They say that ignorance of the law excuses no one. Load of hogwash, really. If only laws were easy to know, understand, and interpret, we wouldn’t have to deal with lawyers, right?
Anyway, if you want to be middle class and own property, you should at least be familiar with some essential real estate law that concern us as homeowners. It pays to know what you can and can’t do legally with your property and what your rights are.
1 – PD 957: Regulation of Sale of Subdivision Lots and Condominiums
PD 957 aims to protect buyers of properties in subdivision and condominiums. It compels real estate developers to follow key requirements and standards, including submitting detailed plans, securing permits, and providing essential infrastructure. It also protects buyers by requiring developers to disclose all relevant information concerning properties and terms of sale. It also provides for penalties against erring developers.
2 – RA 386: Civil Code of the Philippines
RA 386 is a broad law that covers civil and family relations in the Philippines. What is important for homeowners are the sections concerning property ownership and transfer and the rules for entering contracts. The provisions are essential when buying, selling, or transferring property.
3 – RA 4726: Condominium Act
Condominiums have now become quite popular in urban areas. If you’re looking to have a home in the metro these days, it seems that condominiums are your best compromise for accessibility and availability. Land is quite expensive and rare these days. RA 4726 regulates the development, sale, and ownership of condominiums. It also includes guidelines for the management of condominium projects.
4 – RA 6552: Protection to Buyers of Real Estate on Installment (Maceda Law)
Under RA 6552, a buyer of real estate properties on installment payments get certain rights. If a buyer fails to pay an installment payment on its due date, he or she will still have a period of 60 days to pay it without penalty. If a buyer has paid at least two years of installment payments, he or she is entitled to a refund of the total payments made, including the interest payments, in case the buyer is unable to continue paying the property due to valid reasons, such as financial difficulties or illness. The law only applies to those buying directly from developers and doesn’t apply to those under other financing schemes like bank financing.
5 – RA 9904: Magna Carta for Homeowners and Homeowners’ Associations
RA 9904 provides for a Magna Carta for Homeowners and Homeowners’ Associations (HOAs). It outlines the rights of homeowners and guidelines for the establishment and operations of homeowners’ associations. It has provisions concerning the authority of HOAs and its responsibilities to its members, particularly in terms of transparency and accountability.
Bonus: RA 7279: Urban Development and Housing Act
RA 7279 provides for a comprehensive housing program in the country. It established the Housing and Land Use Regulatory Board (HLURB), the function of which is now under the Department of Human Settlements and Urban Development.
Why It’s Important to Know the Laws
Feel free to read up on the laws especially the provisions that may concern you, depending where you are in your ownership journey.
For example, if you’re looking into buying a subdivision lot or home, knowing what real estate developers should be including in their developments. It’s of good practice to document whatever the developer’s sales agents are promising. PD 957 can be used to go after developers that fail to meet their end of contracts. Like when they abandon developments or fail to build and provide the promised amenities and infrastructure.
If you’re having issues with the management of the subdivision, you can use RA 9904 to compel your HOA to fulfill its responsibilities and mandate.
Our laws and justice system may be faulty. But, knowing that you have rights and protections does allay some potential fears you might have concerning property ownership.