Condominium ownership in the Philippines is perfected and protected by the issuance and delivery of a Condominium Certificate of Title (CCT), a Torrens title that evidences absolute ownership over a specific unit together with an undivided interest in the common areas. The failure of a developer or seller to release the CCT to a buyer who has completed full payment constitutes a serious breach that deprives the buyer of the full attributes of ownership, exposes the buyer to risk of loss, and undermines the integrity of the Torrens system. Philippine law provides a comprehensive array of administrative, civil, and criminal remedies designed to compel delivery, award damages, and penalize erring developers.

Governing Statutes

The principal statutes are:

Republic Act No. 4726 (The Condominium Act of 1966) – This law authorizes the creation of condominiums by master deed registered with the Register of Deeds. Section 4 requires the master deed to state the manner in which individual titles shall be issued upon completion of the project and full payment of the purchase price. Once the master CCT is subdivided, each buyer is entitled to a separate CCT corresponding to his unit.
Presidential Decree No. 957 (Subdivision and Condominium Buyers’ Protective Decree, as amended) – This is the cornerstone protective legislation. It mandates prior registration of the condominium project with the regulatory agency (originally HLURB, now the Department of Human Settlements and Urban Development or DHSUD). Developers are required to deliver the completed unit and the corresponding clean CCT free from all liens and encumbrances upon full payment. Violations of the decree are expressly declared unlawful and subject to administrative, civil, and criminal sanctions.
Civil Code of the Philippines (Republic Act No. 386) – Articles 1458 to 1637 on contracts of sale impose upon the seller the twin obligations to deliver the thing sold and to transfer ownership. Article 1495 expressly includes delivery of the title as part of the seller’s obligation. Article 1191 grants the injured party the right to rescind or demand specific performance with damages. Articles 2201–2217 govern the measure of damages, including actual, moral, exemplary, and attorney’s fees when the breach is attended by bad faith.
Presidential Decree No. 1529 (Property Registration Decree) – This codifies the Torrens system and governs the technical process of subdividing the master title and issuing individual CCTs.
Republic Act No. 6552 (Maceda Law) – Although primarily protective of defaulting installment buyers, its refund and grace-period provisions become relevant when the buyer has paid in full but the developer refuses delivery, reinforcing the buyer’s right to rescind and recover payments plus interest.
Republic Act No. 7394 (Consumer Act) – Treats the buyer as a consumer and provides additional grounds for damages and administrative sanctions for deceptive or unconscionable acts.

Obligations of the Developer

Upon full payment and project completion (or even earlier if the contract so provides), the developer must:

Segregate the unit from the master title through a technical description approved by the Land Management Bureau;
Clear any mortgage, lien, or encumbrance that burdens the specific unit (commonly a blanket mortgage on the entire project);
Execute and register the Deed of Absolute Sale;
Submit all required documents to the Register of Deeds for issuance of the individual CCT in the buyer’s name; and
Physically deliver the owner’s duplicate copy of the CCT to the buyer.

Any delay or refusal without justifiable cause is a breach of contract and a direct violation of PD 957, Section 17 and related implementing rules.

Rights of the Buyer

The buyer who has fully paid acquires:

An equitable right to demand immediate delivery of the CCT;
The right to possession, use, and enjoyment of the unit;
The right to a clean title free from the developer’s creditors’ claims;
The right to recover all payments plus legal interest, damages, and attorney’s fees; and
The right to administrative sanctions against the developer’s license.

Available Remedies

1. Extrajudicial Demand

The first mandatory step is a formal written demand sent by registered mail or courier with return receipt, demanding release of the CCT within a reasonable period (ordinarily 15–30 days). This demand tolls the prescriptive period and establishes the developer’s bad faith if ignored. A copy should be furnished to the DHSUD and the Register of Deeds.

2. Administrative Remedy before DHSUD

DHSUD exercises original and exclusive jurisdiction over disputes between subdivision/condominium buyers and developers concerning delivery of title (PD 957, as amended by RA 9904 and subsequent laws). The buyer files a verified complaint for “Non-Delivery of Title” accompanied by:

Contract to Sell or Deed of Absolute Sale;
Official receipts or bank transfers proving full payment;
Demand letter and proof of service;
Latest statement of account from the developer; and
Payment of filing fees.

The proceedings are summary in nature. DHSUD may issue:

An order directing the developer to deliver the CCT within a fixed period;
Award of actual damages, moral damages, exemplary damages, and attorney’s fees;
Imposition of administrative fines on the developer (up to PhP 100,000 per violation under current schedules) and suspension or revocation of the developer’s license;
Referral to the Office of the Prosecutor for criminal prosecution.

Decisions are appealable to the Office of the President, then to the Court of Appeals via Rule 43.

3. Civil Action in Regular Courts

If the buyer prefers or when the claim exceeds DHSUD’s monetary threshold for certain damages, a complaint may be filed with the Regional Trial Court (RTC) of the city or province where the condominium is located or where the defendant resides.

Causes of action commonly joined:

Specific performance (to compel execution and delivery of CCT);
Rescission of contract under Article 1191 with refund of all payments plus 12% or legal interest per annum;
Damages for breach of contract and bad faith;
Cancellation of any adverse claim or mortgage annotation that burdens the buyer’s unit.

The action is imprescriptible if based on an implied trust (the developer holds the title in trust for the fully-paid buyer) or prescribes in ten years from the date the right of action accrues (Article 1144, Civil Code).

4. Criminal Prosecution

Willful failure to deliver title after full payment may constitute:

Violation of PD 957, punishable by fine of not less than PhP 20,000 nor more than PhP 100,000 and imprisonment of not less than two nor more than ten years (Section 38);
Estafa under Article 315, paragraph 2(b) or 2(d) of the Revised Penal Code if the developer misappropriated the portion of the purchase price intended for mortgage clearance or title processing;
Violation of the Consumer Act.

The criminal complaint is filed with the Prosecutor’s Office. Conviction automatically carries civil liability enforceable in the same proceeding.

5. Ancillary and Provisional Remedies

Preliminary mandatory injunction to compel immediate release of the CCT pending litigation;
Annotation of lis pendens on the master title to prevent the developer from selling the unit to third persons;
Attachment or garnishment of the developer’s assets or bank accounts;
Receivership if the project is in financial distress.

6. Remedies When the Developer Is Insolvent or Under Rehabilitation

If the developer files for corporate rehabilitation or liquidation under Republic Act No. 10142 (FRIA), the buyer may:

File a claim as a creditor for the value of the unit plus damages;
Assert ownership rights over the specific unit if the CCT can still be segregated before general distribution;
Participate in rehabilitation proceedings to ensure title release is included in the approved plan.

Prescription and Laches

Actions based on written contracts prescribe in ten years. However, the Supreme Court has repeatedly held that mere inaction does not constitute laches when the buyer has continuously followed up with the developer. Each follow-up letter or meeting resets the period or prevents laches from attaching.

Burden of Proof and Evidence

The buyer must prove:

Execution of a valid contract;
Full payment of the purchase price;
Completion of the unit or the stage required by the contract for title delivery;
Demand for delivery; and
Failure or refusal of the developer to comply.

Once these are established, the burden shifts to the developer to prove a lawful justification (e.g., buyer’s failure to pay transfer taxes or submit required documents).

Jurisprudential Principles

Philippine jurisprudence uniformly holds that the obligation to deliver a clean CCT is not a mere formality but a condition precedent to the transfer of full ownership. Courts have consistently ruled that a fully-paid buyer acquires an equitable interest that can be enforced against the developer and, in proper cases, against the developer’s mortgagee if the mortgage was executed after the sale. Bad faith is inferred from prolonged inaction despite repeated demands, entitling the buyer to moral and exemplary damages. DHSUD’s jurisdiction is upheld as exclusive to avoid conflicting decisions and to provide specialized, expeditious relief.

Practical Considerations

Transfer taxes (documentary stamp tax, transfer tax, registration fees) are generally shouldered by the buyer unless the contract provides otherwise.
The buyer may pay the pro-rata share of the mortgage directly to the bank to obtain a partial release if the developer refuses, then seek reimbursement plus damages.
In projects with an existing Homeowners’ Association, the buyer may also demand issuance of the Certificate of Membership upon title delivery.

The legal system thus furnishes the buyer with layered, effective, and accessible remedies ranging from swift administrative relief before DHSUD to full judicial enforcement in the regular courts, backed by substantial damages and penal sanctions. Prompt assertion of rights upon discovery of the developer’s failure is the surest way to secure the CCT and protect the substantial investment made in the condominium unit.