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Questions and Answers
Under what circumstance can the Authority revoke the registration of a subdivision project?
What does the Authority require from real estate dealers before they can sell property?
What action is considered sufficient cause for cancellation if the owner is a partnership or corporation?
Which of the following factors is NOT a reason for the Authority to revoke a license to sell?
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What must be demonstrated for the Authority to revoke a registration based on bad business repute?
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What type of records does the Authority maintain regarding subdivision lots and condominium units?
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Who is liable for the conduct of a corporation that their registration may be cancelled?
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In which of the following scenarios can the Authority NOT cancel registration?
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What is the purpose of the performance bond in favor of the Republic of the Philippines?
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Which transaction is exempt from requiring a license to sell?
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What action may the Authority take upon receiving a verified complaint from a buyer?
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Under what condition can the Authority lift a suspension order?
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When is the suspension of the right to sell deemed confidential?
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What might lead the Authority to suspend a license motu proprio?
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What can result in a revocation of the registration certificate and license to sell?
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Which action is NOT exempt from requiring a license to sell?
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What must occur before a hearing for suspension or revocation of a registration certificate can proceed?
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What is the nature of the proceedings in the hearing for the revocation of a registration certificate?
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What powers do the designated officers have during the hearing process?
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What penalty can be imposed for direct contempt during the hearing?
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How soon must a decision on the case be rendered after it is submitted?
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What characterizes the hearing in regard to the application of legal rules?
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What constitutes direct contempt in the context of the hearing?
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What is a possible consequence of indirect contempt during the hearing process?
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What can the Authority do if the owner or developer fails to complete the project?
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How may the Authority collect installment payments from buyers after taking over the project?
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What is the maximum fine the Authority can impose for violations of the Decree?
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What penalty can a person face for violating the provisions of the Decree?
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Who is held criminally responsible for violations by corporations under this Decree?
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What must the Authority do to make standards, rules, and regulations effective?
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In case a controlling person is liable under this Decree, what is their liability?
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What agencies may the Authority deputize to execute its decisions?
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What option does the owner or developer have upon completion of a subdivision or condominium project?
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What is needed for the conversion of donated areas to other purposes?
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What is the minimum area that each phase of a subdivision project must cover?
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What happens to any provision in a contract of sale that waives compliance with the Decree?
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Who has the authority to inspect the affairs of entities involved in the business of selling subdivision lots?
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What must the books and documents of any entity engaged in selling subdivision lots be available for?
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What can the Provincial, City, or Municipal Engineer do regarding a subdivision project?
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What must the development of each phase of a subdivision comply with?
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Study Notes
Performance Bonds and Licensing
- Performance bonds are executed in favor of the Republic of the Philippines, allowing the Authority to use proceeds for its undertakings if forfeited.
- A license to sell and performance bond are not mandatory for exempt transactions such as:
- Sale of subdivision lots among co-owners and heirs.
- Sale or transfer by the original purchaser or subsequent buyers.
- Sale by a mortgagee for debt liquidation.
Suspension and Revocation of Licenses
- The Authority can immediately suspend a dealer's or owner's license if a verified complaint arises from a buyer, pending investigation.
- Licenses may also be suspended if registration statements are found misleading or fraudulent.
- Suspension orders remain confidential until violations occur.
- Revocation of registration certificates can happen under several conditions, including:
- Insolvency of the owner or dealer.
- Violations of the Decree or fraudulent activities.
- Misrepresentation in promotional materials.
- Poor business reputation.
Registers and Record-Keeping
- The Authority maintains records of subdivision lots and condominium units, which are subject to public inspection.
- All orders affecting the status of these properties are recorded.
Registration of Dealers, Brokers, and Salesmen
- All real estate dealers, brokers, and salesmen must register with the Authority to legally sell subdivision lots and condominium units.
Hearing Procedures for Complaints
- Hearings regarding license suspension or revocation must provide:
- Notice to the respondent about the complaint.
- A venue designated by the Authority for the hearing.
- Non-litigious and summary proceedings without strict court rules.
- Officers can administer oaths, subpoena witnesses, and gather relevant records during hearings.
Contempt and Decisions
- Direct contempt can lead to fines or imprisonment for misbehavior during hearings.
- Decisions should be finalized within thirty days after the hearing's conclusion.
Project Development and Phasing
- Registered developers may choose to convey roads and open spaces to local governments once projects are completed, ensuring no conversion to other uses without Authority approval.
- Developments may be divided into phases, with specific requirements for each phase based on territory.
Authority Oversight and Powers
- The Authority has visitorial powers to examine business conditions and practices of those selling subdivision lots and condominium units.
- It may appoint engineers for ocular inspections to ensure compliance with development standards.
Development Takeover and Regulation
- The Authority can take over project completion if owners fail to meet obligations.
- It can collect installment payments from buyers to finance the project's development.
Rule Implementation and Enforcement
- The Authority sets and publishes rules and regulations for the Decree's effective implementation.
- Fines for violations may reach ten thousand pesos, enforceable through court processes.
Penalties and Liability
- Individuals violating Decree or regulations could face fines up to twenty thousand pesos and/or imprisonment up to ten years.
- Corporate leaders can be held accountable for violations committed under their administration.
- Controlling persons can share liability for violations unless they acted in good faith.
Additional Remedies
- Provisions include exploring various legal and administrative remedies for enforcement and compliance with the Decree's regulations.
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Description
Test your knowledge on performance bonds and licensing laws in the Philippines. This quiz will cover the execution of performance bonds, exemption from licenses for certain transactions, and the conditions under which licenses can be suspended or revoked. Challenge yourself with various scenarios and legal concepts.
