Simplified Query: How can a buyer obtain a refund for a property purchase if the broker or company violated the RESA Law and PD 957?

In the Philippines, the Real Estate Service Act (RESA) Law and Presidential Decree No. 957 (PD 957) protect property buyers from fraudulent and unethical practices in real estate transactions. If a broker or real estate company has been arrested for violating these laws, buyers who feel aggrieved or misled have a clear pathway to seek refunds or damages.

PD 957 specifically addresses the protection of home and lot buyers against business practices that could be detrimental to the public. Section 4 requires the owner or developer to obtain the necessary licenses and permits. Section 5 mandates that the owner or developer should have an approved and valid registration for the project. Section 11 covers the advertising of sales, ensuring that claims made in advertisements must be factual and delivered as promised.

If a violation of these provisions leads to a scenario where a buyer wants a refund, the following steps can be typically followed:

Formal Complaint: The buyer should file a formal complaint with the Housing and Land Use Regulatory Board (HLURB), now known as the Department of Human Settlements and Urban Development (DHSUD). This body regulates real estate business practices and has the authority to hear and resolve related disputes.
Evidence Submission: The buyer must gather all relevant documents such as contracts, receipts, and any correspondence with the developer or broker. These documents will support the claim that the terms of PD 957 or the RESA Law were violated.
Legal Proceedings: Once a complaint is filed, DHSUD will review the case and conduct hearings. Both parties will be allowed to present their sides. DHSUD will then make a judgment based on the merits of the case.
Refund and Damages: If DHSUD finds in favor of the buyer, they can order the developer or broker to issue a refund of the amount paid along with any compensatory damages if applicable. The decision on whether interest on the refunded amount or additional damages applies depends on the specifics of the case and the extent of the violation.

Buyers are also advised to seek legal counsel to navigate the complexities of these laws and to ensure that their rights are adequately protected. Legal experts specializing in real estate transactions can provide significant assistance in these cases, ensuring that the filings are correct and that the buyer’s interests are vigorously represented during the proceedings.

By taking these steps, buyers affected by violations of the RESA Law and PD 957 can seek and often obtain refunds and damages, ensuring that their rights as property buyers in the Philippines are upheld.