Paolo saw an ad for a one-bedroom condo in Metro Manila for “₱24,000 a month.” He reserved it for ₱25,000 and paid his installments on time for three years. When the turnover notice came, it required ₱240,000 in miscellaneous fees and around ₱35,000 in move-in charges. His bank also wanted approximately ₱43,000 in loan fees, and he still had a ₱3.58 million balance not covered by the “₱24,000 a month.”
Nothing in that statement was against the law, and most of it was included in the contract he signed. He just never calculated it.
A pre-selling condo has three prices: the advertised price, the total contract price (TCP), and the cash you’ve paid by the time you get your keys. For a ₱4 million unit, the advertised price and the cash paid can differ by almost ₱800,000. This guide explains the fees for a pre-selling condo in the Philippines, provides an example, and lists questions to ask before paying a reservation fee.
- TCP is not the final price. It usually includes 12% VAT above ₱3.6 million but often excludes miscellaneous fees.
- Miscellaneous fees commonly add 5% to 8%. Government charges are only about 2.8% of that on a ₱4M unit, so ask for the rest itemized.
- Move-in charges run about ₱20,000 to ₱60,000 at turnover, before furniture.
- The ad’s “monthly” usually covers only the downpayment. The 70% to 80% balance is financed at turnover, with its own fees.
- Compare all-in costs, not TCPs. In our example, a ₱4M net price reaches about ₱4.8M by turnover, before loan interest.
List Price, TCP, and All-In Cost: The Three Numbers You’ll See
The list price is the unit’s price before tax. The total contract price is the amount you owe the developer according to the Contract to Sell, which usually includes the net price plus 12% VAT and sometimes additional fees. The all-in cost covers everything you pay to own and move into the unit, including separate fees, move-in charges, and loan fees.
The issue is that developers define TCP differently. One says “TCP includes extra fees,” while another notes “extra fees due upon turnover” in a footnote. Two units listed at ₱4.48 million can actually differ by over ₱200,000. Focus on total costs, not just TCPs.
Treat the monthly figure in the ad similarly. In most pre-selling plans, “₱24,000 a month” is just the downpayment, paid during construction. The loan after turnover is a longer commitment. If you’re new to pre-selling payment terms, start with What Are Pre-Selling Condos?
How to Read a Developer Computation Sheet
Every developer provides a computation sheet, also known as a sample computation or payment scheme, before you make a reservation. This document is very important, so make sure to read it thoroughly, rather than just focusing on the monthly figure. Here’s a typical sheet and the questions each line may prompt.
Reservation Fee
The reservation fee secures the unit for about 30 days while you finish your paperwork. It can be a few thousand pesos or a percentage of the TCP. Most developers apply it to the downpayment and say it’s non-refundable, so make sure to get this in writing.
Discounts
Check where a cash or downpayment discount is applied. It reduces the net price, which also lowers the VAT and miscellaneous fees. If it’s taken off the TCP, it only reduces the TCP.
Downpayment Schedule
Downpayments typically run 10% to 30% of the TCP. Read the last rows of the schedule, because some plans end with a large lump sum just before turnover.
Balance for Financing
The remaining 70% to 80% is due in full at turnover, paid via a bank loan, Pag-IBIG, or in-house financing. This is where your long-term payments start. Our guide on understanding your amortization schedule explains how it divides between interest and principal.
The Miscellaneous Fee Line
Miscellaneous fees may show up separately, included in the TCP, or as a footnote stating “misc. fees of X% based on turnover.” If a sheet doesn’t mention these fees, they still apply, so request clarification in writing.
VAT: The Biggest Line Most Buyers Miss
Since January 1, 2024, houses and residential properties priced at ₱3.6 million or less are exempt from VAT. Properties above this price have a 12% VAT added by VAT-registered developers. The TRAIN law mandates that this price limit be adjusted for inflation every three years, with a review expected in 2027.
The threshold acts like a cliff rather than a slope. A unit priced at ₱3.6 million has no VAT, but at ₱3.61 million, the VAT adds ₱433,200, making the total ₱4,043,200. Thus, a ₱10,000 increase in price results in a ₱443,200 higher cost. This is why many entry-level units are priced just below ₱3.6 million, and why units just above this threshold should be carefully considered.
Most pre-selling condos in Metro Manila include VAT, unless stated otherwise in the computation sheet.
| Net selling price | VAT applies? | VAT (12%) | Price with VAT |
|---|---|---|---|
| ₱3,000,000 | No | ₱0 | ₱3,000,000 |
| ₱3,600,000 | No | ₱0 | ₱3,600,000 |
| ₱3,610,000 | Yes | ₱433,200 | ₱4,043,200 |
| ₱4,000,000 | Yes | ₱480,000 | ₱4,480,000 |
| ₱5,000,000 | Yes | ₱600,000 | ₱5,600,000 |
| ₱8,000,000 | Yes | ₱960,000 | ₱8,960,000 |
Miscellaneous Fees: What the 5% to 8% Actually Pays For
Miscellaneous fees cover the cost of transferring the condominium certificate of title (CCT) to your name. The developer collects these fees and pays the government and processors for you. Typically, developers charge between 5% and 8% of the price, with only a portion going to the government.
Government Taxes and Fees
The government’s share includes three charges. Documentary stamp tax is 1.5% of the higher value between the selling price and the zonal value. Transfer tax is paid to the city or municipality: up to 0.75% in Metro Manila and up to 0.5% in the provinces. Registration fees at the Registry of Deeds follow a sliding scale set by the Land Registration Authority: ₱8,796 plus ₱90 for every ₱20,000 above ₱1.7 million, totaling ₱19,146 for a ₱4 million unit, along with minor entry and IT fees. For a ₱4 million property, these government charges add up to around ₱112,000, or 2.8%.
Developer Charges
The rest includes paperwork, notarization, CCT processing, tax declaration transfer, and sometimes utility meter installation. These are genuine costs, but no laws regulate them, and they can differ significantly among developers.
Who Pays, and Why the Contract Decides
In a resale, the buyer and seller discuss who pays the taxes. In a developer sale, the Contract to Sell usually makes the buyer responsible for all taxes, and signing it means you agree. Always ask about a fee before you sign, not after.
When They’re Due
Fees can be paid over several months with the downpayment, paid in a single amount before you take possession, or needed before the developer can process your title. Paying in one lump sum can be problematic, as it comes at the same time as your moving costs and loan fees.
| Item | Rate or basis | Paid to | Amount |
|---|---|---|---|
| Documentary stamp tax | 1.5% of price or zonal value, whichever is higher | BIR | ₱60,000 |
| Transfer tax | Up to 0.75% (Metro Manila) | City treasurer | ₱30,000 |
| Registration fee | LRA scale: ₱8,796 + ₱90 per ₱20,000 above ₱1.7M | Registry of Deeds | ₱19,146 |
| Entry, IT and certification fees | Small fixed charges | Registry of Deeds | ≈ ₱3,000 |
| Government charges subtotal (≈ 2.8%) | ≈ ₱112,146 | ||
| Documentation, notarial, CCT processing, tax declaration, meter installation | Set by developer | Developer and processors | ≈ ₱127,854 |
| Total at 6% of net price | ₱240,000 | ||
The second-to-last row is important to question. If a developer can’t clarify what ₱128,000 for “processing and documentation” includes, compare it with other offers. For details on the transfer process covered by these fees, see how to transfer a property title in the Philippines. For additional costs beyond pre-selling, read Understanding Property Taxes and Other Hidden Costs of Buying a Home.
Move-In and Turnover Fees Nobody Quotes at Reservation
At turnover, property management takes over from the sales team and provides its own invoice. While no individual charge is significant, the total can add up to a month’s salary.
Advance association dues typically include the current month’s fee plus one to two additional months, ranging from ₱80 to ₱150 per square meter in Metro Manila. Some buildings may charge a one-time membership fee. Utility deposits are needed to transfer electricity and water into your name, with a Meralco deposit costing around ₱5,000 to ₱10,000. The move-in fee covers the use of the elevator, manpower, and permits. If you plan to renovate, a refundable renovation bond is also required.
| Item | Studio (22 sqm) | 1BR (30 sqm) | 2BR (55 sqm) |
|---|---|---|---|
| 2 months advance dues (₱80–₱150/sqm) | ₱3,520–₱6,600 | ₱4,800–₱9,000 | ₱8,800–₱16,500 |
| Electric and water deposits, connection | ₱5,000–₱15,000 | ₱5,000–₱15,000 | ₱5,000–₱15,000 |
| Move-in fee (elevator, manpower, permits) | ₱5,000–₱20,000 | ₱5,000–₱20,000 | ₱5,000–₱20,000 |
| Turnover and admin charges | ₱5,000–₱15,000 | ₱5,000–₱15,000 | ₱5,000–₱15,000 |
| Estimated total | ≈ ₱19,000–₱57,000 | ≈ ₱20,000–₱59,000 | ≈ ₱24,000–₱67,000 |
A parking slot usually comes with its own contract price, its own miscellaneous fees and its own monthly dues. In prime areas a single slot can cost ₱800,000 to ₱1.5 million. A parking slot isn’t a residential dwelling, so expect 12% VAT on it even when the unit itself falls under the ₱3.6 million threshold. Confirm this on the computation sheet.
Real property tax begins at turnover, with the developer covering it during construction. After the tax declaration is in your name, the amilyar becomes yours, and some developers charge a prorated share at turnover. Our amilyar guide explains its computation.
Financing Costs That Arrive After Turnover
The 80% balance needs a loan, which comes with one-time costs in addition to interest. Banks charge appraisal and processing fees. Both bank and Pag-IBIG loans require registering the mortgage and paying a documentary stamp tax of around ₱31,700 on a ₱3.58 million loan. Lenders also need fire and mortgage redemption insurance, which can be billed yearly or added to the monthly payment.
The interest rate is more important than the fees. In September 2026, fixed bank rates for three years ranged from 6.5% to 8.25%, while Pag-IBIG’s rate is 6.25%. Promo rates may end before a pre-selling unit is handed over, so it’s best to plan for regular rates. A longer loan term reduces monthly payments but increases total interest.
| Bank, 20 years | Pag-IBIG, 20 years | Pag-IBIG, 30 years | |
|---|---|---|---|
| Illustrative rate | 7.5% | 6.25% | 6.25% |
| Monthly amortization | ₱28,872 | ₱26,196 | ₱22,067 |
| Total interest over the term | ₱3,345,390 | ₱2,703,152 | ₱4,360,230 |
| One-time loan costs | Appraisal ₱3,000–₱5,000, processing ₱5,000–₱10,000, mortgage registration + DST ≈ ₱31,700 | Mortgage registration + DST ≈ ₱31,700, plus Pag-IBIG’s own processing requirements | Same as 20 years |
In-house financing is easy as it avoids bank income checks, but it usually has higher rates than banks and Pag-IBIG. If you choose this option, get the effective annual rate in writing and plan to refinance later. For Pag-IBIG eligibility…
Worked Example: The Real Cost of a ₱4 Million Pre-Selling 1BR
Here is Paolo’s unit, simplified: a 30 sqm one-bedroom in Metro Manila priced at ₱4,000,000, with a 12% VAT, ₱25,000 reservation fee, 20% down payment over 36 months, 6% miscellaneous fees due before turnover, ₱35,000 move-in charges, and a 20-year bank loan at 7.5% for the remaining balance.
Two key numbers are important. The first is the cash needed for turnover: ₱896,000 for reservation and downpayment, ₱240,000 for miscellaneous fees, ₱35,000 for move-in, and ₱43,206 for loan fees, totaling ₱1,214,206. A buyer who only planned for the monthly ad figure is ₱318,206 short in the turnover month.
The second point is the monthly payment after turnover: ₱28,872, which is about 19% higher than the downpayment installment. Pag-IBIG limits amortization to 35% of gross monthly income, and banks have similar caps, indicating an income of approximately ₱82,500 monthly. For more details, check our guide on the salary needed to afford a ₱3M, ₱5M, or ₱8M home.
What DHSUD Protects, and What It Doesn’t
Pre-selling buyers have protections that focus on payments rather than budgets. A developer must obtain a DHSUD License to Sell before accepting money. According to the new DHSUD Temporary License to Sell rule, any money collected before the full license is granted must be kept in escrow, allowing buyers to receive refunds if the license isn’t issued. Our explainer on the Temporary License to Sell and DHSUD’s escrow rule details what to check.
If you stop paying, the Maceda Law ensures you’ll get some money back. After two years of payments, you can cancel and receive 50% of what you’ve paid, plus 5% for each year after the fifth year. If it’s been less than two years, you have a 60-day grace period but no guaranteed refund. Whether you get back prepaid fees depends on your contract. Check our Maceda Law guide before signing.
- Your right to buy only from a project with a DHSUD License to Sell
- Escrow of payments collected under a Temporary License to Sell
- Partial refunds under the Maceda Law after two years of installments
- Refunds if the developer fails to develop the project as approved
- The misc. fee rate and what it covers
- Whether TCP includes VAT and misc. fees
- Move-in charges, advance dues and parking costs
- Your loan approval odds and the rate at turnover
What You Can Negotiate in 2026, and the Red Flags
This is a buyer’s market for condos. Leechiu Property Consultants reported around 80,000 unsold condo units in Metro Manila in the third quarter of 2026, down from 82,900. About two-thirds are priced between ₱4 million and ₱12 million. Pre-selling sales dropped 26% year on year, while ready-for-occupancy sales increased by 89%, prompting developers to offer aggressive promotions.
That allows you to negotiate. Besides a price discount, request a fee waiver, a year of free association dues, discounted parking, or a “VAT-inclusive” promo price. Make sure all agreements are in the reservation agreement or Contract to Sell, as a promo mentioned only in a chat won’t help at turnover.
- Does the TCP include VAT? Does it include misc. fees?
- What is the misc. fee rate, and can I have an itemized breakdown in writing?
- When are misc. fees due: monthly, as a lump sum, or before title transfer?
- Is the reservation fee credited to the downpayment, and is any part refundable?
- Is there a lump-sum payment at the end of the downpayment schedule?
- What will turnover cost? Ask for advance dues, deposits, move-in fee and bond.
- Is parking sold separately, with its own VAT and fees?
- Is the project under a full License to Sell or a Temporary one, and where are payments escrowed?
- Miscellaneous fees mentioned without a rate, or with no itemization on request
- Promos or freebies promised verbally but missing from the contract
- Pressure to pay the reservation fee before you’ve seen the full computation
- No clear answer on whether the project has a full or Temporary License to Sell
A developer’s history is as important as their paperwork. Our checklist on how to evaluate a developer’s track record shows what to check before you decide.
For Investors: How Hidden Fees Change Your Yield
Investors often miscalculate their returns by only looking at the ad price. Rent doesn’t increase to account for extra fees, meaning any hidden costs decrease your profit. For example, renting a 30 sqm unit in Pasig at around ₱600 per square meter leads to a monthly rent of ₱18,000. Also, include ₱250,000 for basic furnishings in your total costs.
| Cost basis | Amount | Annual rent | Gross yield |
|---|---|---|---|
| TCP only | ₱4,480,000 | ₱216,000 | 4.82% |
| All-in + furnishing | ₱5,048,206 | ₱216,000 | 4.28% |
After paying association dues, amilyar, and vacancy costs, the gap grows. Our guide to calculating rental yield in the Philippines explains how to calculate net yield from gross.
Frequently Asked Questions
Are miscellaneous fees included in the total contract price?
Sometimes. Some developers include them in the TCP; others bill them separately, often at 5% to 8% of the price, payable before turnover. If the computation sheet doesn’t say, ask in writing.
Is the reservation fee refundable?
Usually not. Most reservation agreements make it non-refundable but credit it to your downpayment. A refund is possible if the developer fails to get its license or cancels the project, so keep your official receipt.
Who pays the transfer tax and documentary stamp tax on a pre-selling condo?
In a developer sale, the buyer almost always does. The Contract to Sell assigns these taxes to the buyer, and the developer collects them through miscellaneous fees.
Is VAT charged on pre-selling condos?
Yes, when the price exceeds ₱3.6 million and the developer is VAT-registered. Parking slots are generally subject to VAT regardless of price.
How much cash do I need at turnover?
Budget for any unpaid miscellaneous fees, ₱20,000 to ₱60,000 in move-in charges, and about ₱40,000 to ₱50,000 in loan fees on a ₱3.5 million bank loan. In our ₱4M example, the turnover-month bill was about ₱318,000.
A pre-selling condo is a great way to own property in Metro Manila if you budget correctly. Get the itemized computation, include turnover costs, and compare projects on the total price. For a review of your computation sheet, send it to U-Property PH.
Want the All-In Cost Before You Reserve?
Send U-Property PH the computation sheet for any unit you’re considering. We’ll check what the TCP includes, itemize the misc. fees, estimate your move-in and loan costs, and show you the cash you’ll need by turnover.
This article is for general informational purposes only and does not constitute legal, financial, or professional advice. Market conditions, laws, regulations, and government fees change. Always consult a licensed real estate broker, lawyer, or tax professional for advice specific to your situation.
- Philippine News Agency: BIR hikes VAT exemption in sale of residential properties (Jan. 2024). [pna.gov.ph]
- Grant Thornton Philippines: VAT-exempt threshold for sale of house and lot and other residential dwellings increased to ₱3.6M. [grantthornton.com.ph]
- REN.ph Academy: Transfer tax and registration (Local Government Code rates). [ren.ph]
- Foreclosure Philippines: Registry of Deeds transfer of title fee calculator (LRA schedule). [foreclosurephilippines.com]
- Respicio & Co.: Buying a condominium in the Philippines: step-by-step legal process and fees. [respicio.ph]
- Listd.ph: Condo turnover checklist Philippines (June 19, 2026). [listd.ph]
- 3D Universal: Hidden costs when buying a condo in Cebu (updated July 30, 2026). [3d-universal.com]
- M2 Communications: First-Time Condo Buyer Guide: Metro Manila 2026 (June 15, 2026). [m2comms.com]
- Ohmyhome: Navigating fees and taxes of pre-selling condos in the Philippines. [ohmyhome.com]
- Philstar: Condo demand picks up in Q3 (Leechiu, Oct. 8, 2026). [philstar.com]
- The Manila Times: NCR residential market resilient, not rebounding (Leechiu Q3 2026, Oct. 13, 2026). [manilatimes.net]
- Gulf News: Home loan rate comparison of Philippine banks and Pag-IBIG (updated Sept. 3, 2026). [gulfnews.com]
- BalayHub: Average price per square meter in the Philippines (June 2026). [balayhub.com]
- U-Property PH: Temporary License to Sell: What DHSUD’s New Escrow Rule Means for Your Pre-Selling Payments. [upropertyph.com]
- U-Property PH: Republic Act 6552 (Maceda Law) Explained Simply. [upropertyph.com]
Leave a Reply