Dear Attorney,

I have been experiencing recurring flooding inside my home, which I believe is due to a possible drainage issue. Water is seeping in from the ground and also coming from the neighbor’s wall. Given that my house was developed by a real estate company, can I file claims against the developer for the inconvenience and damage caused?

— Concerned Homeowner

Insights

In situations where homeowners experience flooding or drainage problems caused by poor construction or faulty drainage systems, the legal concept of "breach of contract" or "breach of warranty" may apply. Under Philippine law, particularly under the Civil Code and laws governing real estate transactions, developers are obligated to ensure that the property sold is free from defects that would make it unsuitable for habitation. Here are key points to consider:

Contractual Obligations and Defects
Real estate developers, under the contract of sale and warranties implied by law, are responsible for delivering a property that conforms to agreed standards. If a drainage issue affects the livability or structural integrity of the house, the homeowner may claim a violation of these obligations. A hidden defect or a latent defect that emerges after the sale can give rise to legal claims.
Right to File Claims for Damages
Article 2176 of the Civil Code allows individuals to claim damages for any harm caused by negligence. If it can be proven that the flooding results from the developer’s failure to install a proper drainage system, the homeowner may file for damages. This includes repair costs and any damage to personal property.
Legal Grounds for Filing
A homeowner could assert a breach of warranty or file a case for damages based on the provisions of the New Civil Code of the Philippines. Specifically, under Articles 1561 and 1566, the developer is liable for hidden defects that render the property uninhabitable, and the buyer may either ask for a reduction in the price or demand a rescission of the sale, with damages in appropriate cases.
Recourse under R.A. 6552 (Maceda Law)
If the homeowner is still paying for the property under an installment scheme, the Maceda Law may provide protection. This law allows buyers who default on payments to retain certain rights, but it also imposes obligations on developers, including ensuring that properties are fit for habitation.
Filing a Complaint with HLURB/DHSUD
Homeowners may also bring complaints to the Department of Human Settlements and Urban Development (DHSUD), previously known as the HLURB. This government body is responsible for ensuring compliance with housing standards, and it handles disputes between homeowners and developers.

In cases like these, it is advisable to gather documentation, such as photographs, expert assessments, and repair costs, before filing a claim. Seeking professional legal advice is essential to determine the best course of action based on the specifics of the case.