What is the procedure of buying a property when I don’t have the time yet to come over to the Philippines?
You can purchase without necessarily coming over. First, you select from this site the specific property you are interested in. We can send you an updated map of the subdivision (and in the case of a condo, its floor plan) From the map, you can choose the specific location you want to reserve. Upon receipt of your payment “bank to bank”, or through your SPA, the unit of your choice will be reserved for you in 30 days. Within this 30 day period, all documents required will have to be submitted and a contract shall be signed. The original shall be sent to you for your original signatures and to be sent back for notarization here. After notarization and after receiving your down payment “bank to bank”, one of the notarized copies shall be sent to you again for your copy. The reservation is always deductible to your down payment.
For your monthly amortizations, there are two possibilities:
(1) There are developers who require issuance of post dated checks for at least one year. In this case, your SPA here is required to open a bank checking account here in your name and post dated checks shall be submitted to the developer. Before each check becomes due, you can fund this check by again, depositing the money bank to bank. Or, you may want to come over personally, open a bank account here, and issue post dated checks to the developer.
(2) When a developer allows, you may just at your own option, send the monthly amortization bank to bank direct
to the developers account.
What are the deed of restrictions to the use of the unit?
Deed of Restriction would differ from one subdivision to another. Generally, your use is restricted for the well being of all homeowners such as the height of the house is limited to prevent the blocking by neighboring houses of a nice view. It also limits the use to residential purpose and disallows livestock, poultry, the building of factory. Also, it covers easement on each side etc. The Deed of Restriction for each project is made available to you upon request before signing any contract.
What is the assurance that the project will be finished?
The first step is to choose a credible Developer with proven track record of developing projects that are finished on time. We can help screen out these developers and recommend to you those whom you can trust. We are accredited by virtually all developers in Cebu, and being not exclusive in any one of them, we can disclose everything for you positive or negative about the developer.
If the contract is already signed and payments already made and still eventually, the project is not completed on time, we can impose a provision of law in the Philippines that if the Principal/developer fails to complete the project on time, 100% of all payments shall be refunded less penalty interest plus interest legal rate.
For house and lot package, can we inspect while construction is going on? Can we suggest changes in plans such as color and designs?
Very few subdivisions disallow this. Normally, these are the one who develop large projects and cannot allow delays due to changes of plans. There are developers who are moderate about this and entertains changes in plans by sitting with the buyer one time and agree on changes of plans. But majority entertain changes by buyers from time to time and without much restrictions.
Is the reservation refundable? Is it deductible from the selling price?
Reservation which is usually a very small amount ranging from P10,000.00 and up will entitle you to 30 days hold of your unit in your favor. Since the developer refuses to sell this to anyone interested within the period of reservation, the reservation is equitably not refundable. All reservations are deductible to the selling price.
What are the financing schemes or manner of payment available?
Generally, you can choose from one of the following:
(a) In-house financing
(b) Bank financing
(c) Pag-ibig loan (HDMF)
(d) Cash purchase with discount
Availability of financing would depend on which type is conveniently adapted by developer. Some developers are superior on one financing scheme and appear to be disadvantageous on other types of scheme. It is ideal that you contact us for more detailed information of each developer’s financing scheme offer and we can disclose to you the advantages as well as the disadvantages.
How much is the lowest price available in the area? The smallest lot available?
Availability of lowest price and smallest size may change everyday. It is ideal that you contact us thru email so we can send you a subdivision map showing availability of lots of different sizes as well as the lowest price in the area.
How much is the monthly association dues?
This would depend on the Subdivision you have chosen. Association dues are usually very minimal which would normally range between P300.00 to P500.00 per month. This represents your share of the maintenance of the subdivision which includes salaries of the guards, garbage disposal, repair and maintenance of amenities and facilities. But the developer does not impose this on the residents. Once the project is completed, the residents shall form a homeowners association and you being one of the members/officers, will be among those who will govern the subdivision and determine how much association dues to impose on each homeowner.
Condominium maintenance fees are usually higher and are based on the floor area of the unit occupied. You may contact us for a more specific amount of maintenance fee for each condominium.
Can a foreigner own real estate properties in the Philippines?
Foreigners do enjoy absolute ownership of a condominium unit. Ownership is evidenced by Condominium Certificate of Title (CCT).
The ownership of land and house and lot are allowed only to Filipinos and foreigners who are formerly natural born Filipino Citizens. If a foreigner is married or related to (for example) a Filipina, the title shall indicate the Filipina name “married to (name of a foreigner)”. Whatever happens along the way, there are ways to get back the money invested by the foreigner.
As a foreigner, can I apply for loan with your local bank even if I’m not permanently residing in the Philippines? How much is the interest rate?
There are banks who do not allow if you are permanently residing abroad but there are banks who will. For example ChinaBank allows provided that you submit the needed documentary requirements and the credit check will be though phone. The rate is between 10.5% to 14% interest depending on the bank of your choice and also depends on the number of years fixing. Yearly fixing offers lower interest than a 3-year or 5-year fixing.