How to Enforce a Compromise Agreement with DHSUD via a Verified Complaint (Philippine Context)

For buyers of subdivision lots or condominium units, homeowners’ associations, and developers

The Big Picture

In Philippine housing disputes, a compromise agreement is often the fastest way to end a case. In the DHSUD ecosystem, adjudication of buyer-developer and HOA disputes is handled by the Human Settlements Adjudication Commission (HSAC) (the adjudicatory successor of the HLURB). A compromise agreement may (a) be approved by an HSAC adjudicator as a Judgment upon Compromise or (b) be signed outside any case (e.g., during mediation at a DHSUD/HSAC office) and remain a private contract unless and until it is judicially approved.

Enforcement depends on the status of the compromise:

If already approved by HSAC (Judgment upon Compromise): Enforce by execution in the same HSAC case—no new case is needed.
If not yet approved (pure private contract): File a Verified Complaint for specific performance (or rescission with damages) before the HSAC Regional Adjudication Branch (RAB) if the dispute falls under its subject-matter jurisdiction (e.g., PD 957, BP 220, HOA disputes). Otherwise, file in the proper regular court.

This article explains both paths, with checklists, sample language, and strategy.

Legal Foundations You’ll Rely On

Civil Code, Compromise & Settlement (Arts. 2028–2037): A compromise has the force of law between the parties; once approved by a tribunal, a judgment upon compromise is immediately final and executory (treated like any other final judgment).
PD 957 (Subdivision and Condominium Buyers’ Protective Decree) and BP 220 (socialized housing): Regulate developer obligations; HSAC has quasi-judicial jurisdiction over disputes arising here.
RA 9904 (Magna Carta for Homeowners and Homeowners’ Associations): HSAC jurisdiction over many HOA controversies.
RA 11201: Created DHSUD and reconstituted HLURB’s adjudicatory functions into HSAC (attached to DHSUD for policy coordination but independent in adjudication).
HSAC Rules of Procedure (as amended): Governs filings, verified pleadings, mediation, compromise approval, execution, and contempt.

Path A — Enforcing a Compromise That HSAC Already Approved

Scenario: You settled during an HSAC case; the adjudicator issued a Decision/Judgment upon Compromise.

What to file

Motion for Issuance of Writ of Execution, attaching:
- Copy of the Judgment upon Compromise;
- Computation of amounts or a compliance matrix (what, when, how the other side defaulted);
- Sheriff’s Instructions (clear, actionable directives);
- Proof of service on the adverse party and payment of execution fees.

Typical remedies available

Garnishment of bank accounts;
Levy on personal/real property;
Constructive contempt for willful disobedience;
Receivership or special orders to compel specific acts (e.g., deliver title, issue refunds, rectify defects).

Practical tips

Build a timeline of default with dated exhibits (demands, acknowledgments, receipts).
Ask for time-bound directives (“within 5 days from receipt”) to avoid vague compliance.
If terms are ambiguous, move for clarification or amended writ; don’t let ambiguity stall execution.

Path B — Enforcing a Compromise That Was Never Approved (Private Contract)

Scenario: You signed a settlement at or outside DHSUD/HSAC (e.g., in mediation), but no judgment was issued. The other side defaulted.

Where to file

HSAC RAB with territorial jurisdiction over the project location (safe default) or as allowed by its rules (sometimes where any party resides, but project-based venue is common).
If the dispute is outside HSAC’s remit (e.g., a purely monetary claim with no PD 957/BP 220/HOA nexus), file in the regular courts (MTC/RTC depending on amount and nature).

What to file: a Verified Complaint for Specific Performance (or Rescission + Damages)

Core contents required by HSAC practice:

Caption and parties’ details (complete addresses and emails for e-service).
Verification (complainant swears to the truth of allegations) and Certification Against Forum Shopping (under oath).
Ultimate facts: existence of the project/development, parties’ roles (buyer, developer, HOA), terms of the compromise, breach, and resulting damage.
Causes of action:
- Specific performance of the compromise (Civil Code & PD 957/BP 220 obligations), or
- Rescission with damages, interest, and attorney’s fees (if justified).
Prayer (clear, measurable relief).
Attachments (ANNEXES): compromise agreement; project docs; proof of payments; correspondence; IDs/authority (SPA or Secretary’s Certificate).

Filing logistics:

Docket fees based on the amount or nature of relief; proof of payment is part of the record.
Service of summons follows HSAC rules; expect directions for mandatory mediation/conciliation.
Respondent files a Verified Answer within the period fixed by the rules or order.

What you want the adjudicator to do

Approve the compromise and render judgment upon compromise (now executable), or
If the other party repudiates, try the case on the merits and issue a decision ordering specific performance or rescission with damages.

Anatomy of a Strong Verified Complaint (Buyer/Unit Owner perspective)

Model structure (condensed):

Parties and Jurisdiction
- Identify the project (name, location, HLURB/HSAC/DHSUD permits if available).
- Allege HSAC subject-matter jurisdiction (e.g., dispute arises from PD 957 obligations).
Material Facts
- Purchase details (unit/lot, price, dates).
- Issues (delays, defects, title delivery, amenities).
- Compromise Agreement: date, signatories, specific obligations (refund, turnover schedules, rectification, penalties).
- Breach: due dates missed, partial compliance, computed shortfalls.
Causes of Action
- First: Specific Performance under the compromise (Civil Code Arts. 1159, 2028-2037; PD 957 duties).
- Alternative/Second: Rescission (Art. 1191) with damages; legal interest from default; attorney’s fees if bad faith.
Reliefs (Prayer)
- Approval of the Compromise and Judgment upon Compromise (if respondent is still amenable), or
- Order respondent to pay/perform; fix amounts/dates; impose legal interest; costs.
- Execution as a matter of course upon finality; contempt for disobedience.
Verification & Certification Against Forum Shopping
- Proper notarization; if represented, attach SPA or corporate authority.

Evidence & Exhibits That Win Cases

The Compromise Agreement (final signed copy, with initials on every page if available).
Proof of Authority of signatories (Board resolutions, Secretary’s Certificate, SPA).
Proof of Default: due dates vs. actual performance; emails acknowledging delays; bounced checks; ledger.
Project Compliance: licenses to sell, permits, project status photos, inspection reports (for PD 957 context).
Financials: receipts, SOAs, refund computations, bank records.
Communications: demand letters, Viber/email threads (authenticated printouts or device screenshots).

Pro-tip: Prepare a Compliance Matrix (Annex “X”) listing each obligation, due date, performance status, and the relief sought for each item.

Defenses You Should Anticipate (and How to Counter)

Lack of HSAC jurisdiction: Show PD 957/BP 220/HOA nexus and project location; emphasize that the compromise arose from that housing dispute.
No authority to sign: Attach corporate/association authority; invoke apparent authority or ratification if facts support it.
Ambiguous terms: Ask HSAC to interpret the compromise using Civil Code rules (intent, contemporaneous acts).
Substantial compliance: Counter with the matrix showing material variances and prejudice caused.
Novation/waiver claims**:** Rebut by showing absence of clear intent to novate and that tolerance was conditional or without prejudice in your communications.

Mediation, Re-Settlement, and Approval

HSAC proceedings typically include mediation/conciliation. You can:

Reaffirm the original compromise and submit it for approval;
Amend timelines/amounts with clear default clauses (e.g., automatic interest, acceleration, liquidated damages) and mode of payment (with post-dated checks or escrow).
Ask the adjudicator to issue a Judgment upon Compromise expressly authorizing execution upon breach with minimal motion practice.

Execution Playbook After You Win

Move for Writ of Execution—attach computation and compliance matrix.
Coordinate with the Sheriff—identify assets, banks, and third parties holding respondent’s property.
Seek Specific Acts—e.g., order to deliver title, rectify punch-list, issue receipts; ask for special orders enforceable by contempt.
Monitor—file Sheriff’s Return follow-ups and motions to break deadlocks (e.g., for clarified amounts, substitute performance, or escrow).

Special Situations

Multiple Unit Owners / Class-type issues: Consider consolidation if facts align; otherwise, file individually but coordinate evidence to avoid inconsistent rulings.
Ongoing project turnover: Seek interim relief (status quo or performance bonds) to prevent asset flight.
Developer insolvency risk: Move early for garnishment or lien annotations on titles/permits if the rules allow; identify related entities for tracing.

Practical Checklists

Filing Day Checklist (Verified Complaint)

Correct RAB venue (usually where the project is).
Verified Complaint signed; Forum Shopping Certification notarized.
SPA/Corporate Authority attached.
Compromise Agreement + exhibits marked as Annexes.
Proof of payment of docket fees.
Proof of service (if required at filing) and email addresses for e-service.

Evidence Packet

Compromise (clean & legible)
Authority of signatories
Compliance Matrix & computation
Payments/receipts/ledgers
Demands & acknowledgments
Project permits/licenses/photos

Sample (Condensed) Prayer for a Verified Complaint

PRAYER WHEREFORE, premises considered, Complainant respectfully prays that this Honorable Commission:

APPROVE the Compromise Agreement dated [date] and RENDER JUDGMENT UPON COMPROMISE; or, in the alternative,

ORDER Respondent to specifically perform the obligations under said Compromise, namely: (a) pay ₱[amount] on or before [date]; (b) deliver [title/unit/amenities] as specified; (c) rectify the following defects within [x] days;

IMPOSE legal interest from default until full payment;

AWARD damages and attorney’s fees as may be proven;

ISSUE a Writ of Execution upon finality; and

GRANT such other just and equitable reliefs.

[City], Philippines, [date].

[Signature blocks, Verification, Forum Shopping Certification, Notarial Acknowledgment]

Frequently Asked Questions

Is a compromise binding even if not approved by HSAC? Yes—as a contract between the parties. You can sue for specific performance or rescission. Approval converts it into a judgment, making execution faster.

Can HSAC modify the terms we signed? HSAC can disapprove manifestly illegal/unconscionable terms or seek clarification, but generally approves as agreed if lawful and voluntary.

What if the other side refuses to sign the compromise for approval? Proceed with your Verified Complaint and prove the contract and breach; ask for specific performance. You may also present admissions (emails, part performance).

Do I need a lawyer? Representation is strongly recommended due to technical rules on verification, forum shopping certification, venue, evidence, and execution.

Common Drafting Pitfalls (Avoid These)

Unverified complaints or missing forum shopping certification → dismissible.
No authority of signatory → compromise challenged as voidable.
Vague obligations (“deliver soon”) → hard to execute; always set dates, amounts, deliverables.
Skipping exhibits → allegations need documentary support; HSAC cases are evidence-driven.
Overlooking interest → specify from when and what rate you seek (cite default date).

Final Thoughts

If your settlement was already approved by HSAC, enforcement by execution in the same case is the swiftest route. If not approved, elevate it through a Verified Complaint for specific performance (or rescission) and seek judgment upon compromise. Build your case around a clean paper trail, a precise compliance matrix, and reliefs that are clear, dated, and measurable—so that once you win, the writ of execution writes itself.