What is Reservation Fee in Buying Properties?

Making reservation to hold a property is very easy in the Philippines, most of reservation fee of developers are very affordable so as to attract more buyers. On the other hand, buyers should not only consider the affordability of the reservation fee instead pre-qualify themeselves with the income requirement and their capabilities to pay the unit.

What is Reservation Fee?
The Reservation fee is a payment made by clients to developer to hold a property and is usually good for 30 days.

Is the Reservation Fee deductable with the selling price?
Yes, the reservation fee is deductable from the selling price for Spot Cash payment or at the Down Payment if its thru Financing.

Is the Reservation Fee refundable?
No. Why? When an interested buyer made a reservation to hold the property but eventually wants to cancel, the developer missed selling the property to other interested buyers, thus the developer lost an opportunity.

How do I pay the Reservation Fee?
The Reservation fee is payable in cash, deposit payments, checks and wire transfers depending on the developer. The official receipt is issued as the confirmation of your payment and reservation of property, that's is why paying in cash is the best option. Official Receipt for check payments, deposit payments, or wire transfer may take a week to clear and post, hence, the official receipt can only be issued after clearing and posting.

Can I cancel the reservation?
Yes, you may cancel your reservation for the unit or property. I recommend you to make a formal cancellation request in writing if you have already submitted confidential documents during the signing of reservation.

Here is a link for example of Reservation Agreement forms and other legal documents at http://legal-forms.philsite.net/.



Here are Information needed in signing a Reservation Agreement:
Principal Buyer
Full Name, Local Address, Address abroad, Birth Date, TIN Number,
Contact Number, Email Address, Employment Position, Marital Status


Wifes / Husband
Full Name, Birth Date, TIN Number, Employment, No. of Children


Other Requirements during reservation are 2 valid government identification and of course your signatures.


Are you now ready to make Reservation?
Goodluck!



Thank you for reading, please share if you find it useful.

About the Author

Jerome Morada

Realtor & Webmaster

Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

10 (mga) puna:

  1. Pwede ba i-transfer yung reservation fee to another unit and location which has lower price?

    ReplyDelete
    Replies
    1. Hi Gheline! Transfer of Reservation Fee to another project depends on Developers' policy, but you expect a charge or fee in the transfer if ever permitted. For downgrading of unit, it is allowed but expect also of some fees.

      Thanks for viewing!

      Delete
  2. valid ba ang ackonwledgement receipt kapg nagbayad ka ng reservation fee?
    in case na wala ka pa OR pwede pa ba irefund ang reservation fee kung gusto mo mag back out?

    ReplyDelete
    Replies
    1. Ang Acknowledgement Receipt po ay hindi pa sya Official Reservation dahil kahit seller/agent ay pwedeng magbigay ng Akcnowledgement kapalit ng Reservation Fee pero at any time pwedeng ipasok nila as Official Reservation sa system ng Developer. Kaya i-confirm nyo po muna sa Developer kung naipasok na ang Reservation nyo at kung hindi pa, I'm sure pwede pa syang i-pull out.

      Salamat.

      Delete
    2. so kapg naipasok na nila sa system ng developer I have the right to ask for an official receipt? tama po ba? salamat :)

      Delete
    3. Pasensya po sa super late reply, medyo busy with my new website.

      Opo, lahat ng clients sa kahit anong business ay may right to ask for Official Receipt. Maraming Salamat

      Delete
  3. Hi Jerome,
    Pano pag nagbayad ka na ng reservation fee mo tapos in two weeks for example nalaman mo na hindi ka na-approve ng bank sa housing loan mo. Pwede pa bang ma-refund yung reservation fee?

    Thanks. :-)

    ReplyDelete
    Replies
    1. Good day! Sa karamihang property developers po ay non-refundable ang Reservation Fee. Ini-explain po yan during reservation, pero subukan nyo pa rin baka mabigyan kayo ng consideration. Salamat

      Delete
    2. Hi po. Kumuha ako ng units sa isang subd.nagbayad ako ng reservation fee but after 5 days ay nagback out ako.sinabi ko agad sa ahente n hindi ko na itutuloy n kumuha at gusto kong marefund ang binayad ko. Wla akong nareceived na confirmation email about sa property na kinuha ko. In that case possible ba na marefund ko ang reservation fee na binayad ko? Thank you. Please email me at nerisaperez63@gmail.com

      Delete
  4. May tiningnan po akong property tapos sabi sa akin ng agent para daw po maihold yong napili kong unit magbigay lang ako kahit holding fee lang. So nagbigay po ako ng holding fee pero di pa po ako nagbabayad ng reservation fee. Pwede po bang irefund yon?

    ReplyDelete

 
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