Why Buy a Pasalo House & Lot in the Philippines

You may be thinking about the trend in the Philippine real estate market nowadays where buyers are showing interest in pasalo properties like condominium units in the metro. Well, this is a nice idea because of the many benefits it offers. For instance, it’s more affordable compared to buying a new house and lot or condos in the market today. So let’s find out why it’s a good decision to invest in these so-called pasalo housing units in the Philippines.

Is It Okay to Buy Pasalo House?

The answer is yes! Pasalo properties refer to condos or housing units that the owner is still paying for but are being sold due to personal reasons. For example, you have a friend who bought a property through bank financing and the loan is payable for 15 years. Your friend has already paid for the first five years of the mortgage and now wants to sell it because of an emergency. You agreed to continue paying for the installments as well as the balance or principal from the bank, Pag-IBIG, or the developer, and pay your friend the total amount he paid for 5 years. You will now be the one to continue the mortgage, hence the name “pasalo”.

Benefits of Buying Pasalo Properties

According to experts, there’s no problem with this kind of transaction. Investing in a pasalo property has many benefits for the buyers including the following: Help the seller in need of cash or emergency funds.

Save the seller from getting blacklisted by the bank financing the loan and avoid foreclosed property.

The buyer gets the pasalo property for a more affordable price than its market value five years ago since the seller has already paid for it. Therefore, it’s a smart decision to buy a Pasalo house and lot because you save a lot of money while being able to help. This kind of transaction is also applicable during the pre-selling or downpayment for the installment of a property.

Is It Safe to Buy Property on a Deed of Sale?

Aside from pasalo properties, you may also wonder if it’s okay to buy a house and lot with only a Deed of Sale. Yes, it’s okay if you transact with a trusted seller. But how does this usually work? Let’s say you have a friend who bought a property from a developer. The developer issued the Deed of Sale or the document that proves your friend paid the full amount of the property. But he changed his mind and now wants to sell the property. You are interested in buying the house, but there’s no title and can only give you a copy of the Deed of Sale.

There’s no problem in buying a property with only a Deed of Sale. All you need to do is sign a Deed of Assignment to give you the rights to the property. This document will prove that you are now the new owner of the said property. You need to submit the Deed of Assignment to the developer so that they will issue a new Deed of Sale named after you. The developer will then process the new title under your name. This is a crucial transaction and you must only deal with a trusted seller to avoid double sale. Contact us today if you have other related questions before buying a property.