Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS ‘
Third Regular Session

5968

House Bill No.

INTRODUCED BY HON. JOSEPH F. VIOLAGO

EXPLANATORY NOTE

It has been the practice of quite a number of buyers of real properties not to immediately
transfer their names in the titles to the said properties. As to the rationale behind this, one can
only surmise what their intentions are.

In order to discourage unscrupulous buyers of land from not revealing their true ownership
of the said property for years past or even decades from date of execution of Deed of Absolute or
Conditional Sale and upon full payment of the purchase price, this bill penalizes a buyer
corresponding to 50% of the purchase price of a real property for his failure to have his name
registered in the new Transfer Certificate of Title within six (6) months from date of execution of
Deed of Sale.

This bill primarily aims to reveal the real ownership of real property in real time in cases
where such property is the subject of an investigation, court litigation or other administrative or
judicial process. The next objective of this bill is to prevent intentional or unintentional omission
in the mandatory inclusion of said real property in the Satement of Assets, Liabilities and
Networth of the buyer, if he is a government employee, for the appropriate year/s concerned.
Another purpose of this bill is to avert double selling of said real property to other unsuspecting
buyers. Finally, the bill would permit the buyer the earliest opportunity to discover if there is any
mortgage, lien or encumbrance constituted over the title to the said real property.

Accordingly, approval of this proposed measure, is earnestly requested.

Lee

JOSEPH F, VIOLAGO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

House BillNo,__ 9968

INTRODUCED BY HON. JOSEPH F. VIOLAGO

“AN ACT IMPOSING A PENALTY CORRESPONDING TO 50% OF THE PURCHASE PRICE OF A REAL
PROPERTY FOR FAILURE OF BUYER TO REGISTER HIS NAME IN THE NEW TRANSFER CERTIFICATE
TITLE WITHIN 6 MONTHS FROM DATE OF EXECUTION OF DEED OF SALE”

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

SECTION 1. No piece of real estate sold to a buyer covered by a deed of sale shall remain
titled in the name of the seller within a period of six months from the date of execution of said
deed of sale.

SECTION 2. Once the buyer and the seller shall have signed the deed of sale over any
piece of real estate, the buyer has six months within which to have the title covered by a Torrens
Certificate of Title (TCT) under his name with the Register of Deeds of the province or city where
the property is located.

SECTION 3. It shall be unlawful for the buyer not to have the real property registered
under his name after the said period of six (6) months unless the same property is sold to any
third person within the said six (6) months period in which case, the six (6) months period is
counted from the date of execution of the second sale, and so on and so forth

SECTION 4, A penalty corresponding to 50% of the purchase price shall be imposed on
the buyer for his failure to have his name registered under a new TCT within the mandatory six (6)
months period and the penalty shall be paid to the Register of Deeds of the province or city where
the property is located.

SECTION 5. Upon the effectivity of this Act, the Land Registration Authority (LRA) shall
promulgate such rules and regulations as may be necessary to implement and enforce the
provisions of this Act.

SECTION 6. Any stipulation in any contract hereafter entered into contrary to the
provisions of this Act shall be null and void.

SECTION 7. Any act or omission in violation of the pertinent rules and regulations of the
LRA shall be punishable by a fine of Ten Thousand Pesos (P10,000.00) and by imprisonment of one
(1) year.

SECTION 8. Alll laws, executive orders, decrees, rules or regulations inconsistent with the


provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 9. This Act shall take effect fifteen (15) days after its complete publication either
in the Offical Gazette or in a newspaper of general circulation in the Philippines.

APPROVED,