HLURB imposes stricter rules to deter pre-selling scams - VP Binay

By OVP Media
July 2, 2012

MANILA  –  Vice President Jejomar C. Binay said the Housing and Land Use Regulatory Board (HLURB) will now require real estate developers, brokers and contractors to strictly comply with rules on requisite permits before they could sell housing units.

Binay said HLURB Chief Executive Officer Antonio Bernardo met with officers of the Subdivision and Housing Developers Association (SHDA) and discussed various complaints of homebuyers.

Bernardo noted that some developers market lots or housing units of their projects even without having complied with certain HLURB requirements.

“Some developers offer attractive and lower prices and incentives to prospective buyers during the pre-selling stage. This is done to ensure a successful marketing strategy while at the same time avoiding paying a premium for the cost of developing and completing the project,” Binay said.

“Hence, the law has set certain guidelines to safeguard the interest of the buying public,” he added.

Binay reminded developers that under PD 957, otherwise known as “The Subdivision and Condominium Buyer’s Protective Decree”, a project developer, owner or dealer may not sell any subdivision lot or condominium units unless it first obtains a license to sell from HLURB.

The same law defines “sale” or “sell” as “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.”

Binay said this mode of disposition includes 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.

Meanwhile, the SHDA promised to cooperate with HLURB and to remind its members to comply with the rules on registration and issuance of license to sell for residential subdivision or condominium project.