In a press release dated August 19, 2026, the Supreme Court reported that a sales agent’s promise to issue a Contract to Sell after payment of a reservation fee was not an “advertisement” under Presidential Decree No. 957. The Court nevertheless ordered the developer to refund the buyer’s payments after the promised contract was not issued in Empire East Land Holdings, Inc. v. Bautista, G.R. No. 272556.

Marketing statements, reservation agreements, and a Contract to Sell may have different legal functions and consequences. A buyer should not assume that payment of a reservation fee automatically creates every right found in a full contract. Developers and representatives should communicate accurately and honor commitments that induce payments.

Prospective condominium buyers should request the written terms before paying. Important points include the unit description, price and schedule, refund and forfeiture provisions, expected documents, project approvals, turnover conditions, and the authority of the person receiving payment.

Developers and brokers can reduce disputes by standardizing representations and ensuring that agents do not make commitments outside their authority. Internal records should show what the buyer received, when each payment was made, and how requests for promised documents were handled.

The outcome of a property dispute depends on its evidence and governing contract. Buyers encountering prolonged delay, inconsistent terms, or refusal to issue promised documents should obtain advice before cancelling payments or signing a waiver.

Official source: View the official issuance or Supreme Court release.

This article provides general information and does not constitute legal advice. Requirements and procedures may change; obtain advice for your specific circumstances.