Dear Attorney,

I recently purchased a pre-selling condominium unit in the Philippines, and the developer promised to turn over the unit by a specific date. However, the turnover has been delayed for several months without any clear communication or valid reason from the developer. This delay has caused significant inconvenience and financial strain, as I have been planning to move into the unit or lease it out by now. I am concerned about my rights and the possible remedies available to me under the law. Could you please advise on the legal actions I can take against the developer for this delayed turnover?

Concerned Buyer

Answer

In the Philippines, the delay in the turnover of a condominium unit by the developer can be a significant legal issue, particularly if it causes the buyer to incur additional costs or suffer other forms of inconvenience. Buyers like you are protected under various laws and regulations, including the Maceda Law (Republic Act No. 6552) and Republic Act No. 7899, which governs condominium projects.

Firstly, review the contract of sale or reservation agreement you signed with the developer. This document should specify the exact date or period when the turnover was promised. If the developer fails to meet this deadline without a justifiable cause, they may be in breach of contract.

Under the Maceda Law, which primarily protects buyers of residential real estate on installment payments, you may have the right to demand a refund of payments made, or in some cases, demand damages for the delay. If your payments were made in full, you might have the right to rescind the contract due to the developer’s failure to deliver on time.

Additionally, the Condominium Act (R.A. 7899) and its Implementing Rules and Regulations provide that developers must deliver the unit as per the agreed schedule unless prevented by reasons beyond their control (e.g., force majeure). In cases where the delay is unreasonable, you may demand:

Rescission of the Contract: You can ask for the contract to be rescinded and demand the return of all payments made, plus interest.
Specific Performance: You can compel the developer to fulfill their obligation to deliver the unit, possibly with damages for the delay.
Damages: You can demand compensation for any financial losses you’ve incurred due to the delay. This could include the cost of alternative housing or lost rental income.

In dealing with the developer, it is crucial to formally communicate your concerns in writing and keep all correspondence. If the developer continues to ignore your concerns or fails to provide a satisfactory resolution, you may consider filing a complaint with the Housing and Land Use Regulatory Board (HLURB), now integrated under the Department of Human Settlements and Urban Development (DHSUD).

Filing a case in court may also be an option, but it is advisable to exhaust all administrative remedies first due to the time and cost involved in litigation. Legal action can include a suit for breach of contract, specific performance, or damages depending on the circumstances of your case.

It would be wise to consult with a lawyer who specializes in real estate law to evaluate your specific situation and guide you through the appropriate legal process.

This response provides a general overview of the legal remedies available for late condominium unit turnover in the Philippines. For personalized legal advice, please consult with a qualified attorney who can assess your specific situation.