12/05/2026
In ๐๐ก๐ข๐ง๐ฆ๐ ๐๐ซ๐จ๐ฉ๐๐ซ๐ญ๐ฒ ๐๐จ๐ฅ๐๐ข๐ง๐ ๐ฌ ๐๐จ๐ซ๐ฉ๐จ๐ซ๐๐ญ๐ข๐จ๐ง ๐ฏ. ๐๐จ๐ฌ๐ก๐ฎ๐ ๐. ๐๐ข๐ฏ๐๐ซ๐, ๐.๐. ๐๐จ. ๐๐๐๐๐๐. ๐๐ฎ๐ฅ๐ฒ ๐๐, ๐๐๐๐, SC emphasized that a home is oneโs refuge from harm, a fortress that offers safety and a sanctuary that provides comfort. Developers who promise to offer safe and suitable homes must faithfully fulfill their undertaking. Failing therein, they shall be liable to return the amortization payments made by the hopeful buyers.
To ensure the fulfillment of the objectives of P.D. No. 957, Section 20 thereof gives developers within one year from the date of the issuance of the license for the subdivision or condominium project or such other period of time as may be fixed by the Authority to complete the facilities and infrastructures that they advertise or offer to prospective buyers.
However, in case the developer reneges on its obligation to complete the project on time, Section 23 steps in to protect the buyers wherein no installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.
Specifically, Section 23 grants buyers ๐ฉ๐ฌ๐ค ๐ง๐๐ข๐๐๐๐๐จ ๐๐ฃ ๐๐๐จ๐ ๐ฉ๐๐ ๐จ๐ช๐๐๐๐ซ๐๐จ๐๐ค๐ฃ ๐ค๐ง ๐๐ค๐ฃ๐๐ค๐ข๐๐ฃ๐๐ช๐ข ๐๐๐ซ๐๐ก๐ค๐ฅ๐๐ง ๐๐๐๐ก๐จ ๐ฉ๐ค ๐๐ค๐ข๐ฅ๐ก๐๐ฉ๐ ๐ฉ๐๐ ๐ฅ๐ง๐ค๐๐๐๐ฉ ๐ค๐ฃ ๐ฉ๐๐ข๐, namely:
(i) to continue with the contract but suspend payments until the developer complies with its obligation to finish the project; or
(ii) to cancel the contract and demand a refund of all payments made, excluding delinquency interests
