WHY TITLES TAKE FOREVER - PART 2

Are developers legally required to deliver the title within six months? No.

Many people recall a supposed “6-month rule” under Presidential Decree No. 957 (Subdivision and Condo Buyers’ Protective Decree). But that memory is usually misplaced.

What PD 957 actually says, under Sec. 25, is this:

“The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit…”

Once fully paid, the developer must initiate the transfer and deliver the title—but the law does not specify how fast this must happen.

The commonly cited 6-month period comes from the next paragraph, which deals with a different issue: projects mortgaged to banks. PD 957 states that if a property is still encumbered, the developer must pay off the mortgage within 6 months, so the title can eventually be delivered to the buyer.

In short:

- Six months applies to clearing the mortgage

- Not to issuing or delivering the title

So strictly speaking, PD 957 only implies that title delivery should happen immediately upon full payment, but leaves the deadline open-ended.

And that’s the real problem.

An obligation without a deadline invites delay. Lawmakers should seriously consider amending PD 957 to impose a clear and reasonable timeframe—for example, 6-12 months from full payment. That’s already generous. A private individual can usually complete a title transfer in about 3 months.

Fairness should cut both ways. Developers impose penalties for late buyer payments; it’s only reasonable to impose penalties for late title delivery. At the very least, buyers should be given the option to process the title themselves if developers fail to act within the prescribed period.

One top broker I spoke with raised a more uncomfortable possibility: as long as developers sit on the signed Deed of Absolute Sale they're able to delay tax payments, and title transfer, so they enjoy positive carry on the funds collected. Taxes aren’t due yet, and the money can earn interest or be used elsewhere.

Whether that’s a side effect or an incentive is debatable. But until the law draws a hard line, title delays will remain the norm—not the exception.