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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATt073 
S.B.NO. __ 
_ 
Se\1ntli' 
(4\ff.;. "f tlj.:;i",.\",. 
'14 
JAN 20 P 6 :23 
IU;('[~I\'ED In :..r:. 
Introduced by Senato,r Maria Lourdes Nancy S. Binay 
EXPLANATORY NOTE 
Pre-selling. of subdivision and condominium units, or selling prior to completion of 
construction, is an effective sales and marketing scheme adopted by real estate developers 
because of considerable discounts offered to prospective buyers. 
Unfortunately, there are real estate developers that fail to complete the subdivision or 
condominium project within the period provided in :the contract There are instances that 
delivery of subdivision Of condominium uoits is delayed by months and in some instances, 
even years. 
Section 20 of Presidential Decree (P.D.) No. 957, or "The Subdivision and Condominium 
Buyers' Protection Decree" provides that the developer of the project shall construct and 
provide the facilities, improvement~ and otlier developments within one (I) year from the 
issuance of the license for the project 
The aforementioned provision however does not expressly provide the period within which 
the owner or developer shall complete the project and deliver the subdivision or 
condominium unit to the buyer. 
It can thus be argued that penalties for violations of P.D . 
957 being penal provisions, which shall be strictly construed against the State, does not apply 
to owners and developers of subdivision and condominium projects that fail to comply with 
its obligation to complete the project and deliver the subdivision or condominium unit to the 
buyers. 
This bill proposes to address the gap in P.D. 957 by expressly providing that owners and 
developers df subdivision of condominium:. projects shall comply with its obligations to 
complete the project and deliver the realty within the period provided in the contract 
In view ofthe foregoing, the passage of this bill is earnestly recommended. 
MARI~~IA.· 
-...IV 
Senator 
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Stnat*, 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
d)H.; •• f til" >"nbr~ 
OF THE PHILIPPINES 
) 
First Regular Ses~ion 
) 
'14 
JAN 20 P 6 :24 
SENATE 
S. B. NO. 
2073 
RECEIVED UV:_--t-
Introduced by Senator Maria Lourdes Nancy S. Binay 
AN ACT FURTHER REGULATING SUBDIVISION LOTS AND CONDOMINIUMS BY 
REQUIRING OWNERS AND DEVELOPERS TO DISCLOSE THE DATE OF 
COMPLETION, DATE OF TURNOVER AND OTHER RELEVANT MILESTONES IN 
THE CONTRACT, AND BY REQUIRING THE OWNERS OR DEVELOPERS TO 
COMPLY WITH ITS OBLIGATION TO COMPLETE AND TURNOVER THE PROJECT 
WITHIN SUCH PERIOD AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. 
Section 20 of Presidential Decree No. 957, otherwise known as The 
Subdivision and Condominium Buyers' Protection Decree, is hereby amended to read as 
follows: 
"SECTION 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, 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 fr6m the date of the issuance of the license 
for the subdivision or condominium project or such other period of time as 
may be fixed by the Authority . 
THE OWNER OR DEVELOPER' SHALL, IN THE CONTRACT, 
PROVIDE A SPECIFIC TIMETABLE FOR THE PROJECT, WHICH 
TIMETABLE 
INCLUDES 
THE" PERIOD 
OF 
CONSTRUCTION, 
EXPECTED DATE OF COMPLETION, EXPECTED DATE OF TURN-
OVER OF THE SUBDIVISION OR CONDOMINIUM UNIT AND 
OTHER RELEVANT MILESTONE DATES AS MAY BE PRESCRIBED 
UNDER ~LEMENTING RULES AND REGULATIONS. 
THE OWNER OR DEVELOPER SHALL STRICTLY COMPLY WITH 
ITS OBLIGATION TO COMPLETE THE PROJECT, AND SHALL 
DELIVER 
AND 
TURN-OVER 
THE 
SUBDIVISION 
OR 
CONDOMINIUM UNIT TO THE BUYER NO LATER THAN THE 
EXPECTED DATE OF COMPLETI0N OR TURN-OVER, AS THE CASE 
MAYBE." 


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SECTION 2. Implementing Rules and Regu~ations. The Housing and Land Use Regulatory 
Board, in coordination with the National Housing Authority, and the Housing and Urban 
Development Coordinating Council, and other relevant government agencies shall issue 
implementing rules and regulations within ninety (90) days from effectivity hereof and such 
other rules and regulations as may be necessa~y to carry out the purpose of this Act. 
SECTION 3. 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 4. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
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