Homeowners Guide in Signing a Turnover Contract

Many investors think that owning a property is still favorable and marketable regardless of economic uncertainties. Despite the ongoing COVID-19 pandemic and economic downturn, the real estate market is one of the best industries for investment opportunities. 

If you’re among those who took advantage of its perks and bought a brand new home, don’t get excited too much about signing a turnover contract. You must read the contract terms carefully when it comes to Philippine homeownership. So, understand your rights as a new homeowner of a house and lot in the Philippines. 

Check out this quick homeownership guide.

Homeowner’s Checklist Before Signing a Contract

Imagine chasing your kids in your front yard while taking a sip of coffee. Then suddenly, you notice some cracks in the walls. You hadn’t seen them before you moved in and want your property developer to fix them. But, when you checked your contract, repairing the walls is not part of the contract terms.

You can already picture your future in this brand-new home, but you were disappointed because it was poorly built. These are only a few mistakes every homeowner’s made. If you don’t want to be one of the pacts, consider following our helpful guide before signing contracts.

Review your turnover contract for any fees.

A house turnover can only be done if you have paid the equity and other processing fees to release the house clearance. Other housing developer company requires you to pay move-in fees, homeowner’s association fees, and water and light installation fees. 

Before signing the turnover contract, make sure to review the fine print for any fees. Ask your agent to explain them to you if there are terms and clauses you don't seem to understand. This will help you avoid hidden charges once the turnover contract is signed.

Check the actual floor and lot area.

It is always an advantage if you all know the salient details of your contract, including the floor and unit area. So, know if such information is indicated in your turnover contract. Floor and lot area usually measure in square meters.

You don’t have actually to measure the entire property, but it is ideal to know how to make estimates. Then, let the agent confirm it for you.

Evaluate the flooring, walls, and ceilings.

When inspecting the interiors of your property, it is recommended to bring a non-partisan individual. It can be a lawyer, family member, friend, or someone you trust but can give an unbiased opinion to double-check every corner of the home. 

Start evaluating the flooring, then the walls, and lastly, the ceilings. Carefully check if there are cracks, uneven wall surfaces, or misaligned ceilings. Note them down to your turnover contract if you found something so that the developer can fix them, and don’t sign yet if it’s not fixed.

Check the furnishings included in the housing package.

Most houses have standard furnishings and fixtures, such as the toilet, bathroom, shower, kitchen sink, and cabinets. Check if these are all indicated in the turnover contract. Inspect if the flush works, identify leakages in the sink, and check if the cabinets are properly installed.

If you want a thorough inspection, it would be helpful to bring a plumber.

Inspect the electrical outlets, cables, and phone outlets.

Many homeowners overlook inspecting electrical outlets because they think it would be insignificant to check them.

Keep in mind that signing a turnover contract means you are certifying that everything is in order and working. If you miss checking at least one section of your home, it will be costly to repair since it will not cover the developer’s obligations. This includes outlets for electricity, cables, and phones. So, be sure that these facilities are also working properly.  

Take a look at your parking space.

Some residential communities don’t include parking spaces on housing packages. Mostly, they have a common parking area for residents. However, if you purchased a property that includes a parking space, be sure it is also written in the fine print. Know the specifications because if not, your car may not fit in once the measurement is not intended for your car type.

Make use of your time reviewing the contract.

It is given that you have been dreaming of living in your own home. But that doesn’t mean you have to hurry to sign the contract without a thorough inspection. Therefore, make use of your time, re-review your agreement, and check as often as you like until you are satisfied with the outcome.

Mistakes to Avoid Before the Turnover Contract Agreement

You’re nearly getting there to own your dream home once a turnover contract is released. To ensure moving in will be hassle-free, here are some mistakes you must avoid before the contract agreement.

Doing everything on your own

You think you already know how to deal with real estate purchases. But technically, these are only the tip of the iceberg. No one wants to be in an unfavorable deal since it’s not only your hard-earned money that is poured into it. Your long-term happiness is also at stake. 

Before making any real estate transaction, avoid doing everything on your own. Always seek a legal department or professional expert for non-solicitation advice. These experts will be able to see the flaws of your home and the contract, if there are any.  

Too emotional

Being too emotional can also lead to unfavorable real estate deals. So, don’t get too excited or anxious to sign the turnover contract. Keep calm to check the legalities and terms and conditions stated in the agreement, including contract termination if found unlawful.

Skipping on research

Some real estate agents do not disclose all the details or additional information until the signing of the turnover contract. They may have provided complete house features and its neighboring community but is their location flood-free? Is it closer to your essential needs or easy to find if you will have guests? 

Apart from asking these questions, avoid skimping on research. Always observe during your onsite tripping. Determine if all the listed benefits and advantages are accurate, such as checking the surrounding area.

Anyone can do real estate investing. However, getting what you need requires the help of an expert, especially if you're looking for an affordable house and lot for sale. If you want an investment-proof property, always choose a trusted developer like Vistaland and Lifescapes, Inc., builder of Lumina Homes and other popular housing brands in the country.

In Lumina Homes, there’s no clickbait and false advertising. We provide the quality home you deserve. So, let's get down to business and talk to our accredited Lumina seller today or book a reservation for onsite tripping. Worry not because Lumina Homes have over 50 locations of affordable house and lot properties in the Philippines.