Blogs: Tips for Home Buyers & Investors

Miscellaneous Fees

The “Surprise Fees” in Buying a House or Condo Unit in Cebu

Not a few homebuyers are really surprised when told to pay a sizeable amount for the “miscellaneous fees” before the unit will be turned over to them. They have no choice but to pay the required amount to the developer/seller.
 
This is often called the hidden fees. The word “hidden” does not mean a deliberate act to mislead the homebuyers. In most cases, the agent or house finder –even marketing staff of the developer — simply mentioned it as the “miscellaneous fees” and the homebuyer did not ask for the details. While some developers are transparent in the computation of the transfer fees and move-in charges, others are not.
 
Transfer fees are the payments made by the developers in behalf of the homebuyer (the money comes from the homebuyers) to different government agencies. This is supposed to be an added-value in buying the property as free service, but some developers milk a money from it. Homebuyers can demand full transparency on this matter but no one bothers to find out.
 
Move-in charges normally cover the payments for the connection of the water and light facilities to make the house liveable. The electricity post and water system are already provided but the homebuyer has to pay the water company and the power company to connect to them. The problem arises when the collected amount is much higher than the actual payment for connection if done personally by the homebuyer. Make sure to ask the developer/seller marketing staff for the details of the move-in fees.
 
You will not be surprised when you learn to ask questions. When you ask for the sample computation, the usual answer provides only the total contract price of the unit, the reservation fee, the monthly equity and the monthly amortization on housing loan. The discussion on the miscellaneous fees, the restrictions and other specific concerns are usually done towards the closing of the transaction.
 
Cebu House Finder helps homebuyers find their dream house at the best price and location in Cebu… for free! Contact 0943-486-3246 for free property consultation.

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