22/07/2026
๐ก๐ข. Buyers cannot recover all the money they spent on unit improvements if the developer fails to complete the property project.
In the case of ๐ฃ๐๐๐ก๐ ๐ ๐ฃ๐ฅ๐ข๐ฃ๐๐ฅ๐ง๐ฌ ๐๐ข๐๐๐๐ก๐๐ฆ ๐๐ข๐ฅ๐ฃ. ๐. ๐ฅ๐๐ฉ๐๐ฅ๐, ๐.๐ฅ. ๐ก๐ข. ๐ฎ๐ฒ๐ญ๐ด๐ณ๐ณ, ๐๐จ๐๐ฌ ๐ญ๐ฒ, ๐ฎ๐ฌ๐ฎ๐ฑ), the Supreme Court held that if a developer fails to complete a property project, the buyer is ๐ก๐ข๐ง ๐๐ก๐ง๐๐ง๐๐๐ to a refund of the expenses for unit improvements. What the law allows is only the ๐ฅ๐๐๐ ๐๐จ๐ฅ๐ฆ๐๐ ๐๐ก๐ง ๐ข๐ ๐๐ ๐ข๐ฅ๐ง๐๐ญ๐๐ง๐๐ข๐ก payments or amounts originally paid toward the purchase price of the property.
The Court clarified that under ๐ฆ๐๐๐ง๐๐ข๐ก ๐ฎ๐ฐ ๐ข๐ ๐ฃ.๐ ๐ต๐ฑ๐ณ (Subdivision and Condominium Buyersโ Protection Decree), the right to a refund does not extend to all amounts spent by the buyer, but is limited to payments remitted for the property itself. Thus, costs such as move-in fees and improvements are excluded, as they are not covered under Section 23.
Still, in ordering the developer to return the amortization payments, the Court cited Section 20 of P.D. 957, which requires developers to complete the facilities and infrastructure they advertise within one year from the issuance of the project license.
