FEB.

9, 2014

NR # 3372

House approves stiffer penalties for unscrupulous subdivision and condominium developers
The House of Representatives has approved on second reading a measure amending Presidential Decree 957 or the Subdivision and Condominium Bu ers! Protective Decree of "97#$ Rep$ Susan %ap &'nd District( Tarlac) said House Bill *95 should increase the penalties provided under PD957 to serve as a deterrent to the habitual and deliberate violation of unscrupulous developers$ +Due to obsolete penalties for violations of PD957 or the Subdivision and Condominium Bu er!s Protective Degree of "97#( man land and condominium developers contravene the decree ,no-ing full -ell that pa ment for the defiance of the la- is so small(. %ap( principal author of the bill( said$ House Committee on Housing and /rban Development Chairman Rep$ 0lfredo Benite1 &*rd District( 2egros 3ccidental) and co4author of the bill said the enactment into la- of the measure -ould ensure further protection to the bu ers of subdivision lots and condominium units$ +0 certificate of registration does not vest the o-ner or dealer of a pro5ect the authorit to sell -ithout the necessar license to sell(. Benite1 said$ The measure increases the administrative fine to P56(666 for each violation of an of the provisions of the decree or of an rule or regulation( -hich shall be pa able to the board$ 7ailure to complete the development of the pro5ect( failure to deliver the title( failure to refund the purchase price( and failure to follo- construction specifications or poor -or,manship resulting to sub4standard units or to construction defects shall be penali1ed$ 8iolators face a fine of P566(666 and 5ail term of four ears for the first offense( P756(666 and 7 ears imprisonment for the second offense and P"milliion and "6 ear imprisonment and revocation of business permit and licenses for the third offense$ 0n additional fine of P566(666 shall be imposed for ever real estate or condominium unit sold b reason of advertisement in violation of the decree$ The measure to be ,no-n as The Subdivision and Condominium Bu ers! protective

Decree 0mendment of '6"* mandates the registration in the 3ffice of the Register of Deeds of the province or cit -here the propert is situated b the developer and seller at his e9pense of all deeds of sale of subdivision lots and condominium units -hose purchase price is alread paid in full$ :n case of an installment scheme( the developer or the seller shall also register the contract to sell( but the seller and the bu er -ould share the registration e9penses proportionatel $ The measure allo-s the registration of a contract to sell to be cancelled b the proper registration of deeds( -ithout the need of a court order( upon e9ecution b the developer of an affidavit that the cancellation or rescission -as due to default on the part of the bu er$ The bill mandates the donation of open spaces reserved for schools( places of -orship( hospitals( health centers( and baranga centers to the local government b the o-ner or developer$ The co4authors of the bill are Reps$ together -ith co4author Reps$ Christopher Co and Rodel Batocabe &0,o Bicol Part ;ist)( <agtanggol =unigundo : &' nd District( 8alen1uela Cit )( >onathan dela Cru1 &Part list( 0B0?0D0)( ;ani <ercado4Revilla &' nd District( Cavite)( =ar 0le5ano &Part list( <0=D0;3)( and 7ernando Hicap &Part list( 020?P0@:S)$ &*6) jc