Can you refund all your payments from a Real Estate Developer for delayed turnover of Condo or Land Subdivision Development?

Delayed Turnover of Condo or Land Subdivision Development: Refunding Payment from Real Estate Developer

Buying your dream home is a fulfilling achievement, especially for those who wish to live in the city or suburbs. However, real estate developers may experience problems throughout the construction process, causing delays in the project completion. If this ever happens to you, it will delay the turnover of your property for months or even years. But the question is, can you refund all your payments from a real estate developer for the delayed turnover of a condominium or subdivision lot? 

To find out, read on as we answer the question, “Can you refund your money if the developer delays the turnover of a condominium or subdivision project.” We will also share legal tips to resolve this situation, so let’s get started.

Can You Refund Your Money if the Developer Delays the Turnover?

The answer is “yes!” You can surely refund your money if the real estate developer delays the turnover of the condominium or subdivision lot you bought from them. Regardless of the reasons, whether the developer canceled the project, did not complete it, or failed to deliver it as promised, their buyers will have a right to a 100% or full refund of all the payments they made, including its interest. However, buyers can only request a refund if the developer fails to complete or deliver the project at their promised timeline. 
 
Thus, buyers who want a refund should prove that the developer is behind their timeline to complete the project. You can check the developer's timeline in a government agency called DHSUD, which stands for Department of Human Settlements and Urban Development. This agency is where the developers submit their plans and timeline of turnover of their projects. By visiting DHSUD, buyers can get proof that the developer did not deliver their project on time, allowing them to refund all their payments.

Presidential Decree (PD) No. 957

Now, let's talk about the legal grounds to refund all your payments from a real estate developer if they fail to deliver your property on the promised timeline. On July 12, 1976, the late President Ferdinand Marcos initiated the Presidential Decree (PD) No.957, also known as the "Subdivision and Condominium Buyer's Protective Decree." With this decree, buyers of subdivision developments and condominium projects can protect themselves against fraudulent acts and misrepresentations of developers, sellers, and operators. Furthermore, it's a legal remedy if the developer fails to complete the project.
 
Under Section 23 of PD No 957: "Non-Forfeiture of Payments. 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."
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Conclusion

Whether you paid in full or installments, buyers can request a refund of 100% of total payments, including the amortization interests, given they meet the decree's grounds. On the other hand, buyers cannot demand a refund just because they changed their mind. Therefore, buyers can only refund the total amount paid to a real estate developer due to their failure to complete or deliver the condominium or subdivision project based on the approved plans and prescribed timeline. In short, PD No 957 resolves the issue of delayed turnover to protect the welfare and rights of property buyers.