Payment terms confuse many first-time buyers, especially those buying from abroad. This guide explains the usual stages in plain language. Exact terms differ by project, so always get yours in writing.
1. Reservation fee
A fee paid to hold a specific unit while you finalize your decision and documents. Ask whether it is refundable, partly refundable or forfeited if you back out, and by what date you must complete the downpayment terms.
2. Downpayment
A percentage of the price, often paid in monthly installments over a set period for pre-selling projects. Ask for the exact percentage, number of months, and the monthly amount. Confirm there is no hidden charge in the schedule.
3. Balance payment
The remaining amount is commonly settled through bank financing, Pag-IBIG financing for eligible members, in-house financing where offered, or full cash. Requirements and interest rates change, so confirm directly with the lender. Pag-IBIG has specific membership and contribution requirements, which you should verify.
4. Turnover
This is when the unit is ready and handed over to you. Before accepting, inspect it, list defects and ask for repairs. Do not pay the balance or sign acceptance until you are satisfied.
5. Fees and costs around turnover
Budget for items such as transfer-related charges, documentary stamp tax, registration fees, move-in fees, association dues and the cost of any furnishing. Ask the sales team for an itemised list so there are no surprises.
Pre-selling vs ready for occupancy
- Pre-selling: you pay over time while the building is constructed; turnover is in the future
- Ready for occupancy (RFO): you can see the finished unit; terms are often shorter
Questions to ask before you reserve
- What is the total contract price and what is included?
- What are the downpayment percentage and schedule?
- What are the refund and cancellation terms?
- What is the expected turnover date and what happens if it is delayed?
- What other fees apply at turnover and monthly after?
Frequently asked questions
What is the difference between reservation fee and downpayment?
The reservation fee holds the unit. The downpayment is the larger portion of the price paid in installments. The reservation fee is usually credited toward the total, but confirm in your agreement.
Can I pay from abroad?
Many projects accept bank transfers or online payments to the developer’s official account. Confirm the method and get official receipts.
Keep reading
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Roger “Je” Ursos is a licensed Philippine real estate broker (PRC License No. 0028079). This article is general information, not legal, tax or investment advice. Property prices, terms and government rules change, so always confirm current details before you commit.