Investing
in off-plan properties is popular in the Philippines, where many people, with
just a minimal down payment of around 10%, reserved units and later sold them
at a markup, pocketing the substantial difference.
In
the case of Mr. A, who, connected with a seller of off-plan properties through
a friend. Driven by trust in his friend, Mr. A neglected crucial details,
knowing only the buyer's name and overlooking the essential step of
"hiring a local lawyer for scrutiny."
The transaction was processed at the developer's office, where Mr. A hastily signed a purchase agreement and a handwritten receipt. Simultaneously, he submitted a transfer application to the developer. The seller promised to complete the transfer process within a month or two. However, months later, the transfer request was continuously delayed by the developer. Mr. A attempted to contact the developer via email but received no response. He later discovered that the unit had been forfeited by the developer. Then he sought assistance from Feilong Legal, and an investigation by the lawyer revealed that the seller had already defaulted.
In
this case, if the seller has already defaulted and intended to conceal the
truth, from legal perspective, this is
undoubtedly a fraudulent act and a criminal case. If Mr. A is guarded by a
lawyer before signing the contract, this risk can be eliminated.
Feilong Legal advises buyers considering purchasing second-hand off-plan properties in the Philippines to hire a local legal professional. Due to numerous traps in such transactions, it is crucial to:
1.
Recognize the significant differences between off-plan contracts and regular
property sale agreements, including various restrictions that buyers need to keep
in mind.
2.
Acknowledge that transferring off-plan properties carries higher risks than
signing a normal contract. It is advisable to consult a lawyer before signing
any agreement to have them review the contract and related documents.
3.
Avoid blindly trusting verbal assurances from friends.
4.
Investigate all relevant bills, including all installment payment records.
5.
Confirm whether there have been any alterations to the property.
6.
Understand the specific terms and conditions of the transfer.
While
there are risks associated with off-plan property transactions, having a professional
lawyer can help secure the transaction. If you are interested in investing in
the Philippines, we can provide a one-stop service.