Steps to make a reservation for a pre-selling property
The search is finally over. After all the site trips and meetings, you finally found the property that is for you and that fits you. Congratulations! You are now ready to reserve your unit with your real estate agent/broker.
First time home buyer? Prior to coming to the developers’ office, make sure you have the five basic requirements for reservation with you.
Here’s what will happen during the reservation day;
1. Meet with your Real Estate Agent/Broker at the developers’ office for the reservation.
During this time, you may ask last-minute questions and some clarifications before you officially sign the reservation agreement. If everything is clear and okay with you, then you may proceed with the reservation.
2. Completely sign the buyer’s information sheet.
Make sure all information is correctly spelled and coincide with the documents that you have. If married, both spouses must be present to sign the reservation agreement, unless if the other spouse is out of the country.
In cases where the spouse or the primary buyer is out of the country, the documents and reservation agreements may be accomplished by their chosen SPA (Special Power of Attorney).
3. Choose your desired Unit.
Make sure that you as the buyer agrees to the location and price of the unit to be reserved. Reservation fees are non-refundable and non-transferrable. If later on, you decide to move to another unit, another floor or another lot location, that will invalidate the first reservation and you will have to pay for the reservation fee of the other unit where you wish to transfer (assuming it’s in the same project/condo).
4. Pay the reservation fee or Option Fee.
Make sure you have your cash or check for reservation. For pre-selling properties, The developers will give you the sample computation of the equity payments and break down of fees prior to the official reservation. Make sure you are aware of your obligations and you agree as to the amount and the term of the equity period or downpayment period before signing. Have your real estate agents/broker double-check the documents for possible typographic errors.
If you agree with the term sheets and computations, that’s the time that you will be ushered to the Cashier for the payment of your reservation fee. Make sure you are 100% sure because Reservation Fees are non-refundable and non-transferrable.
5. Sign the term sheets.
The term sheet will contain the Total Contract Price, The Reservation Fee, Transfer Charges or Miscellaneous fee and the breakdown of the equity monthly payments or what payment option you choose. Basically your monthly obligation to be paid directly to the developer as equity payment will be stated in a term sheet. Make sure you are signing the payment terms that you agreed with. It will also contain the payment schedule that you as a buyer need to follow.
Equity payments are most of the time in the form of post-dated checks that you as a buyer need to accomplish and submit. The developer will warehouse these checks and will deposit monthly. Check warehousing is done in a developers’ bank, thus the developers will not be storing these checks in their offices.
6. Sign the Reservation Agreement
This document will contain all the information about your purchase. Please read the agreement carefully and ask questions if there are things you don’t understand or disagree with. This document will symbolize that the unit or location you choose is final.
Reservation fees are for specific units. And most of the time it’s non-refundable and non-transferrable. Even if it has the same total contract price.
7. Claim copies of your documents with you before you leave.
Make sure you have the following documents before you leave the office.
- Official Receipt of the reservation or Acknowledgement Receipt.
- Buyer’s copy of the Reservation Agreement
- Copies of the Computation Sheets and Term Sheets
Congratulations! You have just reserved your desired unit!
So basically we have just given you what will actually happen during the reservation day. How much time will be spent in this process varies from one developer to the other. That would really depend on their system, however, setting your expectation as to what will happen on that day, will give you an idea of what will transpire and probably schedule your time accordingly. Should there be misses at least you can give a reminder or inform the officer or your real estate agent/broker about it.
If you have the desired property already or you still need to advise on what property to purchase, contact your Filipino Homes Agent/Broker today.
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.