Can A Reservation Fee Be Refunded When You Decide to Cancel A Property Purchase From A Developer In The Philippines?

November 30, 2022

The reservation fee is typically the initial payment made when purchasing real estate from developers.
In most cases, the reservation cost is non-refundable.

If, for example, you paid P10,000 for your reservation and then changed your mind one month later, you are not entitled to a refund.

The developer cannot offer the same apartment to a different potential buyer because of the opportunity loss incurred during the time you booked the home. Therefore, if you decide to back out, the developer will really lose out because another customer who may have been considering the same unit you reserved may have continued with that purchase all the way to completion in contrast to you who decided to back out.

Because of this, reservation fees are significant to real estate developers, and refund requests are generally not permitted. However, these costs will typically be added to your overall balance due in the end.