100% Refund in Cancelling a Purchased Property
By ztuberi
@ztuberi (395)
Philippines
September 27, 2012 12:19am CST
Some were really not aware of this in Purchasing House and Lot.
We really have the right to have a 100% refund of our downpayments if the developer was not able to do what they have promised. Meaning, there is a breach of contract. Example, not complying a 4 months span of constructing your house. Or they did not constructed whats on your building plan.
Its all written at HLURB Section 23 of PD 957, a 100% refund with legal interest. I know this through my experience. The broker told us that after 16months of paying equity, they will construct the house within 3-4 months. But after 10months of waiting, there is still no house constructed. We first gave them a cancellation letter and have negotations with them. At first they really dont want to give full refund. But we fight for it, we went to HLURB for legal advice and conciliation. After 2 months, we are able to get 100% refund.
Still, if the buyer wishes to cancel because he will not be capable already of paying, he can still get 50% of how much he paid already, under the Republic Act 6552, depending how long he is already paying.
Developers and Brokers will not tell you about these. They will even tell you that if you cancel your purchasing, you will not be able to get anything.
Know your rights. Ask legal advice.
4 responses
@Fulltank (2882)
• Philippines
28 Sep 12
Thank you very much of this valuable information you shared to us. I admit that I really don't know this. I know a lot of friends whom are in your position when the developer does not meet the deadlines stated on the contract. This will really be a milestone for them and maybe others will opted to simply refund the money they already invested in this. I just hope that more people can read your post. A very simple information can mean very much to others.
@homeshoppers (6166)
• Philippines
1 Oct 12
Yes thank you for posting this i also have the same issue though my problem was i retracted mine and i wasn't able to get the money. Though in the future if ever i will decided to get one again and have the same issue at least i already have an idea as long as there's contract showing. In that case that they promise and noted in the contract to build the house for 3-4 months and failed to do so then even after 5 months they need to returned our money back even if they refused since its in the contract already. Probably if we told them about Philippine Act concerning this then they might think that we are more smarter than them
@aeiou78 (3445)
• Malaysia
6 Nov 12
At my place, there were so many abandoned housing projects and the buyers still had to pay their banks' loans for many years.
Of course, most of the buyers were the first time to buy and to own houses, and they were bullied by those very good experience developers with the loop holes of the laws.
Recently, the relevant housing authority proposed to sell the houses or properties only after the completion of the construction.
This is a good idea for the buyers or the prospective properties owners to avoid being the victims of abandoned housing or properties projects.
@rog0322 (2829)
• Cagayan De Oro, Philippines
27 Sep 12
Hi,
Nice post there. I just learned of this thing here even if I am quite familiar with Philippine laws. I shall take note of it when I shall be buying a lot in the future. For now, I shall be content to live in our old ancestral house where I grew up since birth.
