Truth in Advertising Real Estate

HLURB RES. No 921 (2014) MC-01(2015)

Republic of the Philippines
Office of the President
Housing and Urban Development Coordinating Council
HOUSING AND LAND USE REGULATORY BOARD
BOARD RESOLUTION NO. 921
Series of 2014
REVISED IMPLEMENTING RULES AND REGULATIONS TO GOVERN
THE ADVERTISEMENTS OF SUBDIVISION AND CONDOMINIUM
PROJECTS UNDER PRESIDENTIAL DECREE NO. 957,
OTHERWISE KNOWN AS THE .. SUBDIVISION AND CONDOMINIUM
BUYERS' PROTECTIVE DECREE AND ALL OTHER PROJECTS
REQUIRED BY LAW TO BE REGISTERED WITH THE
HOUSING AND LAND USE REGULATORY BOARD



Pursuant to Article N, Section 5(c) of Executive Order No. 648 (E.O. No.
648), as amended by Executive Order No. 90, and to Section 36 of
Presidential Decree No. 957 (P.O. No. 957), the following rules and
regulations ( "Rules'') are hereby promulgated by the Housing and Land Use
Regulatory Board (HLURB) to implement Section 19 and other related
provisions of P.O. No. 957 and to regulate the advertisements of subdivision
and condominium projects and all other similar projects required by law to be
registered with the HLURB.

Section 1. Title. This Rules shall be referred to as the "2014 Revised
Implementing Rules and Regulations on Advertisements".

Section 2. Scope of Application. This Rules shall apply to all
announcements and advertisements about a project that is required by law to
be registered with the HLURB.

When used in this Rules, the word "project'' shall include the following which
are required by Jaw 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 Rule aims to ensure that the public and
prospective buyers are fairly and truthfully informed of the development,
construction, sales and operations, and other facts or activities relating to a
project in order that the public and prospective buyers may not be misled or
deceived through misrepresentations that may be made in an announcement
or advertisement.

Section 4. Definition of Terms. When used in this Rules, the following
terms or words shall, unless the context otherwise indicates, mean or be
understood as follows:

4.1 "Advertisement'' refers to any form of information, whether in words or
in illustrations, relating to a project, its operations or activities,
disseminated or communicated for the purpose of marketing and
selling the project, or any lot, including any building or improvement
thereon, or any unit thereof, through any of the various media such as
but not limited to newspapers, magazines, television, radio, billboards,
brochures, leaflets, flyers, digital and electronic signages and
communications, scale models, or through buyers' briefings, seminars,
or trippings.

4.2 "Announcement" refers to any form of information, whether in words or
in illustrations, disseminated or communicated in the same manner as
an advertisement, solely for the purpose of initially informing or
notifying the public about a project but not for the purpose of
marketing or selling such project, or any lot, including any building or
improvement thereon, or any unit thereof.

4.3 "Broker" refers to any person, natural or juridical, that is required by
P.O. No. 957 to be registered with the HLURB before it can undertake,
for commission or other compensation, to sell or negotiate the sale of
any lot including any building or improvement thereon, or any unit in a
project belonging to another.

4.4 "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 Presidential Decree
No. 957, Batas Pambansa Big. 220, or any of their implementing rules
and regulations or any guidelines or circular issued thereunder.

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

4.6 "Columbarium" refers to any structure, either freestanding or part of
another building, containing niches for the inumment of cremated
human remains.

A columbarium may include an "ossuary" which
refers to the internment space for the bones of the dead.

4.7 "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.

4.8 "Commercial Subdivision" refers to a tract or parcel of land registered
under Act No. 496, as amended by Presidential Decree No. 1529,
which is partitioned primarily into individual lots for commercial use
with or without improvements thereon and offered to the public for
sale in cash or in installment terms.

4.9 "Condominium Project" refers to the entire parcel of real property
divided or to be divided into condominium units, including all structures
thereon.

4.10 "Dealer" refers to any person, natural or juridical, that is required by P.O.
No. 957 to be registered with the HLURB, before it can directly engage
as principal in the business of buying and selling of any lot including
any building or improvement thereon, or any unit in a project, whether
on a full-time or part-time basis.

4.11 "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.

4.12 "Dissemination" refers to the publishing, airing or broadcasting, posting,
distributing, digital or electronic networking, or through any other
manner an advertisement or announcement is communicated or made
known to the public.

4.13 "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°/o maximum allowable buildable area.

4.14 "Industrial Subdivision" refers to a tract or parcel of land registered
under Act No. 496, as amended by P.O. No. 1529, partitioned primarily
into lots for sale or lease to establishments engaged primarily in
industrial production or services. The degree of development may be
limited to the provision of utilities and allocation of areas for industrial
buildings, facilities, and amenities, or it may also include the provision
of buildings, facilities, and amenities.

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

4.16 "Owner" refers to the registered owner of the land subject of a project.
An owner who develops a project by himself shall be considered as a
developer.

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

4.18 "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.

4.19 "Salesman or Salesperson" refers to any person engaged, supervised, or
regularly employed by a broker and who is required by P.O. No. 957 to
be registered with the HLURB before it can perform, for and in behalf of
the broker, any or all functions of the latter.

4.20 "Subdivision Project" refers to a tract or a parcel of land registered
under Act No. 496, as amended by Presidential Decree No. 1529,
which is partitioned primarily for residential purposes into individual
lots with or without improvements thereon, and offered to the public
for sale, in cash or in installment terms. It shall include all residential,
commercial, industrial and recreational areas as well as open spaces
and other community and public areas in the project.

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. Truth in Advertising. Any announcement or advertisement
about a project, or about its operations or activities, must reflect the real facts
and must be presented in a manner that will not tend to mislead or deceive

All representations pertaining to the project's payment and
the public. financing scheme, design and standards, and its amenities, facilities and
other privileges connected with the sale of the lots, including any building or
improvement thereon, or any units thereof, must conform with the rules and
guidelines issued by the HLURB.

Section 6. Announcement Of A Project. Only the owner or the developer
may make an announcement about a project before the issuance of its license
to sell, provided that such announcement shall not include any information or
statement which directly or indirectly conveys or suggests the sale or
marketing of any of the lots, including any building or improvement thereon.
Any violation of this provision or its implementing guidelines as may be issued
by the HLURB shall constitute as selling without a license and shall
accordingly be subject to appropriate sanctions and penalties imposed by
Presidential Decree No. 957 and the rules, regulations and guidelines issued
thereunder.

Section 7. Approval of the Advertisement.

The owner/developer, dealer, or the authorized broker/s or salesperson/s shall be allowed to
advertise about the project only after the issuance of the project's license to
sell and after the HLURB has approved the advertisement material in
accordance with its issued rules and guidelines. Such approval may however
be suspended or revoked in case of violation of the terms and conditions of
the advertisement approval or by reason of any violation of the rules and
regulations issued by the HLURB.

Section 8. Material Facts and Prohibited Information and Statements. To enable the public or prospective buyers to make an
informed choice on their purchase or acquisition, any advertisement about a
project must indicate material facts, and all announcements and
advertisements shall not include any prohibited statement or information, as
may be provided under the rules and guidelines issued by the HLURB.

Section 9. Warranties and Liabilities.All representations in an
advertisement shall form part of the sales warranties enforceable against the
owner or developer, jointly and severally. Such owner or developer shall be
answerable and liable for the facilities, improvements, infrastructures, or
other forms of development represented or promised in an advertisement and
failure to timely and completely fulfill these representations shall constitute
breach of contract and warranties and shall be subject to sanctions and
penalties in accordance with Presidential Decree No. 957 and the rules and
guidelines issued by the HLURB.


Section 10. Monitoring. The HLURB, in the exercise of its visitorial powers,
may motu propio or upon verified complaint, exercise its right to monitor all
announcements and advertisements and impose appropriate sanctions in case
of violation or non-compliance with this Rules and the guidelines issued by
the HLURB pursuant hereto.

Section 11. Penalty Clause. Any announcement or advertisement issued
or disseminated in violation of this Rules or the guidelines issued pursuant
hereto shall be considered as a prohibited announcement or advertisement
and shall be penalized in accordance with the provisions of Executive Order
No. 648 and Section 38 (Administrative Fines) and Section 39 (Penalties) of
Presidential Decree No. 957.

Each and every publication or printing of a prohibited announcement or
advertisement in any newspaper, magazine, or any other periodicals,
brochures, leaflets, or flyers, or every airing or broadcasting of such
prohibited announcement or advertisement shall be considered as a separate
violation and each shall be subject to separate sanctions and penalties.
The rights and remedies provided in this Rules shall be in addition to any and
all other rights and remedies that may be available under existing laws.

SECTION 12. Authority to Issue Guidelines and Circulars. The Chief
Executive Officer of HLURB is hereby authorized to issue guidelines through
memorandum circulars implementing or interpreting this Rules, provided that
the provisions of such guidelines shall not be inconsistent with or go beyond
the provisions of this Rules.

Section 13. Repealing Clause. - All HLURB resolutions, rules and
regulations, memoranda, circulars, guidelines and similar official issuances on
advertisements of projects, including subdivision and condominium projects
under P.D. No. 957, that are inconsistent herewith are hereby repealed.

Section 14. 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 15. Effectivity Clause. This Rules shall take effect fifteen days
after its publication in the Official Gazette or in any national newspaper of
general circulation.

Section 16. Transitory Provision. -All owners, developers or advertisers
with existing announcements or advertisments, including billlboards, not
complying with the foregoing Rules and the guidelines that may be issued
by the HLURB pursuant hereto shall, within sixty (60) upon effectivity of this
Rules, immediately cease and desist from using such announcement or
advertisement material until such time the same has been amended and
accordingly approved by the HLURB.

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


AUSTEREA.PANADERO
Undersecretary, DILG
ANTONIO M. BERNARDO
Commissioner and Chief Executive Officer
GOLEZ-CABRERA
EMMANUEL F. ESGUER~