Wednesday, October 22, 2008 Land developer questioned for pre-selling sans permit By Grace L. Plata
DAVAO City Councilor Rachel Zozobrado called the attention of a real estate developer, Crown Communities, for pre-selling lots for its Positano project in Shrine Hills even without permit.
The proposal has reportedly not yet been given the preliminary approval and location clearance (PALC).
The PALC is the first permit the city issues so that the developers can pursue studies and development plans and get permits from other agencies.
Only upon the completion of these requirements can a developer apply for a development permit to start construction and apply for a permit to sell from the Housing and Land Use Regulatory Board.
"I wonder why you have a stall in the malls which are already pre-selling the lots even if the approval is still in the process," Zozobrado said.
Crown Communities General Manager Myra Lynn Gilig, who was present during Tuesday's session for discussion on their PALC application, said this is merely a promotional campaign.
"This will encourage buyers to reserve or just to sign in so they can be followed up," Gilig said.
Zozobrado, however, said a friend of hers has already made a down payment for a lot in the Positano development, thus saying the selling process, and not just reservations, has started.
According to Councilor Victorio Advincula, regardless if there was any down payment, the fact that the intent to sell has been accepted by the client is already a contract of sorts.
"You do not pre-sell under the guise of promotions. It is not right. The project should be approved first. This is also to make sure that the developer just doesn't leave the buyer hanging if it does not intend to finish the project, Advincula said.
He added the act of pre-selling without permit is a violation of the subdivision law of which the developer is made to pay a fine of P10,000 per violation.
