A real estate legal hiatus

Each time I go to the western side of the Cebu island, I take this route we have come to call as the "trans central highway". Its concrete pavement makes the driving less stressful especially that along the way you feel a refreshing unpolluted breeze.

Recently however, I have some alarming concerns stemming from a road problem somewhere in Barangay Pung-ol Sibugay. Right in front of the imposing gates of that high-end subdivision called Ayala Heights, the street has considerably depressed and it seemingly continues to sink each day. Where the cracks begin, one has to drive his car to a literal crawl to descend to the depressed level and then negotiate an undulating span. Actually, starting from the junction of Barangays Babag and Bonbon towards the crossing to Sirao, there are four such spots where the highway is affected by soil movement. These concern me as they do on most other travelers.

The first natural concern is that one day, the road shall become impassable. I fear that soon there might be a recurrence of what took place in 2001. To recall, in the late 2001, three portions of the road collapsed. The deepest cave in (of about ten feet) was observed in front of the Ayala Heights. The incident totally cut vehicular traffic. It was a good thing that reaction was very quick. I was told that it was the crew of Ayala Heights that worked overtime to repair the road in record time.

Another inevitable concern is the consequential damage this soil erosion may bring upon the development of that area. The Ayala Heights, as of the moment, is most adversely affected. This high-end subdivision had been finished many years ago and yet, only very few structures have been erected there. Not many have decided to reside there, notwithstanding its breathtaking view of the city. In my mind, the only plausible reason why there have been few homes built is that they have been discouraged by the prospect of their houses tumbling down the slopes, one day.

I believe the developers, as a necessary consequence of low sales, have not achieved their forecast profits. That's a mild way of saying that they have lost in this project. While I'm being very conservative here because I assume that whatever loses the Ayalas may have suffered may just be a small drop in their financial bucket, they incurred losses.

A graver and perhaps, a yet less perceptible concern, looms in the horizon on the side of those who may have purchased some lots. Considering the upbeat promotions given to the subdivision during its launching, and taking into account that the developer is a reputable company, it is not far-fetched an idea that some among the socially elite have decided to acquire a lot or two either for eventual residence or for land banking purposes. Then, since the time the soil erosion came, they have entertained second thoughts. At the back of their minds, there is this natural fear that springs from such a horrible scene of an eroded land. This brings us to a more serious thought. I am sure that, judging from the scarcity of the homes being erected in the subdivision, if this project, were undertaken by a minor league real estate player, it would have driven such company to total bankruptcy. There would have been no way to recover the millions spent to develop the otherwise marketable spectacular sight.

There ought to be a law that protects both the real estate developers on one hand and the buyers on the other hand. It may come in the form not quite dissimilar to that of an insurance which should be mandated as part of any real estate transaction. Where the developer fails to attract projected buyers, they should be able to recoup on the insurance fund. And where the buyers can not, for such reason as is obtaining at Ayala Heights, make use of the lots they, they may also lean back on the fund. If such a law were part of our country's legal landscape, real estate investments would have been less buffeted by unforeseen events, and the multiplying economic benefits would have spurred all the more our engines of development.

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