HSAC cautions buyers vs unfair housing contracts
By Mariesh F. Celedeña
BUTUAN CITY (PIA) — The Human Settlements Adjudication Commission (HSAC) Regional Adjudication Branch (RAB) Caraga, while recognizing the contribution and value of many land developers to nation building, has nonetheless cautioned the public against dishonest real estate developers.
During an information drive, Attorney Carlo Franco Thomas C. Limjoco, OIC-chief regional adjudicator of HSAC-RAB Caraga, emphasized the importance of understanding buyers’ rights and the obligations of developers under the law and urged the general public and more particularly the prospective homebuyers to be vigilant when entering into housing contracts.
The public is advised to exercise due diligence before purchasing any subdivision or memorial lots, condominium units, or similar real estate developments. Buyers need to verify whether the developer has registered the project and has in fact been issued a License to Sell with the Department of Human Settlements and Urban Development (DHSUD), the government agency responsible for regulating real estate developments.
According to Limjoco, Presidential Decree No. 957, or the Subdivision and Condominium Buyers’ Protective Decree, was enacted to protect buyers from fraudulent, deceptive, or unscrupulous developers. In fact, the decree ensures that the developer cannot include unfair conditions that would take away the legal protection buyers enjoy under the law.
“In particular, those provisions in a contract where a buyer voluntarily waives their right to file a complaint against the developer or allows the developer at its own behest to delay the delivery or turnover of the property, have no legal validity. Under the law and the regulations of the DHSUD, once a License to Sell is issued, the completion date of the project is clearly stipulated and becomes a demandable obligation. This deadline, despite any stipulations in the contract, cannot simply be unilaterally extended by the developer unless such an extension is approved by DHSUD and buyers have been notified,” he said.
There are obligations by the developers mandated under Presidential Decree No. 957 that cannot be subject to any waiver by any buyer. In those instances, should those be expressly waived in any sale contract of subdivision or memorial lots, condominium units, and similar developments, the waiver may be considered invalid.
Limjoco explained that even if a buyer signs a contract containing such waivers, the law continues to protect them, and the law may still allow them to exercise those rights which were unknowingly waived by them.
The commission also identified some of the common grounds for the filing of many complaints before HSAC. These include developers having delayed the completion of the subdivision project or the turn-over of the housing units, developers not having constructed the promised facilities such as clubhouses, roads, and drainage systems or have deviated from the original subdivision plan approved by the concerned local government unit and DHSUD, the developers mismanaging the intended use of the subdivision’s open spaces, or the developers withholding the delivery of the titles of purchased lots or units. In these instances, buyers may file a case to compel the developers to perform and deliver their obligations or to cancel the contract and fully recover payments made, including claims for interests and damages.
The commission also reminded developers of their responsibility to ensure the quality and safety of housing units. Buyers who encounter construction defects, whether structural in nature or poor workmanship, may file complaints before HSAC for specific performance.
All told, considering the issues hounding many real estate developments across the country, Limjoco further stressed that HSAC must remain relentless in its information drive advocating and promoting awareness of both buyers’ rights and developers’ responsibilities if it is to become an avenue to protect the hapless and the aggrieved.” (MFC, PIA Caraga)