Developers given extension to complete projects

    1809

    Subdivision and condominium developers are given a maximum of one-year extension to complete their projects in the light of delays caused by the new coronavirus disease 2019 pandemic.

    In Department Order 2020-010 issued Aug. 26, 2020, Secretary Eduardo del Rosario of the Department of Human Settlements and Urban Development, said subdivisions, including residential, commercial, farmlot and industrial subdivisions; condominiums, including residential and commercial condominiums; and other similar projects, including cemeteries, memorial parks and columbaria are granted a maximum of one-year additional period for completion.

    The extension is reckoned from the end of the time of completion of the project as indicated in the license to sell. The grant also applies to the construction and completion of condominium units separately stipulated and agreed upon between the buyers and owners or developers in the contract to sell or any other similar documents.

    The order said any owner or developer may apply for additional time of completion with the DHUD regional office within two months after the effectivity of the rules.

    The owner or developer will be required to submit a revised work program based on the extended period of completion as well as an adequate performance bond.

    It will also notify all affected buyers of the availment of the extension .

    The AO guarantees the protection of buyers provided by Presidential Decree (PD) No 957 if there is material delay in the project’s completion or delivery of the purchased housing or condominium unit due to the fault of the owner or developer.

    Section 23 of the PD on non-forfeiture of payments provides 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.