What Is RFO?

Jun 6, 2018

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Ready for Occupancy or “Substantial Completion” means, complete to the extent Lessee may reasonably use and occupy the Demised Premises for the purpose for which the same was intended, as evidenced by the issuance of a Standard Certificate of Substantial Completion executed by the Architect and issuance of a certificate of occupancy (or other governmental approval permitting the occupancy of the Demised Premises by Lessee) subject to minor details of construction, decoration and mechanical adjustments that remain to be completed by Lessor, which do not materially interfere with Lessee’s use of the Demised Premises.
Advantages of Buying a Ready-For-Occupancy Unit

A. You can already see the finished project
RFO units are fully-constructed and developed and are ready for turnover. Unlike in pre-selling units, for RFO, you do not have to wait for years before you can get to move into the unit, or if promises will be fulfilled such as the turnover date. It is the reflection of the model units that you see in the showroom.
Since RFO units are already available for move-in, what you see is what you get. These are bare, so you get to let your imagination work (decors, furniture, and all) and visualize your future home.

B. Ready for inspection
Condo hunting is fun especially if you get to see and experience the unit right there and there. This is also known as tripping. During the visit, you get to inspect the units actual size, its condition, cuts, features, view from the window, and even the quality of the materials and the work itself.
By tripping, you get to evaluate if the unit is according to your standards—aesthetically and practically. You can even visit all your options and eventually select the one that suits your preferences and budget best. Should you wish to redesign or renovate, you already know what you are working with, therefore making the planning process easier.

C. Move-in as soon as payments and paperwork are settled
One of the best advantages of an RFO Unit is the ability to move in as soon as possible. Unlike pre-selling units wherein you will have to wait for years before you get to move in, in an RFO unit, as soon as all the paperwork and requirements are submitted and signed, and payments are already settled, you can immediately move in. This is ideal for relocating families and individuals, ex-pats, foreigners, and immigrants.

D. Avail discounts
Pre-selling units are not the only ones who can get the best deals, lower selling price, and discounts. Some real estate companies, brokers, and even owners offer discounts and move-in promos for those who will avail especially if it’s a rush sale.

E. Flexible payment options
Most RFO units offer flexible payment terms including rent-to-own, which is also known as lease-to-buy. That way, you can move in right away, pay it every month until the entire amount has been paid off.

F. Utility services are available
If you are buying an RFO unit that has been previously owned, it probably already has available utilities such as water, electricity, telephone, internet connection, and even cable so you won’t have to worry about applications and installations, just changing the name.

G. Amenities can already be used
Nowadays, one of the selling points of a condominium or an apartment is its amenities. Amenities that are Resort Styled type, and are of better quality, it’s guaranteed to get a huge demand from the market, especially for pre-selling units. Some projects get sold out immediately because of how premium their amenities are.
What’s good in an RFO unit though, is you get to enjoy your private space while getting the privilege to use the amenities in your building. Some of these include a swimming pool, fitness center or gym, function hall, and more.

H. Ready-made investment
Investing in real estate is a good decision especially if it’s a residential property because you get to earn in various ways—sell it or lease it. A prime location is one of the five secrets to consider in buying a condo. If your property is located in prime areas, chances of selling it at a high rate are great.
Purchasing an RFO unit may cost higher and require a significant amount of down payment, but with all these advantages, it can be a good idea to consider buying one. Especially if you’re aiming to move in immediately.


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