It should be every developer’s policy to refund all installment payments made by defaulting buyers if there are mitigating circumstances

Majority of home buyers today are middle class. Many are renters who are buying their first home. Whether they are condominiums or townhouses, average price of these middle class homes range between P2.5 million to P4 million. With 20% down payment being the norm, a buyer will have to initially pay P500,000 for a P2.5 million home and P800,000 for a P4 million home either upfront or spread over two or three years. For those in the middle class, this is a fortune and may even constitute their life’s savings.

Currently, there are only two laws that provide refund for those who default on their installment payments: the Maceda Law and PD 957.

I will not delve into these two laws as I have extensively discussed them except to say that Maceda Law is for those defaulting buyers seeking refund resulting from their inability to pay and PD 957 is for those seeking refund due to the fault of the developer.

In the Maceda Law blog post that I wrote, I received around 80 questions (through the comment section or via private messages and even phone calls) from buyers who can no longer pay for their homes.

The Maceda Law was promulgated in the 1970’s when most homes for sale were already built and ready for occupancy and full down payment had to be paid within 30 days upon reservation. I am guessing that back then, a home buyer can move in to his new home as soon as he paid the full down payment and when the financing bank issues a bank guarantee to the developer.

At that time, it is understandable that under the Maceda Law, only those buyers who default on their installment payment after a minimum of two years are entitled to a refund to 50%. Why only 50%? Because the buyer has already used and lived in the house for almost two years.

Today, things have changed. Today is the era of PRE-SELLING. In the biggest bulk of the Philippine real estate market, the middle class condominium, developers sell their projects even before the first hole on the ground is dug. With flexible down payment terms that are payable up to three years and with high-rise condominiums taking an average of 3 ½ years to 4 years to build, it means that if all goes well with the buyer, he has already fully paid his down payment and started paying bank amortization for the 80% balance before he can move in to his unit.

A middle class person who will buy his first house, probably the biggest financial decision he will make in his entire life, will never blindly jump into this arrangement without planning his personal finances.

Unfortunately, not all plans work out. In the comments I received in my Maceda Law blog, the most frequently cited reasons for defaulting on their payments are loss of job, business bankruptcy, legal problems and sickness. Unfortunately, some of those who defaulted are not covered by the Maceda Law. Even if they are, considering that they have not yet taken possession of their property, the Maceda Law is no longer adequate and to my mind needs to be amended.

In one Reservation Agreement that I read, it says:

Any failure on my (buyer’s) part to pay the amortization of the down payments and remaining balance on due dates, or deliver the post dated checks on due dates, shall entitle the seller to impose a penalty at the rate of three (3%) percent per month and/or cancel this agreement on the unit without prior notice and all payments shall be forfeited as liquidated damages.

That to me is very unfair. Liquidated damage is defined as:

Present in certain legal contracts, this provision allows for the payment of a specified sum should one of the parties be in breach of contract. This is meant as a fair representation of losses in situations where actual damages are difficult to ascertain. These liquidated damages are meant to be fair rather than punitive.

I can accept that the reservation fee can be forfeited but forfeiting the down payment and the amortization as liquidated damages is unacceptable. Even the 50% refund offered by Maceda Law is no longer adequate since most defaults happen before actual ownership and possession of the property by the buyer.

For the developer, liquidated damages include the commission already paid to the agent, administrative expenses for processing the sale, opportunity cost of having sold the property to a buyer who defaulted instead of to someone who could have paid for it in full and marketing expense which could be spread over the total number of units in the project.

Given the above, forfeiting all payments or even just 50% of all installment payments under the Maceda Law is unfair and punitive.

My proposal is hold all payments made by the defaulting buyer, open his unit for sale and only give the refund including down payment and amortization (net of fair liquidated damages) when another person buys his unit.

These home buyers who became victims of circumstances which are not of their doing deserve sympathy not punishment.

“Nalubog na nga, huwag nyo namang ibaon pa lalo.”

Thank you so much

jun sanchez
Licensed Real Estate Broker
PRC Registration Number 4562




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  1. Hello Paul,

    Asking for a refund is not as simple and easy as some may think. But if you feel strongly about it, like I always say, you may file a complaint against the developer at the HLURB.

    At the end of the day, only HLURB, not I, can help you with your problem.

  2. hi sir,
    question lang po. I already paid the reservation fee 20k and 10% dp full last May 2014, but untill now (Sept 2014) no construction ang nangyari. Nawalan na po ako ng gana para ipagpatuloy pa, makukuha ko pa ba ang full refund sa DP since ayaw ko na ituloy at kasalanan naman ng developer na delayed ang project nila kc daw nagpalit ng contractors.
    thanks and more power

  3. Hello Oliver,

    If what you meant by “no structure: is that the developer reneged on its representations and obligations to provide and properly maintain subdivision roads, drainage, sewerage, water systems, lighting systems and other basic requirements despite the fact that you bought your property in 2001, then the developer is in violation of PD 957.

    The most important stipulation of PD 957 in so far as protection of the buyer is concerned is found in Title IV Section 23 that says:

    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.

    So, in my non-lawyer’s and non-expert’s point of view, if the developer reneged on its representations and obligations to deliver the basic requirements of the project enumerated above, you are entitle to a full refund plus legal interest under Title IV Section 23 of PD 957.

    I hope this helps


  4. Good Day Sir June,

    Not sure if my previous inquiry made it to your inbox. I was searching through the net regarding the subject of Maceda Law, defaults and payment refunds regarding property and found your forum. Hoping to borrow a little bit of your time and get your expert advice on the matter. It is quite a lengthy history as it dates back to 2001 and would like to email you more info so that you can perhaps understand the full picture and give a better advice. A quick summary of the situation is that I had purchased a “simple lot” without any house or structure (undeveloped lot at the time still with existing wild trees and boulder rocks) with Sta. Lucia Properties. So after reading your post and some of of your readers post, it appears the norm of the law focuses on the developer/property holder’s investment on the property thus creating a specific % that can only be refunded to the buyer. Various factors in consideration, though mainly identifying that the value or % of money to be refunded is based if the buyer has either paid beyond the 2 years of the contract or if the payment that has been made is less than 2 years. My 1st question is that does the Maceda Law apply to purchase of lots as well even though it appears (to my knowledge) limited funds or investment has been made by the property developer on the lot itself? It seems that the law takes into consideration the developers investment on the property, i.e. construction or building the house or other structures. But in this case, there is no structure on the lot. My 2nd question refers to the % Sta. Lucia have told me that they would refund which is only 30% of what I had paid. I had purchased my land in 2001 initially and had moved all payments to another lot when they could not produce the title after I had paid 80% of the total cost, I asked for the refund of my money afraid that something abnormal was going on. Around 2006 waiting for them to produce the title for at least another year, I demanded refund of my money. I was told they would not be able to refund my cash but then suggested to transfer the money to a new property where the title was about to be released. This second purchase of lot is where I became default due to loss of income. I have heard and searched the net regarding Sta. Lucia’s unfair work practices and even at times subject buyers with hidden fees, penalties, etc. It appears there are several cases as well pending against Sta. Lucia due to various reasons. Though I want to take legal action, I am reluctant to do so due to the cost of lawyers and legal fees. Perhaps with your kind assistance, you can give me proper advice and what actions to take. Any assistance will be greatly appreciated Sir June. Thank you in advance.

  5. Hello Rommel,

    You are not entitled to any refund if you decide to cancel now. To qualify for a 50% refund, dapat nakapagbayad ka ng monthly installment ng 24 times.

    Thanks for dropping by.

  6. Hi Sir,

    Good day!

    Sir quick question lang. I’m currently 3 months behind my amortization. Next month pa kami mag 2 years sa condo na binili ko.

    If ever I decided to discontinue it, me marerefund po ba ko?

    THank you very much.

  7. Hello Jesse

    Maliwanag ang sinasabi ng HLURB na hindi pwedeng ibenta ang isang project kung wala itong License to Sell. August 2011 kayo bumuli sa Profriends pero September 2012 lang lumabas yung LTS nila. So pwede kayong makakuha ng full refund dahil wala pa silang LTS nung bumili kayo.

    Pero ihanda nyo sarili nyo. Kahit alam ng Profriends na bawal sa batas yung ginawa nilang pag-bebenta, hindi basta-basta nagbibigay ng refund yan.

    Marami na kayong nabiktima ng Profriends. Sumali ka sa Facebook group na Profriends Problems at Profriends Victims at humingi ka ng payo sa mga miyembro doon.

  8. kumuha po kc kmi ng bahay sa profriends last august 2011. tapos na po kmi mgbayad ng down payment for 15 months amounting to almost 140k ksama na reservation fee. Apply sya through bank financing. Sa kasamaang palad po na deny ang application namin dahil may nakitang mga unsettled amounts ang misis ko. After na declined kmi sa bangko, autonatic dw lipat kmi sa in house financing na masyado pong mabbgat, ndi namin kaya. Sa bank financing po kc kung na approve kmi almost 8k lng magiging monthly namin, sa in house nila almost 18k monthly. Hindi po namin kayang magbayad ng ganung kalaki monthly. Gusto na lng po naming ipa cancel ang application namin, gumawa kmi ng letter of withdawal., after 1 month ang sagot po nila hindi dw granted ang request namin. This August 5,2014 dapat magbabayad na kmi ng 18k sa in-house nila, hindi po kmi nkapagbayad. Ang sabi po after 3 consecutive months na hindi kmi magbayad, mafo-forfiet dw ung application namin, wala kmi makukuha. napag-alaman din po namin, na September 2012 lang lumabas ang License to Sell nila.

    Pwede po ba kmi mag-demand ng full refund?
    sana po matulungan nyo kmi

  9. Isa lang dapat ang date of issuance ng license to sell. Makikita ito sa bandang kaliwa sa ilalim ng dokumento pagkatapos ng OR number. Verify mo sa HLURB.


  10. Hi po… regardjng po sa LTS, sa date of issue eh dalawang date ang nakasulat 3-12-12/10-03-13 ano po ba ang totoo dto?

    December 2012 ng umpisa kmi magbayad ng downpayment if base dun sa itaas n 2013 pa na issue ung LTS it means po ba na pwede kami kumuha ng full refund sa developer dahil wala silang LTS nung ngstart kami magbayad. Gusto n din po nmjn talaga i gjve up ito at irefund ang mga perang jbinayad namjn dahil sa sakit sa ulo ng developer na ito.. sana po eh masagot nyo ito. Salamat po.

  11. Hello Ma’am Mona,

    Sorry po sa late na reply na ito.

    Hindi po dahil hindi nyo pa natitirhan yung bahay na binili nyo at nagkaroon kayo ng financial problem ay pwede nyo nang i-refund yung naibayad nyo.

  12. Hello Ma’am Rosario,

    Please pardon me for this late reply.

    Since there is no way on earth the developer can finish the condo soon; in fact they have been delayed for six months in their promise to deliver, I suggest you file a complaint against the developer at the HLURB Regional Office that has jurisdiction over the place where the project is located. Invoke your right for a full refund of all that you paid including amortization interest under PD 957.

    Please pay special attention to Title IV Section 23 of the law.

    Never agree to their offer of a 50% refund as it only applies to buyers who have lost the capacity to pay their succeeding installment payments. The non-delivery of the condo is the developer’s fault, not yours.

  13. Rosario Cruz says:

    Good day, ask ko lang po me napurchse po ako condo fr majorhomes d2 sa silang cavite last May 2010 ngbyad po ako ng 3yrs sa down payment na 25% ang sbi nila unit will be turn over on DECEMBER 2013 pero til now po di pa gawa yon condo hukay pa lng po gsto ko na lang sana bawiin yon binayad ko pero sbi nila 50% lng daw po ang ma refund ko anopo kaya ang pwede ko gawin pra mabawi ko yon pera ko…salamat po

  14. Mona Santos says:

    Sir ask ko lng po kung yung DP ay marerefund ko pa sincedi pa nmn kami tumitira? 3 months navyung nai down ko , this month may kasunod ma payment nnmn eh gusto ko na po i cancel kc nag ka problema po aq. Kausap ko po agent kaso wl po daw cl alam sa rules , i called the office sasagot cl i papasa sa accounting tapos wl na po sssgot.

  15. mary grace says:

    sir jun helu po ask ko lng po kung sa 50%refund my deduction pa po ba un?sabi kasi ni camella my admin charge,oppurtunity cost at ung reservation fee di po kasama po ng payment nmin is 688k ang marerefund lng po nmin is 150K DAHIL SA MGA DEDUCTION PA DAW PO


  16. Hello sharon,

    Although, Robinsons Land and the bank from which you applied for a loan are owned by the same holding company, the operations of the developer are separate from the operations of the bank. Hindi ba pwede pa kayong mag-apply ng loan sa ibang “partner” banks ng Robinsons Land? If not, you have no other alternative but pay the balance out of your own pocket or go in-house financing, na parehong mabigat.

    If for no other reasons, you cannot claim a full refund. Under Maceda Law entitled lang kayo sa 50% refund.

  17. Hi sir. Yung case nman nmin nbyran n nmin yung 20% down pmt the problem is di kmi maaprove ng bank. Pwedi po ba kmi mg request ng full from robinsons land corp? In the first place, they should not have not approve our application from the start alam nmn nla requirements at policy ng mga bank. Tapos sarili pa nilang bank denicline kmi twice ng d nman alam ang reason. Naging good payer nmn kmi for the past 3 yrs sa pgbyad ng equity o down pmt sa knila. Thank you..

  18. Hello Lei

    Ireklamo mo sa Legal Services Group ng HLURB for possible violation of PD 957. Please read this. Eto numbers nila: 927-3061, 920-8749. Humingi ka ng payo sa kahit sinong abogado dun.

    I hope this helps

  19. Sir,

    We purchased a house and lot in cavite, pre-selling in June 2012. They said that after 18 months we can move in na. However, until now, we have not moved in and worst, when i asked them the status of the construction, 4% palang.
    I am planning to discontinue this purchase, will i be able to get a refund?

    How about the case of my friend, same developer. but she already paid a one time payment of almost 50% of the contract price and no unit has been turned over to her until now.

    Your comment is highly appreciated. Thanks in advance. God bless you!

  20. Hello Lory

    I’m sorry to say this but negligence is very subjective and only the HLURB can determine if the negligence that you alleged the developer committed entitles you to a refund. They need to know “all” the facts, not just from you but also from the developer before they can decide on the matter.

    I suggest you call the Legal Services Group of the HLURB at 927-3061 or 920-8749 and ask any lawyer there how you can remedy your problem.

    Again, pardon me for not having a better solution to your problem.

  21. lory lingwa says:

    my question is this: I paid my lot in 30 months deferred cash 0% interest starting may 8, 2012 (meaning less 24months of payment) and i requested a re-structure for 10years instead last 0ct. 7, 2013 but the developer failed to send me the correct computation. as i go for follow-up as i may not be amenable with the computation, the one handling my account did not even replied nor endorsed my account to anyone from that office. so as i frequently following it through, i decided already not to push through because of that reason. when i sent the request for refund, someone replied and sent me an SOA and new computation which is lower that the first one (meaning, there is a big discrepancy on the total amount). aside from disappointment, penalty is also running and it is not my fault anyway. what should i do since i sent the refund already? it is their negligence anyway! can i demand for a whole refund less the marketing expense or only the 50%?

  22. Hello Chris

    I don’t think that’s the kind of mitigating circumstance that would warrant a refund.

  23. Sir, i just recently paid the 10% down payment 1 week ago. 10% is payable for 36months.
    The condo is still pre selling.
    Issue: can i refund? Change of plan, my gf’s preggy and realized i needa real house instead of a 1 br condo.
    Is it possible?

  24. Hello Sheila

    You and your husband made a mistake by not issuing a “consularized” Special-Power-of-Attorney to someone local who could have done what the bank had asked of you.

    You signed a contract to sell that says that in case your bank loan application is denied, you are given a short period to signify with the developer how you are going to pay the balance of your condo purchase, that is either through in-house financing or lump sum payment.

    If neither option is viable to you, you may ask the developer to cancel the contract and ask for a refund under RA 6552 or Maceda Law. In your case, you are entitled to a 50% refund of the P800k.

    Or, you may sell or “assign” your rights to an interested buyer (see Section 5 of the Maceda Law). But since you are pressed for time, this is very improbable to pull off.

  25. Sheila Cabahug says:


    I have a Makati condo unit ready for TO since November. The problem is when I was trying to arrange for bank financing, the bank we approached was asking my husband for clearances on previous loans he had way back 10 years ago. Since we are both based abroad, he was not able to do so. We paid a total downpayment of almost 800k for 3 years with the developer. Can you advise us on what’s the appropriate course of action to take as we are given until January 1, 2014 to settle all balances including penalties.

    Thank you

  26. Hello Richard,

    Check with the Regional Office of the HLURB that has jurisdiction over the place where the project is located. Ask if the project has a License to Sell (LTS). If it does not, chances are the project has been issued as cease and desist order by the HLURB, i.e., they are not allowed to sell, much less collect payment.

    Kung walang LTS, you may demand for a full refund of everything that you have paid.

  27. Hi Sir Jun,

    I purchased a unit in one of the leading real estate developer for condominiums around Quezon City and i filed a letter to the developer that i’m cancelling my contract with them and as of now they kept on sending me letter that i have failed my monthly obligation for the down payment on my purchased unit. I have paid a total of 22 checks that’s around 300k and the developer was telling me that i can’t refund all that i have paid even if i reasoned out to them that i am investing for nothing since i always check the site and not a single column or structure have been constructed. Anyway, is there a way that i could refund everything that i’ve paid to them?

    Thank you and would really appreciate your advise!

  28. Hello Sherwin

    Okay na sana kung hindi ka pumirma sa kontrata noong August para sa inalok sa iyong replacement unit. Qualified ka na sana for a full refund under PD 957 dahil yung three (3) years na delay ay sapat na for a refund. Pero nung pumirma ka noong August, binigyan mo pa sila ng “pisi.” Sa madaling salita, nabale-wala na iyong three years na delay.

    Wala kang magagawa kundi maghintay hanggang December kung makakalipat nga kayo. Basahin mong maigi yung contract na pinirmahan mo noong August. Pag iyan ay may escape clause na pwede nilang i-extend ang turn over beyond December, wala kang magagawa kundi hintayin yung extension date. Kung wala naman, isumbong mo na sa Legal Services Group ng HLURB. Eto tel number nila: 927-3061, 920-8749

  29. Hi Sir

    Good day

    Ask ko lng kung ano pa ba ang dapat kung gawin. Isa po ako sa kumuha ng Townhouse unit sa isang Realty Co n may kaso ngayon, (di ko na lng babanggitin ung name) Natapos ko na po ung downpayment since 2010 pa at since nag kakaso sila hinde po natapos ung bahay. As of now 3 yrs na po ako nangungupahan. Last May, nag alok sila ng replacment unit na almost complete na, pumayag po ako kahit may pagawain pa at may kataasan na ung monthly. napirmahan ko na po ung bagong contract since Aug pa. at napag usapan nmin na this Decemeber kami lilipat. Sir/Ma’am hanggang ngayon wla pa ring silang response sakin halos araw-araw na ako nag uupdate ang sabi na pirmahan na raw pero wala daw sa office ung contract. Ginagamit na po namin ung Advance namin sa bahay. Paano pag hinde pa rin kami makalipat? anu po ang next step ko. Mag 4 years na kaming hintay ng hintay. Naka ilang contrata din kmi na pinipirmahan pero wala namang bahay n binigay. Pahabol po na tanong, di na po ba pwde kunin ung downpayment ko para sa iba n lng ako maghanap.

    Salamat po

  30. Hello DAC,

    Are you buying the property from a private developer or from an individual owner/seller? If you are buying from a developer, you better read this: Adhesion contracts and how they make buying real estate difficult for the ordinary Filipino.

    If you are buying from an individual owner/seller, you can refund the down payment you paid as the sale has not been finalized yet by a Deed of Absolute Sale since you said that all agreements were done verbally which is not valid. All real estate transactions should be put in writing to be valid and enforceable.

    If the seller still refuses to give you back your down payment, I suggest you get the help of a lawyer.

  31. Hi, good day!

    I am buying a property and applied it through loan and the bank only approved 70% of the selling price. There are no contract or black and white made yet aside from the down payment given to the seller. When we are about to finalize everything and process the documents required by the bank for our loan, the seller and I dint agree on the mode of payment for the remaining balance and there are documents that the buyer wants me to accomplish which I believe are irrelevant. I want to cancel our deal, can I get my downpayment back?

    Thank you and will appreciate your advice on this.

    More power!

  32. Hello Meanne,

    I’m afraid you are not entitled to any refund regardless of how much it hurts. The Maceda Law is a very short, simple and straightforward law that anyone who reads it carefully will know with certainty if he is entitled to a refund or not. It is so clear that NOT even the court of law can interpret it in any other way.

    Sorry to be the bearer of this bad news.

    This is easier said than done, but why not find a buyer (the process is actually called “assignment”) who will pay you whatever you have paid and he will assume the balance of your amortization? People who choose this option usually settle for much less than what they have actually paid than lose everything.

  33. If maceda law stated that you can get 50% refund from all the payments that you’ve made for a min. Of 2year paymnet, what if we only pay 1year of the mo. Amort. For a term of 10years because of termination from job we cannot pay anymore. Does it mean that we cant expect any refund at all? Sayang nmn since the unit costs is P3.8M, and we have paid a total amount of almost P1.5M including DP, thats a big amount of money to be put into waste. Wla n po b tlga kming habol for refund?

  34. Since four years ka nang nagbabayad, entitled ka sa 50% refund ng mga naibayad mo under Maceda Law. Under Maceda Law, a buyer is entitled to a 50% refund if he has paid at least 24 monthly installments. Send a letter to the developer requesting for the cancellation of your contract. Include in your letter that you are claiming a 50% refund under Maceda Law. In your letter, copy furnish Atty. Cesar A. Manuel, Director for Legal Services Group of the HLURB. Here’s their address and telephone nunmbers: HLURB Bldg. Kalayaan Ave. cor Mayaman St., Diliman, Quezon City. 927.3061, 920,8749. Hingi ka din ng advice sa kanila. Malamang hindi mo makakausap si Atty Manuel dahil laging busy yun. Magtanong ka na lang sa kahit sinong abogado doon. Mababait mga yun.

    It will also help if you read this.

  35. Marivic ventura says:

    Sir Jun,
    Ask lang po ako, kasi po nakakuha ako ng lupa ng Filinvest sa Gen Trias..nawala po kaming trabaho at hndi na nkapagbayad , ngbigay sila ng letter na open n dw po sa buyer ung property kasi 8 months n kmi hndi nkakabayad… More than 4 years n kong ngbabayad sa kanila befire po kmi mawlang ng trabaho…ngayon po hndi n ko makapagbayad , ano po bng dapat kong gawin ? Meron po bng kami makukuhang refund? Thank you

  36. Ok. Sana maganda ang resulta. Napakaunfair naman kasi na yung pinaghirapan namin na pera sa wala lang mapupunta. Tawagan na lang po namin. Maraming salamat po sir jun.

  37. Ang pinakamalaking issue mo against the developer is kung bakit hindi kayo agad sinabihan na P800k lang ang inapprove ng Pag-ibig. Ang suggestion ko ay tumawag ka sa Legal Services Group ng HLURB at 927-3061 or 920-8749. Magtanong ka sa kahit na sinong abogado doon; nag-eentertain naman sila ng mga tanong kahit sa phone lang. Itanong mo kung entitled ka sa refund based on the issue that you brought up.

  38. Thanks sa response. Hindi po kami pumili ng terms. Eto po yung binigay samin on the day na nagpareserve kami ng unit which we paid 10k. TCP po is 1,429,000.00. 10% dp ang binigay which was 142,900.00 less reservation which was 10,000, so total dp was 132,900.00 (payable in 9mos amounting to 14,766.67). Loanable amount was 90% (1,286,100.00). Meron po kaming pinirmahan na computation sheet and we have the copy. Pero wala kaming contract to sell. This is not with Camella pero the location is in Cavite. Nung bumalik nga po kami ng January, mababa lang daw ang inaaprove ng pag-ibig, so kung ano man ang difference, pinababayaran samin. Magsasabay ang payment ng loan difference and pagibig which hindi kakayanin ng finances namin dahil we just recently got married and still trying to get back on our feet. We decided to cancel the house and asked them for a refund. Wala daw pong refund, which they stated sa option to purchase na pinirmanhan namin, “The Grantor does not guarantee loan approval nor the amount of loan applied for by the Grantee”. Naintindihan naman namin yun, kaso lang po, bakit wala kaming nareceive na notification from them after namin magbayad ng dp about our loan sa pag-ibig? Kasi we finished paying June 2011. Then pinatawag kami sa office nila ng January 2012 that the house was built na daw. Nakapagprepare na rin sana kami. So ibig pong sabihin wala na talagang chance para mabigyan kami ng refund even if hindi sya full refund?

  39. Hello Angelito,

    I’m sure Camella gave you a number of options in terms of percentage of down payment to be paid. It could be 10%, 20% or 30% DP payable in X months, balance to be paid through Pag-ibig financing.

    Lumalabas na 10% more or less DP ang pinili mo, 90% balance through Pag-ibig financing.

    Palagi kong sinasabi sa mga nagtatanong sa akin na huwag silang kukuha ng pinaka-mababang down payment term, sa case mo 10%, dahil under normal circumstances, a bank or even Pag-ibig will only grant a maximum of 80% of the Total Contract Price , sometimes it’s only 70%. Ang totoo, fair pa nga ang Camella dahil pumayag sila na i-spread over a period of time yung kulang mo sa down payment. Kadalasan kasi, balloon payment o biglaang hulog sa kakulangan ang requirement ng maraming developers.

    Kapag nag-apply ka ng housing loan sa banko o sa Pag-ibig, hindi lang naman capacity to pay mo ang tinitingnan nila. Pag-ibig have appraisers who determine the value of a house that is being loaned for. Kung okay naman ang credit rating mo, malamang yung Pag-ibig appraiser decided, na based on the quality of the house, you are only entitled to P800k.

    Ito lang ang pag-asa mo para makakuha ng refund:

    Paano mong nalaman na P1 million ang magiging approved loan mo sa sa Pag-ibig? Assumption mo lang ba ito o may tao sa developer na nagsabi sa iyo nito? Kung tao ng developer ang nagsabi sa iyo na P1 million ang mauutang mo saPag-ibig, may kasulatan ba kayong pinirmahan?

    Kung may misrepresentation on the part of the developer that you will “surely” get a P1 million loan from Pag-ibig, that may be a cause to file a complaint at HLURB.

  40. Sa unang computation po kasi 9mos to pay ang dp and 1M ang sa pagibig. Then 800k lang daw ang naaprove sa pagibig so yung 200k daw po ang loqn difference na we have to pay for 2yrs along with the pagibig amort.

  41. Hindi pwedeng Option to Purchase lang ang hawak mo. Dapat sa umpisa pa lang nang pagbabayad mo ay mayroon na kaagad kayong pinirmahang Contract to Sell na ipapa-notaryo nila. May kopya ka dapat nung notaryadong Contract to Sell at kung meron ka nun sa umpisa pa lang, naka-lock in ka na dapat dun sa original computation nila.

    Ano ang ibig mong sabihing loan difference? How many years to pay ba yung down payment na pinili mo?


  42. Hi sir,

    About po sa townhouse na binili namin sa Cavite ang inquiry namin. Sep 2010 po kami ngreserve then binigyan kami ng computation to ng downpayment for 9mos. The rest po is loanable amt sa pag-ibig. Binayaran namin ng 9mos yung downpayment. Option to purchase lang po ang hawak namin, computation and mga receipt. After namin magbayad, tinawagan namin and sabi ng developer hindi pa daw matatayo yung bahay dahil by cluster daw po. Nakahold daw yung katabi naming cluster. 2012 ng Jan sinabihan kami tapos na yung bahay pero binigyan kami ng bagong computation dahil daw may loan difference. So magsasabay yung pag-ibig and continuation ng downpayment for the next 2yrs. Around 23k per month daw po. Hindi na kaya ng finances namin yung dahil di namin ineexpect dahil akala namin after ng downpmt continue na sa pag-ibig. Nagcancel po kami, wala daw pong refund. 15k ang monthly downpayment namin for 9mos. Walang binigay na contract to sell samin. Posible po ba na wala talaga kaming refund? Kami na ang nagcocontact sa kanila para bigyan kami ng update. Wala kaming nareceive na email or tawag na hindi 1M ang malolian namin sa pag-ibig. -Angelito

  43. Hello Michael,

    Sorry I had to delete the name of the developer and the project. I always try to give anyone the benefit of the doubt whenever I can help it and this is not the proper forum for them to defend themselves.

    Someone had also told to me about this condominium project in Makati. Is this the one that is supposed to be around 20-storeys tall but currently stands at only around 6-storeys tall? If that’s the one, whatever technology they use, it doesn’t take a genius to know that they will not finish it on the promised date.

    Forget Maceda Law as it doesn’t apply to you. It only applies to a residential real estate buyer’s right to a refund resulting from his own financial incapacity to continue paying the succeeding monthly installments for the property he bought.

    PD 957 or the Subdivision and Condominium Buyer’s Protective Decree protects real estate buyers from developers who, among others, fail to deliver their project as promised and on time. These developers are described in PD 957 as fraudulent and manipulative and aggravate the economic, social and moral condition of the Filipino people.

    The easiest way for you get a full refund for everything that you paid for is to check with the HLURB if the project has a License to Sell. In this preceding link, the project is not included in the projects that have been issued Cease and Desist Order by HLURB for not having a Certificate of Registration and License to Sell. But this list is not often updated and the Certificate of Registration and License to Sell can be revoked if HLURB finds due cause. If I were you, I will double check with the HLURB.

    If it currently has no License to Sell, the HLURB says that you can ask for a full refund by filing a complaint in their office. You may check the project’s Certificate of Registration and License to sell at Regional Office of the HLURB which has jurisdiction over the place where the project is located.

    Question: What if the project had no License to Sell when you bought it, but over the months while you were paying for it, it was granted an LTS by the HLURB? Are you still entitled to a full refund?

    Honestly, I do not know. This is something that you will have to find out with the HLURB.

    Whatever happened to their project in Taguig and how that project affected their contractor have nothing to do with the condo project you bought into.

    If I were you I will not wait until December to file a complaint. There is no way on earth or in heaven that they will be able to complete that project on time.

    File for a refund with the developer by invoking Title IV, Section 23 of PD 957:

    Non-Forfeiture of Payment 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.

    But like I always say, consult with the Legal Services Group of the HLURB before making any drastic action. Ask for their advice because at the end of the day, they will be the ones who will decide on this issue. It’s best that you make an appointment with them and file your complaint. LSG is headed by Director Atty Cesar Manuel and her secretary’s name is Nerise. Their numbers are 920.8749, 927.3061. Address: HLURB Bldg. Kalayaan Ave. cor Mayaman St., Diliman, Quezon City.

    Huwag mo nang sabihin sa kanila na ako ang nag-refer sa yo dahil malapit na silang magsawa sa kakatanong ko sa kanila.

    Good luck!

  44. Hi Sir Jun – Good day po! I really like your article about Maceda Law. But I would like to know more about PD 957. Here’s

    my case po, hope that I can hear a feedback from you. More power po at thank you in advance!


    1. Masugid po akong nagbabayad ng monthly amortization ko, and my contract says that the unit will be handed over after

    three years, and that would be this December (2013). Pero sa nakikita ko sa development ng project, imposible syang

    madeliver… even after the next two or three years.

    2. Pumunta ako sa customer care office nila at eto ang sinabi sakin:

    – Inde daw ako pwede magfile ng complaint na inde pa nabibigay sa kin ung unit, kasi nga daw, inde pa due date based sa

    contract… (and I got his point on this one)… and the due date is on December this year. So what I can do, is wait

    until December, and if hindi nabigay ung unit, then that’s the time I can file a complaint.

    – Nung nagtanong na ko kung magbabackout ako… magkano ung refund na makukuha ko… and sabi nya, the developer is

    protected by the Maceda Law, and I will get 50% of what I’ve paid, and ako din ang magbabayad ng mga legal processing for

    that. Now, please correct me po if I’m wrong, in your statement po, Maceda Law will only apply if the buyer already used

    and lived in the house (unit), will this be applicable on my situation? (Ni-hindi ko nga po nakita kahit isang haligi ng

    unit ko)

    – And regarding PD 957 – I don’t know po if this law is applicable based po sa nangyayari ngayon sakin with this developer

    — when I asked the reason behind bakit sobrang delay nung project, eto po yung mga ni-reason out nya:

    1. They said that there was this incident happened in one of their project in Taguig, and right now, ung contractor na

    supposedly na gagawa nung condo kung saan ako bumili eh na-hold dahil sa incident na yun… at ang sabi ko…

    concern pa ba yun ng mga buyer/owner?

    2. Pangalawa, eh they’ve just got the permit from the municipality of Makati to start the project just last year (April,

    2012), from which they’ve started the pre-selling last 2010… so parang ang sinabi ko… nagbebenta kayo ng unit… na

    inde kayo sure kung tutuloy ung project or inde? (and he just told me some politics stuff and everything… but

    eventually… tutuloy pa din daw… alam mo naman dito sa pinas… what?!)


    1. Please let me know po, if Maceda law will be applicable on my situation… if yes, to what extent po?
    2. I’d like to know more about PD 957, what specific faults po (from the developer) ang saklaw ng batas na to, yung

    situation ko po ba eh applicable sa PD 957? Will I get more than 50% refund from PD 957?

    Pasensya po sa mahabang salaysay, hope to hear from you and more power!


  45. Hello Maria,

    Entitled ka sa 50% ng lahat na naihulog mo sa developer.

  46. Sir Jun,
    Eto po ang case ko, nabayaran ko po sa developer ko in cash ang downpayment, then 1 year po akong nag inhouse payment habang hinihintay ko ang approval ng bank para sa bank financing, na approve po ang bank financing ko. Nakapag monthly installment na po ako sa bangko for more than 2 1/2 years. Due to unexpected twist of fate (loss of job) hindi ko na kayang ipagpatuloy pa ang payment. Ang tanong ko po kung entitled ako sa 50% refund under maceda law? Thank you very much po sa help at reply nyo.


  47. Hello Sen,

    Only the sale or financing of residential properties on installment basis are included in the Maceda Law, except sale of residential properties by an owner to a tenant. Also excluded are industrial lots and commercial buildings. Although, the law is silent on agricultural lots, I think it is also excluded in the law.

  48. hi sir jun,

    is RA 6552 applicable to lots classified as industrial lots or agricultural lots bought in monthly installments? i have no problem with respect to residential lots, condos and apartments as these are covered by the law. but i am not sure about industrial lots, or agricultural lots. thanks and more power!


  49. Hello John,

    Kung hindi pa po kayo nakakabayad ng 24 monthly installments, wala po kayong makukuhang refund.

  50. Ako po ay isang OFW kumuha po ako ng House and Lot sa Calamba natapos ko na po yun full downpayment. So ngayon nag apply po ako ng Bank Financing yun developer nagreferal ng bangko mismo at para mairelease na un housing loan para sa monthly amortization lahat ng document papers na requirement na hiningi kumpleto naman pero nireject pa rin ng Bangko. Ang reason daw ay medyo di sila tiwala sa capablity ko magbayad pero kaya ko nman magbayad so ngayon nahirapan ako kumuha ng Bangko.
    Sa ngayon narealize ko ngayon ganito pala kahirap kapag magapply ng housing loan sa bangko. Nun nagpurchase ako sa developer walang hirap agad inaprubahan. Gusto ko lang ishare sa mga katulad ko na bago bumili ay pagisipan ng mabuti.
    Alam mo naman Sir Jun dahil sa pagmamadali makakuha ng bahay di ko naisip nito nun umpisa pa lang.
    So tanong ko po wala ba talaga chance mabawi yun full downpayment ko less than 400,000 pesos?

  51. Hi Sir Jun,
    Good morning.
    Thanks po ulit sa advised atleast po maliwanag na skin lhat.salamat sa mga payo mo mrami ka pa pong matulungan alam kong mdami na din ang po ang pangit sa batas ntin mas pabor sa developer. di po kya ang may akda ng batas eh isa sa mga real estate owner. joke. tma po kau sir kc baon ka na nga lalo ka pang binabaon.

  52. Kapag ang binili mong bahay at lupa, condo or townhouse ay hindi hihigit sa P3,199,200 ang list price, exempted ka sa VAT. Kung mas mababa sa nasabing presyo ang nakuha mong unit pero pinatawan ka pa rin ng developer ng VAT, hindi na legal yun.

    Sampahan mo ng kaso sa HLURB.

  53. Hi Sir Jun,

    Good evening.
    Yun nga po sir total contract prize po nsa contrata ko. nakalagay din po sa contract di po list prize.medyo naguluhan po ako kc exlusive po yung VAT na nkalagay sa contrak.di po kc denitalye lhat kung ilang porsyento yung charges.nagtataka lng po ako kc lmabas yung hidden charges pagkatapos ko hinulog yung downpayment ko.ayaw ko nmn po makipagdebate sa knila bsta kung may legal po nmn na basehan dun nmn tayo magsampa ng kaso. nagtataka lng po ako sa 250K eh yung VAT ko umabot ng 40K.nagtanung tanung na din po ako sa mga kumuha ng bahay po dun kung pareho po ang nging sistema ng pagpapatupad.kung hindi po pwede po ba ako lumapit sa legal?thank you so much.

  54. Hello Toto,

    Kapag sinabing Total Contract Price, kasama na doon lahat ng babayaran ng buyer. Baka ibig mong sabihin ay List Price, ito yung price ng bahay at lupa, condo, o townhouse.

    Pag developer, hindi capital gains tax ang applicable tax dyan. As far as I know it’s Corporate Income Tax at hindi ikaw ang dapat magbayad nun, sila dapat. Sa List Price dinadagdag ang mga taxes and fees para mailipat sa iyo ang title ng property – Documentary Stamp Tax, Registration Fee, Transfer Tax plus other notarial expenses. Dinadagdag din ang water and Meralco installation deposit. Kadalasang tawag ng mga developers sa mga additional taxes and fees na yan ay “Other Charges” or “Miscellaneous Fees” na nasa around 5% of the List Price. Kung ang property na binili mo ay house and lot, condo or townhouse ay may List Price na mas mababa sa P3,199,200, exempted ka sa pagbabayad ng VAT.

  55. Hi Sir Jun,

    Good morning.

    Ask ko lang din po yung documentary tax po ba e kadalasan nahihiwalay sa total contract price?sa dveloper ko po kc bale yung total contract prize po 970K ang na appraise po ng pag ibig nsa 750K ang advised po ng developer 500K lng dw po ang i shoulder nla yung sobra po na 250K ako na rw po ang magshoulder ng capital gain,documentary tax at kung anu anu pa po dinagdag. so nung pinakita skin ang total umabot po ng 40tawsan ang babayaran ko po. di po malinaw ang kontrata kung ilang porsyento bsta exclusive VAT lng po ang total contract prize.maraming salamat po.

  56. Hello Diomer (iba-iba ginagamit mong pangalan ha, he he

    Nagtataka naman ako sayo. Sa lahat ng bumili ng bahay, ikaw lang ang alam kong basta nagbayad ng down payment na hindi inaalam ang kabuuang halaga ng bahay.

    Dalawa ang pinaka-importanteng bagay ang magbibigay ng indication kung magkano ang loan amount na makukuha mo sa Pag-big

    1. Kung magkano ang monthly contribution mo. Mas malaki ang monthly contribution mo, mas malaking loan ang makukuha mo sa Pag-ibig. Halimbawang naghuhulog ka lang ng minimum monthly contribution na P200, P500,000 lang ang pinakamalaki mong makukuhang loan. Kung ikaw naman ay nagbabayad ng P1,450 per month, pwede kang maka-utang ng mula P2.9 million to P3 million.

    2. Capacity to pay, dapat ay hindi lalagpas ang monthly amortization (on principal and interest) mo sa 40% ng iyong net disposable income. Ang net disposable income mo ay, sabihin nating isa kang empleyado, ang natitira sa sweldo mo matapos kaltasan ng mga taxes, SSS, Pag-ibig, Philhealth at iba pang deductibles. Habang lumiliit ang porsiyento ng net disposable income mo bilang monthly amortization mo, tumataas ang posibilidad na lumaki ang loan amount na makukuha mo sa Pag-ibig

    Para mas lalo kang malinawan, basahin mo ito: How Your Income And Contributions Affect Your Housing Loan Entitlement.

  57. Hi Sir Jun,

    Good afternoon.

    ang problema ko po ung knuha kong bahay gawa na po cya nung hulugan ko ng down.ang problema ko po kc nkalimutan kung itanong ung equity at reservation bsta ang sabi ng kapitbahay kong naglakad sakin sa developer maghulog lang daw ako ng 100tawsan kc isa nlng dw po natira na bahay. yung na process na po ang title at iba pang papel tsaka po ako tnawagan at pinapunta ng developer ko sa pag ibig pra i process po ang application ko.nung tumawag po ang pag ibig bali kulang po ng appraisal ng bahay 980tawsan ang kabuuang halaga ng bahay pero ang naaprraise po 750tawsan lang po.madaling salita kulang pa po ako ng mahigit 100tawsan. normal lang po na na aabot ang bayaran ko ng mahigit 200 tawsan sa gnun kaliit na hlaga ng bahay?42square meter po ang sukat ng bahay townhouse po. ang sabi nmn po skin ng developer kung may maidagdag pa rw po ako. kung sakaling kapos ang appraise di na rw po ako mamoroblema. ang advise ko po antayin ko po ang appraise ng pag ibig. sa aking palagay po bkit gnun po wlang sinabi kung magkanu tlga ang halaga. bakit sa iba po match lang po tlga dun sa appraisal ng pag ibig ang kabuuang hulog ksama ang equity. salamat po sir.

  58. Hello again Toto,

    Honestly, hindi ko kabisado ang sistema ng Pag-ibig. Pero normally, yung mga taxes na related sa pagta-transfer ng title sa pangalan mo (kagaya ng Documentary Stamp Tax, Transfer Tax at Registration Fee) ay nakapaloob na sa Total Contract Price as “Other Charges” or Miscellaneous Fees.”

  59. Hello Toto,

    Ngayon lang ako nakarinig ng developer na hindi nagiis-specify kung magkano Reservation Fee at down payment. Mahirap yan, huwag kang pumatol sa developer na yan.

  60. Hi Sir Jun,

    Ask ko din po kelan po babayaran po ang pagtransfer ng title sa borrower?kasi ang advise po sakin may babayaran raw po ako na 30tawsan sa pagtransfer ng title sa pangalan ko. sakali po na may sasalo po ng housing agad ba babayaran agd yung pagtransfer ng title sa pangalan o pagkatapos pa ng mabayan ang halaga ng bahay sa pag ibig

  61. Hi Sir Jun,

    Good evening.
    Meron po akong tanong meron po bang developer na wla pong sinabi kung magknu equity at reservation bsta dagdagan lng ang pera na hulog bsta kung magkanu appraise ng pag ibig pagkulang tsaka byaran sa developer pag sumubra nmn tska i refund nmn sau. bkit po ganun wlang mailatag na minimum at maximum na hulog. bakit yung ibang developer merong fix na equity at reservation. pagdating ng appraisal ng pag ibig match lng dun sa hulog ng borrower. kasi po mukhang hokus pokus ang nangyari di kana pwede umatras pag nakabayad kna obligado kang ituloy mo kahit sobrang laki ang kulang. di ba dpat di magkalayo ang assessment ng pag ibig dun sa total contract prize ng bahay at lupa. thank you po.

  62. Hello Jayson,

    Wala kang makukuhang refund. Although mabigat nga yung magbabayad ka ng P20 thousand a month for six months kasabay pa ng monthly amortization mo sa Pag-ibig. Pero kung ako sa yo gawan mo na lang ng paraan kesa ma-forfeit yung naibayad mong P100 thousand. Pilitin mo pang makahingi ng extension sa developer. Kung magiging 1 year to pay yung extension palagay ko ay hindi na ganun kabigat sa yo. Subukan mo lang.

  63. Hello Toto,

    By “intact” palagay ko ang ibig mong sabihin ay mga developers na accredited sa Pag-ibig. Pag hindi accredited ng Pag-ibig yung developer na kung saan mo gustong bumili ng property, ay hindi ka talagang pwedeng mag-avail ng Pag-ibig financing; wala kang choice kundi mag-bank financing.

    Ikaw man o yung taga developer ang naglakad ng application mo sa Pag-ibig, pareho lang ang appraisal nyan. Wala akong alam na kaso ng palakasan sa Pag-ibig basta kumpleto mga requirements mo at syiempre kung qualified ka.

  64. Sir Jun,

    Good evening.
    May mga developer po b na di intact sa pag ibig kc po karamihan cla na po ang naglalakad ng document sa pag ibig sa case ko po kc ako na po ang nag apply ng housing loan sa pag ibig.di po kaya mababa ang appraisal ng bahay dahil wlang konecta sa pag ibig ang developer. posible po ba na may palakasan system. tska may mga developer na mismong nag oopisina mismo sa kanilang site. kya madali po ma process at maibigay sa borrower ang bahay.

  65. SIr Jun,
    May tanong po ako regarding sa developer ko first time ko po kc mag aplay nagbayad na po ako ng equity ksama downpayment bale buo po 100tawsan biglang bnayad ko dun.ang problema ko po ako mismo ang laglakad sa pag ibig ng housing loan nung naaprobahan po 750tawsan ang kabuuang halaga ng bahay ay nasa 974,000 po. ang naging mabigat sakin ay i shoulder ko p po ung kulang na mahigit 120tawsan wla nmn po akong cash pra mapunuan agad. nakipag usap po ako sa developer ko kung pwede back out nlng po ako sa dahilang wla akong pang cash sa kulang. sa halip bawiin ko nlng hinulog ko. ang advised po ng manager bale pagbigyan po ako ng 6 month pra mabayaran ang kulang ko. ang problema ko ngaun magdoble na po byaran ko dahil po pagnapirmahan ko ang contrata sa pag ibig magstart na po ang amortization. anu po gagawin ko magkanu nmn ma refund ko sakaling aayaw ako. willing nmn po akong ituloy kung di po nla ako pwersahing bayaran withiin six month. Thank you po.

  66. Hello Michelle,

    Yes, you have a strong case against the developer. What they did is a clear violation of PD 957 or the Subdivision and Condominium Buyer’s Protective Decree that protects real estate buyers from the fraudulent and manipulative practices of developers. Such practices include: “…sale of the same subdivision (house and) lot to different innocent purchasers for value.”

    File a complaint at the HLURB office nearest you.

  67. michelle lim says:

    Dear Sir Jun,

    Hi my name is Michelle and is it a ground for a complain or legal case if the developer reopened and sold my house with out notifying me or sending me notice of cancellation. I recently found out that someone is occupying the property I bought at Calamba and was told that there is already a 2nd owner. Please help.

    Thank you,

    Michelle Lim

  68. Hello Roxan,

    Before deciding to buy the condo, did you make sure that Eton Properties is an accredited developer of Pag-ibig? Here’s the list of developers accredited by Pag-ibig. Although, I do not see Eton in the list, it doesn’t mean that it is not accredited as the list may not be updated. If Eton is accredited, here are the documents that you need to secure from Eton to secure a housing loan from Pag-ibig.

    -Certified true copy of the present TCT and CCT
    – Photocopy of updated Tax Declaration and Updated real estate tax receipt
    – Location Plan and Vicinity Map
    – Copy of the Contract to Sell or similar agreement between the buyer and the seller plus (if seller is a Developer) Certificate of Registration, License to Sell, Development Permit, Secretary’s Certificate, Photocopy of back to back valid primary ID of the Corporate Secretary.

    I highlighted the Certification of Registration, License to Sell and Development Permit because they are the most important requirements that a developer should have in order to build and sell a project per PD 957 or the Subdivision and Condominium Buyer’s Protective Decree.

    If the developer lacks these requirements, it is subject to a cease and desist order from the Housing and Land Use Regulatory Board, i.e. they cannot build and they cannot sell.

    Here’s a list of Projects that have been issued Cease and Desist order by the HLURB (again, this list may not be updated).

    If the condo project you bought into is above board and Eton is accredited with Pag-ibig, then you should not have a difficult time requesting for said documents. If they refuse to provide you said documents especially the three that I highlighted, it’s probably because they don’t have them.

    Report them to the Legal Affairs Group of HLURB to find out for sure and seek redress from them. Here’s their address and numbers: HLURB Bldg., Kalayaan Ave., Diliman, Quezon City, Tel Nos 920 8749, 927 3061.

    Good luck!

  69. Hello Sir June,

    I bought a pre-selling condo back in 2010 with Eton Properties in Quezon City. Before buying the said property, I made sure that the property can be financed via Pag-Ibig Housing. The broker who has been assisting me had guaranteed this and even provided estimate computations so I’ll have a good idea how much I would be paying monthly.

    After completing paying the downpayment for 2 years (via PDCs), I started asking for the documents required in processing the Pag-Ibig Housing Loan from my broker and their Customer Service hotline. This is the only time I knew that my broker has provided me wrong information and they will not provide me any of the documents I need. Instead, I’ll be obliged to proceed with either Bank or In-house Financing with higher rates and shorter terms compared to the Pag-Ibig estimates. I decided not to pursue the investment because I cannot commit on paying such higher rates (almost double), specially now that I already have a family with 2 kids.

    I contacted their customer service for a refund request but they said all my payments will be forfeited. This was my first purchased property and caused the greatest regret in my life. Sir, can you please give me an advise on how can I possibly get my money back? I’ve been reading your posts on Maceda Law, am I left with filling a formal legal complaint so Eton Properties will comply?

    Any opinion or advise will be greatly appreciated.
    Thank you!

  70. Hello Ysiad,

    I’m sorry for this very late reply.

    That’s the problem with the real estate industry here in the Philippines. There is only one law that protects property buyers who become financially distressed, the Maceda Law, and it doesn’t apply to everyone.

    There’s this general impression that buyers who eventually go broke and cannot continue paying for the property they bought did not make proper financial planning and preparation before they took the plunge. Sometimes this is true. Because many are blinded by their desire to own their home, they fail to save for medical purposes, emergency fund and other unforeseen eventualities. But just the same, I believe that people like you should be given at least a moratorium so you could be given the chance to stand back up again. No company has the right to profit from the misery of anyone.

    But with the way things are, I don’t think there is any remedy for you to get a refund except perhaps to plead with the developer. Don’t talk to the agent, talk to the department head that is responsible for such matters. Appeal to his compassion and swallow your pride. That’s what I will do if I’m in your position. There’s no harm in trying.

  71. Hello Ariel Penarroyo,

    I’m sorry for this late reply. Kasama lahat ng ibinayad mo – reservation fee (also called option money), down payment and monthly amortization.

  72. hi good day po!
    we just paid our 20% downpayment for a house and lot. Apparently my husband lost his job and we fail to provide a requirement for the bank to release the bank loan. For this instance we choose to pay the house via in-house financing but the company said we are not eligible for paying the house thru them. and since my husband lost the job there is no chance for us to make another bank loan application.
    Need help on this concern sir because it seems like this situation doesnt fit in MACEDA LAW. since we are having business with the developer in less than a year. thank you!!!

  73. ariel penarroyo says:

    Hi Sir June, sa Maceda law po ba kasama ang down payment sa minimum na 2 years para maka refund ng 50%, o mag start na po sa monthly ammortization. Thank you po.

  74. Karl,

    Will email you per your request.

  75. You are welcome Rachel

  76. Karl Salvino says:

    Sir Jun,

    Ang problem po namin sa developer namen ay ung delivery ng unit. We purchase a townhouse, according sa sa mga documents namen 450 days construction period. (15 months) Nag start kami ng equity April 2012 at matatapos kami ng June 2013 plus 3 months na pahinga tapos move in na. Ang problema: 1. nakakarinig kami ng problema sa mga nakamove in doon (like tumatagas na tubig from second floor etc.) 2. since two months nalng matatapos na kami ng down payment, ng follow up na kami sa office. nalaman laman namen na ZERO percent parin ang construction. 3. Nakisuyo kami sa mga kilala namen na kalipat na sa Subdivision na un na tingnan ung progress ng Contruction sa Phase namen. Ang sabi nila: A. hindi pa na layout ung pundasyon ng bahay. B. puro talahib pa daw yung lote. 4. Umamin ung agent namen na hindi pa talaga nasimulan dahil nag ka problema ang Developer at construction manpower (Contractor) 5. Napanood namen ung video article ng IMBESTIGADOR at parang nahinaan kami ng loob dahil pinakita dun ung sitwasyon ng mga bahay na nagawa na at kalagayan ng mga nakalipat na.

    Sa mga gantong sirkumstanya pwede pa ba kaming mag back out. At kung Mag back out kami malakas ba ang laban ng mga nabanggit ko para sa grounds ng refund?

    Please email me your opinion regarding this inquiry. We need a opinion regrading this matter.

  77. Rachel M. Sacro says:

    Kuya Jun,

    marami pong salamat sa inyong oras. so much appreciated ko po tlga ito. At prang ok po din un last advice nyo po. nalulungkot lang po ako, kasi di nila binigay sa kin yon as one option. haizz…. thank you lord, thank you kuya jun.

  78. Hello Rachel,

    Hindi naman double penalty yun, ganun talaga ang patakaran. Nung mga buwan na hindi ka nakapagbayad ng monthly amortization, unang buwan pa lang ay pinatawan ka na ng interest dun. Itong interest na ito ay magkakapatong-patong hanggang hindi mo nababayaran ang mga interest nito at mga principal.

    Nung nag-resume kang magbayad ng amortization, hindi nila ia-apply iyon sa current month kung kelan ka nagbayad ulit, ia-apply nila yun sa mga interest (at kung may natira pa) sa principal nung mga buwang hindi ka nakapagbayad. Magiging current ka lang pag nabayaran mo na lahat ng interest at principal nung mga buwan na hindi ka nakabayad.

    Tungkol dun sa hinihingi sa iyong P37k para i-reconstruct or restructure yung account mo, walang batas na nagbabawal sa mga developers na gumawa nyan; it’s a matter of company policy. Kahit mga credit card companies ginagawa yan.

    Kesa magpa-restructure, bakit hindi mo muna tanungin yung developer kung magkano ang total penalties and arrears na dapat mong bayaran para maging current yung account mo. Kung makakatipid ka dito, iyon na lang ang gawin mo.

  79. Rachel M. Sacro says:

    Sir Jun,

    Ask ko po sana, kung legal po ung double penalty? nagkaroon po kc ko ng lang buwan mispayment, sa monthly amortization ko. Ang policy po pala nila ‘running penalty’. meaning ng accumulate pa rin un penalty hanggat di mo nbyran un lang buwan mong missed kahit na ngcontinue kna ng byad. So ang ngyari, ung hinuhulog ko sa monthly, napunta lang sa interest. kya prang lumbas na ilang buwan akong alang byad.nun settle ko na,pra mlamn ko kung pano nila ko na reconstruct na lang daw. i-add na lang nila sa principal ko un lhat ng kakulangan ko pa. tas hinihingan pa nila ko ng 37k as penalty kc ng reconstruct daw sila. legal po b un? sana po mapaliwnagan nyo po ako. salamat po at magandang hapon

  80. sir june yun nga din po isa ko pang naging problema,hinde na po employee ng smdc yung ahente na kinunan ko kung hinde pa po ako muli nagtanung sa knya at humingi ng tulong hinde ko pa po malalaman.

    thank you po

  81. Hello Rheza,

    Gusto ko lang linawin na ang hindi mo pagkakaroon ng Contract to Sell at mga original receipt ay hindi maaaring gawing basehan para ipa-cancel mo ang contract mo at humingi ng refund. Kung hindi nila ito kusang maipadala, dapat ay utusan mo yung ahente na nagbenta sa iyo na kunin ang mga ito, trabaho nya yun.

    Paki basa mo ito (Maceda Law or RA 6552) para malaman mo ang dahilan kung bakit sinabi ng SMDC na di ka qualified sa refund.

  82. Sir June,

    Regarding po sa case ng request po ako na i cancel yung 2 condo unit na kinuha from SMDC almost 2 years na po akong nag huhulog every month pero wala pa rin akong contract to sell and even just once po hinde ako na ka recieved ng original reciept mula sa kanila,ng decide po akong i cancel na at gusto ko na lang po ma refund yung mga nahulog ko,nito lang po pinadalan po ako ng email ng smdc na wala daw po akong marerefund..Hinde naman po ata makatarungan yun sa mga kagaya naming ofw na nagpapakahirap dito sa ibang bansa.
    Sana mabigyan nyu po ako ng advise kung ano dapat gawin.

    Maraming Salamat Po

  83. Hello Jennifer,

    If you read carefully the Maceda Law, the buyer is entitled to the full 50% refund if he cancels his contract after paying a minimum of 2 years of installment. “Down payments, deposits or options (reservation fee) on the contract shall be included in the computation of the total number of installment payments made.”

    Section 7 of the law says that “Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall be null and void.”

    This means that if Maceda Law should be strictly followed, the buyer is entitle to a full 50% refund and whatever deductions or liquidated damages shall be incurred should be for the account of the developer.

    The problem with Maceda Law is it’s not strictly followed by developers and many get away with it to the detriment of distressed buyer. That’s why I am advocating that HLURB or any lawmaker come up with a resolution to strictly implement Section 7 of the Maceda Law.

    As it is, the HLURB hasn’t come up with a clear guideline on the 50% refund. The matter of how much of it should be actually refunded has been left to the discretion of developers.

    Until such time that the HLURB comes up with a strict implementation of Section 7, distressed buyers shall be at the mercy of the developers.

    I’m sorry to tell you this, but it’s the way things are right now.

  84. Jennifer says:

    Hi Sir June,
    I am one of those condo buyers who, unfortunately, now cannot make monthly payment amortisation. I have asked for a refund of what I paid and is expecting 50% refund as I have paid more than 2 years to it. When I asked for computation if refund, I was told that 50% is the gross refund to be given but the NET REFUND will amount to only 25%. In their computation, they have deducted almost 50% of the total refund on commissions plus the reservation fee which I already paid at the start. Are they even allowed to take that much commission from the refund amount? Are they even allowed to deduct anything from my refund? Thank you

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