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PD 957 THE CONDOMINIUM BUYERS’ PROTECTION DECREE

All Sections

Salient features of Presidential Decree 957:

(1) Under the regime of the late President Ferdinand E. Marcos, Presidential
Decree No. 957 was passed otherwise known as the “Subdivision and
Condominium Buyers Protective Decree”. It is intended to closely supervise and
regulate real estate practitioners, owners, and developers in the Philippines. It was
signed on July 12, 1976.

(2) The primary purpose of PD 957 is to protect buyers’ welfare from all types of real
estate misrepresentations. It aims to control and prevent “reneged on
representations and obligations,” “swindling and fraudulent manipulations,” and
“failure to deliver” to the prejudice of innocent buyers in good faith.

(3) It consists of rules and regulations on buying and selling a house or

condominium, from the point of sale to turnover of unit to property title of ownership.
It also states the other laws governing the after-sale rights of buyers and
developer’s obligations.

(4) It specifies details pertaining to policies in dealing with real estate practitioners
such as developer, dealer, broker, and salesman or agent.

It empowers the National Housing Authority (NHA) to have “exclusive jurisdiction to

regulate real estate trade and business.” At present, HLURB is the key government
agency to implement this law.
(5) It enumerates the process and procedures of registration, as well as the
sanctions and penalties for any unauthorized transactions made by real estate
practitioners.

(6) The practitioners of real estate services are the people to deal with either to sale
or sell, or to buy and purchase a subdivision lot, house, and condominium. These
are the developers, dealers, brokers, and salesmen or agents, which are all subject
for registration.

Significant Legal Terms:

“Developer” shall mean the person who develops or improves the subdivision
project or condominium project for and on behalf of the owner thereof.

“Dealer” shall mean any person directly engaged as a principal in the business of
buying, selling or exchanging real estate whether on a full-time or part-time basis.

“Broker” shall mean any person who, for a commission or other compensation,
undertakes to sell or negotiate the sale of a real estate belonging to another.

“Salesman” shall refer to the person regularly employed by a broker to perform, for
and in his behalf, any or all functions of a real estate broker.

“Certificate of Registration”. HLURB releases this when the developer passes the
required standard to develop projects in accordance with Subdivision Standards
and Regulations for horizontal developments, or of the National Building Code for
vertical development.
 “License To Sell”. Once registered, HLURB releases this for developers to sell
units. The certificate is issued upon assurance of the developer’s capacity to deliver
and free from any fraudulent act.

“HLURB ID/ Certificate of Registration for Dealer, Broker, and

Salesman”. HLURB mandates all dealers, brokers, salesmen or agents who are
engaged in selling subdivisions or condominiums to register. The registration is
good for 1 year and subject for renewal to continually engage in real estate deals.

Credits: Lamudi.com.ph - August 2019

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