Is It Possible to Get a 100% Refund for Delayed Real Estate Projects?

​Can I Refund My Payment If Developer Is Delayed for Project Turnover

You can’t wait to move into your new home, but suddenly the developer says the turnover will be moved to another date. It sure can be frustrating to know you have to wait a bit longer than expected for your new condo or subdivision unit to be finished. No matter the reason for the delays in the development, there’s a law protecting the clients in this situation. So in case you decide to retract, can you get a full refund for the property you bought from the developer?

Refund from Delayed Real Estate Developer

Whether it’s a house and lot in a subdivision or a unit in a condominium building, you have the right to get a refund for the full payment you made to the developer in case of delayed turnover. This can be very disappointing, especially if you’ve been expecting to move in at the promised date by the developer. Good thing you are protected by the law if ever you meet a delayed real estate developer in the Philippines.

According to PD 957 Section 23, if there are delays in the supposed turnover of the project by any developer, the buyer has the right to request for 100% refund or full refund of the total payment made including the interests.

“Section 23. Non-Forfeiture of payments. No installment made by a buyer in a subdivision or condominium project for the lot of 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 of 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 interest, with interest thereon at the legal rate.”

How to Prove the Delay

It’s important to gather evidence that will prove there is indeed a delay in the construction of the sold unit from the developer. First, consider the timeline of the real estate developer in delivering the unit at the agreed date. To prove that the project is delayed, you can check the timeline at the Department of Human Settlement and Urban Development or DHSUD, a government agency that manages housing development projects including this kind of transaction. This office is where real estate companies or developers submit their building plans including the timeline of the turnover to home buyers.

Once you have proven that there is a delay in the project, you can now process the full refund for the entire payment including the interest. Tell the developer that you want a 100% refund for the unit due to turnover postponement. In case of issues, you can consult a lawyer if you need to so that it can expedite the process.
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Buying a house or a lot of property in the Philippines can be a hassle if the agreement has been broken such as delayed turnover. But remember that you can always consult an expert to help you resolve this issue. You may contact us today if you are planning to invest in a condo unit or house and lot, whether it’s in Baguio, Manila, Cebu, or anywhere in the Philippines. Our website is also open to anyone who wants to list their properties for sale online. Just message us or talk to one of our representatives