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Constructing Without a Permit: Legal Risks and Remedies for Philippine Property Owners

I am currently processing a building permit for a 3-story house. The problem is that construction is almost complete without the required permit. This violates PD 1096, also known as the National Building Code of the Philippines.


Is there a remedy?


"Existing buildings or structures without appropriate building permits/certificates of occupancy may be legalized and issued the necessary permits and certificates, provided they conform to these rules and regulations. However, they shall be subject to penalties, surcharges, fines, and other appropriate measures." (Section 103(b) of the Revised Implementing Rules and Regulations of PD 1096).


The owner can apply for a building permit, but must also expect to pay administrative fines and penalties, and potentially face criminal charges, including imprisonment, depending on the assessment by the Office of the Building Official.


This is our third article on building permits, focusing on the administrative and criminal liabilities of an owner who constructs a house without a building permit. Read our blog on Building Permits for more information.


BUILDING PERMIT

Mandatory Building Permit


"No person, firm, or corporation, including any agency or instrumentality of the government, shall erect, construct, alter, repair, move, convert, or demolish any building or structure, or cause the same to be done, without first obtaining a building permit from the Building Official assigned to the place where the building is located or the work is to be done." (Section 301, P.D. 1096, as amended).


The National Building Code of the Philippines mandates that construction, repair, alteration, occupancy, maintenance, and even demolition of any building requires a building permit.

Under PD 1096, anyone who violates these provisions, such as failing to secure a building permit before starting construction, may be held administratively and/or criminally liable.


Administrative Fine: Not Exceeding P10,000


"For the violation of any provisions of this Code or any rules or regulations issued thereunder, the Secretary is empowered to prescribe and impose fines not exceeding ten thousand pesos." (Section 212, P.D. 1096, as amended).

According to the Revised Implementing Rules and Regulations of PD 1096, administrative liability is detailed further.


building permits

building permits

Note that, aside from the administrative fine, if you are constructing a 3-story building (a superstructure above 2.00 meters) without a building permit, you will incur a surcharge of 100% of the building fees.


This is why processing the building permit for the 3-story house without one is costing the owner a significant amount of money.


Criminal Charges: Fine Not More Than P20,000 and Imprisonment Not More Than 2 Years


"Any person, firm, or corporation who violates any provisions of this Code and/or commits any unlawful act shall, upon conviction, be punished by a fine of not more than twenty thousand pesos or imprisonment for not more than two years, or both. In the case of a corporation, partnership, or association, the penalty shall be imposed on its officials responsible for the violation. If the guilty party is an alien, they shall be deported after payment of the fine and/or service of the sentence." (Section 213, P.D. 1096, as amended).


This means the owner must pay:

  • Building Permit Fee

  • Administrative Fine: P10,000

  • Penalty: 100% of the Building Permit Fee

  • Other Payments


What to Do?

Visit the Office of the Building Official for guidance.


Critical Issue:

Under Section 103(b) of the Revised Implementing Rules and Regulations of PD 1096, there is a remedy for existing buildings or structures without appropriate building permits/certificates of occupancy. They may be legalized and issued the necessary permits and certificates but with penalties, surcharges, fines, and other measures.


The critical issue is: Who will sign and seal the building plans?


Article 1723 of the Civil Code states the liability of engineers, architects, or contractors for damages due to defects in construction or the use of inferior materials:

The engineer or architect who drew up the plans and specifications for a building is liable for damages if within fifteen years from the completion of the structure, the same should collapse by reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor is likewise responsible for the damages if the edifice falls, within the same period, on account of defects in the construction or the use of materials of inferior quality furnished by him, or due to any violation of the terms of the contract. If the engineer or architect supervises the construction, he shall be solidarily liable with the contractor… (Article 1723 of the Civil Code)

If I were a professional, I would hesitate to sign and seal the design without personally knowing the construction materials used (e.g., steel sizes for concrete columns and foundations).


However, in our country, you can pay (around P5,000 per signatory) for professionals (structural engineers, electrical engineers, mechanical engineers, etc.) to sign and seal the building plans. They are willing to risk their license for the building’s liability. This discussion is for educational purposes only. Consult your lawyer for advice on your specific case. For any questions, contact us.


If you’re planning to buy a residential lot, house-and-lot, or condo unit, get in touch with us at 0920 207 5035 or email cebuhousefinder@yahoo.com for free assistance.


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