First-Time Homebuyer Checklist in the Philippines: From Inquiring to Turn-Over

Photo: RDNE Stock project, Pexels

This guide is general information, not legal, tax or financial advice. Rules, rates and fees change, so confirm the details with the relevant agency, your lender or a licensed professional before you decide.

Buying your first home is exciting and a little overwhelming. There are new documents (Contract to Sell? Deed of Absolute Sale?), fees nobody mentioned in the ad, and decisions you can’t easily undo. This checklist walks through the whole process in order, from your first inquiry to getting the keys, so you know what’s coming and what to check at each step.

Buying a house and lot specifically? See our top 10 tips for buying a house and lot.

Step 1: Set a realistic budget

How much house can you afford?

A common rule of thumb is to keep your monthly housing payment to about 30% of your gross household income. Pag-IBIG and most banks cap it at around 35%. On a household income of ₱50,000 a month, that means a monthly amortization of roughly ₱15,000 to ₱17,500.

Budget for the cash you need up front

The monthly payment isn’t the only cost. Plan for:

• Reservation fee: to take a unit off the market, often ₱10,000 to ₱50,000 for developer projects. Usually non-refundable, and normally deducted from the price.
• Downpayment or equity: commonly 10% to 20% of the price. Pre-selling projects often spread it over 12 to 36 months.
• Transfer and miscellaneous fees: taxes, registration and notarial costs, which developers often quote at 5% to 8% of the price. Our guide to transfer taxes and fees breaks these down.
• Move-in costs: utility connections and deposits, association dues paid in advance, repairs, furniture.
• An emergency buffer of a few months of amortization, so one bad month doesn’t put you in arrears.

Get pre-qualified

If you’ll borrow, check your eligibility first. Pag-IBIG needs at least 24 monthly contributions, and banks want documented income. See our Pag-IBIG housing loan guide and financing comparison.

Step 2: Choose pre-selling or ready-for-occupancy (RFO)

Checking a pre-selling project

• Ask for the project’s License to Sell from the Department of Human Settlements and Urban Development (DHSUD). Selling without one is against the law.
• Research the developer’s track record: were past projects delivered on time and as promised?
• Get the turnover date and the unit’s specifications and finishes in writing.

Inspecting an RFO or resale home

• Visit twice, including once during heavy rain if you can, to check for leaks and flooding.
• Check the roof, ceilings and walls for water stains, cracks and termite damage.
• Run every faucet, flush every toilet and test every outlet and switch.
• Check the water pressure, the drainage, and the age of the electrical wiring.
• For a resale, verify the title before anything else. See our title verification checklist.

Step 3: Reserve the property

Once you’ve chosen, you pay the reservation fee and sign a reservation agreement. Before you pay, check that it states:

• the exact unit or lot, with block and lot number or unit number;
• the total contract price and what it includes (VAT, parking, finishes);
• the payment schedule and the deadline to submit your documents or loan approval;
• whether and when the fee is refundable, for example if your loan is denied; and
• that the fee will be credited against the price.

Pay by bank transfer or check to the developer or seller directly, never in cash to an agent, and keep the official receipt.

Step 4: Pay the downpayment and sign the Contract to Sell

The Contract to Sell (CTS) is the main agreement while you’re still paying. The seller keeps the title until you’ve paid in full, whether from your own cash or through a loan. Read it carefully for:

• the full payment schedule, penalties for late payment, and what counts as default;
• the turnover date, and what happens if the developer is late;
• who pays which transfer taxes and fees; and
• what happens to your payments if you cancel or can’t continue.

Know your rights under the Maceda Law

If you’re buying residential property on installment, the Maceda Law (RA 6552) protects you if you fall behind. In short: if you’ve paid less than two years of installments, you get a grace period of at least 60 days before the seller can cancel. If you’ve paid at least two years, you get a longer grace period and, if the contract is cancelled, a refund of at least 50% of what you’ve paid, rising with more years of payments. Your buyer protections under PD 957 also cover subdivision and condo projects.

Step 5: Complete the financing

If you’re paying the balance with a Pag-IBIG or bank loan, this is when you submit the application, the property is appraised and the loan is approved. The lender then pays the seller directly, which is called the loan take-out. Submit documents early; loan processing is where timelines most often slip.

Step 6: Sign the Deed of Absolute Sale and transfer the title

Once the price is fully paid, the seller signs the Deed of Absolute Sale (DOAS), which transfers ownership to you. It’s notarized, the taxes are paid, the BIR issues an eCAR, and the Registry of Deeds issues a new title in your name. With a loan, the mortgage is annotated on the new title.

CTS vs. DOAS in one line: the Contract to Sell is a promise to sell once you’ve paid; the Deed of Absolute Sale is the actual transfer of ownership.

Follow up until you receive a copy of the new title, and then transfer the tax declaration to your name at the Assessor’s Office.

Step 7: Inspect before accepting turnover

Turnover is when you receive the keys. Once you sign the acceptance form, it’s much harder to get the developer to fix things, so inspect carefully and list every defect in a punch list:

• Floor area and layout match the plans and the contract
• Walls, ceilings and floors: cracks, uneven tiles, hollow-sounding spots, paint defects
• Doors and windows: open and close properly, locks work, no gaps, no leaks
• Plumbing: water pressure, hot water if included, drainage, no leaks under sinks
• Electrical: every outlet, switch and light; the breaker panel is labelled
• Roof, gutters and ceiling: no stains or signs of leaks
• Finishes and fixtures match what was promised

Sign the acceptance only after the developer has agreed in writing to fix the items on your punch list, and ask about the warranty period for defects found later.

Step 8: After you move in

• Transfer electricity and water accounts to your name.
• Register with the homeowners’ or condominium association and set up dues payments.
• Pay real property tax every year to avoid penalties.
• Keep every receipt, contract and the owner’s title copy in a safe, dry place.

Your checklist at a glance

1. Budget: monthly payment ≤ ~30% of income, plus cash for reservation, downpayment and fees
2. Pre-qualify for Pag-IBIG or a bank loan
3. Choose pre-selling or RFO; check the License to Sell or inspect the home
4. Verify the title for any resale
5. Reserve with a written reservation agreement and an official receipt
6. Review and sign the Contract to Sell; pay the downpayment
7. Complete the loan and take-out
8. Sign the Deed of Absolute Sale; transfer the title and tax declaration
9. Inspect with a punch list before accepting turnover

Ready to start?

The best first step is seeing what fits your budget. Browse homes for sale, pre-selling projects and rent-to-own homes across Central Luzon, and message sellers directly with your questions.