I made a mistake in availing the RENT TO OWN/Lease with Option to Purchase scheme from DMCI Homes. It started when my real estate agent offered it to me in 2020 during my viewing of The Celandine in Balintawak. I became interested because it was an option where I could eventually own the condo unit once I paid the reservation and advance deposit. Initially, the offer was enticing – for less than 100k, I could move into the condo. However, due to the post-pandemic situation at that time, I didn't proceed with getting a unit in Celandine. Several years passed until April 2024 came. I reconnected with my agent on Facebook Marketplace while I was looking for a condo with an assume balance that I could add to my AIRBNB rental units. She initially offered the Fairlane Residences in Pasig, unfortunately it was beyond my budget and kind of far from my place.
I asked her if she had any other offers for me that were cheaper and closer. She then offered me the DMCI project in Orabella Proj.4 QC. She sent me a video tour of an available unit, and it was really beautiful. The location was also ideal. It has a total area of 32sqm, with 1 bedroom, a spacious living area, a wide balcony, enough space for a kitchenette, and a spacious bathroom. As for amenities, there's a pool, gym, roof deck, entertainment room, and a bathroom. You also have the option to avail of a parking slot if you wish. After seeing the video, I immediately decided to take it along with a parking slot. I asked her about the flexible payment terms she could offer, and she again presented the RTO/Lease with option to purchase scheme, which I chose because I thought it was the easiest and quickest way to start using the unit.
What is Home Ready™?
This is DMCI Homes’ rent-to-own program that allows you to be a homeowner by leasing a unit for an agreed period, and purchasing the same property afterwards, at its lock-in price!
How does Home Ready™ work?
Home Ready™ is a flexible way for you to finally start owning a home.
- At least 60% of the Lease Amount
Save for your down payment while renting. At least 60% of your total lease payment will be credited as part of your down payment. The creditable amount may vary based on the project location and unit size. - 10% Down Payment
After the lease contract period, you'll have the option to purchase the unit by settling at least 10% of the unit's total contract price. Home Ready follows the 10/90 payment term, wherein the 10% down payment consists of the creditable amount from your total lease payment. The remaining down payment balance should be paid through cash. - 90% Loanable Balance
You may opt for bank financing or in-house financing in terms of the 90% balance payment. DMCI Homes has an array of accredited banking partners that can help you once you avail this lease-to-own program.
What are the advantages of Home Ready™?
- Price Protect
Price Protect is a perk that we offer to our rent-to-own clients. If you decide to purchase your leased unit, you will be able to enjoy its lock-in price or no selling price increase from the start date of your lease. - Instant Move In
Have a firsthand experience of DMCI Homes' quality, resort-inspired lifestyle once you move in as a lessee. Since all Home Ready properties are readily available, it will be easy for you to jump into a new lifestyle and step into an established community. - Free Property Evaluation
Compare the growth of the property value after the leasing period versus the purchase price when you availed this rent-to-own program.
I was then required to pay a reservation fee of 22,000.00 pesos for the unit and 7000.00 pesos for the parking to start the sales process and document processing and I promptly paid this amount. After the documents were processed, I sequentially paid 58,000.00 pesos for advance and deposit, just similar to a standard renting. Overall, I paid 87,000.00 pesos for the unit and parking slot.
Now the day of turnover of the unit and the key has come. Honestly, I personally saw the unit on the very day of turnover. Of course, I was happy and excited during those days, and I immediately started the interior renovation and design, as well as purchasing the appliances and furniture to make it available on AIRBNB. After several months, the occupancy has been okay so far, but when September came, the unit's occupancy wasn't as good as the past few months, and at the same time, I also have other units with monthly amortization payments to maintain. In short, I was unable to pay on time on my scheduled due date.
To be able to update my payment, I deposit a check payment for the month of September, it was already past clearing time, so the teller just received the check and put a stamp on it indicating LATE CLEARING, I thought my payment was okay all along since I hadn't received any updates or emails from the leasing department. However, after two weeks, I received an email informing me that my check payment didn't go through. They asked me to verify it with the bank where I deposited the check, which I did. But they said they couldn't wait for our update, so they immediately disconnected the utilities again. I get back to the Leasing department and explained what happened and why the payment didn't push through, unfortunately, the check payment didn't push through because of the wrong date format made by my staff. I asked for confirmation if they could reconnect my utilities even if I only paid for September, since the October bill had also arrived. Regardless of the matter, they refused and said I needed to pay for October as well, even before its due date, in order to have the water reconnected. The total amount now including penalties, is 56k.
While negotiating my payment with the leasing department via email, I received another email of NOTICE TO VACATE AND PADLOCKING OF THE UNIT. On the same day, they
padlocked my unit. I called the PMO if I can at least get my things, but the leasing department informed me that I am no longer allowed to enter the unit nor retrieve any of my belongings until I settle the 56k arrears. Additionally, there will be additional fees incurred as long as my belongings remain in the unit, as per their advice:
"Please note that there will be an accumulation of penalty and rental fee on every due date that will pass that will be charged to your account as long as your belongings are still in the unit."
Imagine what if I really lived there? I might sleep somewhere without any belongings whatsoever.
I leave it to you to judge whether this is fair. They refuse to accept my partial payment and also withhold my belongings while piling on numerous penalties and charges.
In fact, I am already willing to forego the 87k reservation and deposit since the contract was not completed, and I am also willing to vacate the unit. But being held up as if your belongings are being forcibly taken from you, and then being bombarded with penalties and other charges, is too inhumane in my opinion. I don't know if such actions are still legal even if a signed and notarized contract is present.
My mistake, which I admit, was not thoroughly reading the entire contract especially the part that pertains to default of payment, which is partially shared below:
- 7th day of default – Disconnection of your utility connection and suspension of amenity privileges.
- 8th day of default – Issuance of Notice to Vacate effective immediately.
- 15th day of default – Prevention of access to the Leased Premises via unit padlocking and account cancellation based on the contract provision.
- 30th day of default - Removal and/or Disposal of Sequestered Assets
NOTE: DMCI don't give grace periods nor accept promissory notes after your 7th day of default.
I hope there's a lawyer who can read my blog and provide me with advice on what is right and what I should do. For now, I have just left my belongings with them. Fortunately, I have a spouse who keeps me sane in these trying times. He told me to just let it go, that they're just material things, and we can always buy them again, rather than getting stressed.
This blog is not meant to discredit DMCI. I am only sharing my experience in availing a property from them. In fact, I still have another existing property with them in Celandine, and so far, we haven't encountered such a situation again. But if ever, I have learned my lesson. Time will tell if after 2 years, I will decide to continue. For me, I can say that I made a mistake and a bad decision because I did not thoroughly study the scheme, and I did not read the contract properly. I made a bad decision because my experience was not good, and I lost money, belongings, and effort.
For those of you who are planning to buy any property, study and carefully read the contract. Ask everything you need to know from your agent before closing the sale. Don't be impulsive because the money you will spend is hard-earned.
But just because my experience wasn't good doesn't mean yours will be the same. We have different situations, so our possible outcomes may also differ. This is just to give you an idea of what you might face if a similar situation comes your way.
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