Delayed Subdivision/Condominium Project: Can you Refund?

Purchasing your dream home in the city or in the suburbs truly gives you a sense of fulfillment. However, there are times when delays occur during the building process and it has taken a long period of time with the end nowhere in sight. Is there any recourse that you can do? 


The House and Land Use Regulatory Board issued Board Resolution No. 926 Series of 2015 or the Revised Implementing Rules and Regulations to Govern the Time of Completion of Subdivision and Condominium Projects Under Presidential Decree No. 957, Otherwise Known As “The Subdivision and Condominium Buyers’ Protective Decree” And All Other Projects Required By Law To Be Registered With The Housing And Land Use Regulatory Board. 


Section 5 states the time of completion of the project, which is “within one year from the date of the issuance of the license for the project or such other period of time as may be fixed by HLURB in accordance with its rules and guidelines, every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and electrical facilities, which are offered and indicated in the approved project plans, brochures, prospectus, printed matters, letters or any form of advertisement.” 


Section 6 also provides for the additional period of time to complete the project, as well.  


Section 10 of the law stipulates the non-completion within the approved period. It thus provides that “except as provided under Section 6 hereof, non-completion of the project within the approved time of completion shall entitle an affected buyer to exercise its rights in accordance with Presidential Decree No. 957 and the Civil Code of the Philippines, in addition to the other rights and remedies provided for by other laws as may be warranted under the circumstance. Administrative fines, sanctions and penalties shall likewise be imposed on the owner or developer as provided under Sections 11, 12 and 13 hereof.” 


Section 23 of the Presidential Decree No. 957 states for the Non-Forfeiture of Payments, which mentions that, “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.” 


Section 24 of the same law, on the other hand, states that, 

the rights of the buyer in the event of this failure to pay the installments due for reasons other than the failure of the owner or developer to develop the project shall be governed by RA 6552. When the transaction or contract was entered into prior to the effectivity of RA 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary.” 


Need further information and assistance on the refund of delayed subdivision or condominium projects in the Philippines? Talk to our team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 478 5826 or send an email to for more information.

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