Can a real estate developer forfeit buyer’s payments?

It is really painful to hear from our fellow Filipinos that their hard earned money can easily be forfeited by some of the real estate developers without proper guidance on their part. Agents and brokers do not even discuss this with the buyers during the presentation and signing of the reservation agreement.

As per your reservation agreement, reservation fee is non-refundable if you wish not to continue with the payment. Most of the reservation agreements further provide that your payment will be forfeited if you delay in payment, thus your purchase of the property will be canceled.

However, real estate developer cannot forfeit your equity payment or what we called instalment of your down payments for two main grounds: (a) developer did not develop or construct the property as prescribed and approved by the government (Housing and Land Use Regulatory Board –HLURB), (b)developer  did not deliver the property to the owner on the time specified  in the License to Sell (LTS)  issued by the HLURB (government agency).

Furthermore, the buyer must notify or inform the real estate owner or developer, not just to the agent or broker of his or her interest to suspend payment or his/her interest to refund due to the non-compliance of the approved specification and non-delivery of the property on the specified timeline.

Written and curated by: Exequiel Mondejar, REB, BSC, MBA, LLB/JD. Source:

Mondex Professionals signed with Antel as inhouse international marketing arm

On August 27, 2014, Mondex has signed a marketing agreement with a reputable, 28-year old developer promoting its grandest, exclusive village located at near Mall of Asia and NAIA airports. The high-end community will be benefited by the booming real estate development in the Manila Bay and Cavitex road.

Contract Signing House and Lot near MOA

In this photo: Antel President Fely Ong, Antel VP Kyle Lao and other Antel officers with the officers and managers of Mondex Professionals. Mondex Professionals is a group of licensed real estate brokers and international sellers.

According to OWWA, the high volume of remittances entering the country is coming from the Middle East like Dubai, Saudi Arabia, and Qatar mainly due to the influx of money remittances of real estate investment such as purchases of condominium units, houses and lots, and commercial properties. The top developers in the country have been tapping the international market over the past 10 years. In order to join the bandwagon and in line with Antel’s current marketing focus, Antel has also appointed Mondex Professionals group of international sellers to promote the existing and upcoming projects of the company. The group of international sellers will tap their international networks mostly in the Middle East where most of the Filipino professionals are working. In this coming last quarter of the year, Mondex group will be introducing Antel’s exclusive and grandest village in the Middle East.

Antel is one only of the newest projects of Mondex. Mondex has been promoting other properties developed by other reputable real estate developers in the country abroad. Worth to mention is the project being developed by Wee Community Developers Inc., – the Centro Residences and Centro Tower in Cubao, Quezon City.

Interested to be part of the team in the Middle East or other countries? Please email or call +63-917-5MONDEX/ (02) 831-3139 or visit

3 Basic Rights of a Buyer in the Purchase of a Condominium or Subdivision Units

Right to be assisted by a licensed real estate professionals

  • RA 9646. SEC. 29. Prohibition Against the Unauthorized Practice of Real Estate Service. No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in R.A. No. 9646 and the IRR is a holder of a valid certificate of registration and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission; and, in the case of real estate brokers and private appraisers, they have paid the required bond as provided for in R.A. No. 9646.”

The Philippine Regulatory Board has issued professional license identification cards for all brokers. If you are researching via the internet, you may get the name, date of birth and license number and verify it at PRC website. The link is The search may be done on the name or the license number of the professional. It is recommended that you will be assisted by a registered professional to avoid future problems. Moreover, the law requires that real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.


Right to demand a receipt and get a copy of any contract

In every transaction particularly involving a real estate, the buyer is advised to ask for the official receipts of any payments made. The official receipt is the best evidence of the transaction. Moreover, a company that provides an official receipt signals that the company is legitimate and doing the business rightly.

Sadly, despite being a big company we could consider, there are still real estate developers who are stable and “with a name”  but are sneaky and conduct their sinister way to avoid paying the proper tax from their revenues. Let us not tolerate this kind of practice who cheat not only on the government but also on us. Always demand an official receipt, the one that has a serial number and the business Tax Identification Number. Our tax should go where it belongs. You can do your part by reporting any developers who do not issue receipts to the Bureau of Internal Revenue.


Right to a Clean Title

Under Sections 25 and 26 of PD 957, Subdivision and Condominium Buyers Protective Decree,

“SECTION 25. Issuance of Title. – The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fees, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and delivered to the buyer in accordance herewith.

“SECTION 26. Realty Tax. – Real estate tax and assessment on a lot or unit shall be paid by the owner or developer without recourse to the buyer for as long as the title has not passed to the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.”

Upon full payment of the purchase price, the buyer of a subdivision lot or condominium unit shall have a right to possess and own a clean title. If the lot or unit is mortgaged, the owner/developer shall redeem the mortgage within six months from full payment so that the title could be delivered to the buyer. The only fee collectible from the buyer is the registration fee for the deed of sale in the Registry of Deeds. Realty taxes can be assessed on the buyer if he has actually taken possession and occupied the lot or unit prior to the transfer of the title in his name.

Effects of RA 9679 on OFW Pag-IBIG members

How does my POP membership differ from that under RA 9679?

The Pag-IBIG Overseas Program is entirely different from Pag-IBIG I. POP was a voluntary savings scheme for Filipinos abroad while membership under Pag-IBIG I is mandatory for Filipinos working abroad by virtue of RA 9679.

Do I have the option not to register under Pag-IBIG I since I am already a POP member?

Under RA 9679, all Overseas Filipino Workers are required to register under Pag-IBIG I, regardless if they are POP members or not. Other POP members (immigrants and those naturalized in other countries) may register voluntarily under Pag-IBIG I.

I am an OFW and a POP member as well, do I have the option to stop my POP membership and re-register for Pag-IBIG I membership instead?

Yes, you may discontinue your POP membership, provided you do not have an existing housing loan with Pag-IBIG Fund.

Can I continue with my POP membership and be a member under RA 9679 simultaneously?

Yes, a POP member is required to register under Pag-IBIG I but, at the same time, he may also opt to continue his POP membership.

When can I withdraw my POP TAV if I stop my POP contributions and register under RA 9679?

POP TAV may be withdrawn at point of maturity of POP membership.

Will my POP TAV and TAV under RA9679 be merged?

No, your TAV under both programs shall be kept separate. Your POP TAV will be released to you upon maturity of term even if your Pag-IBIG I membership is not yet due for release.


Mga Katanungan ng OFW tungkol sa Pag-IBIG Fund

Lahat ba ng OFWs ay sakop ng mandatory coverage ng RA9679?
Oo. Ayon sa RA 9679 at Implementing Rules and Regulations nito, kailangan magparehistro sa Pag-IBIG ang lahat ng OFWs, maging land-based o sea-based (marino o nagtatrabaho sa loob ng barko) man.

Sakop bilang miyembro ang isang marino pagkatapos nyang pumirma ng kontrata sa kanyang ahensiya o manning agency na tumatayo bilang employer, ganun din ang dayuhang may-ari ng barko. Bilang employer, mag-aambag ang ahensya ng kaukulang bahagi na dalawang porsyentong kontribusyon, base sa buwanang kita ng marino.

Samantala, kinakailangang magparehistro ng mga landbased OFW bago sila umalis ng Pilipinas o bago bumalik sa kanilang trabaho. Ang mga kasalukuyang nasa ibang bansa ay maaari ring magparehistro sa mga Pag-IBIG Posts.

Bakit kasama ang OFWs sa mandatory membership coverage?
Lahat ng nagtatrabahong Pilipino, sa Pilipinas man o sa ibang bansa, ay dapat magkaroon ng pantay na pagkakataon na makinabang sa lahat ng benepisyong programa ng Pag-IBIG. Ginawang mandatory ang membership ng OFWs upang mabigyan sila ng pagkakataon na mag-impok at maabot ang kanilang pangarap na magkaroon ng sariling bahay.

Paano magpa-rehistro ang OFWs sa ilalim ng mandatory coverage?
Pwedeng magpa-rehistro ang OFWs sa mga sumusunod:
• Pag-IBIG desks na matatagpuan sa Embahada o Konsulado ng Pilipinas sa labas ng bansa
• Pag-IBIG Fund International Operations Group, 6th Floor, Justine Bldg., Gil Puyat Avenue, Makati City
• Kahit saang branch o opisina ng Pag-IBIG sa Pilipinas
• Pag-IBIG satellite office sa Philippine Overseas Employment Agency (POEA)
• Piling banko at remittance agencies na kinikilala ng Pag-IBIG tulad ng PNB, Metrobank at iRemit Global Remittances Inc.

 Papaano ang proseso sa pagpapa-rehistro para sa mga dati nang miyembro ng Pag-IBIG sa ilalim ng Pag-IBIG Overseas Program (POP)?
Pwedeng bumisita ang OFW sa mga Pag-IBIG Information Desk na naka base sa Embahada o Konsulado ng Pilipinas upang mag fill out ng Member’s Data Form (MDF-FPF0909) o Membership Registration Form (MRF-FPF095). Kung nasa Pilipinas siya, maaaring pumunta sa pinakamalapit na opisina.

Kailangan din mag-update ng kanilang record, lalo na kung may mga naging pagbabago sa kanilang personal na impormasyon.

Maaaring i-download sa website ng Pag-IBIG ang MDF at MRF.

Kung ang isang dati nang miyembro ay magpapa rehistro bilang OFW, ano ang mangyayari sa kanyang kontribusyon?
Pagsasamahin ng Pag-IBIG ang lahat ng kanyang kontribusyon pati ang dati na niyang naihulog. Portable o mananatiling nasa pangalan ng miyembro ang kanyang impok, magpalipat-lipat man siya ng kompanya. Sinisiguro ng Pag-IBIG na ligtas at hindi mawawala ang impok ng miyembro.

Ano ang kapakinabangan ng isang miyembro ng Pag-IBIG?
A. Kapakinabangan ng Ipon
• Walang buwis na ipapataw sa ipon ng miyembro
• Kikita ng karampantang dibidendo na taunang idinadagdag sa ipon ng miyembro
• Nanatili ang ipon sa pangalan ng miyembro kahit lumipat siya ng kompanya, mawalan ng trabaho, o maging self-employed
• Garantisado ng gobyerno ang ipon, na mababayaran at maisasauli ang mga naihulog na kontribusyon ng miyembro anuman ang mangyari sa Pag-IBIG.

BuwanangHulog Kabuuang impok pagkatapos ng 20 taon kung ang itinakdang dividend rate Pag-IBIG Fund ay 5%
P 100 P 31,419.33
P 300 P 94,259.79
P 400 P 125,679.72
P 1,000 P 314,199.29
P 1,200 P 377,039.15

B. Short-Term Loans (Multi Purpose at Calamity Loans)

Pwedeng umutang para sa mga biglaang pangangailangan bilang pambayad ng tuition, minor home repair, kapital para sa negosyo at iba pa.

Ang sumusunod ay halimbawa kung magkano ang maaring hiramin sa ilalim ng Multi-Purpose Loan (MPL) Program.

Buwanang Impok/Kontribusyon Bilang ng Buwanang Impok Maaaring Mahiram sa Multi-Purpose Loan*
P100 hanggang P300 24 hanggang 60 na buwan 61 hanggang 120 na buwan P1,440 hanggang P10,800 P4,270 hanggang P25,200
P400 hanggang P600 24 hanggang 60 na buwan 61 hanggang 120 na buwan P5,760 hanggang P21,600 P17,080 hanggang P50,400
P700 hanggang P900 24 hanggang 60 na buwan 61 hanggang 120 na buwan
P10,080 hanggang P32,400 P29,890 hanggang P75,600

P1,000 hanggang P1,200 24 hanggang 60 na buwan 61 hanggang 120 na buwan P14,400 hanggang P43,200 P42,700 hanggang P100,800
* Ang computation na ito ay base sa employee at employer contributions lamang, at hindi kasama ang taunang dibedendong kikitain ng iyong impok

C. Pondo para sa Pabahay (Housing Loan)

Maaaring gamitin ang housing loan para sa alinman sa mga sumusunod:

• pagbili ng lupa;
• pagbili ng bahay;
• pagpapatayo o pagpapatapos ng bahay;
• pagpapaganda o pagkukumpuni ng bahay;
• pag refinance ng pagkaka-utang mula sa isang bangko na katanggap-tanggap sa Pag-IBIG Fund; at
• kumbinasyon ng mga nasabi.

Loan Package Interest Rate Buwanang Hulog*
6% P2,398.20
P750,000 7% P4,989.77
P1 Million 8.5% P7,689.13
P1.25 Million 9.5% P10,510.68
P2 Million 10.5% P18,294.79
P3 Million 11.5% P29,708.74
*Principal and interes lamang

Buwanang Impok/Kontribusyon Employer Counterpart Pinakamataas na maaaring mahiram
P100 hanggang P300
P100 Hanggang P700,000
P400 hanggang P600
Higit sa P800,000 hanggang P1.3 milyon
P700 hanggang P900 Higit sa P1.4 milyon hanggang P1.9 milyon
P1,000 hanggang P1,200 Higit sa P2.0 milyon hanggang P2.5 milyon

Magkano ang contribution rate?
Ang kontribusyon ng lahat ng miyembro, kasama ang OFWs, ay base sa sumusunod:

Buwanang kita Porsyento ng buwanang kita
Kontribusyon ng Empleyado o miyembro Katumbas ng Kontribusyon ng Employer (kung meron)
P1,500 and below One percent (1%) Two percent (2%)
P1,500 Two percent (2%)

Limang libong piso (P5,000) ang buwanang kita na ginagamit sa pagkuwenta ng kontribusyon. Ibig sabihin, parehong nasa P100 ang pinakamataas na hulog ng miyembro at ng kanyang employer. Gayunman, pwedeng dagdagan ng miyembro ang kanyang hinuhulog kada buwan para sa mas malaking ipon. Kung walang employer ang isang miyembro, maaari niyang akuin o bayaran maging ang employer counterpart.