The Ins and Outs of Property Reservations

You are eyeing this superbly-landscaped, conveniently-located property from your work and you really want to get your hands on it. However, your preferred Philippines properties are selling like hotcakes. What will you do next? Simple: reserve!

Think of property reservation as a deposit when you rent a house, apartment or condo only that the rented space will not be yours in the future. After paying the reservation fee, you will be entitled to own the property unless the reservation period is exhausted without paying fully or partially (downpayment).

Arlington

Making reservations is very easy. In fact, you can now reserve any of the new houses for sale Philippines online. You just need the following:

  • seller/property specialist,
  • reservation fee, and
  • Reservation Agreement Form.

With the help of the seller, you must determine the availability of your chosen property. After confirming its availability, you may continue to reserve online. Look for the ‘Reserve Now,’ ‘Reserve Online’ or ‘Reserve Here’ button on the developer’s website and proceed accordingly.

Make sure that the Reservation Agreement Form is duly accomplished with all the details and signature at the right places. Usually, the developer or seller can give you a copy of the Reservation Agreement Form if it is not available on the developer’s website. If it is, just print and sign the form. Mail or fax the form to the developer’s office before you reserve your chosen property from the list of properties Philippines online.

Afterwards, you need to pay the required reservation fee. The amount of the reservation fee differs depending on the developer and type of properties Philippines. It can be anywhere from ₱5,000 up to ₱100,000. You may pay the fee in cash or through:

  • bank deposits,
  • online bank transfers,
  • remittance centers, or
  • credit cards.

A proof of wire transfer or remittance is required, which you can also fax or mail. Upon receipt of the reservation fee, the developer will issue an official receipt. Make sure that what you have is an official receipt and not an acknowledgement receipt. Some developers also send welcome letters.

Be reminded also that the validity of the reservation of new houses in the Philippines is only 30 days, after which you have to make a partial or full payment before or on the 30th day from the date of reservation.

Other things that you need to know regarding the reservation of new houses for sale Philippines:

  1. Is it deductible? Yes, reservation fees are deductible from the total selling price. Some developers deduct the reservation fee from the downpayment.
  2. Is it refundable? No, reservation fees cannot be refunded to the person due to the missed selling opportunity the developer suffered from.
  3. Is it transferable? The answer will depend on the reservation policies of the developer. If the transfer is permitted, expect a transfer fee or charge.

Take note that not all new houses for sale Philippines require a reservation. Check with the developer or your seller so you would know what to do next. Do not make a reservation unless you are 101% sure that you will buy the property.

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