It is every homeowner’s nightmare – buying the property of your dreams, only to discover a major problem once you have already moved in.
What are your rights in this situation? Should the seller fix the problem? Are you entitled to a refund? In this guest post from our Q&A series, real estate entrepreneur Eric Madriñan answers these questions.
Q: What Should I Do if I Find out That the House I Bought Has Problems? Can I Ask the Seller, Developer, or Builder to Renovate or for a Refund?
A: Having problems with a house you have just bought is more common than you might think. The best solution to this is for the builder or developer to fix the problem to the satisfaction of the buyer.
However, if the Deed of Absolute Sale (DOAS) has already been signed by the buyer, then a refund is not likely to happen. The DOAS is signed and notarized once the house has been fully paid by the buyer. This means the seller has transferred the ownership of the property to the buyer, who now becomes the absolute owner of the property.
In circumstances where the builder or developer has failed to fix the problem, then the home-buyer can always make a formal complaint to the local government agencies handling this problem (for example, the Housing and Land Use Regulatory Board or HLURB). However, I strongly advise that you talk diplomatically to the builder or developer first, because the moment you file a formal/legal complaint, then the whole process will take a long time and this will create more problems than a solution.
If you are dealing with big developers like Ayala Land, Megaworld, or SMDC, then you are more likely to be given immediate action. However, if you are dealing with smaller build-and-sell businesses, getting swift action will depend on the kind of relationship you have with your builder. For this reason, I strongly advise for both parties (buyer and builder) to cultivate a friendly and professional relationship.
At the end of the day, buying a home is a huge undertaking and intense research is needed to make sure that everything is in order. Home-buyers are advised to seek the assistance of real estate professionals, contractors, and other experts to be sure that they are indeed purchasing the home of their dreams.
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About the author
Eric Madriñan is a civil engineer who is now handling a realty business focusing on buying and selling of properties. He has more than 20 years of sales experience in a top multinational company. He is a real estate entrepreneur and a believer in strong financial management.
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