FAQs of Buyers



Q1: Why invest in real estate?


Hedge against inflation. The value of a real property increases as inflation rises.

Residual Value. Property values will never fall to zero unlike all shares or hedge funds.

Hybrid Asset. Property has a capital appreciation of a stock and income producing capacity of a bond.


Excellent Collateral. Real Estate in prime location is always excellent collateral against loans, and allows financing to be secured anytime.


Pre-Development Appreciation. Units in projects that are being sold in pre development phase generally appreciate in value when the project is finished.


Easy to Rent Out. Units in projects that are near malls and other high traffic areas are easy to rent out. Appreciates at an average of 10% per year. Philippine property appreciates at an average of 10% per year.


Q2: Who can own a land or real estate property in the Philippines?


Acquisition and ownership of private lands in the Philippines is limited and/or reserved to Filipinos or to corporations or partnerships where at least 60% of the authorized capital of which is owned by Filipino Citizen.

Foreign nationals or corporations may completely own a condominium or townhouse.


Q3: What are the obligations of a Buyer?


  • Pay the price
  • Accept delivery of possession


Q4: Condominium distinguished from traditional ownership:


Evidence of Ownership – Ownership in the traditional concept is evidenced by an original transfer certificate of title, while condominium ownership is evidenced by condominium certificate of title.


Capacity to Buy – In the traditional concept, alien acquisition is not allowed except in cases of hereditary succession or transfer in favor of former natural-born Filipino citizens subject to the limitations prescribed by Batas Pambansa 185. In the condominium, alien ownership not exceed 40% interest in the project is legally allowed.


Extent of Ownership - The interest of an owner in the traditional concept consist of absolute ownership of the inner and outer structures of the building (the entire building). In the condominium concept, the unit owner is the absolute owner of the space within the interior surface of his unit, but he is only a co-owner of the exterior or façade of the unit.


Q5: What are the Advantages of Condominium Ownership?


  • Enhances affordability
  • Accessibility to the amenities of the city
  • Better security
  • Maximizes land efficiency
  • Lesser costs of facilities, service and maintenance
  • Closer neighborhood relationship


Q6: What are the rights of a condominium unit owner?


  • Absolute ownership of his unit
  • Ownership of the land and common area in proportion to the unit/s owned
  • Exclusive easement of the air space within his unit
  • Non-exclusive easement to common areas for ingress and egress
  • Repair, decorate the inner surfaces of his unit as he pleases
  • Sell, lease, mortgage of his unit
  • Vote and be voted upon during the meetings of the condominium corporation


Q7: What are the obligations of a condominium unit owner?


  • Pay Realty Tax of his unit
  • Share the realty tax on land and common areas
  • Pay insurance of his unit
  • Share the insurance on the common areas
  • Comply with use restrictions
  • Pay dues and assessments
  • Give right of first refusal to condominium corporation or other unit owners in case of sale or lease of his unit (if so required by the master deed)


Q8: What are the extents of interest in common areas of a condominium unit?


  • In the absence of provision in the master deed, all unit owners shall have equal share in the common areas.
  • Master deed may provide for any of the following sharing schemes:
  • Equal Sharing
  • Sharing based on value, or
  • Sharing based on area (area of unit divided by total area of all condominium units)


Q9: Can a foreigner buy a condominium unit in the Philippines?


A: Yes


Q10: Can a foreigner/buyer issue a foreign check to pay for a condo unit?


A: No. A non-Philippine bank check takes about 45 days to clear and be credited and within that period, a unit may be sold to another who can pay immediately.


Q11: What then is the procedure for a foreign buyer to pay to get the unit?


A: He/She can do any one of the following:

  • Open a checking account with a Philippine bank and issue the check/s.
  • Request a friend/relative/associate to open a checking account.
  • Make a Special Power of Attorney (SPA) and appoint your friend, relative or associate to pay for you.


Q12: What is the best thing to do in order to process a smooth transaction if you are based outside of the Philippines?


A: Make an SPA and let your agent/representative act for you. (Caveat: Beware: make sure you have the full trust and confidence of your agent/representative to do the payments and accomplish your transaction).


Q13: What are the regular stages of sale of a condo unit/ or any real estate?


1. First stage: RESERVATION:

Buyer pays the RESERVATION FEE.

Submits a valid ID

Accomplishes an information sheet

Submits an SPA if based abroad (outside of the Philippines)

Enters into a Reservation Agreement.


2. Second stage: COMMITTED SALE (CS)

Buyer pays the 1st Down payment (cash or check).

Buyer completes the documentation of sale transaction:

submits a T.I.N. (Tax account no. Philippine tin)

submits a Community Tax Certificate (CTC or formerly called the Cedula)

submits 3 (2? x 2?) pictures

signs the Contract to Sell (CTS), Deed of Absolute Sale (DOAS) and Deed of Restrictions (DOR)

Issues 12 Postdated Checks if installment payments.


3. Third Stage: BOOKED SALE (BS)

Complete payment of the balance or required installment payment if sale is a contract to sell transaction (installments).


Q14: Are there other charges aside from the net selling price of the unit?


Yes. some of the charges are association fee, credit life insurance, documentary stamps, electric and water connection, issuance of title, registration, transfer tax real estate tax and others. If there is a bank or in house credit applied by the buyers, pre-buying fees and charges are expected like application for credit/processing fee, credit investigation fee, etc. ALWAYS ASK YOUR BROKER WHAT ARE THE OTHERS FEES TO PAY ASIDE FROM THE SELLING PRICE of the unit.