How to Buy a Condominium in the Philippines

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

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)

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

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

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

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

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)

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!