8/13/2019 1854215703!, senate bill no. 2073

1/3

SIXTEENTH CONGRESS OF THE REPUBLIC )OF THE PHILIPPINES )First Regular SessionS E N A T t 7 3S B NO

Se\1ntli4\ff.;. f t l j. :; i ,.\ ,.

14 J N 20 P :23

I U ; ( [ ~ I \ E D n : r:Introduced by Senato,r Maria Lourdes Nancy S. Binay

EXPLANATORY NOTEPre-selling. of subdivision and condominium units, or selling prior to completion ofconstruction, is an effective sales and marketing scheme adopted by real estate developersbecause of considerable discounts offered to prospective buyers.Unfortunately, there are real estate developers that fail to complete the subdivision orcondominium project within the period provided in :the contract There are instances thatdelivery of subdivision Of condominium uoits is delayed by months and in some instances,even years.Section 20 of Presidential Decree (P.D.) No. 957, or The Subdivision and CondominiumBuyers' Protection Decree provides that the developer of the project shall construct andprovide the facilities, i m p r o v m n t ~ and otlier developments within one (I) year from theissuance of the license for the projectThe aforementioned provision however does not expressly provide the period within whichthe owner or developer shall complete the project and deliver the subdivision orcondominium unit to the buyer. It can thus be argued that penalties for violations of P.D957 being penal provisions, which shall be strictly construed against the State, does not applyto owners and developers of subdivision and condominium projects that fail to comply withits obligation to complete the project and deliver the subdivision or condominium unit to thebuyers.This bill proposes to address the gap in P.D. 957 by expressly providing that owners anddevelopers df subdivision of condominium:. projects shall comply with its obligations tocomplete the project and deliver the realty within the period provided in the contractIn view ofthe foregoing, the passage of this bill is earnestly recommended.

M A R I ~ ~ I A ...IVSenator

8/13/2019 1854215703!, senate bill no. 2073

2/3

12 3456789

10111213 .141516171819202122I 2324252627.28,29303132333435363738

Stnat*,SIXTEENTH CONGRESS OF THE REPUBLIC ) d)H.; til > n b r ~OF THE PHILIPPINES )First Regular e s ~ i o n ) 14 J N 20 P6 :24

S EN A TES. B NO. 2 73

RECEIVED UV:_ t-Introduced by Senator Maria Lourdes Nancy S. BinayAN ACT FURTHER REGULATING SUBDIVISION LOTS AND CONDOMINIUMS BYREQUIRING OWNERS AND DEVELOPERS TO DISCLOSE THE DATE OFCOMPLETION, DATE OF TURNOVER AND OTHER RELEVANT MILESTONES INTHE CONTRACT, AND BY REQUIRING THE OWNERS OR DEVELOPERS TOCOMPLY WITH ITS OBLIGATION TO COMPLETE AND TURNOVER THE PROJECT

WITHIN SUCH PERIOD AND FOR OTHER PURPOSESBe it enacted by the Senate and House o Representatives o the Philippines n CongressassembledSECTION 1. Section 20 of Presidential Decree No. 957, otherwise known as TheSubdivision and Condominium Buyers' Protection Decree, is hereby amended to read asfollows:

SECTION 20. Time of Completion. - Every owner or developer shallconstruct and provide the facilities, improvements, infrastructures and otherforms of development, including water supply and lighting facilities, whichare offered and indicated in the approved subdivision or condominiumplans, brochures, prospectus, printed matters, letters or in any form ofadvertisement, within one year fr6m the date of the issuance of the licensefor the subdivision or condominium project or such other period of time asmay be fixed by the AuthorityTHE OWNER OR DEVELOPER' SHALL, IN THE CONTRACT,PROVIDE A SPECIFIC TIMETABLE FOR THE PROJECT, WHICHTIMETABLE INCLUDES THE PERIOD OF CONSTRUCTION,EXPECTED DATE OF COMPLETION, EXPECTED DATE OF TURNOVER OF THE SUBDIVISION OR CONDOMINIUM UNIT ANDOTHER RELEVANT MILESTONE DATES AS MAY BE PRESCRIBEDUNDER ~ L M N T I N G RULES AND REGULATIONS.THE OWNER OR DEVELOPER SHALL STRICTLY COMPLY WITHITS OBLIGATION TO COMPLETE THE PROJECT, AND SHALLDELIVER AND TURN-OVER THE SUBDIVISION ORCONDOMINIUM UNIT TO THE BUYER NO LATER THAN THEEXPECTED DATE OF COMPLETI0N OR TURN-OVER, AS THE CASEMAYBE.

8/13/2019 1854215703!, senate bill no. 2073

3/3

.123456789

111234

SE TION 2 Implementing Rules and e g u ~ a t i o n s The Housing and Land Use RegulatoryBoard, in coordination with the National Housing Authority, and the Housing and UrbanDevelopment Coordinating Council, and other relevant government agencies shall issueimplementing rules and regulations within ninety (90) days from effectivity hereof and suchother rules and regulations as may be e c e s s a ~ y to carry out the purpose of this Act.SE TION 3. Repealing Clause All laws, decrees, orders, rules and regulations, otherissuances, ,or parts thereof inconsistent with the provisions of this Act are hereby repealed ormodified accordingly.SE TION 4 Effectivity Clause This Act shall take effect fifteen (15) days after its completepublication in at least two (2) national newspapers ofgeneral circulation.Approved,