13/10/2025
🏡 Who Is Liable for Property Damage Caused by Natural Disasters — Buyer or Developer?
In the Philippines, earthquakes, typhoons, and floods are natural occurrences that can cause serious property damage. One of the most common question from real estate buyers — especially those purchasing preselling or newly built homes — is:
“If the house or condo is damaged by a natural disaster, who is responsible for the repair — the buyer or the developer?”
💡 The General Rule
The liability depends on when the damage happens — before or after turnover.
Before Turnover:
The developer or seller bears responsibility for any loss or damage to the unit. The buyer has not yet taken ownership or control, so all risks remain with the developer.
After Turnover or Acceptance:
Once the buyer has formally accepted the property (through turnover documents or occupancy), the buyer becomes responsible for any future damages — including those caused by natural disasters or accidents.
It’s at this stage that buyers should consider obtaining fire and earthquake insurance coverage to protect their investment.
🏗 Why This Matters
Many buyers overlook the “Risk of Loss” clause in their Contract to Sell or Deed of Absolute Sale, which defines who bears the risk at various stages.
Understanding this clause ensures you know your rights and responsibilities when unforeseen events happen — like the earthquake that recently shook parts of Cebu or other calamities.
🧾 Pro Tip:
Before signing your contract, please check:
The turnover date and documentation
If the developer has an insurance policy during construction
Whether your financing institution (bank or Pag-IBIG) requires homeowner’s insurance.
⚠️ Disclaimer:
This article is for information purposes only and should not be construed as legal advice. Readers are encouraged to consult qualified professionals or legal counsel for specific concerns. Availability, terms and policies may vary per developer or property.
CCTO
