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Questions and Answers
What is the primary purpose of PD 957?
What is the primary purpose of PD 957?
Which government agency is designated to oversee the regulation of real estate subdivisions and condominiums?
Which government agency is designated to oversee the regulation of real estate subdivisions and condominiums?
What must developers provide according to PD 1216?
What must developers provide according to PD 1216?
What is a common violation that PD 957 seeks to address?
What is a common violation that PD 957 seeks to address?
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In the context of PD 957, a 'buyer' is best defined as:
In the context of PD 957, a 'buyer' is best defined as:
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What types of penalties does PD 957 impose?
What types of penalties does PD 957 impose?
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What aspect of subdivision projects does PD 957 require registration for?
What aspect of subdivision projects does PD 957 require registration for?
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Which of the following is NOT a defined term under PD 957?
Which of the following is NOT a defined term under PD 957?
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What must an owner or developer do if a mortgage is outstanding at the time of title issuance?
What must an owner or developer do if a mortgage is outstanding at the time of title issuance?
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Who is responsible for real estate tax and assessment until the title has passed to the buyer?
Who is responsible for real estate tax and assessment until the title has passed to the buyer?
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When is a buyer liable for real estate taxes after taking possession of a property?
When is a buyer liable for real estate taxes after taking possession of a property?
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What restrictions are placed on an owner or developer regarding fees for community benefits?
What restrictions are placed on an owner or developer regarding fees for community benefits?
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What right must an owner or developer secure if there is no existing public road access?
What right must an owner or developer secure if there is no existing public road access?
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What is the purpose of organizing a homeowners association as outlined for developers?
What is the purpose of organizing a homeowners association as outlined for developers?
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What must developers do regarding access to public offices within a subdivision?
What must developers do regarding access to public offices within a subdivision?
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What should a homeowner association's fee structures aim to finance according to regulations?
What should a homeowner association's fee structures aim to finance according to regulations?
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What must an owner or developer obtain before altering any public infrastructure or facilities in a subdivision?
What must an owner or developer obtain before altering any public infrastructure or facilities in a subdivision?
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If a buyer chooses to stop payments due to the developer's failure to develop the project as promised, what is their right regarding payments?
If a buyer chooses to stop payments due to the developer's failure to develop the project as promised, what is their right regarding payments?
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What governs the rights of a buyer who fails to pay installments for reasons other than the developer's failure?
What governs the rights of a buyer who fails to pay installments for reasons other than the developer's failure?
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When must a developer deliver the title of a lot or unit to the buyer?
When must a developer deliver the title of a lot or unit to the buyer?
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What type of interests are excluded from the total reimbursement amount a buyer may claim when they stop payments?
What type of interests are excluded from the total reimbursement amount a buyer may claim when they stop payments?
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What happens to a buyer’s rights under Republic Act No. 6552 if their transaction was initiated before the law's effectivity?
What happens to a buyer’s rights under Republic Act No. 6552 if their transaction was initiated before the law's effectivity?
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Which of the following is NOT a requirement for an owner or developer to change subdivision plans?
Which of the following is NOT a requirement for an owner or developer to change subdivision plans?
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What is the primary purpose of Section 24 regarding failure to pay installments?
What is the primary purpose of Section 24 regarding failure to pay installments?
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Study Notes
Presidential Decree 957 and 1216
- PD 957: Subdivision and Condominium Buyers' Protective Decree
- PD 1216: Amendment requiring subdivision owners/developers to provide adequate roads, alleys and sidewalks in their projects.
Purpose of PDs 957 and 1216
- Aims to provide proper human settlement and improve the quality of life for inhabitants
- Addresses failures by real estate developers and sellers to fulfill obligations, thus endangering home and lot buyers.
- Regulates the sale of subdivision lots and condominiums
- Addresses issues of fraudulence and swindling impacting the new society's land and housing programs.
PD 957: Definitions
- Person: Defined term for individuals in the decree.
- Sale/Sell: Defined term(s)
- Buy/Purchase: Defined term(s).
- Condominium project: Defined term.
- Condominium unit: Defined term.
- Owner: Defined term.
- Developer: Defined term.
- Dealer: Defined term.
- Broker: Defined term.
- Salesman: Defined term.
- Authority: Refers to the National Housing Authority.
Registration and License to Sell
- National Housing Authority has exclusive jurisdiction to regulate real estate.
- Registered land owners wishing to subdivide must submit subdivision plans to the Authority.
- Plans must comply with the Subdivision Standards and Regulations in effect at submission time.
Registration Process for Subdivision and Condominium Projects
- Subdivision Plan: Approved plan is submitted to the Director of Lands. Further approval and adherence to Land Registration Act procedures.
- Condominium Plan: Plan requires approval, ensuring compliance with the National Building Code (R.A. No. 6541). Then submitted to Register of Deeds.
Registration with the Authority
- Project owners or real estate dealers must register projects by filing a sworn registration statement.
- Required information includes:
- Owner's name.
- Principal business office location.
- Directors' and officers' names and addresses.
- Business character.
- Capitalization details (including stock information).
Documents Required
- Approved subdivision/condominium plan copy.
- Marketing materials (brochures, prospectuses, advertisements).
- Financial statements, articles of incorporation/partnership, amendments and existing bylaws for business firms.
- Title free from encumbrances. Mortgages must be released upon full payment.
License to Sell and Performance Bond
- Registration certificate holders cannot sell subdivision lots/condominium units without a license.
- License to sell issued within 2 weeks of project registration.
- Adequate performance bond required to guarantee construction and maintenance of roads, gutters, drainage, sewerage, water system, lighting systems and full project development (approved by Authority).
Exempt Transactions
- No license/performance bond required for sales resulting from co-owner land partition.
- No license/performance bond for sales by original buyer or subsequent sale of the same subdivided lot, nor for mortgagee sales in the normal course of business when liquidating a bona fide debt.
Suspension of License to Sell
- Authority may suspend license upon verified complaint alleging buyers' or interested parties' concerns of subdivision/condominium unit problems. Further investigation and hearing follows.
Revocation of Registration Certificate and License to Sell
- Authority can revoke registration if satisfactory evidence exists that the owner/dealer is insolvent; violated rules/regulations; engaged in fraudulent transactions; misrepresented project; conducts business unsatisfactorily.
Registers of Subdivision Lots and Condominium Units
- Authority maintains a record of subdivision and condominium units and status updates (orders).
- Records are open to public inspection.
Registration of Dealers, Brokers and Salesmen
- Dealers, brokers, and salesmen must register with the Authority.
Revocation of Registration
- Authority may revoke registration for violations of the Decree, false statements in application, fraudulent acts in sales, proven unworthiness to conduct dealer/broker/salesman business
Sections 14 to 19 details
- Contempt procedures.
- Decision deadlines for cases.
- Requirements for mortgage approvals.
- Advertisement standards and requirements.
Time of Completion
- Owners/developers must complete structures/facilities within one year from license issuance.
Sales Prior to Decree
- Owners/developers (for sales prior to decree enforcement) must comply with obligations within two years of decree.
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