THE SUBDIVISION AND CONDOMINIUM BUYERS’ PROTECTIVE DECREE


MALACAÑANG
M a n i l a
PRESIDENTIAL DECREE No. 957 July 12, 1976
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 I
TITLE AND DEFINITIONS


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. “Person” shall mean a natural or a juridical person. A juridical person
refers to a business firm whether a corporation, partnership, cooperative or
associations or a single proprietorship.


(b) Sale or sell. “Sale” or “sell” shall include every disposition, or attempt to
dispose, for a valuable consideration, of a subdivision lot, including the building
and other improvements thereof, if any, in a subdivision project or a
condominium unit in a condominium project. “Sale” and “sell” shall also include a
contract to sell, a contract of purchase and sale, an exchange, an attempt to sell, an
option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or by
an agent, or by a circular, letter, advertisement or otherwise.


A privilege given to a member of a cooperative, corporation, partnership, or any
association and/or the issuance of a certificate or receipt evidencing or giving the
right of participation in, or right to, any land in consideration of payment of the
membership fee or dues, shall be deemed a sale within the meaning of this
definition.


(c) Buy and purchase. The “buy” and “purchase” shall include any contract to buy,
purchase, or otherwise acquire for a valuable consideration a subdivision lot,
including the building and other improvements, if any, in a subdivision project or
a condominium unit in a condominium project.


(d) Subdivision project. “Subdivision project” shall mean a tract or a parcel of
land registered under Act No. 496 which is partitioned primarily for residential
purposes into individual lots with or without improvements thereon, and offered
to the public for sale, in cash or in installment terms. It shall include all
residential, commercial, industrial and recreational areas as well as open spaces
and other community and public areas in the project.


(e) Subdivision lot. “Subdivision lot” shall mean any of the lots, whether
residential, commercial, industrial, or recreational, in a subdivision project.


(f) Complex subdivision plan. “Complex subdivision plan” shall mean a
subdivision plan of a registered land wherein a street, passageway or open space
is delineated on the plan.


(g) Condominium project. “Condominium project” shall mean the entire parcel of
real property divided or to be divided primarily for residential purposes into
condominium units, including all structures thereon.


(h) Condominium unit. “Condominium unit” shall mean a part of the
condominium project intended for any type of independent use or ownership,
including one or more rooms or spaces located in one or more floors (or part of
parts of floors) in a building or buildings and such accessories as may be
appended thereto.


(i) Owner. “Owner” shall refer to the registered owner of the land subject of a
subdivision or a condominium project.


(j) Developer. “Developer” shall mean the person who develops or improves the
subdivision project or condominium project for and in behalf of the owner
thereof.


(k) Dealer. “Dealer” shall mean any person directly engaged as principal in the
business of buying, selling or exchanging real estate whether on a full-time or
part-time basis.


(l) Broker. “Broker” shall mean any person who, for commission or other
compensation, undertakes to sell or negotiate the sale of a real estate belonging to
another.


(m) Salesman. “Salesman” shall refer to the person regularly employed by a
broker to perform, for and in his behalf, any or all functions of a real estate
broker.


(n) Authority. “Authority” shall mean the National Housing Authority.


Title II
REGISTRATION AND LICENSE TO SELL


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 paidup.


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.


Title III
DEALERS, BROKERS AND SALESMEN


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.


Title IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE


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 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.


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. 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.


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.


The Lawphil Project – Arellano Law Foundation

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