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The 50 year period refers to the lifespan of the condominium corporation which can be renewed after 50 years as stated in the Corporation Code of the Philippines.


Today, real estate developers offer affordable terms to would be condominium home owners and investors from 0% interest up to three (3) years amortization and twenty percentum (20%) equity payable to 36th to 60th month depending on the project turn-over. Also, bank financing, pag-ibig financing and in-house financing are readily available to most developers after payment of the equity portion.


Ownership of land in the Philippines is regulated by the 1987 Constitution and the Public Land Act, among others. The Constitution provides that except in cases of hereditary succession, only those individuals, corporations and associations allowed to acquire or hold lands in the public domain can acquire private lands. In this connection, Commonwealth Act No. 141, otherwise known as the Public Land Act, expressly limits the acquisition of land in the public domain to Filipino citizens, or domestic corporations or associations of which at least 60% of the capital stock is owned by Filipino citizens. Stated otherwise, foreign individuals or corporations where more than 40% of the capital stock is owned by foreign individuals cannot own land in the Philippines.


The Securities and Exchange Commission (SEC), in an opinion dated Feb. 6, 2012, stated that if the real property to be acquired is a condominium unit or any interest therein, the following rules should be taken into consideration:

  1. If the condominium is set up on leased land, the condominium corporation may be wholly foreign-owned.
  2. Where the condominium corporation is a Filipino corporation which owns the land on which the condominium is located, no interest in the condominium may be transferred to foreign individuals or to corporations more than 40% of the capital stock of which is owned by foreign nationals.
  3. When the common areas are held by a condominium corporation, the transfer of condominium units to foreign individuals may be made only up to the point where it would not cause the foreign interest in such corporation to exceed 40% of its entire capital stock.
  • Payment of Reservation Fee
  • Proof of Billing
  • Proof of Income (ITR, Contract of Employment, Certificate of Employment)
  • TIN Verification Slip
  • Marriage Contract if married
  • Birth Certificate if single
  • 2 valid gov’t IDs (Passport, Driver’s License, PRC ID, etc.)
  • 2 pcs 1×1 ID picture

Equity is the difference between the current market value of the real property and the amount the owner still owes on the mortgage. Equity increases as the value of the property appreciate over time and the owner pays off the mortgage. In layman’s term equity refers to the downpayment paid by the buyer before moving in or bank financing, Pag-ibig financing, and in-house financing takes place. The objective of equity payment is to test the capacity to pay of the buyer.

Profit from an investment property comes from the income generated by the said property through rent or a profitable resale.

This is also known as Realty Installment Buyer Act (RA 6552), a piece of legislation that aims to provide protection to buyers of real estate on installment payments. When a buyer has paid at least 2 years of installments, he or she is entitled to the following rights in case he or she defaults in the payment of succeeding installments:

  1. To pay the unpaid installments due within the total grace period earned, which is fixed at 1 month for every 1 year of installment made.
  2. If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property. This is equivalent to 50 percent of the total payments made and an additional 5 percent every year after 5 years of installments but shall not exceed 90 percent of the total payments made.


The transfer of ownership has been passed to the buyer and a real estate mortgage (REM)is executed in favor of the bank/Pag-Ibig. If payment lapsed and due notice is given foreclosure proceedings will now take place.

A Contract to Sell (CTS) is a legal document in which the property developer or owner promises to transfer to the buyer the ownership of a real property upon the buyer’s fulfillment of the terms of the sale, and the buyer obliges himself to pay the purchase price and comply with the other terms and conditions of the sale. In essence, a CTS stipulates the obligations of the seller and the buyer to fulfill their obligations to each other. However, it is also important to note that there is, at this stage, no transfer of ownership of the property.

A Contract of Sale, on the other hand, is the document that transfers ownership from the seller to the buyer. Hence, only the seller signs the deed at closing and receives a copy of it. The closing agent will then record the deed with the buyer listed as the new property owner. Unlike a CTS, the DOS obligates the property developer or owner to transfer ownership of the property to the buyer.

A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you’re considering the purchase of a foreclosure, it’s important to understand that most are sold “as-is.”  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, “flipped,” and sold to a owner occupant.

This basically means you are leasing or renting a property with an option to buy it at a future date. The future price of the property should be fixed at the time the lease-option is signed. Usually there is an up-front payment of some amount to purchase the option. The amount can vary. Sometimes the monthly payment is larger than normal and the excess is used to purchase the option. In some cases, the option money can be applied toward the down payment for the later purchase of the home. Lease-options are usually done during a slow real estate market. During a hot market, the seller can simply sell the home in the regular manner.