pd 957 subdivision law

8/11/2019 PD 957 Subdivision Law

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PRESIDENTIAL DECREE NO. 957

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

July 12, 1976

WHEREAS, it is the policy of the State to afford its inhabitants the reuire!ents of

decent hu!an settle!ent and to pro"ide the! #ith a!ple opportunities for i!pro"in$their uality of life%

WHEREAS, nu!erous reports re"eal that !any real estate subdi"ision o#ners,

de"elopers, operators, and&or sellers ha"e rene$ed on their representations and obli$ations

to pro"ide and !aintain properly subdi"ision roads, draina$e, se#era$e, #ater syste!s,

li$htin$ syste!s, and other si!ilar basic reuire!ents, thus endan$erin$ the health andsafety of ho!e and lot buyers%

WHEREAS, reports of alar!in$ !a$nitude also sho# cases of s#indlin$ and

fraudulent !anipulations perpetrated by unscrupulous subdi"ision and condo!iniu!sellers and operators, such as failure to deli"er titles to the buyers or titles free fro! liens

and encu!brances, and to pay real estate ta'es, and fraudulent sales of the sa!e

subdi"ision lots to different innocent purchasers for "alue%

WHEREAS, these acts not only under!ine the land and housin$ pro$ra! of the

$o"ern!ent but also defeat the ob(ecti"es of the )e# Society, particularly the pro!otion

of peace and order and the enhance!ent of the econo!ic, social and !oral condition ofthe *ilipino people%

WHEREAS, this state of affairs has rendered it i!perati"e that the real estate

subdi"ision and condo!iniu! businesses be closely super"ised and re$ulated, and that

penalties be i!posed on fraudulent practices and !anipulations co!!itted in connection

there#ith+

)W, -HERE*RE, ., *ER/.)A)/ E+ 0ARS, resident of the hilippines, by

"irtue of the po#ers "ested in !e by the onstitution, do hereby decree and order3

-itle .

-.-4E A)/ /E*.).-.)S

Sec+ 1+ -itle 5 -his /ecree shall be no#n as -HE S8/..S.) A)/)/0.).0 8:ERS; R-E-.E /EREE+

Sec+ 2+ /efinition of -er!s 5 When used in this /ecree, the follo#in$ ter!s shall,


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unless the conte't other#ise indicates, ha"e the follo#in$ respecti"e !eanin$s3

a< erson+ 5 =erson= shall !ean a natural or a (uridical person+ A (uridical person

refers to a business fir! #hether a corporation, partnership, cooperati"e or associations

or a sin$le proprietorship+

b< Sale or sell+ 5 =Sale= or =sell= shall include e"ery disposition, or atte!pt to dispose,

for a "aluable consideration, of a subdi"ision lot, includin$ the buildin$ and other

i!pro"e!ents thereof, if any, in a subdi"ision pro(ect or a condo!iniu! unit in a

condo!iniu! pro(ect+ =Sale= and =sell= shall also include a contract to sell, a contract ofpurchase and sale, an e'chan$e, an atte!pt 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,

ad"ertise!ent or other#ise+

A pri"ile$e $i"en to a !e!ber of a cooperati"e, corporation, partnership, or any

association and&or the issuance of a certificate or receipt e"idencin$ or $i"in$ the ri$ht ofparticipation in, or ri$ht to, any land in consideration of pay!ent of the !e!bership fee

or dues, shall be dee!ed a sale #ithin the !eanin$ of this definition+

c< 8uy and purchase+ 5 -he =buy= and =purchase= shall include any contract to buy,

purchase, or other#ise acuire for a "aluable consideration a subdi"ision lot, includin$

the buildin$ and other i!pro"e!ents, if any, in a subdi"ision pro(ect or a condo!iniu!

unit in a condo!iniu! pro(ect+

d< Subdi"ision pro(ect+ 5 =Subdi"ision pro(ect= shall !ean a tract or a parcel of land

re$istered under Act )o+ >96 #hich is partitioned pri!arily for residential purposes into

indi"idual lots #ith or #ithout i!pro"e!ents thereon, and offered to the public for sale,in cash or in install!ent ter!s+ .t shall include all residential, co!!ercial, industrial andrecreational areas as #ell as open spaces and other co!!unity and public areas in the

pro(ect+

e< Subdi"ision lot+ 5 =Subdi"ision lot= shall !ean any of the lots, #hether residential,co!!ercial, industrial, or recreational, in a subdi"ision pro(ect+

f< o!ple' subdi"ision plan+ 5 =o!ple' subdi"ision plan= shall !ean a subdi"ision

plan of a re$istered land #herein a street, passa$e#ay or open space is delineated on the

plan+

$< ondo!iniu! pro(ect+ 5 =ondo!iniu! pro(ect= shall !ean the entire parcel of realproperty di"ided or to be di"ided pri!arily for residential purposes into condo!iniu!

units, includin$ all structures thereon+

h< ondo!iniu! unit+ 5 =ondo!iniu! unit= shall !ean a part of the condo!iniu!

pro(ect intended for any type of independent use or o#nership, includin$ one or !oreroo!s or spaces located in one or !ore floors ?or part of parts of floors< in a buildin$ or


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buildin$s and such accessories as !ay be appended thereto+

i< #ner+ 5 =#ner= shall refer to the re$istered o#ner of the land sub(ect of a

subdi"ision or a condo!iniu! pro(ect+

(< /e"eloper+ 5 =/e"eloper= shall !ean the person #ho de"elops or i!pro"es thesubdi"ision pro(ect or condo!iniu! pro(ect for and in behalf of the o#ner thereof+

< /ealer+ 5 =/ealer= shall !ean any person directly en$a$ed as principal in the

business of buyin$, sellin$ or e'chan$in$ real estate #hether on a full5ti!e or part5ti!e

basis+

l< 8roer+ 5 =8roer= shall !ean any person #ho, for co!!ission or otherco!pensation, undertaes to sell or ne$otiate the sale of a real estate belon$in$ to

another+

!< Sales!an+ 5 =Sales!an= shall refer to the person re$ularly e!ployed by a broer to

perfor!, for and in his behalf, any or all functions of a real estate broer+

n< Authority+ 5 =Authority= shall !ean the )ational Housin$ Authority+

-itle ..

[email protected].) A)/ 4.E)SE - SE44

Sec+ + )ational Housin$ Authority 5 -he )ational Housin$ Authority shall ha"e

e'clusi"e (urisdiction to re$ulate the real estate trade and business in accordance #ith thepro"isions of this /ecree+

Sec+ >+ Re$istration of ro(ects 5 -he re$istered o#ner of a parcel of land #ho #ishesto con"ert the sa!e into a subdi"ision pro(ect shall sub!it his subdi"ision plan to the

Authority #hich shall act upon and appro"e the sa!e, upon a findin$ that the plan

co!plies #ith the Subdi"ision Standards and Re$ulations enforceable at the ti!e the plan

is sub!itted+ -he sa!e procedure shall be follo#ed in the case of a plan for acondo!iniu! pro(ect e'cept that, in addition, said Authority shall act upon and appro"e

the plan #ith respect to the buildin$ or buildin$s included in the condo!iniu! pro(ect in

accordance #ith the )ational 8uildin$ ode ?R+A+ )o+ 6B>1


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ondo!iniu! Act ?R+A+ )o+ >726


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pay!ent of the proper fees+

-he subdi"ision pro(ect of the condo!iniu! pro(ect shall be dee!ed re$istered upon

co!pletion of the abo"e publication reuire!ent+ -he fact of such re$istration shall be

e"idenced by a re$istration certificate to be issued to the applicant5o#ner or dealer+

Sec+ B+ 4icense to sell+ 5 Such o#ner or dealer to #ho! has been issued a re$istration

certificate shall not, ho#e"er, be authoriDed to sell any subdi"ision lot or condo!iniu!

unit in the re$istered pro(ect unless he shall ha"e first obtained a license to sell the pro(ect

#ithin t#o #ees fro! the re$istration of such pro(ect+

-he Authority, upon proper application therefor, shall issue to such o#ner or dealer of a

re$istered pro(ect a license to sell the pro(ect if, after an e'a!ination of the re$istration

state!ent filed by said o#ner or dealer and all the pertinent docu!ents attached thereto,

he is con"inced that the o#ner or dealer is of $ood repute, that his business is financially

stable, and that the proposed sale of the subdi"ision lots or condo!iniu! units to thepublic #ould not be fraudulent+

Sec+ 6+ erfor!ance 8ond+ 5 )o license to sell subdi"ision lots or condo!iniu! unitsshall be issued by the Authority under Section B of this /ecree unless the o#ner or dealer

shall ha"e filed an adeuate perfor!ance bond appro"ed by said Authority to $uarantee

the construction and !aintenance of the roads, $utters, draina$e, se#era$e, #ater syste!,

li$htin$ syste!s, and full de"elop!ent of the subdi"ision pro(ect or the condo!iniu!pro(ect and the co!pliance by the o#ner or dealer #ith the applicable la#s and rules and

re$ulations+

-he perfor!ance bond shall be e'ecuted in fa"or of the Republic of the hilippinesand shall authoriDe the Authority to use the proceeds thereof for the purposes of itsundertain$ in case of forfeiture as pro"ided in this /ecree+

Sec+ 7+ E'e!pt transactions+ 5 A license to sell and perfor!ance bond shall not be

reuired in any of the follo#in$ transactions3

a< Sale of a subdi"ision lot resultin$ fro! the partition of land a!on$ co5o#ners and co5heirs+

b< Sale or transfer of a subdi"ision lot by the ori$inal purchaser thereof and any

subseuent sale of the sa!e lot+

c< Sale of a subdi"ision lot or a condo!iniu! unit by or for the account of a !ort$a$ee inthe ordinary course of business #hen necessary to liuidate a bona fide debt+

Sec+ + Suspension of license to sell+ 5 pon "erified co!plaint by a buyer of a

subdi"ision lot or a condo!iniu! unit in any interested party, the Authority !ay, in itsdiscretion, i!!ediately suspend the o#ner;s or dealer;s license to sell pendin$

in"esti$ation and hearin$ of the case as pro"ided in Section 1 hereof+


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-he Authority !ay !otu proprio suspend the license to sell if, in its opinion, any

infor!ation in the re$istration state!ent filed by the o#ner or dealer is or has beco!e

!isleadin$, incorrect, inadeuate or inco!plete or the sale or offerin$ for a sale of thesubdi"ision or condo!iniu! pro(ect !ay #or or tend to #or a fraud upon prospecti"e

buyers+

-he suspension order !ay be lifted if, after notice and hearin$, the Authority is

con"inced that the re$istration state!ent is accurate or that any deficiency therein hasbeen corrected or supple!ented or that the sale to the public of the subdi"ision or

condo!iniu! pro(ect #ill neither be fraudulent not result in fraud+ .t shall also be lifted

upon dis!issal of the co!plaint for lac of le$al basis+

ntil the final entry of an order of suspension, the suspension of the ri$ht to sell thepro(ect, thou$h bindin$ upon all persons notified thereof, shall be dee!ed confidential

unless it shall appear that the order of suspension has in the !eanti!e been "iolated+

Sec+ 9+ Re"ocation of re$istration certificate and license to sell+ 5 -he Authority !ay,

!otu proprio or upon "erified co!plaint filed by a buyer of a subdi"ision lot orcondo!iniu! unit, re"oe the re$istration of any subdi"ision pro(ect or condo!iniu!

pro(ect and the license to sell any subdi"ision lot or condo!iniu! unit in said pro(ect by

issuin$ an order to this effect, #ith his findin$s in respect thereto, if upon e'a!inationinto the affairs of the o#ner or dealer durin$ a hearin$ as pro"ided for in Section 1>

hereof, if shall appear there is satisfactory e"idence that the said o#ner or dealer3

a< .s insol"ent% or

b< has "iolated any of the pro"isions of this /ecree or any applicable rule or re$ulation of

the Authority, or any undertain$ of his&its perfor!ance bond% orc< Has been or is en$a$ed or is about to en$a$e in fraudulent transactions% or

d< Has !ade any !isrepresentation in any prospectus, brochure, circular or otherliterature about the subdi"ision pro(ect or condo!iniu! pro(ect that has been distributed

to prospecti"e buyers% or

e< .s of bad business repute% or

f< /oes not conduct his business in accordance #ith la# or sound business principles+Where the o#ner 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 !e!ber of such partnership or any officer or director of suchcorporation or association has been $uilty of any act or o!ission #hich #ould be cause

for refusin$ or re"oin$ the re$istration of an indi"idual dealer, broer or sales!an as

pro"ided in Section 11 hereof+

Sec+ 1C+ Re$isters of subdi"ision lots and condo!iniu! units+ 5 A record ofsubdi"ision lots and condo!iniu! 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 subdi"ision lots and condo!iniu! units shall be open to public inspection sub(ect to


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such reasonable rules as the Authority !ay prescribe+

-itle ...

/EA4ERS, 8RFERS A)/ SA4ES0E)

Sec+ 11+ Re$istration of dealers, broers and sales!en+ 5 )o real estate dealer, broer

or sales!an shall en$a$e in the business of sellin$ subdi"ision lots or condo!iniu! unitsunless he has re$istered hi!self #ith the Authority in accordance #ith the pro"isions of

this section+

.f the Authority shall find that the applicant is of $ood repute and has co!plied #ith

the applicable rules of the Authority, includin$ the pay!ent of the prescribed fee, he shallre$ister such applicant as a dealer, broer or sales!an upon filin$ a bond, or other

security in lieu thereof, in such su! as !ay be fi'ed by the Authority conditioned upon

his faithful co!pliance #ith the pro"isions of this /ecree3 ro"ided, that the re$istrationof a sales!an shall cease upon the ter!ination of his e!ploy!ent #ith a dealer or broer+

E"ery re$istration under this section shall e'pire on the thirty5first day of /ece!ber of

each year+ Rene#al of re$istration for the succeedin$ year shall be $ranted upon #ritten

application therefor !ade not less than thirty nor !ore than si'ty days before the first dayof the ensuin$ year and upon pay!ent of the prescribed fee, #ithout the necessity of

filin$ further state!ents or infor!ation, unless specifically reuired by the Authority+ All

applications filed beyond said period shall be treated as ori$inal applications+

-he na!es and addresses of all persons re$istered as dealers, broers, or sales!en

shall be recorded in a Re$ister of 8roers, /ealers and Sales!en ept in the Authority#hich shall be open to public inspection+

Sec+ 12+ Re"ocation of re$istration as dealers, broers or sales!en+ 5 Re$istration

under the precedin$ section !ay be refused or any re$istration $ranted thereunder,re"oed by the Authority if, after reasonable notice and hearin$, it shall deter!ine that

such applicant or re$istrant3

1< Has "iolated any pro"ision of this /ecree or any rule or re$ulation !ade hereunder% or

2< Has !ade a !aterial false state!ent in his application for re$istration% or< Has been $uilty of a fraudulent act in connection #ith any sale of a subdi"ision lot or

condo!iniu! unit% or>< Has de!onstrated his un#orthiness to transact the business of dealer, broer, orsales!an, as the case !ay be+

.n case of char$es a$ainst a sales!an, notice thereof shall also be $i"en the broer or

dealer e!ployin$ such sales!an+

endin$ hearin$ of the case, the Authority shall ha"e the po#er to order the suspension ofthe dealer;s, broer;s, of sales!an;s re$istration% pro"ided, that such order shall state the


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cause for the suspension

-he suspension or re"ocation of the re$istration of a dealer or broer shall carry #ith

it all the suspension or re"ocation of the re$istrations of all his sales!en+

-itle .

RE/RE *R REA-.) * [email protected].) ER-.*.A-E

Sec+ 1+ Hearin$+ 5 .n the hearin$ for deter!inin$ the e'istence of any $round or$rounds for the suspension and&or re"ocation of re$istration certificate and license to sell

as pro"ided in Section and 9 hereof, the follo#in$ shall be co!plied #ith3

a< )otice+ 5 )o such hearin$ shall proceed unless the respondent is furnished #ith a copyof the co!plaint a$ainst hi! or is notified in #ritin$ of the purpose of such hearin$+

b< enue+ 5 -he hearin$ !ay be held before the officer or officers desi$nated by theAuthority on the date and place specified in the notice+

c< )ature of proceedin$+ 5 -he proceedin$s shall be non5liti$ious and su!!ary in nature#ithout re$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 #hene"er

practicable and con"enient+d< o#er incidental to the hearin$+ 5 *or the purpose of the hearin$ or other proceedin$

under this /ecree, the officer or officers desi$nated to hear the co!plaint shall ha"e the

po#er to ad!inister oaths, subpoena #itnesses, conduct ocular inspections, taedepositions, and reuire the production of any boo, paper, correspondence,

!e!orandu!, or other record #hich are dee!ed rele"ant or !aterial to the inuiry+

Sec+ 1>+ onte!pt+

a< /irect conte!pt+ 5 -he officer or officers desi$nated by the Authority to hear the

co!plaint !ay su!!arily ad(ud$e in direct conte!pt any person $uilty of !isbeha"ior inthe presence of or so near the said hearin$ officials as to obstruct or interrupt the

proceedin$s before the sa!e or of refusal to be s#orn or to ans#er as a #itness or to

subscribe an affida"it or deposition #hen la#fully reuired to do so+ -he person found$uilty of direct conte!pt under this section shall be punished by a fine not e'ceedin$

*ifty ?BC+CC< esos or i!prison!ent not e'ceedin$ fi"e ?B< days, or both+ a

b< .ndirect conte!pt+ 5 -he officer or officers desi$nated to hear the co!plaint !ay also

ad(ud$e any person in indirect conte!pt on $rounds and in the !anner prescribed in Rule71 of the Re"ised Rules of ourt+

Sec+ 1B+ /ecision+ 5 -he case shall be decided #ithin thirty ?C< days fro! the ti!e the

sa!e is sub!itted for decision+ -he /ecision !ay order the re"ocation of the re$istrationof the subdi"ision or condo!iniu! pro(ect, the suspension, cancellation, or re"ocation of

the license to sell and&or forfeiture, in #hole or in part, of the perfor!ance bond

!entioned in Section 6 hereof+ .n case forfeiture of the bond is ordered, the /ecision !ay


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direct the pro"incial or city en$ineer to undertae or cause the construction of roads and

of other reuire!ents for the subdi"ision or condo!iniu! as stipulated in the bond,

char$eable to the a!ount forfeited+ Such decision shall be i!!ediately e'ecutory andshall beco!e final after the lapse of 1B days fro! the date of receipt of the /ecision+

Sec+ 16+ ease and /esist rder+ 5 Whene"er 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 "iolation of the pro"isions of this /ecree, or of any rule or re$ulationthereunder, it !ay, upon due notice and hearin$ as pro"ided in Section 1 hereof, issue a

cease and desist order to en(oin such act or practices+

Sec+ 17+ Re$istration+ 5 All contracts to sell, deeds of sale and other si!ilar

instru!ents relati"e to the sale or con"eyance of the subdi"ision lots and condo!iniu!units, #hether or not the purchase price is paid in full, shall be re$istered by the seller in

the ffice of the Re$ister of /eeds of the pro"ince or city #here the property is situated+

Whene"er a subdi"ision plan duly appro"ed in accordance #ith Section > hereof,

to$ether #ith the correspondin$ o#ner;s duplicate certificate of title, is presented to theRe$ister of /eeds for re$istration, the Re$ister of /eeds shall re$ister the sa!e in

accordance #ith the pro"isions of the 4and Re$istration Act, as a!ended3 ro"ided,

ho#e"er, that it there is a street, passa$e#ay or reuired open space delineated on aco!ple' subdi"ision plan hereafter appro"ed and as defined in this /ecree, the Re$ister

of /eeds shall annotate on the ne# certificate of title co"erin$ the street, passa$e#ay or

open space, a !e!orandu! to the effect that e'cept by #ay of donation in fa"or of a cityor !unicipality, no portion of any street, passa$e#ay, or open space so delineated on the

plan shall be closed or other#ise disposed of by the re$istered o#ner #ithout the

reuisite appro"al as pro"ided under Section 22 of this /ecree+

Sec+ 1+ 0ort$a$es+ 5 )o !ort$a$e on any unit or lot shall be !ade by the o#ner orde"eloper #ithout prior #ritten appro"al of the Authority+ Such appro"al shall not be

$ranted unless it is sho#n that the proceeds of the !ort$a$e loan shall be used for the

de"elop!ent of the condo!iniu! or subdi"ision pro(ect and effecti"e !easures ha"e

been pro"ided to ensure such utiliDation+ -he loan "alue of each lot or unit co"ered by the!ort$a$e shall be deter!ined and the buyer thereof, if any, shall be notified before the

release of the loan+ -he buyer !ay, at his option, pay his install!ent for the lot or unit

directly to the !ort$a$ee #ho shall apply the pay!ents to the correspondin$ !ort$a$eindebtedness secured by the particular lot or unit bein$ paid for, #ith a "ie# to enablin$

said buyer to obtain title o"er the lot or unit pro!ptly after full pay!ent thereto%

Sec+ 19+ Ad"ertise!ents+ 5 Ad"ertise!ents that !ay be !ade by the o#ner or

de"eloper throu$h ne#spaper, radio, tele"ision, leaflets, circulars or any other for! aboutthe subdi"ision or the condo!iniu! or its operations or acti"ities !ust reflect the real

facts and !ust be presented in such !anner that #ill not tend to !islead or decei"e the

public+


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-he o#ner or de"eloper shall ans#erable and liable for the facilities, i!pro"e!ents,

infrastructures or other for!s of de"elop!ent represented or pro!ised in brochures,

ad"ertise!ents and other sales propa$anda disse!inated by the o#ner or de"eloper or hisa$ents and the sa!e shall for! part of the sales #arranties enforceable a$ainst said o#ner

or de"eloper, (ointly and se"erally+ *ailure to co!ply #ith these #arranties shall also bepunishable in accordance #ith the penalties pro"ided for in this /ecree+

Sec+ 2C+ -i!e of o!pletion+ 5 E"ery o#ner or de"eloper shall construct and pro"idethe facilities, i!pro"e!ents, infrastructures and other for!s of de"elop!ent, includin$

#ater supply and li$htin$ facilities, #hich are offered and indicated in the appro"ed

subdi"ision or condo!iniu! plans, brochures, prospectus, printed !atters, letters or inany for! of ad"ertise!ent, #ithin one year fro! the date of the issuance of the license

for the subdi"ision or condo!iniu! pro(ect or such other period of ti!e as !ay be fi'ed

by the Authority+

Sec+ 21+ Sales rior to /ecree+ 5 .n cases of subdi"ision lots or condo!iniu! unitssold or disposed of prior to the effecti"ity of this /ecree, it shall be incu!bent upon the

o#ner or de"eloper of the subdi"ision or condo!iniu! pro(ect to co!plete co!pliance

#ith his or its obli$ations as pro"ided in the precedin$ section #ithin t#o years fro! the

date of this /ecree unless other#ise e'tended by the Authority or unless an adeuateperfor!ance bond is filed in accordance #ith Section 6 hereof+

*ailure of the o#ner or de"eloper to co!ply #ith the obli$ations under this and the

precedin$ pro"isions shall constitute a "iolation punishable under Sections and 9 ofthis /ecree+

Sec+ 22+ Alteration of lans+ 5 )o o#ner or de"eloper shall chan$e or alter the roads,open spaces, infrastructures, facilities for public use and&or other for! of subdi"ision

de"elop!ent as contained in the appro"ed subdi"ision plan and&or represented in itsad"ertise!ents, #ithout the per!ission of the Authority and the #ritten confor!ity or

consent of the duly or$aniDed ho!eo#ners association, or in the absence of the latter, by

the !a(ority of the lot buyers in the subdi"ision+

Sec+ 2+ )on5*orfeiture of ay!ents+ 5 )o install!ent pay!ent !ade by a buyer in asubdi"ision or condo!iniu! pro(ect for the lot or unit he contracted to buy shall be

forfeited in fa"or of the o#ner or de"eloper #hen the buyer, after due notice to the o#ner

or de"eloper, desists fro! further pay!ent due to the failure of the o#ner or de"eloper to

de"elop the subdi"ision or condo!iniu! pro(ect accordin$ to the appro"ed plans and#ithin the ti!e li!it for co!plyin$ #ith the sa!e+ Such buyer !ay, at his option, be

rei!bursed the total a!ount paid includin$ a!ortiDation interests but e'cludin$

delinuency interests, #ith interest thereon at the le$al rate+

Sec+ 2>+ *ailure to pay install!ents+ 5 -he ri$hts of the buyer in the e"ent of this

failure to pay the install!ents due for reasons other than the failure of the o#ner or

de"eloper to de"elop the pro(ect shall be $o"erned by Republic Act )o+ 6BB2+


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Where the transaction or contract #as entered into prior to the effecti"ity of Republic Act

)o+ 6BB2 on Au$ust 26, 1972, the defaultin$ buyer shall be entitled to the correspondin$

refund based on the install!ents paid after the effecti"ity of the la# in the absence of anypro"ision in the contract to the contrary+

Sec+ 2B+ .ssuance of -itle+ 5 -he o#ner or de"eloper shall deli"er the title of the lot or

unit to the buyer upon full pay!ent of the lot or unit+ )o fee, e'cept those reuired for

the re$istration of the deed of sale in the Re$istry of /eeds, shall be collected for theissuance of such title+ .n the e"ent a !ort$a$e o"er the lot or unit is outstandin$ at the

ti!e of the issuance of the title to the buyer, the o#ner or de"eloper shall redee! the

!ort$a$e or the correspondin$ portion thereof #ithin si' !onths fro! such issuance inorder that the title o"er any fully paid lot or unit !ay be secured and deli"ered to the

buyer in accordance here#ith+

Sec+ 26+ Realty -a'+ 5 Real estate ta' and assess!ent on a lot or unit shall de paid by

the o#ner or de"eloper #ithout recourse to the buyer for as lon$ as the title has notpassed the buyer% ro"ided, ho#e"er, that if the buyer has actually taen possession of

and occupied the lot or unit, he shall be liable to the o#ner or de"eloper for such ta' and

assess!ent effecti"e the year follo#in$ such tain$ of possession and occupancy+

Sec+ 27+ ther har$es+ 5 )o o#ner or de"eloper shall le"y upon any lot or buyer a feefor an alle$ed co!!unity benefit+ *ees to finance ser"ices for co!!on co!fort, security

and sanitation !ay be collected only by a properly or$aniDed ho!eo#ners association

and only #ith the consent of a !a(ority of the lot or unit buyers actually residin$ in thesubdi"ision or condo!iniu! pro(ect+

Sec+ 2+ Access to ublic ffices in the Subdi"isions+ 5 )o o#ner or de"eloper shalldeny any person free access to any $o"ern!ent office or public establish!ent located

#ithin the subdi"ision or #hich !ay be reached only by passin$ throu$h the subdi"ision+

Sec+ 29+ Ri$ht of Way to ublic Road+ 5 -he o#ner or de"eloper of a subdi"ision#ithout access to any e'istin$ public road or street !ust secure a ri$ht of #ay to a public

road or street and such ri$ht of #ay !ust be de"eloped and !aintained accordin$ to the

reuire!ent of the $o"ern!ent and authorities concerned+

Sec+ C+ r$aniDation of Ho!eo#ners Association+ 5 -he o#ner or de"eloper of asubdi"ision pro(ect or condo!iniu! pro(ect shall initiate the or$aniDation of a

ho!eo#ners association a!on$ the buyers and residents of the pro(ects for the purposeof pro!otin$ and protectin$ their !utual interest and assist in their co!!unityde"elop!ent+

Sec+ 1+ /onations of roads and open spaces to local $o"ern!ent+ 5 -he re$istered

o#ner or de"eloper of the subdi"ision or condo!iniu! pro(ect, upon co!pletion of the

de"elop!ent of said pro(ect !ay, at his option, con"ey by #ay of donation the roads andopen spaces found #ithin the pro(ect to the city or !unicipality #herein the pro(ect is


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located+ pon acceptance of the donation by the city or !unicipality concerned, no

portion of the area donated shall thereafter be con"erted to any other purpose or purposes

unless after hearin$, the proposed con"ersion is appro"ed by the Authority+

Sec+ 2+ hases of Subdi"ision+ 5 *or purposes of co!plyin$ #ith the pro"isions ofthis /ecree, the o#ner or de"eloper !ay di"ide the de"elop!ent and sale of the

subdi"ision into phases, each phase to co"er not less than ten hectares+ -he reuire!ent

i!posed by this /ecree on the subdi"ision as a #hole shall be dee!ed i!posed on eachphase+

Sec+ + )ullity of #ai"ers+ 5 Any condition, stipulation, or pro"ision in contract of

sale #hereby any person #ai"es co!pliance #ith any pro"ision of this /ecree or of any

rule or re$ulation issued thereunder shall be "oid+

Sec+ >+ isitorial po#ers+ 5 -his Authority, throu$h its duly authoriDed representati"e

!ay, at any ti!e, !ae an e'a!ination into the business affairs, ad!inistration, andcondition of any person, corporation, partnership, cooperati"e, or association en$a$ed in

the business of sellin$ subdi"ision lots and condo!iniu! units+ *or this purpose, theofficial authoriDed so to do shall ha"e the authority to e'a!ine under oath the directors,

officers, stocholders or !e!bers of any corporation, partnership, association,

cooperati"e or other persons associated or connected #ith the business and to issuesubpoena or subpoena duces tecu! in relation to any in"esti$ation that !ay arise

therefro!+

-he Authority !ay also authoriDe the ro"incial, ity or 0unicipal En$ineer, as the

case !ay be, to conduct an ocular inspection of the pro(ect to deter!ine #hether the

de"elop!ent of said pro(ect confor!s to the standards and specifications prescribed bythe $o"ern!ent+

-he boos, papers, letters, and other docu!ents belon$in$ to the person or entities

herein !entioned shall be open to inspection by the Authority or its duly authoriDedrepresentati"e+

Sec+ B+ -ae5o"er /e"elop!ent+ 5 -he Authority, !ay tae o"er or cause the

de"elop!ent and co!pletion of the subdi"ision or condo!iniu! pro(ect at the e'penses

of the o#ner or de"eloper, (ointly and se"erally, in cases #here the o#ner or de"eloperhas refused or failed to de"elop or co!plete the de"elop!ent of the pro(ect as pro"ided

for in this /ecree+

-he Authority !ay, after such tae5o"er, de!and, collect and recei"e fro! the buyers

the install!ent pay!ents due on the lots, #hich shall be utiliDed for the de"elop!ent ofthe subdi"ision+

Sec+ 6+ Rules and Re$ulations+ 5 -he Authority shall issue the necessary standards,

rules and re$ulations for the effecti"e i!ple!entation of the pro"isions of this /ecree+


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Such standards, rules and re$ulations shall tae effect i!!ediately after their publication

three ti!es a #ee for t#o consecuti"e #ees in any ne#spaper of $eneral circulation+

Sec+ 7+ /eputiDation of la# enforce!ent a$encies+ 5 -he Authority !ay deputiDe the

hilippine onstabulary or any la# enforce!ent a$ency in the e'ecution of its finalorders, rulin$s or decisions+

Sec+ + Ad!inistrati"e *ines+ 5 -he Authority !ay prescribe and i!pose fines not

e'ceedin$ ten thousand pesos for "iolations of the pro"isions 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 pro"isions of the Rules of ourt+

Sec+ 9+ enalties+ 5 Any person #ho shall "iolate any of the pro"isions of this /ecree

and&or any rule or re$ulation that !ay be issued pursuant to this /ecree shall, upon

con"iction, be punished by a fine of not !ore than t#enty thousand ?2C,CCC+CC< pesos

and&or i!prison!ent of not !ore than ten years3 ro"ided, -hat in the case ofcorporations, partnership, cooperati"es, or associations, the resident, 0ana$er or

Ad!inistrator or the person #ho has char$e of the ad!inistration of the business shall becri!inally responsible for any "iolation of this /ecree and&or the rules and re$ulations

pro!ul$ated pursuant thereto+

Sec+ >C+ 4iability of controllin$ persons+ 5 E"ery person #ho directly or indirectly

controls any person liable under any pro"ision of this /ecree or of any rule or re$ulationissued thereunder shall be liable (ointly and se"erally #ith and to the sa!e 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 "iolation or cause of action+

Sec+ >1+ ther re!edies+ 5 -he ri$hts and re!edies pro"ided in this /ecree shall be inaddition to any and all other ri$hts and re!edies that !ay be a"ailable under e'istin$

la#s+

Sec+ >2+ Repealin$ clause+ 5 All la#s, e'ecuti"e orders, rules and re$ulations or partthereof inconsistent #ith the pro"isions of this /ecree are hereby repealed or !odified

accordin$ly+

Sec+ >+ Effecti"ity+ 5 -his /ecree shall tae effect upon its appro"al+

/one in the ity of 0anila, this 12th day of July, in the year of ur 4ord, nineteenhundred and se"enty5si'+

pd 957 subdivision law

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