheless, the same process may also apply to other developers although there might just be slight differences in the process and terms but in essence it’s the same.

 
It would be best to ensure that you have the following before you reserve a unit.
  1. A bill under your name (utilities or credit card) that is more than six months already.
  2. A checking account
  3. You have at least 2 valid government issued IDs. (SSS, Passport, Driver’s License, Voter’s ID and others). Valid means it is not expired.
  4. Recent Income Tax Return
  5. Marriage certificate for married buyers.
  6. Special Power of Attorney (SPA). If you’re working abroad, you’ll need to assign a representative to transact in your behalf here in the Philippines. You will have to issue an SPA. (SPA forms are supplied by your broker)
  7. Reservation fee. Cash or check.

The Buying Process

Step 1. Reserve a unit

Be sure that your preferences as to unit location and orientation has been acknowledged by your broker and that you have been well informed on the actual computation, closing cost and other charges that may apply. To reserve a unit, you need to fill up a Reservation Agreement form (1 each for every unit and parking space; Client Registration Form and a Reservation Fee, (Cash or Check) that can be 20,000.00 – 50,000.00 depending on what project you will reserve. Parking space reservation is 10,000.00

Step 2. Processing of NOA (Notice of Approval) Submit within 5 days from Reservation date.

The forms you need to submit are as follows:
  1. Reservation Agreement form
  2. 2 Valid /Government issued IDs with clear signature and not expired
  3. Proof of billing (Utilities, credit card, etc) that has the same mailing address on the Reservation Agreement Form
  4. Photocopy of the Provisional Receipt for the reservation fee
  5. Signed computation sheet (Computation supplied by the broker)
Step 3. Contract Preparation (3 days from Release of NOA)
  1. Reservation Agreement form
  2. Completely filled Client Reservation Form
  3. 2 Valid /Government issued IDs with clear signature and not expired
  4. Proof of billing (Utilities, credit card, etc) that has the same mailing address on the Reservation Agreement Form
  5. Photocopy of the Provisional Receipt for the reservation fee
  6. Signed computation sheet (Computation supplied by the broker)
  7. Marriage certificate for married buyers
  8. Proof of TIN (TIN ID, ITR, BIR Application Form)
  9. For accounts with assigned SPA (Special Power of Atty) SPA Info Sheet SPA Form (4 copies original and notarized) 2 valid IDs of the SPA, Consularized SPA for International clients

Step 4 – Docs Completion (Must be submitted within 30 days from Reservation date)
  1. Signed Contract (Contract to Sell / Deed of Absolute Sale)
  2. Complete post dated checks.

Now that you know, it’s no sweat to purchase your condo unit.


Live a Beautiful Life! 
 
Ryan Rillorta
Real Estate Broker
PRC Reg. # 5578


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5 comments:

  1. Looks like buying a condo really need a great time to process. It also important to have all the papers and files to have a good agreement between the sellers and buyers. Your information regarding this topic would really help buyers to have an idea on what to do in buying a condo. Thanks for sharing it to us.

    Condo in Philippines

    ReplyDelete
  2. You can know how to buy a condo. Take a peek at the process here.useful post

    ReplyDelete
  3. Good tips for buying in the peak period.

    ReplyDelete
  4. On buying a condo there's a lot of processing to be made and a things to consider. I am glad that I drop by here and found those important information that can help us before buying a condo. I appreciated it. Thanks for sharing it.

    You may also CHECK this.

    ReplyDelete
  5. Good day! Thank you so much for this very informative post! this will surely help first time buyers of condo as well as those that are still confused when it comes to buying condos.
    I must admit that buying a condo takes a long process.

    ReplyDelete

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