COA Orders PNOC-DMC to Refund Payments for Unoccupied Condominium Unit

The Commission on Audit (COA) has directed the Philippine National Oil Company Development & Management Corporation (PNOC-DMC) to refund P408,798.79 to a private individual who failed to move into his condormitel unit despite settlement of his reservation fee and downpayment.

The total amount payable to Christopher M. Cahayon included P260,199.40 representing the downpayment for the unit; P108,599.39 for six percent legal interest from October 2015 to September 2022; and P40,000 in attorney’s fees.

On May 7, 2015 Cahayon purchased from PNOC-DMC a unit at the seventh floor of Building C, El Pueblo Condormitel located in Sta. Mesa, Manila. He paid a reservation fee of P17,000 and a 20 percent down payment amounting to P195,200.

A week later, however, he was informed that the said unit had already been sold to another buyer so he was offered a bigger unit on the sixth floor, but it required additional payment. Cahayon agreed so his reservation fee became P20,000 and the down payment became P240,199.40 or a total of P260,199.40.

Later, he was informed that he could already move into the unit upon settlement of the necessary joining and miscellaneous fees, and not upon full payment of the unit or issuance of corresponding postdated checks as stated in the Contract to Sell.

Despite payment of P260,199.40, Cahayon could not move into the said unit.

His repeated demands to PNOC-DMC to refund his money were not granted. The PNOC-DMC said that the reservation fee forms part of the total contract price and is non-refundable.

Cahayon then filed a complaint before the Housing and Land Use Regulatory Board (HLURB), which granted the refund of his money plus P40,000 attorney's fees and cost of suit.

A certificate of finality was issued by the Human Settlements Adjudication Commission (HSAC) on Feb. 28, 2020.

The case was filed before the COA on Oct. 3, 2022, with Cahayon praying for a total of P667,379.17. Aside from the principal amount, he sought legal interest worth P217,179.77, attorney's fee of P40,000, and cost of suit of P150,000.

In its decision, the COA said: \"The propriety of refunding the purchase price of the condominium unit, which gave rise to the claim of Mr. Cahayon, had already been adjudicated by the HLURB and attained finality. Thus, this Commission finds no compelling reason to deviate from the finding of the said adjudicating body. Moreover, it was not objected to by PNOC-DMC, which has treated the money claim of Mr. Cahayon as a contingent liability since 2016.

\"As regards the claim for cost of suit, although the HLURB granted it, no amount was indicated. This Commission cannot determine the amount in the absence of documents to support such claim.\"

Thus, the COA ruled that Cahayon is entitled to the refund of the purchase price of the condominium unit amounting to P260,199.40, plus legal interest of six percent from Oct. 17, 2015 to Sept. 30, 2022 of P108,599.39, and attorney's fees amounting to P40,000.

The seven-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioner Mario G. Lipana. Commissioner Roland Cafe