MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 957 July 12, 1976
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 with ample opportunities for improving their quality of life;
WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or sellers have reneged on their representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus endangering the health and safety of home and lot buyers;
WHEREAS, reports of alarming magnitude also show cases of swindling 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 taxes, and fraudulent sales of the same subdivision lots to different innocent purchasers for value;
WHEREAS, these acts not only undermine the...
Details
Amends
n/a
Amended by
n/a
Presidential Decrees
SUBDIVISION AND CONDOMINIUM BUYERS' PROTECTIVE DECREE
Presidential Decree No. 957
SUMMARY OF PRESIDENTIAL DECREE NO. 957
Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for Violations
I. TITLE AND DEFINITIONS (Section 2)
- Defines key terms used in the Decree, including:
• Person (natural or juridical)
• Sale or sell (disposition of subdivision lot or condominium unit)
• Buy and purchase (acquiring subdivision lot or condominium unit)
• Subdivision project (tract of land partitioned for residential purposes)
• Subdivision lot (individual lots in a subdivision project)
• Complex subdivision plan (subdivision plan with streets, passageways, open spaces)
• Condominium project (parcel of real property divided into condominium units)
• Condominium unit (part of condominium project for independent use)
• Owner, Developer, Dealer, Broker, Salesman, Authority (National Housing Authority)
II. REGISTRATION AND LICENSE TO SELL (Sections 3-9)
• National Housing Authority has exclusive jurisdiction to regulate real estate trade and business. (Section 3)
• Subdivision and condominium plans must be approved by the Authority and registered. (Section 4)
• Owner or dealer must register the project and obtain a license to sell from the Authority. (Sections 4-5)
• Performance bond required to guarantee construction and maintenance of the project. (Section 6)
• Exemptions from license and bond requirements for certain transactions. (Section 7)
• Authority may suspend or revoke registration and license for violations or fraudulent acts. (Sections 8-9)
III. DEALERS, BROKERS, AND SALESMEN (Sections 11-12)
• Dealers, brokers, and salesmen must register with the Authority and file a bond. (Section 11)
• Authority may refuse or revoke registration for violations or fraudulent acts. (Section 12)
IV. PROCEDURE FOR REVOCATION (Sections 13-16)
• Hearing procedures for suspension or revocation of registration and license. (Section 13)
• Contempt powers of the Authority during hearings. (Section 14)
• Decision must be issued within 30 days, may order revocation, suspension, or bond forfeiture. (Section 15)
• Authority may issue cease and desist orders for violations. (Section 16)
V. REQUIREMENTS AND OBLIGATIONS (Sections 17-35)
• Contracts, deeds, and instruments must be registered with the Register of Deeds. (Section 17)
• Mortgages on units or lots require prior approval from the Authority. (Section 18)
• Advertisements must reflect real facts and not mislead the public. (Section 19)
• Facilities and improvements must be completed within 1 year or set period. (Sections 20-21)
• Alteration of plans requires permission from the Authority and homeowners. (Section 22)
• Payments by buyers cannot be forfeited for developer's failure to develop the project. (Section 23)
• Rights of defaulting buyers governed by Republic Act No. 6552. (Section 24)
• Title must be delivered to buyer upon full payment, without additional fees. (Section 25)
• Real estate taxes paid by owner or developer until title is transferred to buyer. (Section 26)
• No fees for alleged community benefits, except by homeowners association. (Section 27)
• Access to public offices and right of way to public road must be provided. (Sections 28-29)
• Homeowners association must be organized by the owner or developer. (Section 30)
• Roads and open spaces may be donated to local government upon completion. (Section 31)
• Subdivision may be developed in phases, with requirements applied to each phase. (Section 32)
• Waivers of compliance with the Decree or rules are void. (Section 33)
• Authority has visitorial powers to examine business affairs and conduct inspections. (Section 34)
• Authority may take over and complete the development at the owner's expense. (Section 35)
VI. IMPLEMENTATION AND PENALTIES (Sections 36-43)
• Authority to issue rules and regulations for implementation. (Section 36)
• Authority may deputize law enforcement agencies for execution of orders. (Section 37)
• Administrative fines up to P10,000 may be imposed for violations. (Section 38)
• Criminal penalties of fine up to P20,000 and/or imprisonment up to 10 years. (Section 39)
• Controlling persons liable jointly and severally with controlled persons. (Section 40)
• Other remedies available under existing laws. (Section 41)
• Repealing inconsistent laws, executive orders, rules, and regulations. (Section 42)
• Effectivity upon approval. (Section 43)
Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for Violations
I. TITLE AND DEFINITIONS (Section 2)
- Defines key terms used in the Decree, including:
• Person (natural or juridical)
• Sale or sell (disposition of subdivision lot or condominium unit)
• Buy and purchase (acquiring subdivision lot or condominium unit)
• Subdivision project (tract of land partitioned for residential purposes)
• Subdivision lot (individual lots in a subdivision project)
• Complex subdivision plan (subdivision plan with streets, passageways, open spaces)
• Condominium project (parcel of real property divided into condominium units)
• Condominium unit (part of condominium project for independent use)
• Owner, Developer, Dealer, Broker, Salesman, Authority (National Housing Authority)
II. REGISTRATION AND LICENSE TO SELL (Sections 3-9)
• National Housing Authority has exclusive jurisdiction to regulate real estate trade and business. (Section 3)
• Subdivision and condominium plans must be approved by the Authority and registered. (Section 4)
• Owner or dealer must register the project and obtain a license to sell from the Authority. (Sections 4-5)
• Performance bond required to guarantee construction and maintenance of the project. (Section 6)
• Exemptions from license and bond requirements for certain transactions. (Section 7)
• Authority may suspend or revoke registration and license for violations or fraudulent acts. (Sections 8-9)
III. DEALERS, BROKERS, AND SALESMEN (Sections 11-12)
• Dealers, brokers, and salesmen must register with the Authority and file a bond. (Section 11)
• Authority may refuse or revoke registration for violations or fraudulent acts. (Section 12)
IV. PROCEDURE FOR REVOCATION (Sections 13-16)
• Hearing procedures for suspension or revocation of registration and license. (Section 13)
• Contempt powers of the Authority during hearings. (Section 14)
• Decision must be issued within 30 days, may order revocation, suspension, or bond forfeiture. (Section 15)
• Authority may issue cease and desist orders for violations. (Section 16)
V. REQUIREMENTS AND OBLIGATIONS (Sections 17-35)
• Contracts, deeds, and instruments must be registered with the Register of Deeds. (Section 17)
• Mortgages on units or lots require prior approval from the Authority. (Section 18)
• Advertisements must reflect real facts and not mislead the public. (Section 19)
• Facilities and improvements must be completed within 1 year or set period. (Sections 20-21)
• Alteration of plans requires permission from the Authority and homeowners. (Section 22)
• Payments by buyers cannot be forfeited for developer's failure to develop the project. (Section 23)
• Rights of defaulting buyers governed by Republic Act No. 6552. (Section 24)
• Title must be delivered to buyer upon full payment, without additional fees. (Section 25)
• Real estate taxes paid by owner or developer until title is transferred to buyer. (Section 26)
• No fees for alleged community benefits, except by homeowners association. (Section 27)
• Access to public offices and right of way to public road must be provided. (Sections 28-29)
• Homeowners association must be organized by the owner or developer. (Section 30)
• Roads and open spaces may be donated to local government upon completion. (Section 31)
• Subdivision may be developed in phases, with requirements applied to each phase. (Section 32)
• Waivers of compliance with the Decree or rules are void. (Section 33)
• Authority has visitorial powers to examine business affairs and conduct inspections. (Section 34)
• Authority may take over and complete the development at the owner's expense. (Section 35)
VI. IMPLEMENTATION AND PENALTIES (Sections 36-43)
• Authority to issue rules and regulations for implementation. (Section 36)
• Authority may deputize law enforcement agencies for execution of orders. (Section 37)
• Administrative fines up to P10,000 may be imposed for violations. (Section 38)
• Criminal penalties of fine up to P20,000 and/or imprisonment up to 10 years. (Section 39)
• Controlling persons liable jointly and severally with controlled persons. (Section 40)
• Other remedies available under existing laws. (Section 41)
• Repealing inconsistent laws, executive orders, rules, and regulations. (Section 42)
• Effectivity upon approval. (Section 43)