Photo courtesy of UX Indonesia via Unsplash
When buying a condo, it's all too easy to become engrossed in the glossy renderings, pre-sale deals, and excitement of owning a high-rise unit — only to discover later that you didn't fully understand the total costs, the responsibilities you've agreed to, or exactly what you're getting.
Many first-time condo buyers enter into a reservation or contract without understanding what is included in the price, how much the ongoing costs will be, or how maintenance and management will impact their lifestyle and budget. In the Philippines, where condo prices have risen and supply is increasing, such oversights pose a significant financial risk.
That is why the article focuses on questions to ask before purchasing a condo — questions that every potential buyer should ask developers, agents, or property managers. We'll discuss not only pricing and payment conditions, but also building quality, ongoing management, developer reputation, and future-proofing your investment — all to make a prudent selection rather than a hasty purchase.
Between 2015 and 2024, prices for mid-to-low-segment condominium units in Metro Manila increased by more than 300%, while typical family earnings increased by only about 21%. In other words, strong growth, growing prices, and increased expectations require purchasers to ask more questions before proceeding.
With that in mind, let us now move on to the first major topic: major questions about condo pricing and payment terms.
Key questions about pricing & payment terms
When thinking about buying a condo, it's critical to understand the whole cost of ownership upfront. You don't want surprises after you've committed, from the initial down payment and reservation fees to the monthly amortization and all those hidden expenses in the tiny print. This section will walk you through the most important financial questions you should ask so you can move forward with confidence rather than hesitation.
Here are the essential questions you should raise with the developer or agent:
What is the Total Contract Price (TCP), and what does it include?
- Ask what the TCP covers — does it already include VAT, parking space, documentation fees, transfer taxes, and other administrative costs, or are those added on separately?
- Knowing exactly what you’re paying up front helps you compare offers and avoid “hidden extras.”
What are the required down payment and reservation fees?
- How much is due upfront? Is the reservation fee refundable or non-refundable?
- How does the down payment apply toward your total balance?
- Are there milestones (e.g., 20% on reservation, 30% on slab up, etc.) you need to hit?
What are my payment term options?
- Can you pay spot-cash? Is there a deferred payment plan? What are the in-house or bank-financed options?
- What interest rates apply to each option? Are rates fixed or variable?
- Are there early payment discounts or penalties for early payoff?
What are the penalties or consequences for missed payments?
- Is there a grace period? What are the late payment fees or interest charges?
- What happens if you default? Can the developer cancel the contract or forfeit your payments?
Are there any hidden or miscellaneous fees I should expect?
- Does the developer charge processing fees, documentation fees, move-in fees, or other “hidden” line items?
- Are these charged at turnover or after occupancy?
Are there pre-selling discounts or early-bird promos?
- Are you eligible for a discount if you book early? What are the terms and expiry dates?
- Ask for official documentation of the offer to avoid misunderstandings.
What are the estimated monthly association dues, and how are they computed?
- How much will your monthly common-area/amenity dues be? For example, in Metro Manila, many condos charge around ₱ 80-150 per sqm per month for association dues.
- How are these dues calculated (by floor area, saleable area, etc.) and what services do they cover (security, janitorial, utilities, amenities, etc.)?
Are there additional taxes or insurance requirements I should prepare for?
- After turnover, you will still pay annual real-property tax and possibly fire or unit insurance. For example, one guide puts closing costs around 9-10% of the purchase price.
- Will the building or developer require you to carry insurance for the unit or common areas?
Can I get a sample computation for both in-house and bank financing?
- Ask to see a written breakdown of payments for each option so you can compare monthly amortisation, interest, term length, and total out-of-pocket cost.
- This lets you assess affordability and compare with other offers.
Who will manage the property after turnover?
- Will the property management be handled by the developer’s in-house team, a third-party PMO, or eventually turned over to a condo association (homeowners’ corporation)?
- The quality and consistency of management affect long-term upkeep and value.
What are the maintenance policies and repair responsibilities?
- Clarify what you (as the unit owner) are responsible for vs. what the condo corporation/managers handle. For example: individual unit maintenance, repairs inside your walls, vs. common-area repairs, structural works, lifts, façade.
How often are association dues or other fees adjusted?
- Because inflation, rising utility costs, and ageing equipment drive increases. Some projects see dues going up 5-10% per year.
- Are there by-law limits to increases? How will you be notified?
Are there rules on renovations, leasing, or pets?
- Before you buy, know if there are restrictions on unit modifications, long-term leasing, short-term rental, or pet ownership. These can affect flexibility and rental income potential.
Read the condominium bylaws and management agreements carefully.
- These documents contain the detailed rules and governance of the building. Don’t skip them. They define the developer’s obligations, unit owner rights, association dues, management structure, and penalties.
Before you sign any contract, be sure you understand exactly what you're paying for, how much it costs (now and in the future), and what obligations you'll have as an owner. Asking these questions can minimize misunderstandings, budgeting errors, and unexpected surprises later on. With the appropriate knowledge, you'll be much better positioned to negotiate terms, compare possibilities, and make an informed selection.
Next, we'll go into questions about turnover, documentation, and future costs, which will teach you what to ask about building handover, titles, warranties, and long-term responsibilities.
Questions about turnover, documentation, and future costs
Photo courtesy of Juno Jo via Unsplash
Before you hand over the final payment for your condo purchase, you should understand what occurs following the buyer-seller handshake – the turnover process, the paperwork to expect, and the range of future expenditures you'll incur. Being realistic about post-purchase duties, rather than just the excitement of "move-in day," will help you avoid surprises and protect your investment.
Here are the key questions you should ask — and why each matters:
When is the expected turnover date, and what are the conditions for delay?
- Ask for the scheduled turnover or handover date in writing, and clarify what constitutes “turnover” in the contract (e.g., Certificate of Occupancy, punch-list completion, unit ready for occupancy).
- If the turnover is postponed beyond the agreed date, you should know your rights under Presidential Decree No. 957 (PD 957) or other applicable laws: for example, buyers may stop further payments, demand specific performance, or ask for a refund plus interest.
- By clarifying this upfront, you avoid the risk of paying full price but receiving occupancy much later than expected.
What warranties does the developer provide?
- Ask: What are the warranty coverage periods for workmanship, finishes, mechanical systems, and structural integrity? For instance, the law in the Philippines may require a 1-year workmanship warranty and a 15-year structural warranty under certain conditions.
- Verify: Are the warranty terms in the contract? What happens if defects appear outside normal wear-and-tear? Who handles the claims — the developer or a managing firm?
- Importance: Even after turnover, these warranties protect you from unexpected repair bills if the developer’s workmanship falls short.
What are the recurring costs after turnover?
- Ask for guidance on annual real-property tax (RPT), utility subscriptions (water, electricity, internet), association dues, and special assessments. For example, one guide from DMCI Homes explains this can include fees for major repairs and common-area insurance.
- Understand what constitutes “special assessments” (one-off charges outside regular monthly dues) and how often they occur (e.g., major façade painting, elevator replacement).
- Importance: Knowing these helps you build a realistic budget for ownership — it’s not just the purchase price but living costs too.
How long does it take to receive the condo title or Certificate of Condominium Title (CCT)?
- Ask: After full payment and turnover, what’s the timeline for title issuance (e.g., Deed of Absolute Sale, registration with the Land Registration Authority)? Who handles it — the developer or a law firm?
- According to DMCI Homes' buyer’s guide, the process may take from several weeks to months after turnover, depending on the developer and bank financing.
- Importance: Without proper title registration, you may face hurdles in resale, bank financing, or claiming full ownership rights.
Would you recommend consultation with a property lawyer, an experienced agent, or a financial adviser?
- Yes — before you commit, it’s wise to have professional input. A property lawyer can check your contract for delays, warranty terms, developer obligations (per PD 957) and help interpret the fine print. The agent or adviser can model future costs and how your financing aligns with your budget.
- Importance: This extra step increases your confidence and prevents you from signing agreements you don’t fully understand.
Purchasing a condo does not end when you hand over payment; additional duties begin. By inquiring about turnover dates and conditions, developer warranties, recurrent ownership expenses, and title issuance, you may maintain control and reduce risk. Combining this with competent counsel further protects your investment.
Whether you're a first-time buyer or looking for your next investment, always prioritize honesty and quality. Condo Arena allows you to conveniently search and compare real estate properties — your reliable partner in locating the ideal condo to suit your budget, lifestyle, and long-term objectives.
