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WHEREAS, 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;
WHEREAS, numerous 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;
WHEREAS, 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;
WHEREAS, 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 peace and order and the enhancement
of the economic, social and moral condition of the Filipino people;
WHEREAS, this state of affairs has rendered 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.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President
of the Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order:
Title I
TITLE AND DEFINITIONS
Sec. 1. Title - This Decree shall
be known as THE SUBDIVISION AND CONDOMINIUM BUYERS' PROTECTIVE DECREE.
Sec. 2. Definition of Terms - When
used in this Decree, the following terms shall, unless the context otherwise
indicates, have the following respective meanings:
a) Person. - "Person"
shall mean a natural or a juridical person. A juridical person refers to a business
firm whether a corporation, partnership, cooperative or associations or a single
proprietorship.
b) Sale or sell. - "Sale"
or "sell" shall include every disposition, or attempt to dispose,
for a valuable consideration, of a subdivision lot, including the building and
other improvements thereof, if any, in a subdivision project or a condominium
unit in a condominium project. "Sale" and "sell" shall also
include a contract to sell, a contract of purchase and sale, an exchange, an
attempt to sell, an option of sale or purchase, a solicitation of a sale, or
an offer to sell, directly or by an agent, or by a circular, letter, advertisement
or otherwise.
A privilege given to a member of
a cooperative, corporation, partnership, or any association and/or the issuance
of a certificate or receipt evidencing or giving the right of participation
in, or right to, any land in consideration of payment of the membership fee
or dues, shall be deemed a sale within the meaning of this definition.
c) Buy and purchase. - The "buy"
and "purchase" shall include any contract to buy, purchase, or otherwise
acquire for a valuable consideration a subdivision lot, including the building
and other improvements, if any, in a subdivision project or a condominium unit
in a condominium project.
d) Subdivision project. - "Subdivision
project" shall mean a tract or a parcel of land registered under Act No.
496 which is partitioned primarily for residential purposes into individual
lots with or without improvements thereon, and offered to the public for sale,
in cash or in installment terms. It shall include all residential, commercial,
industrial and recreational areas as well as open spaces and other community
and public areas in the project.
e) Subdivision lot. - "Subdivision
lot" shall mean any of the lots, whether residential, commercial, industrial,
or recreational, in a subdivision project.
f) Complex subdivision plan. - "Complex
subdivision plan" shall mean a subdivision plan of a registered land wherein
a street, passageway or open space is delineated on the plan.
g) Condominium project. - "Condominium
project" shall mean the entire parcel of real property divided or to be
divided primarily for residential purposes into condominium units, including
all structures thereon.
h) Condominium unit. - "Condominium
unit" shall mean a part of the condominium project intended for any type
of independent use or ownership, including one or more rooms or spaces located
in one or more floors (or part of parts of floors) in a building or buildings
and such accessories as may be appended thereto.
i) Owner. - "Owner" shall
refer to the registered owner of the land subject of a subdivision or a condominium
project.
j) Developer. - "Developer"
shall mean the person who develops or improves the subdivision project or condominium
project for and in behalf of the owner thereof.
k) Dealer. - "Dealer"
shall mean 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.
l) Broker. - "Broker"
shall mean any person who, for commission or other compensation, undertakes
to sell or negotiate the sale of a real estate belonging to another.
m) Salesman. - "Salesman"
shall refer to the person regularly employed by a broker to perform, for and
in his behalf, any or all functions of a real estate broker.
n) Authority. - "Authority"
shall mean the National Housing Authority.
Title II
REGISTRATION AND LICENSE TO SELL
Sec. 3. National Housing Authority
- The National Housing Authority shall have exclusive jurisdiction to regulate
the real estate trade and business in accordance with the provisions of this
Decree.
Sec. 4. Registration of Projects
- 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:
a) Name of the owner;
b) 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;
c) 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;
d) The general character of the business actually transacted or to be transacted
by the owner; and
e) 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 following documents shall be attached to
the registration statement:
a) A copy of the subdivision plan or condominium plan as approved in accordance
with the first and second paragraphs of this section.
b) A copy of any circular, prospectus, brochure, advertisement, letter, or
communication to be used for the public offering of the subdivision lots or
condominium units;
c) In case of a business firm, a balance sheet showing the amount and general
character of its assets and liabilities and a copy of its articles of incorporation
or articles of partnership or association, as the case may be, with all the
amendments thereof and existing by-laws or instruments corresponding thereto.
d) A title to the property which is free from all liens and encumbrances:
Provided, however, that in case any subdivision lot or condominium unit is
mortgaged, it is sufficient if the instrument of mortgage contains a stipulation
that the mortgagee shall release the mortgage on any subdivision lot or condominium
unit as soon as the full purchase price for the same is paid by the buyer.
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.
Sec. 5. License to sell. - Such owner or dealer
to whom has been issued a registration certificate shall not, however, be authorized
to sell any subdivision lot or condominium unit in the registered project unless
he shall have first obtained a license to sell the project within two weeks
from the registration of such project.
The Authority, upon proper application therefor, shall issue to such owner
or dealer of a registered project a license to sell the project if, after an
examination of the registration statement filed by said owner or dealer and
all the pertinent documents attached thereto, he is convinced that the owner
or dealer is of good repute, that his business is financially stable, and that
the proposed sale of the subdivision lots or condominium units to the public
would not be fraudulent.
Sec. 6. Performance Bond. - No license to sell
subdivision lots or condominium units shall be issued by the Authority under
Section 5 of this Decree unless the owner or dealer shall have filed an adequate
performance bond approved by said Authority to guarantee the construction and
maintenance of the roads, gutters, drainage, sewerage, water system, lighting
systems, and full development of the subdivision project or the condominium
project and the compliance by the owner or dealer with the applicable laws and
rules and regulations.
The performance bond shall be executed in favor
of the Republic of the Philippines and shall authorize the Authority to use
the proceeds thereof for the purposes of its undertaking in case of forfeiture
as provided in this Decree.
Sec. 7. Exempt transactions. - A license to sell
and performance bond shall not be required in any of the following transactions:
a) Sale of a subdivision lot resulting from the partition of land among co-owners
and co-heirs.
b) Sale or transfer of a subdivision lot by the original purchaser thereof
and any subsequent sale of the same lot.
c) Sale of a subdivision lot or a condominium unit by or for the account of
a mortgagee in the ordinary course of business when necessary to liquidate
a bona fide debt.
Sec. 8. Suspension of license to sell. - Upon
verified complaint by a buyer of a subdivision lot or a condominium unit in
any interested party, the Authority may, in its discretion, immediately suspend
the owner's or dealer's license to sell pending investigation and hearing
of the case as provided in Section 13 hereof.
The Authority may motu proprio suspend the license
to sell if, in its opinion, any information in the registration statement filed
by the owner or dealer is or has become misleading, incorrect, inadequate or
incomplete or the sale or offering for a sale of the subdivision or condominium
project may work or tend to work a fraud upon prospective buyers.
The suspension order may be lifted if, after
notice and hearing, the Authority is convinced that the registration statement
is accurate or that any deficiency therein has been corrected or supplemented
or that the sale to the public of the subdivision or condominium project will
neither be fraudulent not result in fraud. It shall also be lifted upon dismissal
of the complaint for lack of legal basis.
Until the final entry of an order of suspension,
the suspension of the right to sell the project, though binding upon all persons
notified thereof, shall be deemed confidential unless it shall appear that the
order of suspension has in the meantime been violated.
Sec. 9. Revocation of registration certificate
and license to sell. - The Authority may, motu proprio or upon verified complaint
filed by a buyer of a subdivision lot or condominium unit, revoke the registration
of any subdivision project or condominium project and the license to sell any
subdivision lot or condominium unit in said project by issuing an order to this
effect, with his findings in respect thereto, if upon examination into the affairs
of the owner or dealer during a hearing as provided for in Section 14 hereof,
if shall appear there is satisfactory evidence that the said owner or dealer:
a) Is insolvent; or
b) has violated any of the provisions of this Decree or any applicable rule
or regulation of the Authority, or any undertaking of his/its performance
bond; or
c) Has been or is engaged or is about to engage in fraudulent transactions;
or
d) Has made any misrepresentation in any prospectus, brochure, circular or
other literature about the subdivision project or condominium project that
has been distributed to prospective buyers; or
e) Is of bad business repute; or
f) Does not conduct his business in accordance with law or sound business
principles.
Where the owner or dealer is a partnership or corporation or an unincorporated
association, it shall be sufficient cause for cancellation of its registration
certificate and its license to sell, if any member of such partnership or
any officer or director of such corporation or association has been guilty
of any act or omission which would be cause for refusing or revoking the registration
of an individual dealer, broker or salesman as provided in Section 11 hereof.
Sec. 10. Registers of subdivision lots and condominium
units. - A record of subdivision lots and condominium units shall be kept in
the Authority wherein shall be entered all orders of the Authority affecting
the condition or status thereof. The registers of subdivision lots and condominium
units shall be open to public inspection subject to such reasonable rules as
the Authority may prescribe.
Title III
DEALERS, BROKERS AND SALESMEN
Sec. 11. Registration of dealers,
brokers and salesmen. - No real estate dealer, broker or salesman shall engage
in the business of selling subdivision lots or condominium units unless he has
registered himself with the Authority in accordance with the provisions of this
section.
If the Authority shall find that
the applicant is of good repute and has complied with the applicable rules of
the Authority, including the payment of the prescribed fee, he shall register
such applicant as a dealer, broker or salesman upon filing a bond, or other
security in lieu thereof, in such sum as may be fixed by the Authority conditioned
upon his faithful compliance with the provisions of this Decree: Provided, that
the registration of a salesman shall cease upon the termination of his employment
with a dealer or broker.
Every registration under this section
shall expire on the thirty-first day of December of each year. Renewal of registration
for the succeeding year shall be granted upon written application therefor made
not less than thirty nor more than sixty days before the first day of the ensuing
year and upon payment of the prescribed fee, without the necessity of filing
further statements or information, unless specifically required by the Authority.
All applications filed beyond said period shall be treated as original applications.
The names and addresses of all persons
registered as dealers, brokers, or salesmen shall be recorded in a Register
of Brokers, Dealers and Salesmen kept in the Authority which shall be open to
public inspection.
Sec. 12. Revocation of registration
as dealers, brokers or salesmen. - Registration under the preceding section
may be refused or any registration granted thereunder, revoked by the Authority
if, after reasonable notice and hearing, it shall determine that such applicant
or registrant:
1) Has violated any provision of this Decree or any rule or regulation made
hereunder; or
2) Has made a material false statement in his application for registration;
or
3) Has been guilty of a fraudulent act in connection with any sale of a subdivision
lot or condominium unit; or
4) Has demonstrated his unworthiness to transact the business of dealer, broker,
or salesman, as the case may be.
In case of charges against a salesman, notice
thereof shall also be given the broker or dealer employing such salesman.
Pending hearing of the case, the Authority shall have the power to order the
suspension of the dealer's, broker's, of salesman's registration; provided,
that such order shall state the cause for the suspension
The suspension or revocation of the registration
of a dealer or broker shall carry with it all the suspension or revocation of
the registrations of all his salesmen.
Title IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE
Sec. 13. Hearing. - In the hearing
for determining the existence of any ground or grounds for the suspension and/or
revocation of registration certificate and license to sell as provided in Section
8 and 9 hereof, the following shall be complied with:
a) Notice. - No such hearing shall proceed unless the respondent is furnished
with a copy of the complaint against him or is notified in writing of the
purpose of such hearing.
b) Venue. - The hearing may be held before the officer or officers designated
by the Authority on the date and place specified in the notice.
c) Nature of proceeding. - The proceedings shall be non-litigious and summary
in nature without regard to legal technicalities obtaining in courts of law.
The Rules of court shall not apply in said hearing except by analogy or in
a suppletory character and whenever practicable and convenient.
d) Power incidental to the hearing. - For the purpose of the hearing or other
proceeding under this Decree, the officer or officers designated to hear the
complaint shall have the power to administer oaths, subpoena witnesses, conduct
ocular inspections, take depositions, and require the production of any book,
paper, correspondence, memorandum, or other record which are deemed relevant
or material to the inquiry.
Sec. 14. Contempt.
a) Direct contempt. - The officer or officers designated by the Authority
to hear the complaint may summarily adjudge in direct contempt any person
guilty of misbehavior in the presence of or so near the said hearing officials
as to obstruct or interrupt the proceedings before the same or of refusal
to be sworn or to answer as a witness or to subscribe an affidavit or deposition
when lawfully required to do so. The person found guilty of direct contempt
under this section shall be punished by a fine not exceeding Fifty (P50.00)
Pesos or imprisonment not exceeding five (5) days, or both. a
b) Indirect contempt. - The officer or officers designated to hear the complaint
may also adjudge any person in indirect contempt on grounds and in the manner
prescribed in Rule 71 of the Revised Rules of Court.
Sec. 15. Decision. - The case shall be decided
within thirty (30) days from the time the same is submitted for decision. The
Decision may order the revocation of the registration of the subdivision or
condominium project, the suspension, cancellation, or revocation of the license
to sell and/or forfeiture, in whole or in part, of the performance bond mentioned
in Section 6 hereof. In case forfeiture of the bond is ordered, the Decision
may direct the provincial or city engineer to undertake or cause the construction
of roads and of other requirements for the subdivision or condominium as stipulated
in the bond, chargeable to the amount forfeited. Such decision shall be immediately
executory and shall become final after the lapse of 15 days from the date of
receipt of the Decision.
Sec. 16. Cease and Desist Order. - Whenever it
shall appear to the Authority that any person is engaged or about to engage
in any act or practice which constitutes or will constitute a violation of the
provisions of this Decree, or of any rule or regulation thereunder, it may,
upon due notice and hearing as provided in Section 13 hereof, issue a cease
and desist order to enjoin such act or practices.
Sec. 17. Registration. - All contracts to sell,
deeds of sale and other similar instruments relative to the sale or conveyance
of the subdivision lots and condominium units, whether or not the purchase price
is paid in full, shall be registered by the seller in the Office of the Register
of Deeds of the province or city where the property is situated.
Whenever a subdivision plan duly approved in
accordance with Section 4 hereof, 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 this Decree.
Sec. 18. Mortgages. - No mortgage on any unit
or lot shall be made by the owner or developer without prior written approval
of the Authority. Such approval shall not be granted unless it is shown that
the proceeds of the mortgage loan shall be used for the development of the condominium
or subdivision project and effective measures have been provided to ensure such
utilization. The loan value of each lot or unit covered by the mortgage shall
be determined and the buyer thereof, if any, shall be notified before the release
of the loan. The buyer may, at his option, pay his installment for the lot or
unit directly to the mortgagee who shall apply the payments to the corresponding
mortgage indebtedness secured by the particular lot or unit being paid for,
with a view to enabling said buyer to obtain title over the lot or unit promptly
after full payment thereto;
Sec. 19. Advertisements. - Advertisements that
may be made by the owner or developer through newspaper, radio, television,
leaflets, circulars or any other form about the subdivision or the condominium
or its operations or activities must reflect the real facts and must be presented
in such manner that will not tend to mislead or deceive the public.
The owner or developer shall answerable and liable
for the facilities, improvements, infrastructures or other forms of development
represented or promised in brochures, advertisements and other sales propaganda
disseminated by the owner or developer or his agents and the same shall form
part of the sales warranties enforceable against said owner or developer, jointly
and severally. Failure to comply with these warranties shall also be punishable
in accordance with the penalties provided for in this Decree.
Sec. 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 from 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.
Sec. 21. Sales Prior to Decree. - In cases of
subdivision lots or condominium units sold or disposed of prior to the effectivity
of this Decree, it shall be incumbent upon the owner or developer of the subdivision
or condominium project to complete compliance with his or its obligations as
provided in the preceding section within two years from the date of this Decree
unless otherwise extended by the Authority or unless an adequate performance
bond is filed in accordance with Section 6 hereof.
Failure of the owner or developer to comply with
the obligations under this and the preceding provisions shall constitute a violation
punishable under Sections 38 and 39 of this Decree.
Sec. 22. Alteration of Plans. - No owner or developer
shall change or alter the roads, open spaces, infrastructures, facilities for
public use and/or other form of subdivision development as contained in the
approved subdivision plan and/or represented in its advertisements, without
the permission of the Authority and the written conformity or consent of the
duly organized homeowners association, or in the absence of the latter, by the
majority of the lot buyers in the subdivision.
Sec. 23. Non-Forfeiture of Payments. - No installment
payment made by a buyer in a subdivision or condominium project for the lot
or unit he contracted to buy shall be forfeited in favor of the owner or developer
when the buyer, after due notice to the owner or developer, desists from further
payment due to the failure of the owner or developer to develop the subdivision
or condominium project according to the approved plans and within the time limit
for complying with the same. Such buyer may, at his option, be reimbursed the
total amount paid including amortization interests but excluding delinquency
interests, with interest thereon at the legal rate.
Sec. 24. Failure to pay installments. - The rights
of the buyer in the event of this failure to pay the installments due for reasons
other than the failure of the owner or developer to develop the project shall
be governed by Republic Act No. 6552.
Where the transaction or contract was entered into prior to the effectivity
of Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled
to the corresponding refund based on the installments paid after the effectivity
of the law in the absence of any provision in the contract to the contrary.
Sec. 25. Issuance of Title. - The owner or developer
shall deliver the title of the lot or unit to the buyer upon full payment of
the lot or unit. No fee, except those required for the registration of the deed
of sale in the Registry of Deeds, shall be collected for the issuance of such
title. In the event a mortgage over the lot or unit is outstanding at the time
of the issuance of the title to the buyer, the owner or developer shall redeem
the mortgage or the corresponding portion thereof within six months from such
issuance in order that the title over any fully paid lot or unit may be secured
and delivered to the buyer in accordance herewith.
Sec. 26. Realty Tax. - Real estate tax and assessment
on a lot or unit shall de paid by the owner or developer without recourse to
the buyer for as long as the title has not passed the buyer; Provided, however,
that if the buyer has actually taken possession of and occupied the lot or unit,
he shall be liable to the owner or developer for such tax and assessment effective
the year following such taking of possession and occupancy.
Sec. 27. Other Charges. - No owner or developer
shall levy upon any lot or buyer a fee for an alleged community benefit. Fees
to finance services for common comfort, security and sanitation may be collected
only by a properly organized homeowners association and only with the consent
of a majority of the lot or unit buyers actually residing in the subdivision
or condominium project.
Sec. 28. Access to Public Offices in the Subdivisions.
- No owner or developer shall deny any person free access to any government
office or public establishment located within the subdivision or which may be
reached only by passing through the subdivision.
Sec. 29. Right of Way to Public Road. - The owner
or developer of a subdivision without access to any existing public road or
street must secure a right of way to a public road or street and such right
of way must be developed and maintained according to the requirement of the
government and authorities concerned.
Sec. 30. Organization of Homeowners Association.
- The owner or developer of a subdivision project or condominium project shall
initiate the organization of a homeowners association among the buyers and residents
of the projects for the purpose of promoting and protecting their mutual interest
and assist in their community development.
Sec. 31. Donations of roads and open spaces to
local government. - The registered owner or developer of the subdivision or
condominium project, upon completion of the development of said project may,
at his option, convey by way of donation the roads and open spaces found within
the project to the city or municipality wherein the project is located. Upon
acceptance of the donation by the city or municipality concerned, no portion
of the area donated shall thereafter be converted to any other purpose or purposes
unless after hearing, the proposed conversion is approved by the Authority.
Sec. 32. Phases of Subdivision. - For purposes
of complying with the provisions of this Decree, the owner or developer may
divide the development and sale of the subdivision into phases, each phase to
cover not less than ten hectares. The requirement imposed by this Decree on
the subdivision as a whole shall be deemed imposed on each phase.
Sec. 33. Nullity of waivers. - Any condition,
stipulation, or provision in contract of sale whereby any person waives compliance
with any provision of this Decree or of any rule or regulation issued thereunder
shall be void.
Sec. 34. Visitorial powers. - This Authority,
through its duly authorized representative may, at any time, make an examination
into the business affairs, administration, and condition of any person, corporation,
partnership, cooperative, or association engaged in the business of selling
subdivision lots and condominium units. For this purpose, the official authorized
so to do shall have the authority to examine under oath the directors, officers,
stockholders or members of any corporation, partnership, association, cooperative
or other persons associated or connected with the business and to issue subpoena
or subpoena duces tecum in relation to any investigation that may arise therefrom.
The Authority may also authorize the Provincial,
City or Municipal Engineer, as the case may be, to conduct an ocular inspection
of the project to determine whether the development of said project conforms
to the standards and specifications prescribed by the government.
The books, papers, letters, and other documents
belonging to the person or entities herein mentioned shall be open to inspection
by the Authority or its duly authorized representative.
Sec. 35. Take-over Development. - The Authority,
may take over or cause the development and completion of the subdivision or
condominium project at the expenses of the owner or developer, jointly and severally,
in cases where the owner or developer has refused or failed to develop or complete
the development of the project as provided for in this Decree.
The Authority 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.
Sec. 36. Rules and Regulations. - The Authority
shall issue the necessary standards, rules and regulations for the effective
implementation of the provisions of this Decree. Such standards, rules and regulations
shall take effect immediately after their publication three times a week for
two consecutive weeks in any newspaper of general circulation.
Sec. 37. Deputization of law enforcement agencies.
- The Authority may deputize the Philippine Constabulary or any law enforcement
agency in the execution of its final orders, rulings or decisions.
Sec. 38. Administrative Fines. - The Authority
may prescribe and impose fines not exceeding ten thousand pesos for violations
of the provisions of this Decree or of any rule or regulation thereunder. Fines
shall be payable to the Authority and enforceable through writs of execution
in accordance with the provisions of the Rules of Court.
Sec. 39. 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 more than twenty thousand (P20,000.00) pesos and/or imprisonment of not
more than ten 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 Decree and/or the rules and regulations
promulgated pursuant thereto.
Sec. 40. Liability of controlling persons. -
Every person who directly or indirectly controls any person liable under any
provision of this Decree or of any rule or regulation issued thereunder 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.
Sec. 41. Other remedies. - The rights and remedies
provided in this Decree shall be in addition to any and all other rights and
remedies that may be available under existing laws.
Sec. 42. Repealing clause. - All laws, executive
orders, rules and regulations or part thereof inconsistent with the provisions
of this Decree are hereby repealed or modified accordingly.
Sec. 43. Effectivity. - This Decree shall take
effect upon its approval.
Done in the City of Manila, this 12th day of July, in the year of Our Lord,
nineteen hundred and seventy-six.
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