Philippine Presidential Decree 957 Quiz

Philippine Presidential Decree 957 on Subdivision and Condominium Buyers' Protection

• The decree becomes final 15 days after receipt of the decision
• The Housing and Land Use Regulatory Board (HLURB, now DHSUD) can issue a cease and desist order for violations
• Owners or developers must complete compliance with obligations within two years from the date of Presidential Decree 957 (PD 957)
• The title of the lot or unit should be delivered to the buyer upon full payment
• The owner or developer should pay real estate tax and assessment until the title passes to the buyer
• No fees except those for registration of the deed of sale shall be collected for title issuance
• Fees for common services can only be collected with the consent of a majority of lot or unit buyers
• The owner or developer must initiate the organization of a homeowners association
• The registered owner or developer may donate roads and open spaces to the local government
• The HLURB (now DHSUD) can take over or cause the development and completion of the project at the expense of the owner or developer
• The HLURB (now DHSUD) may impose fines not exceeding P10,000 for violations
• Violators of the decree can face a fine of not more than P20,000 and/or imprisonment of not more than 10 years

Real Estate Regulations and Revocation Procedures

• The HLURB (now DHSUD) can lift a suspension order for a subdivision or condominium project if the registration statement is accurate or deficiencies are corrected, and the sale will not be fraudulent.
• The suspension order is confidential until it's violated or a dismissal of the complaint for lack of legal basis occurs.
• The Authority can revoke the registration and the license to sell if the owner or dealer is insolvent, violates laws, engages in fraudulent transactions, or makes misrepresentations.
• Revocation can also happen if a partnership, corporation, or association member is guilty of acts that would revoke an individual's registration.
• Registration may be refused or revoked if the applicant or registrant violates laws, makes false statements, commits fraudulent acts, or demonstrates unworthiness.
• The Authority can order the suspension of a dealer's, broker's, or salesman's registration pending a hearing, and the suspension extends to all the salesman.
• The hearing for suspension and/or revocation of registration certificate and license to sell requires notice, non-litigious and summary proceedings, and the power to administer oaths and subpoena witnesses.
• The officer designated by the HLURB (now DHSUD) can adjudge direct contempt for misbehavior or refusal to answer as a witness during the hearing.
• Indirect contempt may also be adjudged on grounds and in the manner prescribed in the Revised Rules of Court.
• The case must be decided within thirty days from the time it's submitted for decision, and the decision may order the revocation of the registration or the forfeiture of the performance bond.
• If the forfeiture of the bond is ordered, the decision may direct the construction of roads and other requirements for the subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited.
• The regulations provide detailed procedures for suspension, revocation, and contempt, ensuring compliance and accountability in the real estate sector.