Before you sign on the dotted line of your contract, make sure you’ve thoroughly checked it for the fine print. There might be questionable clauses and provisions, such as unintentional responsibilities or expenses, buried in the document that should be a cause of concern in the future.
Your own due diligence is your best protection when you buy a home.
In short, you shouldn’t let the excitement of finally having your own home overshadow the practical steps that need to be taken in order to secure your investment.
Here are eight things you need to check in the contract.
1. Reviewing the basics
Inspect if there are typographical errors, particularly mistakes on your names, prices, unit numbers, street addresses, etc. These small blunders may cost you as it may affect the validity of the contract.
2. Paying your association dues
Many first-time home buyers are not familiar with this monthly fee. Association dues are used for building maintenance, staff salaries, and other condo-related expenses.
Make sure you check what is included in your association dues, so that when it’s time to pay, you’re confident that you’re paying the correct expenses and there are no other charges. Furthermore, inquire if the management has plans to increase the monthly dues and ask for the breakdown if they do intend to do it.
3. Ensuring the number of people allowed to live in the unit
Prior to the final purchase, discuss the number of tenants allowed to stay in the unit. There are usually a designated allowable number of tenants, depending on the size of the unit. Verify with your property management office (PMO) the set up for this.
4. Using the amenities and other shared spaces
While most condominium amenities come free for homeowners, there might still be some facilities that would require additional fees such as function rooms and spas.
Aside from that, don’t forget to inquire which amenities are open to guests and the charges if it’s not stipulated in the contract. Ask the management to put it in writing as well so it’s covered.
5. Renting out your unit
More and more Filipinos, especially overseas Filipino workers, are looking to buy condominiums in key areas of the country, including Makati and Bonifacio Global City, because they see it as a good investment.
Validate with your developers the terms and conditions if you put up your unit for rent. You might be required to make rent exclusively through their leasing office, which takes a cut from your revenue proceeds. Also, so you’ll know how the process will go when a tenant is moving in.
6. Making improvement and maintenance
Clarify what improvements need approval from your Property Management Office before you can make them, especially if it’s a major renovation. Don’t assume that because you already own the unit, you can do anything with it.
Even though it is your right as an owner to personalize your unit, you can’t just go and knock down walls and drill. After all, you need to think how the construction will affect your neighbors. Moreover, if you need to get in materials and the workers, you’ll need to get passes for them.
7. Checking in your pets
Few condominium developments in Metro Manila allow pets in their premises. The Alexandra Condominium in Ortigas and Tivoli Garden Residences in Mandaluyong are two vertical residences that allow pets. For those that do have them, their pet policies differ from each condominium. Make sure you understand the regulations on pets so that your German Shephered dog Fifi won’t get evicted.
8. Inquiring provision for visitor parking
Condominiums normally have limited parking spaces. Some developers include a parking space in the sale of a unit. However, others exclude it and condominium owners need to pay extra to have their parking space. As such, make sure you know if there is an allocated visitor’s parking and the fees that come with it.
Be an Empowered Home Buyer
Understanding everything in the contract is a vital way to avoid conflicts especially since condominiums have shared spaces. You have to respect other’s rights to a peaceful and orderly environment.
In addition, a hard copy of your contract will let you know what to expect because it sets all the guidelines for renovations, fees, and other matters that may impact your stay in the building. Most importantly, having a well-written contract is for your protection and peace of mind.
P.S. Have your own lawyer go through the contract with you in detail to have a better understanding of the legal jargon.
P.P.S. Don’t hesitate to ask questions on clauses that you don’t understand or are vague.
What parts of your condo contracts are unclear or not justified? Share your comments below and we’ll do our best to answer them.
