What are the "closing costs" in a condominium investment?

For those condominium unit buyers whose condo units will be turned over in 2008, you have to be ready with the "closing costs". For the usual condominium projects, the "closing costs" will cover the following:

a) Documentary stamps tax - 1.5% of the total contract price (TCP)
b) Registration fees - approximately, 0.5% of TCP
c) Transfer taxes - 0.5% of TCP
d) Meralco (electricity) deposit  - This will vary depending on the condo development. Best estimate is Php 10,000-Php 25,000
e) Condominium Corporation Capitalization Costs - This is a one-time membership fee and the fees will vary depending on the condominium development. Best estimate will be Php 500-600/square meter
f) Title processing fees/Legal Fees
g) Other Miscellaneous Fees

PLUS

Upon move-in, unit owner has to pay advance condominium dues.  Some condos will charge dues on a monthly basis or quarterly basis.

Ayala Land, developer of The East Tower at One Serendra,  has already incorporated these "closing costs" in the total contract price of condo units.

Brittany Corporation, developer of Avant at the Fort, has already incorporated the Documentary Stamps Tax, Registration Fees, Transfer Taxes and other legal fees in the total contract price.

Just in case there is an increase in the closing costs upon unit turnover, for instance, additional taxes charged by the government, the unit owner will shoulder the additional cost.

For other condominium developments, these "closing costs" are NOT included in the total contract price, thus, the buyer will pay them upon condo unit turnover. 


Source: Real Estate Movers, Inc. Research


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