REAL ESATE LAWS AND REFERENCES 5.1

What are the most important things I should know before buying a condominium unit? Will I get complete disclosure?

Documents: Check if the developer has obtained all the necessary documents from the concerned agencies. Although License to Sell is one of the major requirements, it is not a guarantee that the project will be finished. Check the other requirements such as the Contract to Sell which one may find not to ones liking in the contract. the CCT, latest tax declaration and tax receipt for the condo unit. Other documents such as Master Deed and Declaration of Restrictions and House Rules are only showed to buyers who have already reserved for a unit

Track Record of the Developer:  Check what the past developments were, if the project was done with the customer in mind, if the developer or chief officer has scandalous legal cases before.

Density of the Building/Project:  The unit may be affordable but problems may arise later on as there may be too many residents in the building or project that it may just look like a tenement five years from the present.

Parking Slot and Utilities:  A number of parking slots are too expensive. In majority of cases, the parking slot is not included in the total selling or contract price of the unit. some units are not allocated a slot or limited only up to one or two slots depending on the unit purchased. Some projects don’t have enough water or their phone land line will take a few years to be operational.

Payment Terms: The payment terms may look easy but just ask what the consequences are if one is not able to pay up on time. There are developers who are very strict when it comes to paying on time.
Miscelleneous / Transfer Fees The miscellaneous (electric meter, notarial fees, insurance, etc.) and transfer fees are not included in the total contract price. These fees are paid only when the buyer has fully paid for the unit or will obtain a bank loan.

Association Dues: The dues are quite high for some projects. The buyer will have to start to pay the dues upon the turn over of the unit to him or even before that, whether he will live in the unit or not. The start of the payment is written in the Contract to Sell. In some cases, there is a one-time membership fee to be paid plus two months advance for the dues.

DO I GET A COMPLETE DISCLOSURE?

A complete disclosure would depend on the Real Estate Broker or Agent that you are dealing with. In the Philippines, there are agents especially those you meet at the shopping malls distributing leaflets, are mostly new to the real estate selling.  After obtaining  product knowledge on the specific condominium project in few days or weeks, they are stationed in the malls for exhibit. In most cases especially with inexperienced agents, complete disclosure cannot be expected. Moreover, it’s not surprising though that even with most seasoned brokers and agents, you get information only when you ask for it. It is for this reason that it’s best that you have a check list of what information you should need to be able to obtain enough information before making the decision to invest on a condominium a unit.