4 Steps to Refund Payment from Real Estate Developer Due to Delay Completion of Project (House-and-Lot or Condominium)
How to Refund Payment from Real Estate Developer for Delayed Turnover of Subdivision or Condominium Project
Are you planning to buy your dream home in a subdivision? Or maybe you want to own a condominium unit in the city? Whether you're still thinking of buying or have already bought one, it's essential to know what measures to take in the event the seller or real estate developer fails to turn over your property as promised. Although no one wants to back out from purchasing their home, the best thing you can do is to refund all your payments if the real estate developer is delayed in completing the project based on their prescribed timeline.
But how do you refund your money from a real estate developer? To find out, read on as we share the four (4) steps on how to refund payment from a real estate developer for delayed turnover of a subdivision or condominium project.
Step 1: Ask the developer for a 100% refund of payment.
This process is simple. All you have to do is visit the developer's office and talk to the officer in charge. Inform them that you will cancel the purchase of the property since they're delayed in completing the project, and you'll refund all your payment. But if they don't agree to refund your payment, proceed to the next step.
Step 2: Go to DHSUD.
The second step is to visit the Department of Human Settlement and Urban Development (DHSUD) office. Here, you'll get a Notice for Conciliation. After obtaining the said letter, you can personally give it to the developer or let DHSUD send it. This letter invites the developer or seller of the property to visit the DHSUD office and discuss the problem. Once the developer receives the Notice for Conciliation, you can proceed to the third step.
Step 3: Attend the Conciliation Conference.
Through the Conciliation Conference, the officers of DHSUD, the buyer, and the developer/seller will discuss the problem face-to-face. The problem is usually resolved with the said conference. However, you should proceed to the final step in case the developer is coldhearted and does not agree to refund your payment even though they know they're delayed in delivering the project.
Step 4: File a complaint at HSAC.
Your last resort is to file a formal complaint at the Human Settlement Adjudication Commission (HSAC) if the developer or seller still doesn't agree to refund all your payment. This court is designed for complaints regarding problems in selling properties that involve a real estate developer. The function of HSAC is to exclusively hear and decide cases about real estate transactions and developments. Nonetheless, buyers usually don't reach this stage.
Real estate developers are well aware that they don't have a chance of winning the case if the reason for the buyer's refund is due to the delayed turnover of a subdivision or condominium project. Consequently, buyers are protected by Presidential Decree (PD) No. 957, also known as the "Subdivision and Condominium Buyer's Protective Decree." The PD No. 957 safeguards buyers of condominium and subdivision projects from any fraudulent activities and misrepresentation of sellers, developers, and operators.
It's a legal solution for buyers who want to refund all their payments from real estate developers for failing to deliver or complete the property as promised. With PD No 957, buyers are allowed a 100% refund of their payments, including the interest, given they can prove that the developer failed to deliver or complete the project at their prescribed timeline. Therefore, buyers should visit DHSUD to check the developer's timeline, proving they did not finish the project on time.