Presidential Decree No. 957 (P.D.

957), otherwise known as the

Subdivision and Condo Buyer’s Protective Decree, and its revised
implementing rules and regulations tackles this particular
subject.

Section 24. Non-forfeiture of Payments

No installment payment made by a buyer in a new or

existing 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 and clearance from the Board desists
from further payment due to the failure of the owner or
developer to develop the 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.

It is almost always that buyers of the condominium or

subdivision properties cannot do anything about the
announcement of delays in the delivery of their purchase.
However with Section 23 of P.D. 957, the buyer can
actually do 2 things:

1. Desist from further payment after due notice to the

owner or developer of the project and clearance from
the Board (HLURB) as mandated in the 2009 revised
implementing rules and regulations for the decree.
See the 2009 revised IRR for PD 957 here.

2. Demand to be reimbursed the total amount paid

including amortization interests but excluding
delinquency interests, with interest thereon at the
legal rate.

Real estate developers who renege on their commitments to their

customers can be ordered to refund amortization payments made, and
pay attorney’s fees and moral damages.
This, in a nutshell, was the ruling of the Supreme Court in the case of
“Fil-Estate Properties Inc. and Fil-Estate Network Inc. vs Spouses
Conrado and Maria Victoria Ronquillo, G.R. No. 185798, Jan. 13,
2014.”

Real estate developers who renege on their commitments to their

customers can be ordered to refund amortization payments made, and
pay attorney’s fees and moral damages.
This, in a nutshell, was the ruling of the Supreme Court in the case of
“Fil-Estate Properties Inc. and Fil-Estate Network Inc. vs Spouses
Conrado and Maria Victoria Ronquillo, G.R. No. 185798, Jan. 13,
2014.”

ADVERTISEMENT

In August 1997, the Ronquillos bought an 82-square-meter

condominium unit in the proposed Central Park Place Tower from owner
and developer Fil-Estate Properties, through marketing agent Fil-Estate
Network. After signing the reservation agreement and paying the
reservation fee of P200,000, the Ronquillos made a downpayment of
P1,552,200. They paid the P63,363.33 monthly amortization until
September 1998.
Upon learning that construction on the project had ceased, they stopped
paying their monthly amortization. Thereafter, they demanded the
repayment of the sum of P2,198,949.66 they claimed to have already
paid, plus interest.
When their demands were not met, they filed a complaint with the
Housing and Land Use Regulatory Board for the refund of their
amortization and payment of attorney’s fees, moral damages and
litigation expenses.

Reimbursement
After brushing aside the “fortuitous event” argument, the justices said
that as a result of the companies’ violation of their contractual
obligations, the Ronquillos have the right to rescind the contract and get
a refund of payments they’ve made, plus interest and damages.
This right is provided for in Sec. 23 of Presidential Decree 957 (The
Subdivision and Condominium Buyers Protective Decree) which states
that, if the owner or developer fails to develop the subdivision or
condominium project according to the approved plans and within the
time limit for complying with them, the “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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