Presidential Decree No. 957 and Batas Pambansa Blg.

220

In Partial Fulfillment of the Requirements in

Site Planning & Landscape Architecture

Bachelor of Science in Architecture

To be Presented to

Arch./EnP. Gerelson Ray Ruloma Bernardino, uap, piep, mscm

By
Bautista, Ariane Joy R.
ARCH-3A

April 29, 2021

pg. 1
 TABLE OF CONTENTS

Abstract………………………………………………………………………… 3

Table of Contents…………………………………………………….………... 2

Introduction…………………………………………………………………….. 3

Body…………………………………………………………………………….. 4

CONCLUSION…………………………………………………………………… 13

RECOMMENDATION…………………………………………………………… 14

REFERENCES…………………………………………………………………… 14

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 ABSTRACT

In light of the rapid growth and movement of the company and investment
processes, it would be beneficial if the property client understands the rights that come
with each and every business transaction in which they are involved. The customer or
investor must be completely conscious of the legal guidelines that protects them in case
of unexpected eventualities that may also occur. Knowing and appreciation the regulation
will defend you from each person who might take gain of them. But greater than the
citizens, the authorities have the duty also to shield its human beings from being taken
advantage of. In relation to this, the advent of laws that will facilitate and inspire the
building of economic and socialized housing projects, usually by using the personal
sector, in order to furnish enough monetary and socialized housing units for common and
low-income earners in city and rural areas were declared by the government. Laws that
are related to this will be discuss in this research, particularly the Presidential Decree No.
957 and the Batas Pambansa Blg. 220. For facts gathering, tutorial books and journals
will be used as references and thru the help of supportive statistics that will be gathered
from the internet.
INTRODUCTION
As the Philippines' real estate market anticipates further growth, the public now
has a greater number of options when it comes to selecting a real estate agent. However,
it would be perplexing as to how the people's safety and security can be assured, and
how the government can safeguard the proper to safe haven of the familiar public.The
authorities have preferences for regulating the industry. For instance, to shield its humans
from being taken advantage of, the Subdivision and Condominium Buyer’s Protective
Decree on “regulation the sale of subdivision a lot and condominiums, providing penalties
for violations thereof.” was declared. Another subject that will happen how the authorities
regulates the enterprise to guard its human beings is the advertising of financial housing
gadgets for the low-income earners which are stated in the Batas Pambansa Blg. 220.
It is vital that not only the client is aware of what rights they have however also the
companies and the workers worried in the system of purchasing and building housing
units, to in addition improve the safety every purchaser must-have. In this research, the
rights worried in the Presidential Decree No. 957 and Batas Pambansa Blg. 220 will be
elaborated. This research is solely restricted to the assertion of its importance, its
purpose, and the practitioners involved. All other facts that are now not cited here are
now not covered in the scope of this research.

BODY

Presidential Decree No. 957

As defined by Puno (2017), PD957 is a law that seeks to regulate the sale of
subdivision lots and condominiums in view of the increasing number of incidents

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wherein “real estate subdivision owners, developers, operators, and/or sellers have
reneged on their representations and obligations to proved and maintain properly” the
basic requirements and amenities, as well as “reports of alarming magnitude… of
swindling and fraudulent manipulations perpetrated by unscrupulous subdivision and
condominium sellers and operators.” As such, P.D. 957 requires the registration not
just of the developers, seller, brokers and/or owners of the project but also of the
project itself. Upon the registration of the project, a license to sell must be obtained
prior to the sale of the subdivision lots or condominium units therein. The law also
provides for the suspension and revocation of the registration and license in certain
instances, as well as the procedure to be observed in the event thereof. Finally, the
law provides for administrative fines and other penalties in case of violation of, or non-
compliance with its provisions.

Nature

Presidential Decree 957 was passed during the administration of the late
President, Mr. Ferdinand E. Marcos, to closely supervise and control real estate
professionals, owners, and developers in the Philippines. On July 12, 1976, the late
president initiated and signed it in Manila.The main goal of this legislation is to protect
consumers from all forms of real estate misrepresentations. The state has passed
legislation to address the frequent false reports of real estate issues around the
country.

Importance

According to Great Homes Philippines, "buying a real property can be a

rewarding experience especially if it is done with due diligence and care. To avoid
having sleepless nights and spare the headache caused by an erroneous transaction
one must know his rights." The PD 957 aims to monitor and prevent failure to perform,
reneged on representations and obligations, swindling and fraudulent manipulations,
and reneged on representations and obligations. It consists of rules and regulations
that govern the purchase and sale of a home or condominium, from the point of sale
to unit turnover and ownership transfer. It also outlines the laws that control buyers'
post-sale rights and the developer's responsibilities. It outlines policies for dealing with
real estate professionals such as developers, dealers, brokers, and salespeople or
agents. It empowers the National Housing Authority (NHA) to have exclusive
jurisdiction to regulate real estate trade and business. At present, Housing and Land
Use Regulatory Board (HLURB) is now the key government agency to implement this

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law. Moreover, it outlines the licensing process and procedures, as well as the
punishments and penalties for any illegal transactions carried out by real estate
professionals.
As stated by Batas Natin Legal Services, "One of the purposes of P.D. 957 is to
discourage and prevent unscrupulous owners, developers, agents and sellers from
reneging on their obligations and representations to the detriment of innocent
purchasers." The legislation requires the HLURB to closely control the real estate
industry, including subdivisions and condominium projects. P.D. 957, for example,
allows for the issuance, suspension, revocation, and even outright denial of registration
and license to developers, agents, and the project itself, as well as penalties for non-
compliance with the requirements. It does not allow for the cancellation of a contract
due to a lack of registration and license at the time of execution. The requirement for
registration and license, as correctly stated is intended to prevent fraudulent schemes
from being perpetrated on the general public who wish to own their own home.
Although the absence of a certificate and registration is punishable under the statute,
it is not sufficient to make a contract void. However, if the circumstances warrant, such
a deficiency, along with other applicable factors, can be taken into account in nullifying
a contract.

Real-estate Practitioners

Real estate practitioners are the people to work with when it comes to selling or
buying a subdivision lot, home, or condominium. The creators, distributors, brokers,
and salesmen or agents are all required to be registered. The person who designs or
enhances the subdivision project or condominium project for and on behalf of the
owner is referred to as a "developer." Any individual directly engaged as a principal in
the business of buying, selling, or trading real estate, whether full-time or part-time, is
referred to as a "dealer."Any individual who undertakes to sell or negotiate the sale of
another's real estate for a fee or other reward is referred to as a "broker." In addition,
the term "salesman" refers to a person who is regularly employed by a broker to
perform any or all of the functions of a real estate broker on his behalf.

Buyer

This law is intended to protect buyers' rights while also encouraging healthy
competition among real estate agents. When buying a house, as a buyer, you should
verify and confirm the person you're dealing with. In order to identify who to deal with
and to distinguish the credible practioners, there are requirements which the buyers
could check. First is the Registration Certificate, if a developer meets the appropriate

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standard for developing projects in compliance with Subdivision Standards and
Regulations for horizontal developments or the National Building Code for vertical
developments, HLURB releases this. Another requirement that can be presented as
proof of credibility of the practioner if their lisence to sell. HLURB makes this available
for developers to sell units after it has been licensed. The certificate is granted based
on the developer's ability to deliver and the absence of any fraudulent activity.
Moreover, Dealer, Broker, and Salesman must have an HLURB ID/Certificate of
Registration. All dealers, brokers, salesmen, or agents involved in the sale of
subdivisions or condominiums are required to register with HLURB. The registration is
valid for one year and must be renewed in order to continue to participate in real estate
transactions.

This statute enumerates for the public's benefit their right to a private shelter. If
not for this rule, the economy will continue to be at risk as real estate prices increase
year after year. When working with real estate professionals in every transaction, it is
best to understand your rights as a buyer.

Non-Forfeiture of Payments

If a buyer who is not delinquent, and after due notice, ceases from further payment
due to the developer's inability to complete the construction within the prescribed time
frame, no installment of the buyer can be forfeited by the developer. The buyer can be
reimbursed with the total sum charged, including amortization interest, plus interest at
the legal rate, at his discretion.

Mortgage of Project and Representation in Ads

The project owner/developer could not mortgage any lot without first obtaining
a mortgage permit from HLURB. The buyer may choose to pay his installment directly
to the mortgage if the developer executed a mortgage pursuant to an HLURB permit.
Advertisements, brochures, flyers, and other announcements made by the developer
about construction facilities and infrastructures, on the other hand, are considered part
of the key contract and are enforceable against the developer.

Planning and Accessibility

Any changes to the approved plan involving highways, open fields, services, or
other types of construction require HLURB (now LGU) approval and written consent

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from the Homeowners Association. When a project does not have access to an existing
public road, the developer must obtain a right of way that must be built and maintained
in accordance with the government's requirements.

Batas Pambansa Blg. 220

According to Villegas (2013), Among the basic needs of the poor living in urban
areas, the one that makes the biggest contribution to enhancing their human dignity is
decent housing. If we consider that food, shelter, clothing and education are among
the most basic of their needs, it is shelter that is the most visible manifestation of the
dignity of a human being. The poor can survive on rice, fish and vegetables and
maintain their dignity vis-a-vis the well-to-do.
The Filipino poor are also very resourceful in preserving a dignified and clean
appearance even with the simplest of wardrobes, resorting to regular washing and
maintaining good condition of their clothing. In urban areas, their children normally
have no trouble getting into public schools. But it is being forced to live in hovels and
makeshift barongs that most offends their human dignity. But it is being forced to live
in hovels and makeshift "barong barongs" in filthy and unsanitary slum areas that most
offends their human dignity. Poor people's self-esteem is severely harmed by such
inhumane living conditions. That is why it is very important that there be sustained and
vigorous effort of the government both national and local, the business sector, and civil
society to implement the provisions whose objectives are to uplift conditions of
underprivileged and homeless citizens in urban and resettlement areas through decent
housing at affordable cost, coupled with basic services and employment opportunities.

Definition of Terms

Subdivision Project. - "Subdivision Project" shall mean a tract or a parcel of land

registered under Act No. 496 which is partitioned primarily for residential purposes into
individual lots with or without improvements thereon, and offered to the public for sale,
in cash or in installment terms. It shall include all residential, commercial, industrial and
recreational areas, as well as open spaces and other community and public areas in
the project

Complex Subdivision Plan. - "Complex Subdivision Plan" shall mean a subdivision

plan of a registered land wherein a street, passageway or open space is delineated on
the plan

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Condominium Project. - "Condominium Project" shall mean the entire parcel of real
property divided or to be divided primarily for residential purposes into condominium
units, including all structures thereon.

Condominium Unit. - "Condominium Unit" shall mean a part of the condominium

project intended for any type of independent use or ownership, including one or more
rooms or spaces located in one or more floors (or part of parts of floors) in a building
or buildings and such accessories as may be appended thereto.

Block — a parcel of land bounded on the sides by streets or alleys or pathways or

other natural or man-made features and occupied by or intended for buildings.

Alley – a public way with a width of 2.0 meters intended to break a block and to serve
both pedestrian and for emergency vehicles, both ends connecting to streets. It shall
not be used as access to property.

Frontage -the side of a lot which abuts a street.

Medium Cost and Open Market-refers to housing projects where prices of house and
lot packages are within the suggested price ranges as determined through HUDCC
resolution and falling under the standards prescribed in these rules.

Firewall -any wall which subdivides a building so as to resist the spread of fire, by
starting at the foundation and extending continuously through all storeys to, or above
the roof.
Extension above the roof is 1 millimeter.
Party Wall - a wall used jointly by two parties under easement agreement, erected
upon a line separating 2 parcels of land each of which is a separate real estate.

Open Space - shall refer to areas allocated for the following purposes: circulation,
community facilities, park/playground, basements and courts.

Implementing Rules and Regulations

Definition of Terms

Dwelling -a building designed or used as residence for one or more families.

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(Single Detached, Single Attached/ Duplex, Row house, Single-family dwelling, Multi
Family Dwelling)

Single Detached - a dwelling for 1 family which is completely surrounded by

permanent open spaces, with independent access, services, and use of land.

Single Attached/ Duplex - a dwelling containing 2 or more separate living units each
of which is separated from another by party or lot lines walls and provided with
independent access, services, and use of land. Such dwelling shall include duplexes,
quadruplex or terraces, and cluster housing.

Row house- a single-attached dwelling containing 3 or more separate living units

designed in such a way that they abut each other at the sides, as in a row, and are
separated from each other by party walls; provided with independent access, and use
of land. There shall be a maximum of 20 units per block or cluster but in no case shall
this be beyond 100 meters in length.

Single-family dwelling – shall mean single family per lot.

Multi Family Dwelling- a dwelling on 1 lot containing separate living units for 3 or
more families, usually provided with common access, services and use of land.

Lot - a portion of a subdivision or any parcel of land intended as a unit fortransfer of

ownership or for building development.

Lot Line Wall - a wall used only by the party upon whose lot the wall is located, erected
at a line separating two parcels of land each of which is a separate real estate entity.

Corner lot - a lot situated at the intersection of two or more street.

Regular lot - a lot fronting on one street and the remaining sides bounded by lot lines.

Interior lot - a lot located at the inner portion of a block with a minimum of three meter
(3-m) wide access which forms part of the lot.

Through lot - a lot bounded on two opposite sides by roads.

Irregular lot- any lot which rectangle nor square-shaped Flag Lot is not.

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Figure 1.0. Illustration for the Type of Lots

Shell house - a habitable dwelling unit which meets the minimum requirements for a
housing core with the following additional components being included as part thereof:
All exterior walls to enclose the unit, Openings for doors and windows, Plumbing
fixture,
Electrical wiring within the unit and Floor

Complete House - a habitable dwelling unit which meets the minimum requirements
for a shell house with the following additional components being included as part
thereof: all windows and doors and partition walls for separating functional areas:
Economic Housing, Socialized Housing, Cluster Housing.

Economic Housing - a type of housing project provided to average income families.

Socialized Housing - refers to housing programs and projects covering houses and
lots and homelots only undertaken by the government or the private sector for the
underprivileged and homeless citizens which shall include sites and services
development, long term financing, liberalized terms on interest payments, and such
other benefits in accordance with the provisions of R.A. 7279 or the urban development
and housing act of 1992.

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Cluster Housing - single-family detached dwelling unit containing three or more
separate living units grouped closely together to form relatively compact structures.
Technical Guidelines
A. Suitability of Site

Physical Suitability

A potential site must have characteristics assuring healthful, safe and

environmentally sound community life. It shall be stable enough to accommodate
foundation load without excessive site works. Critical areas (e.g., areas subject to
flooding, lands slides and street) must be avoided.

Slope

Flat to rolling terrain (0 to 5%) are preferable but housing development may take
place up to 15% slopes, with flat lands (below 5%) for high density development and
sloping area (5-15%) for low to medium density development. The latter slopes,
however, should be capable of being developed for habitation at reasonable cost with
assurance of stability for vertical construction.

Availability of basic needs

The prioritized basic needs cited earlier shall preferably be available within
reasonable distance from the project site, but where these are not available, the same
shall be provided for by the developer.

Conformity with the Zoning Ordinance or Land Use Plan of the City/Municipality

Generally, housing projects should conform with the Zoning Ordinance of the
city/municipality where they are located. However, where there is no Zoning Ordinance
or Land Use Plan, the dominant land use principle and site suitability factors cited
herein shall be used in determining suitability of a project to a site. Furthermore, if the
project is undoubtedly supportive of other land uses and activities, (e.g., housing for
industrial workers) said project shall be allowed.

B. Allowance for future development

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 Project design should consider not only the reduction of cost of development to
a minimum but also provision for possible future improvement or expansion, as in the
prescription of lot sizes, rights-of-way of roads, open space, allocation of areas for
common uses and facilities.
C. Land Allocation

There shall be no fixed ratio between saleable portion and non-saleable portion
of a subdivision project. The allocated for the circulation system shall not be fixed, as
long as the prescribed dimension and requirements for access (to both the project site
and to dwelling units) specified in these Design Standards are complied with. Sites for
community facilities shall be reserved or allocated by the developer, where such
facilities may be constructed/put up the Homeowners Association as the need arises.
Said sites shall be used exclusively for these facilities as defined in Rule II, and the
area shall be exclusive of that area intended for park/playground. The area allocated
for community facilities shall vary with the density of the subdivision, i.e., number of
lots and/or living units whichever is applicable, as shown in Table I.

Table 1.0. Required Area for Community Facilities According to Density

Area allocated for Park/Playground

Provision for park/playground is required in all cases. Allocation of areas for

parks and playgrounds shall be exclusive of those allocated for community facilities
and shall vary according to the density of lots and/or living units in the subdivision,
whichever is applicable, as shown in Table 2.

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Table 2.0. Required Area for Park/Playground According to Density

CONCLUSION

In-depth information of the real property industry will assist the consumer find the perfect
home for them and their family. Overall, the Presidential Decree No. 957 is deliberate and
implemented to shield the public from all types of actual estate misrepresentations and
fraudulent conduct. Prevention is less difficult than cure, as the historic adage goes. On
the different hand, the BP 220 regulates the required areas and allowable spaces in very
kind of lot or occupancy and dependent upn the kind of housing to be built. The
compliance to the referred to necessities will be essential in making sure the bodily
suitability of the web page to its use, the flexibility of the plan for future expansion and
conformity with ordinances.

From this, the researcher has come up to the attention that there is a visible effort of the
government in making sure that its residents are protects from being taken gain of and
that its responsibility is not solely situated to the protection of every individual in the
physical manner but additionally take care of the rights and residences they own. Aside
from security, relief and suitability is also important elements that are being regulated via
the law.

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 RECOMMENDATION
Based on the conclusions, the following were recommended:

1. The researcher advises the buyer to verify the seller's license before buying a house.
2. Before the purchase, the Certificate of Registration and other required conditions for
sale must be thoroughly inspected.

3. The researcher suggests double-checking the year of validity of any conditions relevant
to the purchase of a unit or land.
4. The researcher also recommends that the appropriate area be used for community
services based on its density to ensure that it is habitable and usable.
5. Since different requirements occur for different types of sites, the rules for different lot
types must be followed.

REFERENCES:

Batas Natin Legal Services. 2007. PD 957 Effect of Absence of Certificate of

Registration or Lisence to Sell by the HLURB. batasnatin.com

Arellano Law Foundation. 2018. Batas Pambansa Blg. 220. Philippine Laws and
Jurisprudence Databank. lawphil.net

Arellano Law Foundation. 2018. Presidential Decree No. 957. Philippine Laws and
Jurisprudence Databank. lawphil.net

Lamudi Philippines Inc. 2019. Presidential Decree 957: Know Your Rights as a Property
Buyer. lamudi.com.ph.

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