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Republic of the Pheippines:
Rouse of Representatives
@urzon City, Metre Manila

15" Congress
1* Regular Session

693

COMMITTEE REPORT NO.

Sulbned bythe Commiige gn Housing and Urban Development on
Re: House Bill No: oS

Recommending its approval in substitution of House Bill Nos. 215 and 915
Sponsors Representatives Valencia, Yap, and Gunigundo

Mr. Speaker:

The Committee on Housing and Urban Development to which were referred House Bill No. 215
introduced by Rep, Gunigundo, entitled:

“AN ACT TO AMEND PRESIDENTIAL DECREE 957 TO INCREASE THE.
PENALTIES FOR VIOLATION THEREOF”,

and House Bill No. 915 introduced by Rep. Yap, entitled:

“AN ACT TO INSTITUTE REFORMS IN THE SUBDIVISION AND
CONDOMINIUM BUYERS’ PROTECTIVE DECREE”

thas considered the same and recommends that the attached House Bill No, <= @ __ entitted:
“AN ACT TO INSTITUTE REFORMS IN ‘THE SUBDIVISION AND
CONDOMINIUM BUYERS’ PROTECTIVE DECREE”

bbe approved in substitution of House Bill Nos. 215 and 915 with Reps. Yap, Gunigundo, and Ocampo as

authors thereof,
ee /

RODOLFO G. VALENCIA,
Chairman
Committee on Housing and Urban Development

‘THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS.
First Regular Session

HOUSE BILL NO. 2.3.16

Introduced by: Representatives Susan A. Yap, Magtanggol T. Gunigundo |, and
Rosenda Ann M. Ocampo

AN ACT
INSTITUTING REFORMS IN THE SUBDIVISION AND CONDOMINIUM BUYERS’
PROTECTIVE DECREE

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 Subdivision and

Condominium Buyers’ Protective Decree Amendments of 2011.”

SEC. 2, Declaration of Poticy. — \t is the policy of the State to undertake, in
cooperation with the private sector, a comprehensive and continuing urban
development. Toward this end, certain remedial reforms ought to be introduced to
the operational provisions of the Subdivision and Condominium Buyers’ Protective
Decree in order to strengthen and make the same responsive and attuned to the

needs of the present times.

SEC. 3. Remedial Provisions. — 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 Condominiums Buyers’ Protective
Decree," the following provisions are hereby amended:

(a) Paragraph (n), Sec. 2 of P.D. 957 is hereby amended to read as follows:

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“(n) (Authority. “Authority’] BOARD. “BOARD” shall mean the [National

Housing Authority] HOUSING AND LAND USE REGULATORY BOARD.”

The term “Authority” found elsewhere in the decree is hereby amended to
read as “BOARD”.

{b} Section 3 of P.D. No. 957 is hereby amended to read as follows:

“Sec. 3. [National Housing Authority. — The National Housing Authority]
HOUSING AND LAND USE REGULATORY BOARD. - THE HOUSING AND
LAND USE REGULATORY BOARD shall have exclusive jurisdiction to
regulate the real estate trade and business in accordance with the provisions of
this Decree.

{c) Paragraph 1, Section § of P.D. No. 957 is hereby amended to read as

follows:

“SEC. 5. License fo Self. - A CERTIFICATE OF REGISTRATION DOES.
NOT AUTHORIZE [S]such owner or dealer [to whom has been issued a
registration certificate shall not, however, be authorized] to sell any subdivision
lot or condominium unit in the registered project [unless] UNTIL he shall have
first obtained a license to sell the project within two weeks from the registration
of such project.”

{d) Paragraph 1, Section 17 of P.D. No. 957 is hereby amended to read as

follows:

“SEC. 17. Registration. — All [contracts to sell,] deeds of sale [and
other similar instruments relative to the sale or conveyance] of [the]
subdivision lots and condominiums units, [whether or not the] WHOSE
purchase price is ALREADY paid in full] shail be registered by the seller in
the Office of the Register of Deeds of the province or city where the

property is situated AT HIS EXPENSE. IN CASES OF INSTALLMENT
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PAYMENTS, THE CONTRACT TO SELL SHALL ALSO BE REGISTERED
BY THE DEVELOPER WITH THE PROPER REGISTER OF DEEOS, THE
EXPENSE FOR WHICH SHALL BE SHARED PROPORTIONATELY BY
THE SELLER AND THE BUYER: PROVIDED, HOWEVER, THAT IN
CASE OF CANCELLATION OR RESCISSION OF SAID CONTRACT TO
SELL, SUCH REGISTRATION OF CONTRACT TO SELL SHALL BE
CANCELLED BY THE PROPER REGISTER OF DEEDS, WITHOUT NEED
OF ANY COURT ORDER, UPON EXECUTION BY THE SELLER OF AN
AFFIDAVIT THAT SAID CONTRACT TO SELL HAS BEEN CANCELLED
OR RESCINDED DUE TO DEFAULT ON THE PART OF THE BUYER,
WITHOUT PREJUDICE TO THE RIGHTS OF THE BUYER UNDER
REPUBLIC ACT NO. 6552, OTHERWISE KNOWN AS THE “REALTY
INSTALLMENT BUYER PROTECTION ACT’: PROVIDED, FINALLY,
THAT THE BOARD SHALL HAVE JURISDICTION OVER DISPUTES
BETWEEN THE BUYER AND THE SELLER REGARDING THE
CANCELLATION OF THE REGISTRATION OF A CONTRACT TO SELL.”
(e) Section 18 of P.D. No. 957 is hereby amended to read as follows:

“SEC. 18. Mortgages. ~ No mortgage on any unit or lot shall be made
by the owner or developer without prior written approval of the [Authority]
BOARD. Such approval shall not be granted unless it is shown that the
proceeds of the mortgage ‘oan shall be used for the development of the
condominium or subdivision project and effective measures have been
provided to ensure such utilization. The loan 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 UNIT SUBJECT OF A
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MORTGAGE SHALL INCLUDE A PARTIAL RELEASE CLAUSE OR A
PROVISION GUARANTEEING THE IMMEDIATE RELEASE OF THE
TITLE TO SAID LOT OR UNIT UPON FULL PAYMENT BY ITS BUYER.
‘The buyer mayf, at his option, pay his] OPT TO PAY THE installment for
the lot or unit directly to the 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 title over the lot
oF unit promptly after full payment thereof,

“IN CASE A COMPLAINT IS FILED FOR THE IMMEDIATE
RELEASE OF THE TITLE UPON FULL PAYMENT OF A PROPERTY,
THE MORTGAGEE MUST BE IMPLEADED AS AN INDISPENSABLE
PARTY."

{f) Section 20 of P.D. No. 957 is hereby amended to read as follows:

“SEC, 20. Time of Completion. —- Every owner or developer shall
construct and provide the facilities, improvements, infrastructures and other
forms of development, including water supply [and], lighting facilities, AND
DEVELOPMENT OF ROADS, AS PROVIDED FOR [which are offered and
indicated] in the approved subdivision or condominium plans, brochures,
Prospectus, printed matters, letters or in any form of advertisement, within
[one year] EIGHTEEN (18) MONTHS fram the date of the issuance of the
license for the subdivision or condominium projects or such other period of
time as may be fixed by the [Authority] BOARD: PROVIDED, THAT IN
CASES OF FORTUITOUS EVENTS, THE BOARD SHALL THEREAFTER,
UPON EVALUATION OF THE NATURE OF THE PROJECT AND THE
CAPABILITY OF THE DEVELOPER TO COMPLETE THE SAME,

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DETERMINE THE REASONABLE TIME WITHIN WHICH THE PROJECTS
SHALL BE COMPLETED.

“IN THE EVENT THAT THE OWNER OR DEVELOPER FAILS TO
COMPLETE THE DEVELOPMENT OF THE PROJECT AFTER THE
PERIOD OF EIGHTEEN (18) MONTHS MANDATED ABOVE FOR ITS
COMPLETION FROM THE DATE OF THE ISSUANCE OF THE LICENSE
FOR THE SUBDIVISION OR CONDOMINIUM PROJECT, AND UNLESS
THE BOARD SETS ANOTHER TIME FOR COMPLETION OWING TO
THE CIRCUMSTANCES STATED ABOVE, THE BOARD SHALL, UPON
WRITTEN NOTICE TO THE DEVELOPER OR THROUGH PUBLICATION
WHERE THE DEVELOPER CANNOT BE LOCATED, DECLARE THE
PROJECT ABANDONED AND THE ROADS IN THE ABANDONED
PROJECT SHALL BECOME PUBLIC IN CHARACTER ONE YEAR FROM
THE DECLARATION OF ABANDONMENT OF THE PROJECT.”

(q) Section 22 of P.D. No. 957 is hereby amended to read as follows:

“SEC. 22. Alteration of Plans. - No owner or developer shall change
or alter the roads, open spaces, infrastructures, facilities for public use
and/or other forms of subdivision OR CONDOMINIUM development as
contained in the approved subdivision OR CONDOMINIUM plan and/or
fepresented in its advertisements, without the permission of the [Authority]
BOARD and the written conformity or consent of the duly organized
homeowners association OR CONDOMINIUM CORPORATION, or in the
absence of the latter, by the majority of the [lof] buyers [in the] OF
subdivision LOTS OR CONDOMINIUM UNITS WHO HAVE ALREADY
PAID AT LEAST FIFTTY PERCENT (50%) OF THE PURCHASE PRICE.

{h) Section 25 of P.D. No. 957 is hereby amended to read as follows:
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“SEC. 25.Issuance of Title. — The owner or developer shall deliver
the title of the lot or unit to the buyer upon full payment of the lot or unit af]:
PROVIDED, THAT WHERE THE OWNER OR DEVELOPER PROPERLY
PROCESSED AND SUBMITTED THE DOCUMENTS TO THE
GOVERNMENT AGENCIES CONCERNED FOR THE ISSUANCE OF
TITLE AND CAN SHOW PROOF OF THE SAME AND THE DELAY iN
THE ISSUANCE OF TITLE IS NOT THE FAULT OF SUCH OWNER OR
DEVELOPER OR WHERE THE NON4SSUANCE IS PURSUANT TO A
COURT ORDER, THE OWNER OR DEVELOPER SHALL NOT BE HELD
LIABLE FOR SUCH DELAY OR NONISSUANCE OF TITLE.

“No fee, except those required for the registration of the deed of sale
in the Registry 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 developer shall redeem the
mortgage or the corresponding portion thereof [within six months}
IMMEDIATELY from such issuance in order that the title over any fully paid
jot or unit may be secured and delivered to the buyer in accordance
herewith, IN SUCH A CASE, THE MORTGAGEE SHALL NOT
UNREASONABLY REFUSE RELEASE OF THE TITLE BASED ON THE
LOAN VALUE THEREOF.”

(i) Section 27 of P.D. No. 957 is hereby amended to read as follows:

“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 comfort, security and sanitation may be collected only

by a properly organized homeowners association OR CONDOMINIUM

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CORPORATION and only with the consent of a majority of the lot or unit
buyers actually residing in the subdivision or condominium project.
{j) Section 31 of P.D. No. 957, as amended by P.D. No. 1216, is hereby

amended to read as follows:

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“SECTION 31. Roads, Aileys, Sidewalks and Open Spaces —
The owner [2s] OR developer of a subdivision shall provide adequate
roads, alleys and sidewalks. For subdivision projects one (1) hectare or
more, the owner or developer shall reserve thirty percent (30%) of the
gross area for open space EXCLUSIVELY FOR ROADS, ALLEYS,
SIDEWALKS, SCHOOLS, PLACES OF WORSHIP, HOSPITALS,
HEALTH CENTERS, BARANGAY CENTERS, PARKS,
PLAYGROUNDS, RECREATIONAL USES, CLUBHOUSES, AND
OTHER SIMILAR FACILITIES AND AMENITIES.

Such open space shall have the following standards allocated
exclusively for parks, playgrounds and recreational use:

a. 9% of gross area for high density or social housing (66 to 100
family lots per gross hectare).

b. 7% of gross area for medium-density or economic housing (21 to
65 family lots per gross hectare)

c. 3.5% of gross area for low-density or open market housing (20
family lots and below per gross hectare)

These areas reserved for parks, playgrounds and recreational
use shall be [non-alienable public lands, and non-buildable]
EXCLUSIVELY FOR THEIR INTENDED PURPOSES. The plans of
the subdivision project shall include tree planting on such parts of the
subdivision as may be designated by the [Authority] BOARD.

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Upon their completion PURSUANT TO SECTION 20 HEREOF
AND as certified to by the [Authority] BOARD, the roads, alleys, AND
sidewalks[, and playgrounds,] shall, WITH THE CONSENT OF THE
HOMEOWNERS’ ASSOCIATION UPON CONSULTATION, be
donated by the owner or developer to the city or municipality and it
Shall be mandatory for the local governments to accept: PROVIDED,
THAT OPEN SPACES RESERVED FOR SCHOOLS, PLACES OF
WORSHIP, HOSPITALS, HEALTH CENTERS, AND BARANGAY
CENTERS SHALL BE DONATED BY THE OWNER OR
DEVELOPER TO THE CITY OR MUNICIPALITY AND IT SHALL
LIKEWISE BE MANDATORY FOR THE LOCAL GOVERNMENTS TO.
ACCEPT: Provided, however, that the OPEN SPACES RESERVED
EXCLUSIVELY FOR parks, [and] playgrounds, _[may}
RECREATIONAL USES, CLUBHOUSES, AND OTHER SIMILAR
FACILITIES AND AMENITIES SHALL be donated to the Homeowners
Association of the project with the consent of the city or municipatity
concemed. UPON ACCEPTANCE OF THE DONATION BY THE
CITY OR MUNICIPALITY OR THE HOMEOWNERS’ ASSOCIATION
CONCERNED, [Njno portion of the [parks and playgrounds} AREA
donated thereafter shall be converted to any other purpose or
purposes: PROVIDED, FURTHER, THAT ROADS IN SUBDIVISIONS
WHICH HAVE BECOME PUBLIC IN CHARACTER ONE YEAR
AFTER THE DECLARATION OF ABANDONMENT BY THE BOARD
OF THE SUBDIVISION PROJECT WHERE THEY ARE LOCATED
SHALL /PSO FACTO BECOME THE PROPERTY OF THE LOCAL

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GOVERNMENT UNIT THAT HAS JURISDICTION OVER THE SAID
ROADS.”
(k) Section 38 of P.D. No. 957 is hereby amended to read as follows:

“SEC. 38. Administrative Fines. - The [Authority] BOARD may prescribe
and impose A fine[s] not exceeding [ten] FIFTY thousand pesos (P50,000.00)
for EACH viclation[s] OF ANY of the provisions of this Decree or of any rule or
regulation thereunder. Fines shall be payable to the [Authority] BOARD and
enforceabie through writs of execution in accordance with the provisions of the
Rules of Court.”

(l) Section 39 of P.D. No. 957 is hereby amended to read as follows:

“SEC. 39. Penalties. ~ Any person who shail violate any of the
provisions of this Decree and/or any rule or regulation that may be issued
pursuant to this Decree, INCLUDING, BUT NOT LIMITED TO, THE
FAILURE TO COMPLETE THE DEVELOPMENT OF THE PROJECT
WITHIN THE PRESCRIBED PERIOD PURSUANT TO SECTION 20
HEREOF, FAILURE TO REFUND THE PURCHASE PRICE OR THE
INSTALLMENT PAYMENT MADE IN VIOLATION OF SECTION 23
HEREOF, FAILURE TO DELIVER THE TITLE PURSUANT TO SECTION
25 HEREOF, FAILURE TO FOLLOW CONSTRUCTION SPECIFICATIONS
OR POOR WORKMANSHIP RESULTING TO SUB-STANDARD UNITS
OR TO CONSTRUCTION DEFECTS, shall [, upon conviction, be punished
by a fine of not more than twenty thousand pesos (R20,000.00) and/or
imprisonment of not more than ten years: Provided, That in] SUFFER:

A) ON THE FIRST OFFENSE, A FINE OF NOT MORE THAN FIVE
HUNDRED THOUSAND PESOS (R500,000.00) OR FIFTY PERCENT

(50%) OF THE TOTAL PURCHASE PRICE OF THE PROPERTY AS
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STATED IN THE CONTRACT TO SELL OR DEED OF SALE, INCLUDING
ALL THE CHARGES IMPOSED BY THE DEVELOPER WHICHEVER IS
HIGHER AND/OR IMPRISONMENT OF NOT MORE THAN FOUR (4)
YEARS, AT THE DISCRETION OF THE COURT;

B) ON THE SECOND OFFENSE, A FINE OF NOT MORE THAN
SEVEN HUNDRED FIFTY THOUSAND PESOS (R750, 000.00) OR
SEVENTY-FIVE PERCENT (75%) OF THE TOTAL PURCHASE PRICE OF
THE PROPERTY AS STATED IN THE CONTRACT TO SELL OR DEED
OF SALE, INCLUDING ALL THE GHARGES IMPOSED BY THE
DEVELOPER WHICHEVER IS HIGHER AND/OR IMPRISONMENT OF
NOT MORE THAN SEVEN (7) YEARS, AT THE DISCRETION OF THE
COURT; AND

) ON THE THIRD OFFENSE, IN ADDITION TO A FINE OF NOT
MORE THAN ONE MILLION PESOS (F1,000,000.00) OR ONE HUNDRED
PERCENT (100%) OF THE TOTAL PURCHASE PRICE OF THE
PROPERTY AS STATED IN THE CONTRACT TO SELL OR DEED OF
SALE, INCLUDING ALL THE CHARGES IMPOSED BY THE
DEVELOPER WHICHEVER I$ HIGHER AND/OR IMPRISONMENT OF
NOT MORE THAN TEN (10) YEARS, AT THE DISCRETION OF THE
COURT, THE BUSINESS PERMITS AND LICENSES, IN THE CASE OF A
BUSINESS ENTITY OR ESTABLISHMENT, SHALL BE REVOKED OR
CANCELLED.

IF BY REASON OF ADVERTISEMENTS IN VIOLATION OF THIS:
DECREE, A REAL ESTATE OR A CONDOMINIUM UNIT IS SOLD, AN
ADDITONAL FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND

(500,000.00) SHALL BE IMPOSED FOR EVERY UNIT SOLD.
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IN the case of comorations, 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.”

SEC. 4. Repealing Clause. — All laws, decrees, executive orders,
proclamations, rules and regulations, and other issuances, or pat or parts
thereof, which are inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

SEC. 5. Separability Clause. ~ If for any reason, any provision of this Act is
declared invalid or unconstitutional, the remaining provisions not affected thereby

shall continue to be in force and effect.

SEC. 6. Effectivity Clause. — This Act shall take effect fifteen (15) days after
the completion of its publication in the Official Gazette or at least two (2) newspapers

of general circulation.

Approved,

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FACT SHEET

House Bill No.
(As Approved on February 9, 2011)

AN ACT INSTITUTING REFORMS IN THE SUBDIVISION AND
CONDOMINIUM BUYERS’ PROTECTIVE DECREE

Introduced by. REPS. YAP, GUNIGUNDO, and OCAMPO

Committee Referral: COMMITTEE ON HOUSING AND URBAN DEVELOPMENT
Committee Chairperson: REP. RODOLFO G. VALENCIA

OBJECTIVES:

* To amend Presidential Decree (PD) 957 or the Subdivision and Condominium
Buyers’ Protective Decree with the end view of instituting reform measures,
making it more responsive and attuned to the needs of the present times.

* To increase the penalties provided under PD 957 to serve as a deterrent to the
habitual and deliberate viotation of the same by unscrupulous developers and,
thereby, ensure further protection to the buyers of subdivision lots and
condominium units.

KEY PROVISIONS:

* Makes simpler and unequivocal the provision that a certificate of registration
does not vest the owner or dealer of a project the authority to sell without the
necessary license to sell

* Mandates the registration by the developer of a contract to sell under an
installment scheme, the registration expenses of which would be shared
proportionately by the seller and the buyer, on top of the mandate for the seller to
register all deeds of sale of subdivision lots and condominium units that are
already paid in full at his expense

* Mandates, likewise, that the said registration of a contract to sell shall be
cancelted by the proper register of deeds, without the need of a court order, upon
execution by the developer of an affidavit that the cancellation or rescission was
due to defauit on the part of the buyer, further mandating that disputes between
the contracting parties regarding the cancellation of the registration of a contract
to sell shall be adjudicated upon by the Housing and Land Use Regulatory Board
(HLURB)

* Mandates the inclusion in the deed of sale covering a lot or unit subject of a
mortgage a partial release clause or a provision ensuring the immediate release


of the title to the buyer of a lot or unit upon full payment

Requires a developer to complete a project within eighteen (18) months from the
date of issuance of license for said project and should a developer fail to
complete a project due to a fortuitous event, the HLURB is mandated to
determine the reasonable time within which the project must be completed

Gives the HLURB the authority, upon written notice to the developer or through
publication where the developer cannot be located, to declare a subdivision
project abandoned where the developer fails to complete the development of the
said project after 18 months absent a fortuitous event, and the roads in said
abandoned project shall become public in character one (1) year after it was
pronounced abandoned and shall become the property of the local government
unit that has jurisdiction over them

Prohibits the change or alteration of roads, open spaces, infrastructures, facilities
for public use and/or other forms of subdivision or condominium development by
the developer unless permitted by the HLURB and the homeowners association
or condominium corporation gives its written consent or conformity or, in the
absence of such homeowners association or condominium corporation, the
required consent or canformity should come from the majority of the subdivision
lot or condominium unit buyers who have paid at least fifty percent (50%) of the
purchase price

Frees the developer from any liability for the delay or non-issuance of title if he
can show proof that he has property processed and submitted the required
documents to the concemed goverment agencies and the delay is not due to
his fault or where the non-issuance is pursuant to a court order

Mandates the developer to redeem, in the event a mortgage over a lot or unit is
outstanding at the time of the issuance of the title to the buyer, the mortgage or
the corresponding portion thereof immediately from such issuance so that the
title over the fully paid lot or unit may be secured and delivered to the buyer and
the mortgagee is enjoined not to unreasonably refuse release of such title

Modifies the provision regarding the donation of roads and open spaces to local
governments where developers are mandated to donate the roads, alleys and
sidewalks, and open spaces reserved for schools, places of worship, hospitals,
health centers, and barangay centers to the local government with the consent of
the homeowners association upon consultation, and acceptance by said local
government is mandatory

Mandates the donation of other open spaces and areas reserved exclusively for
parks, playgrounds, recreational uses, clubhouses, and other similar facilities and
amenities to the homeowners association or to the condominium corporation with
the consent of the local government unit concemed


* Increases the administrative fine to not more than fifty thousand pesos (P50,000)
far each violation of any of the provision of the decree or of any rule or regulation
thereunder which shall be payable to the board

* Provides that violation of any provision of the law shall be penalized, but gives
emphasis particularly on the following violations: a) failure to complete the
development of the project within the prescribed period, b) failure to deliver the
title, c) failure to refund the purchase price or the installment payment made in
violation of the provision on the non-forfeiture of payment in the event of
desistance by the buyer to further pay due to the failure to complete the
development of the project according to the approved plans and within the
prescribed period, and d) failure to follow construction specifications or poor
workmanship resulting to sub-standard units or to construction defects

* Provides for the following penalties — i) on the 1 offense, a fine of not more than
500,000 or 50% of the total purchase price of the property as stated in the
contract to sell or deed sale, including all the charges imposed by the developer
whichever is higher and/or a four-year imprisonment, ii) 2™ offense, a fine of not
more than R750,000 or 75% of the purchase price of the property, including all
the charges imposed by the developer whichever is higher and/or a seven-year
imprisonment, and, iii) 3° offense, a fine of not more than R1,000,000 or 100 %
of the total purchase price of the property, including all the charges imposed by
the developer whichever is higher and/or a ten-year imprisonment plus
revocation of the business permits and licenses.

* Provides for an additional fine of not less than P 500, 0000 will be charged for
every real estate or condominium unit sold by reason of advertisernents.

RELATED LAW:

* PO 957 - Subdivision and Condominium Buyers’ Protective Decree


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon Cily, Metro Manila
156 Congress
1 Regular Session

Committee on Housing and Urban Development
FOR 2 THE HONORABLE SPEAKER,

THRU 2 THE DEPUTY SECRETARY GENERAL
FOR COMMIITEE AFFAIRS

RE SPOT REPORT ON THE MEETING OF THE COMMITIEE ON HOUSING AND URBAN
DEVELOPMENT HELD ON 09 FEBRUARY 2011 AT CONFERENCE ROOMS 18 2.

DATE 209 FEBRUARY 2011

A. Approval of Committee Report:

1, Substitute Bill fo HB Nos. 215 and 915 (The Subdivision and Condominium Buyers' Protective
Decree Amendments of 2011)

6. Deliberation on Measures:

|. HB Nos, 184, 1161, 3278 (Local Housing Board Act of 2011), created a Technical Working Group:
to refine the substitute bill; and

2. HR Nos. 443 and 568 (Inquiry info the non-performing assets of certain key shelter agencies with
the end view of generating revenues to augment the: meager funding sources for housing)

@.. Major position and view cred

* the Home Mutua! Development Fund, National Home Morigage Finance Corporation,
Home Guaranty Corporation, National Housing Authority, Social Housing Finance
‘Corporation and Housing and Urban Development Coordinating Council expressed full
support fo the proposed resolution

+ the committee is of the observation that most of the key shelter agencies were not able
fo present sufficient. credible, and workable solutions on how to liquefy their non-
performing assets

b. Agreement reached/Decision made
+ for all the key shelter agencies and govemment financing institutions with housing loan

exposure to submit an aging report for each of their respective loan accounts within
fifteen (15) days

Prepared by: Noted by:
Bed
NF. RENDON ATTYS TAGAYUNA, JR.
Committee Secretary Service Dire

ce The Chairperson, Committee on Aules
‘The Secretary General
‘The Executive Director, CAD
‘The Deputy Executive Director, CAD
‘The Services Director, CASS


*

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon

FIFTEENTH CONGRESS
First Regular Session

rouse Bin. 215 _

Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO I

EXPLANATORY NOTE

This re-filed bill is originally HB 5384 that we filed in the 14%
Congress which was extensively discussed and consolidated with twa
other bills with same import by the Committee on Housing and
Urban Development and was approved on Third and Final Reading in
the House of Representatives last December 10, 2008 but the Senate
counterpart bill was not taken up for deliberations at the Senate.

This very important bill seeks to increase the penalty for
violation of Presidential Decree Nine hundred fifty seven (PD 957)
otherwise known as the law regulating the sale of subdivision lots and
condominiums. This law has been out-dated and needs to go in
cadence with the present time.

Complaints against real estate developers who violate PD 957
are mounting. everyday. Offers to sell without appropriate license,
failure to deliver title even after full payment of the estate, failure to
complete project in accordance with the correct specifications or
approved plan and, misleading advertisements are just same of the
reasons among hundreds of cases filed with the HLURB legal
department in violation of PD 957.

Due to the obsolete penalty for violation of PD 957 many land
and condominium developers contravene PD 957 knowing fully well
that what they will pay for the defiance of the law is so small and
thereby make a mockery of our laws.

This bill seeks to increase the penalties to serve as deterrent.

Immediate approval of this bill is earnestly sought.

ATTY. MAGTANGGOL T. GUNIGUNDO ¥


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo._=49

Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO I

AN ACT TO AMEND PRESIDENTIAL DECREE NINE HUNDRED
FIVETY SEVEN (PD 957) TO INCREASE THE PENALTIES FOR
VIOLATION THEREOP

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress Assembled:

SECTION 1. Section 39 of Presidential Decree 957 or the law regulating the sale
of subdivision lots and condominiums, providing penalties for violations thereof,
as amended, is hereby further amended to read as follows:

x KX xX

“Sec. 39. Penalties. Any person who shall violate any of the
provisions of this Decree and/or any rules or regulations that may be
issued pursuant to this Decree shall suffer:

a) On the first offerise, a fine of not more than Five hundred thousand
pesos (Php500,000.00) or 100 percent of the total purchase price of the
properties sold whichever is higher and/or imprisonment of not more than
four (4) years, at the discretion of the court.

b) On the second offense, a fine of Seven hundred thousand pesos
(Php700,000.00) or 100 percent of the total purchase price of the
properties sold whichever is higher and/or imprisonment of nut more than
seven (7) years, at the discretion of the court.

¢) On the third offense, in addition to a fine of not more than One million
pesos (Php 2,000,000.00) or 100 percent of the total purchase price of the
properties sold whichever is higher and/or imprisonment of not more than
ten (10) years, at the discretion of the court, the business permits and
Ticenses, in the case of a business entity or establishment shall be revoked
or cancelled.

If by reason of advertisements in violation of this decree, a real

estate or a condominium unit is sold, an additional fine of not less than
Five hundred thousand (Php 500,000.00) shal} be imposed for every unit
sold.

sll ede


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.

SECTION 2. Repealing Clause ~ All laws, decrees, orders, rules and regulations,
other issuances, or parts thereof inconsistent with the provisions of this act are
hereby repealed or modified accordingly.

SECTION 3. Effectivity Clause - This Act shall take effect fifteen (15) days after

the completion of its publication in the Official Gazette or at least two (2) news
papers of General Circulation.

Approved,



FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES. }

First Regular Session )
HOUSE OF REPRESENTATIVES

House Bill No. g15

Introduced by Representadive Susan A. Yap

EXPLANATORY NOTE

Iti the policy of the State co undertake, in cooperation with the private sector, a
compreheusive and conninuing urban development, Subdivision and condominium projects
continued 1a thive over the last decade brought about by lower iamerest rates and increased
remutances from OFWs, This prompted many of ovr kababayans to buy houses and condominnum,
‘nuts, which correspondingly creased queries and complaints against property developers.

Lack of clarity of laws is one of the problems seea in the real estate matket, Towards this
end, certain remediul tneasures ought to be introduced to the operational provisions of the
Subdivision and Condominium Buyers! Protective Decree (PD 957) 1n order to strengthen and make
the same xesponsive and attuned to the needs of the present times:

During the year 2007, HLURB issued 1,870 Licenses to Sell (LS) for retidemial und non
residential projects or BY% of the target uf 2,100. About 62% or 1,112 of the residential projects
sued LS were simple subdivisions, 262 or 15% open market, 12% of 213 ecouomic, 7% or 77
sodalized, aud 4% oF 77 condominiun projects

“The 1,796 licensed residential projects covered 172,967 lots or house and Jos. Of these, opea
‘market housing, had the biggest share of 38,237 at 34%, followed by economic and socialized housing,
‘with 45,292 and 45,101 units at 26% respectively, condommiurm with 20,631 unite at 12% and sinaple
subdivision with 3,706 units at 2% (2007 HLURB Accomplishment report),

‘This proposed bill clarifies the tole of the developer for the registration of deeds of sale and
contract 10 sell to thove buyers who have already paid the Full purchase proce and those buyers who are
payiug in mstallment, Another provision which secks to put into lnw a common practice, is as regards
the parnal release of the titie in case of buyers undes morgage, to wit: “the deed of sale or coutract (0
sell covering a Jot or unit aubject of a mortgage shall include a partial release clause o¢ a provision
glarantecing the release of the ltle to said lot o¢ unit upon full payment by its buyer (Section 18).”

Because af the advent of condominium projects, this hill updates PD 957 on the inclusion of
condominiums in the cover of ptuhibition of alteration of plans (Section 22) without the approval af
the majority af homeowners msswciation, or in the absence thereof, of majority of enndominium anit
buyers who have already paid at least 50% of the purchase price.

This bill also directs developers to compulsory donation of roads, alleys, aud open spaces
reserved for schools, hospitals, barangay centers, and the like to the local government unit in
jurisdiction.

SUSAN
Representative, 2” Bistticdnt Tarlac



CaerdaureNne

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FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No.__915

Introduced by Representative Susan A. Yap

AN ACT
TO INSTITUTE REFORMS IN THE SUBDIVISION AND CONDOMINIUM BUYERS’
PROTECTIVE DECREE

Be it enacted by the Senate and the House of Repre:
assembled:

atives of the Philippines in Congress

SECTION 1. Short Title. - This Act shall be known as “The Subdivision and Condominium
Buyers’ Protective Decree Amendments of 2010”.

SEC. 2. Declaration of Poly. - It is the policy of the State to underta
private sector, a comprehensive and continuing urban development
remedial reforms ought to be introduced to the operational provisior
Decree in order to strengthen and m
ent times.

c, in cooperation with the
owards this end, certain
of the Subdivision and
¢ the same responsive and

attuned to the needs of the pre

3. Remedial Provisions. - 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 Violations Thereof, otherwise known as The Subdivision and Condominium Buyer's
Protective Dectee, the following provisions are hereby amended:

(@) Paragraph 1, Section 5 of Presidential Decree No. 957 is hereby amended to read as
follows

“SEC. 5. License to Sell. - A CERTIFICATE OF REGISTRATION
DOES NOT AUTHORIZE [S]such Owner or dealer {to whom has been issued a
registration certificate shall not, however, be authorized] to sell any subdivision lot
or condominium unit in the registered project {unless} UNTIL he shall have first
obtained a license to sell the project within two weeks from the registration of such
project.”

(b) Paragraph 1, Section 17 of Presidential Decree No. 957 is hereby amended to read as
follows:

“SEC. 17, Registration. - All [contracts to sell] deeds of sale [and other
similar instruments relative to the sale or conveyance] of [the] subdivision lots and
condominium units, [whether or not the] WHOSE purchase price is ALREADY
paid in fullf shall be registered by the seller ir the Office of the Register of Deeds
of the province or city where the propery is situated. IN CASES OF
INSTALLMENT PAYMENTS, THE CONTRACT TO SELL SHALL
ALSO BE REGISTERED BY THE DEVELOPER WITH THE PROPER
REGISTER OF DEEDS AT THE EXPENSE OF THE BUYER:
PROVIDED, FURTHER, THAT IN CASE OF CANCELLATION OR

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RESCISSION OF SAID CONTRACT TO SELL, SUCH REGISTRATION
OF CONTRACT TO SELL SHALL BE CANCELLED BY THE PROPER
REGISTER OF DEEDS, WITHOUT NEED OF ANY COURT ORDER,
UPON EXECUTION BY THE SELLER OF AN AFFIDAVIT THAT SAID
CONTRACT TO SELL HAS BEEN CANCELLED OR RESCINDED
DUE TO DEFAULT ON THE PART OF THE BUYER, WITHOUT
PREJUDICE TO THE RIGHTS OF THE BUYER UNDER REPUBLIC
ACT NO. 6552, OTHERWISE KNOWN AS THE “MACEDA LAW”:
PROVIDED, FINALLY, THAT THE AUTHORITY SHALL HAVE
JURISDICTION OVER DISPUTES BETWEEN THE BUYER AND THE
SELLER REGARDING THE CANCELLATION OF THE
REGISTRATION OF A CONTRACT TO SELL.”

(c) Section 18 of Presidential Decree No. 957 is hereby amended to read as follows:

“SEC. 18. Mortgages. - No mortgage on any unit or lor shall be made by
the owner or developer without prior written approval of the Authority, Such
not be granted unless it is shown that the proceeds of the mortgage
Joan shall be used for the development of the condominium or subdivision project

and effective measures have be h utilization. ‘The loar

approval sha

provided to ensure su
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 TO SELL COVERING A LOT OR UNIT
SUBJECT OF A MORTGAGE SHALL INCLUDE A PARTIAL RELEASE
CLAUSE OR A PROVISION GUARANTEEING THE RELEASE OF
THE TITLE TO SAID LOT OR UNIT UPON FULL PAYMENT BY ITS
BUYER, The buyer may, at bis option,
directly to the 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 title over the lor or unit promptly after full

his installment for the lot or unit

payment thereof.”

(d) Section 20 of Presidential Decree No. 957 is hereby amended to read as follows

. 20. Time of Completion. - Every owner or developer shall
construct and provide the facilities, improveme ractures and other forms
of development, including water supply, | lighting facilities, AND
DEVELOPMENT OF ROADS, AS PROVIDED FOR [which are offered and
indicated} in che approved sub
prospectus, printed manners, letters or
year] EIGHTEEN (18) MON’

on or condominium plans,
any form of advertisement, within [one
the date of the issuance of the license
for the subdivision or condominium such other period of time as may be
fixed by the Authority|.|: PROVIDED, THAT IN CASES OF FORTUITOUS
E S$, THE AUTHORITY SHALL THEREAFTER DETERMINE
‘THE REASONABLE TIME WITHIN WHICH THE PROJECTS SHALL
BE COMPLETED. “IN THE EVE” THAT THE OWNER OR
DEVELOPER FAILS TO COMPLETE THE DEVELOPMENT OF THE
PROJECT AFTER THE PERIOD OF EIGHTEEN (18) MONTHS
MANDATED ABOVE FOR ITS COMPLETION FROM THE DATE OF
‘THE ISSUANCE OF THE LICENSE FOR THE SUBDIVISION OR
CONDOMINIUM PROJECT, AND UNLESS THE AUTHORITY SETS
ANOTHER TIME FOR COMPLETION OWING TO THE
CIRCUMSTANCES STATED ABOVE, THE AUTHORITY SHALL
DECLARE THE PROJECT ABANDONED AND THE ROADS IN THE
ABANDONED PROJECT SHALL BECOME PUBLIC IN CHARACTER
ONE YEAR FROM THE DECLARATION OF ABANDONMENT OF
THE PROJECT.

brochures,



57 is hereby amended 10 read as follows
No owner or developer shall change or
cilities for public use and/or other
form of subdivision OR CONDOMINIUM development as contained in the
approved subdivision OR CONDOMINIUM plan and/or represented in its
auvertisements, without the permission of the Authority and the written conformity
or consent ofthe duly organized homeowners association OR CONDOMINIUM
CORPORATION, or in the absence of the latter, by the majority of the [lot]
bayers fin the] OF subdivision LOTS OR CONDOMINIUM UNITS WHO
HAVE ALREADY PAID AT LEAST FIFTY PERCENT (50%) OF THE
PURCHASE PRICE.”

(Section 25 of Presidential Decree No. 957 is hereby amended to read as follows:
“SEC. 25. Issuance of Title. - The owner or developer shall deliver the
tide of the lot oF unit to the buyer upon full payment of the lot or unit[,}
PROVIDED, THAT WHERE THE OWNER OR DEVELOPER
PROPERLY PROCESSED AND SUBMITTED THE DOCUMENTS TO
THE GOVERNMENT AGENCIES CONCERNED FOR ISSUANCE OF
TITLE AND THE DELAY IN THE ISSUANCE OF TITLE IS NOT ‘THE
FAULT OF SUCH OWNER OR DEVELOPER OR WHERE THE NON-
ISSUANCE IS PURSUANT TO A COURT ORDER, THE OWNER
AND/OR DEVELOPER SHALL NOT BE HELD LIABLE FOR SUCH
DELAY OR NON-ISSUANCE OF TIT!
the registration of the deed of sale in the Registry of Deeds, shall be collected for
the issuance of such tide. In the event a mortgage over the lot or unit 1s outstanding
at the time of the issuance of the title (0 the buyer, the owner or developer shall
redeem the mortgage or the corresponding portion thereof [within six months)

No fees, except those required for

29 IMMEDIATELY from such issuance in order that the title over any fully paid lot
30 or unit may be secured and delivered to the buyer in accordance herewith. IN
31 SUCH A CASE, THE MORTGAGEE SHALL NOT UNREASONABLY
32 REFUSE RELEASE OF THE TITLE BASED ON THE LOAN VALUE
33 THEREOF”

34

35 (9) Section 27 of Presidential Decree No. 957 is hereby amended to read as follows:
36 “SEC, 27. Other Charges. No owner or developer shall levy upon any lot

37 or unit buyer a fee for an alleged community benefit. Fees to finance services for

38 common comfort, security and s ted only by a properly

39 organized homeowners association OR CONDOMINIUM CORPORATION

40 and only with the consent of a majority of the lot or unit buyers actually residing in

41 the subdivision of condominium project.”

42

3 (h) Section 31 of Presidential Decree No. 957, as amended by Presidential Decree No. 1216,

44 insofar as donation of roads and open spaces to loc
45 to read as follows

overnment ate concemed, is hereby amended

46 ‘SEC. 31. Donation of Roads and Open Spaces to Local Government.
47 ‘The registered owner or developer of the subdivision or condominium project,
48 upon completion of the development of said project [may, at his option, convey by
49 way of donation] PURSUANT TO SECTION 20 HEREOF, SHALL
50 DONATE the toads, ALLEYS AND SIDEWALKS, and open spaces
5 RESERVED FOR SCHOOLS, PLACES OF WORSHIP, HOSPITALS,
52 HEALTH CENTERS, AND BARANGAY CENTERS AS
33 CONTEMPLATED IN PRESIDENTIAL DECREE NO. 1216 WHICH
34 ARE found within the project to the city or municipality wherein the project is

55 located AND IT SHALL BE MANDATORY FOR THE LOCAL.


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GOVERNMENTS TO ACCEPT: PROVIDED, HOWEVER, THAT OPEN
SPACES AND AREAS RESERVED EXCLUSIVELY FOR PARKS,
PLAYGROUNDS, RECREATIONAL USES, CLUBHOUSES, AND
OTHER SIMILAR FACILITIES AND AMENITIES SHALL BE
DONATED TO THE HOMEOWNERS ASSOCIATION OR TO THE
CONDOMINIUM CORPORATION WITH THE CONSENT OF THE
CITY OR MUNICIPALITY CONCERNED. Upon acceptance of the donation
iy the city or municipality OR THE HOMEOWNERS ASSOCIATION OR
CONDOMINIUM concered f the area donated shall thereafter be
converted to any other purpose or purposes [unless after hearing, the proposed
conversion 3 approved by the Authority.|: PROVIDED, FURTHER, THAT
ROADS IN SUBDIVISIONS WHICH HAVE BECOME PUBLIC IN
CHARACTER ONE YEAR AFTER THE DECLARATION OF
ABANDONMENT BY THE AUTHORITY OF THE SUBDIVISION OR
CONDOMINIUM PROJECT WHERE THEY ARE LOCATED SHALL
1PSO FACTO BECOME PROPERTY OF THE LOCAL GOVERNMENT
UNIT THAT HAS JURISDICTION OVER SAID ROADS.

portic

(@ Section 38 of Presidential Decree No nded to read as follows:

C. 38, Administrative
x [ten] Fi

Authority may prescribe and
and pesos (P50,000.00) for
violauons of the provisions of ny rule or regulation thereunder
Fines sh: ble ro the Ay and enforceable thr ch weits of execution
in accordance with the provisions of the Rules of Cour

impose fines not exceed

Decree or

© pa

by amended to read as follows

o shall violate any of the provisions of
and/or any rule or regulation that may be issued pursuant to this
ING, BUT NOT LIMITED TO, FAILURE TO
DEVELOPMENT OF THE PROJECT WETHIN THE
TO SECTION 20 HEREOF,
| PURSUANT TO SEC
x AILURE ‘TO REFUND THE VIOLATION OF SECTION 23
HEREOF, FAILURE TO FOLLOW PUR z

G) Section 39 of Presidential Decree No,

‘SEC.39. Penalties. - Any pe
Decre
Decree, IN
COMPLET

SE OR THE
INSTALLMENT = PAYMENT =MADE _ IN TRUCTION
SPECIFICATIONS OR POOR WORKMANSHIP ULTING TO

SUBSTANDARD UNITS OR TO CON!
upon conviction, be punished by a fine
(P20,000.00) pesos and/or um
that in] SUPFER:

(A) ON THE FIRST OFFENSE, A FINE OF NOT MORE THAN
FIVE HUNDRED THOUSAND PESOS (P500,000.00) OR FIFTY
PERCENT (50%) OF THE TOTAL PURCHASE PRICE OF THE
PROPERTY AS STATED IN THE CONTRACT TO SELL OR DEED OF
SALE, INCLUDING ALL THE CHARGES IMPOSED BY THE
DEVELOPER WHICHEVER IS HIGHER AND/OR IMPRISONMENT
OF NOT MORE THAN FOUR (4) YEARS, AT THE DISCRETION OF
THE COURT

‘B) ON THE SECOND OFFENSE, A FINE OF SEVEN
HUNDRED FIFTY THOUSAND PESOS (P750,000.00) OR SEVENTY-
FIVE PERCENT (75%) OF THE TOTAL PURCHASE PRICE OF THE
PROPERTY AS STATED IN “THE CONTRACT TO SELL OR DEED OF
SALE, INCLUDING ALL THE CHARGES IMPOSED BY THE
DEVELOPER WHICHEVER IS HIGHER AND/OR IMPRISONMENT

RUCTION DEFECTS, shallj

not more than qwenty thousand

ot more

ten (10) year, Provided,

rs


OF NOT MORE THAN SEVEN (7) YEARS, AT THE DISCRETION OF
THE COURT

«(©C) ON THE THIRD OFFENSE, IN ADDITION TO A FINE OF
NOT MORE THAN ONE MILLION PESOS (?1,000,000.00) OR ONE
HUNDRED PERCENT (100%) OF THE TOTAL PURCHASE PRICE OF
THE PROPERTY AS STATED IN THE CONTRACT TO SELL OR
DEED OF SALE, INCLUDING ALL THE CHARGES IMPOSED BY
THE DEVELOPER WHICHEVER IS HIGHER AND/OR
IMPRISONMENT OF NOT MORE THAN TEN (10) YEARS, AT THE
DISCRETION OF THE COURT, THE BUSINESS PERMITS AND
LICENSES, IN THE CASE OF A BUSINESS ENTITY OR
ESTABLISHMENT, SHALL BE REVOKED OR CANCELLED.

“IF BY REASON OF ADVERTISEMENTS IN VIOLATION OF
THIS DECREE, A REAL ESTATE OR A CONDOMINIUM UNIT IS
SOLD, AN ADDITIONAL FINE OF NOT LESS THAN FIVE
HUNDRED THOUSAND PESOS (P500,000.00) SHALL BE IMPOSED
FOR EVERY UNIT SOLD.

SIN [the] case of corporations, partnerships, 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.”

SEC. 4. Repealing Cla All laws, decrees, executive orders, proclamations, rules and
regulations, and other issuances, or part or parts thereof, which are inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.

SEC. 5. Separability Clause, - If, for any reason, any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shall continue to be in force and
effect

SEC. 6. Effetivity Clause. - This Act shall take effect fifteen (15) days after the completion of
its publication in the Oficial Gazerte or in at least fo (2) newspapers of general circulation.

Approved,