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Developer Delay: What are we eligible to claim?

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Arresto Menor
We bought a unit through a developer. We chose the 20% downpayment spread-out in 12 months payment, 80% bank financing and we were told that delivery of our unit would be (12 months + 3 months grace period). Our unit was supposed to be turned over October 2010 but until today, we still haven't received it. (It is now a total of 22 months)

The reasons they stated were:

1. That they THOUGHT we availed of the 15 months extended payment which we were never offered in the first place.

2. They declared FORCE MAJEURE due to lack of equiptment which as far as we know, there hasn't been any shortage in the Philippines the past year.

We have also encountered several problems with them such as:

1. They processed all our documents for bank financing too late resulting to our application being only partly approved so we had to pay the loan difference of 700+K which they rushed us into paying (we paid it on our 13th month of equity) when instead it could have earned interest in time deposit.

2. Since we thought we would be moving in by January (giving us enough time to renovate the unit) we supposedly ended our contract in the house we are renting until December, but bcos of their delay we had to extend our rent when we could have saved on that.

3. We made a simple request of having one partition of the house removed even before it was constructed which they declined stating the bank does not approve but we contacted the bank and they said they approved it. So, it would mean we would have to have it removed, thus additional expense.

4. No one communicated with us properly. We were transferred from one dept to another and they would take days or even weeks to respond to us.

Could we be eligible to demand the following:

1. To claim for whatever interest the 700K could have earned at the bank in interest if we hadn't removed it from time deposit?

2. The money that we had been paying in rent due to their delay?

3. For our request (wall partition) to be granted?

4. Other damages such as: emotional damages it has brought upon us, fees for lawyers etc.?

If so, what process do we go about?

Thank you for your help.

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Failure to develop the Subject Property is a ground for reimbursement as there is a violation of warranty. I find it preposterous that lack of equipment is considered by them as force majeure.

I suggest you write a formal complaint and demand to them. If not granted, you can file a case against the developer with the Housing and Land Use Regulatory Board (HLURB) which has exclusive jurisdiction over this case.

Atty. Lawddesign

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would you believe that some developers have factored in costs of litigation and penalties to delay the construction until there are enough buyers? i've had a case which had an outrageous 8 month grace period and still the developer failed to deliver on time, and it was shoddy when it did.

how soon does it look now that your unit will be ready? keep the pressure up so they will focus on your unit. start sending demand letters.

if you really wish to move forward with this, it is correct that the proper remedy is to file a complaint at the hlurb. i still recommend accepting the unit, and try to do it without waiving your right to damages for the delay.

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