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com for PRC Accredited CPD Lecture Page 1/12

PRESIDENTIAL DECREE 957
REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS,
PROVIDING PENALTIES FOR VIOLATIONS THEREOF


WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent human
settlement and to provide them ith ample opportunities for improvin! their quality of life"
WHEREAS, numerous reports reveal that many real estate subdivision oners, developers,
operators, and/or sellers have rene!ed on their representations and obli!ations to provide and maintain
properly subdivision roads, draina!e, seera!e, ater systems, li!htin! systems, and other similar basic
requirements, thus endan!erin! the health and safety of home and lot buyers"
WHEREAS, reports of alarmin! ma!nitude also sho cases of sindlin! and fraudulent
manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators, such as
failure to deliver titles to the buyers or titles free from liens and encumbrances, and to pay real estate
ta#es, and fraudulent sales of the same subdivision lots to different innocent purchasers for value"
WHEREAS, these acts not only undermine the land and housin! pro!ram of the !overnment but
also defeat the ob$ectives of the %e Society, particularly the promotion of peace and order and the
enhancement of the economic, social and moral condition of the &ilipino people"
WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and
condominium businesses be closely supervised and re!ulated, and that penalties be imposed on
fraudulent practices and manipulations committed in connection thereith'
NOW, THEREFORE, I, FERDINAND E. MARCOS, (resident of the (hilippines, by virtue of the
poers vested in me by the )onstitution, do hereby decree and order*

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Title I
TITLE AND DEFINITIONS

Section 1' Title' +his ,ecree shall be -non as +HE S./,010S02% A%, )2%,230%0.3 /.4ERS5 (R2+E)+01E ,E)REE'

Section 2' Definition of Ter!' When used in this ,ecree, the folloin! terms shall, unless the conte#t otherise
indicates, have the folloin! respective meanin!s*

a' (erson' 6Per!on6 shall mean a natural or a $uridical person' A $uridical person refers to a business firm hether a
corporation, partnership, cooperative or associations or a sin!le proprietorship'

b' 7b8 Sale or sell' 6S"le6 or 6!ell6 shall include every disposition, or attempt to dispose, for a valuable
consideration, of a subdivision lot, includin! the buildin! and other improvements thereof, if any, in a
subdivision pro$ect or a condominium unit in a condominium pro$ect' 6Sale6 and 6sell6 shall also include a
contract to sell, a contract of purchase and sale, an e#chan!e, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an a!ent, or by a circular, letter, advertisement or
otherise'

A privile!e !iven to a member of a cooperative, corporation, partnership, or any association and/or the issuance
of a certificate or receipt evidencin! or !ivin! the ri!ht of participation in, or ri!ht to, any land in consideration
of payment of the membership fee or dues, shall be deemed a sale ithin the meanin! of this definition'

c' /uy and purchase' +he 6#$%6 and 6&$r'("!e6 shall include any contract to buy, purchase, or otherise acquire
for a valuable consideration a subdivision lot, includin! the buildin! and other improvements, if any, in a
subdivision pro$ect or a condominium unit in a condominium pro$ect'

d' Subdivision pro$ect' 6S$#)i*i!ion &ro+e't6 shall mean a tract or a parcel of land re!istered under Act %o' 9:;
hich is partitioned primarily for residential purposes into individual lots ith or ithout improvements
thereon, and offered to the public for sale, in cash or in installment terms' 0t shall include all residential,
commercial, industrial and recreational areas as ell as open spaces and other community and public areas in
the pro$ect'

e' Subdivision lot' 6S$#)i*i!ion lot6 shall mean any of the lots, hether residential, commercial, industrial, or
recreational, in a subdivision pro$ect'

f' )omple# subdivision plan' 6Co&le, !$#)i*i!ion &l"n6 shall mean a subdivision plan of a re!istered land
herein a street, passa!eay or open space is delineated on the plan'

!' )ondominium pro$ect' 6Con)oini$ &ro+e't6 shall mean the entire parcel of real property divided or to be
divided primarily for residential purposes into condominium units, includin! all structures thereon'

h' )ondominium unit' 6Con)oini$ $nit6 shall mean a part of the condominium pro$ect intended for any type of
independent use or onership, includin! one or more rooms or spaces located in one or more floors 7or part of
parts of floors8 in a buildin! or buildin!s and such accessories as may be appended thereto'

i' 2ner' 62ner6 shall refer to the re!istered oner of the land sub$ect of a subdivision or a condominium
pro$ect'
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$' ,eveloper' 6De*elo&er6 shall mean the person ho develops or improves the subdivision pro$ect or
condominium pro$ect for and in behalf of the oner thereof'

-' ,ealer' 6De"ler6 shall mean any person directly en!a!ed as principal in the business of buyin!, sellin! or
e#chan!in! real estate hether on a full<time or part<time basis'

l' /ro-er' 6Bro-er6 shall mean any person ho, for commission or other compensation, underta-es to sell or
ne!otiate the sale of a real estate belon!in! to another'

m' Salesman' 6S"le!"n6 shall refer to the person re!ularly employed by a bro-er to perform, for and in his behalf,
any or all functions of a real estate bro-er'

n' Authority' 6A$t(orit%6 shall mean the %ational Housin! Authority'


Title II
REGISTRATION AND LICENSE TO SELL

Section =' N"tion"l Ho$!in. A$t(orit%' +he %ational Housin! Authority shall have e#clusive $urisdiction to re!ulate the
real estate trade and business in accordance ith the provisions of this ,ecree'

Section 9' Re.i!tr"tion of Pro+e't!' +he re!istered oner of a parcel of land ho ishes to convert the same into a
subdivision pro$ect shall submit his subdivision plan to the Authority hich shall act upon and approve the same, upon a
findin! that the plan complies ith the Subdivision Standards5 and Re!ulations enforceable at the time the plan is
submitted' +he same procedure shall be folloed in the case of a plan for a condominium pro$ect e#cept that, in
addition, said Authority shall act upon and approve the plan ith respect to the buildin! or buildin!s included in the
condominium pro$ect in accordance ith the %ational /uildin! )ode 7R'A' %o' ;>918'

+he subdivision plan, as so approved, shall then be submitted to the ,irector of ?ands for approval in accordance ith
the procedure prescribed in Section 99 of the ?and Re!istration Act 7Act %o' 9:;, as amended by R'A' %o' 99@8*
(rovided, that it case of comple# subdivision plans, court approval shall no lon!er be required' +he condominium plan as
li-eise so approved, shall be submitted to the Re!ister of ,eeds of the province or city in hich the property lies and
the same shall be acted upon sub$ect to the conditions and in accordance ith the procedure prescribed in Section 9 of
the )ondominium Act 7R'A' %o' 9A2;8'

+he oner or the real estate dealer interested in the sale of lots or units, respectively, in such subdivision pro$ect or
condominium pro$ect shall re!ister the pro$ect ith the Authority by filin! thereith a sorn re!istration statement
containin! the folloin! information*

7a8 %ame of the oner"

7b8 +he location of the oner5s principal business office, and if the oner is a non<resident &ilipino, the name and
address of his a!ent or representative in the (hilippines is authoriBed to receive notice"

7c8 +he names and addresses of all the directors and officers of the business firm, if the oner be a corporation,
association, trust, or other entity, and of all the partners, if it be a partnership"
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7d8 +he !eneral character of the business actually transacted or to be transacted by the oner" and

7e8 A statement of the capitaliBation of the oner, includin! the authoriBed and outstandin! amounts of its capital
stoc- and the proportion thereof hich is paid<up'

+he folloin! documents shall be attached to the re!istration statement*

7a8 A copy of the subdivision plan or condominium plan as approved in accordance ith the first and second
para!raphs of this section'

7b8 A copy of any circular, prospectus, brochure, advertisement, letter, or communication to be used for the public
offerin! of the subdivision lots or condominium units"

7c8 0n case of a business firm, a balance sheet shoin! the amount and !eneral character of its assets and liabilities
and a copy of its articles of incorporation or articles of partnership or association, as the case may be, ith all
the amendments thereof and e#istin! by<las or instruments correspondin! thereto'

7d8 A title to the property hich is free from all liens and encumbrances* (rovided, hoever, that in case any
subdivision lot or condominium unit is mort!a!ed, it is sufficient if the instrument of mort!a!e contains a
stipulation that the mort!a!ee shall release the mort!a!e on any subdivision lot or condominium unit as soon as
the full purchase price for the same is paid by the buyer'

+he person filin! the re!istration statement shall pay the re!istration fees prescribed therefor by the Authority'

+hereupon, the Authority shall immediately cause to be published a notice of the filin! of the re!istration statement at
the e#pense of the applicant<oner or dealer, in to nespapers !eneral circulation, one published in En!lish and
another in (ilipino, once a ee- for to consecutive ee-s, recitin! that a re!istration statement for the sale of
subdivision lots or condominium units has been filed in the %ational Housin! Authority" that the aforesaid re!istration
statement, as ell as the papers attached thereto, are open to inspection durin! business hours by interested parties,
under such re!ulations as the Authority may impose" and that copies thereof shall be furnished to any party upon
payment of the proper fees'

+he subdivision pro$ect of the condominium pro$ect shall be deemed re!istered upon completion of the above
publication requirement' +he fact of such re!istration shall be evidenced by a re!istration certificate to be issued to the
applicant<oner or dealer'

Section >' Li'en!e to !ell' Such oner or dealer to hom has been issued a re!istration certificate shall not, hoever, be
authoriBed to sell any subdivision lot or condominium unit in the re!istered pro$ect unless he shall have first obtained a
license to sell the pro$ect ithin to ee-s from the re!istration of such pro$ect'

+he Authority, upon proper application therefor, shall issue to such oner or dealer of a re!istered pro$ect a license to
sell the pro$ect if, after an e#amination of the re!istration statement filed by said oner or dealer and all the pertinent
documents attached thereto, he is convinced that the oner or dealer is of !ood repute, that his business is financially
stable, and that the proposed sale of the subdivision lots or condominium units to the public ould not be fraudulent'


Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 5/12

Section ;' Perfor"n'e Bon)' %o license to sell subdivision lots or condominium units shall be issued by the Authority
under Section > of this ,ecree unless the oner or dealer shall have filed an adequate performance bond approved by
said Authority to !uarantee the construction and maintenance of the roads, !utters, draina!e, seera!e, ater system,
li!htin! systems, and full development of the subdivision pro$ect or the condominium pro$ect and the compliance by the
oner or dealer ith the applicable las and rules and re!ulations'

+he performance bond shall be e#ecuted in favor of the Republic of the (hilippines and shall authoriBe the Authority to
use the proceeds thereof for the purposes of its underta-in! in case of forfeiture as provided in this ,ecree'

Section A' E,e&t tr"n!"'tion!' A license to sell and performance bond shall not be required in any of the folloin!
transactions*

7a8 Sale of a subdivision lot resultin! from the partition of land amon! co<oners and co<heirs'

7b8 Sale or transfer of a subdivision lot by the ori!inal purchaser thereof and any subsequent sale of the same lot'

7c8 Sale of a subdivision lot or a condominium unit by or for the account of a mort!a!ee in the ordinary course of
business hen necessary to liquidate a bona fide debt'

Section C' S$!&en!ion of li'en!e to !ell' .pon verified complaint by a buyer of a subdivision lot or a condominium unit in
any interested party, the Authority may, in its discretion, immediately suspend the oner5s or dealer5s license to sell
pendin! investi!ation and hearin! of the case as provided in Section 1= hereof'

+he Authority may motu proprio suspend the license to sell if, in its opinion, any information in the re!istration
statement filed by the oner or dealer is or has become misleadin!, incorrect, inadequate or incomplete or the sale or
offerin! for a sale of the subdivision or condominium pro$ect may or- or tend to or- a fraud upon prospective
buyers'

+he suspension order may be lifted if, after notice and hearin!, the Authority is convinced that the re!istration
statement is accurate or that any deficiency therein has been corrected or supplemented or that the sale to the public of
the subdivision or condominium pro$ect ill neither be fraudulent not result in fraud' 0t shall also be lifted upon
dismissal of the complaint for lac- of le!al basis'

.ntil the final entry of an order of suspension, the suspension of the ri!ht to sell the pro$ect, thou!h bindin! upon all
persons notified thereof, shall be deemed confidential unless it shall appear that the order of suspension has in the
meantime been violated'










Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 6/12
Section :' Re*o'"tion of re.i!tr"tion 'ertifi'"te "n) li'en!e to !ell' +he Authority may, motu proprio or upon verified
complaint filed by a buyer of a subdivision lot or condominium unit, revo-e the re!istration of any subdivision pro$ect or
condominium pro$ect and the license to sell any subdivision lot or condominium unit in said pro$ect by issuin! an order
to this effect, ith his findin!s in respect thereto, if upon e#amination into the affairs of the oner or dealer durin! a
hearin! as provided for in Section 19 hereof, if shall appear there is satisfactory evidence that the said oner or dealer*

7a8 0s insolvent" or

7b8 has violated any of the provisions of this ,ecree or any applicable rule or re!ulation of the Authority, or any
underta-in! of his/its performance bond" or

7c8 Has been or is en!a!ed or is about to en!a!e in fraudulent transactions" or

7d8 Has made any misrepresentation in any prospectus, brochure, circular or other literature about the subdivision
pro$ect or condominium pro$ect that has been distributed to prospective buyers" or

7e8 0s of bad business repute" or

7f8 ,oes not conduct his business in accordance ith la or sound business principles'

Where the oner or dealer is a partnership or corporation or an unincorporated association, it shall be sufficient cause
for cancellation of its re!istration certificate and its license to sell, if any member of such partnership or any officer or
director of such corporation or association has been !uilty of any act or omission hich ould be cause for refusin! or
revo-in! the re!istration of an individual dealer, bro-er or salesman as provided in Section 11 hereof'

Section 1@' Re.i!ter! of !$#)i*i!ion lot! "n) 'on)oini$ $nit!' A record of subdivision lots and condominium units
shall be -ept in the Authority herein shall be entered all orders of the Authority affectin! the condition or status
thereof' +he re!isters of subdivision lots and condominium units shall be open to public inspection sub$ect to such
reasonable rules as the Authority may prescribe'


Title III
DEALERS, BRO/ERS AND SALESMEN

Section 11' Re.i!tr"tion of )e"ler!, #ro-er! "n) !"le!en' %o real estate dealer, bro-er or salesman shall en!a!e in the
business of sellin! subdivision lots or condominium units unless he has re!istered himself ith the Authority in
accordance ith the provisions of this section'

0f the Authority shall find that the applicant is of !ood repute and has complied ith the applicable rules of the
Authority, includin! the payment of the prescribed fee, he shall re!ister such applicant as a dealer, bro-er or salesman
upon filin! a bond, or other security in lieu thereof, in such sum as may be fi#ed by the Authority conditioned upon his
faithful compliance ith the provisions of this ,ecree* (rovided, that the re!istration of a salesman shall cease upon the
termination of his employment ith a dealer or bro-er'



Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 7/12
Every re!istration under this section shall e#pire on the thirty<first day of ,ecember of each year' Reneal of
re!istration for the succeedin! year shall be !ranted upon ritten application therefor made not less than thirty nor
more than si#ty days before the first day of the ensuin! year and upon payment of the prescribed fee, ithout the
necessity of filin! further statements or information, unless specifically required by the Authority' All applications filed
beyond said period shall be treated as ori!inal applications'

+he names and addresses of all persons re!istered as dealers, bro-ers, or salesmen shall be recorded in a Re!ister of
/ro-ers, ,ealers and Salesmen -ept in the Authority hich shall be open to public inspection'

Section 12' Re*o'"tion of re.i!tr"tion "! )e"ler!, #ro-er! or !"le!en' Re!istration under the precedin! section may be
refused or any re!istration !ranted thereunder, revo-ed by the Authority if, after reasonable notice and hearin!, it shall
determine that such applicant or re!istrant*

1' Has violated any provision of this ,ecree or any rule or re!ulation made hereunder" or

2' Has made a material false statement in his application for re!istration" or

=' Has been !uilty of a fraudulent act in connection ith any sale of a subdivision lot or condominium unit"
or

9' Has demonstrated his unorthiness to transact the business of dealer, bro-er, or salesman, as the case
may be'

0n case of char!es a!ainst a salesman, notice thereof shall also be !iven the bro-er or dealer employin! such salesman'

(endin! hearin! of the case, the Authority shall have the poer to order the suspension of the dealer5s, bro-er5s, of
salesman5s re!istration" provided, that such order shall state the cause for the suspension'

+he suspension or revocation of the re!istration of a dealer or bro-er shall carry ith it all the suspension or revocation
of the re!istrations of all his salesmen'


Title IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE

Section 1=' He"rin.' 0n the hearin! for determinin! the e#istence of any !round or !rounds for the suspension and/or
revocation of re!istration certificate and license to sell as provided in Section C and : hereof, the folloin! shall be
complied ith*

7a8 %otice' %o such hearin! shall proceed unless the respondent is furnished ith a copy of the complaint a!ainst
him or is notified in ritin! of the purpose of such hearin!'

7b8 1enue' +he hearin! may be held before the officer or officers desi!nated by the Authority on the date and place
specified in the notice'

Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 8/12
7c8 %ature of proceedin!' +he proceedin!s shall be non<liti!ious and summary in nature ithout re!ard to le!al
technicalities obtainin! in courts of la' +he Rules of court shall not apply in said hearin! e#cept by analo!y or in
a suppletory character and henever practicable and convenient'

7d8 (oer incidental to the hearin!' &or the purpose of the hearin! or other proceedin! under this ,ecree, the
officer or officers desi!nated to hear the complaint shall have the poer to administer oaths, subpoena
itnesses, conduct ocular inspections, ta-e depositions, and require the production of any boo-, paper,
correspondence, memorandum, or other record hich are deemed relevant or material to the inquiry'

Section 19' Conte&t'

7a8 ,irect contempt' +he officer or officers desi!nated by the Authority to hear the complaint may summarily
ad$ud!e in direct contempt any person !uilty of misbehavior in the presence of or so near the said hearin!
officials as to obstruct or interrupt the proceedin!s before the same or of refusal to be sorn or to anser as a
itness or to subscribe an affidavit or deposition hen lafully required to do so' +he person found !uilty of
direct contempt under this section shall be punished by a fine not e#ceedin! &ifty 7(>@'@@8 (esos or
imprisonment not e#ceedin! five 7>8 days, or both'

7b8 0ndirect contempt' +he officer or officers desi!nated to hear the complaint may also ad$ud!e any person in
indirect contempt on !rounds and in the manner prescribed in Rule A1 of the Revised Rules of )ourt'

Section 1>' De'i!ion' +he case shall be decided ithin thirty 7=@8 days from the time the same is submitted for decision'
+he ,ecision may order the revocation of the re!istration of the subdivision or condominium pro$ect, the suspension,
cancellation, or revocation of the license to sell and/or forfeiture, in hole or in part, of the performance bond
mentioned in Section ; hereof' 0n case forfeiture of the bond is ordered, the ,ecision may direct the provincial or city
en!ineer to underta-e or cause the construction of roads and of other requirements for the subdivision or condominium
as stipulated in the bond, char!eable to the amount forfeited' Such decision shall be immediately e#ecutory and shall
become final after the lapse of 1> days from the date of receipt of the ,ecision'

Section 1;' Ce"!e "n) De!i!t Or)er' Whenever it shall appear to the Authority that any person is en!a!ed or about to
en!a!e in any act or practice hich constitutes or ill constitute a violation of the provisions of this ,ecree, or of any
rule or re!ulation thereunder, it may, upon due notice and hearin! as provided in Section 1= hereof, issue a cease and
desist order to en$oin such act or practices'

Section 1A' Re.i!tr"tion' All contracts to sell, deeds of sale and other similar instruments relative to the sale or
conveyance of the subdivision lots and condominium units, hether or not the purchase price is paid in full, shall be
re!istered by the seller in the 2ffice of the Re!ister of ,eeds of the province or city here the property is situated'

Whenever a subdivision plan duly approved in accordance ith Section 9 hereof, to!ether ith the correspondin!
oner5s duplicate certificate of title, is presented to the Re!ister of ,eeds for re!istration, the Re!ister of ,eeds shall
re!ister the same in accordance ith the provisions of the ?and Re!istration Act, as amended* (rovided, hoever, that it
there is a street, passa!eay or required open space delineated on a comple# subdivision plan hereafter approved and
as defined in this ,ecree, the Re!ister of ,eeds shall annotate on the ne certificate of title coverin! the street,
passa!eay or open space, a memorandum to the effect that e#cept by ay of donation in favor of a city or
municipality, no portion of any street, passa!eay, or open space so delineated on the plan shall be closed or otherise
disposed of by the re!istered oner ithout the requisite approval as provided under Section 22 of this ,ecree'

Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 9/12
Section 1C' Mort.".e!' %o mort!a!e on any unit or lot shall be made by the oner or developer ithout prior ritten
approval of the Authority' Such approval shall not be !ranted unless it is shon that the proceeds of the mort!a!e loan
shall be used for the development of the condominium or subdivision pro$ect and effective measures have been
provided to ensure such utiliBation' +he loan value of each lot or unit covered by the mort!a!e shall be determined and
the buyer thereof, if any, shall be notified before the release of the loan' +he buyer may, at his option, pay his
installment for the lot or unit directly to the mort!a!ee ho shall apply the payments to the correspondin! mort!a!e
indebtedness secured by the particular lot or unit bein! paid for, ith a vie to enablin! said buyer to obtain title over
the lot or unit promptly after full payment thereto"

Section 1:' A)*erti!eent!' Advertisements that may be made by the oner or developer throu!h nespaper, radio,
television, leaflets, circulars or any other form about the subdivision or the condominium or its operations or activities
must reflect the real facts and must be presented in such manner that ill not tend to mislead or deceive the public'

+he oner or developer shall anserable and liable for the facilities, improvements, infrastructures or other forms of
development represented or promised in brochures, advertisements and other sales propa!anda disseminated by the
oner or developer or his a!ents and the same shall form part of the sales arranties enforceable a!ainst said oner or
developer, $ointly and severally' &ailure to comply ith these arranties shall also be punishable in accordance ith the
penalties provided for in this ,ecree'

Section 2@' Tie of Co&letion' Every oner or developer shall construct and provide the facilities, improvements,
infrastructures and other forms of development, includin! ater supply and li!htin! facilities, hich are offered and
indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters, letters or in any
form of advertisement, ithin one year from the date of the issuance of the license for the subdivision or condominium
pro$ect or such other period of time as may be fi#ed by the Authority'

Section 21' S"le! Prior to De'ree' 0n cases of subdivision lots or condominium units sold or disposed of prior to the
effectivity of this ,ecree, it shall be incumbent upon the oner or developer of the subdivision or condominium pro$ect
to complete compliance ith his or its obli!ations as provided in the precedin! section ithin to years from the date of
this ,ecree unless otherise e#tended by the Authority or unless an adequate performance bond is filed in accordance
ith Section ; hereof'

&ailure of the oner or developer to comply ith the obli!ations under this and the precedin! provisions shall constitute
a violation punishable under Sections =C and =: of this ,ecree'

Section 22' Alter"tion of Pl"n!' %o oner or developer shall chan!e or alter the roads, open spaces, infrastructures,
facilities for public use and/or other form of subdivision development as contained in the approved subdivision plan
and/or represented in its advertisements, ithout the permission of the Authority and the ritten conformity or
consent of the duly or!aniBed homeoners association, or in the absence of the latter, by the ma$ority of the lot buyers
in the subdivision'

Section 2=' Non0Forfeit$re of P"%ent!' %o installment payment made by a buyer in a subdivision or condominium
pro$ect for the lot or unit he contracted to buy shall be forfeited in favor of the oner or developer hen the buyer,
after due notice to the oner or developer, desists from further payment due to the failure of the oner or developer
to develop the subdivision or condominium pro$ect accordin! to the approved plans and ithin the time limit for
complyin! ith the same' Such buyer may, at his option, be reimbursed the total amount paid includin! amortiBation
interests but e#cludin! delinquency interests, ith interest thereon at the le!al rate'

Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 10/12
Section 29' F"il$re to &"% in!t"llent!' +he ri!hts of the buyer in the event of this failure to pay the installments due for
reasons other than the failure of the oner or developer to develop the pro$ect shall be !overned by Republic Act %o'
;>>2'

Where the transaction or contract as entered into prior to the effectivity of Republic Act %o' ;>>2 on Au!ust 2;, 1:A2,
the defaultin! buyer shall be entitled to the correspondin! refund based on the installments paid after the effectivity of
the la in the absence of any provision in the contract to the contrary'

Section 2>' I!!$"n'e of Title' +he oner or developer shall deliver the title of the lot or unit to the buyer upon full
payment of the lot or unit' %o fee, e#cept those required for the re!istration of the deed of sale in the Re!istry of ,eeds,
shall be collected for the issuance of such title' 0n the event a mort!a!e over the lot or unit is outstandin! at the time of
the issuance of the title to the buyer, the oner or developer shall redeem the mort!a!e or the correspondin! portion
thereof ithin si# months from such issuance in order that the title over any fully paid lot or unit may be secured and
delivered to the buyer in accordance hereith'

Section 2;' Re"lt% T",' Real estate ta# and assessment on a lot or unit shall de paid by the oner or developer ithout
recourse to the buyer for as lon! as the title has not passed the buyer" (rovided, hoever, that if the buyer has actually
ta-en possession of and occupied the lot or unit, he shall be liable to the oner or developer for such ta# and
assessment effective the year folloin! such ta-in! of possession and occupancy'

Section 2A' Ot(er C("r.e!' %o oner or developer shall levy upon any lot or buyer a fee for an alle!ed community
benefit' &ees to finance services for common comfort, security and sanitation may be collected only by a properly
or!aniBed homeoners association and only ith the consent of a ma$ority of the lot or unit buyers actually residin! in
the subdivision or condominium pro$ect'

Section 2C' A''e!! to P$#li' Offi'e! in t(e S$#)i*i!ion!' %o oner or developer shall deny any person free access to any
!overnment office or public establishment located ithin the subdivision or hich may be reached only by passin!
throu!h the subdivision'

Section 2:' Ri.(t of W"% to P$#li' Ro")' +he oner or developer of a subdivision ithout access to any e#istin! public
road or street must secure a ri!ht of ay to a public road or street and such ri!ht of ay must be developed and
maintained accordin! to the requirement of the !overnment and authorities concerned'

Section =@' Or."ni1"tion of Hoeo2ner! A!!o'i"tion' +he oner or developer of a subdivision pro$ect or condominium
pro$ect shall initiate the or!aniBation of a homeoners association amon! the buyers and residents of the pro$ects for
the purpose of promotin! and protectin! their mutual interest and assist in their community development'

Section =1' Don"tion! of ro")! "n) o&en !&"'e! to lo'"l .o*ernent' +he re!istered oner or developer of the
subdivision or condominium pro$ect, upon completion of the development of said pro$ect may, at his option, convey by
ay of donation the roads and open spaces found ithin the pro$ect to the city or municipality herein the pro$ect is
located' .pon acceptance of the donation by the city or municipality concerned, no portion of the area donated shall
thereafter be converted to any other purpose or purposes unless after hearin!, the proposed conversion is approved by
the Authority'

Section =2' P("!e! of S$#)i*i!ion' &or purposes of complyin! ith the provisions of this ,ecree, the oner or developer
may divide the development and sale of the subdivision into phases, each phase to cover not less than ten hectares' +he
requirement imposed by this ,ecree on the subdivision as a hole shall be deemed imposed on each phase'
Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 11/12

Section ==' N$llit% of 2"i*er!' Any condition, stipulation, or provision in contract of sale hereby any person aives
compliance ith any provision of this ,ecree or of any rule or re!ulation issued thereunder shall be void'

Section =9' Vi!itori"l &o2er!' +his Authority, throu!h its duly authoriBed representative may, at any time, ma-e an
e#amination into the business affairs, administration, and condition of any person, corporation, partnership,
cooperative, or association en!a!ed in the business of sellin! subdivision lots and condominium units' &or this purpose,
the official authoriBed so to do shall have the authority to e#amine under oath the directors, officers, stoc-holders or
members of any corporation, partnership, association, cooperative or other persons associated or connected ith the
business and to issue subpoena or subpoena duces tecum in relation to any investi!ation that may arise therefrom'

+he Authority may also authoriBe the (rovincial, )ity or 3unicipal En!ineer, as the case may be, to conduct an ocular
inspection of the pro$ect to determine hether the development of said pro$ect conforms to the standards and
specifications prescribed by the !overnment'

+he boo-s, papers, letters, and other documents belon!in! to the person or entities herein mentioned shall be open to
inspection by the Authority or its duly authoriBed representative'

Section =>' T"-e0o*er De*elo&ent' +he Authority, may ta-e over or cause the development and completion of the
subdivision or condominium pro$ect at the e#penses of the oner or developer, $ointly and severally, in cases here the
oner or developer has refused or failed to develop or complete the development of the pro$ect as provided for in this
,ecree'

+he Authority may, after such ta-e<over, demand, collect and receive from the buyers the installment payments due on
the lots, hich shall be utiliBed for the development of the subdivision'

Section =;' R$le! "n) Re.$l"tion!' +he Authority shall issue the necessary standards, rules and re!ulations for the
effective implementation of the provisions of this ,ecree' Such standards, rules and re!ulations shall ta-e effect
immediately after their publication three times a ee- for to consecutive ee-s in any nespaper of !eneral
circulation'

Section =A' De&$ti1"tion of l"2 enfor'eent ".en'ie!' +he Authority may deputiBe the (hilippine )onstabulary or any
la enforcement a!ency in the e#ecution of its final orders, rulin!s or decisions'

Section =C' A)ini!tr"ti*e Fine!' +he Authority may prescribe and impose fines not e#ceedin! ten thousand pesos for
violations of the provisions of this ,ecree or of any rule or re!ulation thereunder' &ines shall be payable to the Authority
and enforceable throu!h rits of e#ecution in accordance ith the provisions of the Rules of )ourt'

Section =:' Pen"ltie!' Any person ho shall violate any of the provisions of this ,ecree and/or any rule or re!ulation
that may be issued pursuant to this ,ecree shall, upon conviction, be punished by a fine of not more than tenty
thousand 7(2@,@@@'@@8 pesos and/or imprisonment of not more than ten years* (rovided, +hat in the case of
corporations, partnership, cooperatives, or associations, the (resident, 3ana!er or Administrator or the person ho has
char!e of the administration of the business shall be criminally responsible for any violation of this ,ecree and/or the
rules and re!ulations promul!ated pursuant thereto'


Copy provided by Broker Rem Ramirez 0922.883.9308 remramirez@yahooo.com for PRC Accredited CPD Lecture Page 12/12
Section 9@' Li"#ilit% of 'ontrollin. &er!on!' Every person ho directly or indirectly controls any person liable under any
provision of this ,ecree or of any rule or re!ulation issued thereunder shall be liable $ointly and severally ith and to the
same e#tent as such controlled person unless the controllin! person acted in !ood faith and did not directly or indirectly
induce the act or acts constitutin! the violation or cause of action'

Section 91' Ot(er ree)ie!' +he ri!hts and remedies provided in this ,ecree shall be in addition to any and all other
ri!hts and remedies that may be available under e#istin! las'

Section 92' Re&e"lin. 'l"$!e' All las, e#ecutive orders, rules and re!ulations or part thereof inconsistent ith the
provisions of this ,ecree are hereby repealed or modified accordin!ly'

Section 9=' Effe'ti*it%' +his ,ecree shall ta-e effect upon its approval'

,one in the )ity of 3anila, this 12th day of Duly, in the year of 2ur ?ord, nineteen hundred and seventy<si#'

















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