Properties for sale under a Developer shall be classified as Ready for Occupancy (RFO) and Preselling or under construction projects. For RFO projects a certain outright down payment is require and the loan take out must be approved first before the buyer can use the property, some Developers use a marketing strategy “Rent to Own or Lease to Own” to attract some buyers for RFO projects.
The Preselling projects usually require no down payment, future homeowners can settle a percentage of the selling price for couple of years as their monthly amortization or equity, by the time the project is ready to use the balance must be settled in cash or loan before the homeowner can occupy the property. Project selling require earnest money or reservation fee as the first step of purchase process. In general the properties are brand new and have warranty; the Documentation and registration are being done by the Developer.
Foreclosed Bank ROPA (real and other properties acquired ) Properties were owned by the Bank or Insurance company, the Title and Tax declaration were already under the Bank’s name and ready for transfer to the new buyer. Foreclosed properties are “as is where is” its not brand new and no warranty, but there is a huge price difference or discount compare to Developer’s price. Also, expect renovations when you buy these kinds of properties. Some also has pending court cases, which will be discussed to a very interested buyer by the broker and the bank about the consequences, that the case might be inherited; buy the buyer if they wish to continue with the transaction. Typically, there is no initial cash out when you buy a foreclosed, just make an Offer and the bank will notify once offer has been approved. The bank only accept equal or higher published offer price. Documentation and registration will be done by a licensed broker or accredited salesperson.
INDIVIDUAL RESALE PROPERTY
Individual Resale Property for sale by a certain person with complete and updated documents under his name. The transfer of Title and registration will be done by a licensed broker or accredited salesperson.