The Lawphil Project - Arellano Law Foundation PRESIDENTIAL DECREE No. 9 ! "ul# $%& $9!

'

MALACAANG (anila PRESIDENTIAL DECREE No. 957 July 12, 1976 REGULATING THE SALE O SU!DI"ISION LOTS AND CONDOMINIUMS, PRO"IDING PENALTIES OR "IOLATIONS THEREO )*EREAS& it i+ the polic# o, the State to a,,ord it+ inha-itant+ the re.uire/ent+ o, decent hu/an +ettle/ent and to pro0ide the/ with a/ple opportunitie+ ,or i/pro0in1 their .ualit# o, li,e2 )*EREAS& nu/erou+ report+ re0eal that /an# real e+tate +u-di0i+ion owner+& de0eloper+& operator+& and3or +eller+ ha0e rene1ed on their repre+entation+ and o-li1ation+ to pro0ide and /aintain properl# +u-di0i+ion road+& draina1e& +ewera1e& water +#+te/+& li1htin1 +#+te/+& and other +i/ilar -a+ic re.uire/ent+& thu+ endan1erin1 the health and +a,et# o, ho/e and lot -u#er+2 )*EREAS& report+ o, alar/in1 /a1nitude al+o +how ca+e+ o, +windlin1 and ,raudulent /anipulation+ perpetrated -# un+crupulou+ +u-di0i+ion and condo/iniu/ +eller+ and operator+& +uch a+ ,ailure to deli0er title+ to the -u#er+ or title+ ,ree ,ro/ lien+ and encu/-rance+& and to pa# real e+tate ta4e+& and ,raudulent +ale+ o, the +a/e +u-di0i+ion lot+ to di,,erent innocent purcha+er+ ,or 0alue2 )*EREAS& the+e act+ not onl# under/ine the land and hou+in1 pro1ra/ o, the 1o0ern/ent -ut al+o de,eat the o-jecti0e+ o, the New Societ#& particularl# the pro/otion o, peace and order and the enhance/ent o, the econo/ic& +ocial and /oral condition o, the Filipino people2 )*EREAS& thi+ +tate o, a,,air+ ha+ rendered it i/perati0e that the real e+tate +u-di0i+ion and condo/iniu/ -u+ine++e+ -e clo+el# +uper0i+ed and re1ulated& and that penaltie+ -e i/po+ed on ,raudulent practice+ and /anipulation+ co//itted in connection therewith. N5)& T*EREF5RE& I& FERDINAND E. (ARC5S& Pre+ident o, the Philippine+& -# 0irtue o, the power+ 0e+ted in /e -# the Con+titution& do here-# decree and order6 T#$l% I TITLE AND DE INITIONS S%&$#o' 1. Title. Thi+ Decree +hall -e 7nown a+ T*E S89DI:ISI5N AND C5ND5(INI8( 98;ERS< PR5TECTI:E DECREE.

S%&$#o' 2. Definition of Terms When used in this Decree, the ,ollowin1 ter/+ +hall& unle++ the conte4t otherwi+e indicate+& ha0e the ,ollowin1 re+pecti0e /eanin1+6 =a> Per+on. ?Per+on? +hall /ean a natural or a juridical per+on. A juridical per+on re,er+ to a -u+ine++ ,ir/ whether a corporation& partner+hip& cooperati0e or a++ociation+ or a +in1le proprietor+hip. =-> Sale or +ell. ?Sale? or ?+ell? +hall include e0er# di+po+ition& or atte/pt to di+po+e& ,or a 0alua-le con+ideration& o, a +u-di0i+ion lot& includin1 the -uildin1 and other i/pro0e/ent+ thereo,& i, an#& in a +u-di0i+ion project or a condo/iniu/ unit in a condo/iniu/ project. ?Sale? and ?+ell? +hall al+o include a contract to +ell& a contract o, purcha+e and +ale& an e4chan1e& an atte/pt to +ell& an option o, +ale or purcha+e& a +olicitation o, a +ale& or an o,,er to +ell& directl# or -# an a1ent& or -# a circular& letter& ad0erti+e/ent or otherwi+e. A pri0ile1e 1i0en to a /e/-er o, a cooperati0e& corporation& partner+hip& or an# a++ociation and3or the i++uance o, a certi,icate or receipt e0idencin1 or 1i0in1 the ri1ht o, participation in& or ri1ht to& an# land in con+ideration o, pa#/ent o, the /e/-er+hip ,ee or due+& +hall -e dee/ed a +ale within the /eanin1 o, thi+ de,inition. =c> 9u# and purcha+e. The ?-u#? and ?purcha+e? +hall include an# contract to -u#& purcha+e& or otherwi+e ac.uire ,or a 0alua-le con+ideration a +u-di0i+ion lot& includin1 the -uildin1 and other i/pro0e/ent+& i, an#& in a +u-di0i+ion project or a condo/iniu/ unit in a condo/iniu/ project. =d> Su-di0i+ion project. ?Su-di0i+ion project? +hall /ean a tract or a parcel o, land re1i+tered under Act No. @9' which i+ partitioned pri/aril# ,or re+idential purpo+e+ into indi0idual lot+ with or without i/pro0e/ent+ thereon& and o,,ered to the pu-lic ,or +ale& in ca+h or in in+tall/ent ter/+. It +hall include all re+idential& co//ercial& indu+trial and recreational area+ a+ well a+ open +pace+ and other co//unit# and pu-lic area+ in the project. =e> Su-di0i+ion lot. ?Su-di0i+ion lot? +hall /ean an# o, the lot+& whether re+idential& co//ercial& indu+trial& or recreational& in a +u-di0i+ion project. =,> Co/ple4 +u-di0i+ion plan. ?Co/ple4 +u-di0i+ion plan? +hall /ean a +u-di0i+ion plan o, a re1i+tered land wherein a +treet& pa++a1ewa# or open +pace i+ delineated on the plan. =1> Condo/iniu/ project. ?Condo/iniu/ project? +hall /ean the entire parcel o, real propert# di0ided or to -e di0ided pri/aril# ,or re+idential purpo+e+ into condo/iniu/ unit+& includin1 all +tructure+ thereon.

=h> Condo/iniu/ unit. ?Condo/iniu/ unit? +hall /ean a part o, the condo/iniu/ project intended ,or an# t#pe o, independent u+e or owner+hip& includin1 one or /ore roo/+ or +pace+ located in one or /ore ,loor+ =or part o, part+ o, ,loor+> in a -uildin1 or -uildin1+ and +uch acce++orie+ a+ /a# -e appended thereto. =i> 5wner. ?5wner? +hall re,er to the re1i+tered owner o, the land +u-ject o, a +u-di0i+ion or a condo/iniu/ project. =j> De0eloper. ?De0eloper? +hall /ean the per+on who de0elop+ or i/pro0e+ the +u-di0i+ion project or condo/iniu/ project ,or and in -ehal, o, the owner thereo,. =7> Dealer. ?Dealer? +hall /ean an# per+on directl# en1a1ed a+ principal in the -u+ine++ o, -u#in1& +ellin1 or e4chan1in1 real e+tate whether on a ,ullti/e or part-ti/e -a+i+. =l> 9ro7er. ?9ro7er? +hall /ean an# per+on who& ,or co//i++ion or other co/pen+ation& underta7e+ to +ell or ne1otiate the +ale o, a real e+tate -elon1in1 to another. =/> Sale+/an. ?Sale+/an? +hall re,er to the per+on re1ularl# e/plo#ed -# a -ro7er to per,or/& ,or and in hi+ -ehal,& an# or all ,unction+ o, a real e+tate -ro7er. =n> Authorit#. ?Authorit#? +hall /ean the National *ou+in1 Authorit#. T#$l% II REGISTRATION AND LICENSE TO SELL S%&$#o' (. National Housing Authority The National Housing Authority shall have exclusive jurisdiction to regulate the real estate trade and business in accordance with the rovisions of this Decree. S%&$#o' ). !egistration of "rojects The registered owner of a arcel of land who wishes to convert the same into a subdivision roject shall submit his subdivision lan to the Authority which shall act u on and a rove the same, u on a finding that the lan com lies with the #ubdivision #tandards$ and !egulations enforceable at the time the lan is submitted. The +a/e procedure +hall -e ,ollowed in the ca+e o, a plan ,or a condo/iniu/ project e4cept that& in addition& +aid Authorit# +hall act upon and appro0e the plan with re+pect to the -uildin1 or -uildin1+ included in the condo/iniu/ project in accordance with the National 9uildin1 Code =R.A. No. ' @$>. The +u-di0i+ion plan& a+ +o appro0ed& +hall then -e +u-/itted to the Director o, Land+ ,or appro0al in accordance with the procedure pre+cri-ed in Section @@ o,

the Land Re1i+tration Act =Act No. @9'& a+ a/ended -# R.A. No. @@A>6 Pro0ided& that it ca+e o, co/ple4 +u-di0i+ion plan+& court appro0al +hall no lon1er -e re.uired. The condo/iniu/ plan a+ li7ewi+e +o appro0ed& +hall -e +u-/itted to the Re1i+ter o, Deed+ o, the pro0ince or cit# in which the propert# lie+ and the +a/e +hall -e acted upon +u-ject to the condition+ and in accordance with the procedure pre+cri-ed in Section @ o, the Condo/iniu/ Act =R.A. No. @!%'>. The owner or the real e+tate dealer intere+ted in the +ale o, lot+ or unit+& re+pecti0el#& in +uch +u-di0i+ion project or condo/iniu/ project +hall re1i+ter the project with the Authorit# -# ,ilin1 therewith a +worn re1i+tration +tate/ent containin1 the ,ollowin1 in,or/ation6 =a> Na/e o, the owner2 =-> The location o, the owner<+ principal -u+ine++ o,,ice& and i, the owner i+ a non-re+ident Filipino& the na/e and addre++ o, hi+ a1ent or repre+entati0e in the Philippine+ i+ authoriBed to recei0e notice2 =c> The na/e+ and addre++e+ o, all the director+ and o,,icer+ o, the -u+ine++ ,ir/& i, the owner -e a corporation& a++ociation& tru+t& or other entit#& and o, all the partner+& i, it -e a partner+hip2 =d> The 1eneral character o, the -u+ine++ actuall# tran+acted or to -e tran+acted -# the owner2 and =e> A +tate/ent o, the capitaliBation o, the owner& includin1 the authoriBed and out+tandin1 a/ount+ o, it+ capital +toc7 and the proportion thereo, which i+ paid-up. The ,ollowin1 docu/ent+ +hall -e attached to the re1i+tration +tate/ent6 =a> A cop# o, the +u-di0i+ion plan or condo/iniu/ plan a+ appro0ed in accordance with the ,ir+t and +econd para1raph+ o, thi+ +ection. =-> A cop# o, an# circular& pro+pectu+& -rochure& ad0erti+e/ent& letter& or co//unication to -e u+ed ,or the pu-lic o,,erin1 o, the +u-di0i+ion lot+ or condo/iniu/ unit+2 =c> In ca+e o, a -u+ine++ ,ir/& a -alance +heet +howin1 the a/ount and 1eneral character o, it+ a++et+ and lia-ilitie+ and a cop# o, it+ article+ o, incorporation or article+ o, partner+hip or a++ociation& a+ the ca+e /a# -e& with all the a/end/ent+ thereo, and e4i+tin1 -#-law+ or in+tru/ent+ corre+pondin1 thereto. =d> A title to the propert# which i+ ,ree ,ro/ all lien+ and encu/-rance+6 Pro0ided& howe0er& that in ca+e an# +u-di0i+ion lot or condo/iniu/ unit i+

/ort1a1ed& it i+ +u,,icient i, the in+tru/ent o, /ort1a1e contain+ a +tipulation that the /ort1a1ee +hall relea+e the /ort1a1e on an# +u-di0i+ion lot or condo/iniu/ unit a+ +oon a+ the ,ull purcha+e price ,or the +a/e i+ paid -# the -u#er. The per+on ,ilin1 the re1i+tration +tate/ent +hall pa# the re1i+tration ,ee+ pre+cri-ed there,or -# the Authorit#. Thereupon& the Authorit# +hall i//ediatel# cau+e to -e pu-li+hed a notice o, the ,ilin1 o, the re1i+tration +tate/ent at the e4pen+e o, the applicant-owner or dealer& in two new+paper+ 1eneral circulation& one pu-li+hed in En1li+h and another in Pilipino& once a wee7 ,or two con+ecuti0e wee7+& recitin1 that a re1i+tration +tate/ent ,or the +ale o, +u-di0i+ion lot+ or condo/iniu/ unit+ ha+ -een ,iled in the National *ou+in1 Authorit#2 that the a,ore+aid re1i+tration +tate/ent& a+ well a+ the paper+ attached thereto& are open to in+pection durin1 -u+ine++ hour+ -# intere+ted partie+& under +uch re1ulation+ a+ the Authorit# /a# i/po+e2 and that copie+ thereo, +hall -e ,urni+hed to an# part# upon pa#/ent o, the proper ,ee+. The +u-di0i+ion project o, the condo/iniu/ project +hall -e dee/ed re1i+tered upon co/pletion o, the a-o0e pu-lication re.uire/ent. The ,act o, +uch re1i+tration +hall -e e0idenced -# a re1i+tration certi,icate to -e i++ued to the applicant-owner or dealer. S%&$#o' 5. %icense to sell. Such owner or dealer to who/ ha+ -een i++ued a re1i+tration certi,icate +hall not& howe0er& -e authoriBed to +ell an# +u-di0i+ion lot or condo/iniu/ unit in the re1i+tered project unle++ he +hall ha0e ,ir+t o-tained a licen+e to +ell the project within two wee7+ ,ro/ the re1i+tration o, +uch project. The Authorit#& upon proper application there,or& +hall i++ue to +uch owner or dealer o, a re1i+tered project a licen+e to +ell the project i,& a,ter an e4a/ination o, the re1i+tration +tate/ent ,iled -# +aid owner or dealer and all the pertinent docu/ent+ attached thereto& he i+ con0inced that the owner or dealer i+ o, 1ood repute& that hi+ -u+ine++ i+ ,inanciall# +ta-le& and that the propo+ed +ale o, the +u-di0i+ion lot+ or condo/iniu/ unit+ to the pu-lic would not -e ,raudulent. S%&$#o' 6. "erformance &ond. No licen+e to +ell +u-di0i+ion lot+ or condo/iniu/ unit+ +hall -e i++ued -# the Authorit# under Section o, thi+ Decree unle++ the owner or dealer +hall ha0e ,iled an ade.uate per,or/ance -ond appro0ed -# +aid Authorit# to 1uarantee the con+truction and /aintenance o, the road+& 1utter+& draina1e& +ewera1e& water +#+te/& li1htin1 +#+te/+& and ,ull de0elop/ent o, the +u-di0i+ion project or the condo/iniu/ project and the co/pliance -# the owner or dealer with the applica-le law+ and rule+ and re1ulation+.

The per,or/ance -ond +hall -e e4ecuted in ,a0or o, the Repu-lic o, the Philippine+ and +hall authoriBe the Authorit# to u+e the proceed+ thereo, ,or the purpo+e+ o, it+ underta7in1 in ca+e o, ,or,eiture a+ pro0ided in thi+ Decree. S%&$#o' 7. 'xem t transactions. A licen+e to +ell and per,or/ance -ond +hall not -e re.uired in an# o, the ,ollowin1 tran+action+6 =a> Sale o, a +u-di0i+ion lot re+ultin1 ,ro/ the partition o, land a/on1 coowner+ and co-heir+. =-> Sale or tran+,er o, a +u-di0i+ion lot -# the ori1inal purcha+er thereo, and an# +u-+e.uent +ale o, the +a/e lot. =c> Sale o, a +u-di0i+ion lot or a condo/iniu/ unit -# or ,or the account o, a /ort1a1ee in the ordinar# cour+e o, -u+ine++ when nece++ar# to li.uidate a -ona ,ide de-t. S%&$#o' *. #us ension of license to sell. 8pon 0eri,ied co/plaint -# a -u#er o, a +u-di0i+ion lot or a condo/iniu/ unit in an# intere+ted part#& the Authorit# /a#& in it+ di+cretion& i//ediatel# +u+pend the owner<+ or dealer<+ licen+e to +ell pendin1 in0e+ti1ation and hearin1 o, the ca+e a+ pro0ided in Section $C hereo,. The Authorit# /a# /otu proprio +u+pend the licen+e to +ell i,& in it+ opinion& an# in,or/ation in the re1i+tration +tate/ent ,iled -# the owner or dealer i+ or ha+ -eco/e /i+leadin1& incorrect& inade.uate or inco/plete or the +ale or o,,erin1 ,or a +ale o, the +u-di0i+ion or condo/iniu/ project /a# wor7 or tend to wor7 a ,raud upon pro+pecti0e -u#er+. The +u+pen+ion order /a# -e li,ted i,& a,ter notice and hearin1& the Authorit# i+ con0inced that the re1i+tration +tate/ent i+ accurate or that an# de,icienc# therein ha+ -een corrected or +upple/ented or that the +ale to the pu-lic o, the +u-di0i+ion or condo/iniu/ project will neither -e ,raudulent not re+ult in ,raud. It +hall al+o -e li,ted upon di+/i++al o, the co/plaint ,or lac7 o, le1al -a+i+. 8ntil the ,inal entr# o, an order o, +u+pen+ion& the +u+pen+ion o, the ri1ht to +ell the project& thou1h -indin1 upon all per+on+ noti,ied thereo,& +hall -e dee/ed con,idential unle++ it +hall appear that the order o, +u+pen+ion ha+ in the /eanti/e -een 0iolated. S%&$#o' 9. !evocation of registration certificate and license to sell. The Authorit# /a#& /otu proprio or upon 0eri,ied co/plaint ,iled -# a -u#er o, a +u-di0i+ion lot or condo/iniu/ unit& re0o7e the re1i+tration o, an# +u-di0i+ion project or condo/iniu/ project and the licen+e to +ell an# +u-di0i+ion lot or condo/iniu/ unit in +aid project -# i++uin1 an order to thi+ e,,ect& with hi+ ,indin1+ in re+pect thereto& i, upon e4a/ination into the a,,air+ o, the owner or dealer durin1 a

hearin1 a+ pro0ided ,or in Section $@ hereo,& i, +hall appear there i+ +ati+,actor# e0idence that the +aid owner or dealer6 =a> I+ in+ol0ent2 or =-> ha+ 0iolated an# o, the pro0i+ion+ o, thi+ Decree or an# applica-le rule or re1ulation o, the Authorit#& or an# underta7in1 o, hi+3it+ per,or/ance -ond2 or =c> *a+ -een or i+ en1a1ed or i+ a-out to en1a1e in ,raudulent tran+action+2 or =d> *a+ /ade an# /i+repre+entation in an# pro+pectu+& -rochure& circular or other literature a-out the +u-di0i+ion project or condo/iniu/ project that ha+ -een di+tri-uted to pro+pecti0e -u#er+2 or =e> I+ o, -ad -u+ine++ repute2 or =,> Doe+ not conduct hi+ -u+ine++ in accordance with law or +ound -u+ine++ principle+. )here the owner or dealer i+ a partner+hip or corporation or an unincorporated a++ociation& it +hall -e +u,,icient cau+e ,or cancellation o, it+ re1i+tration certi,icate and it+ licen+e to +ell& i, an# /e/-er o, +uch partner+hip or an# o,,icer or director o, +uch corporation or a++ociation ha+ -een 1uilt# o, an# act or o/i++ion which would -e cau+e ,or re,u+in1 or re0o7in1 the re1i+tration o, an indi0idual dealer& -ro7er or +ale+/an a+ pro0ided in Section $$ hereo,. S%&$#o' 1+. !egisters of subdivision lots and condominium units. A record o, +u-di0i+ion lot+ and condo/iniu/ unit+ +hall -e 7ept in the Authorit# wherein +hall -e entered all order+ o, the Authorit# a,,ectin1 the condition or +tatu+ thereo,. The re1i+ter+ o, +u-di0i+ion lot+ and condo/iniu/ unit+ +hall -e open to pu-lic in+pection +u-ject to +uch rea+ona-le rule+ a+ the Authorit# /a# pre+cri-e. T#$l% III DEALERS, !RO,ERS AND SALESMEN S%&$#o' 11. !egistration of dealers, bro(ers and salesmen. No real e+tate dealer& -ro7er or +ale+/an +hall en1a1e in the -u+ine++ o, +ellin1 +u-di0i+ion lot+ or condo/iniu/ unit+ unle++ he ha+ re1i+tered hi/+el, with the Authorit# in accordance with the pro0i+ion+ o, thi+ +ection. I, the Authorit# +hall ,ind that the applicant i+ o, 1ood repute and ha+ co/plied with the applica-le rule+ o, the Authorit#& includin1 the pa#/ent o, the pre+cri-ed ,ee& he +hall re1i+ter +uch applicant a+ a dealer& -ro7er or +ale+/an upon ,ilin1 a

-ond& or other +ecurit# in lieu thereo,& in +uch +u/ a+ /a# -e ,i4ed -# the Authorit# conditioned upon hi+ ,aith,ul co/pliance with the pro0i+ion+ o, thi+ Decree6 Pro0ided& that the re1i+tration o, a +ale+/an +hall cea+e upon the ter/ination o, hi+ e/plo#/ent with a dealer or -ro7er. E0er# re1i+tration under thi+ +ection +hall e4pire on the thirt#-,ir+t da# o, Dece/-er o, each #ear. Renewal o, re1i+tration ,or the +ucceedin1 #ear +hall -e 1ranted upon written application there,or /ade not le++ than thirt# nor /ore than +i4t# da#+ -e,ore the ,ir+t da# o, the en+uin1 #ear and upon pa#/ent o, the pre+cri-ed ,ee& without the nece++it# o, ,ilin1 ,urther +tate/ent+ or in,or/ation& unle++ +peci,icall# re.uired -# the Authorit#. All application+ ,iled -e#ond +aid period +hall -e treated a+ ori1inal application+. The na/e+ and addre++e+ o, all per+on+ re1i+tered a+ dealer+& -ro7er+& or +ale+/en +hall -e recorded in a Re1i+ter o, 9ro7er+& Dealer+ and Sale+/en 7ept in the Authorit# which +hall -e open to pu-lic in+pection. S%&$#o' 12. !evocation of registration as dealers, bro(ers or salesmen. Re1i+tration under the precedin1 +ection /a# -e re,u+ed or an# re1i+tration 1ranted thereunder& re0o7ed -# the Authorit# i,& a,ter rea+ona-le notice and hearin1& it +hall deter/ine that +uch applicant or re1i+trant6 $. *a+ 0iolated an# pro0i+ion o, thi+ Decree or an# rule or re1ulation /ade hereunder2 or %. *a+ /ade a /aterial ,al+e +tate/ent in hi+ application ,or re1i+tration2 or C. *a+ -een 1uilt# o, a ,raudulent act in connection with an# +ale o, a +u-di0i+ion lot or condo/iniu/ unit2 or @. *a+ de/on+trated hi+ unworthine++ to tran+act the -u+ine++ o, dealer& -ro7er& or +ale+/an& a+ the ca+e /a# -e. In ca+e o, char1e+ a1ain+t a +ale+/an& notice thereo, +hall al+o -e 1i0en the -ro7er or dealer e/plo#in1 +uch +ale+/an. Pendin1 hearin1 o, the ca+e& the Authorit# +hall ha0e the power to order the +u+pen+ion o, the dealer<+& -ro7er<+& o, +ale+/an<+ re1i+tration2 pro0ided& that +uch order +hall +tate the cau+e ,or the +u+pen+ion. The +u+pen+ion or re0ocation o, the re1i+tration o, a dealer or -ro7er +hall carr# with it all the +u+pen+ion or re0ocation o, the re1i+tration+ o, all hi+ +ale+/en. T#$l% I" PROCEDURE OR RE"OCATION O REGISTRATION CERTI ICATE

S%&$#o' 1(. Hearing. In the hearin1 ,or deter/inin1 the e4i+tence o, an# 1round or 1round+ ,or the +u+pen+ion and3or re0ocation o, re1i+tration certi,icate and licen+e to +ell a+ pro0ided in Section D and 9 hereo,& the ,ollowin1 +hall -e co/plied with6 =a> Notice. No +uch hearin1 +hall proceed unle++ the re+pondent i+ ,urni+hed with a cop# o, the co/plaint a1ain+t hi/ or i+ noti,ied in writin1 o, the purpo+e o, +uch hearin1. =-> :enue. The hearin1 /a# -e held -e,ore the o,,icer or o,,icer+ de+i1nated -# the Authorit# on the date and place +peci,ied in the notice. =c> Nature o, proceedin1. The proceedin1+ +hall -e non-liti1iou+ and +u//ar# in nature without re1ard to le1al technicalitie+ o-tainin1 in court+ o, law. The Rule+ o, court +hall not appl# in +aid hearin1 e4cept -# analo1# or in a +uppletor# character and whene0er practica-le and con0enient. =d> Power incidental to the hearin1. For the purpo+e o, the hearin1 or other proceedin1 under thi+ Decree& the o,,icer or o,,icer+ de+i1nated to hear the co/plaint +hall ha0e the power to ad/ini+ter oath+& +u-poena witne++e+& conduct ocular in+pection+& ta7e depo+ition+& and re.uire the production o, an# -oo7& paper& corre+pondence& /e/orandu/& or other record which are dee/ed rele0ant or /aterial to the in.uir#. S%&$#o' 1). )ontem t. =a> Direct conte/pt. The o,,icer or o,,icer+ de+i1nated -# the Authorit# to hear the co/plaint /a# +u//aril# adjud1e in direct conte/pt an# per+on 1uilt# o, /i+-eha0ior in the pre+ence o, or +o near the +aid hearin1 o,,icial+ a+ to o-+truct or interrupt the proceedin1+ -e,ore the +a/e or o, re,u+al to -e +worn or to an+wer a+ a witne++ or to +u-+cri-e an a,,ida0it or depo+ition when law,ull# re.uired to do +o. The per+on ,ound 1uilt# o, direct conte/pt under thi+ +ection +hall -e puni+hed -# a ,ine not e4ceedin1 Fi,t# =P A.AA> Pe+o+ or i/pri+on/ent not e4ceedin1 ,i0e = > da#+& or -oth. =-> Indirect conte/pt. The o,,icer or o,,icer+ de+i1nated to hear the co/plaint /a# al+o adjud1e an# per+on in indirect conte/pt on 1round+ and in the /anner pre+cri-ed in Rule !$ o, the Re0i+ed Rule+ o, Court. S%&$#o' 15. Decision. The ca+e +hall -e decided within thirt# =CA> da#+ ,ro/ the ti/e the +a/e i+ +u-/itted ,or deci+ion. The Deci+ion /a# order the re0ocation o, the re1i+tration o, the +u-di0i+ion or condo/iniu/ project& the +u+pen+ion& cancellation& or re0ocation o, the licen+e to +ell and3or ,or,eiture& in whole or in part& o, the per,or/ance -ond /entioned in Section ' hereo,. In ca+e ,or,eiture o,

the -ond i+ ordered& the Deci+ion /a# direct the pro0incial or cit# en1ineer to underta7e or cau+e the con+truction o, road+ and o, other re.uire/ent+ ,or the +u-di0i+ion or condo/iniu/ a+ +tipulated in the -ond& char1ea-le to the a/ount ,or,eited. Such deci+ion +hall -e i//ediatel# e4ecutor# and +hall -eco/e ,inal a,ter the lap+e o, $ da#+ ,ro/ the date o, receipt o, the Deci+ion. S%&$#o' 16. )ease and Desist *rder. )hene0er it +hall appear to the Authorit# that an# per+on i+ en1a1ed or a-out to en1a1e in an# act or practice which con+titute+ or will con+titute a 0iolation o, the pro0i+ion+ o, thi+ Decree& or o, an# rule or re1ulation thereunder& it /a#& upon due notice and hearin1 a+ pro0ided in Section $C hereo,& i++ue a cea+e and de+i+t order to enjoin +uch act or practice+. S%&$#o' 17. !egistration. All contract+ to +ell& deed+ o, +ale and other +i/ilar in+tru/ent+ relati0e to the +ale or con0e#ance o, the +u-di0i+ion lot+ and condo/iniu/ unit+& whether or not the purcha+e price i+ paid in ,ull& +hall -e re1i+tered -# the +eller in the 5,,ice o, the Re1i+ter o, Deed+ o, the pro0ince or cit# where the propert# i+ +ituated. )hene0er a +u-di0i+ion plan dul# appro0ed in accordance with Section @ hereo,& to1ether with the corre+pondin1 owner<+ duplicate certi,icate o, title& i+ pre+ented to the Re1i+ter o, Deed+ ,or re1i+tration& the Re1i+ter o, Deed+ +hall re1i+ter the +a/e in accordance with the pro0i+ion+ o, the Land Re1i+tration Act& a+ a/ended6 Pro0ided& howe0er& that it there i+ a +treet& pa++a1ewa# or re.uired open +pace delineated on a co/ple4 +u-di0i+ion plan herea,ter appro0ed and a+ de,ined in thi+ Decree& the Re1i+ter o, Deed+ +hall annotate on the new certi,icate o, title co0erin1 the +treet& pa++a1ewa# or open +pace& a /e/orandu/ to the e,,ect that e4cept -# wa# o, donation in ,a0or o, a cit# or /unicipalit#& no portion o, an# +treet& pa++a1ewa#& or open +pace +o delineated on the plan +hall -e clo+ed or otherwi+e di+po+ed o, -# the re1i+tered owner without the re.ui+ite appro0al a+ pro0ided under Section %% o, thi+ Decree. S%&$#o' 1*. +ortgages. No /ort1a1e on an# unit or lot +hall -e /ade -# the owner or de0eloper without prior written appro0al o, the Authorit#. Such appro0al +hall not -e 1ranted unle++ it i+ +hown that the proceed+ o, the /ort1a1e loan +hall -e u+ed ,or the de0elop/ent o, the condo/iniu/ or +u-di0i+ion project and e,,ecti0e /ea+ure+ ha0e -een pro0ided to en+ure +uch utiliBation. The loan 0alue o, each lot or unit co0ered -# the /ort1a1e +hall -e deter/ined and the -u#er thereo,& i, an#& +hall -e noti,ied -e,ore the relea+e o, the loan. The -u#er /a#& at hi+ option& pa# hi+ in+tall/ent ,or the lot or unit directl# to the /ort1a1ee who +hall appl# the pa#/ent+ to the corre+pondin1 /ort1a1e inde-tedne++ +ecured -# the particular lot or unit -ein1 paid ,or& with a 0iew to ena-lin1 +aid -u#er to o-tain title o0er the lot or unit pro/ptl# a,ter ,ull pa#/ent thereto2 S%&$#o' 19. Advertisements. Ad0erti+e/ent+ that /a# -e /ade -# the owner or de0eloper throu1h new+paper& radio& tele0i+ion& lea,let+& circular+ or an# other ,or/ a-out the +u-di0i+ion or the condo/iniu/ or it+ operation+ or acti0itie+ /u+t

re,lect the real ,act+ and /u+t -e pre+ented in +uch /anner that will not tend to /i+lead or decei0e the pu-lic. The owner or de0eloper +hall an+wera-le and lia-le ,or the ,acilitie+& i/pro0e/ent+& in,ra+tructure+ or other ,or/+ o, de0elop/ent repre+ented or pro/i+ed in -rochure+& ad0erti+e/ent+ and other +ale+ propa1anda di++e/inated -# the owner or de0eloper or hi+ a1ent+ and the +a/e +hall ,or/ part o, the +ale+ warrantie+ en,orcea-le a1ain+t +aid owner or de0eloper& jointl# and +e0erall#. Failure to co/pl# with the+e warrantie+ +hall al+o -e puni+ha-le in accordance with the penaltie+ pro0ided ,or in thi+ Decree. S%&$#o' 2+. Time of )om letion. E0er# owner or de0eloper +hall con+truct and pro0ide the ,acilitie+& i/pro0e/ent+& in,ra+tructure+ and other ,or/+ o, de0elop/ent& includin1 water +uppl# and li1htin1 ,acilitie+& which are o,,ered and indicated in the appro0ed +u-di0i+ion or condo/iniu/ plan+& -rochure+& pro+pectu+& printed /atter+& letter+ or in an# ,or/ o, ad0erti+e/ent& within one #ear ,ro/ the date o, the i++uance o, the licen+e ,or the +u-di0i+ion or condo/iniu/ project or +uch other period o, ti/e a+ /a# -e ,i4ed -# the Authorit#. S%&$#o' 21. #ales "rior to Decree. In ca+e+ o, +u-di0i+ion lot+ or condo/iniu/ unit+ +old or di+po+ed o, prior to the e,,ecti0it# o, thi+ Decree& it +hall -e incu/-ent upon the owner or de0eloper o, the +u-di0i+ion or condo/iniu/ project to co/plete co/pliance with hi+ or it+ o-li1ation+ a+ pro0ided in the precedin1 +ection within two #ear+ ,ro/ the date o, thi+ Decree unle++ otherwi+e e4tended -# the Authorit# or unle++ an ade.uate per,or/ance -ond i+ ,iled in accordance with Section ' hereo,. Failure o, the owner or de0eloper to co/pl# with the o-li1ation+ under thi+ and the precedin1 pro0i+ion+ +hall con+titute a 0iolation puni+ha-le under Section+ CD and C9 o, thi+ Decree. S%&$#o' 22. Alteration of "lans. No owner or de0eloper +hall chan1e or alter the road+& open +pace+& in,ra+tructure+& ,acilitie+ ,or pu-lic u+e and3or other ,or/ o, +u-di0i+ion de0elop/ent a+ contained in the appro0ed +u-di0i+ion plan and3or repre+ented in it+ ad0erti+e/ent+& without the per/i++ion o, the Authorit# and the written con,or/it# or con+ent o, the dul# or1aniBed ho/eowner+ a++ociation& or in the a-+ence o, the latter& -# the /ajorit# o, the lot -u#er+ in the +u-di0i+ion. S%&$#o' 2(. Non,-orfeiture of "ayments. No in+tall/ent pa#/ent /ade -# a -u#er in a +u-di0i+ion or condo/iniu/ project ,or the lot or unit he contracted to -u# +hall -e ,or,eited in ,a0or o, the owner or de0eloper when the -u#er& a,ter due notice to the owner or de0eloper& de+i+t+ ,ro/ ,urther pa#/ent due to the ,ailure o, the owner or de0eloper to de0elop the +u-di0i+ion or condo/iniu/ project accordin1 to the appro0ed plan+ and within the ti/e li/it ,or co/pl#in1 with the +a/e. Such -u#er /a#& at hi+ option& -e rei/-ur+ed the total a/ount

paid includin1 a/ortiBation intere+t+ -ut e4cludin1 delin.uenc# intere+t+& with intere+t thereon at the le1al rate. S%&$#o' 2). -ailure to ay installments. The ri1ht+ o, the -u#er in the e0ent o, thi+ ,ailure to pa# the in+tall/ent+ due ,or rea+on+ other than the ,ailure o, the owner or de0eloper to de0elop the project +hall -e 1o0erned -# Repu-lic Act No. ' %. )here the tran+action or contract wa+ entered into prior to the e,,ecti0it# o, Repu-lic Act No. ' % on Au1u+t %'& $9!%& the de,aultin1 -u#er +hall -e entitled to the corre+pondin1 re,und -a+ed on the in+tall/ent+ paid a,ter the e,,ecti0it# o, the law in the a-+ence o, an# pro0i+ion in the contract to the contrar#. S%&$#o' 25. .ssuance of Title. The owner or de0eloper +hall deli0er the title o, the lot or unit to the -u#er upon ,ull pa#/ent o, the lot or unit. No ,ee& e4cept tho+e re.uired ,or the re1i+tration o, the deed o, +ale in the Re1i+tr# o, Deed+& +hall -e collected ,or the i++uance o, +uch title. In the e0ent a /ort1a1e o0er the lot or unit i+ out+tandin1 at the ti/e o, the i++uance o, the title to the -u#er& the owner or de0eloper +hall redee/ the /ort1a1e or the corre+pondin1 portion thereo, within +i4 /onth+ ,ro/ +uch i++uance in order that the title o0er an# ,ull# paid lot or unit /a# -e +ecured and deli0ered to the -u#er in accordance herewith. S%&$#o' 26. !ealty Tax. Real e+tate ta4 and a++e++/ent on a lot or unit +hall de paid -# the owner or de0eloper without recour+e to the -u#er ,or a+ lon1 a+ the title ha+ not pa++ed the -u#er2 Pro0ided& howe0er& that i, the -u#er ha+ actuall# ta7en po++e++ion o, and occupied the lot or unit& he +hall -e lia-le to the owner or de0eloper ,or +uch ta4 and a++e++/ent e,,ecti0e the #ear ,ollowin1 +uch ta7in1 o, po++e++ion and occupanc#. S%&$#o' 27. *ther )harges. No owner or de0eloper +hall le0# upon an# lot or -u#er a ,ee ,or an alle1ed co//unit# -ene,it. Fee+ to ,inance +er0ice+ ,or co//on co/,ort& +ecurit# and +anitation /a# -e collected onl# -# a properl# or1aniBed ho/eowner+ a++ociation and onl# with the con+ent o, a /ajorit# o, the lot or unit -u#er+ actuall# re+idin1 in the +u-di0i+ion or condo/iniu/ project. S%&$#o' 2*. Access to "ublic *ffices in the #ubdivisions. No owner or de0eloper +hall den# an# per+on ,ree acce++ to an# 1o0ern/ent o,,ice or pu-lic e+ta-li+h/ent located within the +u-di0i+ion or which /a# -e reached onl# -# pa++in1 throu1h the +u-di0i+ion. S%&$#o' 29. !ight of Way to "ublic !oad. The owner or de0eloper o, a +u-di0i+ion without acce++ to an# e4i+tin1 pu-lic road or +treet /u+t +ecure a ri1ht o, wa# to a pu-lic road or +treet and +uch ri1ht o, wa# /u+t -e de0eloped and /aintained accordin1 to the re.uire/ent o, the 1o0ern/ent and authoritie+ concerned.

S%&$#o' (+. *rgani/ation of Homeowners Association. The owner or de0eloper o, a +u-di0i+ion project or condo/iniu/ project +hall initiate the or1aniBation o, a ho/eowner+ a++ociation a/on1 the -u#er+ and re+ident+ o, the project+ ,or the purpo+e o, pro/otin1 and protectin1 their /utual intere+t and a++i+t in their co//unit# de0elop/ent. S%&$#o' (1. Donations of roads and o en s aces to local government. The re1i+tered owner or de0eloper o, the +u-di0i+ion or condo/iniu/ project& upon co/pletion o, the de0elop/ent o, +aid project /a#& at hi+ option& con0e# -# wa# o, donation the road+ and open +pace+ ,ound within the project to the cit# or /unicipalit# wherein the project i+ located. 8pon acceptance o, the donation -# the cit# or /unicipalit# concerned& no portion o, the area donated +hall therea,ter -e con0erted to an# other purpo+e or purpo+e+ unle++ a,ter hearin1& the propo+ed con0er+ion i+ appro0ed -# the Authorit#. S%&$#o' (2. "hases of #ubdivision. For purpo+e+ o, co/pl#in1 with the pro0i+ion+ o, thi+ Decree& the owner or de0eloper /a# di0ide the de0elop/ent and +ale o, the +u-di0i+ion into pha+e+& each pha+e to co0er not le++ than ten hectare+. The re.uire/ent i/po+ed -# thi+ Decree on the +u-di0i+ion a+ a whole +hall -e dee/ed i/po+ed on each pha+e. S%&$#o' ((. Nullity of waivers. An# condition& +tipulation& or pro0i+ion in contract o, +ale where-# an# per+on wai0e+ co/pliance with an# pro0i+ion o, thi+ Decree or o, an# rule or re1ulation i++ued thereunder +hall -e 0oid. S%&$#o' (). 0isitorial owers. Thi+ Authorit#& throu1h it+ dul# authoriBed repre+entati0e /a#& at an# ti/e& /a7e an e4a/ination into the -u+ine++ a,,air+& ad/ini+tration& and condition o, an# per+on& corporation& partner+hip& cooperati0e& or a++ociation en1a1ed in the -u+ine++ o, +ellin1 +u-di0i+ion lot+ and condo/iniu/ unit+. For thi+ purpo+e& the o,,icial authoriBed +o to do +hall ha0e the authorit# to e4a/ine under oath the director+& o,,icer+& +toc7holder+ or /e/-er+ o, an# corporation& partner+hip& a++ociation& cooperati0e or other per+on+ a++ociated or connected with the -u+ine++ and to i++ue +u-poena or +u-poena duce+ tecu/ in relation to an# in0e+ti1ation that /a# ari+e there,ro/. The Authorit# /a# al+o authoriBe the Pro0incial& Cit# or (unicipal En1ineer& a+ the ca+e /a# -e& to conduct an ocular in+pection o, the project to deter/ine whether the de0elop/ent o, +aid project con,or/+ to the +tandard+ and +peci,ication+ pre+cri-ed -# the 1o0ern/ent. The -oo7+& paper+& letter+& and other docu/ent+ -elon1in1 to the per+on or entitie+ herein /entioned +hall -e open to in+pection -# the Authorit# or it+ dul# authoriBed repre+entati0e. S%&$#o' (5. Ta(e,over Develo ment. The Authorit#& /a# ta7e o0er or cau+e the de0elop/ent and co/pletion o, the +u-di0i+ion or condo/iniu/ project at the

e4pen+e+ o, the owner or de0eloper& jointl# and +e0erall#& in ca+e+ where the owner or de0eloper ha+ re,u+ed or ,ailed to de0elop or co/plete the de0elop/ent o, the project a+ pro0ided ,or in thi+ Decree. The Authorit# /a#& a,ter +uch ta7e-o0er& de/and& collect and recei0e ,ro/ the -u#er+ the in+tall/ent pa#/ent+ due on the lot+& which +hall -e utiliBed ,or the de0elop/ent o, the +u-di0i+ion. S%&$#o' (6. !ules and !egulations. The Authorit# +hall i++ue the nece++ar# +tandard+& rule+ and re1ulation+ ,or the e,,ecti0e i/ple/entation o, the pro0i+ion+ o, thi+ Decree. Such +tandard+& rule+ and re1ulation+ +hall ta7e e,,ect i//ediatel# a,ter their pu-lication three ti/e+ a wee7 ,or two con+ecuti0e wee7+ in an# new+paper o, 1eneral circulation. S%&$#o' (7. De uti/ation of law enforcement agencies. The Authorit# /a# deputiBe the Philippine Con+ta-ular# or an# law en,orce/ent a1enc# in the e4ecution o, it+ ,inal order+& rulin1+ or deci+ion+. S%&$#o' (*. Administrative -ines. The Authorit# /a# pre+cri-e and i/po+e ,ine+ not e4ceedin1 ten thou+and pe+o+ ,or 0iolation+ o, the pro0i+ion+ o, thi+ Decree or o, an# rule or re1ulation thereunder. Fine+ +hall -e pa#a-le to the Authorit# and en,orcea-le throu1h writ+ o, e4ecution in accordance with the pro0i+ion+ o, the Rule+ o, Court. S%&$#o' (9. "enalties. An# per+on who +hall 0iolate an# o, the pro0i+ion+ o, thi+ Decree and3or an# rule or re1ulation that /a# -e i++ued pur+uant to thi+ Decree +hall& upon con0iction& -e puni+hed -# a ,ine o, not /ore than twent# thou+and =P%A&AAA.AA> pe+o+ and3or i/pri+on/ent o, not /ore than ten #ear+6 Pro0ided& That in the ca+e o, corporation+& partner+hip& cooperati0e+& or a++ociation+& the Pre+ident& (ana1er or Ad/ini+trator or the per+on who ha+ char1e o, the ad/ini+tration o, the -u+ine++ +hall -e cri/inall# re+pon+i-le ,or an# 0iolation o, thi+ Decree and3or the rule+ and re1ulation+ pro/ul1ated pur+uant thereto. S%&$#o' )+. %iability of controlling ersons. E0er# per+on who directl# or indirectl# control+ an# per+on lia-le under an# pro0i+ion o, thi+ Decree or o, an# rule or re1ulation i++ued thereunder +hall -e lia-le jointl# and +e0erall# with and to the +a/e e4tent a+ +uch controlled per+on unle++ the controllin1 per+on acted in 1ood ,aith and did not directl# or indirectl# induce the act or act+ con+titutin1 the 0iolation or cau+e o, action. S%&$#o' )1. *ther remedies. The ri1ht+ and re/edie+ pro0ided in thi+ Decree +hall -e in addition to an# and all other ri1ht+ and re/edie+ that /a# -e a0aila-le under e4i+tin1 law+.

S%&$#o' )2. !e ealing clause. All law+& e4ecuti0e order+& rule+ and re1ulation+ or part thereo, incon+i+tent with the pro0i+ion+ o, thi+ Decree are here-# repealed or /odi,ied accordin1l#. S%&$#o' )(. 'ffectivity. Thi+ Decree +hall ta7e e,,ect upon it+ appro0al. Done in the Cit# o, (anila& thi+ $%th da# o, "ul#& in the #ear o, 5ur Lord& nineteen hundred and +e0ent#-+i4.