REPUBLIC ACT 2726 "The CONDOMINIUM ACT"
 
SECTION 1. The short title of this Act shall be "The Condominium Act".  
 
SECTION 2. A Condominium is an interest in real property consisting of a separate  interest in a unit residential, industrial or commercial building or in an industrial and undivided interest in common, directly and indirectly, in the land, or the appurtenant interest of their respective units in the common areas.
The real right in condominium may be ownership or any interest in real property recognized by law, on property in the Civil Code and other pertinent laws." 
             SECTION 3. As used in this Act, unless the context otherwise requires:
a) "Condominium" means a condominium as defined in the next preceding section.  
b) "Unit" means 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 parts of floors) in a building or buildings and such accessories as may be appended thereto; provided, that in the case of an industrial estate wherein the condominium project consists of several buildings, plants and factories may, by themselves, be considered separately as individual units as herein defined."  
c) "Project" means the entire parcel of real property divided or to be divided in condominiums, including all structures thereon. 
d) "Industrial Estate or Estate" means a certain tract of land which is subdivided and developed primarily for industrial purposes and which usually includes provisions for basic infrastructure facilities and common services such as roads, water, electricity, drainage and waste disposal system. 
e) "Common areas" means the entire project except all units separately granted or held or reserved.  
f) "To divide" real property means to divide the ownership thereof or other interests therein by conveying one or more condominium therein but less than the whole thereof.  
              SECTION 4. The provisions of this Act shall apply to property divided or to be divided into condominium only if there shall be recorded in the Register of Deeds of the province or city in which the property lies, and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts, an enabling or master deed which shall contain, among others, the following:  
a) Description of the land on which the building or buildings and improvements are to be located;  
b) Description of the building or buildings, stating the number of storeys and basement, the number of units and their accessories, if any;  
c) Description of the common areas and facilities;  
d) A statement of the exact nature of the interest acquired or to be acquired by the purchased in the separate units and the common areas of the condominium projects. Where title to or to appurtenant interests in the common areas is to be held by a condominium corporation, a statement to this effect shall be included;  
e) A certificate of the registered owner of the property, if he is other than those executing the master deed, as well as of all registered holders of any lien or encumbrances on the property, that they consent to the registration of the deed;  
f) The following plans shall be appended to the deed as integral parts thereof:
1. A survey plan of the land included in the project, unless a survey plan of the same property had previously been filed in said office;
2. A diagrammatic floor plan of the building or buildings each unit, its relative location and approximate dimensions.  
g) Any reasonable restriction not contrary to law, morals, or public policy regarding the right of any condominium owner to alienate or dispose off his condominium.  
h) The enabling or master deed may be amended or revoked upon registration of an instrument executed by a simple majority of the registered owners of the property: Provided. That in a condominium project exclusively for either residential or commercial use, simple majority shall be on a per unit of ownership basis and that in the case of mixed use, simple majority shall be on a floor area of ownership basis: Provided, further, That prior notifications to all registered owners shall be submitted to the Housing and Land Use Regulatory Board and the city/municipal engineer for approval before it can be registered. Until registration of a revocation, the provisions of this Act shall continue to apply to such property.  
              SECTION 5. Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interest in the common areas or in a proper case, the membership or share holdings in the condominium corporation: provided, however. That where the common areas in the condominium project are held by the owners of separate units as co-owners hereof, no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens or corporation at least 60% of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession. Where the common areas in a condominium project are held by a corporation, no transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant membership or stockholding in the corporation will cause the alien interest in such corporation to exceed the limits imposed by existing laws.  
                 SECTION 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows:  
a) the boundary of the unit granted are the interior surfaces of the perimeter walls, floors, ceiling, windows and doors thereof: provided, that in the case of an industrial estate condominium projects, wherein whole buildings, plants or factories may be considered as unit defined under section 3 (b) hereof, the boundary of a unit shall include the outer surfaces of the perimeter walls of said buildings, plants or factories. The following are not part of the unit: bearing walls, columns, floors, roofs, foundations, and other common structural elements of the buildings; lobbies, stairways, hall ways and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air conditioning equipment, reservoir, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits wires and other utility installations, wherever located, except the outlets thereof when located within the unit."  
b) There shall pass with the unit, as an appurtenant thereof, an exclusive casement for the use of the air space encompasses by the boundaries of the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time. Such easement shall be automatically terminated in any air space upon destruction of the units as to render it untenantable.  
c) Unless otherwise provided, the common areas are held in common by the holders of units, in equal share one for each unit.  
d) A non-exclusive easement for ingress, egress and support through the common areas in appurtenant to each unit and the common areas are subject to such easement.  
e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and doors hounding his own unit: provided, that in the case of an industrial estate condominium unit, such right may be exercised over the external surfaces of the said unit.  
f) Each condominium owner shall have the exclusive right to mortgage, pledge or encumber his condominium and to have the same appraised independently of the other condominium owner.  
g) Each condominium owner has also the absolute right to sell or dispose of his condominium unless the master deed contains a requirements that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties;  
                    SECTION 7. Except as provided in the following section, the common areas shall remain undivided, and there shall be no judicial partition thereof.  
                    SECTION 8. Where several persons own condominium in a condominium project, an action may be brought by one or more such person for partition thereof, by sale of the entire project, as if the owners of all the condominium in such project were co-owners of the entire project in the same proportion as their interests in the common areas; Provided, however, that a partition shall be made only upon a showing:  
a) That three years after damage or destruction to the project which renders a material part thereof unfit for its use prior thereto, the project had not been rebuilt or repaired substantially to its state prior to its damage or destruction; or
 
b) That damage or destruction to the project has rendered one half or more of the units therein untenantable and that condominium owners holding in aggregate more than 30 percent interest in the common areas are opposed to the repair or restoration of the projects; or  
c) That project has been in existence in excess of 50 years, that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or  
d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than 70 percent interest in the common areas are opposed to the continuation of the condominium regime after expropriation or condemnation of a material proportion thereof; or  
e) That the condition for such partition by sale set forth in the declaration of restrictions duly registered in accordance with the terms of this Act, have been met.
                SECTION 9. The owner of a project shall, prior to the conveyance of any condominium therein, register a declaration or restrictions, relating to such project, which restrictions shall ensure to a bind all condominium owners in the project , such liens, unless otherwise, provided, may be enforced by any condominium owner in the project or by the management body of such project. The Register of Deeds shall enter and annotate the declaration of restrictions, upon the Certificate of Title covering the land included within the proper, if the land is patented or registered under the Land Registration or Cadastral Acts.
Such declaration of restrictions, among the other things, may also provide:  
a) As to management body
For the power thereof, including power to enforce the provisions of the declarations of restrictions; or the maintenance of insurance policies insuring condominium owners against loss by the, casualty, liability, workmen's compensation and other insurable risks and for bonding of the members of any management body; Provisions for maintenance, utility, gardening and other services benefiting the common areas for the operations of the building, and legal, accounting and other professional and technical services; For purchase of materials, supplies and the like needed by the common areas; For payment of taxes and special assessment which would be a lien upon the entire project or common areas, for discharge of my encumbrance levied against the entire project of the common areas; The manner for delegation of its powers; For reconstruction of any portion or portions of any damage to or destruction of the project; For entry by its officers and agents into any unit when necessary in connection with the maintenance or construction for which such body is responsible; For a power of attorney to the management body to sell the entire project for the benefit of all of the owners thereof when partition of the project may be authorized under Section 8 of this Act, which said power shall be binding upon all of the condominium owners regardless or whether they assume the obligations of the restrictions or not
b) The manner and procedure for amending such restrictions, provided, that the vote of not less than a majority in interest of the owners is obtained;  
c) For independent audit of the accounts of the management body;  
d) For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owner's fractional interest in any common areas;  
e) For the subordination of the liens securing such assessments to other lien either generally or specifically described;  
f) For conditions, other than those provided for in Section 8 and 13 of this Act, upon which partition of the project and dissolution of the condominium corporation may be made. Such right to partition or dissolution may be conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified percentage of damage to the building, or upon a decision of an arbitration, or upon any other reasonable condition.  
                   SECTION 10. Whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas; either the ownership of any other interest in real property recognized by the law, to the management of the project, and to such other purposes as maybe necessary, incidental or convenient to the accomplishment of said purposes. The articles of incorporation or by laws of the corporation shall not contain any provision contrary to or inconsistent with the provision of this Act, the enabling or master deed, or the declaration of restrictions of the project, membership in a condominium corporation regarding of whether it is stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or a stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common area, he shall automatically cease to be a member or stockholder of the condominium corporation.                  
                   SECTION 11. The registration and regulation of a condominium corporation shall be vested with the Housing And Land Use Regulatory Board (HLURB) and the term of the said corporation shall be coterminous with the duration of the subdivision projects, the provision of the corporation law to the contrary notwithstanding.  
                    SECTION 12. The dissolution of the condominium corporation in any manner and any of the causes provided by law shall be governed by the provisions of the Title XIV of the Corporation Code.  
                    SECTION 13. Until the enabling or the master deed of the project in which the condominium corporation owns or holds the common areas is revoked the corporation shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of Court except upon a showing:  
a) The three years after damage or destruction to the project in which damage or destruction renders a materials part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or  
b) The damage or destruction to the project has rendered one half or more of the units therein untenantable and that more than 30 percent of the member of the corporation entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the project; or  
c) That the project has been in existence excess of 50 years, that it is obsolete and uneconomical and that more than 50 percent of the members of the corporation if non-stock or stockholders representing more than 50 percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the project; or  
d) That project or material part thereof has been condemned or expropriated and that the project is no longer viable or that the members holding in aggregate more than 70 percent interest in the corporation if non-stock, or the stockholders representing more than 70 percent of the capital stock entitled to vote, if a stock corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or  
e) That the conditions for such a dissolution set forth in the declaration of restrictions of the project in which the corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or  
                  SECTION 14. The condominium corporation may also be dissolved by the affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for such purpose: Provided, that all the requirements of Section 62 of the Corporation Law are complied with.  
                   SECTION 15. Unless otherwise provided for in the declaration of restrictions, upon voluntary dissolution of a condominium corporation in accordance with the provisions of Section 13 and 14 of this Act, the corporation shall be deemed to hold a power of attorney from all the members or stockholders to sell and dispose of their separate interests in the project and liquidation of the corporations shall be affected by a sale of the entire project as if the corporation owned the whole thereof, subject to the rights of the corporation and of individual condominium creditors.                   
                   SECTION 16. A condominium corporation shall not, during its existence, sell, exchange, lease or otherwise dispose of the common areas owned or held by it in the condominium project unless authorized by the affirmative vote of a simple majority of the registered owners: provided, that prior notification to all registered owners are done and provided further, that the condominium corporation may expand or integrate the project with another upon the affirmative vote of a simple majority of the registered owners, subject only to the final approval of the HLURB.  
                   SECTION 17. Any provisions of the Corporations Law to the contrary not withstanding, the by-laws of a condominium corporation shall provide. That a stockholder or member shall not be entitled to demand payment of his shares or interest in those cases where such right is granted under the Corporation Law unless the consents to sell his separate interest in the project to the corporation or to any purchaser of the corporation's choice who shall also buy from the corporation the dissenting member or stockholder's interest. In case of disagreement as to price, the procedure set forth in the appropriate provisions of the Corporation Law for valuation of shares shall be allowed. The corporation shall have two years within which to pay for the shares or furnish a purchaser of its choice from the time of award. All expenses incurred in the liquidation of interest of the dissenting member or stockholder shall be borne by him.  
                   SECTION 18. Upon registration of an instrument conveying a condominium, the Register of Deed shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of title covering the land included within the project and the transferee shall be entitled to the issuance of a "condominium owners" copy of the pertinent portion of such certificate of title. Said "Condominium Owner's" copy need not reproduce the ownership status of other condominium in the project. A copy of the description of land, a brief description of condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the "condominium owners" copy of the certificate of title. No conveyance of condominium or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project.
In case of condominium project registered under the provisions of the Spanish Mortgage Law or Act 3344 as amended, the registration of the deed of conveyance of a condominium shall be sufficient if the Register of Deed shall keep the original or signed copy thereof, together with the certificate of the management body of the project, and return a copy of the deed of conveyance to the condominium owner duly acknowledged and stamped by the Register of Deeds in the same manner as in the case of registration of conveyance is in accordance with the provisions of the declaration of restrictions of such project.  
                  SECTION 19. Where the enabling or master deed provides that the land included within a condominium project are to be owned in common by the condominium owners therein the Register of Deeds may at the request of all the condominium owner and upon surrender of all their condominium owner's copies, cancel the certificate of title of the property and issue a new one in the name of said condominium owners as pro-indiviso co-owners thereof.  
                   SECTION 20. The assessment upon any condominium made in accordance with a duly registered declaration of restrictions shall be an obligation of the owner thereof at the time the assessment is made. The amount of any such assessment plus any other charges thereon, such as interest, costs (including attorney's fee) and penalties, as such may be provided for in the declaration of restrictions, shall be and become a lien upon the condominium to be registered with the Register of Deed of the City or province where such condominium project is located. The notice shall state the amount of such assessment and such other charges thereon as may be authorized by the declaration of restrictions, a description of condominium unit against which same has been assessed, and the name of the registered owner thereof. Such notice shall be signed by an authorized representative of the management body or as otherwise provided in the declaration of restrictions. Upon payment of said assessment and charges of other satisfaction thereof, the management body shall cause to be registered a released of the lien.
Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances, such liens may be enforced in the same manner provided for by law for the judicial or extra-judicial foreclosure of mortgage or real property. Unless otherwise provided for in the declaration of the restrictions, the management body shall have power to bid at foreclosure sale. The condominium owner shall have the right of redemption as in cases of judicial or extra-judicial foreclosure of mortgages. 
                  SECTION 21. No labor performed or services or materials furnished without the consent of or at the required of a condominium owner or his agent or his contractor or sub-contractor, shall be the basis of a lien against the condominium of any other condominium owner, unless such other owner have expressly consented to or requested the performance of such labor or furnishing of such materials or services. Such express consent shall be deemed to have given by the owner of any condominium in the case of emergency repairs of his condominium unit. Labor performed or services or materials furnished for the common areas, if duly authorized by the management body provided for in a declaration of restriction governing the property, shall be deemed to be approved by the condominium owner. The owner of any condominium may remove his condominium from a lien against two of the lien of the fraction of the total sum secured by such lien which is attributable to his condominium unit. 
                   SECTION 22. Unless otherwise provided for by the declaration of restrictions, the management body, provided for herein, may acquire and hold, for the benefit of the condominium owners, tangible personal property and may dispose of the same by sale or otherwise, and the beneficial interest in such personal property shall be owned by the condominium owners in the same proportion as their respective interests in the common areas. A transfer of a condominium shall transfer to the transferee ownership of the transferor's beneficial interest in such personal property.  
                    SECTION 23. Where, in an action for partition of a condominium corporation on the ground that the project or a material part thereof has been condemned or expropriated, the court finds that the condition provided in this Act or in the declaration have not been met, the court may decree a reorganization of the project declaring which portion or portions of the project shall continue as a condominium project, the owners thereof, and the respective rights of the remaining owners and the just compensation, if any, that a condominium owner may be entitled to due to deprivation of his property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate the same on the pertinent certificate of title. 
                   SECTION 24. Any deed declaration or plan for a condominium project shall be liberally construed to facilitate the operation of the project, and its provisions shall be presumed to be independent and several.  
                    SECTION 25. The building and design standards for condominium projects to be promulgated by HLURB shall provide for, among others, accessibility features for disabled persons pursuant to Batas Pambansa Bilang 344 of 1994.  
                    SECTION 26. Whenever real property has been divided into condominiums, each condominium separately owned shall be separately assessed, for purposes of real property taxation and other tax purposes, to the owners thereof and tax on each such condominium shall constitute a lien solely thereon.  
                    SECTION 27. All acts or parts of Acts in conflict on inconsistent with this Act are hereby amended insofar as condominium and its incidents are concerned.
                     SECTION 28. This act shall take effect upon its approval.
Approved, June 18, 1966.

Presidential Decree 957 CONDOMINIUM BUYERS' PROTECTIVE DECREE

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.

 
REAL ESTATE ACQUISITION & DISPOSITION LAWS IN THE PHILIPPINES

ACQUISITION is the act of procuring or getting hold of a piece of real estate, and DISPOSITION is the manner of alienation, and transfer of possession and ownership thereof as prescribed by law. The acquisition and disposition of real estate is embodied in certain written agreements or contracts voluntarily entered into and subscribed by the parties thereof, before a public officer designated as the Notary Public of the City or Province where the subject property is situated. Thereafter, the instrument embodying the particular real estate transaction is required by law to be recorded in the registry of deed of the City or Province where the real estate involved is situated.

I. THE REAL ESTATE TRANSACTION

 In any, or all real estate transactions, the law prescribes certain requirements that are essential to its validity and effectivity. These are:

A. Competence of the Parties

1. Citizenship. - Only Filipino citizens and associations or corporations, sixty (60%) percent of the capital of which belong to Filipino citizens can acquire: (1) private lands, and (2) lands of the public domain.

The Philippine Constitution of 1987 prohibits the transfer or conveyance of private lands to aliens. Thus, Section 7, Article XII provides:

Sec. 7. Save in cases of hereditary succession no private lands shall be transferred or conveyed except to individuals, corporations or associations qualified to acquire or hold lands of the public domain.

The word "private lands" in this Section connotes "private property" which is defined in Article 425 of the New Civil Code, thus:

Art. 425. Property of private ownership, besides the patrimonial property of the State, provinces, cities, and municipalities, consists of all property belonging to private persons, either individually or collectively.

Property of private ownership means "private property" which constitutes things movable or immovable, that are possessed by, or belong to persons, natural or judicial The word "private lands" are those that are possessed by, or belong to natural persons, or corporations and associations "at least sixty per centum of whose capital is owned by Filipino citizens.

Note that "private lands" is derived from "private agricultural lands" in Section 5, Article XII of the 1935 Philippine Constitution which is identical to both Section 14, Article XIV of the 1973 Philippine Constitution, and Section 7, Article XII of the 1987 Philippine Constitution. And that, "private agricultural lands" was interpreted to include "residential lands" in Krivenko v. Register of Deeds of Manila where the Supreme Court held that under the Philippine Constitution of 1935, aliens may not acquire private or public agricultural lands, including "residential lands." For this reason, the word "agricultural" was written off in Section 14, Article XIV of the 1973 Philippine Constitution.

a. Americans as aliens. -- During the American Occupation (1898-1935), the citizens of the United States could acquire agricultural lands (public and private) including residential lands without legal restraints.

(1) At the advent of the Philippine Commonwealth status, the United States of America sought to maintain the same rights that Americans then enjoyed by enacting the Tydings-McDuffie Act. This law outlined the steps to be undertaken by the Philippine Government towards the adoption of a Constitution preparatory to the recognition of Philippine independence, and the withdrawal of American sovereignty. Among the provisions enacted into the 1935 Philippine Constitution is embodied under Article XVII as follows:

Section 1. Notwithstanding the provisions of foregoing Constitution, pending the final and complete withdrawal of the sovereignty of the United Statesover the Philippines.

(17) Citizens and corporations of the United States shall enjoy in the Commonwealth of the Philippines all the civil rights of the citizens and corporations, respectively, thereof.

This is the first Ordinance Appended to the 1935 Philippine Constitution that was ratified by the people in a plebiscite held on May 24, 1935.

Thus, in Moss v. Director of Lands, Eugene Moss, an American national, acquired a coconut land in Leyte on January 20, 1945 He applied for registration of the land, but the trial court denied the application because he was an alien. On appeal, the Supreme Court held that Moss validly acquired the land under Section 1, Subsection 17 of the Ordinance Appended to the 1935 Philippine Constitution. And, that, upon proclamation of Philippine Independence on July 4, 1946, the 1935 Constitution provides that "all existing property rights of citizens or corporations of the United States shall be acknowledged, respected, and safeguarded to the same extent as property right of citizens of the Philippines. "Further, the Court noted that "the instant case is not covered by Section 11 of Article XVII of the 1973 Constitution and by Presidential Decree NO. 713, dated May 27, 1976, 71 Off Gaz 4173, re residential lands of American citizens."

(2) On September 18, 1946, the First Congress of the Philippines adopted a Resolution of both Houses of Congress an amendment to the 1935 Philippine Constitution known as the Parity Rights Amendment It was approved by the people at the elections held on March 11, 1947. The Second Ordinance Appended the Constitution reads as follows:

Notwithstanding the provisions of section one, Article Thirteen and section eight, Article Fourteen, of the foregoing Constitution, during the effectivity of the Executive Agreement entered into by the President of the Philippines with the President of the United States on the fourth of July nineteen hundred and forty-six, pursuant to the provisions of Commonwealth Act Numbered Seven hundred and thirty three, but in no case to extend beyond the third of July, nineteen hundred and seventy-four. the disposition, exploitation, development, and utilization of all agricultural, timber. and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces and sources of potential energy, and other natural resources of the Philippines, and the operation of public utilities, shall, if open to any person, be open to citizens of the United States and to all forms of business enterprises owned or controlled directly or indirectly by citizens of the United States in the same manner as to, and under the same conditions imposed upon, citizens of the Philippines or corporations or associations owned or controlled by citizens of the Philippines.

William R. Quasha, an American citizen, acquired, by purchase, a Parcel of land with residential improvements thereon in Forbes Park, Makati, Rizal, on November 16, 1954. Due to the uncertainty as to the status of his property under the Parity Amendment after July 3, 1974, Quasha sought a judicial declaration of his rights (Republic v. Quasha, Aug. 17, 1972, 46 SCRA (1972).)

The Supreme Court, in this case, remarked that Sections I and 4, Article XIII of the Constitution reveals the intention of the framers to reserve to Filipinos the disposition, exploitation, development or utilization of agricultural lands, public (Section I), or private (Section 5), as well as all other natural resources;" and that "the Parity Amendment was intended to secure parity for United States citizens only in two matters: (1) exploitation, development and utilization of public lands, and other natural resources of the Philippines; and (2) the operation of public utilities but
not the acquisition or exploitation of private agricultural lands, about which not a word is found in the Parity Amendment."

Finally, the Court held that:

Under the "Parity Amendment" to our Constitution, citizens of the United
States and corporations and business enterprises owned or controlled by them
can not acquire and own, save in case of hereditary succession, private
agricultural lands in the Philippines and that all other rights acquired by
them under said Amendment will expire on 3 July 1974.

Quasha's right to hold the property, therefore, should cease as of July 3,
1974.

Prior to the expiration date, the then President Ferdinand E. Marcos
declared that, as a matter of national policy and amity with the United
States, American citizens and corporations owned and controlled by them
shall continue holding those private lands acquired by them until July 4,
1975, provided that, during the intervening period they divest themselves
thereof by transferring their ownership to qualified persons and entities.
For this purpose, the President authorized the National Development
Corporation to acquire, hold, develop, and dispose of these lands."

(3) The validity of the titles to those private lands acquired by Americans
under the Parity Amendment is recognized in Article XVII, Transitory
Provisions, of the 1973 Philippine Constitution, thus:

Sec. 11. The rights and privileges granted to citizens of the United States or to corporations or associations owned or controlled by such citizens under the Ordinance appended to the nineteen hundred and thirty-five Constitution shall automatically terminate on the third day of July nineteen hundred and seventy four. Titles to private lands acquired by such persons before such date shall be valid as against other private persons only.

These titles are valid only against private persons. The State is not bound to respect these titles. In fact, the State may institute escheat proceedings against the title holders under Section 5, Rule 1 of the Rules of Court.

The American vendee and holders of private lands are. therefore, required to divest themselves of ownership thereof, and transfer the same to qualified persons and entities.

b. On Resident Americans -United States citizens (1) who were formerly Filipino citizens, or who have continuously resided in the Philippines for twenty (20) years, as of May 27.1975 (the date of the Decree), and (2) had acquired private residential lands. Not exceeding 5,000 square meters for family dwelling before the Parity Amendment, was allowed to continue holding such lands. and to transfer ownership thereof to qualified persons and entities. The same right was granted to American citizens who had become permanent residents of the Philippines and had acquired 5,000 square meters of residential lands for a family dwelling.

c. Other aliens - (1) The sale of residential land with improvements thereon in the City of Manila to Dee Chian Hong & Sons, Inc. on September 10, 1936, was declared void in view of Section 6, Article XIII of the 1935 Philippine Constitution, the vendee being a Chinese entity. The owner, however. has no right to recover the property because both (vendor and vendee) were declared in pari delicto, i.e. both parties knew that what they did was in violation of the Constitution.

(2) In another case, a Filipino owner sold four (4) parcels of land with improvements thereon at the City of Manila to a Filipino woman married to a Chinese citizen on August 16, 1943. The vendor sought for the annulment of the sale on the ground that, both vendees, husband and wife, were Chinese citizens and, therefore disqualified to acquire real properties in this country. The Court sustained the sale, nevertheless, because (1) the 1935 Philippine Constitution was not in force during the Japanese Occupation (1942-1945), and, further the "buyer of the property though married to a Chinese citizen at the time of the sale, consequently recovered her Filipino citizenship after the death of her husband in 1948 during the pendency of
the case. However, her repatriation to Filipino citizenship should be accomplished by executing the oath of allegiance to the Republic of the Philippines, and by registering the said oath in the proper civil registry pursuant to Sections 2 and 4 of Commonwealth Act NO. 33.

(3) An alien may be a lessee for 30 years, renewable for not more than 25 years. He may also grant loans and become a mortgagee in certain cases specified by law. He is allowed to purchase a condominium unit, or set up a condominium project on a leased land.

d. Juridical entities. - (1) Foreign embassies may acquire or lease private lands for their official use pursuant to the Vienna Convention on Diplomatic Relations, effective August 24, 1964, ratified by the Philippines, re Articles 21, 23 and 30, on October 11, 1965.

(2) Private corporations with sixty (60%) per cent equity for Filipino citizens and forty (40%) per cent for aliens may acquire private lands, or lease lands of public domain for twenty-five (25) years, containing an area of 1,000 square meters.

(3) Private corporations can acquire private lands as may be reasonably necessary to enable it to carry out the purposes for which they are created."

(4) Alien corporations may lease private lands.

(5) A corporation sole with an alien as administrator may acquire private land which is held in trust for the benefit of the faithful residing within its territorial jurisdiction.

e. Natural-born citizens. - An exception to the constitutional inhibition against the acquisition of private lads by aliens is the Amendment to the 1973 Philippine Constitution that was ratified by plebiscite on April 1, 1981.
The Amendment, designated as Section 15, Article XIV, recites:

Sec. 15. Notwithstanding the provisions of Section 14 of Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private land, for use by him as his residence, as the National Assembly shall provide.

Who is a natural-born citizen? Section 4, Article III provides:

Sec. 4. A natural-born citizen is one who is a citizen of the Philippinesfrom birth without having to perform any act to acquire or perfect his Philippine citizenship.

And, how does a natural-born citizen lose his Philippine citizenship? Commonwealth Act No. 63, provides that Philippine citizenship may be lost by (1) naturalization in a foreign country, (2) subscribing to an oath of allegiance to a foreign country, upon attaining the age of 21 years, or more, (3) rendering service to, or accepting commission in the armed forces of a foreign country, (4) cancellation of the certification of naturalization, and (5) deserting the Philippine armed forces in time of
war.

The 1987 Philippine Constitution restates similar provision as Section 4, Article III of the 1973 Philippine Constitution in Section 2, Article IV, thus:

Sec. 2. Natural-born citizens are those who are citizens of the Philippinesfrom birth without having to perform any act to acquire or perfect their Philippine citizenship. Those who elect Philippine citizenship in accordance with paragraph (3), Section 1 hereof shall be deemed natural-born citizens.

The last sentence in this Section refers to those "born before January 17, 1973, of Filipino mothers, who elect Philippine citizenship upon reaching the age of majority." The definition of "natural-born citizen" has been restricted, according to a noted constitutionalist, Jose N. Nolledo, in that he is still a natural born citizen although his election has been made after the effectivity of the 1987 Philippine Constitution.

The natural-born citizen, under the 1987 Philippine Constitution, may be "a transferee of private lands. subject to the limitations provided by law." The law. Batas Pambansa No. 18529 provides, among others:

1. A transferee may acquire 1,999 square meters of urban land, OR one (1) hectare of rural land for residence ONLY by way of -

2. Voluntary or involuntary sale, devise or donation. The involuntary sale includes that of tax delinquency foreclosure, and execution of judgment.

3. Failure to reside permanently in the land acquired within two (2) years from acquisition, except by force majeure, is penalized by (a) forfeiture of the land including the improvements, and (b) deportation.

Excerpts from the book Philippine Real Estate Law & Jurisprudence by Alberto E. Filamor *Philippine Laws on Foreign Ownership of Land*

*Foreign nationals would prefer to own lands, especially foreign investors who intend to stay here for a considerable period of time. The law, however, states that foreigners cannot own lands, with only a few exceptions:

1. a balikbayan (a former natural born filipino citizen) is entitled to own 1,000 square meters of residential land, and one hectare of agricultural or farm land;

2. in cases of succession; and

3. in cases of a condominium unit where a foreigner can own up to 40 percent of the capital stock of the condominium corporattion.

A lease agreement can be entered into with Filipino landowners for an initial period of 50 years renewable for another 25 years.*

Executive Order No. 648 s. (1981): HLURB

 
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 r