FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHIWPPmS 
1 
Second Regular Session 
1 
SENATE 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
Expiaawry Note 
Overseas Filipino Workers (OFWs) and retirees are driving up the demand for residential 
property in the Philippines. According to a report From CB Richard Ellis Philippines (CBRE), a 
significant number of OFWs and Filipino retirees from around the world that reside in the 
country or considering residence here account for the robust safes of midrange properties. 
Accordingly, a data from CBRE stated that condominium developers plan to build an 
approximate total of 40,000 units by 201 1. The data showed that 28 residential condominium 
buildings with a total of 18,000 units are expected to rise from 2008 up to 2013 in Makati City 
together with 33 more condominium buildings totaling 11,500 units in the adjacent Fort 
Bonifacio Global City. 
However, the rise of the real estate industry also made the condominium developers susceptible 
to complaints. 
For instance, some complaints forwarded to the Housing and T.and IJse 
Regulatory Board (HLURB) showed that discrepancies in floor area measurement exist in 
condominium projects. 
This bill sccks to protcct smd! condori9ium ai& 5Gycrs fiom oncious ziih’oi iinrcasonabk 
coiitractual provisions imposed by condominium developers, considering that small 
condominium buyers normally do not have resources to have their respective contracts reviewed 
by lawyers. The bill further seeks to protect said buyers from flawed and misleading information 
as regards the floor area measurement of small condominium units. The HLURB is hereby 
tasked to issue inspection certificates whch will guarantee the small condominium unit buyers 
against possible fraud due to incorrect condominium floor area measurements. Developers, 
dealers, brokers, se4ie~s w wwrs we iiikewise held .& 
by rcp~esem&ms 
they have m& in 
the handouts, posters, brochures, prospectus, letters, circulars or any form of advertisement of 
their condominium projects or any units thereof. 
In view ofthe foregoing, the passage ofthis bill is earnestly sought. 
A N ~ O ~ I O  
“SONNY” F. TRILLANES rv 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPlJE3LIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
Id 
SENATE 
htroduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
EXTENDiXG PikGTIiCTibiN Tbi %&EA-& 
CONDbiKEiSUE KE’Z W Y E W  A i D  SOK OTEEK 
RELATED PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippznes in Congress 
assenib!ed: 
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Protection Act of 2009”. 
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SEC. 2. Policy ofthe State.- It is the policy of the State to protect small condominium 
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unit buyers against onerous and/or unreasonable contractual provisions imposed by 
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condominium developers, as well as against flawed and misleading information as regards the 
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floor area measurement of small condominium units. 
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SECTION 1. Title.- This Act shall be known as the “Small Condominium Unit Buyers 
SEC. 3. Definition of Terms.- For purposes of this Act, the following definitions shall 
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apply: 
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1. “Broker” means any person who, for commission or other compensation, undertakes to sell 
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or negotiate the sale of a real estate belonging to another. 
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2. “Condominium Buyer” means a party which acquires, or agrees to acquire, ownership or 
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benefit or usage, in exchange for money or other consideration under a contract of sale. 
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3. “Small Condominium Unit” means a part of the condominium project intended for any type 
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of independent residential use or ownership, including one or more rooms or spaces located 
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in one or more floors (or part or parts of floors) in a building or buildings and such 
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accessories as may be appended thereto. The unit contemplated hereunder shall have an 
actual floor area not exceeding one hundred square meters (100 sqm) in measurement. 
4. “Dealer” means any person directly engaged as principal in the business of buying, selling or 
exchanging real estate whether on a full-time or part-time basis. 
5. “Developer” means the person who develops or improves the condominium project for and in 
behalf of the owner thereof. 
6. “Owner” refers to the registered owner of the land subject of condominium project. 
7. “Project” means the entire parcel of real property divided or to be divided into 
condominiums, including all structures thereon. 
8. “Salesmen” refers to the persons regularly employed by a broker to perform, for and in his 
behalf, any or all functions of a real estate broker. 
SEC. 4. Measurement of the Floor Area andAa‘justment of the Unit Price.- 
1. Upon completion of the project and upon request of the small condominium unit buyer, or 
upon a complaint filed by the said buyer, before the Housing and Land Use Regulatory Board 
(hereinafter referred as HLURB), it shall be the duty of the HLURB to conduct an actual 
measurement of the floor area of the unit bought within fifteen (15) working days from receipt of 
the request or complaint, and thereafter issue an order stating the actual total measurement of the 
floor area of the small condominium unit in question, which order shall be final and executory 
and binding on both the buyer and the developer, dealer, broker, salesmen or owner. 
2. There shall be a proportional adjustment in the price of the small condominium unit subject of 
the contract of sale in case there is found any variance between the actual total measurement of 
the floor area of said unit as duly measured by the HLURB and the total floor area as represented 
by the developer, dealer, broker, salesmen or owner in the contract of sale with the buyer or in 
the handouts, posters, brochures, prospectus, circulars, letters or any other literature intended to 
advertise the project in question or any units thereof. 
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3. It shall be'the duty of the HLURB to ensure that the proportional adjustments in the prices of 
small condominium units being sold to the public, as prescribed in the preceding paragraph, are 
strictly made and enforced. 
SEC. 5. Issuance of Certificate of Inspectioa- Consequent to the first paragraph of the 
preceding Section and upon request of the small condominium unit buyer, the HLURB shall 
issue a Certificate of Inspection, which states that the actual floor area of the unit in question 
meets the measurement of the floor area as represented by the developer, broker, dealer, 
salesmen, or owner. 
SEC. 6. Rights of a Defaulting Buyer.- 
(A) In all transactions or contracts involving the sale or financing of small condominium units on 
installment payments, where the buyer has paid at least two (2) years of installments, and 
defaults in the payment of his succeeding installments, he shall be entitled to the following 
rights: 
1. To pay without additional interest the unpaid installments due within the total grace 
period earned by him, which grace period is equal to one (1) month for every year of 
installment payments made. This right can be exercised by the buyer only once in every 
five (5) years of the life of the contract; 
2. To be refunded of the cash surrender value of his payments on the small condominium 
unit, equal to fifty percent (50%) of his total payments if the contract is cancelled. 
However, if he has paid five (5) years or more, he is entitled to an additional five percent 
(5%) every year but not to exceed ninety percent (90%) of the total payments made, 
Actual cancellation of the contract shall take place only after thirty (30) days from receipt 
by the buyer of the notice of cancellation or demand for rescission and upon full payment 
to the buyer of the cash surrender value. 
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(l3) If the sinall condominium unit buyer has paid less than two (2) years of installments, he shall 
have the right to pay within a grace period of not less than sixty (60) days from the time the 
installment became due. If the buyer fails to pay the installments due at the expiration of the said 
grace period, the buyer shall not be entitled to any refund, and the contract may be cancelled 
after thirty (30) days from his receipt of the notice of cancellation or demand for rescission by a 
notarial act. 
(C) The down payments, deposits or options on the contract shall be included in the computation 
of the total number of installment payments made. 
SEC. 7. Right to Assign or Reinstate Contract.- The buyer shall have the right to sell or 
assign his rights over the small condominium unit to another person or reinstate the contract by 
updating the account during the grace period and before the actual cancellation of the contract. 
The deed of sale or assignment shall be done by notarial act. 
SEC. 8. Right to Advance Payment- The buyer shall have the right to pay in advance 
any installments or the full unpaid balance of the purchase price any time without interest and to 
have such full payment of the purchase price annotated in the certificate of title covering the 
property. 
SEC. 9. Right ofReJund- The buyer shall have the right of refund of the entire amount 
of any installment payments made by him, when the developer fails to complete the 
condominium project within one year from the date of issuance of the license for the 
condominium project or such other period of time as may be approved or fixed by the HLURB. 
SEC. 10. Right to have Contract Registered- Where the purchase price is paid in full, 
the buyer shall have the right to have his deed of sale relative to the sale or conveyance of the 
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small condominium unit, registered by the developer, dealer, broker or salesmen in the Office of 
the Register of Deeds of the province or city where the property is situated. 
Upon the request of the buyer and at his own expense, his contract to sell may likewise be 
registered with the proper register of deeds. However, in case of cancellation or rescission of said 
contract to sell for any reason whatsoever, such registration of contract to sell shall be cancelled 
by the proper register of deeds without need of any court order upon execution by the developer, 
dealer or broker of an affidavit that said contract to sell has been cancelled or rescinded. 
SEC. 11. Additional Protection to Buyers.- (1) Any disclaimer or waiver made by the 
developer, dealer, broker, salesmen or owner in the contract or in the handouts, posters, 
brochures, prospectus, circulars, letters, literature or any other form of advertisement of the 
condominium project in question or any unit thereof, as to the measurement of the floor area of 
any small condominium unit part of said project, shall be null and void. 
(2) Any representation made in the contract or in the handouts, posters, brochures, prospectus, 
circulars, letters, literature or any other form of advertisement, as to the amenities, facilities, 
common spaces and other such spaces and facilities, shall be binding on, and should be complied 
with by, the developer of the condominium project. Any disclaimer or waiver to the contrary 
made by said developer shall be null and void. 
(3) Any stipulation in any contract entered into contrary to the provisions of this Act shall be null 
and void. 
SEC. 12. Penalties- 
1. The HLURB may, motu propio or upon verified complaint filed by a buyer of a small 
condominium unit and after due notice and hearing, revoke the registration of any 
condominium project and the license to sell any small condominium unit in said project by 
issuing an order to this effect, if there is satisfactory evidence that the owner or developer has 
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made any misrepresentation in the contract or in any handouts, posters, prospectus, brochure, 
circulars, letters or other literature about the measurement of the floor area of any of the 
small condominium units for sale in said project or has otherwise violated any of the 
provisions of this Act or any applicable rule or regulation of the HLURB in relation herewith. 
2. The HLURB may, after due notice and hearing, refuse registration or issuance of license of, 
or revoke any registration granted or any license issued to, any broker, dealer or salesmen 
found guilty of fraud or misrepresentation in connection with any sale of a small 
condominium unit, or has misrepresented the measurement of the floor area of any small 
condominium unit for sale in the project, or has otherwise violated any provision of this Act 
or any rule or regulation made hereunder by the HLURB. 
SEC. 13. Implementing Rules and Regulations.- Within ninety (90) days from the 
effectivity of this Act, the HLURB shall promulgate the necessary rules and regulations to 
implement the provisions of this Act. Such rules and regulations shall take effect immediately 
thereafter. 
SEC. 14. Repealing Clause.- Any laws, decrees, ordinances or rules and regulations 
which are inconsistent with or contrary to the provision of this Act is hereby amended or 
repealed. 
SEC. 15. Effectivity- 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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