FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
1 
SENATE 
I 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Presidential Decree No. 957 or the Subdivision and Condominium Buyers Protective Decree, 
when it was originaiiy concepruaiizea, was meanx IO prorecr subdivision ana Condominium 
buyers from fraudulent and unscrupulous subdivision and condominium sellers and operators. It 
somehow also had some positive effects on subdivision and condominium sellers, operators and 
developers as PD 957 protected them as well. 
Through the years, PD 957 proved to be effective in protecting not only the subdivision and 
condominium buyers but the sellers, operators, and developers as well. However, due to the 
passage of time, certain provisions of PD 957 may prove to be obsolete while others need to be 
ciarifiea. 
This bill seeks to amend certain provisions of PD 957 to enhance buyer's protection, and to 
update and refine said decree to make it updated with today's pre-selling schemes. 
in view oftine foregoing, immediate passage oftnis biii is earnestiy sougnt. 
*+&---- 
A T NIO "SONNY F. TRILLANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
\ 
%3%iid ~&@ikii’ 
&X3ioLl 
I 
G, 
SENATE 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
AMENDING THE SUBDIVISION AND CONDOhf~IURf BUYERS’ PROTECTIVE 
DECREE 
SECTION i. Short Title. - This Act shaii be k n ~ a ~ n  
as the “The Subdivision and 
Condominium Buyers’ Protective Decree Amendments of 2009”. 
SEC. 2. Deciaratlorr of Policy. -it is the poiicy of tiK State to undertake, in cooperation 
with the private sector, a comprehensive and continuing Urban Development. 
SEC. 3. Anrewdutory Pro+.isioits. - For purposes of this Act and in order to strengthen 
Presidential Decree No. 957, entitled “Regulating the Sale of Subdivision Lots and 
Condominiums, Providing Penalties for Violation Thereof‘ otherwise known as “The 
Subdivision and Condominium Buyers’ Protective Decree,’’ the foliowing provisions of P. D. 
No. 957 are hereby amended: 
(a) Paragraph 1, Section 17 of P. D. No. 957 is hereby amended to read as follows: 
“%C. i7. Regfstratroa - Aii [contracts to seii,] deeds of saie [and other similar 
instruments] relative to the sale or conveyance of the subdivision lots and condominium 
units, [whether or not1 WHERE the purchase price is paid in full, shall be registered by 
the seiier in the Office ofthe Register ofDeeds ofthe vovince or city where tihe property 
is situated, UPON THE REQUEST OF THE BUYER AND AT HIS OWN 
EXPENSE, HIS CONTRACT TO SELL MAY ALSO BE REGISTERED WITH 
K kN CASE 
,KHz p-KOpEK liE 1-17- 
OF CANCELLATION OR RESCISSION OF SAID CONTRACT TO SELL FOR 
ANY REASON WHATSOEVER, SUCH REGISTRATION OF CONTRACT TO 
SELL SHALL BE CANCELLED BY THE FROPER BGZSTER OF DEEDS, 
WITHOUT NEED OF ANY COURT ORDER, UPON EXECUTION BY THE 
- 
r’ti,bIEW Og DEEDS, pauvzDED, 
B-uwEpEg, .rm7 -- - , 
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SELLER OF AN AFFIDAVIT THAT SAID CONTRACT TO SELL HAS BEEN 
CANCELLED OR RESCINDED.” 
(b) Section IS of P. D. No. 957 is hereby amended to read as follows: 
“SEC. 18. Mortguge. - No mortgage on any unit or lot shall be made by the owner or 
developer without prior written approval of the Autko&y. 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 prqject and effective measures have 
been provided to enswe such utilization. The ioan 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 DEED OF SALE OR CONTRACT TO SELL COVERING 
A LOT OR UNZT SUBEX3 OF A MORTGAGE SWLL INCLUDE A FARFiAL 
RELEASE CLAUSE OR A PROVISION GUARANTEEING THE RELEASE OF 
THE TITLE TO SAJD LOT OR UNIT UPON FULL PAYMENT BY ITS BUYER. 
The buyer may, at his opio&i, pay his instalimen€ f@r the io€ or unit directly to (ne 
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 titie over tk lot OF unit prompGy after &€i payment thereof.” 
(c) Section 20 of P. D. No. 957 is hereby amended to read as follows: 
“SEC. 20. Tame of Conapktiun. - E.vtxy ownex or deveiioper shall construct and 
provide the facilities, improvements, infrastructures and other forms of development, 
including water supply and lighting facilities, AND CONCRETING OF ROADS, 
which are offered and indicated in the approved subdivision or condominium pians, 
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 subhvision or condominium 
projects OF such other period of times as may be fixed by the Auth~ritg.: PROWDEB, 
THAT IN CASES OF FORCE MAJEURE, FORTUITOUS EVENTS, WAR AND 
NATURAL 
CALAMITY, 
THE 
AUTHORITY 
SHALL 
THEREAFTER 
DETEfZltIWE THE REASONABLE TBiE -WETE€IR -wXiCH TEE PIiFXXCTS 
SHALL BE COMPLETED. 
IN THE EVENT THAT THE OWNER OR DEVELOPER FAD3 TO 
COMPLETE THE DEVBLOPIviEHT OF THE PROJTCT AFTER THE BEmOij 
DATE OF THE ISSUANCE OF THE LICENSE FOR THE SUBDMSION’ OR 
CONDOlviWiUivi PRWXCT, AND UNLESS TEE AUTHOiaTY 
SETS 
OF ONE YEAR MANDATED ABOVE FOR ITS COMPLETION FROM THE 
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ANOTHER TIME FOR COMPLETION OWING TO THE ClRCUMSTANCES 
STATED ABOVE, THE AUTHORITY SHALL DECLARE THE PROJECT 
AEANBORED AND THE Z&3ADS I W  THE ABANXKVZ3B YROJZCT SZZALL 
BECOME PUBLIC IN CHARACTER FIVE 
(5) YEARS FROM THE 
DECLARATION OF ABANDONMENT OF THE PROJECT.” 
(d) Section 22 of P. D. No. 957 is hereby amended to read as follows: 
“SEC. 22. Alteration OfHans. - No owner or developer shall change or alter the 
roads, open spaces, infrastructures, fxiiizies for puMic use and or ~
t
h
 
~QIXZS of 
subdivision OR CONDOMINIUM development as contained in the approved 
subdivision OR CONDOMINIUM plan and or represented in its advertisements, 
Without the permission ofthe Aufwr&y and the w&en confomi4y or consent of the duly 
organized homeowners association OR CONDOMINIUM CORPORATION, or in the 
absence of the latter, by the maiority of the lot puyers] OWNERS in the subdivision OR 
rg@. ~gqm O-wNgNS 
iZ‘f-IE c#pjiTij;wm-rbip,g. 
(e) Section 25 of P. D. No. 957 is hereby amended to read as follows: 
‘‘SEC., 25, Imauace &?Wev - Tw. 
wwmx UI &.veiupt.r si-Mii deitriiver ike iiik d i k e  iut 
or unit to the buyer upon full payment of the lot or unit: PROWDED, THAT IN CASES 
OF LOTS OR UNITS CONVEYED UNDER A PRE-SELLING SCHEME, AND IN 
CAsgs 
TEE o-wg$R GR -wEv-E-LopER is -upqAB-LE 
COMPLETE 
THE PROJECT WITHIN THE ORIGINAL PERIOD AND SUBSEQUENTLY 
GRANTED AN EXTENSION OF TIME, THE DELIVERY OF THE TITLE OF 
THE LOT OR Lj&-gr TO ZgE BQ-yEg SHALL BE UpGN @(jiVlPLETI0“ 
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THE PROJECT: PROWDED, lWRTHER, THAT WHERE THE OWNER OR 
DEVELOPER 
PROPERLY 
PROCESSED 
AND 
SUBMITTED 
THE 
DOC-bl&,EjgHTS TO .g,-HE 
@-j-rk-K-qrHji-fiT 
AGENCES 
~ ~ - N ~ E - m E D  FOR 
ISSUANCE OF TITLE AND THE DELAY IN THE ISSUANCE OF TITLE IS 
NOT THE FAULT OF SUCH OWNER OR DEVELOPER OR WHERE THE 
NOWESSUANCE IS BU~UAN’II 
T O  A CGURT OSLtiSR, THE O-WSER AWDi OR 
DEVELOPER SHALL BE HELD LIABLE FOR SUCH DELAY OR 
NONISSUANCE OF TITLE. 
”NQ fee, except fnose required fw &e wgismtion uf fie deed of sale in -&e Regegisrry 
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 
deveioper shail redeem tihe mortgage OF the cwespoading portion tkreof within six 
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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. IN SUCH A CASE THE 
S@‘&L ;?-a; 
THE TI+LE %ASED 
LOAN VALUE THEREOF. 
(f) Section 27 Q ~ P .  
D. Xo. 957 is hereby amenled co read as foliiows: 
“SEC. 27. Other Charges. - No owner or developer shall levy upon any lot or unit 
buyer a fee for an alleged community benefit. Fees to finance services for common 
COntfOfi, S e c U ~ V  a d  StPni&hl EXly 
a
&
 
cdieG@d Only bq’ a p’OpeFIy OFgaEiEed 
homeowners association OR CONDOMINIUM CORPORATION and only with the 
consent of a majority of the lot or unit Puyers actually residing in the subdivision or 
condominium] U-WNERS.” 
(g) Section 31 ofP. D. No. 957, as amended by P. D. No. 1216, insofar as donation of 
mxis an& u p w  spsks lo iuwa gu:uVexmae.a4i are w w m d ,  is ha&y amended Lu r a d  as 
follows: 
“SEC. 31. Donation of Roads and Open Spaces to Local Government. - The 
registered owner or developer of tihe subdivision or condominium project, upon 
completion of the development of said project [may, at his option, convey by way of 
donation] PURSUANT TO SECTION 20 HEREOF, SHALL ASSIGN the roads and 
open spac~s 
Co,h3TE;MPLATED L-v- pmsmEB-~w-L 
DEcmE No* 
i jiQ -wHIcB 
ARE found within the project to the city or municipality wherein the project is located 
AND IT SHALL BE MANDATORY FOR THE LOCAL GOVERNMENTS TO 
ACCEPT: pRuvTBgB, 
ff-OwEvER, Trn‘I: THE 
AN-D pLA-y-GRo-u-N-Ds 
MAY BE DONATED TO THE HOMEOWNERS ASSOCIATION OR TO THE 
CONDOMLNIUM CORPORATION WITH THE CONSENT OF THE CRY OR 
IviUNICZiiALITY CONe‘EiWZB.. Upon sweptance 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]: PZOVZZ3Ek9, FU&F&-Eii, THAT ROiilij: FN SUBDiVXSIwNS 
WHICH HAVE BECOME PUBLIC IN CHARACTER FIVE (5) YEARS AFTER 
THE DECLARATION OF ABANDONMENT BY THE AUTHORITY OF THE 
SUBDIV~SION OR 
CoNmIv!m-IiJM PRWZCT -WHERE THEY Am 
LOCATED SHALL IPSO FACTO BECOME PROPERTY OF THE LOCAL 
GOVERNMENT UNIT THAT HAS JURISDICTION OVER SAID ROADS.” 
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(h) Section 39 of P. D. No. 957 is hereby amended to read as follows: 
“SEC. 39. Penalties. - Any person who shall INTENTIONALLY AND 
%iAL€CEOU%iy v&a& any or^ the p~w&asims 4 this Decree an& cx any ruie or 
regulation that may be issued pursuant to this Decree shall, upon conviction, be punished 
by a fine of not [morel LESS [than twenty thousand pesos (p20,OOO.OO)l TWO 
EiUNDZWD THOUSAND PESOS (P20e3,W.W) a
d
 01 imprisonment of not jmorej 
LESS than [ten] TWENTY (20) YEARS. Provided, that in case of corporations, 
partnership, cooperatives, or associations, the President, Manager or Administrator or the 
person who has charge of the &inistription 
of the business shali .be crirninaiiy 
responsible for any violation of this Decree and or the rules and regulations promulgated 
pursuant thereto.” 
SEC. 4. Repealing Clause. - All laws, decrees, executive orders, proclamations, rules 
and regulations, and other issuances or part or parts thereof, which are inconsistent with the 
provisions ofthis Act are hereby repaid m mcxiified wcm&ngiy. 
SEC. 5. Separability Clause. - If for any reason, any provision of this Act is declared 
invalid ur u ~ o ~ t i i a r i i o ~ &  
the remining p~uuisions wt aE€ecttxi thereby shall continue tu be in 
force and effect. 
SW. 6. Ejj”e&vky Clause. - Tiis Act &ail take effect upon pubiication in at ieast two 
newspapers of general circulation. 
Approved, 
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