WHEREAS, it is the policy of the State to afford its inhabitants the
requirements of decent human settlement and to provide them with ample
opportunities for improving their quality of life;
WHEREAS, numerous reports reveal that many real estate subdivision
owners, developers, operators, and/or sellers have reneged on their
representations and obligations to provide and maintain properly
subdivision roads, drainage, sewerage, water systems, lighting systems,
and other similar basic requirements, thus endangering the health and
safety of home and lot buyers;
WHEREAS, reports of alarming
magnitude also show cases of
swindling and fraudulent manipulations perpetrated by unscrupulous
subdivision and condominium sellers and operators, such as failure to
deliver titles to the buyers or titles free from liens and
encumbrances, and to pay real estate taxes, and fraudulent sales of the
same subdivision lots to different innocent purchasers for value;
WHEREAS, these acts not only
undermine the land and housing
program of the government but also defeat the objectives of the New
Society, particularly the promotion of peace and order and the
enhancement of the economic, social and moral condition of the Filipino
people;
WHEREAS, this state of affairs
has rendered it imperative that the
real estate subdivision and condominium businesses be closely
supervised and regulated, and that penalties be imposed on fraudulent
practices and manipulations committed in connection therewith.
NOW, THEREFORE, I, FERDINAND
E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order:chanroblesvirtuallawlibrary
Title I
TITLE AND DEFINITIONS
Sec. 1. Title - This Decree shall be known as THE SUBDIVISION AND
CONDOMINIUM BUYERS' PROTECTIVE DECREE.
Sec. 2. Definition of Terms -
When used in this Decree, the
following terms shall, unless the context otherwise indicates, have the
following respective meanings:chanroblesvirtuallawlibrary
a) Person. - "Person" shall
mean a natural or a juridical person.
A juridical person refers to a business firm whether a corporation,
partnership, cooperative or associations or a single proprietorship.
b) Sale or sell. - "Sale" or
"sell" shall include every
disposition, or attempt to dispose, for a valuable consideration, of a
subdivision lot, including the building and other improvements thereof,
if any, in a subdivision project or a condominium unit in a condominium
project. "Sale" and "sell" shall also include a contract to sell, a
contract of purchase and sale, an exchange, an attempt to sell, an
option of sale or purchase, a solicitation of a sale, or an offer to
sell, directly or by an agent, or by a circular, letter, advertisement
or otherwise.
chan robles virtual law library
A privilege given to a member
of a cooperative, corporation,
partnership, or any association and/or the issuance of a certificate or
receipt evidencing or giving the right of participation in, or right
to, any land in consideration of payment of the membership fee or dues,
shall be deemed a sale within the meaning of this definition.
c) Buy and purchase. - The
"buy" and "purchase" shall include any
contract to buy, purchase, or otherwise acquire for a valuable
consideration a subdivision lot, including the building and other
improvements, if any, in a subdivision project or a condominium unit in
a condominium project.
d) 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.
e) Subdivision lot. -
"Subdivision lot" shall mean any of the
lots, whether residential, commercial, industrial, or recreational, in
a subdivision project.
f) 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.
g) 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.
h) 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.
i) Owner. - "Owner" shall refer to the registered owner of the land
subject of a subdivision or a condominium project.
j) Developer. - "Developer"
shall mean the person who develops or
improves the subdivision project or condominium project for and in
behalf of the owner thereof.
k) Dealer. - "Dealer" shall
mean any person directly engaged as
principal in the business of buying, selling or exchanging real estate
whether on a full-time or part-time basis.
l) Broker. - "Broker" shall
mean any person who, for commission or
other compensation, undertakes to sell or negotiate the sale of a real
estate belonging to another.
m) Salesman. - "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.
n) Authority. - "Authority"
shall mean the National Housing Authority.
Title
II
REGISTRATION AND LICENSE TO SELL
Sec. 3. National Housing
Authority - The National Housing
Authority shall have exclusive jurisdiction to regulate the real estate
trade and business in accordance with the provisions of this Decree.
Sec. 4. Registration of
Projects - The registered owner of a
parcel of land who wishes to convert the same into a subdivision
project shall submit his subdivision plan to the Authority which shall
act upon and approve the same, upon a finding that the plan complies
with the Subdivision Standards and Regulations enforceable at the time
the plan is submitted. The same procedure shall be followed in the case
of a plan for a condominium project except that, in addition, said
Authority shall act upon and approve the plan with respect to the
building or buildings included in the condominium project in accordance
with the National Building Code (R.A. No. 6541).
The subdivision plan, as so
approved, shall then be submitted to
the Director of Lands for approval in accordance with the procedure
prescribed in Section 44 of the Land Registration Act (Act No. 496, as
amended by R.A. No. 440): Provided, that it case of complex subdivision
plans, court approval shall no longer be required. The condominium plan
as likewise so approved, shall be submitted to the Register of Deeds of
the province or city in which the property lies and the same shall be
acted upon subject to the conditions and in accordance with the
procedure prescribed in Section 4 of the Condominium Act (R.A. No.
4726).
The owner or the real estate
dealer interested in the sale of lots
or units, respectively, in such subdivision project or condominium
project shall register the project with the Authority by filing
therewith a sworn registration statement containing the following
information:chanroblesvirtuallawlibrary
a) Name of the owner;chanroblesvirtualawlibrary
b) The location of the owner's principal business office, and if
the owner is a non-resident Filipino, the name and address of his agent
or representative in the Philippines is authorized to receive notice;
c) The names and addresses of all
the directors and officers of the
business firm, if the owner be a corporation, association, trust, or
other entity, and of all the partners, if it be a partnership;
d) The general character of the
business actually transacted or to be transacted by the owner; and
e) A statement of the capitalization
of the owner, including the
authorized and outstanding amounts of its capital stock and the
proportion thereof which is paid-up.
The following documents shall
be attached to the registration statement:chanroblesvirtuallawlibrary
a) A copy of the subdivision plan or
condominium plan as approved
in accordance with the first and second paragraphs of this section.
b) A copy of any circular,
prospectus, brochure, advertisement,
letter, or communication to be used for the public offering of the
subdivision lots or condominium units;
c) In case of a business firm, a
balance sheet showing the amount
and general character of its assets and liabilities and a copy of its
articles of incorporation or articles of partnership or association, as
the case may be, with all the amendments thereof and existing by-laws
or instruments corresponding thereto.
d) A title to the property which is
free from all liens and
encumbrances: Provided, however, that in case any subdivision lot or
condominium unit is mortgaged, it is sufficient if the instrument of
mortgage contains a stipulation that the mortgagee shall release the
mortgage on any subdivision lot or condominium unit as soon as the full
purchase price for the same is paid by the buyer.
The person filing the registration statement shall pay the registration
fees prescribed therefor by the Authority.
Thereupon, the Authority shall immediately cause to be published a
notice of the filing of the registration statement at the expense of
the applicant-owner or dealer, in two newspapers general circulation,
one published in English and another in Pilipino, once a week for two
consecutive weeks, reciting that a registration statement for the sale
of subdivision lots or condominium units has been filed in the National
Housing Authority; that the aforesaid registration statement, as well
as the papers attached thereto, are open to inspection during business
hours by interested parties, under such regulations as the Authority
may impose; and that copies thereof shall be furnished to any party
upon payment of the proper fees.
The subdivision project of the
condominium project shall be deemed
registered upon completion of the above publication requirement. The
fact of such registration shall be evidenced by a registration
certificate to be issued to the applicant-owner or dealer.
Sec. 5. License to sell. -
Such owner or dealer to whom has been
issued a registration certificate shall not, however, be authorized to
sell any subdivision lot or condominium unit in the registered project
unless he shall have first obtained a license to sell the project
within two weeks from the registration of such project.
The Authority, upon proper application therefor, shall
issue to such
owner or dealer of a registered project a license to sell the project
if, after an examination of the registration statement filed by said
owner or dealer and all the pertinent documents attached thereto, he is
convinced that the owner or dealer is of good repute, that his business
is financially stable, and that the proposed sale of the subdivision
lots or condominium units to the public would not be fraudulent.
Sec. 6. Performance Bond. - No
license to sell subdivision lots or
condominium units shall be issued by the Authority under Section 5 of
this Decree unless the owner or dealer shall have filed an adequate
performance bond approved by said Authority to guarantee the
construction and maintenance of the roads, gutters, drainage, sewerage,
water system, lighting systems, and full development of the subdivision
project or the condominium project and the compliance by the owner or
dealer with the applicable laws and rules and regulations.
The performance bond shall be
executed in favor of the Republic of
the Philippines and shall authorize the Authority to use the proceeds
thereof for the purposes of its undertaking in case of forfeiture as
provided in this Decree.
Sec. 7. Exempt transactions. -
A license to sell and performance
bond shall not be required in any of the following transactions:chanroblesvirtuallawlibrary
a) Sale of a subdivision lot
resulting from the partition of land among co-owners and co-heirs.
b) Sale or transfer of a subdivision lot by the original purchaser
thereof and any subsequent sale of the same lot.
c) Sale of a subdivision lot or a
condominium unit by or for the
account of a mortgagee in the ordinary course of business when
necessary to liquidate a bona fide debt.
Sec. 8. Suspension of license
to sell. - Upon verified complaint
by a buyer of a subdivision lot or a condominium unit in any interested
party, the Authority may, in its discretion, immediately suspend the
owner's or dealer's license to sell pending investigation and hearing
of the case as provided in Section 13 hereof.
The Authority may motu proprio
suspend the license to sell if, in
its opinion, any information in the registration statement filed by the
owner or dealer is or has become misleading, incorrect, inadequate or
incomplete or the sale or offering for a sale of the subdivision or
condominium project may work or tend to work a fraud upon prospective
buyers.
The suspension order may be
lifted if, after notice and hearing,
the Authority is convinced that the registration statement is accurate
or that any deficiency therein has been corrected or supplemented or
that the sale to the public of the subdivision or condominium project
will neither be fraudulent not result in fraud. It shall also be lifted
upon dismissal of the complaint for lack of legal basis.
chan robles virtual law library
Until the final entry of an
order of suspension, the suspension of
the right to sell the project, though binding upon all persons notified
thereof, shall be deemed confidential unless it shall appear that the
order of suspension has in the meantime been violated.
Sec. 9. Revocation of
registration certificate and license to
sell. - The Authority may, motu proprio or upon verified complaint
filed by a buyer of a subdivision lot or condominium unit, revoke the
registration of any subdivision project or condominium project and the
license to sell any subdivision lot or condominium unit in said project
by issuing an order to this effect, with his findings in respect
thereto, if upon examination into the affairs of the owner or dealer
during a hearing as provided for in Section 14 hereof, if shall appear
there is satisfactory evidence that the said owner or dealer:chanroblesvirtuallawlibrary
a) Is insolvent; or
b) has violated any of the provisions of
this Decree or any
applicable rule or regulation of the Authority, or any undertaking of
his/its performance bond; or
c) Has been or is engaged or is
about to engage in fraudulent transactions; or
d) Has made any misrepresentation in
any prospectus, brochure,
circular or other literature about the subdivision project or
condominium project that has been distributed to prospective buyers; or
e) Is of bad business repute; or
f) Does not conduct his business in
accordance with law or sound business principles.
Where the owner or dealer is a
partnership or corporation or an
unincorporated association, it shall be sufficient cause for
cancellation of its registration certificate and its license to sell,
if any member of such partnership or any officer or director of such
corporation or association has been guilty of any act or omission which
would be cause for refusing or revoking the registration of an
individual dealer, broker or salesman as provided in Section 11 hereof.
Sec. 10. Registers of
subdivision lots and condominium units. - A
record of subdivision lots and condominium units shall be kept in the
Authority wherein shall be entered all orders of the Authority
affecting the condition or status thereof. The registers of subdivision
lots and condominium units shall be open to public inspection subject
to such reasonable rules as the Authority may prescribe.
Title
III
DEALERS, BROKERS AND SALESMEN
Sec. 11. Registration of
dealers, brokers and salesmen. - No real
estate dealer, broker or salesman shall engage in the business of
selling subdivision lots or condominium units unless he has registered
himself with the Authority in accordance with the provisions of this
section.
If the Authority shall find
that the applicant is of good repute
and has complied with the applicable rules of the Authority, including
the payment of the prescribed fee, he shall register such applicant as
a dealer, broker or salesman upon filing a bond, or other security in
lieu thereof, in such sum as may be fixed by the Authority conditioned
upon his faithful compliance with the provisions of this Decree:
Provided, that the registration of a salesman shall cease upon the
termination of his employment with a dealer or broker.
Every registration under this
section shall expire on the
thirty-first day of December of each year. Renewal of registration for
the succeeding year shall be granted upon written application therefor
made not less than thirty nor more than sixty days before the first day
of the ensuing year and upon payment of the prescribed fee, without the
necessity of filing further statements or information, unless
specifically required by the Authority. All applications filed beyond
said period shall be treated as original applications.
The names and addresses of all
persons registered as dealers,
brokers, or salesmen shall be recorded in a Register of Brokers,
Dealers and Salesmen kept in the Authority which shall be open to
public inspection.
Sec. 12. Revocation of
registration as dealers, brokers or
salesmen. - Registration under the preceding section may be refused or
any registration granted thereunder, revoked by the Authority if, after
reasonable notice and hearing, it shall determine that such applicant
or registrant:chanroblesvirtuallawlibrary
1) Has violated any provision of
this Decree or any rule or regulation made hereunder; or
2) Has made a material false
statement in his application for registration; or
3) Has been guilty of a fraudulent act in connection with any sale of a
subdivision lot or condominium unit; or
4) Has demonstrated his unworthiness to transact the business of
dealer, broker, or salesman, as the case may be.
In case of charges against a salesman, notice thereof shall also be
given the broker or dealer employing such salesman.
Pending hearing of the case, the Authority shall have the power to
order the suspension of the dealer's, broker's, of salesman's
registration; provided, that such order shall state the cause for the
suspension
The suspension or revocation
of the registration of a dealer or
broker shall carry with it all the suspension or revocation of the
registrations of all his salesmen.
Title
IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE
Sec. 13. Hearing. - In the
hearing for determining the existence
of any ground or grounds for the suspension and/or revocation of
registration certificate and license to sell as provided in Section 8
and 9 hereof, the following shall be complied with:chanroblesvirtuallawlibrary
a) Notice. - No such hearing shall
proceed unless the respondent is
furnished with a copy of the complaint against him or is notified in
writing of the purpose of such hearing.
b) Venue. - The hearing may be held before the officer or officers
designated by the Authority on the date and place specified in the
notice.
c) Nature of proceeding. - The
proceedings shall be non-litigious
and summary in nature without regard to legal technicalities obtaining
in courts of law. The Rules of court shall not apply in said hearing
except by analogy or in a suppletory character and whenever practicable
and convenient.
d) Power incidental to the hearing.
- For the purpose of the
hearing or other proceeding under this Decree, the officer or officers
designated to hear the complaint shall have the power to administer
oaths, subpoena witnesses, conduct ocular inspections, take
depositions, and require the production of any book, paper,
correspondence, memorandum, or other record which are deemed relevant
or material to the inquiry.
Sec. 14. Contempt.
a) Direct contempt. - The officer or
officers designated by the
Authority to hear the complaint may summarily adjudge in direct
contempt any person guilty of misbehavior in the presence of or so near
the said hearing officials as to obstruct or interrupt the proceedings
before the same or of refusal to be sworn or to answer as a witness or
to subscribe an affidavit or deposition when lawfully required to do
so. The person found guilty of direct contempt under this section shall
be punished by a fine not exceeding Fifty (P50.00) Pesos or
imprisonment not exceeding five (5) days, or both.
b) Indirect contempt. - The officer
or officers designated to hear
the complaint may also adjudge any person in indirect contempt on
grounds and in the manner prescribed in Rule 71 of the Revised Rules of
Court.
Sec. 15. Decision. - The case
shall be decided within thirty (30)
days from the time the same is submitted for decision. The Decision may
order the revocation of the registration of the subdivision or
condominium project, the suspension, cancellation, or revocation of the
license to sell and/or forfeiture, in whole or in part, of the
performance bond mentioned in Section 6 hereof. In case forfeiture of
the bond is ordered, the Decision may direct the provincial or city
engineer to undertake or cause the construction of roads and of other
requirements for the subdivision or condominium as stipulated in the
bond, chargeable to the amount forfeited. Such decision shall be
immediately executory and shall become final after the lapse of 15 days
from the date of receipt of the Decision.
Sec. 16. Cease and Desist
Order. - Whenever it shall appear to the
Authority that any person is engaged or about to engage in any act or
practice which constitutes or will constitute a violation of the
provisions of this Decree, or of any rule or regulation thereunder, it
may, upon due notice and hearing as provided in Section 13 hereof,
issue a cease and desist order to enjoin such act or practices.
Sec. 17. Registration. - All
contracts to sell, deeds of sale and
other similar instruments relative to the sale or conveyance of the
subdivision lots and condominium units, whether or not the purchase
price is paid in full, shall be registered by the seller in the Office
of the Register of Deeds of the province or city where the property is
situated.
chan robles virtual law library
Whenever a subdivision plan
duly approved in accordance with
Section 4 hereof, together with the corresponding owner's duplicate
certificate of title, is presented to the Register of Deeds for
registration, the Register of Deeds shall register the same in
accordance with the provisions of the Land Registration Act, as
amended: Provided, however, that it there is a street, passageway or
required open space delineated on a complex subdivision plan hereafter
approved and as defined in this Decree, the Register of Deeds shall
annotate on the new certificate of title covering the street,
passageway or open space, a memorandum to the effect that except by way
of donation in favor of a city or municipality, no portion of any
street, passageway, or open space so delineated on the plan shall be
closed or otherwise disposed of by the registered owner without the
requisite approval as provided under Section 22 of this Decree.
Sec. 18. Mortgages. - No
mortgage on any unit or lot shall be made
by the owner or developer without prior written approval of the
Authority. Such approval shall not be granted unless it is shown that
the proceeds of the mortgage loan shall be used for the development of
the condominium or subdivision project and effective measures have been
provided to ensure such utilization. The loan value of each lot or unit
covered by the mortgage shall be determined and the buyer thereof, if
any, shall be notified before the release of the loan. The buyer may,
at his option, pay his installment for the lot or unit directly to the
mortgagee who shall apply the payments to the corresponding mortgage
indebtedness secured by the particular lot or unit being paid for, with
a view to enabling said buyer to obtain title over the lot or unit
promptly after full payment thereto;
Sec. 19. Advertisements. -
Advertisements that may be made by the
owner or developer through newspaper, radio, television, leaflets,
circulars or any other form about the subdivision or the condominium or
its operations or activities must reflect the real facts and must be
presented in such manner that will not tend to mislead or deceive the
public.
The owner or developer shall
answerable and liable for the
facilities, improvements, infrastructures or other forms of development
represented or promised in brochures, advertisements and other sales
propaganda disseminated by the owner or developer or his agents and the
same shall form part of the sales warranties enforceable against said
owner or developer, jointly and severally. Failure to comply with these
warranties shall also be punishable in accordance with the penalties
provided for in this Decree.
Sec. 20. Time of Completion. -
Every owner or developer shall
construct and provide the facilities, improvements, infrastructures and
other forms of development, including water supply and lighting
facilities, which are offered and indicated in the approved subdivision
or condominium plans, brochures, prospectus, printed matters, letters
or in any form of advertisement, within one year from the date of the
issuance of the license for the subdivision or condominium project or
such other period of time as may be fixed by the Authority.
Sec. 21. Sales Prior to
Decree. - In cases of subdivision lots or
condominium units sold or disposed of prior to the effectivity of this
Decree, it shall be incumbent upon the owner or developer of the
subdivision or condominium project to complete compliance with his or
its obligations as provided in the preceding section within two years
from the date of this Decree unless otherwise extended by the Authority
or unless an adequate performance bond is filed in accordance with
Section 6 hereof.
Failure of the owner or
developer to comply with the obligations
under this and the preceding provisions shall constitute a violation
punishable under Sections 38 and 39 of this Decree.
Sec. 22. Alteration of Plans.
- No owner or developer shall change
or alter the roads, open spaces, infrastructures, facilities for public
use and/or other form of subdivision development as contained in the
approved subdivision plan and/or represented in its advertisements,
without the permission of the Authority and the written conformity or
consent of the duly organized homeowners association, or in the absence
of the latter, by the majority of the lot buyers in the subdivision.
Sec. 23. Non-Forfeiture of
Payments. - No installment payment made
by a buyer in a subdivision or condominium project for the lot or unit
he contracted to buy shall be forfeited in favor of the owner or
developer when the buyer, after due notice to the owner or developer,
desists from further payment due to the failure of the owner or
developer to develop the subdivision or condominium project according
to the approved plans and within the time limit for complying with the
same. Such buyer may, at his option, be reimbursed the total amount
paid including amortization interests but excluding delinquency
interests, with interest thereon at the legal rate.
Sec. 24. Failure to pay
installments. - The rights of the buyer in
the event of this failure to pay the installments due for reasons other
than the failure of the owner or developer to develop the project shall
be governed by Republic Act No. 6552.
Where
the transaction or contract was entered into prior to the
effectivity of Republic Act No. 6552 on August 26, 1972, the defaulting
buyer shall be entitled to the corresponding refund based on the
installments paid after the effectivity of the law in the absence of
any provision in the contract to the contrary.
Sec. 25. Issuance of Title. -
The owner or developer shall deliver
the title of the lot or unit to the buyer upon full payment of the lot
or unit. No fee, except those required for the registration of the deed
of sale in the Registry of Deeds, shall be collected for the issuance
of such title. In the event a mortgage over the lot or unit is
outstanding at the time of the issuance of the title to the buyer, the
owner or developer shall redeem the mortgage or the corresponding
portion thereof within six months from such issuance in order that the
title over any fully paid lot or unit may be secured and delivered to
the buyer in accordance herewith.
Sec. 26. Realty Tax. - Real
estate tax and assessment on a lot or
unit shall de paid by the owner or developer without recourse to the
buyer for as long as the title has not passed the buyer; Provided,
however, that if the buyer has actually taken possession of and
occupied the lot or unit, he shall be liable to the owner or developer
for such tax and assessment effective the year following such taking of
possession and occupancy.
Sec. 27. Other Charges. - No
owner or developer shall levy upon
any lot or buyer a fee for an alleged community benefit. Fees to
finance services for common comfort, security and sanitation may be
collected only by a properly organized homeowners association and only
with the consent of a majority of the lot or unit buyers actually
residing in the subdivision or condominium project.
Sec. 28. Access to Public
Offices in the Subdivisions. - No owner
or developer shall deny any person free access to any government office
or public establishment located within the subdivision or which may be
reached only by passing through the subdivision.
Sec. 29. Right of Way to
Public Road. - The owner or developer of
a subdivision without access to any existing public road or street must
secure a right of way to a public road or street and such right of way
must be developed and maintained according to the requirement of the
government and authorities concerned.
Sec. 30. Organization of
Homeowners Association. - The owner or
developer of a subdivision project or condominium project shall
initiate the organization of a homeowners association among the buyers
and residents of the projects for the purpose of promoting and
protecting their mutual interest and assist in their community
development.
Sec. 31. Donations of roads
and open spaces to local government. -
The registered owner or developer of the subdivision or condominium
project, upon completion of the development of said project may, at his
option, convey by way of donation the roads and open spaces found
within the project to the city or municipality wherein the project is
located. Upon acceptance of the donation by the city or municipality
concerned, no portion of the area donated shall thereafter be converted
to any other purpose or purposes unless after hearing, the proposed
conversion is approved by the Authority.
chan robles virtual law library
Sec. 32. Phases of
Subdivision. - For purposes of complying with
the provisions of this Decree, the owner or developer may divide the
development and sale of the subdivision into phases, each phase to
cover not less than ten hectares. The requirement imposed by this
Decree on the subdivision as a whole shall be deemed imposed on each
phase.
Sec. 33. Nullity of waivers. -
Any condition, stipulation, or
provision in contract of sale whereby any person waives compliance with
any provision of this Decree or of any rule or regulation issued
thereunder shall be void.
Sec. 34. Visitorial powers. -
This Authority, through its duly
authorized representative may, at any time, make an examination into
the business affairs, administration, and condition of any person,
corporation, partnership, cooperative, or association engaged in the
business of selling subdivision lots and condominium units. For this
purpose, the official authorized so to do shall have the authority to
examine under oath the directors, officers, stockholders or members of
any corporation, partnership, association, cooperative or other persons
associated or connected with the business and to issue subpoena or
subpoena duces tecum in relation to any investigation that may arise
therefrom.
The Authority may also
authorize the Provincial, City or
Municipal Engineer, as the case may be, to conduct an ocular inspection
of the project to determine whether the development of said project
conforms to the standards and specifications prescribed by the
government.
The books, papers, letters,
and other documents belonging to the
person or entities herein mentioned shall be open to inspection by the
Authority or its duly authorized representative.
Sec. 35. Take-over
Development. - The Authority, may take over or
cause the development and completion of the subdivision or condominium
project at the expenses of the owner or developer, jointly and
severally, in cases where the owner or developer has refused or failed
to develop or complete the development of the project as provided for
in this Decree.
The Authority may, after such take-over, demand, collect and
receive from the buyers the installment payments due on the lots, which
shall be utilized for the development of the subdivision.
Sec. 36. Rules and
Regulations. - The Authority shall issue the
necessary standards, rules and regulations for the effective
implementation of the provisions of this Decree. Such standards, rules
and regulations shall take effect immediately after their publication
three times a week for two consecutive weeks in any newspaper of
general circulation.
Sec. 37. Deputization of law
enforcement agencies. - The Authority
may deputize the Philippine Constabulary or any law enforcement agency
in the execution of its final orders, rulings or decisions.
Sec. 38. Administrative Fines.
- The Authority may prescribe and
impose fines not exceeding ten thousand pesos for violations of the
provisions of this Decree or of any rule or regulation thereunder.
Fines shall be payable to the Authority and enforceable through writs
of execution in accordance with the provisions of the Rules of Court.
Sec. 39. Penalties. - Any
person who shall violate any of the
provisions of this Decree and/or any rule or regulation that may be
issued pursuant to this Decree shall, upon conviction, be punished by a
fine of not more than twenty thousand (P20,000.00) pesos and/or
imprisonment of not more than ten years: Provided, That in the case of
corporations, partnership, cooperatives, or associations, the
President, Manager or Administrator or the person who has charge of the
administration of the business shall be criminally responsible for any
violation of this Decree and/or the rules and regulations promulgated
pursuant thereto.
Sec. 40. Liability of
controlling persons. - Every person who
directly or indirectly controls any person liable under any provision
of this Decree or of any rule or regulation issued thereunder shall be
liable jointly and severally with and to the same extent as such
controlled person unless the controlling person acted in good faith and
did not directly or indirectly induce the act or acts constituting the
violation or cause of action.
Sec. 41. Other remedies. - The
rights and remedies provided in
this Decree shall be in addition to any and all other rights and
remedies that may be available under existing laws.
chan robles virtual law library
Sec. 42. Repealing clause. -
All laws, executive orders, rules and
regulations or part thereof inconsistent with the provisions of this
Decree are hereby repealed or modified accordingly.
Sec. 43. Effectivity. - This
Decree shall take effect upon its approval.
Done in the City of Manila, this 12th day of July, in
the year of Our Lord, nineteen hundred and seventy-six.
Approved:chanroblesvirtuallawlibrary
July
12, 1976
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