Property Reservations 101

AyalaTH

You’ve been seeing this sophisticated and elegant townhouse Manila for sale. Given that it is near your workplace and your favorite Ayala Mall, you can’t help but purchase this property. What can you do? Reserve!

Reservation is your deposit when you rent a house, apartment, or condominium. You haven’t fully owned the property unless you have paid in full or partial, or depending on the terms agreed upon between you and the seller.

You can now have that condo by reserving it under your name. Property reservation is very easy as you only need the following:

  • seller or property specialist

  • Reservation Agreement Form, and

  • reservation fee

Through the seller or property specialist, you will be able to deliberate which property you should buy, depending on different factors and of course, its availability. After considering these details and confirming the property’s availability, you can continue with reserving it online. You may check the developer’s website and look for the “Reserve Now” or similar buttons to proceed. If necessary, you can also contact the developer for clarifications or reserve the property by visiting their office.

photo-1477577314779-8dd53d8e615f.jpgAnother important thing is your Reservation Agreement Form. Carefully fill out the form and check all the details and signatures before passing it. If the Reservation Agreement Form is not available online, the developer or seller will be handing it to you. You can simply mail or fax the form to the developer or seller’s office before you proceed with your reservation. If these options do not appeal to you, you can always visit their office and have this done.

Now you’re finished with choosing the property and submitting the Reservation Agreement Form, you are now to pay the required reservation fee. Reservation fee differs depending on the developer and the type of property you are interested with. It can go as low as ₱5,000 and as high as ₱100,000. Aside from cash payment, you can also pay the reservation fee through the following:

  • bank deposit

  • credit card

  • online bank transferable

  • remittance center

  • and other methods advised to you

You will be asked to send proof of payment so make sure to secure an official receipt. Some only give out acknowledgment receipt so better check with the bank or establishment that you have what you need. Afterward, the developer will confirm your payment by sending welcome letters.

Keep in mind that the validity of your reservation fee for new houses in the Philippines is 30 days. Within this period, you should be able to make a partial or full payment for your property. Better ask your developer with the different payment options that you have.

Lastly, here are some other things that you need to know about property reservations:

1. Is it deductible? Definitely! The reservation fee that you’ve made will be deducted from the total selling price. Others deduct the fee from the downpayment.

2. Is it refundable? Unfortunately, reservation fees are non-refundable. That is why you should be sure with your actions and decisions before you consider reserving a property.

3. Is it transferable? It depends on the policies of the developer or seller. Some won’t let you transfer the fees, and others will charge a transfer fee if it’s permitted.

Be reminded that not all properties in the Philippines require reservation fees so you are to confirm that with your developer or seller. Other developers immediately ask for a downpayment or initial payment. Nevertheless, in whatever reserving and purchasing you will be doing, be sure and secured. Make sure that you will be abiding by the policies you signed for so you can enjoy your property hassle-free!

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