Republic of the Philippines
HOUSE OF REPRESENTATIVES

Diliman, Quezon

FIFTEENTH CONGRESS
First Regular Session

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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 two
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 I


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Diliman, Quezon

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILENO. <1

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 THEREOF

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:

a)

b)

)

x x K

“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:

On the first offense, 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.

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 not 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 1,000,000.00) 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
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 (Php 500,000.00) shall be imposed for every unit
sold.


In the case of corporations, partnership, cooperatives, oF
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,