AN estimated 85 percent of cases being filed recently with the Housing and Land Use Regulatory Board legal office, including calls and walk-ins, involve refunds of installment payments. The refunds of installment payments include subdivision and condominium developments in Metro Manila.

HLURB legal officer Mike Denava says he had noticed an increase in the number of complaints and those seeking refund assistance since December 2008, majority of which come from families of overseas Filipino workers.

?These families said they no longer wanted to continue to pay because of hard times,? Denava informs Inquirer Property.

The HLURB head office in Quezon City oversees subdivision and condominium projects of developers in Metro Manila. Each of the board?s three legal officers, including Denava, receives a minimum of 10 phone-in and walk-in inquiries for assistance a day.

Continue to increase

Denava predicts the filing for refunds will continue to increase this year.

He surmises that the increase in the number of refund claims could already be a direct result of the global economic crisis.

?In my opinion, this might already be the effect of the global recession. Many of the buyers of houses and condominiums didn?t anticipate this crisis to happen,? Denava says in Filipino.

He reveals that a law exists to protect property owners paying on installment. He advises complainants, and even those about to buy a property on installment, to first familiarize themselves with Republic Act 6552, otherwise known as the Maceda Law.

Who could avail of refunds

Installment payments applied for refunds are governed by the Maceda Law, or the Realty Installment Buyer Protection Act. This Act enumerates set guidelines that defines who could avail of the refund.

If you are amortizing the subject unit for two years or more, under the law, you are entitled to 50 percent of total payments made, or the surrendered value of your total payments made amounts to 50 percent.

If the owner is already occupying the unit, he or she could be charged by the developer for rental fees.

Denava says, however, that any property owner who demands a refund should first start by talking to the developer. If the developer complies, there would be no need to file a complaint with the HLURB.

If the developer fails to comply with that demand, complainants can file their claims with the regional office pursuant to rules of procedures amended.

Denava adds that if the reason for refund is due to nondevelopment of the project, the buyer can demand for a full refund of payment.