The Cebu City Council is taking a firm stand against potentially misleading marketing practices in the local real estate sector. A proposed ordinance aims to mandate full transparency from property developers regarding what home buyers will actually receive when they take possession of their units.
Mandating Clear Disclosures in Showrooms
Dubbed the "Cebu City Showroom Truth-in-Advertising Ordinance," the measure directly addresses complaints from buyers who felt misled by luxurious model units that did not match the final product. The proposed law will require developers to place clear "disclosure boards" in their showrooms. These boards must detail the exact floor area, list all included fixtures, and explicitly state which furniture items or upgrades shown are not part of the actual unit sale.
Furthermore, the ordinance stipulates that all display items and furniture must be true to size. This rule prevents the use of undersized furniture to make a space appear larger than it truly is, a common tactic that can distort a buyer's perception.
Penalties for Non-Compliance
To ensure adherence, the draft ordinance outlines a graduated penalty system for violations. The first offense carries a fine of P3,000 and a compliance order. A second violation will result in a P4,000 fine and a suspension of the showroom's operations for up to 30 days. For a third offense, developers face a P5,000 fine, a longer suspension, and a possible referral to the Department of Human Settlements and Urban Development (DHSUD) for further sanctions.
Councilor Harold Kendrick Go, the principal author of the ordinance, emphasized that the proposal seeks to shield consumers from deceptive marketing strategies that often lead to disputes during the critical turnover period. The measure aligns with the Consumer Act of the Philippines (Republic Act No. 7394), which prohibits fraudulent sales practices, and the Local Government Code of 1991, which empowers local governments to enact consumer protection laws.
Broader Impact and Enforcement
The scope of the ordinance extends beyond physical showrooms. All promotional materials, whether print or digital, must accurately display government-approved floor plans and include clear disclaimers. Labels such as "artist's perspective" must be used where applicable. Developers will also be required to provide an official turnover plan to buyers upon request.
If passed, enforcement will be a collaborative effort led by the Cebu City Housing Board, the Office of the Building Official, and DHSUD Region 7. These agencies are empowered to conduct random inspections of showrooms and marketing collateral to verify compliance. This multi-agency approach aims to create a more transparent and fair real estate market for Cebuano home buyers.
