Property purchasers demand reimbursement from real estate constructor

In the Philippines, over 100 individuals, many of whom are overseas Filipino workers (OFWs), are demanding refunds and accountability from Azzela Properties Development Corp. (APDC) following a series of unfulfilled promises and alleged breaches of contract.

Beginning in June 2020, APDC marketed several pre-selling projects, including Azienda Azaliyah and Azella Heights. Buyers, enticed by the promise of prime residential and commercial developments, were assured that construction would begin immediately once their equity payments were completed. However, despite significant payments, no homes were built.

Buyers paid amounts ranging from P250,000 to over P2 million, with some even paying both equity and transfer fees in full, expecting their homes to be turned over by 2023. Yet, five years later, the promised sites remain empty lots.

The buyers' situation is marked by slow refunds and mounting frustration. Lawyers for some homebuyers have accused the developer of "gross misrepresentation" and "clear breach of contract." In response, the group of affected buyers is now preparing legal action to recover their money and hold the company accountable.

DHSUD, the Department of Human Settlements and Urban Development, has confirmed that developers must secure a license to sell before offering units. The agency, which is intensifying its campaign to safeguard buyers' rights, has recommended that affected buyers seek at least a 50 percent refund.

In cases of failed or problematic property development, the Housing and Land Use Regulatory Board (HLURB) can mediate disputes, order developers to refund buyers, impose penalties, or cancel fraudulent projects to protect buyers' rights. The HLURB, the primary government agency responsible for protecting homebuyers from fraud and violations in real estate transactions, sets regulations and standards for housing developments and ensures developers comply with the law.

The Minglanilla mayor's office has endorsed the buyers' case to DHSUD, and the agency's Secretary, Jose Ramon Aliling, has stated that they are stepping up measures to protect homebuyers and clearing backlogs in complaints.

Azzela Properties began offering refunds in 2023, but the process was described as "painfully slow." BETH Morales, who retired early to oversee a property bought in Minglanilla, is one of the affected buyers. Despite her payments, her property remains an empty lot five years later.

In an attempt to justify the delays, Azzela's CEO, Lloyd Adlawan, allegedly gave repeated excuses, blaming the Covid-19 pandemic and a typhoon for the delays and telling buyers to ignore online complaints. The buyers, however, aim to ensure accountability to prevent similar schemes from happening again.

These measures aim to ensure transparency, financial security, and legal protection for residential property purchasers in the Philippines.