Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
EXPLANATORY NOTE 
In the Republic of the Philippines, it is the policy of the State to afford its 
inhabitants the requirements of decent human settlement and to provide them 
with ample opportunities for improving their quality of life. 
Reports reveal that many real estate subdivision owners, developers, operators, 
and/or sellers have reneged on their representations and obligations to provide 
and maintain properly subdivision roads, drainage, sewerage, water systems, 
lighting systems, and other similar basic requirements, thus endangering the 
health and safety of home and lot buyers. 
Reports of alarming magnitude also show cases of swindling and fraudulent 
manipulations perpetrated by unscrupulous subdivision and condominium 
sellers and operators, such as failure to deliver titles to the buyers or titles free 
from liens and encumbrances, and to pay real estate taxes, and fraudulent sales 
of the same subdivision lots to different innocent purchasers for value. 
These acts not only undermine the land and housing program of the government 
but also defeat the objectives of the New Society, particularly the promotion of 
July 1, 2022 
11:55 am
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peace and order and the enhancement of the economic, social and moral 
condition of the Filipino people. 
This House Bill seeks to render it imperative that the real estate subdivision and 
condominium businesses be closely supervised and regulated, and that penalties 
be imposed on fraudulent practices and manipulations committed in connection 
therewith. 
Earnest approval of this bill is hereby requested. 
MICHAEL L. ROMERO Ph.D. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___
Introduced by Representative Michael L. Romero 
AN ACT 
RATIONALIZING THE SALE OF SUBDIVISION LOTS AND 
CONDOMINIUMS, INCREASING ITS PENALTIES AND 
SANCTIONS FOR VIOLATIONS THEREOF, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives in Congress 
Assembled: 
SECTION 1. DECLARATION OF POLICY – the Department of Human 
Settlements and Urban Development (DHSUD) shall have exclusive jurisdiction 
to regulate the real estate trade and business in accordance with the provisions 
of this Act. 
Administrative Fines. The DHSUD may prescribe and 
impose fines not less than One hundred thousand (P100,000.00) 
pesos for violations of the provisions of this Act or of any rule or 
regulation there under. Fines shall be payable to the Authority and 
enforceable through writs of execution in accordance with the 
provisions of the Rules of Court. 
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Penalties. Any person who shall violate any of the provisions 
of this Decree and/or any rule or regulation that may be issued 
pursuant to this Decree shall, upon conviction, be punished by a 
fine of not less than Sixty thousand (P60,000.00) pesos and/or 
imprisonment of not more than ten (10) years: Provided, That 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 Act and/or the rules and regulations 
promulgated pursuant thereto PD957. 
SECTION 2. IMPLEMENTING RULES AND REGULATIONS - The DHSUD 
may, after such take-over, demand, collect and receive from the buyers the 
installment payments due on the lots, which shall be utilized for the development 
of the subdivision. 
Thereupon, the Authority shall immediately cause to be published a notice of the 
filing of the registration statement at the expense of the applicant-owner or 
dealer, in two newspapers general circulation, one published in English and 
another in Pilipino, once a week for two consecutive weeks, reciting that a 
registration statement for the sale of subdivision lots or condominium units has 
been filed in the National Housing Authority; that the aforesaid registration 
statement, as well as the papers attached thereto, are open to inspection during 
business hours by interested parties, under such regulations as the Authority 
may impose; and that copies thereof shall be furnished to any party upon 
payment of the proper fees. 
The subdivision project of the condominium project shall be deemed registered 
upon completion of the above publication requirement. The fact of such 
registration shall be evidenced by a registration certificate to be issued to the 
applicant-owner or dealer. 
The Authority shall issue the necessary standards, rules and regulations for the 
effective implementation of the provisions of this Act.  


Whenever a subdivision plan duly approved in accordance with Section 4 of 
PD957, together with the corresponding owner's duplicate certificate of title, is 
presented to the Register of Deeds for registration, the Register of Deeds shall 
register the same in accordance with the provisions of the Land Registration Act, 
as amended: Provided, however, that it there is a street, passageway or required 
open space delineated on a complex subdivision plan hereafter approved and as 
defined in this Decree, the Register of Deeds shall annotate on the new certificate 
of title covering the street, passageway or open space, a memorandum to the 
effect that except by way of donation in favor of a city or municipality, no portion 
of any street, passageway, or open space so delineated on the plan shall be closed 
or otherwise disposed of by the registered owner without the requisite approval 
as provided under Section 22 of PD957. 
SECTION 3. LIABILITIES OF CONTROLLERS - Every person who 
directly or indirectly controls any person liable under any provision of this Act 
or of any rule or regulation issued there under shall be liable jointly and severally 
with and to the same extent as such controlled person unless the controlling 
person acted in good faith and did not directly or indirectly induce the act or acts 
constituting the violation or cause of action. 
SECTION 4. REGISTRATION PROTOCOLS - The registered owner of a 
parcel of land who wishes to convert the same into a subdivision project shall 
submit his subdivision plan to the Authority which shall act upon and approve 
the same, upon a finding that the plan complies with the Subdivision Standards' 
and Regulations enforceable at the time the plan is submitted.  
The same procedure shall be followed in the case of a plan for a 
condominium project except that, in addition, said Authority shall act upon and 
approve the plan with respect to the building or buildings included in the 
condominium project in accordance with the National Building Code (R.A. No. 
6541). 


The subdivision plan, as so approved, shall then be submitted to the Director of 
Lands for approval in accordance with the procedure prescribed in Section 44 of 
the Land Registration Act (Act No. 496, as amended by R.A. No. 440): Provided, 
that it case of complex subdivision plans, court approval shall no longer be 
required.  
The condominium plan as likewise so approved, shall be submitted to the 
Register of Deeds of the province or city in which the property lies and the same 
shall be acted upon subject to the conditions and in accordance with the 
procedure prescribed in Section 4 of the Condominium Act (R.A. No. 4726). 
The owner or the real estate dealer interested in the sale of lots or units, 
respectively, in such subdivision project or condominium project shall register 
the project with the Authority by filing therewith a sworn registration statement 
containing the following information: 
(1) Name of the owner; 
(2) The location of the owner's principal business office, and if 
the owner is a non-resident Filipino, the name and address of 
his agent or representative in the Philippines is authorized to 
receive notice; 
(3) The names and addresses of all the directors and officers 
of the business firm, if the owner be a corporation, 
association, trust, or other entity, and of all the partners, if it 
be a partnership; 
(4) The general character of the business actually transacted 
or to be transacted by the owner; and 
(5) A statement of the capitalization of the owner, including 
the authorized and outstanding amounts of its capital stock 
and the proportion thereof which is paid-up. 
The person filing the registration statement shall pay the registration fees 
prescribed therefor by the Authority. 


Thereupon, the Authority shall immediately cause to be published a notice of the 
filing of the registration statement at the expense of the applicant-owner or 
dealer, in two newspapers general circulation, one published in English and 
another in Pilipino, once a week for two consecutive weeks, reciting that a 
registration statement for the sale of subdivision lots or condominium units has 
been filed in the National Housing Authority; that the aforesaid registration 
statement, as well as the papers attached thereto, are open to inspection during 
business hours by interested parties, under such regulations as the Authority 
may impose; and that copies thereof shall be furnished to any party upon 
payment of the proper fees. 
The subdivision project of the condominium project shall be deemed registered 
upon completion of the above publication requirement. The fact of such 
registration shall be evidenced by a registration certificate to be issued to the 
applicant-owner or dealer. 
SECTION 5. PERIODIC REPORTS - The DHSUD shall submit periodic 
reports on its findings and make recommendations on actions to be taken by 
Congress and Senate and the appropriate department, and in order to carry out 
the objectives and mandates of this Act. 
SECTION 6. AUTOMATIC REVIEW - Every three (3) years after the 
effectivity of this Act, an independent review panel composed of experts to be 
appointed by the President shall review the policies and programs in the NHA 
and shall make recommendations, based on its findings, to the President and to 
both Houses of Congress. 
SECTION 7. REPEALING CLAUSE. All laws, executive orders, issuances, 
rules and regulations inconsistent with this Act are hereby amended, repealed 
or modified accordingly. 


SECTION 8. SEPARABILITY CLAUSE.  If, for any reason or reasons, any 
portion or provision of this Act shall be held unconstitutional or invalid, the 
remaining provisions not affected thereby shall continue to be in full force and 
effect. 
SECTION 9. EFFECTIVITY CLAUSE. This Act shall take effect fifteen (15) 
days after its publication in any newspaper of general circulation.  
 
Approved,