10 Questions to Ask Before Buying a Condo

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10 Questions To Ask Your Property Agent Before Buying a Condo

Buying a property is a giant leap you take with caution. With several condos for sale today, choosing the one for you is a crucial decision that needs careful evaluation to make the most of your invested money.

To be safe and sure, deal only with a legitimate real estate agent that represents a credible and trusted developer. As a buyer, exercise due diligence in acquiring real estate properties.

Things to Ask Your Agent

Be sure that you are buying a quality condo unit. Take note of these important questions, and ask them to your property investment consultant before sealing the deal.

  1. 1. Who is the developer? Is this project registered and has a license to sell?

With the rising number of real estate developers nowadays, reputation becomes imperative. Check whether your developer has a reputable name in the real estate industry to ensure legitimacy.

Information can be verified through the Housing and Land Use Regulatory Board (HLURB). Since background checks are vital, you can ask for your agent or broker’s NBI Clearance aside from his PRC license number.

2. In what area does the property belong to? Where is the exact location?

Living in a strategic location, particularly in an area near your school or office, affords you easy access to your lifestyle needs. Check also if the project location is near the fault line and susceptible to flooding, erosions, and other natural disasters. Visit the site to know its natural topography. In short, research. It pays to do your homework.

3. How long will the project be completed? When is the target turnover?

Knowing the target completion and turnover dates of the project will make planning easier for you, especially if you have existing contracts with your current residence.

4. What are the standards of the structure? Can I customize designs?

Some properties can be altered according to the owner’s liking. Buying a condo is a different story. You might need to ask about the terms and conditions for renovations if you want to personalize your space or add and remove flooring or storage.

5. What are the rules and regulations of the property?

Condominiums observe rules and policies on certain aspects such as pet ownership, leasing out your unit, and renovations. If you wish to do any of the following, review the rules and regulations to avoid penalties or other related issues.

6. How is the property managed?

Regardless if you’re planning to buy a house or condo unit, ask if there’s a homeowner’s association managing the entire subdivision or building, and get their contact information for concerns or emergencies. These kinds of information can come in handy in the future.

7. What are the payment terms? What fees are included in it?

Be sure that payment terms, including monthly amortization, the number of years to pay, and the required down payment, are all clear to you. Monthly fees may vary per property. Knowing these can help you manage your finances, as well as your welfare should you decide to purchase that particular condo unit.

8. What documents do I have to submit upon reserving a condo unit?

After paying the reservation fee and completing the Registration Agreement Form, the following documents will be required: official computation, payments, valid IDs, BIR 1904, credit investigation / name check result, bank application, SPA (notarized, consularized SPA), and donor’s tax advice.

After committing to pay the purchase price and complying with the other terms and conditions, the developer will issue a Contract to Sell (CTS). This serves as the developer’s promise to transfer the ownership and physical possession of the property to you.

After paying for the unit in full, a Deed of Absolute Sale (DOAS) would be executed by both the developer and buyer. This proves the transfer of property ownership to the buyer, which is subject to the buyer’s compliance with the Deed of Restrictions or Master Deed with Declaration of Restrictions ruling the project, as well as the terms and conditions of the sale.

Lastly, the Register of Deeds issues the buyer a Condominium Certificate of Title, which would serve as proof of ownership of a condo unit relevant to where the property is located.

9. What are my financing options?

Different condo developers offer different financing options—bank financing, in-house financing, Pag-IBIG home financing, and SSS home financing, among others. Be sure to know which financing options are accepted by your developer.

10. Who will shoulder the water and electric fees? Who is the operator of the building’s water system?

Ask these questions to help yourself in managing your finances once you move. You should also know who to contact should there be damages or repairs in your property.

Agents should serve as your guide when purchasing or investing in a condo unit. Ask them everything you need to know about your prospective property to guarantee a wise investment.