02/05/2026
Broker Tip:
๐๐ก๐ข๐ช ๐ช๐๐๐ฅ๐ ๐ฌ๐ข๐จ๐ฅ ๐ ๐ข๐ก๐๐ฌ ๐๐ข๐๐ฆ ๐๐๐๐ข๐ฅ๐ ๐ฌ๐ข๐จ ๐ฆ๐๐๐ก.
Many buyers get heartbroken when they back out of a deal and find out they canโt get their money back. To avoid this, you need to understand the difference between the "Fee" and the "Investment."
๐ THE RESERVATION FEE (The Commitment):
This is the money you pay to "hold" the unit so the developer won't sell it to anyone else.
Is it refundable? Generally, NO. In most standard contracts, if you change your mind, the reservation fee is forfeited to cover the developerโs administrative costs and the "lost opportunity" to sell the unit to others.
Does it count? Yes, it is usually deducted from the total contract price once you proceed.
๐ THE DOWNPAYMENT (The Equity):
This is the portion of the price you pay (usually in installments) before the bank loan kicks in.
Is it refundable? YES, but with conditions. This is where the Maceda Law (RA 6552) comes in. If you have paid at least two years of installments, you are entitled to a 50% refund of your total payments if you cancel.
Less than 2 years? You are usually given a "grace period" to catch up, but if you cancel, you might not get a refund unless the developer is at fault (like delayed construction).
BROKER'S ADVICE:
Don't pay a Reservation Fee just because you're "excited." Pay it only when you are 100% sure about the unit and your budget. Once that receipt is issued, that money is considered "spent" for the sake of holding the property. Only the Downpayment has the "safety net" of the law! ๐๏ธโ๏ธ
Disclaimer: This post is for educational and marketing purposes only and does not constitute legal advice. For specific cases involving refunds, always consult with a licensed attorney or the DHSUD.
