December 2, 2014

HLURB BOARD RESOLUTION NO. 922-14

REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN DEALERS, BROKERS AND SALESMEN OF SUBDIVISION AND CONDOMINIUM PROJECTS UNDER

Pursuant to Article IV, Section 5 (c) of

SECTION 1. Title. This Rules shall be referred to as the "2014 Revised Implementing Rules and Regulations on Dealers, Brokers and Salesmen".

SECTION 2. Scope of Application. This Rules shall apply to all persons, natural or juridical, that shall engage in the practice of real estate service with projects required by law to be registered with HLURB.

When used in this Rules, the word "project" shall include the following which are required by law to be registered with the HLURB:

2.1 All subdivisions, including residential, commercial, farmlot, and industrial subdivisions;

2.2 All condominiums, including residential and commercial condominiums;

2.3 Any other similar projects, including cemeteries, memorial parks, and columbaria.

SECTION 3. Objectives. This Rules aims to ensure that the public and prospective buyers of any lot including any building or improvements thereon, or any unit in a project are protected from fraudulent practices and manipulations through close supervision and regulation of persons engaged in the practice of real estate service with a project.

SECTION 4. Definition of Terms. When used in this Rules, the following terms shall mean or be understood as follows:

4.1 "Broker" refers to any person, natural or juridical, that is required by aSEDHC

4.2 "Business Firms" refers to any corporation, partnership, cooperative or association, or single proprietorship that is required by

4.3 "Cease and Desist Order" refers to an order issued by the HLURB directed against a developer enjoining it from committing certain acts in relation to its project by reason of a violation of

4.4 "Cemetery" refers to a public or private land used for the burial of the dead and other similar uses.

4.5 "Columbarium" refers to any structure, either freestanding or part of another building, containing niches for the inurnment of cremated human remains. A columbarium may include an "ossuary" which refers to the interment space for the bones of the dead.

4.6 "Commercial Condominium" refers to the entire parcel of real property divided or to be divided primarily for commercial purposes into commercial units, including all structures thereon.

4.7 "Commercial Subdivision" refers to a tract or parcel of land registered under Act No. 496, as amended by

4.8 "Condominium Project" refers to the entire parcel of real property divided or to be divided primarily for residential purposes into condominium units, including all structures thereon.

4.9 "Dealer" refers to any person, natural or juridical, that is required by

4.10 "Developer" refers to a person, natural or juridical, who develops or improves for and in behalf of the owner of a project. When used in this Rules, the developer shall also pertain or include the owner.

4.11 "Farmlot Subdivision" refers to a subdivision project primarily intended for agricultural production, with a minimum lot area of 1000 sq.m. and with a 25% maximum allowable buildable area.

4.12 "Industrial Subdivision" refers to a tract of land registered under Act No. 496, as amended by

4.13 "Memorial Park" refers to a privately-owned cemetery provided with a systematic supervision and maintenance where park-like atmosphere is its outstanding quality.

4.14 "Practice of Real Estate Service" refers to any of the acts or transactions embraced within Sections 4.1, 4.9 and 4.17 hereof with respect to any project required by law to be registered with the HLURB. In the case of brokers and salesmen, any single act or transaction thereof shall constitute practice of real estate service.

4.15 "Project" refers to the different real estate developments enumerated under Section 2 hereof which are required by law to be registered with the HLURB.

4.16. "Sale" or "sell" shall include every disposition or attempt to dispose, for a valuable consideration, of any lot, including the building and other improvements thereof, or any unit in a 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. HCaDET

4.17 "Salesman or Salesperson" refers to any person engaged, supervised, or regularly employed by a broker and who is required by

4.18 "Subdivision Project" shall mean a tract or a parcel of land registered under Act No. 496, as amended by

All other words as may be used in this Rules shall be interpreted in accordance with their normal and popular usage and meaning.

SECTION 5. Practice of Real Estate Service. All persons, natural or juridical, engaged in the practice of real estate service with any project shall faithfully comply with the provisions of

SECTION 6. Registration and Accreditation Requirements under

SECTION 7. Registration of Business Firms. All business firms shall first register with the HLURB in accordance with its existing rules and guidelines before they can engage in the practice of real estate service with any project required by law to be registered with the HLURB.

SECTION 8. Requirement of Bond. All applicants for registration with the HLURB shall file a bond or such other acceptable security in lieu thereof. Such bond or security shall be executed in favor of the HLURB and shall be subject to the conditions provided under Section 12 of

SECTION 9. Monitoring and Sanctions. All persons engaged in the practice of real estate service with any project are subject to the regular monitoring, supervision and regulation of HLURB in accordance with its existing rules, regulations and guidelines. For this purpose, they shall be subject to the imposition of fines and penalties in case of violation of any of the provisions of

SECTION 10. Administrative Fines and Penalties. Except as provided under Sections 11 and 12 hereof, in addition to the appropriate penalties that may be imposed in accordance with Section 39 of

1st Offense Fine in the amount of P5,000.00; and

2nd Offense Fine in the amount of P10,000.00 and revocation of HLURB registration.

Any person not registered with the HLURB found violating any provision of this Rules for the second time, or whose registration has been revoked under this Rule shall not be allowed to register anew with the HLURB. In addition thereto, all violations committed by brokers or salespersons shall be reported to the PRBRES by the HLURB, and if applicable, with a corresponding recommendation for the revocation or cancellation of the real estate service practitioner's registration or accreditation with the PRBRES in case of subsequent violation.

All fines imposed in this Rules shall be payable to HLURB and enforceable through writs of execution in accordance with the existing HLURB's Rules of Procedure. In the case of corporations, partnerships, cooperatives, or associations, the president, manager or administrator or the person(s) who has charge of the administration of the business shall be criminally responsible for any violation of the Decree and/or these rules and regulations promulgated pursuant thereto.

SECTION 11. Prohibition against Practicing Real Estate Service without HLURB Registration. Any person who shall engage in the practice of real estate service with any project without first registering with the HLURB shall be fined P10,000.00, without prejudice to the criminal action that may be filed pursuant to Section 39 of aCcADT

SECTION 12. Prohibition against Practicing Real Estate Service with Expired HLURB Registration. Any dealer, broker, salesperson and business firm that shall engage in the practice of real estate service with any project with an expired registration shall be fined P5,000, without prejudice to the criminal action that may be filed pursuant to Section 39 of

SECTION 13. Prohibition against Selling Lots and Units of Projects without Certificate of Registration and License to Sell (CR/LS). Any person who shall sell any lot including any building or improvements thereon, or any unit in a project which does not have a Certificate of Registration and License to Sell (CR/LS) issued by the HLURB shall be fined with the imposable penalty for each act of selling in accordance with the approved Schedule of Fines of the HLURB, without prejudice to the criminal action that may be filed pursuant to Section 39 of

SECTION 14. Authority to Issue Guidelines and Circulars. The Chief Executive Officer of HLURB is hereby authorized to issue guidelines and memorandum circulars implementing or interpreting this Rules, provided that the provisions of such guidelines and memorandum circulars shall not be inconsistent with or go beyond the provisions of this Rules.

SECTION 15. Repealing Clause. All board resolutions, rules and regulations, memoranda, circulars, guidelines and similar official issuances on dealers, brokers, and salespersons of projects, including subdivision and condominium projects under

SECTION 16. Separability Clause. The provisions of this Rules are hereby declared separable, and in the event that any provision herein is declared null and void, the validity of all other provisions shall not be affected thereby.

SECTION 17. Effectivity Clause. This Rules shall take effect fifteen (15) days after its publication in the Official Gazette or in any national newspaper of general circulation.

SECTION 18. Transitory Provision. Upon effectivity of this Rules, all dealers, brokers and salespersons who have been engaged in the practice of real estate service and who have failed to register or renew their registration with the HLURB shall be given a period of sixty (60) days within which to register or renew and shall be exempt from the imposition of fines provided in the HLURB's Revised Schedule of Fines for failure to register or renew. All business firms who have been engaged in the practice of real estate service shall, upon effectivity of this Rules, likewise be given a period of sixty (60) days within which to register.

Notwithstanding the foregoing, the non-imposition of fine as herein provided during the sixty (60)-day transitory period shall not prejudice the enforcement of Sections 11 (Practicing Real Estate Service without Registration) and 12 (Practicing Real Estate Service with Expired Registration).

APPROVED, this 2nd day of December 2014, Quezon City.

(SGD.) JEJOMAR C. BINAY
Vice-President of the Philippines &
Housing and Urban Development Coordinating Council Chairman

(SGD.) AUSTERE A. PANADERO
Undersecretary, Department of the Interior and Local Government

(SGD.) ANTONIO M. BERNARDO
Commissioner and Chief Executive Officer
Housing and Land Use Regulatory Board

(SGD.) JOSE VICENTE B. SALAZAR
Undersecretary, Department of Justice

(SGD.) RIA CORAZON A. GOLEZ-CABRERA
Commissioner
Housing and Land Use Regulatory Board

(SGD.) JAIME A. PACANAN
Undersecretary, Department of Public Works and Highways

(SGD.) LUIS ALVAREZ PAREDES
Commissioner
Housing and Land Use Regulatory Board

(SGD.) EMMANUEL F. ESGUERRA
Deputy Director-General, National Economic and Development Authority

(SGD.) LINDA L. MALENAB-HORNILLA, MNSA
Commissioner
Housing and Land Use Regulatory Board

Attested:

(SGD.) CHARITO B. LANSANG
Board Secretary
Housing and Land Use Regulatory Board

Published in The Philippine Star on January 30, 2015.