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ANNEX

MALACAfrANGManila

PRESIDENTIALECREENO,957

REGULATINGHESALEOFSUBDIVISIONOTSANDCONDOMINIUMS,

PROVIDING ENALTIES ORVIOLATIONSHEREOF

WHEREAS,t is thepolicyof theState o afford ts nhabitantshe requirementsof decenthumanseftlement nd to provide hemwith ampleopportunitiesor improvif€theirquality f life;

WHEREAS, umerouseports eveal hat many ealestate ubdivision wners,developers,operators,and/or sellers have reneged on their representations ndobligations o provideand maintainproperlysubdivision oads, drainage,sewerage,watersystems,ighting ystems, ndother imilar asic equirements,husendangeringthe healthand safetyof homeand ot buyers;

WHEREAS, eportsof alarmingmagnitude lso showcasesof swindling ndfraudulentmanipulationserpetrated y unscrupulousubdivision nd condominiumsellers and operators, uchas failure o deliver itles to the buyers or titlesfree fromliensand encumbrances,nd o payrealestate axes,and raudulent alesof the samesubdivisionots o differentnnocent urchasersor value;

WHEREAS,heseactsnot onlyunderminehe andand housing rogram f thegovernment ut alsodefeat heobjectives f the NewSociety,particularlyhe promotion

of peaceandorderand he enhancementf theeconomic,ocial nd moral ondition fthe Filipino eople;

WHEREAS, his stateof affairshas rendered t imperativehat the real estalesubdivisionnd condominiumusinessese closely upervisednd regulated nd hatpenaltiesbe imposed on fraudulentpracticesand manipulations ommifted nconnectionherewith.

NOW,THEREFORE,, FERDINAND . MARCOS, residentof the phitippines,by virtueof the powers ested n me by the constitution, o herebydecreeandorder:

TitleTITLEANDDEFINITIONS

SEC. 1. Tltle. - This decreeshailbe knownas THE SUBDMSIONANDCONDOMINITJMUYER'S ROTECTIVEECREE.

sEc. 2. Definition of rerms. - when used n this decree, he following ermsshallun{esshe contextothenarisendicates, ave he ollowing espectivemeanings:

a) Person. "Person" halrmeana naturar r a juridical erson.A juridicalperson refers to a business irm whethera corporation, artnership,

ooperativeorassociationr a single roprietorship.



b) Saleor Sell. - "Sale" r "Sell" hall nclude verydisposition,r attemptodispose, or a valuable onsideration,f a subdivisionot, ncludinghe building ndother mprovementshereof, f any, n a subdivisionrojector condominium nit n acondominiumroject. Sale" nd"Sell" hallalso nclude contracto sell,a contract fpurchase nd sale,an exchange, n attempt o sell,an optionof sale or purchase,

solicitationf a sale,or any offer o sell,directly r by an agent,or by a circular,etter'

advertisementr otherwise.

A privilegegiven o a memberof a cooperative,orporation,artnership, r any

associationnd/or he ssuance fa certificatef receipt videncingr givingherightof

participationn,or right,any and n considerationf payment f the membershipee or

dues, hallbe deemed salewithin hemeaning f thisdefinition.

c) Buyand Purchase. The term"Buy"and "Purchase"hall nclude ny

contract to buy, purchase, or othenruise cquire for a valuable considerationa

subdivisionot, ncludinghe building nd other mprovements,f any, n a subdivision

projectora condominiumnit n a condominiumroject.

d) subdivisionProject.- "subdivisionProject" hallmeana tractor a parcel

of land registeredunder Ait No. 496 which is partitionedprimarily or- residentialpurposesito individualotswith or withoutmprovementshereon, nd offered o the

public for sale, in cash or in installmenterms. lt shall includeall residential,

commercial,ndustrial nd recreational reas,as well as open spacesand other

communityndpublic reasn theproject'

e) subdivision ot. - "subdivisionot"shallmeananyof the lots,whether

residential,ommercial,ndustrial,r recreational,na subdivisionqect'

f) complexsubdivision lan. - "complexsubdivision lan"shallmeana

subdivision lanof a registeredandwherein street,passagewayr openspace s

delineatedn thePlan.

s) condominium roject. - "condominium roject" hallmean he entire

parcelof

real propertydividedor to be dividedprimarily or residentialpurposes nto

condominiumnits,ncludingllstructureshereon'

h)Condomin iumUni t . - .Condomin iumUni t ' sha l |meanapar to f thecondominiumroject ntendedor any ypeof independentseor ownership,ncluding

one or moreroomsor spaces ocatedn oneor more loors or partof partsof floors) n

abui |d ingorbui |d ingsandsuchaccessor iesasmaybeappendedthereto.

i) owner. - ,.owner'.sha|| efer o the registered wnerof the |andsubjectofa subdivisionr a condominiumroject.

j )Deve|oper ' - ' 'Deve loper ' ' sha | |meanthepersonwhod.eve|opsorimproveshesubdivisionroject r condominiumrojector and n behalfof theowner

thereof.

k) Dealer. "Dealer" hallmeananyperson irectly ngaged s principaln

the business f buying, elling r exchangingealestatewhether n a full-time r part-

timebasis.

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l) Broker.- "Broker" hallmeananypersonwho, or commission r othercompensation,ndertakeso sell or negotiatehe sale of a realestatebelongingoanother.

m) Salesman. "Salesman"hall efer o theperson egularly mployed y abroker o perform,orand n hisbehalf, nyor all he unctions f a realestate roker.

n) Authority. 'Authority"shallmean he National ousing uthority.

d) The generalcharacterof thetransacted y the owner;

Title llREGISTRATIONND LICENSE O SELL

sEc. 3. NationalHousingAuthority.- The NationalHousingAuthority hallhaveexclusiveurisdictiono regulatehe real radeand businessn accordance iththeprovisionsf thisDecree.

sEc. 4. Registrationof Project.- Theregistered wnerof a parcelof landwhowisheso converthe same ntoa subdivisionroject hall ubmit issubdivisiontan o

the Authority hichshallactuponandapprovehe same,upona findingshat heplancomplieswith he Subdivision tandards nd Regulationsnforceablet the time heplan s submifted.The sameprocedure hallbe followedn the caseof a plan or acondominiumroject xcept hat, n addition,aidAuthorityhallact uponand approvetheplanwith especto thebuilding r buildingsncludedn thecondominiumrojectnaccordance ith he National uilding ode R.A.No.6541).

. Th" subdivisionlan,as so approved,hall henbe submittedo the Director fLands or approvaln accordance ith he procedure rescribedn seition 44 of theLandRegistrationct (ActNo.496 as amended y R.A.No.440): provided.that n

of heCondominiumct R.A.No.4726).

The owner or the rear estate dearer nterested n the sare of rots or units,respectively,nsuchsubdivisionroject r condominiumroject hall egisterheprojectl/i1h the Authorityby firing herewith swornregistrationtatemeni ontaininghefollowingnformation;

a) Nameof theowner;

b) The locationof.theowner'sprincipar usinessoffice,and if the ownerrs anon-residentiripino,henameandaddress f hisagentor representativein thephilippinesauthorizedo receivenotice;

c) The namesandaddresses f ail the directors nd officersof the businessfirm, f theowner:

52

businessactually ransacted r to be



e) A statement f the capitalizationf theowner,ncludingheauthorizedndoutstandingmounts f itscapital tockand heproportionhereofwhich sparo-up.

The ollowing ocuments hatlbe attached o theregistrationtatement:

a. A copy of the subdivision lan or condominium lan as approved n

accordance ith he irstandsecond aragraphsf thissection;

b. A copy of any circular,prospectus, rochure, dvertisement,etter,orcommunicationo be used or thepublic ffering f thesubdivisionotsor

condominiumnits;

c. In case of a businessirm, a balance heetshowing he amountand

general haracter f its assetsand iabilitiesnd a copyof its articles f

incorporattonr articles f partnershipr association,s the casemay be'

with all the amendmentshereofand existingby-lawsor instruments

correpondinghereto;

d. A title to the propertywhich s free from all liens and encumbrances:Provided, owever,hat ncase nysubdivisionotor condominiumnit s

mor tgaged, i t i ssuff i c ien t i f the inst rumento fmor tgageconta lnsastipulation hat the mortgageeshall releasethe mortgageon any

subdivisionot or condominiumnitas soonas the fullpurchase rice or

the same s Paid Y hebuYer.

The personfiling the registration tatement hall pay the registrationees

prescribedherefore ytheAuthority.

Thereupon,heAuthorityhall mmediatelyause o be published noticeof the

filingof the registrationtatem-entt theexpense f theapplicant owneror dealer,ntwo'newspapeisf general irculat ion,nepublishedn English ndanothern.Pil ipino,

oncea week or two consecutive eeks, ecitinghat a registrationtatementor the

saleof subdivisionots or condominiumnitshis been iled n the NationalHousing

nutnoritv; hat the aforesaidegistrationtatement, s well as the papersattached

thereto, re open o inspectionuring usiness oursby interestedarties,-underuch

i"grl"irn."J

the Authoritymay mpbse; nd hatcopies hereof hallbe furnishedo

anypartyuponpayment f theproperees.

The subdivision roject r the condominiumroject hallbe deemed egistered

uponcompletion f the abovepublicationequirement.The fact of such registration

sirallbe evidenced y a registrationertificateo be issued o the applicant'ownerr

dealer.

SEC.5. License o Sell - Suchowneror dealer o whomhas been ssueda

registrationertificatehallnot, however, e authorizedo sell any subdivisionot or

condominiumnit n the registeredroject nless e shatlhave irstobtained license

to sell heprojectwithinwoweeks rom heregistrationf suchproject'

The Authority, ponproperapplicationherefore, hall ssue o suchowneror

dealerof a registeredroject 'licenseo sell heprojectf, afteran examinationf the

registrationstitement iled by saidowneror dealerand all the pertinent ocuments

CJ



.attached hereto,he is convinced hat the owneror dealer s of good repute, hat hisbusiness s financially table,and that the proposed ale of the subdivisionots orcondominiumnits o thepublicwouldnotbe raudulerit.

SEC, 6. PerformanceBond. - No license o sell subdivision ots orcondominium nits shallbe issuedby the Authority ndersection5 of this Decreeunless he owneror dealershallhave iledan adequateperformance ondapprovedbysaid Authority o guarantee he construction nd maintenance f the roads,gutters,drainage,sewerage,water system, ightingsystems,and full

development f thesubdivision rojector the condominium rojectand the compliance y the ownerordealerwith he applicableawsand ulesand egulations.

The performance ond shall be executed n favor of the Republicof thePhilippinesand shall authorizethe Authorityto use the proceeds th'ereof or thepurposes f its undertakingn caseof forfeiture s providedn thisDecree.

sEc' 7. .ExemptTransactions. - A ricenseo seil and perfo'nancebondshallnotberequirednanyof the ollowingransactions:

sale'of a subdivisionot resurtingromthe partition f randamongco-owners ndco-heirs.

Saleor transfer f a subdivisionotby theoriginar urchaserhereof ndanysubsequentaleof thesame ot.

sale of a subdivisionotor a condominiumnitby or for theaccount f am:rtSaqegn theordinary ourse f business hennecessaryo liquidatea bona idedebt.

sEc' 8. suspensionof License o sert. - Uponverified ompraintitedby abuyerof a subdivisionotor a condominiumnitor any nterested ",tv, n" irft,oritvmay, in its discretion,mmediateryuspend he owner,sor deare/s

'ticenseto sertpendingnvestigationndhearingoi thecaseas providednsectionrs heieor.

Thesuspensionrdermaybe riftedf, afternoticeand hearing,he Authoritysconvinced hat the registration tatements accurateor thatany aericlencytreieinhasbeen conectedor supplemented r that the iaie io tne public of the subdivisionorcondominiumrojectwiilneither e fraudurentorresurtn fraud. rt shailarsobe riftedupondismissal f thecomplaintor ackof tegat asis

pensions,hesuspensionf the right o sellrsons notified thereof, shall be deemedrderof suspensionas n the meantime e

a)

b)

c)

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SEC.9. Revocationof RegistrationCertificate nd License o Sell. - TheAuthoritymay,motopropioor uponverified omplaintiledby a buyerof a subdivisionlot or condominium nit, revoke he registration f any subdivision rojectand thelicenseo sellanysubdivisionotor condominiumnit n saidproject y ssuing n orderto thiseffect,with hisfindingsn respect hereto,f uponexaminationnto he affairs f

theowneror dealer uring hearing s providedor nSection 4 hereof,t shallappear

there s satisfactoryvidencehat hesaidowner rdealer:

a) ls nsolvent;r

b) Hasviolated ny of the provisionsf thisDecree r any applicableuleor

regulation f theAuthority,r anyundertakingf his/its erformanceond;

or

c) Has beenor is engagedor is about o engage n fraudulentransactions;

or

d) Has madeany misrepresentationn any prospectus,rochure, ircular r

other iteratureabout he subdivision rojector condominium roject hat

hasbeendistributedo prospectiveuyer; r

e) ls of badbusinessepute; r

fl Doesnotconduct is businessn accordance ith aw or soundbusiness

PrinciPles.

Where he owneror dealer s a partnershipr corporationr an unincorporated

association,t shallbe sufficientause or cancellationf its registrationertificatend

its license o sell, f any member f suchpartnershipr any officer r director f such

corporationr associationasbeenguiltyof any actor omission hichwouldbecause

for'refusingor revokinghe registrationf an individualealer,brokeror salesman s

providedn Section 1hereof.

SEC.10. Registersof SubdivisionLots and CondominiumUnits. - A record

of subdivisionotsandcondominiumnits hallbekept n theAuthority herein hallbe

enteredall ordersof theAuthority ffectinghe condition r status hereof Theregisters

of subdivisionotsandcondominiumnitsshallbe open o public nspectionubjecto

suchreasonableulesas theAuthoritymayprescribe

Title llDEALERS. ROKERS NDSALESMEN

sEc. 11. Registration f Dealers,Brokersand salesmen. - No realestate

dealer,brokeror sa|ert"n shallengage n the business f selling ubdivisionots or

condominiumnitsunlesshe has registered imselfwith the Authorityn accorclance

with heprovisionsf thissection'

lf the Authority hall ind that he applicants of goodreputeand ha.s omplied

with he applicableuleg f theAuthority,ncludinghepayment f theprescribedee,he

shall egister uchapplicant s a dealer, roker, r salesman ponhis ilinga bond'or

othersjcurity n lieu hereof,n suchsumas maybe fixedby the Authority onditioned



upon his faithfulcompliance ith the provisions f this Decree: Provided, hat theregistrationf a salesman hallceaseupon he termination f his employment ithadealer r broker.

Every registration nder this section shall expire on the thirty-first ay ofDecember f eachyear. Renewalof registrationor the succeeding ear shall begranted ponwritten pplicationhereforemadenot ess han hirtynor more hansixtydaysbefore he firstday of the issuing earand uponpayment f the prescribedee,

without he necessity f filing urtherstatements r information, nlessspecificallyrequired y theAuthority.Al l applicationsiledbeyond aidperiod hallbe treated soriginalpplications.

The namesand addresses f all persons egistered s dealers,brorersorsalesman hallbe recordedn a Register f Brokers, ealers nd salesman ept n theAuthority hich hallbe open opublicnspection.

SEC. 12. Revocationof Registrationas Dealers,Brokers,Salesmen.Registration nder the precedingsectionmay be refusedor any registration rantedthereunder,evokedby the Authorityf, afterreasonable otice- nd-hearing, t shalldeterminehatsuchapplicant r registrant:

Hasviolated ny provision f thisDecree r any ruleor regulationmadehereunder:r

Hasmadea materialalse tatementn hisapplicationor registration;r

Has.been guiltyof a fraudulent ct in connectionwith any sale of asubdivisionotor condominiumnit;or

Has demonstratedis unworthiness,o transacthe business f dearer,broker, r salesman,sthe casemavbe.

1)

4)

2)

3)

ln caseof chargesagainst saresman,otice hereof ha arsobe given hebroker r dealer mployinguch alesman.

Pendinghearingof the.case, he Authority hailhavethe power o order hesuspension f dearer's, roker's r saresman'segistration;rovided,hat ucn oroershallstate hecauseor hesuspension.

.. Thesuspensionr revocationf the registrationf a dearer haflcarrywith t arl

thesuspensionr revocationf the registration-sfallhissalesman.

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Title VPROCEDUREORREVOCATION F

REGISTRATIONERTIFICATE

SEC.13. Hearing.- In the hearingor determiningheexistence f anyground

or groundsor thesuspensionnd/or evocationf registrationertificatend icenseo

sellas providedn Sections and hereof,he ollowing hallbecomplied ith:

a) Notice - No such hearingshall proceedunless he respondentsfurnished itha copyof thecomplaintgainst imor is notifiedn writing

of thepurpose f suchhearing.

b) Venue - The hearingmaybe heldbefore heofficeror officersdesignated

by theAuthorityn thedateandplace pecifiednthe notice.

c) Natureof Proceedings The proceedingshall be non-litigiousnd

summaryn naturewithout egard o legal echnicalitiesbtainingncourts

of law. The Rulesof Courtshallnot apply n said hearingexceptby

analogyor in a suppletory haracterand wheneverpracticable nd

convenient.

d) Power ncidentalo theHearing For hepurpose f the hearing.of ther

proceeding nder hisDecree, heofficeror officersdesignatedo hear he

complaint hallhave hepower o administeraths, ubpoena itnesses,

conduct cularnspections;akedispositions,ndrequireheproductionf

anybook,paper ,correspondence'memorandum,orotherrecordwhicharedeemed elevant r materialo the nquiry.

SEC.14. ContemPt.

a) Directcontempt. - The officeror officersdesignated y the Authority o

hearthecomp|aintmaysummari lyadjudgeindirectcontemptanypersonguiltyof misbehaviorn the presence f near he saidhearing fficials o

as to obstructor interrupthe proceedings efore he sameor of_refusalo

beswornor toanswerasawi tnessor tosubscr ibeanaf f idav i to rdeposition hen awfully equiredo do so. The person oundguiltyof

d i rec tcontemptunder th issec t ionsha| |bepun ishedbyaf inenotexceedingf i f ty (P50.oo)pesosor impr isonmentnotexceedingf ive(5)daYs, r both

b) Indirectcontempt. - The otficeror officersdesignatedo hear thecomp|aintmaya|soadjudgeanypersonin indi rectcontemptongroundsandinthemannerprescr ibedinRuleT' lo f theRevisedRulesofCourt '

sEc. 15. Decision.- Thecaseshallbe decided ithin hirty 30)days rom he

time he same s submittedordecision.Thedecisionmayorder he revocationf the

registrationf the subdivisionr condominiumroiect,he suspension,ancellation,r

reiocationof the license o sell and/or he forfeiture,n whole or in part, of the

oerformanceondmentionedn Section6 hereof. In case orfeiture f the bond s

ordered,he Decisionmay direct he provincial r city engineero undertake r cause

the constructionfroads nd of other equirementsor the subdivisionr condominium

as stipulatedn the bond,chargeableo the amount orfeited.Suchdecision hallbe



immediatelyxecutory ndshallbecomeinalafter he apse f 15days rom hedateofreceipt f theDecision.

SEC.16. Ceaseand DesistOrder. - Whenevert shallappearto heAuthoritythat anypersons engaged r about o engage n any actor practice hichconstitutesor will constitute violationof the provisions f this Decree,or of any rule or regulationthereunder,t may,upondue notice nd hearing s providedn Section 3 hereof,ssuea ceaseanddesist rder o enjoin uchactor practices.

SEC. 17. Registration.- ll contracts o sell,deedsof saleand othersimilarinstrumentselative o the saleor conveyancef the subdivisionotsand condominiumunits,whether r not hepurchase rice s paid n full,shallbe registeredy thesellernthe Office f theRegister f Deeds f theprovince r citywhere hepropertys situated.

Whenever subdivisionlandulyapprovednaccordance ithSection hereof,togetherwith he correspondingwner's uplicate ertificatef title, s presentedo theRegister f Deeds or registration,he Register f Deedsshall registerhe same naccordancewith the provisions f the Land Registration ct, as amended: provided,however,hat f there s a street, assagewayr required penspacedelineateon a

complex ubdivisionlanhereafterpproved ndas definedn thisDecree,he Registerof Deedsshallannotateon the newcertificate f ti e covering hestreet,passageway ropenspace,a memorandumo the effect hatexceptby wayof donationn favorof acityor municipality,o portion f anystreet, assageway,r openspacedelineatednthe plan shall be closedor otherwisedisposedof by the registered wnerwithout herequisitepproval s provided nderSection 2of thisDecree.

SEC.18. Mortgages. - No mortgage n any unitor lo t shallbe madeby theowneror developer ithout riorwritten pproval f the Authority.Suchapproval hallnotbe granted nlesst is shown hat he proceeds f themortgageoanshallbe usedfor the developmentf thecondominiumr subdivision rolect

nd effectivemeasureshave been providedo ensuresuch utilization.The loan valueof each lot or unitcovgredby the mortgage hallbe determined nd the buyer hereof, f any,shallbenotifiedbefore he releaseof the oan. Thebuyermay,at hisoption,payhis nstallmentfor the lot or unit direcily o the mortgageewho in"tt appiy the'paymentso thecorresponding ortgagendebtednessecured y the particulir ot or unitbeingpaidfor,with.a.viewo enabring aidbuyer o obtain ifleover he otor unitpromptiy fter ullpaymenthereof.

sEc' 19. Advertisements. Advertisementshatmaybe madeby the owneror developerhroughnewspaper,adio, erevision,eaflets, iicurar r any'other orm

about hesubdivisionr the condominiunrr itsoperationsr activitiesmuit reflecthereal actsandmustbepresentedn suchmannerhatwillnot end o mislead rdeceivethepublic.

The owner or developershall be answerable nd liable for the facilities,improvements,nfrastructuresr other ormsof developmentepresentedr promisednbrochures,dverlisementsndothersalespropagandaisseminatedy the ownerordeveloperor his agents and the same

'shall formpart of rhe saies waranties

enforceablegainst aid owneror developer,oinflyand severally.Failure o comprywith hesewarrantieshallalsobepunishablenaccordanceith irepenalties rovidedfor n thisDecree.

F,a



SEC.20. Time of Completion. Everyowneror developerhallconstruct ndprovide he facilities, mprovements,nfrastructures nd other forms of development,

includingwater supplyand lighting acilities, hichare offeredand indicatedn the

approved ubdivision r condominiumlans,brochures, rospectus, rintedmatters,

letiers r in any ormof advertisement,ithinoneyear rom hedateof the ssuance f

the licenseor the subdivisionr condominiumroject r suchotherperiodof time as

maybe fixedbytheAuthoritY.

sEc. 21. SalesPrior o Decree. Incases f subdivisionotsor condominium

unitssoldor disposed f prior o theeffectivity f thisDecree,t shallbe incumbent pon

the owner or developerof the subdivision r condominium roject o complete

compliance ith his or its obligationss providedn the preceding ectionwithin wo

years rom hedateof thisDecree nless therwisextended y theAuthority r unless

anadequate erformanceond s filed naccordanceithSection hereof.

Failure f the owneror developero complywith he obligationsnder hisand

the preceding rovisionshallconstitute violation unishable ndersections38 and

39 of thisDecree.

sEc. 22. Alterationof Plans. - Noowneror developerhallchangeor alterthe roads,openspaces, nfrastructures,acilitiesor publicuse and/orother orm of

subdivisiondevelopment s contained n the approvedsubdivisionplan and/or

i"pr.r"nt"o in its advertisements,ithout he permissionof the Authority nd the

wiittenconformityr consent f thedulyorganized omeowners'ssociation,r in the

absence f the aiter, ythe majority f the otbuyersn he subdivision.

sEc. 23. Non-Forfeiture f Payments.- No installmentaymentmadeby a

buyer n a subdivisionr condominiumro

shallbe forfeitedn favorof theowneror d€

theowneror developer,esistsrom urthet

the egal ate.

sEc.24 'Fai |uretoPay|nsta| |ments . .Ther ightsof thebuyer intheeventofhis ailure o pay he nstallmentsue or reasons ther han he ailure f the owneror

Jevelopero developheproject hallbegoverned y Republic ctNo.6552

Where the transactionor contractwas entered nto prior to the effectivityof

Republic ct No.6552 n August26,1972,hedefaulting uyershallbeentitledo the

corlesfonOingefundbased6n the installmentsaidafter he effectivity f the law n

theabsenceof anyprovisionn thecontraclo thecontrary'

sEc .25. lssuanceofT i t |e . .Theownerordeve lopersha| lde | iver thet i t leo fthe lot or unit o the buyerupon ull payment f the ot or unit. No fees,except hose

requireOor the registrationol the de6Oof sale in the Registryof Deeds, shall be

collectedor the issuance f such itle. In theeventa mortgage ver he ot or unit s

outstandingt the imeof the ssuance f the itle o thebuyer, heowneror developer

shall edeem he mortgage r thecorrespondingortionhereofwithinsix monthsrom

such issuancen ordei that the titleoverany fullypaid ot or unitmay be securedand

deliveredo thebuyer naccordanceerewith'

59



For this purpose,he official uthorizedo do so shallhave he authorityo examineunder oath the directors, officers, stockholdersor members of any corporation,partnership, ssociation, ooperative r otherpersonsassociated r connectedwiththebusinessand to issue subpoenaor subpoenaduces tecum in relation o anyinvestigationhatmayarise herefrom.

The Authoritymay alsoauthorize he Provincial,City or MunicipalEngineer,asthecasemaybe, o conduct nocular nspectionf theprojecto determine hetherhe

development f saidprojectconforms o the standards nd specifications rescribed ythegovernment.

The books,papers, etters,and other documents elongingo the personorentitiesherein mentioned hall be open to inspection y the Authorityor its duly

authorizedeoresentatives.

SEC. 35. Take-OverDevelopment. - The Authority,may take-overor cause

the development nd completion f the subdivision r condominium rojectat the

expense f theowneror developer,ointlyand severally,n caseswhere he owneror

developerhas refusedor failed o developor completehe development f the Project

asprovidedor n thisDecree.

The Authoritymay, after such tiake-over,emand,collectand receive rom the

buyers he installment aymentsdue on the lots, which shall be utilized or the

developmentf the subdivision.

SEG.36. Rules and Regulations.- TheAuthority hall ssue he necessary

standards ulesand regulationsor the effectivemplementationf the provisions f this

Decree.Suchstandards,ulesandregulationshall akeeffect mmediatelyfter heir

publicationhree(3) times a week or tvvoconsecutive eeks n any newspaper f

general irculation.

sEG. 37. Deputizationof Law EnforcementAgencies. - The Authoritymay

deputizehePhilippineonstabularyr any awenforcementgency n theexecution f

its inalorders,ulings rdecisions.

SEc. 38. Administrative Fines, . The Authoritymay prescribeand impose

finesnotexceedingen housand esos orviolationsf theprovisionsf this.Decreer

of any rule or rejulation thereunder. Fines shalt be payable o the Authorityand

enforjeable hroughwrits of executionn accordance ith the provisions f the Rulesof

Court.

sEc. 39. Penahies. - Anypersonwhoshallviolateany of the provisions f this

Decree nd/orany ruleor regulationhatmay be issuedpursuanto this D€cree hall,

uponconviction,e punished y a fine of normore han wenty housandP20,000.o0)

pesosand/or mprisonmentf notmore han en(10)years. Provided,hat-in hecase

of corporations,artnerships,ooperatives,r associations,he President,Manager r

Administratorr the personwho hascharge f theadministrationf the business hall

becriminallyesponsibleor anyviolation l thisDecree ndlor herulesand egulations

promulgatedursuanthereto.

61



SEC. 40. Liability of ControllingPersons. - Everypersonwho directlyorindirectly ontrols nypersoniableunderanyprovision f this Decree r of any ruleorregulationssued hereunderhallbe liableointlyand severally ith and to the sameextentas suchcontrolled ersonunlesshe controllingersonacted n good aithanddid not directlyor indirectly nduce he act or acts constitutinghe violationor causeofaction.

SEC.41. Other Remedies. The rights ndremedies rovidedn this Decree

shallbe in additiono anyand all other ights ndremedieshatmaybeavailable ndertheexistingaws.

SEC.42. RepealingClause. - All aws,executive rder, ulesand regulations,or parts hereof nconsistent ith he provisionsf this Decree re hereby epealed rmodified ccordingly.

SEC.43. Effectivity. ThisDecree hall akeeffectupon tsapproval.

DONE n theCityof Manila,his12th ayof July, n theyearof ourLord,nineteenhundred ndseventy-six.

(SGD.) ERDINAND.MARCOSPresident

Republic f the Philippines

By hePresident:

(sGD.)JACOBOC. CLAVEPresidentialxecutive ssistant

oz



PRESIDENT]ALECREE O.1216

DEFTNINGOPENSPACE" N RESIDENTIALUBDIVISIONNDAMENDING

SECTION 1OF PRESIDENTIALECREE O,957REQUIRING UBDIVISION

OWNERS O PROVIDE OADS, LLEYS,SIDEWALKS NDRESERVE PENFOR

PARKSOR RECREATIONAL SE

WHEREAS, there is a compellingneed to create and maintain a healthy

environmentn human settlements y providingopen spaces,roads, alleys andsidewalksas may be deemedsuitable o enhance he qualityof life of the residents,

therein;WHEREAS,such open spaces,roads, alleys and sidewalks n residential

subdivisionre orpublic seandare, herefore,eyondhecommerce f men;

WHEREAS, ursuanto presidential ecreeNo.953at least hirtypercent30%)

of the totalareaof a subdivisionmustbe reserved, eveloped nd maintained s open

space orparksandrecreationalreas,hecostofwhichwilluntimatelye borneby the

tot uuy"rt which thereby ncrease he acquisition riceof subdivisionots beyond he

reachof thecommonmass;

WHEREAS,th i r typercent (30%)requi redopenspacecanbereducedtoa|eve|that will make he subdivisionndustry'viable nd the priceof the residentialotswithin

the meansof the low ncome roupand at the samepreservehe environmentalnd

ecotogicalalancehrough at'r6nal'controlf the anduseandproperdesignof space

and acilities;

WHEREAS,pursuant toPres ident ia lDecreeNo'757 'governmente f for ts inhousing, ncluding "rori."., functionsand activitiesmaximize esultshave been

concentratedntooneslngle gency, amely'heNational ousing uthority;

Now,THEREFoRE, | ,FERDINANDE.MARcos,Pres identof thePhi | ipp ines 'byv i r tueof t 'hepowersvestedinmebytheConst i tu t ion,doherebyorderanddecree:

SECTION . Forpurposes f thisDecree'he erm openspace" hall.meanan

area reserved"r"tr"iuury-i5i

parks,ptaygrounds,ecreationalses,schools, oads,

;i;;;;;;;nif, nospitit,heatth enters, arangay enters ndothersimilaracilities

andamenities.

sEcTloN 2. Section 1 of PresidentialecreeNo.957 s herebyamendedo

readasfollows:SECTTON1. Roads,Alleys, Sidewalksand Open Spaces' - The

ownerordeve|operofasubdiv is ionsha| |prov ideadequateroads,a| |eysandsidewa|ks.Forsubdiv is ionprojectsone(1)hectareormore, theownerormorshall eservehirtypercentso%)ot thegrossarea or openspace. such open

space shall have' the foliowingstandirds allocatedexclusivelyor parks,

playgroundsnd ecreationalse:

a. 9%of grossarea orhighdensity r social ousing66 o 100 amily

lotpergrosshectare).

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o . 7% of grossarea or medium-densityr economic ousing 21 65family otpergrosshectare).

3.5%of grossarea for low-density r open markethousing 20familyotsandbelow ergrosshectare).

Theseareas eserye or parks,playgroundsnd recreationalseshallbe non-al ienable ublicands, nd non-buildable.he plansof the subdivisionroject hallinclude ree-plantingn such partsof the subdivisions may be designated y theAuthority.

Upon heircompletions certifiedo by theAuthority,he roads, lleys, idewalksand playgroundshallbe donated y theowneror developero thecityor municipalityand t shallbe mandatoryor the localgovernmentso acceptprovided, owever,haithe parksand playgroundsmay be donated o the Homeowners ssociation f thepro.iect ithconsent f the cityor municipalityoncerned.No portion f the parksandplaygroundsonatedhereafterhallbe convertedo anyotherpurpose r purposes.

sEcrloN 3. sections2 and s of presidentiarDecreeNo. 953 are herebyrepealed

nd other aws,decrees, xecutiverders,nstitutionsulesand regulationsrparts thereof inconsistentwith these provisionsareaccordingly.

also repealed or amended

SECTION . ThisDecree hall akeeffectmmediately.

. Done in rhe city of .Manira,his 14tb ay of october n the yearof our Lord,nineteen undred ndseventy even.

(sGD.)FERDTNAND.MARCOS

Presidentf hephil ippines

By hePresident:(scD.)JUANC. TUVERAPresidentialssistant

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HSRGAdministrativeOrderNo.82-01Seriesof 1982

RULES NDREGULATIONSMPLEMENTINGEC. I OFPRESIDENTIALECREE O.957,AS AMENDED Y PRESEIDENTIALECREE O.1216

PursuantoArticleV,Sec.5 (c)of Executive rderNo.648, he ollowingulesare

promulgatedo mplementec. 1of P.D.No.957, samendedyP.D.No.1216.

RuleGENERAL ROVISIONS

Section 1. Title. TheseRulesand Regulationshallbe knownas the subdivision

Regulationsn Donationsf RoadLotsandOpenSpaces, ereinafterefened o as heRules.

Section2.9s9p.9-qlAppls4!ip-l 'TheseRu|essha||app|yon|ytosubdivisionprojectsduly egistered ndior icensed y he HumanSettlements egulatory ommission.

Sect ion3.Dce!erg ! i -9 l .9 fEo]Lc . i -e9 ' | t i s thepo| i cyof thegovernment tocreateandmaintain healthy nvironmentnnumanSettlementsy proVidingpenSpaces,oads, lleys,andsidewalkss maybedeemed uitableo enhancehequality f ifeof theresidentsherein.

Rule lDEFINITIONFTERMS

Section4. gefinitiol of Terms. Forpurposes f theseRules:

a) Commissionshallmean heHumanSettlementsegulatoryommission

b) SubdivisionProject shallmeana tractwhich is partitioned rimarily or resident

improvementshereon, ndofferedo the

shal l nclude l l esidential ,ommercial,r

spaces ndother ommunityndpublic reasn heproject;

c) Open space - shall mean an area reservedexclusively or parks' playgrounds''

recreationalses,andothersimilar acilities nd amenities'

d) Road ots - shall nclude oads,sidewalks, lleysand planting trips,and its gutters'

drainage nd sewerage.

Rule l lAPPROVAL FAPPLICATIONOR

CERTIFICATE FCOMPLETION

section 5. Application for Gertificateof completion. Everyregisteredowneror

developer t a subdVision rolEct nowishes o donatehe road otsand opensp?ceof the

same o the ocalGovernmentnalt irstapplywith heCommissionor Certificatef Completion

by ilingn triplicatehe ollowing:

application orm duly filled up; and

letierof Intent o Donate he road otsand openspace o the ocalGovernment.1 )

2)

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Section 6. Procedures. Upon receiptof the application,he Commissionncoordinationith heCity/Municipalityoncernedhallconduct n nspectionf thesubdivision.The inspector(s) hall then prepare his/her findings and/or recommendationo theCommissioner-in-chargehowillacton thesame.

SectionZ. AppfSyel. lf the factsstated n the applicationor Certificate f Completionare ound o be trueand correct,he applicationhallbe approvedhroughhe ssuance f theCertiticatefCompletiony heCommission.

Thereafter,he registeredwneror developerhallsubmit he Certificatef complefronissuedby the Commissiono the City/Municipalityoncernedogetherwith his/herDeed ofDonation.

RuleVEFFECTS FDONATION F ROADLOTS/OPENPACE

Section8. Riqhtof Graeteeo DonateRoadLotsandOpenSDace.Anypersonwhois able o securea Certificate f Completionrom he Commissionnilt nave ne rioht o donatethe road lols and open space o the city/Municipalityoncerned, rovided ha-t he parks,playgroundsnd recreationalse may be donated o the Homeowners ssociation f thesubdivisionith heconsent f theCity/Municipalityoncerned.

- Section9. -E,f-fectC.nce he registered wneror developer assecuredhe Certificateof comp{etionndhasexecuted Deed f Donationf RoadLotsandOpenSpace, e/she hallbe deemed elieved f the responsibilityf maintaininghe road otsand openspaceof thesubdivisionotwithstandinghe efusal f City/Municipalityoncernedo accepthedonation.

should he registered wneror deveroper erely ecurea certificate f completionwthout makjng_he correspondilgdeedof donation, e/sires still deemed esponsibieor themaintenancef thesubdivisionacilitiesn which asea reasonablemounl f theperformancebondshallreservedo guaranteehe maintenancef the roadandopen

"p""".ThL reserved

amount.shalle totarryereasedy hecommission nlyuponshowing y he registereowner

ordeveloperf proof f a deedof donationxecutedn ivor of hecity'/Municipartyoncerneo.

qandOpenSpace.Road otsandopenspacesunicipalityr to theHomeownersssociationspurpose r purposes. n connectionherewith,

arienabreands,nd obuirdinsrstructurer:"'i;Jlfi?fj[nilff"?1"j;t'ir".,3i'1n13n"essentialo lhe saidopenspaceas deterrninedytheCity/Municipaliiy.

should he owner-donee ish_tochangeor arter he use of the openspace n thesubdivision,riorpermissionrom hecommission"nJ

*ritt"n conformityf theduryorganrzeonomeowners ssociation, r in the absenceof the ratterby the majorityof tne rotbuyers n thesubdivisionhallbe required rovidedhat he requiredpenspace hall ikewise eallocatednotherareas f thesubdivision.

RuleMISCELLANEIOUSROVISIONS

Section 11. Eqes. Untilsuch time hat he Commissionhallhavescheduleof fees, it shattapply and collect he insfection feesprovidedimplementingulesof pD 9S7and ts elatedaws.

adopted a newfor under the

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Section12. SeparabilitvClause. Theprovisionsf these ulesare hereby eclared

separable,nd n theeventanyof suchprovisionsredeclared ullandvoid, hevalidity f all

otherprovisionshallnotbe affected hereby.

Section13. EffeclMy. These ules hall akeeffectmmediatelyfter tspublicationn

a newspaperfgeneral irculation.

Promulgated,6 August 982,Makati,MetroManila.

(sGD.) ERNESTO .MENOIOLACommissionerndChiefExecutive fficer

(sGD.) ARTUROC. CORONACommissioner

(sGD.) SALVADOR . SOCRATES

Commissioner

(sGD.) GESARO. MARQUEZCommissioner

Attested:

(SGD.) JESUSN, BORROMEOCommissioner

(SGD.) ABNERP. CANLASCommissioner

(SGD,) RAMONB. CARDENA

Commissioner

(SGD.) EUFEMIO .DACANAYActingCommission ecretary

o /

pd on selling re props

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