I decided to cancel my purchase, why can’t I get a refund?
Real Estate purchases are big purchases that require careful planning and budgeting. Whether you like it or not, the process of getting one is not as easy breezy like how movies and tv shows sell it. And you’ll go through the same hassle if you choose to cancel or discontinue the purchase of a property, but refund may not be possible.
Canceling a house purchase is not as easy as discontinuing a subscription or choosing the wrong size for a clothing. Canceling a house purchase for whatever reason may result to;
- Lost investment
- Waste of Money
- Waste of Time
Lost of Investment
Choosing to cancel your reservation of a certain property that you wanted and have been eyeing for means lost investment. This property could have had the best location and could have been the right fit for you and your family. And suddenly you choose to discontinue for some reason. This property has been off the market because you chose it or reserved it. This property could have been made available to other clients if only it was available that time.
Waste of Money
Choosing to cancel your reservation or purchase is absolutely a waste of money. Reservation and downpayment or equity payments are not refundable. If you will scrutinize what was written in the reservation agreement form, it is actually stated there, and it should also be mentioned to you by your real estate agent or broker, and also the marketing manager of the development. [Read more about requesting a refund here]
Waste of Time
The time and effort spent from inspecting the property or project development, your trips to the site and the time spent gathering your requirements and documents will be wasted. Once you stop, everything goes to the trash.
So before you decide to cancel your purchase, or even before you even start the process of purchasing a property, think about it countless times. Because once you start investing, you have to commit to a lifetime. Don’t let your money and time come to waste because of half-baked and pressured decisions.
Why Can’t you get a refund?
The only time refund is mandatory is if the developer is at fault in the transaction. If you choose to cancel because of change of mind, change of preferences or whatever personal reason you may have, a refund is optional. Other property developers may issue a refund if the management approves it. But as long as they are not at fault they are not obliged to give a refund. You actually agreed and signed this in your reservation agreements.
If you are really decided to purchase your first home investment today, contact the nearest Filipino Homes Property Investment Endorsers today!
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Charmaine Xy-Za Yape is a founding member and a blogger of Filipino Homes. She is also a PRC and HLURB Registered Real Estate Professional and a Licensed Financial and Investment Advisor. She is an International Realtor member and a Hubspot certified in Inbound Marketing. She is also the co-founder of Iligan Bloggers Society, Inc.