What PD 957 covers
Presidential Decree No. 957 (1976) regulates the sale of subdivision lots and condominium units, including pre-selling projects. It sets rules for developers on registration, selling, development and delivery, and gives buyers specific remedies.
Key protections
- Registration and license to sell: a developer must register the project and obtain a license to sell before offering lots or units for sale.
- Development according to approved plans: the project must be developed within the time and according to the plans that were approved.
- Non-forfeiture of payments: if the developer fails to develop the project according to the approved plans and timeline, a buyer who gives due notice and stops paying cannot have their installment payments forfeited, and may choose to be reimbursed.
- Delivery of title: the developer is expected to deliver the title to the buyer upon full payment of the price, subject to the law's conditions.
Where to complain
Complaints against developers are brought to the housing regulator. This role was historically handled by the HLURB and is now handled by the Department of Human Settlements and Urban Development (DHSUD) and the Human Settlements Adjudication Commission.
Practical tips for buyers
- Ask for the project's certificate of registration and license to sell before paying a reservation fee.
- Keep copies of the contract, official receipts, brochures and advertisements.
- Send any notice to the developer in writing and keep proof of delivery.