Summary of PD 957

This law is also known as the subdivision and condominium buyers’

protective decree on “the regulation of sale of subdivisions lots and condominiums
including their non-saleable areas which are parks and playgrounds, community
facilities and circulation system. This policy aims to closely supervise and regulate
real estate practitioners, owners, developers and all key players in the real estate
industry in the Philippines.
The primary objective of this is to protect buyers and prioritize their welfare
from all kinds of real estate mishandling, and fraudulent transactions that leads to
mistrust of buyers in the real estate practitioners. This law empowers the Housing
and Land Use Regulatory Board (HLURB) to have “exclusive jurisdiction to
regulate real estate trade and business” and implement it in a way that the industry
would regain the trust of the buyers from the point of sale to the turnover of the
real estate unit. This law promotes healthy competition among real estate
practitioners and is devised for the prevention of blunders in a real estate
transaction.
Residential subdivision projects shall take into account and conform with the
minimum design standards, applicable local government units’ (LGU) zoning
ordinances as well as pertinent provision of the National Building Code. This law
was established to promote peace and order and the enhancement of economic,
social and moral condition of the Filipino people by closely supervising and
regulating the real estate transactions in both subdivision and condominium
projects and impose the necessary penalties on fraudulent practices and unjust
manipulations committed in connection to these illicit activities. This further
establishes procedures for the registration and requirements to obtain the license to
sell. These requirements are made to ensure that the sale of the subdivision lots or
condominium units to the public would not be fraudulent. Revocation of
Registration Certificates or License to Sell and set penalties for violation of this
law.