6 Months Left? Preparing for Property Turnover, Safety & Disaster Resilience

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Owning a home in the Philippines is an exciting milestone for many local Filipinos, OFWs, and even foreigners. Whether it’s a house and lot in a serene subdivision or a modern condominium unit in a high-rise, the journey to becoming a property owner involves more than just signing papers. It’s a proactive path that requires careful planning, understanding various requirements, and crucially, embracing disaster preparedness beforehand.

In a beautiful tropical archipelago as the Philippines – with its rapid real estate development and vibrant urban centers like Cebu, yet vulnerable to natural phenomena like typhoon and flooding – being a well-informed homeowner is your greatest asset. This guide will walk you through the essential preparations, from the initial 6-month countdown to receiving your keys, and the preparation for facing unexpected challenges.

The 6-Month Countdown: Laying the Groundwork for Your Property Turnover

Imagine receiving that much-anticipated email: your property is nearing completion! This isn’t just a moment of celebration; it’s the start of a crucial 6-month window to finalize everything before your unit turnover.

1. Document Deep Dive: What You Need for Financing

Securing your property often involves financing, and institutions have specific requirements. Preparing your required documents 6 months or earlier prior to your unit handover ensures a smoother application process. Whether you’re opting for Pag-IBIG, bank loans, or in-house financing, make sure to coordinate with the personnel in-charge to determine the accredited financing institutions applicable for your property.

Featured Tool: SKINA Home Loan Calculator

For Pag-IBIG Fund Housing Loans:

Pag-IBIG is a popular choice for many Filipinos due to its affordable rates. Also known as Home Development Mutual Fund, Pag-IBIG is applicable to accredited housing and residential condominium projects. To facilitate your loan application and eventual unit turnover, ensure you have:

• Proof of Pag-IBIG Membership: At least 24 months of contributions for eligibility.
• Income Documents: Latest Certificate of Employment and Compensation (CEC) with gross monthly income for employed individuals, or ITR and business permits for self-employed. For OFWs, a verified Employment Contract or Certificate of Engagement is vital.
• Valid IDs: At least two (2) government-issued IDs.
• Marriage Contract: If applicable, especially if you changed status from single to married, ensuring your documents reflect your current civil status is crucial. This will affect who is legally registered as the owner(s) and signatories.
• Special Power of Attorney (SPA): For OFWs or those living abroad, an SPA is essential if someone else will represent you in the Philippines. This must be duly notarized and consularized.
• You can find more detailed requirements here.
• Check out their home loan calculator on the Pag-IBIG website.
• If you have an existing housing loan, it must be updated to be eligible. 

For Bank Housing Loans (e.g., BPI, BDO, PNB):

Banks like BPI, BDO, and PNB offer competitive housing loans, often with slightly more rigorous credit checks. Common requirements include:

• Loan Application Form: Duly accomplished.
• Proof of Income: Similar to Pag-IBIG, but banks might require more recent and comprehensive financial statements, payslips, or business registration documents. For OFWs, proof of remittances and employment contracts are often necessary.
• Valid IDs: Two (2) government-issued IDs.
• Marriage Contract / Birth Certificate: To verify civil status.
• Tax Declaration & Transfer Certificate of Title (TCT)/Condominium Certificate of Title (CCT): For the property you’re acquiring.
• Appraisal Fee: To assess the property’s value (private house and lot transactions).
• Check BPI’s requirements here.
• Check BDO’s requirements here.
• Check PNB’s requirements here.

For In-House Financing:

This option is directly from the developer. While often having simpler documentation and faster approval, interest rates might be higher. Requirements are developer-specific but generally include:

• Reservation Agreement.
• Proof of Income.
• Valid IDs.
• Post-dated checks for monthly amortizations.

2. Tailoring Your Preparations: House & Lot vs. Condominium

The type of property also dictates specific preparations.

• House and Lot in a Subdivision: Beyond the loan requirements, you’ll also be signing for land titles (TCT) and understanding subdivision rules and regulations. Your property boundaries, easements, and access to common areas are critical.
• Condominium Unit: Condominiums involve more communal aspects. Be prepared for:
  • Condominium Certificate of Title (CCT): This is your ownership document.
  • Master Deed with Declaration of Restrictions: Understand the rules of the condo corporation regarding renovations, common area usage, pet policies, and payment of association dues.
  • Association Dues: Familiarize yourself with these mandatory fees for maintenance of common areas and amenities.

Developer’s role

• Provides documents: The developer provides the signed Deed of Absolute Sale (DOAS) to transfer ownership.
• Handles initial steps: The developer will have the CCT ready after the buyer has made full payment and secured financing.
• Resolves mortgage: If the property is mortgaged, the developer is required to redeem the mortgage within six months of the title’s issuance. 

Buyer’s responsibilities

• Process the transfer: The buyer is responsible for processing the title transfer, which involves several steps.
• Pay taxes and fees: The buyer must pay taxes such as Documentary Stamp Tax (DST) and Transfer Tax, along with registration fees.
• Submit documents to government offices: The buyer must submit all required documents to the relevant government offices to get the title registered in their name.
• Update tax records: The buyer must also update the tax declaration with the local Assessor’s Office. 

Key documents:

• Deed of Absolute Sale (DOAS)
• Owner’s Duplicate Copy of Title (CCT/TCT)
• Valid IDs of both the buyer and seller
• Certificate of No Liens & Encumbrances
• Latest Tax Declaration 

The Big Day: Navigating Property Turnover and Acceptance

This is where your proactive approach pays off. The turnover process is your chance to meticulously inspect your new home before formal acceptance.

1. The Critical Turnover Inspection

This is not just a walkthrough; it’s a thorough inspection to ensure the property meets agreed-upon standards and is free from defects. Always bring a checklist and be observant.

What to Check During Inspection (for both Condos and House & Lots):

• Walls and Ceilings: Look for cracks, uneven paint, water stains, and proper alignment.
• Flooring: Check for chips, cracks, loose tiles, or unevenness.
• Doors and Windows: Ensure they open and close smoothly, lock properly, and have no broken panes or frames.
• Electrical System: Test all outlets, light switches, and light fixtures. Make sure the circuit breaker box is properly labeled.
• Plumbing and Sanitary System: Check all faucets for leaks, ensure toilets flush properly, and drains are not clogged. Run water in all sinks and showers to test drainage efficiency.
• Kitchen and Bathroom Fixtures: Inspect cabinets, countertops, sinks, and showers for damage or incomplete installation.
• Water Heater and Appliances: If included, test their functionality.
• Outdoor Areas (for House & Lot): Inspect landscaping, fences, gates, and exterior finishes.
• Overall Cleanliness: The unit should be thoroughly cleaned.

Condo-Specific Checks:

Beyond the interior, inquire about common area amenities, emergency exits, and fire safety systems within the building.

Many developers provide a checklist, but having your own comprehensive one, perhaps based on resources like Citiglobal’s essential house turnover checklist or DMCI Homes’ guide, is highly recommended. Aurelia Residences also offers valuable insights on things to do before condo turnover.

2. The Punch List and Acceptance Forms

Any issues found during the inspection should be documented in a “punch list” for the developer to rectify. Do not sign the acceptance form until all items on the punch list are addressed to your satisfaction. You will also receive keys, property manuals, and other important documents during this stage.

Protecting Your Investment from the Unexpected

Once the keys are in your hand, the real work of home protection continues. Living in the Philippines means actively planning for natural calamities. This is where home precautions and understanding house safety features become paramount.

1. Reviewing Building Resilience: Design and Materials

The concept of disaster preparedness extends to your home’s design. Check the list below and identify what your residence currently has versus what you plan to integrate:

• Disaster Resilience: Though the traditional bahay kubo represents the epitome of a Filipino tropical home, disaster resilient homes should also integrate robust roofing systems, proper anchorage, and storm shutters. Make strong connections between walls and roof by following the National Structural Code of the Philippines (NSCP).
• Flooding & Drainage: Good sanitary drainage system design is not just about your property; it impacts neighborhood flood prevention. Elevated foundations, perimeter drains, and permeable surfaces that allow water to seep into the ground can mitigate the effects of heavy rains. This is a leap from older practices where simple ditches might suffice, to modern urban planning where interconnected drainage and flood control systems are critical.
• Earthquake Resilience: The Philippines sits in an active seismic zone. Earthquake resilient house design focuses on structural integrity, using ductile materials, shear walls, and proper rebar detailing to withstand seismic forces. Engineers meticulously calculate for lateral loads, ensuring the building moves with the earth rather than against it, a far cry from traditional building without seismic considerations.
• Fire Resistive Materials: Materials like concrete, treated wood, and fire-rated wall boards offer better protection against fire spread, giving occupants more time to evacuate. Installing smoke detectors and having a clear escape plan are also vital home precautions.

2. When Calamity Strikes During Construction

What if your unit is affected by an earthquake, typhoon, or fire before you’ve officially moved in or even during its construction?

• Document Everything: Immediately take photos and videos of the damage. Document dates, times, and who you spoke with.
• Review Your Contract: Check your Deed of Absolute Sale or Reservation Agreement for clauses on “Force Majeure” (Acts of God). These clauses often outline the developer’s responsibilities (or lack thereof) in such events.
• Developer’s Responsibility: Generally, until the unit is formally turned over and accepted, the developer bears the risk of loss or damage. They should be responsible for repairing or rebuilding the affected parts. Communicate with them immediately and follow up diligently.
• Insurance: While individual unit insurance usually starts post-turnover, the developer typically has construction insurance that covers damages during the building phase.

3. Embracing Sustainability for a Better Future

Beyond disaster resilience, consider how your home can contribute to sustainability in the Philippines.

• Energy Efficient Houses incorporate features like solar panels, LED lighting, and good cross-ventilation (a hallmark of tropical design) to reduce energy consumption and save on utility bills.
• Eco-Conscious Homes utilize efficient plumbing design that minimizes water waste to using locally sourced, sustainable building materials, every choice contributes to a greener home and community.

The Macro Picture: Your Home in the Larger Community

Your individual homeownership journey also intertwines with broader urban development and mass housing initiatives. Ensuring your home meets building codes and standards isn’t just for your safety; it contributes to the overall resilience and planned growth of your neighborhood, preventing issues like haphazard informal settling and the environmental degradation it can bring.

As a homeowner, understanding your homeowner’s rights in real estate is crucial. This includes knowing basic building standards, referring to the National Building Code of the Philippines, and seeking professional support when needed.

Your Partner in Building a Resilient, Quality Home

Ready to embark on your secure homeownership journey? Explore SKINA’s Pro guided tools and services for homeowners. Follow us on Instagram or send us a message for more personalized recommendations.

Key Takeaways

• Proactive Planning is Essential: Begin preparing for property turnover and financing at least six months in advance, gathering all necessary documents for Pag-IBIG, bank, or in-house loans.
• Thorough Turnover Inspection: Conduct a meticulous inspection of your new home, documenting any issues in a “punch list” before signing the acceptance form to ensure all defects are rectified.
• Embrace Disaster Resilience: Prioritize home designs and materials that withstand natural calamities common in the Philippines, such as typhoons, floods, and earthquakes, integrating features like robust roofing and elevated foundations.
• Understand Developer Responsibilities: Be aware of the developer’s liability for damages during construction or before turnover, especially concerning “Force Majeure” clauses, and ensure proper documentation.
• Commit to Sustainability: Incorporate energy-efficient and eco-conscious features into your home, such as solar panels and efficient plumbing, to reduce environmental impact and utility costs.