Check the Necessary Documents

It is prudent to check on the documents of the land title, especially for small time developers who are not required by law to be registered with the HLURB. In some cases, purchasers are never provided with a clear and clean title to the land where the unit is established, even after all the financial obligations have been settled. This little oversight has swindled many buyers out of real estate that legally should be theirs. Even the government agency could not possibly protect us from scheming developers.

Under the law, the developers are required only to submit a diagrammatic floor plan of the building in sufficient detail to identify each unit in relative location and approximate dimensions as part of the requirement to get a license to sale. Nothing is said of the specifications for the building especially the finishes to be used. The buyers are at the mercy of the developers as to what materials they will use. The developers can always change the specification without the knowledge of the buyers and therefore shortchange the buyers.

The diagrammatical floor plan is not enough unless dimensions are shown as part of the promotion. A fair promotional tool should also include the elevation views from four sides with their dimensions so that buyers have ample information about the home. This is one way of protecting unsuspecting buyers from alterations. Wall and ceiling finishes should also be noted in the brochures. In fact, the approved specifications should form part of the promotional tools given to prospective buyers.

To protect buyers, the developers should be required by law to furnish them the salient features of the plans and specifications for the unit in their promotion instead of just the diagrammatic floor plan. Verbal promises should not be allowed but must be reduced in writing and become part of the contract of sale.

Prospective buyers should be allowed to look over the complete plans and specifications and whatever documents the buyers will have to sign now and in the future. Other documents bearing the restrictions and conditions of sale must also be made available. These documents must be made available whenever and wherever the promotion is taking place.
Some developers will deliberately abandon a project and instead of refunding the money will force the investors to choose from their other projects that they have difficulties selling or exchange for lots at inflated price.

<< Back

1. Pre-selling Scams in Philippine Real Estate
2. Scams with Condominium Developments
3. Check the Necessary Documents

Home Page

Articles
  Explore "Exotic Cebu
   Real Estate Basics
  Discrete Realty Cases

Find Properties
  Featured Properties
  Setup Buyer Profile
  More Properties

Legal Fundamentals
  Philippines Civil Code
  Legal Foundations

Helpful Supplements
  Documentation Guides
  Conversion Tables
  Government Documents

Featured Development
Developer’s updates, features, offers, expansions, development updates, new projects and more.

Current Events
Latest real estate updates all over Cebu and Philippines & more.

List your Property
Sale, rent or lease your property online for FREE & more.