PD957 Lecture by Ar. Richard T. Matacubo, RMP

Overview of Presidential Decree No. 957 Presidential Decree No. 957, also known as "The Subdivision and Condominium Buyers' Protective Decree," was issued on July 12, 1976. Key Purpose The decree was enacted to regulate the sale of subdivision lots and condominium units and to protect buyers from fraudulent practices and misrepresentations by developers, operators, and sellers. Main Provisions and Topics Covered A lecture on PD 957 would typically cover the following crucial areas, which are central to the decree: Registration and License to Sell: Mandates that subdivision and condominium projects must be registered and the developers must secure a License to Sell (LTS) from the Department of Human Settlements and Urban Development (DHSUD, formerly HLURB) before any units can be sold. Buyer Protection: Non-Forfeiture of Payments: A buyer may be reimbursed the total amount paid (with interest) if they stop payments due to the owner/developer's failure to develop the project according to approved plans and within the set timeframe (Section 23). Issuance of Title: The owner or developer must deliver the title of the lot or unit upon full payment by the buyer (Section 25). Developer Obligations: Specifies the developer's responsibilities, including: Development and Infrastructure: The developer must complete all promised facilities, improvements, and infrastructure (like roads, water systems, drainage, etc.) within one year, or the time fixed by the DHSUD. No Alteration of Plans: Roads, open spaces, and other facilities in the approved plan cannot be changed without the permission of the DHSUD and the written consent of the homeowners' association or a majority of the buyers. Design Standards: Sets minimum requirements for subdivision and condominium projects, including: Open Spaces: Requirements for parks and playgrounds (mandated for projects 1 hectare or more). Lot and Room Sizes: Minimum lot areas for different housing types and minimum room sizes for condominiums. Penalties: Imposes administrative fines and criminal penalties for violations of the decree's provisions.