FAQs

Real Estate Brokers and Salesmen (2)

Revocation of Registration as Brokers and Salesmen

Registration may be refused or any registration granted be revoked by the Board, if, after reasonable notice and hearing, it shall determine that such applicant or registrant:

  1. Has violated any provisions of Section 11 of PD 957 or any rules or regulations being implemented;
  2. Has made a material false statement in his application for registration;
  3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or condominium unit;
  4. Has demonstrated his unworthiness, to transact the business of broker or salesman, as the case may be.

In case of charges against salesman, notice thereof shall also be given the broker employing such salesman.

Pending hearing of the case, the Board shall have the power to order the suspension of broker’s or salesman’s registration provided that such order shall state the cause for the suspension.

The suspension or revocation of the registration of a broker shall carry with it all the suspension or revocation of the registrations of all his salesmen.

In cases, the licensed brokers or salesmen decided to voluntary cease from further engaging in the real estate business, the broker or salesman shall surrender his Certificate of Registration to the Board and his/her name shall be cancelled from the Books of Register.

Voluntary Cancellation of Registration

In case the broker or salesman decided to discontinue his practice as a real estate agent, the broker or salesman may apply in writing with the Board for the temporary cancellation of his registration provided that said broker or salesman must renew his/her license for the current year. If this was undertaken, and the broker or salesman decided to continue his/her practice after a period of time, shall not be penalized by the Board and/or the DTI for his/her non-renewal of registration.

Urban Land Reform and Areas for Priority Development (9)

May apartment dwellers invoke the “right of first refusal”?

No. The law is explicit that it applies only to urban land.

How do we know whether or not the land that we own or the land that we lease is within an APD or ULRZ?

HLURB prepared books of detailed maps and land use plans for 245 APD sites declared under Proclamation 1967 and 2284 and has condensed this to a Locational Reference Handbook which is available to the public. This handbook presents the physical location of the sites though maps in relation to their immediate vicinity and provides the precise location and complete boundary description. If necessary, HLURB also issues a certification whether or not a piece of property is within or outside of an APD.

Did the Urban Development and Housing Act of 1992 (Republic Act No. 7279) repeal the Urban Land Reform Law?

No. UDHA is actually more expansive than the ULR law.

As to Coverage:

PD 1517: Limited to areas proclaimed
RA 7279: All lands in urban and urbanizable areas, including existing areas for priority development sites, and in other areas that may be identified by the local government units as suitable for socialized housing.

As to Thrust

PD 1517: Land tenancy protected, with land purchase and expropriation only as an incident thereof
RA 7279 : Socialized Housing as primary strategy for providing shelter to put an end to tenancy status

As to Beneficiaries:

PD 1517: Legitimate tenants
RA 7279: Underprivileged and homeless citizen, must not own any real property, not a professional squatter or a member of squatting syndicates;–must be actual occupants to avail of right of first refusal if property is government-owned or acquired.

What is the Urban Land Reform Law?

Presidential Decree No. 1517 issued on June 11, 1978 is what is known as the Urban Land Reform Law. It was a piece of legislation that instituted the Urban Land Reform Program of the government. Briefly, this program aims to rationalize — with due process and through equitable means — the existing pattern of land use and ownership in urban and urbanizable areas. As such, it involves the imposition of certain limitations on the use by the owner of his property.

Is urban land reform the same as agrarian reform?

No.

Agrarian reform (AR) involves the diffusion of land ownership through the imposition of retention limits for owners of large tracts of land. It is mandatory in the sense that the landowner cannot refuse not to sell the agricultural land in excess of the retention limit to the tenants who till the same.

In urban land reform (ULR), on the other hand, a landowner cannot ordinarily be compelled to sell the land to the tenant. It is only when the land is expropriated that he or she is forced to sell, but only after due process. In the event, however, that a landowner voluntarily decides to sell the property, the tenant has a pre-emptive right to buy the property or the “right of first refusal” before it can be legally sold to another. The law compels him merely to offer it first to the tenant.

In AR, all agricultural lands are covered although exemptions may be applied for. On the other hand, ULR applies only to selected parcels of urban land.

Real Estate Management (4)

Who will pay for the electric consumption for street lights before the same are donated to the LGU?

The new IRR of PD 957 and BP 220 provide for the proportionate sharing by the subdivision owner and subdivision buyers.

What can be done when a buyer found out that the size of the lot in the Deed of Restrictions and Contract to Sell that he originally signed did not match with what is indicated in the title?

If the sale is on a per square meter basis and the area turns out to be smaller, the buyer is entitled to a reduction of the price. In the same way the area turns out to be bigger, the buyer should pay for the increase in area.

In other case, the buyer may have opt to rescind the contract if he would not have bought the property had he known of the difference in the area

Subdivision/Condominium Projects (5)

Can an owner/developer of a subdivision project impose a height limitation on the house to be constructed therein?

Yes, in order to preserve the style and uniformity of project but height limitation should not be contrary to the approved zoning ordinance the same will be deemed inoperative.

Can a Developer sell the subdivision’s open space?

No because subdivision’s open space is beyond the commerce of man.

Can a chapel be constructed in open space reserved for parks and playgrounds?

No. Open space reserved for parks and playground is non-buildable and chapel as well as other subdivision’s facilities may only be constructed in open space not reserved for parks and playground.

What is a condominium project?

Condominium project refers to the entire parcel of real property divided or to be divided into condominium units for residential, commercial, industrial or other purposes, including the structure thereon.

What is a subdivision project?

Subdivision project refers to a parcel of land registered under Act No. 496 which is partitioned into individual lots for residential, commercial, industrial or other purposes with or without improvements thereon, and offered for sale to the public.

Board Resolutions (10)

What is the purpose of allowing HGC bonds as compliance to the 20% requirement?

The purpose of the 20% requirement for socialized housing under RA 7279 is to encourage developers and investors to enter into socialized housing. Hence, the purchase of socialized housing bonds, such as HGC bonds is recognized as a mode of compliance to this requirement, the same as being germane to the purpose and scope of the term joint ventures as allowed by the said law.

Can you tell us what are these new issuances by HLURB that will encourage developers and investors into housing?

First, we have Resolution No. 737, which authorizes developers to enter into joint venture projects as a mode on compliance to the balanced housing development provision of RA 7279, which requires that all subdivisions must have a socialized housing component equivalent to 20% on the projects cost or project area;

Second is Resolution No. 739, which approved the purchase of HGC special series bonds as a mode of compliance to the 20% socialized housing requirements under RA 7279;

Third is resolution No. 725-A, which deleted the DAR Exemption Clearance as a requirement for the issuance of the Development Permit and License to Sell for subdivision on and condominium projects;

Fourth are Resolution Nos. 748 and 750, which removes the DAR Conversion Clearance as a pre-condition but as a post requirement for the issuance of a License to Sell for residential subdivisions and farmlots, respectively; and

Fifth is Resolution No. 756, which removes the Building Permit as a prior requirement for the License to Sell and Certificate of Registration and make it as a post requirement instead.

All these resolutions, while not removing the protection of buyers, will enable developers and investors to actively participate on the housing program of the government.

What is the effect of the relaxation of the requirements on the license to sell?

It is hoped that by the relaxation of the requirements for application of the license to sell, it will encourage developers to develop more housing projects and investors to enter into the real estate business, thus more housing for people.

What are the new ways which the HLURB has helped the government in its housing program?

It has issued several resolutions which liberalized or relaxes some requirements for developers in the application for a license to sell of a subdivision or condominium project.

What is the reason of making the Building Permit merely as a post requirement to the License to Sell?

It has been brought to the attention of the Board that due to the continued malaise on the housing industry, the requirement of the Building Permit for application of the License to Sell has become impractical and expensive because it will prevent the developers to conduct preliminary selling activities to test the market viability of their projects, which is a test required by financial institutions prior to approval of any developmental loans. As a good business practice, the developers usually conduct these preliminary test before they fully invest on the condominium. If the market testing will show that the project is not viable, they can stop or limit the project. But by already paying the expensive Building Permit, the developers will be forced to continue the whole project even if later, market studies would show that the project is not viable or marketable. This will result to loss of funds which might be invested to more viable condominiums.

Erratum: The word “subdivision project” previously mentioned on the above paragraph was changed to “condominium”.

Board’s Jurisdiction (2)

Does the Board have jurisdiction over ejectment cases?

As a rule, jurisdiction over ejectment cases rests with the regular courts , particularly the metropolitan and municipal trial courts.

However, in one case, the Supreme Court has ruled that it is the Housing and Land Use Regulatory Board (HLURB) that has such jurisdiction , where the controversy involves the determination of rights and obligations between the seller and buyer of real estate in a subdivision or condominium project;

Does the Board have jurisdiction over ejectment cases?

As a rule, jurisdiction over ejectment cases rests with the regular courts , particularly the metropolitan and municipal trial courts.

However, in one case, the Supreme Court has ruled that it is the Housing and Land Use Regulatory Board (HLURB) that has such jurisdiction , where the controversy involves the determination of rights and obligations between the seller and buyer of real estate in a subdivision or condominium project;

Certificate of Registration/License To Sell (4)

Are owners/developers of the columbariums required to secure License to Sell?

Yes, Construction and/or development of columbariums and crematoriums, including the sale thereof to the public is subject to HLURB Rules and Regulations for Memorial Parks and Cementeries. Thereof, the owner/developer thereof is required to secure the necessary license to sell for selling the columbarium units to the public.

Is pre-selling allowed?

No. Pre-selling which is disposing for valuable consideration of subdivision lots or condominium units I a subdivision or condominium project to the public prior to the issuance of Certificate of Registration and License to Sell is a violation of PD 957.

What is the liability of the subdivision owner if he sold subdivision lots without license to sell? What is the effect of the sale?

The sale is valid but the subdivision owner is liable to pay administrative fine for unauthorized selling.

While, the buyer may opt to rescind the contract and demand for a refund or proceed with the sale.

Where can a prospective buyer check whether a subdivision project has a Certificate of Registration and License to Sell ?

He can check it with the Regional Office Of the HLURB which has jurisdiction of the place where the project is located.

Implementing Rules and Regulations of PD 957 and BP 220 (4)

Where can 20% compliance to balanced housing requirement be located?

The 20% socialized housing requirement can be located within the same city or municipality as the main project. In cases where this is not feasible, the compliance project may be located in any city or municipality within the same region or in any city or municipality within the regions adjacent to it.

Are the revised IRRs for PD 957 and BP 220 already in effect?

The revised IRRs which were approved per Board Resolutions No. 699 and 700, Series of 2001 took effect last 06 May 2002. Amendments approved per Board Resolution No. 725, Series of 2002 took effect on 26 July 2002.

What are the latest price ceilings?

The current price ceilings as set by the Housing and Urban Development Coordinating Council (HUDCC) are as follows:

Socialized housing = PHP 450,000.00* and below ;
Low Cost
– Level 1 = above PHP 450,000.00* to PHP 1,700,000.00** (BP 220 standard);
– Level 2 = above PHP 1,700,000.00 to PHP 3,000,000.00 (PD 957 standard);
Medium cost = PHP 3,000,000.00*** up to PHP 4,000,000.00;
* per HUDCC MC No. 1, Feb. 19, 2014
** per HUDCC MC No. 2, Jun. 8, 2015
*** per HUDCC MC No. 4, Sep. 27, 2006
Open Housing = above PHP 4,000,000.00

On the Design Standards and Guidelines, What are the latest minimum design standards ?

Minimum lot area

Single Detached – 72 sqm for economic housing; 64 sqm for socialized housing
Duplex/Single Attached – 54 sqm for economic housing; 48 sqm for socialized housing
Rowhouse – 36 sqm for economic housing; 28 sqm for socialized housing (per BR 824, s. 2008)

Minimum floor area

22 sqm for economic housing; 18 sqm for socialized housing

Under PD 957

Minimum lot area

Single Detached – 120 sqm for open market housing; 100 sqm for medium cost housing
Duplex/Single Attached – 96 sqm for open market housing; 80 sqm for medium cost housing
Rowhouse – 60 sqm for open market housing; 50 sqm for medium cost housing

Minimum floor area

42 sqm for open market housing; 30 sqm for medium cost housing

Urban Development and Housing Act (RA 7279) (1)

What we don’t do (1)

We Don’t Do the ff:

We do not do the following:        For assistance you may approach:
Ejectment Cases Civil Courts
Right of Way Civil Courts
Develop Subdivisions Developer/Owner of the Project
Sell Subdivisions Developer/Owner of the Project
Extend Loans Financial Institutions ie. Pag-IBIG, SHFC, SSS, GSIS, Banks
Cases Between Neighbors  Civil Courts