Buying a property in the Philippines.

Most Philippine real estate purchases follow the same general sequence, whether you're buying pre-selling or RFO, condo or house-and-lot:

1. Property selection and viewing. Visit the actual unit or model unit if pre-selling. Confirm the developer, project, location, and pricing.
2. Reservation. Pay the reservation fee (typically ₱20,000–₱100,000) to take the unit off the market while documents are processed.
3. Document submission. Submit IDs, proof of income (3 months payslip or ITR for the self-employed), TIN, and other developer-specific requirements.
4. Buyer's Information Sheet and computation sheet. The developer prepares your official payment schedule based on your chosen scheme (cash, deferred, bank/Pag-IBIG financed).
5. Down payment / equity period. For pre-selling, you pay the down payment in installments (usually 12–48 months). For RFO, you pay the full down payment upfront before loan release.
6. Contract to Sell (CTS). Signed once your reservation is confirmed and equity terms are set. The CTS is your legal proof of ownership rights during the installment period.
7. Loan processing (if financed). For Pag-IBIG or bank financing, the loan is processed near or after turnover. The lender pays the developer the balance.
8. Turnover and acceptance. You inspect the unit, list defects (punch list), and accept the keys.
9. Title transfer. After full payment, the Deed of Absolute Sale is executed, taxes are paid, and the title is transferred to your name at the Registry of Deeds.

Reality check: The full sequence from reservation to title in your name typically takes 4–7 years for pre-selling, or 3–9 months for RFO with bank financing.

Pre-selling means buying before construction is complete. You pay a down payment in installments while the building is being built (typically 36–48 months), then either pay the balance in cash or take a loan at turnover.

RFO (Ready for Occupancy) means the unit is already built and you can move in immediately. You pay the down payment upfront and either pay the balance in cash or have a bank/Pag-IBIG loan release the balance to the developer.

For deeper comparison, see our full pre-selling vs RFO breakdown.

Document requirements vary slightly by developer and financing source, but the typical base list:

Personal documents (all buyers):

• Two valid government IDs (passport, driver's license, UMID, etc.)
• Tax Identification Number (TIN)
• Proof of billing address (utility bill within the last 3 months)
• Photos (1x1 or 2x2)
• Marriage certificate (if married)
• Birth certificate (sometimes required)

Income documents (if financed):

• Locally employed: 3 months latest payslips, Certificate of Employment with salary, latest ITR (BIR Form 2316)
• Self-employed: 2 years ITR, audited financial statements, business permit, DTI/SEC registration
• OFW: Employment contract, latest payslips, certificate of employment from employer (POEA-stamped if applicable), bank statements showing remittance history

Additional for Pag-IBIG: Pag-IBIG Member's Data Form, proof of 24+ monthly contributions, Special Power of Attorney if buying remotely.

The short answer: foreigners cannot own land in the Philippines, but they can own condominium units and buildings (just not the land underneath).

The 40% rule (RA 4726, the Condominium Act): Foreigners can own condominium units in the Philippines as long as total foreign ownership in any single condominium project does not exceed 40%. The remaining 60% must be Filipino-owned. This is verified through the condominium corporation's records.

What foreigners can do:

• Own condominium units (up to 40% of project total)
• Own a residential house or building (but not the land it sits on)
• Lease land for up to 50 years, renewable for 25 more (Investor's Lease Act)
• Inherit land from a Filipino spouse or relative
• If formerly natural-born Filipino: own up to 5,000 sqm of urban residential land or 1 hectare of agricultural land

What foreigners cannot do:

• Own land directly, even through marriage to a Filipino
• Use a Filipino "nominee" or "dummy" to hold land — this is a criminal violation of the Anti-Dummy Law (Commonwealth Act No. 108) and can result in 5–15 years imprisonment plus property forfeiture
• Be listed as co-owner on a land title with a Filipino spouse

For married couples: If a foreigner is married to a Filipino, the Filipino spouse can own land in their sole name. The foreign spouse's contributions are legally treated as a gift or loan, not co-ownership.

It depends on how far you've gone and what your contract says.

If you've only paid the reservation fee (typical: ₱20,000–₱100,000): Most developers' reservation agreements state the reservation fee is non-refundable if the buyer backs out. This is standard industry practice and generally enforceable.

If you've paid down payment installments but less than 2 years total: Under the Maceda Law (RA 6552), you are entitled to a 60-day grace period to cure any default. If you still cannot continue, the developer can cancel the contract after a notarial notice of cancellation, and you are not entitled to a cash refund for payments under 2 years.

If you've paid 2 years of installments or more: The Maceda Law gives you the right to a cash surrender value (CSV) refund:

• Years 2–5: 50% of total payments made
• Year 6: 55% of total payments
• Each additional year: +5%
• Maximum cap: 90% of total payments made

You also have the right to sell or assign your rights to another buyer instead of cancelling — often a better outcome than a Maceda refund.

Important: The Maceda Law applies only to installment sales directly with the developer. Once your loan is released by a bank or Pag-IBIG, the property is technically fully paid (the lender paid the developer in full), so Maceda no longer applies. Your remedy then is to sell, refinance, or negotiate with your lender.

These are two different contracts that exist at different stages of a property purchase:

Contract to Sell (CTS) is signed during the installment / financing period. The seller commits to sell the property to the buyer once the buyer completes payment. Title remains with the seller until full payment is received. If the buyer defaults, the seller can cancel the CTS (subject to Maceda Law protections).

Deed of Absolute Sale (DAS) is signed at the end of the transaction, after full payment. This is the document that actually transfers ownership. The DAS, together with tax payments and registration fees, is what enables the title to be transferred to the buyer's name at the Registry of Deeds.

A reservation fee is an initial payment made by a buyer to take a specific property unit off the market while purchase documents are processed. It's not a deposit toward the property — it's a hold fee.

Typical amounts: ₱20,000 to ₱100,000 depending on developer and project tier. Luxury projects can be higher.

What it does:

• Locks in the unit at the current price (protects you from milestone increases)
• Prevents another buyer from reserving the same unit
• Begins the document processing window (usually 30–45 days to submit complete requirements)

Is it refundable? Generally no, if the buyer backs out voluntarily. Most developer reservation agreements explicitly state the fee is non-refundable. However, if the developer fails to deliver the unit, materially changes the project, or cancels the project, the buyer can usually demand a refund (and may have stronger remedies under PD 957).

What it credits toward: The reservation fee is normally credited toward your down payment if you proceed with the purchase — it's not lost money in that case, just an early payment.

Title transfer typically takes 3 to 9 months after full payment, depending on:

• Whether the property is part of a larger development with a "mother title" still being subdivided
• How quickly the seller pays the Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) at BIR
• How quickly the buyer pays Transfer Tax at the local government and registration fees at the Registry of Deeds
• The current backlog at the BIR Revenue District Office (RDO) and Registry of Deeds for that location

The standard sequence:

1. Notarized Deed of Absolute Sale (Day 0)
2. BIR filing & payment of CGT (6%) — due within 30 days of notarization
3. BIR filing & payment of DST (1.5%) — due within 5 days after the close of the month of notarization
4. Certificate Authorizing Registration (eCAR) issued by BIR — typically 2–6 weeks
5. Transfer Tax (0.5–0.75%) paid at the local Treasurer's Office — due within 60 days of notarization
6. Registration with the Registry of Deeds — new title in buyer's name issued, typically 30–90 days
7. Tax Declaration update at the local Assessor's Office

For pre-selling buyers: Even after full payment, expect additional delays of 6 months to 2 years if the developer is still consolidating individual condominium titles or the master title is still being broken down.