HOUSE OF REPRESENTATIVES
RECEIVED
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Republic of the Philippisles
HOUSE OF REPRESENTAJIVE
Quezon City

SEVENTEENTH CONG
First Regular Session

133

House Bill No. REGISTRATION UNIT
BILLS AND INDEX SERVICE

EXPLANATORY NOTE

Many families in the urban areas today are choosing the condo life. This is mainly because a
condominium is like a hybrid between an apartment and a house and more importantly, why
you buy a condominium, you own it outright. Thus, condominium living is fast becoming a
new way of life for modem Filipino families.

However, buying a condominium is not always as convenient as it seems. News about fraud,
abuses and exploitations by condominium seller and/or developers are not new. Almost
everyday, we hear news of Filipino families who dream of owning a condominium unit end
up not being able to make their dream a reality because they have become victims of fraud,
abuses and exploitations of condominium sellers and/or developers.

Considering that it is a policy of the State to undertake, in cooperation with the private sector,
a comprehensive and continuing urban development, the present Condominium Buyer's
Protective Decree of 1976 must be amended to provide additional protection to buyer's of
condominium units,

‘The amendment of the present law will serve as a deterrent to the deliberate violation of the
law by some unscrupulous owners and/or developers and ensure further the protection of
buyers of condominium units. Hence, the passage of this bill is urgently sought

SCOTT DAVIES §
epresentative
Third District, Province

LANETE, M.D.

of Masbate



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

337

House Bill No.

Introduced by HONORABLE SCOTT DAVIES S. LANETE, M.D.

AN ACT MANDATING THE FULL DISCLOSURE OF RELEVANT FACTS AND
ALL REQUIREMENTS BY THE OWNERS AND/OR DEVELOPERS OF
CONDOMINIUM PROJECTS TO THE BUYERS AMENDING FOR THE PURPOSE

PD 957 AND FOR OTHER PURPO

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.

Section 1. Short Title, This Act shall be known as “The Condominium Buyers’ Protective
Decree of 2016.

Sec. 2. Declaration of Policy. It is the policy of the State to undertake. in cooperation with
the private sector, a comprehensive and continuing urban development. Toward this end,
certain reforms must be made in the present law to add more protection 1 the buyers of
condominium units,

Sec. 3. Mull Disclosure of All Documentary Requirements, \t shall be mandatory for the
owners and/or developers { provide a list, which shall specify all documents. required from
the buyer.

The list of documentary requirements shall be acknowledged by the buyer by alliving his/her
signature

Within thirty (30) days from the signing, the buyer must submit all the documentary
requirements to the developer. Failure to submit all the required documents shall cause the
forfeiture of the offer to buy the condominium unit.

No deposit/reservation fee/down payment shall be paid by the buyer until all the documentary
requirements are processed and accepted by the developer as valid and complete

Sec 4. Copy of by-laws and Master Deed. It shall be mandatory for the owners and/or
developers to provide the buyer a copy of the by-laws and the master deed. Should a hard
copy not be feasible, the owners and/or developers shall direct the buyer (© their website
where the by-laws and master deed are posted.



Sec. 5. Condominium Corporation Board. It shall be mandatory for the owners and/or
developers to provide the buyer a list of the names of the current board of the Condominium
Corporation, Should a hard copy not be feasible, the owners and/or developers shall direct the
buyer to their website where such list is disclosed.

See. 6, Copwies of the Architectural and/or Engineering Plans. It shall be mandatory for the
owners and/or developers to provide the buyer copies of the architectural and/or engineering
plans of the condominium project. Should a hard copy not be feasible, the owners and/or
developers shall direct the buyer to their website where such plans are posted

See 7. Certified True Copy of Land Title. Wt shall be mandatory for the owners and/or
developers to provide the buyer a certified true copy of the title of the condominium project
With the annotation any liens on the property, if any. The cost for obtaining a certified true
copy of the title shall be bome by the owners and/or developers.

Sec. 8. Signature on Ads and Promotional Materials. The buyer may ash the broker and/or
company officials to sign any official ad or promotional materials issued for the
condominium project

Sec. 9. Penalties. Any owner and/or developer of condominium projects who neglect or fail
to establish and maintain green spaces in their projects shall be punished with a fine of not
less that Five Hundred Thousand Pesos (PhpS00,000.00) but not more than One Million
Pesos (Php1,000,000.00), without prejudice to the filing of appropriate administrative,
criminal or civil charges against them.

Sec 10. Implementing Rules and Regulations, The Housing and Land Use Regulatory Board
shall have the power to promulgate the implementing rules and regulations as may be
necessary’ 1o fully implement the objectives and purposes of this Act within one (1) year from
the approval hereof.

Sec. 11. Separability Clause, ~ If any part or provision of this Aci shall be held
unconstitutional or invalid, other provisions, which are not affected thereby, shall continue to

be in full force and effect.

ec. 12. Repealing Clause. ~ Ali laws, issuances or parts thereof inconsistent with this Act
are hereby repealed or modified accordingly

Sec. 13. Hffectivity. ~ This Act shall take effect fifteen (15) days after ils publication in the
Official Gazeue or in at least two (2) newspapers of general circulation.

Approved.