ANNEXA
MALACAfrANG
Manila
DECREENO,957
PRESIDENTIAL
LOTSAND CONDOMINIUMS,
THESALEOF SUBDIVISION
REGULATING
THEREOF
PROVIDING
PENALTIESFORVIOLATIONS
the requirements
WHEREAS,it is the policyof the Stateto affordits inhabitants
of decenthumanseftlementand to providethemwith ampleopportunitiesfor improvif€
theirqualityof life;
WHEREAS,numerousreportsrevealthat manyreal estatesubdivision
owners,
developers, operators, and/or sellers have reneged on their representationsand
obligationsto provide and maintainproperlysubdivisionroads, drainage,sewerage,
watersystems,lightingsystems,andothersimilarbasicrequirements,
thusendangering
the healthand safetyof homeand lot buyers;
WHEREAS,reportsof alarmingmagnitudealso show cases of swindlingand
perpetratedby unscrupulous
fraudulentmanipulations
subdivisionand condominium
sellers and operators,such as failure to delivertitles to the buyers or titles free from
liensand encumbrances,
and to pay real estatetaxes,and fraudulentsalesof the same
subdivision
lotsto differentinnocentpurchasers
for value;
WHEREAS,theseactsnot only undermine
the landand housingprogramof the
governmentbut also defeatthe objectivesof the New Society,particularlythe promotion
of peaceand orderandthe enhancement
of the economic,
socialand moralconditionof
the Filipinopeople;
WHEREAS,this state of affairs has renderedit imperativethat the real estale
subdivision
and condominium
businesses
be closelysupervised
and regulatedand that
penalties be imposed on fraudulentpracticesand manipulationscommifted in
connectiontherewith.
NOW,THEREFORE,
l, FERDINANDE. MARCOS,presidentof the phitippines,
by virtueof the powersvestedin me by the constitution,do herebydecreeand order:
Title I
TITLEAND DEFINITIONS
SEC. 1. Tltle. - This decreeshail be known as THE SUBDMSION AND
CONDOMINITJM
BUYER'SPROTECTIVE
DECREE.
sEc. 2. Definition of rerms. - when used in this decree,the followingterms
shallun{essthe contextothenarise
indicates,havethe followingrespectivemeanings:
a)
Person.- "Person"shalrmeana naturaror a juridicalperson. A juridical
person refers to a businessfirm whether a corporation,partnership,cooperativeor
association
or a singleproprietorship.
or attemptto
b)
Saleor Sell. - "Sale"or "Sell"shallincludeeverydisposition,
of a subdivisionlot, includingthe buildingand
dispose,for a valuableconsideration,
projector condominium
unit in a
thereof,if any, in a subdivision
other improvements
project."Sale"and "Sell"shallalsoincludea contractto sell,a contractof
condominium
purchaseand sale,an exchange,an attemptto sell,an optionof sale or purchase,a
solicitation
of a sale,or any offerto sell,directlyor by an agent,or by a circular,letter'
or otherwise.
advertisement
A privilegegivento a memberof a cooperative,corporation,partnership,or any
or givingthe rightof
of receiptevidencing
and/orthe issuanceof a certificate
association
fee or
payment
the
membership
of
of
participation
in, or right,any landin consideration
dues,shallbe deemeda salewithinthe meaningof thisdefinition.
shall includeany
c)
Buy and Purchase.- The term "Buy"and "Purchase"
contract to buy, purchase, or othenruiseacquire for a valuable considerationa
if any, in a subdivision
lot,includingthe buildingand otherimprovements,
subdivision
project.
unitin a condominium
projector a condominium
subdivisionProject. - "subdivisionProject"shall meana tract or a parcel
d)
of land registeredunder Ait No. 496 which is partitionedprimarily for- residential
thereon,and offeredto the
purposesiito individuallots with or withoutimprovements
public for sale, in cash or in installmentterms. lt shall include all residential,
commercial,industrialand recreationalareas, as well as open spaces and other
and publicareasin the project'
community
subdivisionLot. - "subdivisionLot" shallmeanany of the lots,whether
e)
pqect'
in a subdivision
or recreational,
industrial,
commercial,
residential,
f)
complexsubdivisionPlan. - "complexsubdivisionPlan"shall meana
subdivisionplan of a registeredland whereina street,passagewayor open spacels
on the Plan.
delineated
condominiumProject. - "condominiumProject"shall mean the entire
s)
"of
parcel real propertydivided or to be divided primarilyfor residentialpurposesinto
thereon'
all structures
units,including
condominium
h)CondominiumUnit.-.CondominiumUnit'shal|meanapartofthe
use or ownership,including
project intendedfor any typeof independent
condominium
one or more roomsor spaceslocatedin one or morefloors(or part of partsof floors)in
abui|dingorbui|dingsandsuchaccessoriesasmaybeappendedthereto.
owner. - ,.owner'.sha||referto the registeredownerof the |andsubjectof
i)
project.
or a condominium
a subdivision
j)Deve|oper'-''Developer''sha||meanthepersonwhod.eve|opsor
projectfor and in behalfof the owner
projector condominium
improvesthe subdivision
thereof.
Dealer.- "Dealer"shallmeanany persondirectlyengagedas principalin
k)
realestatewhetheron a full-timeor partthe businessof buying,sellingor exchanging
timebasis.
51
l)
Broker. - "Broker"shallmeanany personwho, for commissionor other
compensation,
undertakesto sell or negotiatethe sale of a real estatebelongingto
another.
m)
Salesman.- "Salesman"
shallreferto the personregularlyemployedby a
brokerto perform,for and in his behalf,any or all the functionsof a realestatebroker.
n)
Authority.- 'Authority"shallmeanthe NationalHousingAuthority.
Title ll
REGISTRATION
AND LICENSETO SELL
sEc. 3. NationalHousingAuthority. - The NationalHousingAuthorityshall
have exclusivejurisdiction
to regulatethe real tradeand businessin accordancewith
the provisions
of thisDecree.
sEc. 4. Registrationof Project. - The registeredownerof a parcelof landwho
wishesto convertthe sameintoa subdivision
projectshallsubmithissubdivision
ptanto
the Authoritywhichshallact uponand approvethe same,upona findingsthatthe plan
complieswith the Subdivision
Standardsand Regulations
enforceable
lt the time the
plan is submifted.The same procedureshallbe followedin the case of a plan
for a
projectexceptthat,in addition,saidAuthorityshallact uponand approve
condominium
the planwith respectto the buildingor buildingsincludedin the condominium
projectin
accordance
withthe NationalBuildingCode(R.A.No.6541).
plan,as so approved,shallthen be submittedto the Directorof
.
Th" subdivision
Landsfor approvalin accordancewith the procedureprescribedin seition 44 of
the
Land Registration
Act (Act No. 496 as amendedby R.A. No. 440): provided.that in
of theCondominium
Act(R.A.No.4726).
The owner or the rear estate dearer interestedin the sare of
rots or units,
respectively,
in suchsubdivision
projector condominium
projectshallregisterthe project
l/i1h the Authorityby firingtherewitha sworn registrationstatemenicontainingthe
following
information;
a)
Nameof the owner;
b)
The locationof.the owner'sprinciparbusinessoffice,and if the owner
rs a
non-resident
Firipino,
the nameand addressof his agentor representative
in the philippinesauthorizedto receivenotice;
c)
The namesand addressesof ail the directorsand officersof the
business
firm, if the owner:
d)
The general characterof the businessactuallytransactedor
to be
transactedby the owner;
52
e)
A statementof the capitalization
and
of the owner,includingthe authorized
proportion
thereofwhichis
outstanding
amountsof its capitalstockandthe
paro-up.
The followingdocumentsshatlbe attachedto the registrationstatement:
a.
A copy of the subdivisionplan or condominiumplan as approvedin
of thissection;
accordance
withthefirstand secondparagraphs
b.
letter,or
A copy of any circular,prospectus,brochure,advertisement,
lotsor
communication
to be usedfor the publicofferingof the subdivision
units;
condominium
c.
In case of a businessfirm, a balancesheet showingthe amountand
generalcharacterof its assetsand liabilitiesand a copy of its articlesof
as the casemay be'
or association,
or articlesof partnership
incorporatton
with all the amendmentsthereofand existingby-lawsor instruments
thereto;
correponding
d.
A title to the propertywhich is free from all liens and encumbrances:
unitis
lotor condominium
thatin caseanysubdivision
Provided,however,
mortgaged,itissufficientiftheinstrumentofmortgagecontalnsa
stipulationthat the mortgageeshall release the mortgage on any
unitas soonas the full purchasepricefor
lot or condominium
subdivision
the sameis PaidbYthe buYer.
The person filing the registrationstatementshall pay the registrationfees
prescribed
thereforeby theAuthority.
causeto be publisheda noticeof the
the Authorityshallimmediately
Thereupon,
at the expenseof the applicant- owneror dealer,in
statem-ent
filingof the registration
in Englishandanotherin.Pilipino,
onepublished
of generalcirculation,
two'newspapeis
statementfor the
weeks,recitingthat a registration
once a week for two consecutive
units his been filed in the NationalHousing
sale of subdivisionlots or condominium
nutnoritv;that the aforesaidregistrationstatement,as well as the papersattached
such
duringbusinesshoursby interestedparties,
thereto,are opento inspection
-under
the Authoritymay impbse;and that copiesthereofshallbe furnishedto
i"grl"irn.
"J paymentof the properfees.
any partyupon
projectshallbe deemedregistered
The subdivisionprojector the condominium
upon completionof the above publicationrequirement.The fact of such registration
or
certificateto be issuedto the applicant'owner
sirallbe evidencedby a registration
dealer.
SEC.5. Licenseto Sell - Suchowneror dealerto whom has been issueda
certificateshall not, however,be authorizedto sell any subdivisionlot or
registration
projectunlesshe shatlhavefirst obtaineda license
unitin the registered
condominium
of suchproject'
to sellthe projectwithintwoweeksfromthe registration
therefore,shall issueto such owner or
The Authority,upon properapplication
of the
dealerof a registeredprojecta'licenseto sellthe projectif, afteran examination
.stitementfiled by said owner or dealerand all the pertinentdocuments
registration
CJ
.attachedthereto,he is convincedthat the owner or dealer is of good repute,that his
businessis financiallystable,and that the proposedsale of the subdivisionlots or
condominium
unitsto the publicwouldnot be fraudulerit.
SEC, 6. Performance Bond. - No licenseto sell subdivisionlots or
condominiumunits shall be issuedby the Authorityunder section 5 of this Decree
unlessthe owneror dealershall havefiled an adequateperformancebond approvedby
said Authorityto guaranteethe constructionand maintenanceof the roads, gutters,
drainage,sewerage,water system,lightingsystems,and full developmentof the
subdivisionprojector the condominium
projectand the complianceby the owner or
dealerwiththe applicable
lawsandrulesandregulations.
The performancebond shall be executedin favor of the Republicof the
Philippinesand shall authorize the Authority to use the proceeds th'ereoffor the
purposesof its undertakingin caseof forfeitureas providedin this Decree.
sEc' 7. . Exempt Transactions. - A ricenseto seil and perfo'nance bond shall
not be requiredin any of thefollowingtransactions:
a)
sale'of a subdivisionrot resurtingfrom the partitionof randamong coownersandco-heirs.
b)
Saleor transferof a subdivision
fot by the originarpurchaserthereofand
any subsequent
saleof the samelot.
c)
sale of a subdivision
fot or a condominium
unit by or for the accountof a
m:rtSaqegin the ordinarycourseof businesswhennecessaryto liquidate
a bonafidedebt.
sEc' 8. suspension of Licenseto sert. - Uponverifiedcompraint
fitedby a
buyerof a subdivisionlot or a condominium
unitor any interestedp",tv,
in"
irft,oritv
'ticense
may, in its discretion,immediatery
suspendthe owner,sor deare/s
to sert
pendinginvestigationand hearingoi the caseas provided
,n section rs heieor.
The suspensionordermay be riftedif, afternoticeand
hearing,the Authorityis
convincedthat the registrationstatementis accurateor
that any aericlencyttreieinhas
been conected or supplementedor that the iaie io tne public
of the subdivisionor
condominium
projectwiil neitherbe fraudurent
nor resurtin fraud. rt shailarsobe rifted
upondismissalof the complaintfor lackof tegatbasis
pensions,
the suspension
of the rightto sell
rsons notified thereof, shall be deemed
rderof suspension
has in the meantimebe
54
SEC.9. Revocationof RegistrationCertificateand Licenseto Sell. - The
Authoritymay,motopropioor uponverifiedcomplaintfiledby a buyerof a subdivision
of any subdivisionprojectand the
lot or condominiumunit, revokethe registration
lot or condominium
licenseto sellany subdivision
unitin saidprojectby issuingan order
into the affairsof
to this effect,with his findingsin respectthereto,if uponexamination
provided
for in Section14 hereof,it shallappear
the owneror dealerduringa hearingas
evidencethatthe saidowneror dealer:
thereis satisfactory
a)
ls insolvent;
or
b)
of this Decreeor any applicableruleor
Has violatedany of the provisions
bond;
of his/itsperformance
or any undertaking
regulation
of theAuthority,
or
c)
Has been or is engagedor is aboutto engagein fraudulenttransactions;
or
d)
brochure,circularor
in any prospectus,
Has madeany misrepresentation
projectthat
project
condominium
or
other literatureabout the subdivision
buyer;or
to prospective
has beendistributed
e)
ls of badbusinessrepute;or
fl
with law or soundbusiness
Doesnot conducthis businessin accordance
PrinciPles.
or an unincorporated
or corporation
Wherethe owneror dealeris a partnership
certificateand
registration
its
of
it shallbe sufficientcausefor cancellation
association,
or any officeror directorof such
its licenseto sell, if any memberof such partnership
has beenguiltyof any act or omissionwhichwouldbe cause
or association
corporation
'refusing
of an individualdealer,brokeror salesmanas
or revokingthe registration
for
providedin Section11 hereof.
SEC. 10. Registers of Subdivision Lots and Condominium Units. A record
unitsshallbe keptin the Authoritywhereinshallbe
lotsand condominium
of subdivision
enteredall ordersof the Authorityaffectingthe conditionor statusthereof The registers
unitsshallbe opento publicinspectionsubjectto
lots and condominium
of subdivision
such reasonablerulesas the Authoritymay prescribe
Title lll
DEALERS.BROKERSAND SALESMEN
sEc. 11. Registrationof Dealers,Brokersand salesmen. No real estate
dealer,brokeror sa|ert"n shallengagein the businessof sellingsubdivisionlots or
unitsunlesshe has registeredhimselfwith the Authorityin accorclance
condominium
of thissection'
withthe provisions
lf the Authorityshallfind that the applicantis of good reputeand ha.scomplied
fee, he
including
the paymentof the prescribed
rulegof the Authority,
withthe applicable
or
a
bond'
filing
shallregistersuchapplicantas a dealer,broker,or salesmanuponhis
othersjcurity in lieuthereof,in suchsum as may be fixedby the Authorityconditioned
upon his faithfulcompliancewith the provisionsof this Decree: Provided,that the
registration
of a salesmanshallceaseuponthe termination
of his employmentwith a
dealeror broker.
Every registrationunder this section shall expire on the thirty-firstday of
Decemberof each year. Renewalof registration
for the succeedingyear shall be
granteduponwrittenapplication
thereforemadenot lessthanthirtynor morethansixty
days beforethe first day of the issuingyear and upon paymentof the prescribedfee,
withoutthe necessityof filing furtherstatementsor information,unless specifically
requiredby the Authority.All applications
filedbeyondsaid periodshallbe treatedas
original
applications.
The names and addressesof all personsregisteredas dealers,brorers or
salesmanshallbe recordedin a Registerof Brokers,Dealersand salesmankeptin the
Authoritywhichshallbe opento publicinspection.
SEC. 12. Revocationof Registrationas Dealers,Brokers, Salesmen.
Registrationunder the precedingsection may be refusedor any registrationgranted
thereunder,revokedby the Authorityif, after reasonablenotice-and-hearing,it shall
determinethatsuchapplicantor registrant:
1)
Has violatedany provisionof this Decreeor any rule or regulationmade
hereunder:
or
2)
Hasmadea materialfalsestatement
in hisapplication
for registration;
or
3)
Has. been guilty of a fraudulentact in connectionwith any sale of a
subdivision
lot or condominium
unit;or
4)
Has demonstrated
his unworthiness,
to transactthe businessof dearer,
broker,or salesman,
as the casemavbe.
ln case of chargesagainsta saresman,noticethereofsha arso given
be
the
brokeror dealeremploying
suchsalesman.
Pendinghearingof the.case,the Authorityshail have the power
to order the
suspensionof dearer's,broker'sor saresman's
registration;
provided,thatiucn oroer
shallstatethe causefor the suspension.
The suspension
or revocation
of the registration
of a dearershaflcarrywith it arl
..
the suspension
or revocation
of the registration-s
of all hissalesman.
56
Title lV
PROCEDURE
FORREVOCATION
OF
CERTIFICATE
REGISTRATION
the existenceof any ground
SEC.13. Hearing. - In the hearingfor determining
and licenseto
registration
certificate
of
and/orrevocation
or groundsfor the suspension
sellas providedin SectionsI andt hereof,the followingshallbe compliedwith:
a)
Notice - No such hearingshall proceedunless the respondentis
furnishedwith a copyof the complaintagainsthim or is notifiedin writing
of the purposeof suchhearing.
b)
Venue - The hearingmay be heldbeforethe officeror officersdesignated
by the Authorityon the dateand placespecifiedin the notice.
c)
and
Natureof Proceedings- The proceedingsshall be non-litigious
courts
in
obtaining
summaryin naturewithoutregardto legaltechnicalities
of law. The Rulesof Court shall not apply in said hearingexcept by
analogy or in a suppletorycharacterand wheneverpracticableand
convenient.
d)
to the Hearing- Forthe purposeof the hearing.ofother
PowerIncidental
proceedingunderthis Decree,the officeror officersdesignatedto hearthe
oaths,subpoenawitnesses,
complaintshallhavethe powerto administer
of
requirethe production
and
take
dispositions,
conductocularinspections;
anybook,paper,correspondence'memorandum,orotherrecordwhich
are deemedrelevantor materialto the inquiry.
SEC.14. ContemPt.a)
Directcontempt. - The officeror officersdesignatedby the Authorityto
hearthecomp|aintmaysummarilyadjudgeindirectcontemptanyperson
in the presenceof nearthe said hearingofficialsso
guiltyof misbehavior
to
as to obstructor interruptthe proceedingsbeforethe same or of _refusal
beswornortoanswerasawitnessortosubscribeanaffidavitor
depositionwhen lawfullyrequiredto do so. The personfound guiltyof
directcontemptunderthissectionsha||bepunishedbyafinenot
exceedingfifty(P50.oo)pesosorimprisonmentnotexceedingfive(5)
daYs,or both
b)
Indirectcontempt. - The otficeror officersdesignatedto hear the
comp|aintmaya|soadjudgeanypersoninindirectcontemptongrounds
andinthemannerprescribedinRuleT'loftheRevisedRulesofCourt'
sEc. 15. Decision. - Thecaseshallbe decidedwithinthirty(30)daysfromthe
of the
time the sameis submittedfor decision.The decisionmay orderthe revocation
or
cancellation,
proiect,the suspension,
or condominium
of the subdivision
registration
part,
the
in
of
whole
or
reiocationof the licenseto sell and/or the forfeiture,in
oerformancebond mentionedin Section6 hereof. In case forfeitureof the bond is
ordered,the Decisionmay directthe provincialor city engineerto undertakeor cause
or condominium
for the subdivision
of roadsind of otherrequirements
the construction
shall be
decision
Such
forfeited.
the
amount
to
as stipulatedin the bond,chargeable
executoryandshallbecomefinalafterthe lapseof 15 daysfromthe dateof
immediately
receiptof the Decision.
SEC.16. Ceaseand DesistOrder. - Wheneverit shallappeartothe Authority
that any personis engagedor aboutto engagein any act or practicewhichconstitutes
or will constitutea violationof the provisionsof this Decree,or of any rule or regulation
thereunder,
it may,upondue noticeand hearingas providedin Section13 hereof,issue
a ceaseanddesistorderto enjoinsuchactor practices.
SEC. 17. Registration.-All contractsto sell,deedsof sale and othersimilar
instruments
relativeto the saleor conveyance
of the subdivision
lotsand condominium
units,whetheror not the purchasepriceis paidin full,shallbe registered
by the sellerin
the Officeof the Registerof Deedsof the provinceor citywherethe propertyis situated.
Whenevera subdivision
plandulyapprovedin accordance
withSection4 hereof,
togetherwith the corresponding
owner'sduplicatecertificate
of title,is presentedto the
Registerof Deedsfor registration,
the Registerof Deedsshall registerthe same in
accordancewith the provisionsof the Land RegistrationAct, as amended: provided,
however,that if thereis a street,passageway
or requiredopen spacedelineateoon a
planhereafterapprovedandas definedin this Decree,the Register
complexsubdivision
of Deedsshallannotateon the new certificateof ti e coveringthe street,passagewayor
open space,a memorandum
to the effectthat exceptby way of donationin favorof a
city or municipality,
no portionof any street,passageway,
or openspacedelineatedon
the plan shall be closedor otherwisedisposedof by the registeredowner withoutthe
requisiteapprovalas providedunderSection22 of thisDecree.
SEC. 18. Mortgages. - No mortgageon any unit or lot shallbe made by the
owneror developerwithoutpriorwrittenapprovalof the Authority.Suchapprovalshall
not be grantedunlessit is shownthatthe proceedsof the mortgageloanshallbe used
for the development
of the condominium
or subdivision
prolectlnd effectivemeasures
have been providedto ensuresuch utilization.The loan value of each lot or unit
covgredby the mortgageshall be determinedand the buyerthereof,if any, shall be
notifiedbeforethe releaseof the loan. The buyermay,at his option,pay his installment
for the lot or unit direcilyto the mortgageewho in"tt appiy the' paymentsto the
corresponding
mortgageindebtedness
securedby the particulirlot or unit beingpaid
for, with.a.viewto enabringsaid buyerto obtaintifleover the lot or unit promptiy
after full
paymentthereof.
sEc' 19. Advertisements.- Advertisements
thatmay be madeby the owner
or developerthroughnewspaper,radio,terevision,
reaflets,ciicuraror any'otherform
aboutthe subdivision
or the condominiunr
or its operations
or activitiesmuit reflectthe
realfactsand mustbe presentedin suchmannerthatwill nottendto misleador deceive
thepublic.
The owner or developershall be answerableand liable for the facilities,
improvements,
infrastructures
or otherformsof development
represented
or promisedin
brochures,adverlisements
and othersalespropaganda
by the owneror
'shall-form disseminated
developeror his agents and the same
part of rhe saies waranties
enforceable
againstsaid owneror developer,
joinflyand severally.Failureto compry
withthesewarranties
shallalsobe punishable
in accordance
withtirepenaltiesprovided
for in this Decree.
F,a
SEC.20. Time of Completion.- Everyowneror developershallconstructand
provide the facilities,improvements,infrastructuresand other forms of development,
includingwater supplyand lightingfacilities,which are offeredand indicatedin the
plans,brochures,prospectus,printedmatters,
approvedsubdivisionor condominium
withinone yearfromthe dateof the issuanceof
letiersor in any formof advertisement,
projector such otherperiodof time as
or condominium
the licensefor the subdivision
maybe fixedby the AuthoritY.
lotsor condominium
sEc. 21. SalesPriorto Decree.- In casesof subdivision
unitssold or disposedof priorto the effectivityof this Decree,it shallbe incumbentupon
the owner or developerof the subdivisionor condominiumproject to complete
as providedin the precedingsectionwithintwo
compliancewith his or its obligations
yearsfromthe dateof this Decreeunlessotherwiseextendedby the Authorityor unless
withSection6 hereof.
bondis filedin accordance
an adequateperformance
underthis and
Failureof the owneror developerto complywith the obligations
the precedingprovisionsshallconstitutea violationpunishableundersections38 and
39 of thisDecree.
sEc. 22. Alterationof Plans. - No owneror developershallchangeor alter
facilitiesfor publicuse and/orother form of
the roads,open spaces,infrastructures,
plan and/or
subdivisiondevelopmentas containedin the approvedsubdivision
and the
Authority
of
the
withoutthe permission
i"pr.r"nt"o in its advertisements,
or in the
association,
wiittenconformityor consentof the duly organizedhomeowners'
absenceof the laiter,by the majorityof the lot buyersin the subdivision.
paymentmadeby a
sEc. 23. Non-Forfeitureof Payments. - No installment
pro
or condominium
buyerin a subdivision
shallbe forfeitedin favorof the owneror d€
desistsfromfurthet
the owneror developer,
the legalrate.
s E c . 2 4 ' F a i | u r e t o P a y | n s t a | | m e n t s . . T h e r i g h t s o f t h e b u y e r i n t h e eor
ventof
due for reasonsotherthanthe failureof the owner
his failureto pay the installments
Jeveloperto developthe projectshallbe governedby RepublicAct No.6552
Where the transactionor contractwas entered into prior to the effectivityof
to the
RepublicAct No.6552on August26,1972,the defaultingbuyershallbe entitledlaw in
paidafterthe effectivityof the
refundbased6n the installments
corlesfonOing
the absenceof any provisionin the contraclto the contrary'
sEc.25.lssuanceofTit|e..Theownerordevelopersha|lde|iverthetitleof
those
the lot or unit to the buyeruponfull paymentof the lot or unit. No fees,except
requireOfor the registrationol the de6Oof sale in the Registry of Deeds, shall be
collectedfor the issuanceof suchtitle. In the eventa mortgageover the lot or unit is
at the timeof the issuanceof the titleto the buyer,the owneror developer
outstanding
portionthereofwithinsix monthsfrom
shallredeemthe mortgageor the corresponding
such issuancein ordei that the title over any fully paid lot or unit may be securedand
herewith'
deliveredto the buyerin accordance
59
SEC.26. RealtyTax. - Realestatetax andassessment
on a lot or unitshallbe
paidby the owneror developerwithoutrecowseto the buyerfor as longas the titlehas
not passed the buyer; Provided, however, that if the buyer has actually taken
possession
of and occupiedthe lot or unit,he shallbe liableto the owneror developer
for suchtax and assessment
effectivethe yearfollowingsuchtakingof possession
and
occupancy.
SEC,27. Other Charges. - No owneror developershalllevy uponany lot or
unitbuyera fee for an allegedcommunity
benefit.Feesto financeservicesfor common
comfort, security and sanitation may be collected only by a properly organized
homeowners
association
and onlywiththe consentof a majorityof the lot or unitbuyers
actuallyresidingin the subdivision
or condominium
project.
SEC. 28. Access to Public Offices in the Subdivision. - No owner or
developer shall deny any person free access to any governmentoffice or public
establishment
locatedwithinthe subdivision
or whichmay be reachedonly by passing
throughthe subdivision.
sEc' 29. Right of way to pubric Road. - The owner or deveroperof a
subdivision
withoutaccessto any existingpublicroad or streetand such rightof way
must be developedand maintainedaccordingto the requirementof the g6vernment
authorities
concerned.
. . sEc. 30. organization of HomeownersAssociation. - The owner or
developerof a subdivisionprojector condominiumprojectshall initiatethe organization
of a homeowners
association
amongthe buyersand residentsof the projeJtsfor the
purposeof promotingand protecting
theirmutualinterestand assistin theii community
development.
Sec' 3'l' Donationof Roadsand open spaces to LocarGovernment.- The
registeredowner or developerof the s
any other purposeor purposesunless after hearing,the proposed
converslonis
approvedby the Authority.
sEc. 32. Phases of subdivision. - For purposesof comprying
with the
provisionsof this Decree,the owneror deveropermay divide
tne devebi#erit and sale
of the subdivision
intophases,eachphaseto covernot ressthanten
troineciares. rne
requirementimposedby this Decreeon the subdivision
as a whole shall be deemed
imposedon eachphase.
. 9Eq. 33. Nullity of Waivers. _ Any condition,stipulation,or provisionin
contractof sale wherebyany personwaivescompriancewiih any prwilion
or tnis
Decreeor of any ruleor regulation
issuedthereunder'shall
be void.
sEc. 34. visitoriar powers. - This Authority,throughits dury
authorized
representativemay, at any time, make an examinationinto the business
affairs,
administration,
and conditionof any person,corporation,
partnership,
coopeiatiue,or
association
engagedin the businessof sellingsubdivision
lbts and condominium
unrts.
60
For this purpose,the officialauthorizedto do so shallhave the authorityto examine
under oath the directors, officers, stockholdersor members of any corporation,
partnership,association,cooperativeor otherpersonsassociatedor connectedwith the
businessand to issue subpoenaor subpoenaduces tecum in relation to any
investigation
thatmayarisetherefrom.
The Authoritymay also authorizethe Provincial,City or MunicipalEngineer,as
the casemaybe,to conductan ocularinspection
of the projectto determinewhetherthe
developmentof said projectconformsto the standardsand specificationsprescribedby
the government.
The books, papers,letters,and other documentsbelongingto the personor
entitiesherein mentionedshall be open to inspectionby the Authorityor its duly
reoresentatives.
authorized
SEC. 35. Take-OverDevelopment. - The Authority,may take-overor cause
the developmentand completionof the subdivisionor condominiumprojectat the
jointlyand severally,in caseswherethe owneror
expenseof the owneror developer,
developerhas refusedor failedto developor completethe developmentof the Project
as providedfor in thisDecree.
The Authoritymay, after such tiake-over,demand,collect and receivefrom the
buyers the installmentpaymentsdue on the lots, which shall be utilizedfor the
of the subdivision.
development
SEG.36. Rules and Regulations. - The Authorityshallissuethe necessary
of the provisionsof this
standardsrulesand regulationsfor the effectiveimplementation
aftertheir
shalltake effectimmediately
Decree. Suchstandards,rulesand regulations
publicationthree (3) times a week for tvvoconsecutiveweeks in any newspaperof
generalcirculation.
sEG. 37. Deputizationof Law EnforcementAgencies. - The Authoritymay
agencyin the executionof
or any lawenforcement
constabulary
deputizethe Philippine
its finalorders,rulingsor decisions.
SEc. 38. Administrative Fines, . The Authoritymay prescribeand impose
or
of this.Decree
of the provisions
finesnot exceedingten thousandpesosfor violations
and
Authority
of any rule or rejulation thereunder. Fines shalt be payable to the
enforjeablethroughwrits of executionin accordancewith the provisionsof the Rulesof
Court.
sEc. 39. Penahies. - Any personwho shallviolateany of the provisionsof this
that may be issuedpursuantto this D€creeshall,
Decreeand/orany ruleor regulation
be punishedby a fine of nor morethantwentythousand(P20,000.o0)
uponconviction,
of not morethanten (10)years. Provided,that-inthe case
pesosand/orimprisonment
the President,Manageror
partnerships,
or associations,
cooperatives,
of corporations,
of the businessshall
or the personwho has chargeof the administration
Administrator
for anyviolationol thisDecreeandlorthe rulesand regulations
be criminallyresponsible
pursuantthereto.
promulgated
61
SEC. 40. Liability of Controlling Persons. - Everypersonwho directlyor
indirectlycontrolsany personliableunderany provisionof this Decreeor of any ruleor
regulationissuedthereundershallbe liablejointlyand severallywith and to the same
personactedin goodfaithand
extentas such controlledpersonunlessthe controlling
did not directlyor indirectlyinducethe act or acts constitutingthe violationor causeof
action.
SEC.41. Other Remedies.- The rightsand remediesprovidedin this Decree
shallbe in additionto any and all otherrightsand remediesthat may be availableunder
the existinglaws.
SEC.42. RepealingClause. - All laws,executiveorder,rulesand regulations,
or partsthereofinconsistent
with the provisions
of this Decreeare herebyrepealedor
modifiedaccordingly.
SEC.43. Effectivity. - ThisDecreeshalltakeeffectuponits approval.
DONEin the Cityof Manila,this 12thday of July,in the yearof our Lord,nineteen
hundredand seventy-six.
(SGD.)FERDINAND
E. MARCOS
President
Republicof the Philippines
By the President:
(sGD.)JACOBOC. CLAVE
Presidential
Executive
Assistant
oz
DECREENO.1216
PRESIDENT]AL
AND AMENDING
SUBDIVISION
"OPENSPACE"IN RESIDENTIAL
DEFTNING
SUBDIVISION
REQUIRING
NO,957
OECREE
SECTION31 OF PRESIDENTIAL
AND RESERVEOPENFOR
OWNERSTO PROVIDEROADS,ALLEYS,SIDEWALKS
PARKSOR RECREATIONALUSE
WHEREAS, there is a compelling need to create and maintain a healthy
environmentin human settlementsby providingopen spaces, roads, alleys and
sidewalksas may be deemedsuitableto enhancethe quality of life of the residents,
therein;
WHEREAS,such open spaces, roads, alleys and sidewalksin residential
beyondthe commerceof men;
are for publicuseandare,therefore,
subdivision
DecreeNo. 953 at leastthirtypercent(30%)
WHEREAS,pursuantto presidential
of the total area of a subdivisionmust be reserved,developedand maintainedas open
be borneby the
areas,the costof whichwill untimately
spacefor parksand recreational
tot uuy"rt which therebyincreasethe acquisitionprice of subdivisionlots beyondthe
reachof the commonmass;
WHEREAS,thirtypercent(30%)requiredopenspacecanbereducedtoa|eve|
within
that will make the subdivisionindustry'viableand the price of the residentiallots
and
the meansof the low incomegroupand at the same preservethe environmental
of the land use and properdesignof space
ecotogicalbalancethroughrat'r6nal'control
andfacilities;
WHEREAS,pursuanttoPresidentialDecreeNo'757'governmenteffortsin
have been
housing,including,"rori."., functionsand activitiesmaximizeresults
intooneslngleagency,namely'the NationalHousingauthority;
concentrated
Now,THEREFoRE,|,FERDINANDE.MARcos,PresidentofthePhi|ippines'
byvirtueoft'hepowersvestedinmebytheConstitution,doherebyorderanddecree:
"openspace"shall.meanan
SECTION1. For purposesof this Decree'the term
recreationaluses, schools,roads,
parks,ptaygrounds,
area reserved
"r"tr"iuury-i5i
nospitit,heatthcenters,barangaycentersand othersimilarfacilities
;i;;;;;;;nif,
andamenities.
DecreeNo. 957 is herebyamendedto
sEcTloN 2. Section31 of Presidential
readas follows:
- The
31. Roads,Alleys, Sidewalksand Open Spaces'
SECTTON
ownerordeve|operofasubdivisionsha||provideadequateroads,a||eysand
s i d e w a | k s . F o r s u b d i v i s i o n p r o j e c t s o n e ( 1 ) h e c t a r e o r m o r e , t h eopen
ownerormore
shallreservethirtypercentiso%) ot the grossareafor openspace. suchparks,
for
space shall have' the foliowingstandirds allocatedexclusively
use:
and recreational
playgrounds
a.
9% of grossareafor highdensityor socialhousing(66to 100family
lot pergrosshectare).
63
o.
7% of grossareafor medium-density
or economichousing(21 65
family lot pergrosshectare).
3.5% of gross area for low-densityor open markethousing(20
familylotsand belowpergrosshectare).
Theseareasreseryefor parks,playgrounds
and recreational
use shall be nonalienablepubliclands,and non-buildable.
The plansof the subdivision
projectshall
includetree-planting
parts
on such
of the subdivision
as may be designatedby the
Authority.
Upontheircompletion
as certifiedto by the Authority,
the roads,alleys,sidewalks
and playgrounds
shallbe donatedby the owneror developerto the city or municipality
and it shall be mandatoryfor the localgovernments
to acceptprovided,however,thai
the parks and playgroundsmay be donatedto the Homeownersassociationof the
pro.iect
with consentof the city or municipality
concerned.No portionof the parksand
playgrounds
donatedthereafter
shallbe converted
to anyotherpurposeor purposes.
sEcrloN 3. sections2 and s of presidentiarDecreeNo. 953 are hereby
repealedand otherlaws,decrees,executiveorders,institutions
rulesand regulations
or
parts thereof inconsistent with these provisions are also repealed or amended
accordingly.
SECTION4. ThisDecreeshalltakeeffectimmediately.
Done in rhe city of
.
.Manira,this 14tbday of october in the year of our Lord,
nineteenhundredand seventy
seven.
(sGD.)FERDTNAND
E. MARCOS
President
of the philippines
By thePresident:
(scD.)JUANC. TUVERA
Presidential
Assistant
64
HSRGAdministrativeOrderNo. 82-01
Seriesof 1982
DECREENO.
IMPLEMENTING
SEC.3I OF PRESIDENTIAL
RULESANDREGULATIONS
OECREENO.1216
957,AS AMENDEDBY PRESEIDENTIAL
OrderNo.648,thefollowingrulesare
Pursuantto ArticlelV, Sec.5 (c)of Executive
by P.D.No.1216.
promulgated
Sec.31 of P.D.No.957,as amended
to implement
RuleI
GENERALPROVISIONS
shall be knownas the subdivision
Section 1. Title. These Rulesand Regulations
refenedto as the Rules.
of RoadLotsandOpenSpaces,hereinafter
Regulations
on Donations
Section2.9s9p.9-qlAppls4!ip-l'TheseRu|essha||app|yon|ytosubdivisionprojects
dulyregisteredandiorticensedby the HumanSettlementsRegulatoryCommission.
Section3.Dce!erg!i-9l.9fEo]Lc.i-e9'|tisthepo|icyofthegovernmenttocreateand
openSpaces,roads,alleys,
by proViding
rn numanSettlements
maintaina healthyenvironment
therein.
as maybe deemedsuitableto enhancethe qualityof lifeof the residents
andsidewalks
Rulell
OF TERMS
DEFINITION
Section 4. gefinitiol of Terms. For purposesof theseRules:
a)
Commission
- shallmeanthe HumanSettlements
Regulatory
Commission
b)
SubdivisionProject- shall mean a tract
which is partitionedprimarilyfor resident
lhereon,andofferedto the
improvements
ir
commercial,
shallincludeall residential,
public
in the project;
areas
and
spacesandothercommunity
c)'
playgrounds'
Open space - shall mean an area reserved exclusivelyfor parks'
recreationaluses,and othersimilarfacilitiesand amenities'
d)
gutters'
Road lots - shall includeroads,sidewalks,alleysand plantingstrips,and its
drainageand sewerage.
Rulelll
FOR
APPROVALOF APPLICATION
OF COMPLETION
CERTIFICATE
section 5. Application for Gertificate of completion. Every registeredowner or
developerot a subdVisionprolEctwno wishesto donatethe road lots and opensp?ceof the
of Completion
for Certificate
snaltfirstapplywiththe Commission
sameto the localGovernment
the following:
by filingin triplicate
1)
2)
applicationform duly filled up; and
letierof Intentto Donatethe road lots and open spaceio the local Government.
65
Section 6. Procedures. Upon receiptof the application,the Commissionin
coordination
withthe City/Municipality
concerned
shallconductan inspection
of the subdivision.
The inspector(s)shall then prepare his/her findings and/or recommendationto the
Commissioner-in-charge
whowillacton thesame.
Section Z. AppfSyel. lf the facts statedin the applicationfor Certificateof Completion
are foundto be trueand correct,the application
shallbe approvedthroughthe issuanceof the
Certiticate
of Completion
by the Commission.
Thereafter,
the registered
owneror developershallsubmitthe Certificate
of complefron
issuedby the Commission
to the City/Municipality
concernedtogetherwith his/herDeed of
Donation.
RulelV
EFFECTSOF DONATION
OF ROADLOTS/OPEN
SPACE
Section8. Riqht of Graeteeto DonateRoadLots and OpenSDace.Any personwho
is able to securea Certificateof Completionfromthe Commissionsnilt navetne riohtto donate
the road lols and open space to the city/Municipality
concerned,providedtha-tthe parks,
playgroundsand recreational
use may be donatedto the Homeowners
Associationof the
subdivision
withthe consentof the City/Municipality
concerned.
Section 9. -E,f-fectC.
Oncethe registeredowneror developerhas securedthe Certificate
of comp{etion
and hasexecuteda Deedof Donation
of RoadLotsand OpenSpace,he/sheshall
be deemedrelievedof the responsibility
of maintaining
the road lots and open spaceof the
subdivision
notwithstanding
the refusalof City/Municipality
concerned
to acceptthe donation.
should the registeredowneror deveropermerelysecurea certificateof completion
wthout makjng_
the correspondilgdeed of donation,he/sireis still deemedresponsibiefor the
maintenance
of the subdivision
facilities
in whichcasea reasonable
amounlof the performance
bond shall reservedto guaranteethe maintenanceof the road and open
ThL reserved
amount.shall
be totarryrereased
by the commissiononlyuponshowingby"p""".
ihe registereo
owner
or developer
of proofof a deedof donationexecutedin fivor of the city'/Municiparty
concerneo.
qandOpenSpace. Roadlotsandopenspaces
unicipality
or to the Homeowners
Association
as
purposeor purposes.In connection
therewith,
arienabre
rands,
andnobuirdins
orstructure
.r:"'i;Jlfi?fj[nilff"?1"j;t'ir".,3i'1n13n"3
essentialto lhe saidopenspaceas deterrninedby the City/Municipaliiy.
should the owner-donee
wish_to changeor arterthe use of the open space in the
subdivision,
priorpermission
fromthe commission *ritt"n conformity
of the duryorganrzeo
nomeownersassociation,or in the absenceof the ratter
"nJ by the majorityof tne rot
buyersin the
subdivision
shallbe requiredprovided
thatthe requiredopenspaceshalllikewisebe allocatedin
otherareasof the subdivision.
RuleV
MISCELLANEIOUS
PROVISIONS
Section 11. Eqes. Untilsuch time that the Commission
shall have adopted a new
scheduleof fees, it shatt apply and collectthe insfection.fees provided
for under the
implementing
rulesof pD 9S7and its relatedfaws.
66
of theserulesare herebydeclared
Section 12. SeparabilitvClause. The provisions
provisions
nulland void,the validityof all
declared
are
and in the eventany of such
separable,
otherprovisionsshallnot be affectedthereby.
in
afterits publication
Section13. EffeclMy. Theserulesshalltakeeffectimmediately
general
circulation.
of
a newspaper
26 August1982,Makati,MetroManila.
Promulgated,
(sGD.) ERNESTOC. MENOIOLA
and
Commissioner
Officer
ChiefExecutive
(SGD.) JESUSN, BORROMEO
Commissioner
(sGD.) ARTUROC. CORONA
Commissioner
(SGD.) ABNERP. CANLAS
Commissioner
(sGD.) SALVADORP. SOCRATES
Commissioner
(SGD,) RAMONB. CARDENA
Commissioner
(sGD.) GESARO. MARQUEZ
Commissioner
Attested:
(SGD.) EUFEMIOP. DACANAY
ActingCommissionSecretary
o/