Developer penalized for illegal lot sale
A PROJECT developer in Cebu is facing legal action and penalties for allegedly developing and selling lots on Olango Island, Lapu-Lapu City, without the necessary permits.
The Department of Human Settlements and Urban Development (DHSUD) 7 ordered Rise 23 Properties and Development Corp. to pay a total of P450,000 in penalties for selling 75 lots in Barangay Baring, Olango Island, without the necessary license to sell and certificate of registration, or P6,000 per lot sold and an additional P6,000 for failing to register the project.
Lapu-Lapu City Mayor Junard “Ahong” Chan has informed the public about the illegal transactions of Rise 23 Properties and Development Corp.
DHSUD 7 Director Lyndon Juntilla issued a cease-and-desist order, ultimately halting the developer from advertising or selling the lots until it properly registers the project and obtains a license to sell.
Rise 23 Properties and Development Corp. allegedly violated Sections 4 and 5 of Presidential Decree (PD) 957, also known as the Subdivision and Condominium Buyers’ Protective Decree.
Despite the company’s claims of partial refunds and ongoing efforts to secure the required permits, the DHSUD 7 has dismissed the developer’s motion for reconsideration, emphasizing that any sale without prior authorization constitutes a clear violation of the law.
The penalties must be settled before the developer can proceed with the necessary applications, the agency said.
“Comply, settle, or pay the said penalties before commencing its application for license to sell or certificate of registration to this Office relative to the project,” states a portion of the DHSUD order.
The order was finalized and took effect on Jan. 22.
The Cebu City-based Rise 23 Properties and Development Corp. has been active in developing affordable housing projects in the region.
One of its notable projects is the Aqua Homes development situated between Barangays Baring and Tingo on Olango Island. Approximately three and a half years ago, the company announced ground preparations for the expansion of this project.
In a motion for reconsideration to DHSUD’s order, a representative of the developer said that, of the 75 saleable lots, only 50 had been sold under the Aqua Homes project.
The representative further confirmed that P585,000 had been refunded to one of the buyers.
A compromise agreement has also been reached with another buyer, stipulating that P498,075 will be reimbursed to him in monthly installments from November 2024 to May 2025.
The developer is working to complete the application and registration for Aqua Homes with DHSUD and other agencies to obtain the required license to sell and certificate of registration.
However, DHSUD dismissed the motion as “unmeritorious,” emphasizing that offering and selling lots without the prior license to sell and certificate of registration constitutes a clear violation of PD 957.
It added that the “mere attempt” to sell the units constitutes an act of selling.
DHSUD further stated that the actions taken to reimburse and resolve issues with the buyers do not excuse the respondent from liability or diminish the violation of PD 957, which warrants administrative sanctions.
DHSUD’s order added that although the respondent’s efforts to comply with registration, licensing and other government requirements are necessary, these actions do not absolve the respondent from liability for violating the same PD, as they are simply fulfilling their legal obligations to the public.
SunStar tried to reach Rise 23 Properties and Development Corp. via Messenger, but it has not responded as of press time. / DPC
Source: https://www.sunstar.com.ph/cebu/developer-penalized-for-illegal-lot-sale
