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JECEINED
10 2020

Republic of the Philippines
House of Representatives

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.: _°548

Introduced By HONORABLE LUISA LLOREN CUARESMA
Lone District of the Province of Nueva Vizcaya

AN ACT MANDATING THE FULL TRANSPARENCY AND DISCLOSURE
OF RELEVANT FACTS AND ALL REQUIREMENTS BY THE OWNERS
AND/OR DEVELOPERS OF CONDOMINIUM PROJECTS TO THE
BUYERS AMENDING FOR THE PURPOSE PD 957 AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

Many Overseas Filipino Workers (OFW) families in the urban areas today are
choosing to live in the condo units. This is mainly because a condominium is the
trend of the time, where you can transfer and own outright thus, the modern way of
living for Filipinos.

However, buying a condominium is not always as convenient as oftenly said. News
about fraud, abuses and exploitations and even misrepresentation has become
persistent, in fact, now a common issue being experienced by buyers. Almost
everyday, we hear news of Filipino families who aspire of owning a condominium
unit ending up not being able to make their dream a reality because they become
victims of fraud, abuses exploitations, and misrepresentation of condominium sellers
and/or developers with so much hidden charges or ghost fees.



Considering that it is a policy of the State to undertake, in cooperation with the
private sector, a comprehensive and continuing urban development, the present
Condominium Buyer’s Protective Decree of 1976 must be amended to provide
additional protection to buyers of condominium units.

‘The amendment of the present law will correct and resolve the above problems being
practiced by some unscrupulous owners and/or developers and ensure further the
protection of buyers of condominium units. Hence, the passage of this bill is urgently
sought.

7


Republic of the Philippines
House of Representatives

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.: _©548

Introduced By HONORABLE LUISA LLOREN CUARESMA
Lone District - Province of Nueva Vizcaya

AN ACT MANDATING THE FULL TRANSPARENCY AND DISCLOSURE
OF RELEVANT FACTS AND ALL REQUIREMENTS BY THE OWNERS
AND/OR DEVELOPERS OF 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.

Section1. Short Title. This Act shall be known as “The Condominium Buyers’
Protection Law of 2020”.

Section 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 condominium units.

Section 3. Full Transparency and Disclosure of All Documentary Requirements. It
shall be mandatory for the owners and/or developers to provide a complete 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 condominium unit.

No deposit/reservation fee/down payment shall be paid by the buyer until all
documentary requirements are processed and accepted by the developer as valid and
complete.

Section 4. Copy of by-laws and Master Deed. It shall be mandatory for the owners
and/or developers to provide the buyer a copy of the by-laws and the master deed.
Should a hard copy not be feasible, the owners and /or developers shall direct the
buyer to their website where the by-laws and master deed are posted.

Section 5. Condominium Corporation Board. It shall be for the owners and/or
developers to provide the buyer a list of the names of the current board of the
Condominium Corporation. Should a hard copy not be feasible, the owners and/or
developers shall direct the buyer to their website where such list is disclosed.

Section 6. Copy/ies of the Architectural and/or Engineering Plans. \t shall be
mandatory for the owners and/or developers to provide the buyer copies of the
architectural and/or engineering plans of the condominium project. Should a hard
copy not be feasible, the owners and/or developers shall direct the buyer to their
website where such plans posted.

Section 7. Certified True Copy of Land Title. It shall be mandatory for the owners
and/or developers to provide the buyer a certified true copy of the title of the
condominium project with the annotation any liens on the property, if any. The cost
for the obtaining a certified true copy shall be borne by the owners and/or developers.

Section 8. Signature on Ads and Promotional Materials. The buyer may ask the
broker and/or company officials to sign any official ad or promotional materials
issued for the condominium project enumerating all the required fees and charges.

Section 9. Penalties. Any owner and/or developer of condominium projects who
neglect or fail to establish and maintain green spaces in their projects 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.


Section 10. 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.

Section 11. 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.

Section 12. Repealing Clause — All laws, issuances or parts thereof inconsistent with
this Act are hereby repealed or modified accordingly.

Section 13. Bffectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,