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Two weeks ago, I wrote about Gramercy Skypark, a condominium project that is set to be constructed in the former International School property in Kalayaan Avenue, Makati. I mentioned in that story that the Housing and Land Use Regulatory Board (HLURB) has issued a Notice of Violation to Century Properties Inc. (CPI), which purportedly owns the IS property and is likewise putting up Gramercy Skypark itself. Essentially, the HLURB ordered the real estate firm to cease and desist from selling and collecting amortization payments from prospective buyers until it has obtained the necessary permits, including a License to Sell. Understandably, this License to Sell is vital in establishing that a property developer has accomplished all of its due diligence, and is not simply out to dupe buyers of their hard-earned cash.
Despite the absence of a License to Sell, CPI advertised the project twice in the Philippine STAR, and even sold some units as proven by a provisional receipt and a payment schedule submitted by a prospective buyer. Now, a new wrinkle has developed in this project. I received a letter from Picar Holdings Inc., stating that while it owns part of the IS property, it is not part, directly or indirectly, of the condo project.
In that same letter, Picar said that it owns 27.5 percent of the IS property, while CPI owns 72.5 percent. Such division of ownership was indicated in the Transfer Certificates of Title Nos. TCT 224002, 224003, 224004, 224005 issued by the Registry of Deeds for Makati City. Furthermore, Picar said it entered into a Joint Motion to Render Judgment on Compromise with CPI last May 2007, which the Regional Trial Court approved the following month.
What is the significance of that compromise agreement? Under Clause 3 of the Compromise, Picar will totally disengage from the development of the IS property as provided under the terms of the Development Agreement and Supplemental Agreement. Nevertheless, shortly after the approval of the Compromise by the Regional Trial Court, CPI applied for approval of a condominium plan with HLURB without disclosing that Picar owns 27.5 percent of the IS property, or that Picar is not directly or indirectly part of the condo project.
Without knowledge of such vital information, HLURB issued a Development Permit for the condo project. I can understand where Picar is coming from, and why the company finds the withholding of this information by CPI particularly alarming. Think about it: Picar has no share in the profits from the condo unit sales. It will not bask in the prestige of the project should it take off as a desired living location close to the country’s premier business district. Yet if anything should go wrong with the development, Picar will be exposed to possible liability along with CPI.
I find it hard to believe that CPI’s omission of this important information (both to the HLURB and prospective buyers) can be attributed to ignorance or happenstance. The company is a veteran in the industry, and knows the prerequisites in selling property like the back of its hand.
When I brought up this condo project before, I referred to it as a “pie in the sky” because of questionable permits. Now, it seems to be more so.
[The Philippine Star]
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