(b) Sale or sell.

"Sale" or "sell" shall include every disposition, or attempt to

PRESIDENTIAL DECREE No. 957 July 12, 1976
dispose, for a valuable consideration, of a subdivision lot, including the building
REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, and other improvements thereof, if any, in a subdivision project or a
PROVIDING PENALTIES FOR VIOLATIONS THEREOF 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,
WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent an option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or
human settlement and to provide them with ample opportunities for improving their quality by an agent, or by a circular, letter, advertisement or otherwise.
of life;
A privilege given to a member of a cooperative, corporation, partnership, or any
WHEREAS, numerous reports reveal that many real estate subdivision owners, association and/or the issuance of a certificate or receipt evidencing or giving the
developers, operators, and/or sellers have reneged on their representations and right of participation in, or right to, any land in consideration of payment of the
obligations to provide and maintain properly subdivision roads, drainage, sewerage, membership fee or dues, shall be deemed a sale within the meaning of this
water systems, lighting systems, and other similar basic requirements, thus endangering definition.
the health and safety of home and lot buyers;
(c) Buy and purchase. The "buy" and "purchase" shall include any contract to
WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent buy, purchase, or otherwise acquire for a valuable consideration a subdivision
manipulations perpetrated by unscrupulous subdivision and condominium sellers and lot, including the building and other improvements, if any, in a subdivision project
operators, such as failure to deliver titles to the buyers or titles free from liens and or a condominium unit in a condominium project.
encumbrances, and to pay real estate taxes, and fraudulent sales of the same
subdivision lots to different innocent purchasers for value; (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
WHEREAS, these acts not only undermine the land and housing program of the purposes into individual lots with or without improvements thereon, and offered to
government but also defeat the objectives of the New Society, particularly the promotion the public for sale, in cash or in installment terms. It shall include all residential,
of peace and order and the enhancement of the economic, social and moral condition of commercial, industrial and recreational areas as well as open spaces and other
the Filipino people; community and public areas in the project.

WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision (e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether
and condominium businesses be closely supervised and regulated, and that penalties be residential, commercial, industrial, or recreational, in a subdivision project.
imposed on fraudulent practices and manipulations committed in connection therewith.
(f) Complex subdivision plan. "Complex subdivision plan" shall mean a
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue subdivision plan of a registered land wherein a street, passageway or open
of the powers vested in me by the Constitution, do hereby decree and order: space is delineated on the plan.

Title I (g) Condominium project. "Condominium project" shall mean the entire parcel of
TITLE AND DEFINITIONS real property divided or to be divided primarily for residential purposes into
condominium units, including all structures thereon.
Section 1. Title. This Decree shall be known as THE SUBDIVISION AND
CONDOMINIUM BUYERS' PROTECTIVE DECREE. (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
Section 2. Definition of Terms When used in this Decree, the following terms shall, more rooms or spaces located in one or more floors (or part of parts of floors) in
unless the context otherwise indicates, have the following respective meanings: a building or buildings and such accessories as may be appended thereto.

(a) Person. "Person" shall mean a natural or a juridical person. A juridical person (i) Owner. "Owner" shall refer to the registered owner of the land subject of a
refers to a business firm whether a corporation, partnership, cooperative or subdivision or a condominium project.
associations or a single proprietorship.
PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE
 (j) Developer. "Developer" shall mean the person who develops or improves the Authority by filing therewith a sworn registration statement containing the following
subdivision project or condominium project for and in behalf of the owner thereof. information:

(k) Dealer. "Dealer" shall mean any person directly engaged as principal in the (a) Name of the owner;
business of buying, selling or exchanging real estate whether on a full-time or
part-time basis. (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
(l) Broker. "Broker" shall mean any person who, for commission or other Philippines is authorized to receive notice;
compensation, undertakes to sell or negotiate the sale of a real estate belonging
to another. (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
(m) Salesman. "Salesman" shall refer to the person regularly employed by a partners, if it be a partnership;
broker to perform, for and in his behalf, any or all functions of a real estate
broker. (d) The general character of the business actually transacted or to be transacted
by the owner; and
(n) Authority. "Authority" shall mean the National Housing Authority.
(e) A statement of the capitalization of the owner, including the authorized and
Title II outstanding amounts of its capital stock and the proportion thereof which is paid-
REGISTRATION AND LICENSE TO SELL up.

Section 3. National Housing Authority The National Housing Authority shall have The following documents shall be attached to the registration statement:
exclusive jurisdiction to regulate the real estate trade and business in accordance with
the provisions of this Decree. (a) A copy of the subdivision plan or condominium plan as approved in
accordance with the first and second paragraphs of this section.
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 (b) A copy of any circular, prospectus, brochure, advertisement, letter, or
Authority which shall act upon and approve the same, upon a finding that the plan communication to be used for the public offering of the subdivision lots or
complies with the Subdivision Standards' and Regulations enforceable at the time the condominium units;
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 (c) In case of a business firm, a balance sheet showing the amount and general
the plan with respect to the building or buildings included in the condominium project in character of its assets and liabilities and a copy of its articles of incorporation or
accordance with the National Building Code (R.A. No. 6541). articles of partnership or association, as the case may be, with all the
amendments thereof and existing by-laws or instruments corresponding thereto.
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 (d) A title to the property which is free from all liens and encumbrances:
Registration Act (Act No. 496, as amended by R.A. No. 440): Provided, that it case of Provided, however, that in case any subdivision lot or condominium unit is
complex subdivision plans, court approval shall no longer be required. The condominium mortgaged, it is sufficient if the instrument of mortgage contains a stipulation that
plan as likewise so approved, shall be submitted to the Register of Deeds of the province the mortgagee shall release the mortgage on any subdivision lot or condominium
or city in which the property lies and the same shall be acted upon subject to the unit as soon as the full purchase price for the same is paid by the buyer.
conditions and in accordance with the procedure prescribed in Section 4 of the
Condominium Act (R.A. No. 4726). The person filing the registration statement shall pay the registration fees prescribed
therefor by the Authority.
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 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

PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE

newspapers general circulation, one published in English and another in Pilipino, once a (c) Sale of a subdivision lot or a condominium unit by or for the account of a
week for two consecutive weeks, reciting that a registration statement for the sale of mortgagee in the ordinary course of business when necessary to liquidate a bona
subdivision lots or condominium units has been filed in the National Housing Authority; fide debt.
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 Section 8. Suspension of license to sell. Upon verified complaint by a buyer of a
Authority may impose; and that copies thereof shall be furnished to any party upon subdivision lot or a condominium unit in any interested party, the Authority may, in its
payment of the proper fees. 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 subdivision project of the condominium project shall be deemed registered upon
completion of the above publication requirement. The fact of such registration shall be The Authority may motu proprio suspend the license to sell if, in its opinion, any
evidenced by a registration certificate to be issued to the applicant-owner or dealer. 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
Section 5. License to sell. Such owner or dealer to whom has been issued a registration subdivision or condominium project may work or tend to work a fraud upon prospective
certificate shall not, however, be authorized to sell any subdivision lot or condominium buyers.
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 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
The Authority, upon proper application therefor, shall issue to such owner or dealer of a corrected or supplemented or that the sale to the public of the subdivision or
registered project a license to sell the project if, after an examination of the registration condominium project will neither be fraudulent not result in fraud. It shall also be lifted
statement filed by said owner or dealer and all the pertinent documents attached thereto, upon dismissal of the complaint for lack of legal basis.
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 Until the final entry of an order of suspension, the suspension of the right to sell the
public would not be fraudulent. 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 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 Section 9. Revocation of registration certificate and license to sell. The Authority may,
dealer shall have filed an adequate performance bond approved by said Authority to motu proprio or upon verified complaint filed by a buyer of a subdivision lot or
guarantee the construction and maintenance of the roads, gutters, drainage, sewerage, condominium unit, revoke the registration of any subdivision project or condominium
water system, lighting systems, and full development of the subdivision project or the project and the license to sell any subdivision lot or condominium unit in said project by
condominium project and the compliance by the owner or dealer with the applicable laws issuing an order to this effect, with his findings in respect thereto, if upon examination into
and rules and regulations. 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:
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 (a) Is insolvent; or
undertaking in case of forfeiture as provided in this Decree.
(b) has violated any of the provisions of this Decree or any applicable rule or
Section 7. Exempt transactions. A license to sell and performance bond shall not be regulation of the Authority, or any undertaking of his/its performance bond; or
required in any of the following transactions:
(c) Has been or is engaged or is about to engage in fraudulent transactions; or
(a) Sale of a subdivision lot resulting from the partition of land among co-owners
and co-heirs. (d) Has made any misrepresentation in any prospectus, brochure, circular or
other literature about the subdivision project or condominium project that has
(b) Sale or transfer of a subdivision lot by the original purchaser thereof and any been distributed to prospective buyers; or
subsequent sale of the same lot.
(e) Is of bad business repute; or

PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE

 (f) Does not conduct his business in accordance with law or sound business revoked by the Authority if, after reasonable notice and hearing, it shall determine that
principles. such applicant or registrant:

Where the owner or dealer is a partnership or corporation or an unincorporated 1. Has violated any provision of this Decree or any rule or regulation made
association, it shall be sufficient cause for cancellation of its registration certificate and its hereunder; or
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 2. Has made a material false statement in his application for registration; or
for refusing or revoking the registration of an individual dealer, broker or salesman as
provided in Section 11 hereof. 3. Has been guilty of a fraudulent act in connection with any sale of a subdivision
lot or condominium unit; or
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 4. Has demonstrated his unworthiness to transact the business of dealer, broker,
orders of the Authority affecting the condition or status thereof. The registers of or salesman, as the case may be.
subdivision lots and condominium units shall be open to public inspection subject to such
reasonable rules as the Authority may prescribe. In case of charges against a salesman, notice thereof shall also be given the broker or
dealer employing such salesman.
Title III
DEALERS, BROKERS AND SALESMEN 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
Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker the cause for the suspension.
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 The suspension or revocation of the registration of a dealer or broker shall carry with it all
this section. the suspension or revocation of the registrations of all his salesmen.

If the Authority shall find that the applicant is of good repute and has complied with the Title IV
applicable rules of the Authority, including the payment of the prescribed fee, he shall PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE
register such applicant as a dealer, broker or salesman upon filing a bond, or other
Section 13. Hearing. In the hearing for determining the existence of any ground or
security in lieu thereof, in such sum as may be fixed by the Authority conditioned upon his
grounds for the suspension and/or revocation of registration certificate and license to sell
faithful compliance with the provisions of this Decree: Provided, that the registration of a
as provided in Section 8 and 9 hereof, the following shall be complied with:
salesman shall cease upon the termination of his employment with a dealer or broker.
(a) Notice. No such hearing shall proceed unless the respondent is furnished with
Every registration under this section shall expire on the thirty-first day of December of
a copy of the complaint against him or is notified in writing of the purpose of such
each year. Renewal of registration for the succeeding year shall be granted upon written
hearing.
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 (b) Venue. The hearing may be held before the officer or officers designated by
filing further statements or information, unless specifically required by the Authority. All the Authority on the date and place specified in the notice.
applications filed beyond said period shall be treated as original applications.
(c) Nature of proceeding. The proceedings shall be non-litigious and summary in
The names and addresses of all persons registered as dealers, brokers, or salesmen nature without regard to legal technicalities obtaining in courts of law. The Rules
shall be recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority of court shall not apply in said hearing except by analogy or in a suppletory
which shall be open to public inspection. character and whenever practicable and convenient.
Section 12. Revocation of registration as dealers, brokers or salesmen. Registration (d) Power incidental to the hearing. For the purpose of the hearing or other
under the preceding section may be refused or any registration granted thereunder, proceeding under this Decree, the officer or officers designated to hear the
complaint shall have the power to administer oaths, subpoena witnesses,
PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE
 conduct ocular inspections, take depositions, and require the production of any complex subdivision plan hereafter approved and as defined in this Decree, the Register
book, paper, correspondence, memorandum, or other record which are deemed of Deeds shall annotate on the new certificate of title covering the street, passageway or
relevant or material to the inquiry. 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
Section 14. Contempt. plan shall be closed or otherwise disposed of by the registered owner without the
requisite approval as provided under Section 22 of this Decree.
(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 Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or
misbehavior in the presence of or so near the said hearing officials as to obstruct developer without prior written approval of the Authority. Such approval shall not be
or interrupt the proceedings before the same or of refusal to be sworn or to granted unless it is shown that the proceeds of the mortgage loan shall be used for the
answer as a witness or to subscribe an affidavit or deposition when lawfully development of the condominium or subdivision project and effective measures have
required to do so. The person found guilty of direct contempt under this section been provided to ensure such utilization. The loan value of each lot or unit covered by the
shall be punished by a fine not exceeding Fifty (P50.00) Pesos or imprisonment mortgage shall be determined and the buyer thereof, if any, shall be notified before the
not exceeding five (5) days, or both. 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
(b) Indirect contempt. The officer or officers designated to hear the complaint indebtedness secured by the particular lot or unit being paid for, with a view to enabling
may also adjudge any person in indirect contempt on grounds and in the manner said buyer to obtain title over the lot or unit promptly after full payment thereto;
prescribed in Rule 71 of the Revised Rules of Court.
Section 19. Advertisements. Advertisements that may be made by the owner or
Section 15. Decision. The case shall be decided within thirty (30) days from the time the developer through newspaper, radio, television, leaflets, circulars or any other form about
same is submitted for decision. The Decision may order the revocation of the registration the subdivision or the condominium or its operations or activities must reflect the real
of the subdivision or condominium project, the suspension, cancellation, or revocation of facts and must be presented in such manner that will not tend to mislead or deceive the
the license to sell and/or forfeiture, in whole or in part, of the performance bond public.
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 The owner or developer shall answerable and liable for the facilities, improvements,
of other requirements for the subdivision or condominium as stipulated in the bond, infrastructures or other forms of development represented or promised in brochures,
chargeable to the amount forfeited. Such decision shall be immediately executory and advertisements and other sales propaganda disseminated by the owner or developer or
shall become final after the lapse of 15 days from the date of receipt of the Decision. 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
Section 16. Cease and Desist Order. Whenever it shall appear to the Authority that any also be punishable in accordance with the penalties provided for in this Decree.
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 Section 20. Time of Completion. Every owner or developer shall construct and provide
thereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issue the facilities, improvements, infrastructures and other forms of development, including
a cease and desist order to enjoin such act or practices. water supply and lighting facilities, which are offered and indicated in the approved
subdivision or condominium plans, brochures, prospectus, printed matters, letters or in
Section 17. Registration. All contracts to sell, deeds of sale and other similar instruments any form of advertisement, within one year from the date of the issuance of the license
relative to the sale or conveyance of the subdivision lots and condominium units, whether for the subdivision or condominium project or such other period of time as may be fixed
or not the purchase price is paid in full, shall be registered by the seller in the Office of by the Authority.
the Register of Deeds of the province or city where the property is situated.
Section 21. Sales Prior to Decree. In cases of subdivision lots or condominium units sold
Whenever a subdivision plan duly approved in accordance with Section 4 hereof, or disposed of prior to the effectivity of this Decree, it shall be incumbent upon the owner
together with the corresponding owner's duplicate certificate of title, is presented to the or developer of the subdivision or condominium project to complete compliance with his
Register of Deeds for registration, the Register of Deeds shall register the same in or its obligations as provided in the preceding section within two years from the date of
accordance with the provisions of the Land Registration Act, as amended: Provided, this Decree unless otherwise extended by the Authority or unless an adequate
however, that it there is a street, passageway or required open space delineated on a performance bond is filed in accordance with Section 6 hereof.
PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE
Failure of the owner or developer to comply with the obligations under this and the Section 27. Other Charges. No owner or developer shall levy upon any lot or buyer a fee
preceding provisions shall constitute a violation punishable under Sections 38 and 39 of for an alleged community benefit. Fees to finance services for common comfort, security
this Decree. 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
Section 22. Alteration of Plans. No owner or developer shall change or alter the roads, subdivision or condominium project.
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 Section 28. Access to Public Offices in the Subdivisions. No owner or developer shall
advertisements, without the permission of the Authority and the written conformity or deny any person free access to any government office or public establishment located
consent of the duly organized homeowners association, or in the absence of the latter, by within the subdivision or which may be reached only by passing through the subdivision.
the majority of the lot buyers in the subdivision.
Section 29. Right of Way to Public Road. The owner or developer of a subdivision
Section 23. Non-Forfeiture of Payments. No installment payment made by a buyer in a without access to any existing public road or street must secure a right of way to a public
subdivision or condominium project for the lot or unit he contracted to buy shall be road or street and such right of way must be developed and maintained according to the
forfeited in favor of the owner or developer when the buyer, after due notice to the owner requirement of the government and authorities concerned.
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 Section 30. Organization of Homeowners Association. The owner or developer of a
within the time limit for complying with the same. Such buyer may, at his option, be subdivision project or condominium project shall initiate the organization of a
reimbursed the total amount paid including amortization interests but excluding homeowners association among the buyers and residents of the projects for the purpose
delinquency interests, with interest thereon at the legal rate. of promoting and protecting their mutual interest and assist in their community
development.
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 Section 31. Donations of roads and open spaces to local government. The registered
develop the project shall be governed by Republic Act No. 6552. 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
Where the transaction or contract was entered into prior to the effectivity of Republic Act open spaces found within the project to the city or municipality wherein the project is
No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding located. Upon acceptance of the donation by the city or municipality concerned, no
refund based on the installments paid after the effectivity of the law in the absence of any portion of the area donated shall thereafter be converted to any other purpose or
provision in the contract to the contrary. purposes unless after hearing, the proposed conversion is approved by the Authority.

Section 25. Issuance of Title. The owner or developer shall deliver the title of the lot or Section 32. Phases of Subdivision. For purposes of complying with the provisions of this
unit to the buyer upon full payment of the lot or unit. No fee, except those required for the Decree, the owner or developer may divide the development and sale of the subdivision
registration of the deed of sale in the Registry of Deeds, shall be collected for the into phases, each phase to cover not less than ten hectares. The requirement imposed
issuance of such title. In the event a mortgage over the lot or unit is outstanding at the by this Decree on the subdivision as a whole shall be deemed imposed on each phase.
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 Section 33. Nullity of waivers. Any condition, stipulation, or provision in contract of sale
order that the title over any fully paid lot or unit may be secured and delivered to the whereby any person waives compliance with any provision of this Decree or of any rule
buyer in accordance herewith. or regulation issued thereunder shall be void.

Section 26. Realty Tax. Real estate tax and assessment on a lot or unit shall de paid by Section 34. Visitorial powers. This Authority, through its duly authorized representative
the owner or developer without recourse to the buyer for as long as the title has not may, at any time, make an examination into the business affairs, administration, and
passed the buyer; Provided, however, that if the buyer has actually taken possession of condition of any person, corporation, partnership, cooperative, or association engaged in
and occupied the lot or unit, he shall be liable to the owner or developer for such tax and the business of selling subdivision lots and condominium units. For this purpose, the
assessment effective the year following such taking of possession and occupancy. 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
PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE
subpoena or subpoena duces tecum in relation to any investigation that may arise Section 40. Liability of controlling persons. Every person who directly or indirectly
therefrom. 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
The Authority may also authorize the Provincial, City or Municipal Engineer, as the case controlled person unless the controlling person acted in good faith and did not directly or
may be, to conduct an ocular inspection of the project to determine whether the indirectly induce the act or acts constituting the violation or cause of action.
development of said project conforms to the standards and specifications prescribed by
the government. 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
The books, papers, letters, and other documents belonging to the person or entities laws.
herein mentioned shall be open to inspection by the Authority or its duly authorized
representative. 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
Section 35. Take-over Development. The Authority, may take over or cause the accordingly.
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 Section 43. Effectivity. This Decree shall take effect upon its approval.
has refused or failed to develop or complete the development of the project as provided
for in this Decree. Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen
hundred and seventy-six.
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.

PD 957 SUBDIVISION AND CONDOMIINIUM BUYERS PROTECTIVE DECREE