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Reservation Agreement Real Estate Purchase Philippines

The booking contract includes the payment of earnest money as a form of non-refundable down payment that is part of the purchase price. It shows your serious interest in a property for sale. Legally, both parties are required to do what is written in the contract, but if you both withdraw from the contract, you must withdraw – or surrender what was given and received. It is therefore important that you keep receipts and secure photocopies, especially when it comes to money. [For PH claim guidelines, click here] How many of you really take the time to read all these fine and often long documents, full of boring legalities, before checking “yes” without really doing so? For this reason, the reservation agreement is one of the most important documents in the entire real estate purchase process. And here`s why you shouldn`t jump out of them. You don`t need to lie or feel ashamed about it, because according to the Fair Finance Survey, 73% of the population admit not to have read all of them. [1] Unfortunately, you should, as you really should. The adoption of such conditions is like signing a legal agreement that both parties must respect and respect, so that non-compliance with the rules of the agreement can lead to unforeseen and worse regrettable circumstances. If you want to buy a property, brokers or real estate agents can offer a “booking contract” or a “booking request,” an agreement that ensures that the property you want to buy is reserved and withdrawn from the market, which prohibits the purchase of others.

In addition, this agreement contains basic information and specifications such as the full address of the property, the type of property, the base area, the preferred payment option (cash, house,-financing) and the terms of payment agreed by both parties. If you wish to benefit, a “serious money” is made available or what is often called booking fee is made available. Just like buying real estate, you can`t escape this as part of your protection and seal a deal not just verbal or handshake alone, because buying one is actually an expensive investment – if not risky.