Responsibilities & Obligations of Owners/Developers
- Complete the project in accordance with the approved development plan therefore not later than (Indicate target date of completion) and advise buyers in writing of such time frame for development.
- Maintain the common facilities until their turnover is authorized pursuant to PD 1216.
- Register the instrument relative to any sale with the Register of Deeds, whether or not the price is fully paid, within 180 days from execution.
- Deliver the title free from liens and encumbrance to fully paid buyers or if mortgaged redeem and deliver the same within six months from full payment
- Secure clearance prior to any mortgage, alteration of plans, advertisement or change of ownership.
- Pay the real estate tax/assessment on the lot/unit until the year the title is transferred to or actual possession/ occupation is taken by the buyer.
- Refrain from forfeiting payments made by the buyers who suspend amortization after due notice to owner or developer on ground of incomplete development or non-development.
- Submit report showing its extent of project development and changes in corporate officer within sixty days after each semester.
- Observe the prescribed maximum selling price for BP 220 projects (Economic and Socialized Housing)
- Display the registration certificate and this license in a conspicuous place in all offices of the owner and developer.
- Initiate the organization of a home/unit owners.
- Refrain from levying any fee for an alleged community benefit upon the buyers; and
- Ensure the development of Socialized Housing Project presented as compliance to Section 18, RA 7279
Banks and other Financial Institutions
Developmental Loan – All developmental loans from banks and other financial institutions, where the subdivision/condominium is constituted as its collateral, shall be subject of a mortgage clearance from the HLURB pursuant to Section 18 of PD 957, Subdivision and Condominium Buyers Protective Decree, Thus.
“Section 18. Mortgages. – No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the Authority now the HLURB under EO 648. 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 thereof.”