PRESIDENTIAL DECREE No. 957
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:
Section 1
Title
This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS'
PROTECTIVE DECREE.
Section 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 – 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" – 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) 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 – 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 – shall mean any of the
lots, whether residential, commercial, industrial, or recreational, in a
subdivision project.
(f) 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 – 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 – 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 – shall refer to the registered owner of the
land subject of a subdivision or a condominium project.
(j) 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 – 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 – 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 – 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 – shall mean the National
Housing Authority.
Section 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.
Section 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 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:
(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.
Section 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.
Section 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.
Section 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 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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:
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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
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.
Section 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;
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 24
Failure to pay instalments
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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 37
Deputation 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
Section 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.
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