Introduction

Presidential Decree No. 957—the Subdivision and Condominium Buyers’ Protective Decree—is the Philippines’ cornerstone statute safeguarding buyers of residential subdivisions and condominium projects. While PD 957 regulates registration, licensing, advertising, sale, and completion of projects, it also creates a web of warranties (statutory, regulatory, and implied by other laws) that protect condominium buyers from purchase through turnover and long after occupancy.

This article organizes everything a buyer, unit owner, or association officer should know about warranties applicable to condominiums under PD 957, read together with the Condominium Act (RA 4726), the Civil Code, the National Building Code framework, and standard industry practice.

What “Warranty” Means in the PD 957 Context

“Warranty” here is broader than a one-year fix-it promise. It includes:

Statutory performance and disclosure warranties (developer’s obligations created by PD 957 and its IRR).
Title and documentation warranties (clean titling; lawful conveyance).
Quality, habitability, and compliance warranties (completion to approved plans/specs; utilities and services).
Structural warranties and professional liability (long-tail liability under the Civil Code for structural defects).
Implied warranties in sales (hidden defects; misrepresentation).
Contractual and manufacturer warranties (fit-out, equipment).

Think of PD 957 as the backbone; other laws supply ribs and muscle that make these warranties enforceable.

Who Is Covered and Who Is Liable

Developer/Owner: Primary obligor under PD 957; warrants lawful sale, truthful advertising, completion per approved plans, timely titling, and service deliverables.
Contractor/Engineer/Architect: Potentially solidarily liable for structural defects under the Civil Code (Art. 1723).
Brokers/Agents: Bound by advertising/disclosure rules; misrepresentations trigger remedies.
Condominium Corporation (Condo Corp): Receives common areas and assumes post-turnover operations; not a shield for the developer’s prior breaches.

A. Statutory Warranties Under PD 957

1) Registration, License to Sell, and “Truth in Advertising”

Registration with the housing regulator (now DHSUD) and a License to Sell are preconditions to valid public offering.
Advertising representations form part of the sale. Brochures, model units, floor areas, amenities, materials, and finishes publicly offered become binding warranties; material downgrades require regulatory approval and, in practice, buyer consent or compensation.

Buyer leverage: If the license has conditions (e.g., phasing, amenities, completion schedule), those conditions operate as warranties of deliverability.

2) Completion to Approved Plans & No Unauthorized Changes

The project must be built substantially as approved (site development, building permits, structural systems, finishes for deliverable units, and promised amenities).
Material alterations (layout reductions, facility deletions, re-siting of amenities) need approval and cannot prejudice purchasers without an agreed remedy.

3) Utilities, Access, and Habitability

The developer warrants serviceability: lawful access, water and power connection arrangements, sewer/septic compliance, fire and life-safety features, and building egress compliant with approvals.
Occupancy/Completion Certificates are not mere paper—they evidence the developer’s warranty that the building is fit for occupancy consistent with plans and building regulations.

4) Titling and Conveyance

The developer warrants the lawful conveyance of title: issuance and delivery of an individual Condominium Certificate of Title (CCT) to the buyer upon full payment and compliance with documentary requirements.
Mortgage rule: Units must be sold free from undisclosed liens; if the project or land is mortgaged, the buyer’s title must be released/cleared upon full payment (the classic PD 957 protection).
Turnover of common areas to the Condominium Corporation is part of the statutory completion warranty.

5) Escalations, Fees, and Transparent Charges

Price escalations or material cost adjustments must be contractual and lawful; hidden add-ons are not allowed.
Dues (association or common area charges) collected by the developer prior to turnover must be accounted for and applied to operations for buyer benefit.

6) Remedies & Sanctions (Administrative)

DHSUD (formerly HLURB) may order rectification, completion, refund, damages, administrative fines, or suspension/revocation of the developer’s permits for PD 957 violations.
These administrative remedies sit alongside civil and criminal liability.

B. Structural and Quality Warranties Beyond PD 957

1) Civil Code Article 1723 – Structural Defect Liability

Who: Architects/engineers who drew the plans/specs or supervised construction, and the contractor.
What: Liable for damages if the building collapses or suffers serious structural failure within 15 years from completion due to defects in design, construction, ground, or use of inferior materials.
Prescription: Action must be filed within 10 years from the collapse (long-tail).
Practical effect: Even after developer turnover, owners (or the Condo Corp) retain a statutory structural warranty against the professional team and contractor.

2) Implied Warranty Against Hidden Defects (Civil Code)

The seller (developer) impliedly warrants that the unit has no hidden defects rendering it unfit or significantly diminishing its use/value.
Remedies range from rescission to price reduction, plus damages where appropriate.
Latent defects in waterproofing, plumbing risers, firestopping, acoustic assemblies, or MEP equipment that are not apparent at acceptance frequently fall here.

3) National Building Code & Fire Code Compliance

Compliance is not optional: deviations that jeopardize structural integrity or fire/life safety can ground administrative and civil actions, and support claims for specific performance (fixes) or damages.

C. Contractual and Manufacturer Warranties

1) Developer’s Defects Liability Period (DLP)

Most purchase and turnover documents include a Defects Liability Period (commonly 6–12 months from unit acceptance) covering workmanship and non-structural defects.
This is in addition to, not in lieu of, statutory warranties. Failure to include a DLP does not waive statutory claims.

2) Equipment & Materials

Elevators, fire pumps, generators, HVAC, submeters, and access systems carry manufacturer warranties (often 1–2 years, longer for select components).
The developer should assign warranties to the Condo Corp and provide as-built drawings, O&M manuals, and warranty certificates.

D. Title and Documentation: What Buyers Are Entitled to Receive

Clean CCT in the buyer’s name after full payment and submission of standard documents.
Master Deed with Declaration of Restrictions and all amendments filed with the Registry of Deeds.
House Rules/By-Laws of the Condominium Corporation; buyer becomes a member/shareholder.
Proof of approvals: Building Permit, Occupancy/Completion Certificate, Fire Safety Inspection Certificate (for the completed building/phase).
Turnover package: As-builts, O&M manuals, keys/access cards, meter numbers, punchlist close-out, and assigned warranties.

E. Common Warranty Issues—and How the Law Treats Them

1) Shrinking floor area or re-layout of amenities

Material discrepancy from plans or advertisements is actionable. Remedies include price adjustment, repair/retrofit, or rescission/refund in serious cases, plus administrative penalties.

2) Water ingress, acoustic failure, and façade leaks

These are classic latent defects; expect responsibility during DLP and potentially beyond (hidden defects). Perimeter sealants, waterproofing membranes, window systems, and unit demising assemblies are frequent culprits.

3) Elevator, genset, or fire pump underperformance

Falls under equipment warranties and habitability/serviceability obligations; if arising from design/specification error, professional liability may attach.

4) Undelivered or downgraded amenities

Because advertising is part of the sale, material downgrades require approval and a buyer remedy. Without it, administrative action and civil damages are in play.

5) Delayed CCT issuance

Unreasonable delay in titling after full payment breaches the conveyance warranty; owners may pursue specific performance and damages and seek administrative sanctions.

6) Mortgaged projects/units

PD 957 protects buyers against loss of paid units to prior mortgages when buyers have complied with payment; developers must secure release of mortgage for the unit upon full payment.

F. Enforcement Toolkit (How to Use Your Warranties)

Document Early, Document Often
- Keep the Reservation Agreement, Contract to Sell/Deed, receipts, brochures, and all project correspondence. Advertising promises are evidence of warranted features.
Punchlisting and Acceptance
- During turnover, conduct a detailed punchlist; accept the unit subject to listed defects. Time-bound rectification obligations should be written.
Notice and Opportunity to Cure
- Send dated notices describing defects, locations, and requested remedies; include photos and expert notes if available.
Escalation Path
- Developer/Property Management → Condo Corp Board (for common areas) → Regulator (DHSUD) for PD 957 violations;
- City Building/Fire Office for code non-compliance;
- Civil action for damages, rescission, or specific performance;
- Art. 1723 claims against contractor/professionals for structural failures.
Limitation Periods (Practical Guide)
- DLP/contractual: follow the period in your documents (often 6–12 months) for non-structural defects.
- Hidden defects (Civil Code): assert promptly after discovery; remedies can include rescission or price reduction plus damages (observe prescription rules applicable to your contract).
- Structural (Art. 1723): failures within 15 years from completion are actionable; file within 10 years from collapse.
- Written contracts and breach of developer obligations can carry longer prescriptive periods—do not sleep on rights; consult counsel early to calendar deadlines.

G. Special Notes on Common vs. Unit Warranties

Unit (separate): finishes, fixtures, interior MEP branches, windows (often shared responsibility at the line of demarcation).
Common Areas: structure, façade, roofs, risers, elevators, pumps, life-safety systems are typically the Condo Corp’s domain; the developer remains liable for pre-turnover breaches, latent defects, and structural issues.
Clarify demarcation drawings during turnover so future claims route correctly.

H. Buyer/Association Checklists

Turnover & Warranty Dossier (ask the developer for):

As-built architectural/structural/MEP drawings (PDF + editable format if available)
Test & commissioning reports (elevators, fire pumps, genset, sprinklers, alarms)
Warranties: membranes, sealants, elevators, pumps, generators, submeters, access systems
Material cut-sheets and maintenance schedules
Occupancy/Completion and Fire Safety certificates
Final snag list closure report and timeline commitments
Assignment of manufacturer warranties to the Condo Corp
Insurance during construction and initial operations (to identify coverage handover)

Sample “Defect Notice” (you can adapt)

Subject: Warranty Claim – Unit [] / [Project] Date: []

We notify you of the following defects discovered on [date]: – Location: [Room/Area] | Defect: [e.g., water leak at window head] | Evidence: [photos attached] – Requested action: [repair/replace] within [reasonable days].

This notice is without prejudice to other defects discovered and our statutory/contractual rights.

I. Frequently Asked Questions

Is the one-year DLP my only warranty? No. The DLP is contractual and covers workmanship/visible defects. PD 957 obligations, implied warranties, code compliance, and Art. 1723 structural liability exist in addition and extend far longer.

What if the developer blames the contractor? The buyer’s claim lies against the developer (seller). The developer may, in turn, pursue the contractor/consultants. For structural failures, you may also sue the contractor and professionals directly under Art. 1723.

Can the developer change amenities or finishes due to ‘value engineering’? Not materially without approvals and a buyer remedy. Advertising and approved plans operate as warranties of deliverables.

Our CCTs are delayed. What can we do? Demand specific performance with a timetable. If unreasonable, pursue administrative action under PD 957 and civil remedies for damages.

J. Practical Strategy for Owners and Boards

Create a Warranty Matrix listing each system, its warranty period, responsible party, and claim procedure.
Calendar inspection cycles (e.g., façade sealants at 2–3 years; roof membranes annually). Early detection preserves claims.
Keep a defect log with dated notices and closure evidence—essential for regulatory or court action.
For suspected structural or life-safety issues, engage an independent engineer; contemporaneous expert reports are powerful evidence.
Align house rules and fit-out guidelines so alterations don’t void manufacturer warranties (e.g., drilling through waterproofing, overloading balconies).

Key Takeaways

PD 957 gives buyers statutory warranties on truthful sale, lawful titling, and completion per approved plans with serviceability.
Civil Code and Building Code frameworks add long-tail liability for structural failures and implied warranties for hidden defects.
Advertising = warranty. Material deviations need approval and buyer remedies.
The DLP is not the ceiling of your rights—serious defects and structural issues are actionable long after turnover.
Keep documents, punchlist thoroughly, give prompt written notices, and use DHSUD and the courts strategically when needed.

If you want, I can turn this into (1) a one-page buyer checklist, (2) a board-level warranty matrix template, and (3) a sample demand package (letter + photo log format) ready for use.