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Investing in a real estate property in the Philippines usually requires paying for closing costs. It’s a process that may take some time, but it is necessary for you to know so that every aspect of the buying process will be transparent to you.
Q: How long does it take to close on a condo?
Closing on a condo sale could take anywhere between 1 to 3 hours of discussion and signing of post-dated checks and documents. It is when the condo is fully paid for, however, when the process of the actual closing begins. This starts with the Deed of Absolute Sale being signed and notarized.
A condo transaction is only formally closed when the Condominium Certificate of Title (CCT) is transferred under your name. Depending on various factors, it will usually take 3 three months to 1 year.
Q: Can you move up your closing date?
Yes, you can move up your closing date if you are referring to closing on a condo sale. This is when the Contract to Sell is signed, and post-dated checks are given. Should these instruments to a sale be ready to be turned over, you can then proceed to close the sale ahead of schedule.
However, the date for formally closing a condo through registration and transfer of title cannot be moved. It is dependent on a wide variety of factors, most of which are not subject to the will of the buyer or the seller.
Q: What are monthly condo fees?
Monthly condo fees are what condominium owners have to pay to enjoy the shared services of the property. The association dues usually represent this. They pay for services such as maintenance, security, repairs, electricity, and water for the building. These comprise property management costs. However, the utilities and additional repairs for the individual units are charged separately. Depending on the developer, there may also be monthly fees for common area shares.
Q: Are condo fees tax deductible?
Yes, condo fees are tax deductible. They are not actually income by the condo corporation that receives them. These condo fees are collected and pooled together to pay for the property management services of the building. They are held in trust for the unit owners. The condo corporation itself is not the contractor but the one hiring these services for the benefit of the unit owners or members of the association. Condo association dues are also VAT-exempt under the 2018 TRAIN law.
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