VP tightens up on home sales

Developers, brokers, and contractors are now required to obtain permits from the Housing and Land Use Regulatory Board before they could sell housing units.

Vice President Jejomar Binay said that the rules are intended to deter pre-selling fraud.

HLURB chief executive officer Antonio Bernardo warned of developers selling their units even without having complied with the requirements.

“Some developers offer attractive and low 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 buyers,” he said.

Binay reminded developers and realtors that under 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.

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.

The Subdivision and Housing Developers Association 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.

The HLURB, meanwhile, said it is developing a legal monitoring system that will help fast track the resolution of conflicts involving homeowners associations and realtors.

“The system is an improvement of the existing practice which relies heavily on record book,” Binay said.

The monitoring system will start at the filing of verified complaint/petition until Execution Pending Appeal. It is also expected to improve coordination between arbiters and their paralegal staff with the latter having the primary responsibility to keep and maintain a record of the case.

The Board revised the Rules of Procedure which significantly sped up the disposition of cases since its implementation. –Sara Fabunan, Manila Standard Today