FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
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SENATE 
,399 
S.NO. ___ _ 
Introdnced by Senator Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
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Overseas Filipino Workers (OFWs) and retirees arc driving up the demand I(l!' rcsidcnti,d 
property in the Philippines. According to a report li'om CB Richard Ellis Phiitppincs (Cl3RE), a 
signilieant nlllllbcr of OFWs and Filipino retirees !i'om around the world thai reside in the 
country or eill1sicicring residence here account lor the robust sales of midrange properties. 
Accordingly, a data I"i'om CBRE stated that condominium developers plan to build an 
approximatc tolal of 40,000 units by 2011. The data showed thal 28 resldcntial condominiu1l1 
buildings wilh a tolal of 18,000 units are expected to risc from 2008 up lo 20ll in f\1,lkati City 
together with 33 more condominium huildings totaling 11,500 units in the adjacent Fori 
Bonililcio Global City. 
However, the rise of the real estate industry also made the condominium developers susceptible 
to complaints. 
For instance, some complaints forwarded to the Housing and Land Use 
Regulatory Board (HLURB) showed that discrepancies in floor area measurements exist in 
condominium projects. 
This bill seeks to protect small condominium unit buyers from onerous and/or unreasonable· 
contractual provisions imposed by condominium developers, considering that small 
condominium buyers normally do not have resources to have their respective contracts reviewed 
by lawyers. The bill further seeks to protect said buyers from flawed and misleading information 
as regards the floor area measurements of small condominium units. The HLURB is hereby 
tasked to issue inspection certificates which will guarantee the small condominium unit buyers 
against possible fraud due to incorrect condominium floor area measurements. Developers, 
dealers, brokers, sellers or owners are likewise held bound by representations they have made in 
the handouts, posters, brochures, prospectus, letters, circulars or any form of advertisement of 
their condominium projects or any units thereof 
In view ofthe foregoing, the passage of this bill is earnestly sought. 
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10 "SONNY F. TRILLANES IV 
Senator 
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FIFTElcNTH CONGRESS OF THE 
RE1'lJBLIC OF THE PHILIPPINES 
Fit'st Regular Session 
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) 
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Sl<;NATE 
399 
s. NO. _____ ~ 
AN ACT 
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EXTENIHNG "ROTECTlON TO SMALL CONDOMINIUM UNIT BliYERS AND j;'OIl onnm 
R1,LATED J>lJRl'OSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Title.- This Act shall be known as the "Small Condominium Unit Buyers 
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Protection Act of2010". 
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SEC. 2. Policy of tile State.- It is the policy of the State to protect small condominium 
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unit buyers against onerous and/or unreasonable contraclual provisions imposed by 
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condominium developers, as well as against flawed and misleading iniimnation as regards the 
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11001' arca measurement of small condominium units. 
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81<:C. 3. Definition of l'erms.- For purposes of this Act, the following detinitions shall 
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apply: 
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1. "Broker" means any person who, for commission or other compensation, undertakes to sell 
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or negotiate the sale of a real estate belonging lo another. 
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2. "Condominium Buyer" means a party which acquires, or agrees to acquire, ownership or 
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benefit or lL~age, in exchange for money or other consideration under a contract of sale, 
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3. "Small Condominium Unit" means a pmt of the condomininm project intended for any type 
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of independent residential use or ownership, including one or more rooms or spaces located 
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in one or more floors (or part or parts of floors) in a building or buildings and such 
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accessories as may be appended thereto. The unit contemplated hereunder shall have an 
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actual floor area not exceeding one hundred square meters (100 sqm) in measurement. 
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4. "Dealer" means any person directly engaged as principal in the business of buying, selling or 
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exchanging real estate whether on a full-time or part-time basis. 
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5. "Developer" means the person who develops or improves the condominium project for and in 
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behalf of.the owner thereof. 
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6. "Owner" refers to the registered owner of the land subject of condominium project. 
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7. "Project" means the entire parcel of real property divided or to be divided into 
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condominiums, including all structures thereon. 
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8. "Salesmen" refers to the persons regularly employed by a broker to perform, [or and in his 
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behalf, any or all fimctions of a real estate broker. 
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SEC. 4. Meas/II'ement of the Floor Area ami Atljllstmellt of tile Unit Price.-
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I. Upon completion of the project and upon request of the small condominium unit buyer, or 
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upon a complaint filed by the said buyer, before the Housing and Land Use Regulatory Hoard 
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(hereinafter referred as HLURB), it shall be the duty of the BLURB to conduct an actual 
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measurement of the floor area of the unit bought within fifteen (15) working days from receipt of 
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the request or complaint, and thereafter issue an order stating the actual totalmcasurement of the 
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floor area of the small condominium unit in question, which order shall be final and executory 
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and binding on both the buyer and the developer, dealer, broker, salesmen or owner. 
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2. There shall be a proportional adjustment in the price of the small condominium unit subject of 
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the contract of sale in case there is found any variance between the actual total measurement of 
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the Hoor area ()f said unit as duly measured by the HLURB and the total t100r mea as represented 
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by the developer, dealer, broker, salesmen or owner in the contract of sale with the buyer or in 
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the handouts, posters, brochures, prospectus, circulars, letters or any other literature intended to 
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advertise .the project in question or any units then.:of. 


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3. It shall be the duty of the HLURB to ensure that the proportional adjustments in the prices of 
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small condominium units being sold to the public, as prescribed in the preceding paragraph, are 
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strictly made and enforced. 
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SEC. 5. Issuance of Certificate of Illspectioll.- Consequent to the first paragraph of the 
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preceding Section and upon request of the small condominium unit buyer, the H LURB shall 
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issue a Certificate of Inspection, which states that the actual floor area of the unit in question 
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meets the measurement of the floor area as represented by the developer, broke I', dealer, 
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salesmen, or owner. 
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SEC. 6. Rights of a Defaliitillg Bllyer.-
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(A) In all transactions or contracts involving the sale or financing of small condominium units on 
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installment payments, where the buyer has paid at least two (2) years of installments, and 
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defaults in tl1e payment of his succeeding installments, he shall be entitled to the following 
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rights: 
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1. To pay without additional interest the unpaid installments due withm the tolal gW(;'~ 
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period eamed by him, which grace period is equal to one (1) month for every year of 
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installment payments made. This right can be exercised by the buyer only once in every 
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five (5) years of the life of the contract; 
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2. To be refunded of the cash surrender value of his payments on the small condominium 
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unil, equal to fifty percent (50%) of his total payments if the contract is cancelled. 
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However, if he has paid t1ve (5) years or more, he is entitled to an additional five percent 
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(5%) every year but not to exceed ninety percent (90%) of the total payments made. 
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Actual cancellation ofthe contract shall take place only after thirty (30) days li'OIH receipt 
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by the buyer of the notice of cancellation or demand for rescission and upon ti.dl payment 
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to the buyer of the cash surrender value. 
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(B) If the small condominium unit buyer has paid less than two (2) years of installments, he shall 
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have the right to pay within a grace period of not less than sixty (60) days li'om the time the 
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installment beCame due. If the bnyer fails to pay the installments dne at the expiration of the said 
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grace period, the buyer shall not be entitled to any refund, and the contract may be cancelled 
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after thitty (30) days from his receipt of the notice of cancellation or demand for rescission by a 
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notarial ac1. 
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(C) The down payments, deposits or options on the contract shall be included in the computation 
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of the total number of installment payments made. 
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SEC. 7. Right to Assign or Reillstllte Cotltrllct.- The buyer shall have the right to sell or 
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assign his rights over the small condominium unit to another person or reinstate the contract by 
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updating the account during the grace period and before the actual cancellation of the conirac1. 
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The deed of sale or assignment shall be done by notarial act. 
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SEC, 8. Right to Advlllice Paytnellt.- The buyer shall have the right to pay in advance 
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any installments or the fttll unpaid balance of the purchase price any time without interest and to 
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have such filiI payment of the purchase price annotated in the certificate of title covering the 
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property. 
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SEC, 9. Right of Reflllul.- The buyer shall have the right of refund of the entire amount 
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of any installment payments made by him, when the developer tails to complete the 
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condominiun1 project within one year from the date of issuance of the license for the 
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condominiUl'n pr~ject or such other period of time as may be approved or fixed by the IlLURB. 
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2.5 
SF,C. to. Right 10 have COli tract Registered ... Where the purchase price is paid in jilll, 
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the buyer shall have the right to have his deed of sale rclaiive to the sale or conveyance of the 
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small condominium unit, registered by the developer, dealer, broker or salesmen in the Ollke of 
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the Register of Deeds of the province or city where the property is situated. 
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Upon the request ofthe buyer and at his own expense, his contract to sell may likewise be 
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registered with the proper register of deeds. However, in case of cancellation or rescission of said 
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contract to sell for any reason whatsoever, such registration of contract to sell shall be cancelled 
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by the proper register of deeds without need of any court order upon execution by the develuper, 
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dealer or broker of an affidavit that said contract to sell has been cancelled or rcscinded. 
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SEC. t 1. Additiollal Protection to Buyers.- (I) Any disclaimer or wai ver made by the 
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developer, dealer, broker, salesmen or owner in the contract or in the handouts, posters. 
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brochures, prllspectus, circulars, letters, literature or any other form of adveltisement of the 
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condominiuIl1 project in question or any unit thereof, as to the measurement of the floor area of 
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any small condominium unit part of said project, shall be null and void. 
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(2) Any representation made in the contract or in the handouts, posters, brochures, prospectus, 
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circulars, letters, literature or any other form of advertisement, as to the amenities, facilities, 
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common spaces and other such spaces and facilities, shall be binding on, and should be cOlnplicd 
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with by, the developer of the condominium project. Any disclaimer or waiver to the contrary 
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made by said developer shall be null and void. 
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(3) Any stipulation in any contract entered into contrary to the provisions of this Act shall be null 
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and void. 
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SEC'. 12. Petlllities.-
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I. The HLUR B may, motu prop;o or upon verified complaint filed by a buyer of a small 
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condominium unit and after due notice and hearing, revoke the registration of ,my 
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condominium project and the license to sell any small condominium unit in said project by 
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issuing an order to this effect, if there is satisfactory evidence that the owner or developer has 
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made any' misrepresentation in the contract or in any handouts, posters, prospectus, brochure, 
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circulars, letters or other literature about the measurement of the floor area of any of the 
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small condominium units for sale in said project or has otherwise violated any of the 
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provisions of this Act or any applicable rule or regulation ofthe HLUR13 in relation herewith. 
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2. The BLURB may, after due notice and hearing, refuse registration or issuance of license of, 
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or revoke any registration granted or any license issued to, any broker, dealer or salesmen 
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found guilty of fraud or misrepresentation in connection with any sale of a small 
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condominium unit, or has misrepresented the measurement of the floor area of allY small 
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condominium unit for sale in the project, or has otherwise violated any provision of this Act 
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or any rule or regulation made hereunder by the HLURB. 
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SEC. 13. Implementillg Rules and Regu{atiolls.- Within ninety (90) days from the 
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effectivity of this Act, the HLURB shall promulgate the necessary rules and regulations to 
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implement the provisions of this Act. Such rules and regulations shall take effect immediately 
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thereafter. 
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SEC. 14. Repealillg Chwse.- Any laws, decrees, ordinances or rules and regulations 
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which are inconsistent with or contrmy to the provision of this Act is hereby amcnded (w 
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repealed. 
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SI~C. 15. F;llectivity.- This Act shall take effect fifteen (15) days after its complete 
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publication in at least two (2) national newspapers of general circulation. 
Approved, 
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