Condo Reservation Tips For a Successful Real Estate Investment

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Wondering what comes after condo reservation?

If you're a first-time buyer who's about to put down a condo down payment, you might be wondering about what happens next. Reserving a unit is just the beginning; from submitting legal documents to connecting with your developer, you'll need to get a lot of other things done to complete your real estate investment journey successfully.

Condo Arena is here to help you through these next few steps. Discover your post-reservation responsibilities and learn how to proceed in an organized manner with the support of this comprehensive guide.

What happens after you reserve a condo unit?

If you've undergone the Real Estate Comparison process and reserved the property of your dreams, you can expect to go through the following processes to finalize your latest real estate investment.

Key stages after condo reservation

Here are the five key stages you'll undergo after reserving a unit with your developer:

Document Submission - After reserving a unit, buyers like you will need to submit an array of documents within a certain period of time, usually 15 to 30 days or as indicated in your contract. Required documents may include a number of valid IDs, proofs of income, proofs of billing, your TIN, and certain civil status papers.

Make sure to verify the exact list of requirements with your developer, since documents may vary per project or financing type.
Contract Signing - After your real estate agent verifies your documents, they'll prepare a Contract to Sell (CTS) that you'll need to sign within 30 to 60 days. A CTS usually includes the details of your property alongside your agreed-upon payment terms, penalties, and turnover schedule. Remember to read and review this contract as carefully as possible before signing, as this will be your primary legal document and line of protection against possible issues with your developer.
Financing and Payment Processing - Once you've signed your CTS, you'll need to process your final condo downpayment or equity portion, typically at 10–20% of the unit's price. If necessary, consider applying for bank financing or a Pag-IBIG home loan to help fund this remaining balance. Take note, however, that delays in loan approval can affect your ownership timeline, so apply and get pre-approval as early as possible.
Turnover Inspection - When you're done paying for your property and the developer's construction milestones are met, your agent will schedule an inspection prior to complete condominium unit turnover. As a buyer, you have the right to point out any defects or issues to the developer, so they can rectify them before you accept the unit. So make sure to bring a checklist and camera to your inspection to document everything properly.
Move-In and Ownership Completion - After you complete your payments, approve your inspections, and sign the Deed of Absolute Sale, you can finally move into your new home. There may be some associated final costs that you'll need to cover, like taxes, transfer fees, and association dues. Remember to keep records of these and all your other documents organized for future reference, or for the potential resale of your unit.

Condo turnover and inspection guide: what to expect

A major aspect of the post-reservation process is your comprehensive condo inspection and turnover. Here are some of the most important things to expect for this next step in your ownership journey.

Preparing for your condo turnover

As you prepare for this process, remember to keep the following key points in mind to ensure a smooth and problem-free experience:

Pre-turnover inspection process - Before your turnover, conduct an ocular of your unit and take note of any structural defects for correction. These defects may include cracks in the foundations, damage to windows or doors, and other architectural issues that don't pass your basic condo turnover checklist.
Property inspection checklist - Once you've finished the initial architectural inspection for your property, make sure to prepare another condo inspection checklist for the remaining finishes, utilities, and fixtures. Remember to have a checklist for your documents as well, so everything you need is on hand.
Your rights in case of delay - If the process isn't completed due to developer or construction issues, you may have the right to rescind or cancel your contract, file legal documents for the developer to deliver your property, seek compensation for losses incurred, or even have your future payments suspended without penalty. These rights in case of condo turnover delay should be found in your contract, with penalty clauses requiring the seller to pay or shoulder certain fees until they turn over your unit completely.

Post-reservation FAQs

You might have some questions for your property developer after reserving your unit. Here are some answers to common buyer FAQs so that you can plan ahead:

What happens if I miss the document deadline? Generally, your real estate agent should be helpful in reminding you about submission deadlines for a property purchase. Unfortunately, if you completely miss out on your document deadlines, your reservation fee will likely be forfeited, and you might lose the property entirely, depending on your CTS.
Can I change payment terms after a reservation? It will depend on the agreement you signed with your agent or developer, but unless otherwise stated in the contract you probably won't be allowed to change terms after reservation. If you are allowed to amend certain payment terms, you'll likely have to come to a mutual agreement with your agent and co-sign on the changes.
How long before I can move in after turnover? As long as you’ve received a clearance document from your agent and have done your thorough unit inspection, you should be able to move in and utilize your unit straightaway.

Common issues when buying a condo

Need help dealing with certain homebuying issues? Here are some tips for troubleshooting typical delay and contract signing concerns:

What to do if the CTS or turnover is delayed - If you want to take legal action for a delayed CTS or turnover, make sure to document all your communications with the developer first, including emails, physical documents, and conversations. Then, consult with a lawyer to craft a demand letter outlining the timeline delay and requested solutions, as an initial amicable attempt to resolve the issue. Not only will a lawyer help you craft a demand letter, but they'll also help you take legal action by representing you in court or administrative proceedings.
Handling changes in payment terms or developer policies - Under Presidential Decree No. 957 (PD 957), developers aren’t allowed to suddenly extend deadlines or change payment terms without valid reasons or client agreement. Contract amendments must be mutual, so make sure to keep in touch with your unit's agent so they don't make changes without your consent.
Protect your rights under Philippine real estate law - According to Article 1191 of the Civil Code, you’re allowed to seek the cancellation of a contract or demand the developer to complete construction and address potential defects, whenever warranted. You should also be able to report your concerns to the Department of Human Settlements and Urban Development (DHSUD) for cases of delayed turnover or substandard construction.

Given all these potential issues, make sure to consult with a property lawyer, experienced agent, or financial adviser before you proceed with your purchase. By working with an expert in the field, you'll gain informed insights and make the right decisions for a successful real estate investment.

Final reminders for investing in real estate

Enjoy a smooth and successful property buying experience with these final post-reservation takeaways:

Know your rights as a buyer. By familiarizing yourself with your contract and the relevant laws, you'll be able to protect your legal and financial rights in case of unexpected delays.
Keep a record of everything. Make sure to keep a copy of all documents, emails, and communications throughout this process, and to organize them for your ease of access.
Work with real estate experts. Consult a property lawyer, financial adviser, or real estate agent to ensure your needs are met and your rights are protected during this major financial commitment.

Still on the lookout for the best real estate investment? Find the perfect choice on theProperty List to begin your buying journey with Condo Arena.