Inquirer Property asked the Housing and Land Use Regulatory Board what options a buyer had in cases when the developer falls short of its guarantees.

Celina Kahanding, housing and home site regulation officer of the HLURB’s legal services, offered a few.

Seek the amicable settlement first. Kahanding said that if the buyer and the developer settled the issue amicably on their own, expenses incurred for legal filing, fees for complaints and counsel would be avoided.

Option 1: Substitute lot

If your money is with the developer already, maybe the developer has other projects it can offer to you.

Kahanding explained that if, for example, subdivision A and B belonged to a single developer and it so happened that you bought a property in subdivision A, in which further developments had ceased for whatever reason, then demand for another lot with the same value in subdivision B.

Kahanding said that subsequent agreements on this option would also depend on the location and classification of the two properties (whether or not the two developments are classified as high-class subdivisions, for example).

Before negotiating, Kahanding urged buyers to do their own research and background checks on the developers and their projects, and conduct interviews with reliable property experts and realtors on the particular area’s property values. An arbiter from HLURB can mediate while both parties negotiate.

If the developer insists that the “underdeveloped” subdivision A cannot be made as a negotiating chip because of its state of being “underdeveloped,” buyers can counter with data on lot values and price projections had the developer seen subdivision A to its completion at the target dates. Your property would also have been appreciating at the same rate with subdivision B properties.

Option 2: Refund

Kahanding said that if the developer cannot be compelled to complete the project for lack of funds and there are no substitute projects for the buyer to relocate, buyers can ask for a complete refund of their payments. A refund, however, is based on the actual money the buyer paid, and carries the possibility that the refund money would have lost some of its value, especially if the time lapsed has run into years.

In cases where the buyer has no choice but to demand a refund, the HLURB would file this as “nondevelopment.” In the buyer’s prayer, include your own demands.

Option 3: File a complaint at HLURB

The filing of interest of damages against the developer—if ever the buyer will be awarded—-will only commence on the date of the buyer’s filed complaint.

[The Philippine Daily Inquirer]