SHINING LIWANAG ON YOUR RIGHTS | Pre-Selling Nightmare: When Developers Delay, Then Blame The Buyer

Letter of the Week: “Jeric”

Dear Atty.,

Good morning. Need ko po advice Atty. What can we do? Bumili po kami house ang lot sa Laguna pre-selling po noong 2023. We paid total of Php820,000 plus butal in equity (30 months) for that property. Natapos po naming bayaran ang equity last year 2025. Mula noon hanggang ngayon wala pa pong construction never started despite promises. Noong November 2025 po, the developer changed their policy and sabi nila ngayon they require an approved bank letter of guarantee, and they want to cancel our property because we couldn’t provide it, even though there is still no construction.

Ano po kaya magandang gawin Atty?

Umaasa,

Jeric

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Atty. Liwanag Replies:

Dear Jeric,

Oh dear. First off, thanks for reading and for trusting me with a situation that, sadly, maraming kababayan ang nadadali. Pre-selling always sounds like buying into a dream — until the developer starts taking your money, keeps making promises, and the site remains bare ground for years.

You did your part. You paid over ₱820,000 in equity over 30 months and finished it in 2025. From that point on, the ball should have been in the developer’s court. They should have started building, or at least shown meaningful progress consistent with permits and timelines. When they fail to deliver, that’s not just a delay — that’s the kind of non-performance na puwedeng magbigay sa buyer ng karapatan to demand compliance or even refund.

Then comes the twist: almost three years in, biglang may bagong requirement — a bank letter of guarantee — and a threat of cancellation if you don’t produce it. Pero take note: developers can’t just shift the rules mid-game without your consent, lalo na kung wala naman sa kontrata or marketing terms nung binili mo. A unilateral change like that is not automatically binding, at mas questionable pa dahil wala pang nakatayong bahay. For what exactly are they asking the bank to guarantee?

Real estate developers selling pre-selling units are regulated by DHSUD (dating HLURB). Hindi ito free-for-all. When construction is unreasonably delayed, when promises don’t match reality, or when developers try to cancel buyers for reasons na sila mismo ang nag-create, DHSUD can call them to order. Madami nang refunds, settlements, at enforcement actions na nangyari in cases like this.

Your options depend on what outcome you want. If you still want the property, puwede mong i-push sila to honor the sale and start construction under the original terms. If you’ve lost confidence — and honestly, di kita masisisi — you can seek cancellation with refund, on the ground na sila ang unang pumalya. Or you can negotiate a settlement with DHSUD mediation as leverage. Negotiation is sometimes faster than litigation, but leverage comes from showing na handa ka to escalate.

Make sure you keep your paperwork tight. Ipunin at itago ang contract to sell or reservation agreement, payment receipts, messages, and proof of lack of construction. Kung may written announcement about the new bank guarantee rule, keep that too. That’s your ammo.

Balik tayo sa realidad: a 2023 pre-selling project na by late 2025 ay zero construction is already a red flag. Either walang permits, walang financing, or naipit ang project. In any of those scenarios, hindi dapat ikaw ang maipit. They cannot fix their financing problem by canceling compliant buyers and shifting the risk to you.

If I were in your position, I’d put everything in writing, dispute the new requirement, demand clarity on construction status, and be ready to file with DHSUD if they don’t move. And whatever you do, huwag basta pumirma sa “cancellation” — once you sign, you lose leverage.

Good luck, Jeric. Sa laban na ganito, the law is actually on the side of the buyer.

Kailangan lang ipaglaban nang tama.

Gumagalang,

Atty. Erick Liwanag

(General guidance only — for case-specific action, consult counsel.)

For comments and suggestions, e-mail TFCN at [email protected].

Meet Atty. Erick Liwanag (yup, Liwanag talaga — kasi laging may liwanag sa mga legal dilemmas mo!). Siya ‘yung tulay between confusion and clarity. Forget the boring law books and nosebleed terms — si Atty. Liwanag explains the law in plain, real-world language na maiintidihan ng kahit sino. Hindi man siya superhero (‘di daw pumasa sa Bar ang kanyang kapa 😀), he’s got something better — sharp wit, solid legal know-how, at ‘yung chill na energy ng taong gusto lang magbahagi ng liwanag sa batas, na walang sakit sa ulo.💡⚖️