If I purchase a pre-selling condo or house and lot by monthly installment, what are the requirements and procedures if I want to sell it to a third party when the property is not yet fully paid.
For pre-selling projects, the transaction always starts with a reservation fee and the document to be signed for this is the Reservation agreement. This document stipulates the provision of the coming contract to sell to be prepared and the agreed terms and conditions on the reservation money which are usually non-refundable, non-transferable and within 30 days period. If the equity or down payment required is agreed to be on installment basis like for instance 12 months to pay for the 20% down payment, the buyer is expected to start paying the monthly amortization immediately 30 days after the date of reservation and every month thereafter until such equity or down payment is fully paid. There are developers who require at least 15% of total contract price before a contract to sell will be provided while there are those who require that equity or down payment must be paid up before a contract to sell can be signed. Once the Contract to sell is signed and in your possession, you will now have right over such property. You can then sell it to a third party by signing a Deed of Assignment. Of course you will only sign a deed of assignment when you are paid back by the new buyer at the amount you require. If the price of the property has gone up, you can choose either to keep the profit (difference between new price or old price) or you can sell it to break even, or sell it at a little loss if you are in a hurry to close the sale and move on to a venture you want to use the money for.
