Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
‘Third Regular Session

House Bill No. 59 64

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

EXPLANATORY NOTE,

It is a dream for every Filipino family to have a decent place to live in, With several real
estate companies offering luxury residential developments down to affordable housing
projects, this dream is no longer far from reality

Likewise, 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, it affords
adequate security to tenants/owners, and more importantly, it costs significantly less than a
house. Thus, condominium living is fast becoming a new way of life for modem Filipino
families

However, buying a real estate or a condominium is not always as convenient as it seems.
News about fraud, abuses and exploitations by real estate and condominium developers and
their agents are not new. Almost everyday, we hear news of Filipino families who dream of
owning a real estate or 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 sellers and/or
developers, The usual practice of developers is to require a prospective buyer to pay a certain
amount as a “reservation fee.” Thereafter, they require such prospective buyer to submit
numerous documents and subject them to various background checks. Failure of a
prospective buyer to submit these requirements and/or pass the background check
automatically leads to forfeiture of the reservation fee, In the end, once a prospective buyer
fails to abide by the process, they lose their hard-earned money through no fault of their own

In addition, news abound that a number of developers have been constructing real estate and
condominium projects right above or near fault lines and they have been concealing this fact
from prospective buyers as a business strategy. This has placed a lot of real estate and
condominium owners/tenants at risk of losing their lives to potentially disastrous
earthquakes; same goes when living within a flood-prone and/or calamity-prone area. Thus, a
ot of owners/tenants are left at a quandary as to how they will resolve the problem,


Considering that itis a policy of the State to undertake, in cooperation with the private sector,
a comprehensive and continuing urban development, existing laws must be amended to
provide additional protection to buyers and owners of real estate and condominium units,

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

SCOTT DAVIE!
‘epresentative
‘Third District, Province of Masbate

. LANETE, M.D)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

5964

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 REAL
ESTATE AND CONDOMINIUM PROJECTS TO THE BUYERS, AMENDING FOR
THE PURPOSE PD 957 AND FOR OTHER PURPOSES

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 Real Estate and Condominium
Buyers’ Protective Decree of 2015,”

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 to the buyers of real
estate and condominium units,

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

The list of documentary requirements shall be acknowledged by the buyer by affixing 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 real estate or condominium unit

No deposit/reservation fee/down payment or whatever fee of similar nature 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 with information, certified by the concerned governmental
agency, about the location of nearby fault lines and their exact distance from the real estate ot
condominium project, as well as whether said real estate or condominium is situated in a
flood and/or calamity-prone area.


Sec. 5, Copy/ies 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 real estate or 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

Sec, 6. Penalties. Any owner and/or developer of real estate and condominium projects who
neglect or fail to abide by the provisions of this Act shall be punished with a fine of not less
that Five Hundred Thousand Pesos (Php500,000,00) 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 7. 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 to fully implement the objectives and purposes of this Act within one (1) year from
the approval hereof,

See, 8, Separability Clause. - If any part or provision of this Act shall be held
‘unconstitutional or invalid, other provisions, which are not affected thereby, shall continue to
be in full force and effect

Sec. 9. Repealing Clause. ~ All laws, issuances or parts thereof inconsistent with this Act are
hereby repealed or modified accordingly.

Sec. 10. Effectivity: ~ This Act shall take effect fifteen (15) days after its publication in the
Official Gazeute or in at least wo (2) newspapers of general circulation

Approved.