Purchasing a property from a developer can be an exciting at the same time a nerve-wracking experience. Of course, you always wanted to have the best offer and makes sure to get the right ones. However, you need to be cautious enough because there are developers that can steer you into a much longer and broader game that’s considerably less advantageous for you. These profit-minded developers usually target those with less knowledge about the industry.
Here’s what you need to watch out for.
When dealing one, it is of vital importance to do an honest-to-goodness check if the project of your choice is registered and licensed by the Housing and Land Use Regulatory Board (HLURB). To do such, you may use HLURB Online Services
[1]or ask them directly. If, not then it just shows that the developer has failed to comply numerous requirements of HLURB. Profit-wise, in business it is always been a motto and there is nothing wrong with that as long as it is done legally, just make sure that the property you will be investing serves it purpose and not just the developer selling it to you.
It is a common misconception to any that buying a property from a well-known developer is “safe” however it doesn’t mean that they are known because, in reality, they hire different subcontractors and all of which are of varying quality. There is also the issue on delayed turnover of land titles especially on investment properties thus you may verify if the developer has a track record of at least 3 major projects that have been turned over to the owners on time.
Some of today’s developers take a shortcut which means when you buy a property especially for investment, they will just do it in a short time period for what? Quick profits. For example, a case was filed by new tenants of a subdivision in Bulacan regarding unlawful site digging, causing the foundation of their houses to lose its strength and stiffness in response to the applied stress. To do this, you may personally visit the subdivision/condominium, where the house and lot or condo unit to be purchased is located. Also check who would pay the cost of the water, electric meters, the subdivision perimeter fence, and so on.
For most common example, if it includes automatic membership of the Homeowner’s Association even though your purchased property is still under development; watch out, developers might trick you. It is always illegal under the law for a developer to take hold of the association and it’s a known fact that an amenity is supposed to be free as it is already part of the premium purchase. It is also advisable to read Presidential Decree 957, or the Subdivision and Condominium Buyer’s Protective Decree (as amended by PD 1216), the decree that involves regulating the sale of subdivision lots and condominiums, and provides penalties for violations.
You should always verify the ‘contract to sell’ details and fully understand the terms and conditions as part of the developers’ guaranteed amenities to your property purchase. Make sure that they don’t have any policy of prohibiting you to inspect the property while under construction and make sure everything seems forthcoming.
[1]http://hlurb.gov.ph/online-inquiry/
