Buying a Loaned Philippine Property

For recent visitors: Make sure you have comprehended the article ahead of this item.

Check if the developer is giving only in-house financing for your unit with a high interest rate; they may have mortgaged the property. Philippines banks nowadays discourage developmental loans and deem them even as illegal, since most of the banks' bad loans come from those types of loans.

For the protection of buyers from many project anomalies, a handful of developers are now introducing condominium developments with an escrow account, which is a tie-up contract agreement between a bank and the developer. In the US, it is said that no building, condominium or subdivision can be put up until there is an escrow account.

In the said escrow account, the buyer's check payments for the developer are kept in the bank for the sole purpose of project completion. The bank observes certain benchmarks for it to release the money to the developer. All expenditures for the project of the developer are documented and given to the bank. Likewise the bank holds the CCT of the developer for the buyer until the progressive completion of the building is fulfilled according to the contract.

The said escrow account makes it difficult for developers to mortgage their property; hence, protecting the buyers from many other the anomalies. New investors can come in if the developer for some reason cannot complete the project, since there is no loan for the project and where the money goes is easily quantifiable. This does not hold true for other troubled developers, where investors are hard to come by because of the so many loans that the developers incurred.

Home Page

Articles
  Explore "Exotic Cebu
  Real Estate Basics
   Discrete Realty Cases

Find Properties
  Featured Properties
  Setup Buyer Profile
  More Properties

Legal Fundamentals
  Philippines Civil Code
  Legal Foundations

Helpful Supplements
  Documentation Guides
  Conversion Tables
  Government Documents

Featured Development
Developer’s updates, features, offers, expansions, development updates, new projects and more.

Current Events
Latest real estate updates all over Cebu and Philippines & more.

List your Property
Sale, rent or lease your property online for FREE & more.