Subdivision Construction Bond

Hoping for your help and clarification on this matter. Thanks in advance!

We acquired a Lot only property via PagIbig 2 years ago, and we're planning to have our house built this year. Our lot is located in Brookside Hills Subd in Cainta.

I inquired at the subdivision association office, and we were informed about a 50k bond, which I totally understand the purpose, wherein in case there's a violation during the construction (ex: workers without helmet, etc...), it will be deducted from that bond. I was also informed that it is only valid for 1 year.

We're on a tight budget, but we're very willing to have our own home. We're planning to build a 2-storey house, and we set they're expectation that our goal is to have the 1st floor finished within a year, then the 2nd floor in another year or two. So the total time for the house (according to the plan) to get finished is within 2-3 years.

However, we were informed that the 50k bond will be forfeited if the house won't be finished within a year. We can request to extend it after that first year by paying a lower bond (ex: 30K).

Can the bond really be forfeited when the house isnt finished in a year? Is it a valid violation?

Again, thanks.in advance!

Hello po,

This is the first time I've ever heard of a bond to be forfeited if the construction of the house is not finished within a year.  However, this is also the first time I've read that plans of building a house is set in 2-3 years.  

The construction bond is usually set by the homeowners in a subdivision, and the time limit is NOT unreasonable.  In 2-3 years, if you still hadn't finished the house construction and there is damage to the roads, how will your bond of Php50K justify that?

Your best bet is to go back to the association office and read the deed restrictions. Talk to the president and see what other options you have.  Otherwise, 2-3 years is a long time to build, AND there is more opportunity for damages and violations to be incurred.