subdivision and condominium buyers protective decree

with:
Leave a comment
Facebooktwitterredditpinterestlinkedinmail

 

Presidential Decree 957: Know Your Rights as a Property Buyer | Lamudi

This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS’ PROTECTIVE DECREE.
Presidential Decree No. 957

(PD 957), or the Subdivision and Condominium Buyers’ Protective Decree, is a 1976 Philippine law enacted to protect buyers from fraudulent, unscrupulous developers and sellers. It regulates the sale of, and requires licenses for, subdivision projects and condominiums, ensuring developers meet obligations regarding, for instance, infrastructure, amenities, and timely delivery of clean titles. 

Key Aspects of PD 957
    • Purpose: To protect buyers from fraudulent practices, such as selling mortgaged, incomplete, or misrepresented projects.
    • License to Sell: Developers must secure a “License to Sell” from the Department of Human Settlements and Urban Development (DHSUD, formerly NHA) before selling any lot or unit
      .
  • Performance Bond: A bond is required to guarantee completion of promised infrastructure like roads, drainage, water systems, and amenities.
  • Delivery of Title: Developers must deliver the title of the lot or unit to the buyer upon full payment. If a property is mortgaged, it must be cleared within 6 months.
  • Open Space Requirement: Developers must reserve 30% of the gross area for open spaces (parks, playgrounds).
  • Penalties: The law provides for penalties, including fines or suspension/revocation of the license to sell for non-compliance.