FIFTEENTH CONGRESS OF THE REPUBLIC) . 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
10 JUl -7 P4:54 
7 57RECEWED BV' .+-.~, 
I. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Numerous cases of misrepresentation of subdivision owners, developers 
and realtors have been made against unsuspecting buyers who have been 
continuously victimized. Among the cases. of misrepresentations are the 
following: 
(1) When parcels of land are being sold even if there is still no individual 
title available; 
(2) When the subdivision lot is already being sold and it is still not ready 
for occupancy due to lack of proVisions for water, light and telephone facilities, 
the roads are not yet cementedlasphalted or there are no proper drainages in 
place; 
(3) When a real estate mortgage has been constituted over a piece of 
property absent any knowledge of the buyer who pays the entire amount but is 
not issued the title over the said property; 
Apart from these misrepresentations, the buyers on installment have also 
to deal with contracts that create the undue advantages in favor of the vendors. 
Examples of these unfair stipulations are the following: 
(1) That the liability for real estate taxes are immediately transferred to 
the buyer upon the execution of the contract; 
(2) That the contract price and interest rates shall be adjusted in any 
event of devaluation of Philippine currency; and 
(3) That the seller may refuse to allow the buyer to take immediate 
possession ofthe property purchased unless all installments are paid. 
Although R.A. No. 6552 otherwise known as the "Realty Installment Buyer 
Protection Act" is in effect, such law does not explicitly address many of the 
problems currently being encountered by the unsuspecting buyers. This bill 
seeks to plug these loopholes. Hence, the immediate enactment of this measure 
is earnestly requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 757 
10 JUL-7 P4:54' 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
, 
AN ACT 
TO PROVIDE ADDITIONAL PROTECTION TO BUYERS OF REAL ESTATE 
ON INSTALLMENT PAYMENTS BY REQUIRING SUBDIVISION OR REAL 
ESTATE OWNERS TO HAVE AN INDIVIDUAL TITLE ON EVERY LOT 
AVAILABLE 
FIRST 
BEFORE 
OFFERING 
THE 
SAME 
FOR 
SALE, 
PROHIBITING ANY MORTGAGE, LIEN OR ENCUMBRANCE ON THE SAME, 
MAKING THE ANNOTATION ON THE TITLE OF THE CONTRACT TO SELL 
OR SALE MANDATORY, MAKING IT COMPULSORY FOR THE EXECUTION 
OF A DEED OF ABSOLUTE SALE AND THE DELIVERY OF THE TITLE TO 
THE BUYER UPON COMPLETION OF INSTALLMENT PAYMENTS, AND 
PROVIDING 
OTHER 
PROTECTIVE 
MEASURES, 
INCLUDING 
THE 
IMPOSITION OF PENALTY FOR VIOLATION THEREOF 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. No piece of real estate as contemplated in Republic Act No. 
6552, otherwise known as "Realty Installment Buyer Protection Act" shall be 
offered for sale on installment payment unless it is covered by a separate and 
individual Torrens Certificate of Title to constitute a real estate mortgage or any 
lien or encumbrances. 
. 
. 
SEC. 2. It shall be unlawful for any subdivision or individual owner of any 
piece of real estate covered by any separate or individual Torrens Certificate of 
Title to constitute a real estate mortgage or any lien or encumbrance over the 
said title whenever the same has already been sold to any third person in 
installment payments. 
SEC. 3. Once the buyer and seller shall have signed the contract to sell or 
contract of sale over any piece of real estate on installment payments covered by 
a separate or individual Torrens Certificate of Title, the said contract shall be 
immediately annotated by the seller at the back of the said title on file with the 
Register of Deeds of the provinces or city where the property is located: 
Provided, That if the seller should neglect or refuse to do his obligation herein 
stated, the buyer shall have the absolute right to have his contract annotated 
upon mere presentation of his contract to sell o,r contract of sale. 
SEC. 4. Payment of taxes shall remain to be the obligation of the seller of 
real estate on installment payments notwithstanding the execution of the contract 
to sell or contract of sale, but such obligation. shall be transferred to the buyer 
from the moment the latter shall have started taking physical possession of the 
real estate purchased on installment payments, or the title is transferred to the 
buyer. 


SEC. 5. Upon the completion of the installment payments on any piece of 
real estate, the seller, without the necessity of demand shall within thirty (30) 
days therefrom, shall execute in favor of the buyer, his heirs, assigns and 
successors-in-interest, an absolute deed of sale and deliver the same to the 
latter together with the owner's duplicate certificate of title over the real estate 
purchased. 
SEC. 6. No subdivision lot shall be offered €or sale to the public unless: 
(1) all the water, electrical and telephone systems with provisions for the 
installation of individual water and electric meters and telephone cable lines have 
been installed; (2) a good drainage system that is duly approved by the municipal 
or city engineer as the case may be, and especially the roads within the 
subdivision, have either been fully cemented or asphalted with the measurement 
of at least six inches (6") thick; and (3) said ~oads have been donated to the 
municipality or city where the subdivision lots are located which shall be obliged 
to immediately accept the said donation and from then to assume the 
responsibility of maintaining and repairing the same. 
SEC. 7. Any buyer of real estate on installment payments as contemplated 
in this Act shall have the right to take possession of the property purchased upon 
the execution of the appropriate contract to sell or contract of sale and the 
application for a building permit solely signed by the buyer shall suffice for the 
issuance of a building permit to construct any improvement on the property 
purchased. 
.• 
SEC. 8. The contract price and interest rates stipulated in the contract to 
sell or contract of sale of real estate on installment payment shall remain 
constant and unaffected notwithstanding any artificial depreciation or devaluation 
of the Philippine currency. 
SEC. 9. Upon the effectivity of this Act, the Housing Land Use Regulatory 
Board (MLURB) shall promulgate such rules and regulations as may be 
necessary to implement and enforce the provisions of this Act. 
SEC. 10. Any stipulation in any contract hereafter entered into contrary to 
the provisions of this Act shall be null and void. 
SEC. 11. Any act or omission in violation .of this Act or any of the pertinent 
rules and regulations of the HLURB shall be punishable by a fine of Ten 
thousand pesos (P1 0,000.00) and by imprisonment of one (1) year. 
SEC. 12. All laws, executive orders, decrees, rules or regulations 
inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 13. This Act shall take effect upon its approval. 
Approved,