PRESIDENTIAL DECREE 957

1. THE SUBDIVISION AND CONDOMINIUM
BUYERS‘ PROTECTIVE DECREE

2. 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

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

4. Subdivision project
a tract or a parcel of land:
• registered under Act No. 496
• partitioned into individual lots (residential purposes)
• offered to the public for sale (cash or in installment)
Condominium project
real property divided or to be divided for residential
purposes into condominium purposes
SUBDIVISION AND
CONDOMINIUM PROJECT
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

5. INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

6. HOUSING AND LAND USE
REGULATORY BOARD
REGULATE
real estate trade and business (Sec 3)
EXCLUSIVE JURISDICTION
(a) Unsound real estate business practices;
(b) Claims involving refund and any other claims filed by
subdivision lot or condominium unit buyer against the project
owner, developer, dealer, broker or salesman; and
(c) Cases involving specific performance of contractual and
statutory obligations filed by buyers of subdivision lot or
condominium unit against the owner, developer, dealer, broker or
salesman.
What is covered by EXCLUSIVE JURISDICTION?
In addition to powers provided for in PD No. 957, HLURB shall have
exclusive jurisdiction to hear and decide cases of the ff. nature:
(Section 1 of PD 1344)
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

7. NULLITY OF WAIVERS
Any stipulation waiving the compliance with this
Decree is void
REPEALING CLAUSE
All laws, executive orders, rules and regulations or
part thereof inconsistent with the provisions of this
Decree are repealed or modified accordingly.
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

8. Delivery
Outstanding
Mortgage
Fee
ISSUANCE OF TITLE
Upon full payment of the lot/unit,
owner/developer shall deliver the
title of the lot/unit to they buyer
Owner/developer shall redeem
the mortgage within 6 months
from issuance of title to the buyer
No fee except fees required for
the registration of the deed of sale
in the Registry of Deeds
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

9. ISSUANCE OF TITLE
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
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EXPENSES
PUBLIC CONCERNS
• NHA extended to GOAL a loan for the construction of Gemini
I Condominium
• A "Contract Agreement" was entered into between GOAL
and Matson International Corporation for the construction of
the condominium within one (1) year
• The Contractor abandoned the project with only 60% of it
finished
• GOAL offered the condominium units for sale with private
respondents among its buyers
• To remedy the situation brought about by the abandonment
of the project, GOAL subsequently pursued the construction
of the fifth floor with NHA granting additional funding on the
condition that it would hold on to the condominium
certificates of title of private respondents as collateral
Case Facts
Goal Inc. vs Court of Appeals Office Of The President
Legal Affairs, Housing And Land Use Regulatory
Board, Rizalino Simbillo, et al

10. ISSUANCE OF TITLE
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS
Upon full payment of a unit, seller loses all its right and
interests to the unit in favor of the buyer. Consequently,
it has no right to use the certificate of title of buyer as
collateral for a new loan. The title of buyer must be
released to him as provided by law.
Decision
Goal Inc. vs Court of Appeals Office Of The President
Legal Affairs, Housing And Land Use Regulatory
Board, Rizalino Simbillo, et al

11. MORTGAGES
If such lot or unit has a buyer
• He will be notified before the release of the loan
• He may pay installments directly to the mortgagee
and the mortgagee will apply the payments to the
indebtedness connected with the lot or unit
Must first be approved by the HLURB in writing
To be approved:
proceeds of the loan must be used for development of
condominium/subdivision project
Loan value of each lot or unit covered
by the mortgage shall be determined
Rationale
for the buyer to obtain title promptly after full payment of
the lot or unit.
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

12. MORTGAGES
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS
Relevant Facts
Delta Development and Management Services, Inc.
(Delta) obtained a loan from the Luzon Development
Bank (LDB) for the express purpose of developing a
subdivision, executing in favor of the bank a real estate
mortgage (REM) on several of their properties.
Delta obtained a Certificate of Registration and a License
to Sell from the HLURB after the loan transaction. In
court, Delta argued that clearance was not required for
mortgages that were constituted on a subdivision project
prior to registration. According to DELTA, it did not violate
the terms of its license because it did not obtain a new
mortgage over the subdivision project.
Luzon Development Bank, Petitioner, v. Angeles
Catherine Enriquez, Respondent, G.R. No. 168646
Delta Development And Management Services, Inc.,
Petitioner, v. Angeles Catherine Enriquez And Luzon
Development Bank, Respondents, G.R. No. 168666

13. MORTGAGES
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS
Issue
Was the mortgage over the property valid?
Answer
There was no HLURB approval, thus rendering the
mortgage void. It was held that all developers should
obtain a clearance for mortgage from the HLURB,
regardless of the date when the mortgage was secured,
because the law does not distinguish. Having violated this
legal requirement, Delta was held liable to pay the
administrative fine. Also, due to the nullity of the
mortgage, the bank’s loan of P8 million to Delta has
effectively become unsecured.
Luzon Development Bank, Petitioner, v. Angeles
Catherine Enriquez, Respondent, G.R. No. 168646
Delta Development And Management Services, Inc.,
Petitioner, v. Angeles Catherine Enriquez And Luzon
Development Bank, Respondents, G.R. No. 168666

14. INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

15. REGISTRATION OF PROJECTS
For owners of a parcel of land who wishes to
convert the same into a subdivision project
Submit subdivision plan or condominium
plan
After approval, submit subdivision plan to
Director of Lands and Condominium Plan
to Register of Deeds
1
2
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

16. LICENSE TO SELL
Sellers must obtain a license to sell within 2
weeks after registering the condo/subd unit
• Must be of good repute
• financially stable
• registration must not be fraudulent
PERFORMANCE BOND
adequate performance bond
guaranteeing development,
construction and maintenance of project
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

17. EXEMPT TRANSACTIONS
EXEMPTIONS
from requirement of a license to sell
a) Sale resulting from the partition of land
among co-owners and co-heirs.
c) Sale by or for a mortgagee in the ordinary
course of business when necessary to liquidate
debt.
b) Sale or transfer by the original purchaser and
any subsequent sale.
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

18. REGISTRATION OF
DEALERS, BROKERS & SALESMEN
Requirements for registration
a.) Good reputation
b.) Complied with all the applicable rules including
any prescribed fees
c.) File a bond or security
Expiration and Renewal of Registration
a.) Expiration is on December 31 of each year
b.) Renewal shall be given upon written application
(must be made within 30-60 before the first day of
the subsequent year and any prescribed fees must
be paid)
c.) If filed beyond the prescribed period - treated as
original applications.
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

19. INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

20. PHASES OF SUBDIVISION
Owner/developer may divide the
development and sale of subdivision into
phases not less than 10 hectares
Requirements in this Decree
shall be imposed to
on each phase
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

21. ADVERTISEMENTS
Owner/Developer
answerable to developments represented or promised
• May be in any form
• Must reflect real facts
• Must not be presented so as to mislead or deceive
the public
Advertisements
warranty enforceable solidarily
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

22. TIME OF COMPLETION
For developments indicated in subdivision
or condominium plans and advertised,
time of completion is:
• 1 year from date of issuance of license for the
project
• a period of time fixed by the HLURB
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

23. ALTERATION OF PLANS
• Permitted by the HLURB and
• Consented in writing by the homeowners’
association or in the absence thereof, the majority
of the lot buyers in the subdivision
Change or alterations
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

24. TAKE-OVER DEVELOPMENT
If the owner/developer has refused/failed
to develop or complete the development of the project
Authority may take over or cause
such development and completion
The Authority may
demand, collect and receive
from the buyers the installment payments due,
which shall be used for the development
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS

25. 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

26. NON-FORFEITURE OF PAYMENTS
WHEN
Failure of owner to develop subdivision or condominium
project according to plan or within time limit.
REMEDY
Buyer may be reimbursed with total amount paid
(including amortization interest) excluding delinquency
interests, plus legal interest
FAILURE TO PAY INSTALLMENTS
For any other case of buyer’s failure to pay
•rights covered by RA 6552 (Maceda Law)
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

27. RA 6552 (MACEDA LAW)
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
RIGHTS OF THE BUYER
1. Grace period (payment of unpaid
installments without additional interest)
– Less than two years of installments: 60 days
grace period
– At least two years: one month grace period
per year of installment payments
*grace period may only be exercised once every
5 years

28. RA 6552 (MACEDA LAW)
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
RIGHTS OF THE BUYER
2. Refund of the Cash Surrender Value
(CSV) of payments
– Less than five years of installments: CSV =
50% of payments
– Every year of installment payments in excess
of 5 years: 5% additional CSV
*CSV not to exceed 90% of total payments.

29. RA 6552 (MACEDA LAW)
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
•If buyer fails to pay within grace period  seller
may cancel the contract (contract to sell) or
rescind the contract (contract of sale)
•Actual cancellation is after 30 days from the
buyer’s time of receipt of notice of cancellation or
demand for rescission plus payment of CSV
•Without return of CSV, rescission is incomplete
and buyer may still pay unpaid installments

30. REALTY TAX
Real estate
tax and
assessment
on a lot/unit
Title has not
passed to the
buyer
Buyer has taken
possession of and
occupied the lot/unit
Paid by owner/
developer with-
out recourse to
the buyer
Buyer is liable to the
owner/developer for
such tax and
assessment effective
the year following
such taking of
possession and
occupancy
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

31. PROHIBITED
• Fee for an alleged community benefit charged by
the owner/developer
AUTHORIZED COLLECTOR
• Properly organized homeowners association
REQUIREMENTS
• Fees to finance services for common comfort,
security and sanitation
• consent of a majority of the lot/unit buyers residing
in the subdivision/condo
OTHER CHARGES
INTRODUCTION
REGULATING AGENCY
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LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
PAYMENTS, REALTY
TAXES AND OTHER
EXPENSES
PUBLIC CONCERNS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

32. 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

33. ACCESS TO PUBLIC
OFFICES IN SUBDIVISIONS
No owner/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
RIGHT OF WAY TO PUBLIC ROAD
The owner/developer must secure
a right of way to a public road or street
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
PAYMENTS, REALTY
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EXPENSES
PUBLIC CONCERNS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

34. If there is a street, passageway or required open
space delineated on a complex subdivision plan,
the Register of Deeds shall annotate on the new
certificate of title covering the street, passageway
or open space a memorandum that:
PUBLIC AND OPEN SPACES
General Rule
No portion of such shall be closed or otherwise
disposed of by the registered owner
Exception
• Obtaining the requisite approval as provided under
Section 22, or
• Donation in favor of a city or municipality
INTRODUCTION
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PUBLIC CONCERNS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

35. DONATIONS OF ROADS &
OPEN SPACES TO LOCAL GOV’T
Owner/developer of the subdivision or condominium
may donate roads and open spaces to the city or
municipality where the project is located
After the donation
The area donated shall not be converted to other
purposes unless the Authority approves so after a
hearing
INTRODUCTION
REGULATING AGENCY
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LICENSE TO SELL
COMPLETION OF
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ALTERATIONS
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

36. Sec. 2. Amendment of Section 31 of this Decree
Owner/developer is required to donate adequate
roads, alleys and sidewalks to the city/municipality
and the local gov’t must accept it.
Owner/developer may also donate it to
Homeowners Association of the project if
approved by the city/municipality.
If 1ha or more, 30% of gross area shall be
reserved for open space.
AMENDMENTS BY PD 1216
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

37. REGISTERS OF SUBDIVISION
LOTS & CONDOMINIUM UNITS
• Maintained by the Authority
• Open to public inspection subject to such
reasonable rules by the Authority
Record of subdivision lots
and condominium units
INTRODUCTION
REGULATING AGENCY
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

38. 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

39. VIOLATIONS OF PD957
Sanctions for Violating PD 957
Either:
Jurisdiction
Either:
1.) HLURB – for Administrative aspect
2.) Fiscal’s office – for Criminal aspect
3.) Civil Courts – if there is a finding of probable cause for
criminal action
Where the violator is a
partnership or corporation?
The liability extends to controlling persons.
To carry administrative and criminal penalties
1 Administrative Sanction - not exceeding Ten Thousand
Pesos
Penal Sanction - not exceeding Twenty Thousand Pesos
and/or imprisonment of not more than 10 years
2
INTRODUCTION
REGULATING AGENCY
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COMPLETION OF
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

40. OTHER REMEDIES
Rights and remedies provided
shall be in addition to any and all other rights and
remedies that may be available under existing laws
INTRODUCTION
REGULATING AGENCY
REGISTRATION AND
LICENSE TO SELL
COMPLETION OF
PROJECTS AND
ALTERATIONS
PAYMENTS, REALTY
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EXPENSES
PUBLIC CONCERNS
VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

41. SUSPENSION OF LICENSE TO SELL
Grounds for immediate
suspension of license to sell
a.) Verified complaint subject to further
investigation and hearing
b.) Fraudulent information in the registration
INTRODUCTION
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

42. REVOCATION OF REGISTRATION
CERTIFICATE & LICENSE TO SELL
• Insolvent
• Violated any provision of this Decree or any applicable rule
• Engaged in fraud
• Misrepresented in any literature abut the project which is given
to prospective buyers
• Bad business representation
• Does not conduct business in accordance with the law
For partnership/corporation/unincorporated association
Any member/officer/director is guilty of any act of omission which
would cause revocation of a dealer/broker/salesman (Sec. 11)
EVIDENCE that owner or dealer is/has
How to start?
Trigger Points
Issuing an order
• Motu proprio, or
• Verified complaint filed by a buyer
INTRODUCTION
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LICENSE TO SELL
COMPLETION OF
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

43. REVOCATION OF REGISTRATION
OF DEALERS, BROKERS & SALESMEN
a.) Violation of any provision
b.) Material misstatement in application
c.) Fraudulent act
d.) Demonstrated unworthiness to transact the
business
e.) For salesmen, give Notice to broker or dealer
Pending hearing, CAN order suspension
of the registration - indicate cause
Grounds for revocation
INTRODUCTION
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VIOLATIONS OF PD
NO. 957
PROCEDURES FOR
REVOCATION

44. 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

45. HEARING
Either:
• copy of the complaint against him, or
• notified in writing
Notice
• Before the officer/s designated by the Authority,
on the date and place in the notice
• Non-litigious, summary in nature
Nature of proceeding
Venue
• Rules of Court shall not apply, except:
o By analogy or in a suppletory character, and
o Whenever practicable and convenient
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

46. DECISION
The Decision may order the:
1. Revocation of the registration of the
subdivision or condominium project
2. Suspension, cancellation, or revocation of the
license to sell, and/or
3. Forfeiture, in whole or in part, of the
performance bond mentioned in Section 6
Immediately executory and final after 15 days
from the date of receipt of the Decision
Within 30 days
from the time submitted for decision
forfeiture
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

47. CEASE AND DESIST ORDER
Provided
There is due notice and hearing, as provided in
Section 13
To whom
any person who appears to be engaged or about to
engage in any act or practice which constitutes or will
constitute a violation of the provisions of this Decree
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

48. ORGANIZATION
OF HOMEOWNERS ASSOCIATION
owner/developer
shall initiate the organization of a
homeowner’s association among the
buyers and residents
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

49. PRESIDENTIAL DECREE NO. 957
The Subdivision and Condominium Buyers‘ Protective Decree