Regulating the sale of subdivision lots and condominiums, providing penalties for violations thereof
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:
TITLE AND DEFINITIONS
Sec. 1. Title - This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS'
Sec. 2. Definition of Terms - When used in this Decree, the following terms shall,
unless the context otherwise indicates, have the following respective meanings:
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
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.
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
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
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:
a) Name of the owner;
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
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
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.
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:
a) Sale of a subdivision lot resulting from the partition of land among co-owners and
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.
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:
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.
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 there under, revoked by the Authority if, after reasonable
notice and hearing, it shall determine that such applicant or registrant:
1) Has violated any provision of this Decree or any rule or regulation made hereunder;
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.
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:
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. a
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
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
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
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 there from.
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
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.
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.