Hi! I'm a first time house buyer in the Philippines. I recently paid the reservation fee in a housing development in Luzon. When I paid for it though, I have not seen the contract. The agent I talked to was very polite and kind and provided information as much as she could.
When I paid the reservation fee, I was in for the housing. When I was provided the contract for the property, a few weeks later, here are some points that are a bit confusing for me:
1. The contract states that I have to apply for a bank financing before the 6th monthly payment and that the approval should be given to the developer by that time. When I was talking to the agent, I was informed that my bank application will only be submitted on the 8th or 9th month of down payment. So what should be followed?
2. The contract states that when the buyer is disapproved in the bank financing loan, the contract can be cancelled. However, there is a supplementary affidavit that when the bank financing is disapproved, the client will automatically be applying for an in-house financing (which is much higher than the bank financing scheme). Is the client required to sign this affidavit? Also, what will be the outcome of the cancellation of contract? Will all the payment be returned?
3. If the client decided not to push through with the purchase after seeing the contract, can the reservation fee be refunded?
I apologize if the questions seem to be ignorant of the real estate laws of the country as well as the practiced real estate system here.
Thank you in advance for all your responses.