THE SUBDIVISION AND CONDOMINIUM

BUYERS‘ PROTECTIVE DECREE

 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES & OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 SALE OR SELL
• Disposition or attempt to dispose of a subdivision
lot for a valuable consideration
INTRODUCTION • contract to sell
• contract of purchase and sale
REGULATING AGENCY
• exchange
REGISTRATION AND • attempt to sell
LICENSE TO SELL
• option of sale or purchase
COMPLETION OF
PROJECTS AND
ALTERATIONS
• solicitation of a sale
PAYMENTS, REALTY • offer to sell (directly, thru agent, circular, letter or
TAXES AND OTHER
EXPENSES ads)
PUBLIC CONCERNS
• Privilege given to members of cooperative,
corporation, partnership, or any association
VIOLATIONS OF PD NO.
957
• issuance of a certificate/receipt giving the right of
participation in any land
PROCEDURES FOR
REVOCATION
 SUBDIVISION AND
CONDOMINIUM PROJECT

Subdivision project
a tract or a parcel of land:
INTRODUCTION
•registered under Act No. 496
•partitioned into individual lots (residential purposes)
REGULATING AGENCY
•offered to the public for sale (cash or in installment)
REGISTRATION AND
LICENSE TO SELL Condominium project
COMPLETION OF real property divided or to be divided for residential
PROJECTS AND
ALTERATIONS purposes into condominium purposes
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 HOUSING AND LAND USE
REGULATORY BOARD
EXCLUSIVE JURISDICTION
REGULATE
real estate trade and business (Sec 3)
INTRODUCTION

What is covered by EXCLUSIVE JURISDICTION?

REGULATING AGENCY
In addition to powers provided for in PD No. 957, HLURB shall have
REGISTRATION AND exclusive jurisdiction to hear and decide cases of the ff. nature:
LICENSE TO SELL (Section 1 of PD 1344)

COMPLETION OF
PROJECTS AND (a) Unsound real estate business practices;
ALTERATIONS

PAYMENTS, REALTY (b) Claims involving refund and any other claims filed by
TAXES AND OTHER
EXPENSES subdivision lot or condominium unit buyer against the project
owner, developer, dealer, broker or salesman; and
PUBLIC CONCERNS
(c) Cases involving specific performance of contractual and
VIOLATIONS OF PD NO.
statutory obligations filed by buyers of subdivision lot or
957 condominium unit against the owner, developer, dealer, broker or
salesman.
PROCEDURES FOR
REVOCATION
 NULLITY OF WAIVERS
Any stipulation waiving the compliance with this
Decree is void
INTRODUCTION

REPEALING CLAUSE
REGULATING AGENCY

All laws, executive orders, rules and regulations or

REGISTRATION AND
LICENSE TO SELL
part thereof inconsistent with the provisions of this
Decree are repealed or modified accordingly.
COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ISSUANCE OF TITLE

INTRODUCTION
Delivery Upon full payment of the lot/unit,
owner/developer shall deliver the
REGULATING AGENCY title of the lot/unit to they buyer

Outstanding Owner/developer shall redeem

REGISTRATION AND
LICENSE TO SELL

Mortgage the mortgage within 6 months

COMPLETION OF
PROJECTS AND from issuance of title to the buyer
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
Fee No fee except fees required for
EXPENSES
the registration of the deed of sale
PUBLIC CONCERNS in the Registry of Deeds

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ISSUANCE OF TITLE

INTRODUCTION
Case Facts

REGULATING AGENCY
• NHA extended to GOAL a loan for the construction of Gemini
I Condominium
REGISTRATION AND
• A "Contract Agreement" was entered into between GOAL
LICENSE TO SELL and Matson International Corporation for the construction of
COMPLETION OF
the condominium within one (1) year
PROJECTS AND • The Contractor abandoned the project with only 60% of it
ALTERATIONS
finished
PAYMENTS, REALTY
TAXES AND OTHER
• GOAL offered the condominium units for sale with private
EXPENSES respondents among its buyers
• To remedy the situation brought about by the abandonment
PUBLIC CONCERNS
of the project, GOAL subsequently pursued the construction
of the fifth floor with NHA granting additional funding on the
VIOLATIONS OF PD NO.
957
condition that it would hold on to the condominium
certificates of title of private respondents as collateral
PROCEDURES FOR
REVOCATION
 ISSUANCE OF TITLE

INTRODUCTION
Decision

REGULATING AGENCY
Upon full payment of a unit, seller loses all its right and
interests to the unit in favor of the buyer. Consequently,
REGISTRATION AND
LICENSE TO SELL it has no right to use the certificate of title of buyer as
collateral for a new loan. The title of buyer must be
COMPLETION OF
PROJECTS AND released to him as provided by law.
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 MORTGAGES
Must first be approved by the HLURB in writing
To be approved:
proceeds of the loan must be used for development of
INTRODUCTION condominium/subdivision project

REGULATING AGENCY Loan value of each lot or unit covered

by the mortgage shall be determined
REGISTRATION AND
LICENSE TO SELL
If such lot or unit has a buyer
COMPLETION OF
PROJECTS AND •He will be notified before the release of the loan
ALTERATIONS
•He may pay installments directly to the mortgagee and
PAYMENTS, REALTY
TAXES AND OTHER
the mortgagee will apply the payments to the
EXPENSES indebtedness connected with the lot or unit
PUBLIC CONCERNS
Rationale
VIOLATIONS OF PD NO.
957
for the buyer to obtain title promptly after full payment of
the lot or unit.
PROCEDURES FOR
REVOCATION
 MORTGAGES

INTRODUCTION

Relevant Facts
REGULATING AGENCY
Delta Development and Management Services, Inc.
REGISTRATION AND (Delta) obtained a loan from the Luzon Development
LICENSE TO SELL
Bank (LDB) for the express purpose of developing a
COMPLETION OF subdivision, executing in favor of the bank a real estate
PROJECTS AND
ALTERATIONS mortgage (REM) on several of their properties.
 
PAYMENTS, REALTY
TAXES AND OTHER
Delta obtained a Certificate of Registration and a License
EXPENSES to Sell from the HLURB after the loan transaction. In
court, Delta argued that clearance was not required for
PUBLIC CONCERNS
mortgages that were constituted on a subdivision project
prior to registration. According to DELTA, it did not violate
VIOLATIONS OF PD NO.
957 the terms of its license because it did not obtain a new
mortgage over the subdivision project.
PROCEDURES FOR
REVOCATION
 MORTGAGES

INTRODUCTION

REGULATING AGENCY
Issue
Was the mortgage over the property valid?
REGISTRATION AND
LICENSE TO SELL
Answer
COMPLETION OF
PROJECTS AND There was no HLURB approval, thus rendering the
ALTERATIONS
mortgage void. It was held that all developers should
PAYMENTS, REALTY
TAXES AND OTHER
obtain a clearance for mortgage from the HLURB,
EXPENSES regardless of the date when the mortgage was secured,
because the law does not distinguish. Having violated this
PUBLIC CONCERNS
legal requirement, Delta was held liable to pay the
administrative fine. Also, due to the nullity of the
VIOLATIONS OF PD NO.
957 mortgage, the bank’s loan of P8 million to Delta has
effectively become unsecured.
PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 REGISTRATION OF PROJECTS
For owners of a parcel of land who wishes to
convert the same into a subdivision project
INTRODUCTION

1 Submit subdivision plan or condominium

REGULATING AGENCY
plan
REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
2 After approval, submit subdivision plan to
PROJECTS AND
ALTERATIONS Director of Lands and Condominium Plan to
PAYMENTS, REALTY Register of Deeds
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 LICENSE TO SELL
Sellers must obtain a license to sell within 2
weeks after registering the condo/subd unit
INTRODUCTION

• Must be of good repute

• financially stable
REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL
• registration must not be fraudulent
COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
PERFORMANCE BOND
adequate performance bond
EXPENSES

PUBLIC CONCERNS
guaranteeing development,
VIOLATIONS OF PD NO. construction and maintenance of project
957

PROCEDURES FOR
REVOCATION
 EXEMPT TRANSACTIONS

EXEMPTIONS
INTRODUCTION
from requirement of a license to sell

REGULATING AGENCY a) Sale resulting from the partition of land

among co-owners and co-heirs.
REGISTRATION AND
LICENSE TO SELL
b) Sale or transfer by the original purchaser and
COMPLETION OF
PROJECTS AND any subsequent sale.
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
c) Sale by or for a mortgagee in the ordinary
EXPENSES course of business when necessary to liquidate
PUBLIC CONCERNS
debt.

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 REGISTRATION OF
DEALERS, BROKERS & SALESMEN
Requirements for registration
a.) Good reputation
INTRODUCTION b.) Complied with all the applicable rules including
any prescribed fees
REGULATING AGENCY c.) File a bond or security

REGISTRATION AND
LICENSE TO SELL Expiration and Renewal of Registration
COMPLETION OF
PROJECTS AND a.) Expiration is on December 31 of each year
ALTERATIONS
b.) Renewal shall be given upon written application
PAYMENTS, REALTY
TAXES AND OTHER (must be made within 30-60 before the first day of
EXPENSES
the subsequent year and any prescribed fees must
PUBLIC CONCERNS be paid)
c.) If filed beyond the prescribed period - treated as
VIOLATIONS OF PD NO.
957
original applications.

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 PHASES OF SUBDIVISION

Owner/developer may divide the

development and sale of subdivision into
INTRODUCTION
phases not less than 10 hectares
REGULATING AGENCY
Requirements in this Decree
REGISTRATION AND
shall be imposed to
LICENSE TO SELL on each phase
COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ADVERTISEMENTS

Advertisements
INTRODUCTION
• May be in any form
• Must reflect real facts
REGULATING AGENCY
• Must not be presented so as to mislead or deceive
the public
REGISTRATION AND
LICENSE TO SELL
 Owner/Developer
COMPLETION OF
PROJECTS AND
answerable to developments represented or promised
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER warranty enforceable solidarily
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 TIME OF COMPLETION

For developments indicated in subdivision

or condominium plans and advertised,
INTRODUCTION time of completion is:

REGULATING AGENCY • 1 year from date of issuance of license for the

project
REGISTRATION AND
LICENSE TO SELL
• a period of time fixed by the HLURB
COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ALTERATION OF PLANS

Change or alterations
INTRODUCTION
• Permitted by the HLURB and
• Consented in writing by the homeowners’
REGULATING AGENCY
association or in the absence thereof, the majority
of the lot buyers in the subdivision
REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 TAKE-OVER DEVELOPMENT

If the owner/developer has refused/failed

to develop or complete the development of the project
INTRODUCTION
Authority may take over or cause
REGULATING AGENCY such development and completion

REGISTRATION AND
LICENSE TO SELL The Authority may
COMPLETION OF demand, collect and receive
PROJECTS AND
ALTERATIONS from the buyers the installment payments due,
PAYMENTS, REALTY which shall be used for the development
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 NON-FORFEITURE OF PAYMENTS

WHEN
Failure of owner to develop subdivision or condominium
INTRODUCTION
project according to plan or within time limit.

REGULATING AGENCY REMEDY

Buyer may be reimbursed with total amount paid
REGISTRATION AND
LICENSE TO SELL
(including amortization interest) excluding delinquency
interests, plus legal interest
COMPLETION OF
PROJECTS AND

FAILURE TO PAY INSTALLMENTS

ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
For any other case of buyer’s failure to pay
•rights covered by RA 6552 (Maceda Law)
PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 RA 6552 (MACEDA LAW)

INTRODUCTION
RIGHTS OF THE BUYER
1. Grace period (payment of unpaid
REGULATING AGENCY
installments without additional interest)
REGISTRATION AND
– Less than two years of installments: 60 days
LICENSE TO SELL
grace period
COMPLETION OF
PROJECTS AND
– At least two years: one month grace period
ALTERATIONS
per year of installment payments
PAYMENTS, REALTY
TAXES AND OTHER *grace period may only be exercised once every
EXPENSES
5 years
PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 RA 6552 (MACEDA LAW)

INTRODUCTION
RIGHTS OF THE BUYER
2. Refund of the Cash Surrender Value
REGULATING AGENCY
(CSV) of payments
REGISTRATION AND
– Less than five years of installments: CSV =
LICENSE TO SELL
50% of payments
COMPLETION OF
PROJECTS AND
– Every year of installment payments in excess
ALTERATIONS
of 5 years: 5% additional CSV
PAYMENTS, REALTY
TAXES AND OTHER *CSV not to exceed 90% of total payments.
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 RA 6552 (MACEDA LAW)

INTRODUCTION

•If buyer fails to pay within grace period  seller

REGULATING AGENCY may cancel the contract (contract to sell) or
rescind the contract (contract of sale)
REGISTRATION AND
LICENSE TO SELL
•Actual cancellation is after 30 days from the
buyer’s time of receipt of notice of cancellation or
COMPLETION OF
PROJECTS AND demand for rescission plus payment of CSV
ALTERATIONS
•Without return of CSV, rescission is incomplete
PAYMENTS, REALTY
TAXES AND OTHER and buyer may still pay unpaid installments
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 REALTY TAX

Title has not Buyer has taken

Real estate
INTRODUCTION passed to the possession of and
tax and buyer occupied the lot/unit
REGULATING AGENCY assessment
on a lot/unit Paid by owner/ Buyer is liable to the
REGISTRATION AND developer with- owner/developer for
LICENSE TO SELL
out recourse to such tax and
COMPLETION OF
PROJECTS AND the buyer assessment effective
ALTERATIONS the year following
PAYMENTS, REALTY
TAXES AND OTHER
such taking of
EXPENSES possession and
PUBLIC CONCERNS
occupancy

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 OTHER CHARGES
PROHIBITED
•Fee for an alleged community benefit charged by the
INTRODUCTION owner/developer

REGULATING AGENCY
AUTHORIZED COLLECTOR
REGISTRATION AND
•Properly organized homeowners association
LICENSE TO SELL

COMPLETION OF REQUIREMENTS
PROJECTS AND
ALTERATIONS •Fees to finance services for common comfort, security
PAYMENTS, REALTY
TAXES AND OTHER
and sanitation
EXPENSES
•consent of a majority of the lot/unit buyers residing in
PUBLIC CONCERNS the subdivision/condo

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ACCESS TO PUBLIC
OFFICES IN SUBDIVISIONS

No owner/developer shall deny any person

free access to any government office
INTRODUCTION
or public establishment
located within the subdivision or which may be
REGULATING AGENCY
reached only by passing through the subdivision

REGISTRATION AND
LICENSE TO SELL
RIGHT OF WAY TO PUBLIC ROAD
COMPLETION OF
PROJECTS AND The owner/developer must secure
ALTERATIONS
a right of way to a public road or street
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 PUBLIC AND OPEN SPACES

If there is a street, passageway or required open

space delineated on a complex subdivision plan,
INTRODUCTION the Register of Deeds shall annotate on the new
certificate of title covering the street, passageway
REGULATING AGENCY or open space a memorandum that:
REGISTRATION AND
LICENSE TO SELL General Rule
COMPLETION OF No portion of such shall be closed or otherwise
PROJECTS AND
ALTERATIONS
disposed of by the registered owner
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES Exception
•Obtaining the requisite approval as provided under
PUBLIC CONCERNS
Section 22, or
•Donation in favor of a city or municipality
VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 DONATIONS OF ROADS &
OPEN SPACES TO LOCAL GOV’T

Owner/developer of the subdivision or condominium

INTRODUCTION may donate roads and open spaces to the city or
municipality where the project is located
REGULATING AGENCY

After the donation

REGISTRATION AND
LICENSE TO SELL The area donated shall not be converted to other
COMPLETION OF purposes unless the Authority approves so after a
PROJECTS AND
ALTERATIONS hearing
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 AMENDMENTS BY PD 1216

Sec. 2. Amendment of Section 31 of this Decree

INTRODUCTION

Owner/developer is required to donate adequate

REGULATING AGENCY roads, alleys and sidewalks to the city/municipality
and the local gov’t must accept it.
REGISTRATION AND
LICENSE TO SELL
Owner/developer may also donate it to
COMPLETION OF
PROJECTS AND Homeowners Association of the project if
ALTERATIONS
approved by the city/municipality.
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
If 1ha or more, 30% of gross area shall be
PUBLIC CONCERNS reserved for open space.

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 REGISTERS OF SUBDIVISION
LOTS & CONDOMINIUM UNITS

Record of subdivision lots

INTRODUCTION
and condominium units
• Maintained by the Authority
REGULATING AGENCY
• Open to public inspection subject to such
REGISTRATION AND
LICENSE TO SELL
reasonable rules by the Authority
COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 VIOLATIONS OF PD957
Sanctions for Violating PD 957
Either:

Administrative Sanction - not exceeding Ten Thousand

INTRODUCTION 1 Pesos

REGULATING AGENCY
Penal Sanction - not exceeding Twenty Thousand Pesos
2 and/or imprisonment of not more than 10 years
REGISTRATION AND
LICENSE TO SELL
Where the violator is a
COMPLETION OF
PROJECTS AND
partnership or corporation?
ALTERATIONS
The liability extends to controlling persons.
PAYMENTS, REALTY
TAXES AND OTHER
To carry administrative and criminal penalties
EXPENSES  
Jurisdiction
PUBLIC CONCERNS
Either:
VIOLATIONS OF PD NO.
1.) HLURB – for Administrative aspect
957 2.) Fiscal’s office – for Criminal aspect
3.) Civil Courts – if there is a finding of probable cause for
PROCEDURES FOR criminal action
REVOCATION
 OTHER REMEDIES

Rights and remedies provided

INTRODUCTION
shall be in addition to any and all other rights and
remedies that may be available under existing laws
REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 SUSPENSION OF LICENSE TO SELL

Grounds for immediate

suspension of license to sell
INTRODUCTION
a.) Verified complaint subject to further
investigation and hearing
REGULATING AGENCY
b.) Fraudulent information in the registration
REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 REVOCATION OF REGISTRATION
CERTIFICATE & LICENSE TO SELL
Trigger Points
• Motu proprio, or
• Verified complaint filed by a buyer
INTRODUCTION

How to start? Issuing an order

REGULATING AGENCY
EVIDENCE that owner or dealer is/has
REGISTRATION AND • Insolvent
LICENSE TO SELL
• Violated any provision of this Decree or any applicable rule
COMPLETION OF
PROJECTS AND
• Engaged in fraud
ALTERATIONS
• Misrepresented in any literature abut the project which is given
PAYMENTS, REALTY to prospective buyers
TAXES AND OTHER
EXPENSES • Bad business representation
• Does not conduct business in accordance with the law
PUBLIC CONCERNS

VIOLATIONS OF PD NO. For partnership/corporation/unincorporated association

957

Any member/officer/director is guilty of any act of omission which

PROCEDURES FOR
REVOCATION
would cause revocation of a dealer/broker/salesman (Sec. 11)
 REVOCATION OF REGISTRATION
OF DEALERS, BROKERS & SALESMEN

Grounds for revocation

INTRODUCTION a.) Violation of any provision
b.) Material misstatement in application
REGULATING AGENCY c.) Fraudulent act
d.) Demonstrated unworthiness to transact the
REGISTRATION AND
LICENSE TO SELL business
COMPLETION OF
e.) For salesmen, give Notice to broker or dealer
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
Pending hearing, CAN order suspension
of the registration - indicate cause
PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 INTRODUCTION

REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 HEARING
Notice
Either:
INTRODUCTION •copy of the complaint against him, or
•notified in writing
REGULATING AGENCY
Venue
REGISTRATION AND
LICENSE TO SELL
• Before the officer/s designated by the Authority,
on the date and place in the notice
COMPLETION OF
PROJECTS AND
ALTERATIONS
Nature of proceeding
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES • Non-litigious, summary in nature
PUBLIC CONCERNS
• Rules of Court shall not apply, except:
o By analogy or in a suppletory
VIOLATIONS OF PD NO. character, and
957 o Whenever practicable and convenient
PROCEDURES FOR
REVOCATION
 DECISION
Within 30 days
from the time submitted for decision
INTRODUCTION
The Decision may order the:

REGULATING AGENCY
1. Revocation of the registration of the
subdivision or condominium project
REGISTRATION AND 2. Suspension, cancellation, or revocation of the
LICENSE TO SELL
license to sell, and/or
COMPLETION OF
PROJECTS AND
3. Forfeiture, in whole or in part, of the
ALTERATIONS
performance bond mentioned in Section 6
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
forfeiture
PUBLIC CONCERNS

Immediately executory and final after 15 days

VIOLATIONS OF PD NO.
957 from the date of receipt of the Decision
PROCEDURES FOR
REVOCATION
 CEASE AND DESIST ORDER
To whom
any person who appears to be engaged or about to
INTRODUCTION
engage in any act or practice which constitutes or
will constitute a violation of the provisions of this
REGULATING AGENCY
Decree
Provided
REGISTRATION AND
LICENSE TO SELL
There is due notice and hearing, as provided in
COMPLETION OF
PROJECTS AND
Section 13
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
 ORGANIZATION
OF HOMEOWNERS ASSOCIATION

owner/developer
shall initiate the organization of a
INTRODUCTION homeowner’s association among the
buyers and residents
REGULATING AGENCY

REGISTRATION AND
LICENSE TO SELL

COMPLETION OF
PROJECTS AND
ALTERATIONS

PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES

PUBLIC CONCERNS

VIOLATIONS OF PD NO.
957

PROCEDURES FOR
REVOCATION
PRESIDENTIAL DECREE NO. 957
The Subdivision and Condominium Buyers‘ Protective Decree