Plan, plan and plan some more

QUESTION: Is Stonewall Central a better name for the property?
UPDATE (click): 2012 Audited Financial Statements
UPDATE (click): 2013 Annual Meeting packet
UPDATE (click): 2013 Special Meeting packet

AUDITED FINANCIAL STATEMENTS ANALYSIS 2009-2012 (click): A CPA analysis of SOHO Central Condominium Corporation's Audited Financial Statements

The Fantasy Vision

Does everyone remember this among the wonderful ads and brochures and how about the salespeople and what they told us. I hear such fantasies continue. So after watching and remembering, cry and then laugh at the truth that is being exposed.









And, if the above is not enough and you need elevated blood pressure, here is the project's brochure.

Many posts are still issues and need to be read once again. At this main hub of postings watch for new posts and updates. Please get involved by spreading the word as to the issues here. We must document all that is taking place. Many documents need retrieval and assistance is needed in getting them scanned and posted.

Monday, March 31, 2014

Hallway lights are still turned on after many months

Hallway lights are still turned on after many months

The comments and quarterly report below was posted last year in August.  The lights when half are turned off are then all turned back on by the guards.  Seems there is still a problem with communication.

I had written about the sentence in bold with a warning to Unit Owners about not attending the Annual Meeting.  But then at the Special Meeting the amendment which was introduced at the prior year's Annual Meeting was reintroduced to give power to do just that, give votes to the developer controlled Board.  So why was this written in the report when the amendment had not been voted upon and then submit it again after such a warning?  So many questions for an unknown Board.

***

They claim an idea which Ryan & I have been practicing since first arriving.  The lights in the hallways are a little much and use power.  Did they not communicate this idea we have been practicing and they now suggest to the security guards?

This also brings up communication between Board and management who then need to communicate with the security guards.  Why?  They turn all of the lights back on when we turn half off providing enough light.  Yes, just like an old comedy.

...

The DEVELOPER CANNOT VOTE YOUR SHARES!  Why do they write "The consequence of not attending and not submitting a proxy is that the developer can now legally vote your shares."?  If this were true, the ploy on the proxy form giving the Chair your vote would not be needed.  Also, a quorum would have been automatic at all past meetings.

...

Emergency Signs and no Fire Drills

Emergency Signs and no Fire Drills

I had written and more often spoken about the signs and prior to that the lack of proper identification of previous signs.  But, the main sign at the elevator lobbies is still lacking in properly explaining what the exits are much less that the one exit leads back into the building.  It should be avoided unless there is no way to the others.  This reminds me, is the stairwell door still locked to the one rooftop?  

I have posted the current and past signs from the elevator lobby areas along with the signs from the doors.  By the way, these signs appeared after I was talking about the problem with the main one and where the stairwells lead.  So much Unit Owners would add perhaps being given credit for if only the assumed seats on the Board would let us in to the secret & private meetings.






Shared Balconies at Gramercy, too?

Shared Balconies at Gramercy, too?

I know some were surprised to hear about the shared balconies with their inherent security and privacy issues at Knightsbridge.  But, when visiting a unit at Gramercy, I discovered what a friend had not noticed about their strangely, if not nonsensical, divided balcony.  It was not only divided preventing cleaning unless unscrewing the hinges on the window due to the blocked access from a glass divider, but shared a window with an unused air conditioning slot from another unit.

I had noticed the bedroom air conditioner in the unit I was in and then I saw the other unused slot and thought it was odd to have two for a bedroom.  After going back inside and then outside, I called my friend and said something is amiss.  I had not heard about this for Gramercy.  These buildings are supposed to be upscale from Soho Central and the other buildings associated with Soho Central in the climb to glory?

If I was a Unit Owner there, I would not only protest but get a glass cutter so I could clean the balcony.  Who designed it this way?  Did the buyers know?  Was there an effort to tell them?  I am getting the impression from the history of ads and disclaimers which appear to be contrary to law that buying a unit is just relying upon the fantasy only to await the unexpected potluck feast.  But who and what is being served.

First for a little humor before hard hitting reality on what the millions of pesos paid for:


A Gramercy balcony followed by the TV they got which seems to be a computer monitor posing as a TV.  Well, it is flat screen as was advertised for us though we got, as one Unit Owner observed, a pregnant flat screen TV.  How much was the charge for that and much was the cost to the company?  Someone found out how much some of the furnishings cost the company compared to what we were charged for fully furnished units.  I guess I need to do a post on that so all the horrors are known.






Yes, those are cigarette butts from the unknown with no way to clean unless removing hinges or climbing very carefully on railing around the glass.


Now do not tell me they did not have a smaller one.



Friday, March 28, 2014

Gramercy By-Laws

Gramercy By-Laws

We are still seeking all other documents for the various condominium corporations so that Unit Owners will have access without the expense and hassles many such as ourselves have experienced and continue to experience.  Please contact us for the retrieving of documents.  More than just those listed at this time may be posted.

The following is from a post that is being updated as we get materials.  If you know of dates and projects not listed, please share that information.  Also, please correct any errors you may see.

http://sohocentralcondominium.blogspot.com/2013/03/master-deeds-comparative-analysis.html

Master Deeds Comparative Analysis


This post will be updated as we obtain additional Master Deeds for all the condominium projects built by Century Properties.  As we all read the master deeds and by-laws a noticeable similarity as well as increased controlling additions are made with each new project.

Please send or supply us with your Master Deed plus other documents that may not be listed for scanning and posting.  If anyone has any comments and information to add in this analysis, please let us know your observations.


Condominium: Documents
Initiation Date/Turnover Date
Significant Deed Change Notes

FOUND

soon to be posted Bel-Air Soho (They had won their freedom.):  Deed Other docs: 
?/?


Soho Central:  Deed  Other docs:  Articles of IncorporationBy-LawsRules & Regulations, Certificate of Occupancy
2005/2009

Gramercy Residences:  DeedAmendment2nd Amendment  Other docs:  Articles of IncorporationBy-Laws,  Rules & RegulationsCertificate of Occupancy
?/2010-2011
*Soho Central's had a majority vote needed to amend while this project's deed requires 2/3.

Knightsbridge Residences:  Deed  Other docs:  Articles of Incorporation, By-Laws, Rules & Regulations, Certificate of Occupancy
?/?

Gramercy By-Laws not in agreement with Master Deed

Gramercy By-Laws not in agreement with Master Deed

Well, well, well, where do we know this from at Soho Central?  Again?  Yes, our condominium corporation has the same problem.  When I pointed this out before a Board meeting we lucked upon, a Director said they were not aware of this and were actually surprised.  Imagine, Directors on the Board not knowing the basic documents of the condominium corporation whose Board they sit upon.
Does this make everyone feel warm and cozy about the place they live and at which they own a unit(s)?

For those at Gramercy, be careful they do not try to pull a fast one with an amendment that has more than just correcting the language to be in agreement with the Master Deed and law for a mixed-use buildings - http://sohocentralcondominium.blogspot.com/2014/03/expected-amendments-at-2014-annual.html


Gramercy By-Laws, see Section 11. Voting:

 
(Click here for a .pdf of the extract above.)
 
Gramercy Master Deed, see Section 3 a) and Section 9 e):

 




(Click here for a .pdf of the extract above.)

Thursday, March 27, 2014

"Restrictions" aka Rules & Regulations

"Restrictions" aka Rules & Regulations

This link is to the "The Knightsbridge Residences Basic Home Restrictions."  What are the non-basic restrictions?

http://sohocentralcondominium.blogspot.com/2013/03/master-deeds-comparative-analysis.html

You will see at this page that other documents are needed and others may be added that are not listed.  The page will be updated as the material comes in.  Later today Gramercy materials will be added to for viewing.

We here at Soho Central have had a ridiculous time securing documents.  I have heard the same for other condominium corporations.  By condominium corporation I do not mean the developer/builder.  I mean the former project which is no longer the property of the developer/builder.  Condominium corporations to which all Unit Owners are members are obliged to give documents under Section 74 of the Corporation Code.  So I made a commitment to assist others by scanning and posting what we have paid copy fees for as to allow others access to materials free of such charges and the days, weeks, months and years of denial.

Please feel free to send or hand deliver material for scanning.  All personal names and other identifying information will be deleted since many have expressed fear.

NEWS: Change for Otis in the Philippines

NEWS:  Change for Otis in the Philippines

I have written and talked about the problem with the elevators.  Many know that I called Otis headquarters in Connecticut and spoke with them here.  After speaking with them and others, I could not get a full and complete answer as to what has been the entire history of our elevators.  But, I believe all parties have a part to play in this mess.  Of course, the blame always ends with the builder since they should have been watching and monitoring what was going on.  Now we read and hear words with work being done the results of which are two elevators still not working and an awful job on fixing the entrances.  This disgusting mess needs investigation.

Perhaps Concepcion can release all the records and give the entire part of this history from the company they now have a majority.  I would think that purchasing not only includes Assets but the Liabilities.  If there are problems, they need to disclose all they have so the path to the truth can be obtained.

Concepcion buys into Otis

By


Read more: http://business.inquirer.net/166598/concepcion-buys-into-otis#ixzz2xDsBCDy6

The Concepcion group is breaking into the elevator and escalator business with the acquisition of a majority stake in Otis E&M Co. Philippines, coming in as joint venture partner of American multinational conglomerate United Technologies Corp. (UTC).
In a disclosure to the Philippine Stock Exchange on Thursday, newly listed Concepcion Industrial Corp. (CIC) said its board had approved the formation of a joint venture with UTC through the acquisition of a majority stake in Otis E&M.
Otis is one of the leading providers of elevators and escalators in the country. It has been doing business locally since 1935, making it the country’s first elevator company.
The acquisition will be made through Concepcion Carrier Air Conditioning, in turn a joint venture between CIC and Carrier Air Conditioning Philippines.
“The acquisition of Otis will strengthen CIC’s building and industrial solutions segment, creating added synergies and a new strategic growth platform aligned with a global trend and building solution trends,” the disclosure said.
CIC is the country’s leading airconditioning and refrigeration appliance manufacturer. It is also the local distributor of the products of Chinese manufacturing powerhouse GD Midea Holdings, the largest appliance company in the world.
The company debuted on the local stock exchange late last year after 50 years of operating as a family-owned corporation. CIC, which has been growing at a compounded annual growth rate of 13 percent in the last three years, is upbeat on its growth trajectory in the years ahead.
UTC, on the other hand, is a diversified company that provides a broad range of high-technology products and services to the global aerospace and building systems industries.
Otis elevators and escalators are part of its commercial businesses, which also include heating, ventilation, air conditioning, fire and security systems, building automation and controls.

Wednesday, March 26, 2014

Revised MISSING NOTICE



Certificate of Occupancy

Certificate of Occupancy

The first photos are from the insulting non-answer reply that was one of several replies to the 17 letters Ryan & I had sent in Nov-Dec, 2012.  These letters were sent due to many questions and requests ignored over many months.  Of course, the sick joke continued with more refusal in opposition to the law such as Section 74 of the Corporation Code.

Why the refusal in this case to at least make a copy of the Certificate of Occupancy they claim the condominium corporation has in its possession?  Below this is a copy of the Certificate of Occupancy for Gramercy in Makati.



You will note that this is a Certified True Copy.  What this means is not fully understood.  But someone was told that it means temporary since not everything was complete.  I also notice boxes not checked on the left which would seem to give credence to that thought.  They will be going to the city to ask more questions.  So what kind of Certificate does Soho Central have?  Yes, so much not answered and months to years of struggle to find out the reasons for the delay.


(Click here for a .pdf of the document.)

Ryan's Elevator Complaint on the Inadequate Reply to Present Condominium Corporation Documents

Ryan's Elevator Complaint on the Inadequate Reply to Present Condominium Corporation Documents

So much kept from the members, Unit Owners, of the Soho Central Condominium Corporation.  Why all the secrecy by the unelected?  Why is the Corporation Code ignored?  Where are the notices not posted and why so much confusion and lack of answers as to the entire history of the elevators?











Sunday, March 23, 2014

A bit of CPA analysis on the SOHO Central Audited Financial Statements

A bit of CPA analysis on the SOHO Central Audited Financial Statements

Below is the accompanying letter on Soho Central Audit observations based upon the Audited Financial Statements.  I had sent out a previous request for analysis and this thankful work has now been received - http://sohocentralcondominium.blogspot.com/2014/03/audited-financial-statements-reports.html .  This is followed by a link to four spreadsheets with the concerned analysis:  Comparative Income Statement, Statements of Financial Position, copies of cash flows, and a statement on Variance. The conversion of the spreadsheets was not possible to a .pdf file for easy viewing.

Please take the time to review and ask others to assist in understanding the very good work that has now been done if you are not familiar with accounting statements.






(Click for a .pdf of the above letter.)

The following link is for the spreadsheets:

(Click for a .xls of the spreadsheets.)

The Shining at Azure?

The Shining at Azure?




The brochure below is placed sideways due to its length.  What has struck me as so much in ads are the photos and their reflection. Please carefully compare page 1 to page 2 and then carefully try to also place the buildings in position for the photo on page 4.  There is much in the photos but do not get lost among the trees that you do not see the forest.





(Click here for a .pdf of the brochure.)
 
 

Saturday, March 22, 2014

The Horse

The Horse



(The video may not play on certain devices so use this link in a web browser for the clip - https://www.youtube.com/watch?feature=player_embedded&v=y_PZPpWTRTU )

OOPS!  No, not that horse, this horse...



Seems as though the horse at Knightsbridge had one too many drinks putting that lampshade on as a hat.  Or, is that really a lamp.  Perhaps to give grow light to all withering plants on the wall of pots in podville.

Uh oh, what did "The Knightsbridge Residences Basic Home Restrictions" say about picture taking:  "9.  Security & Safety g.  Taking pictures such as photo and/or video shoot of common areas such as lobby, garden, hallways, and common areas with facilities & amenities is not allowed."  I guess those drunken horses need to be kept secret.

Thursday, March 20, 2014

Concierge aka Front Desk & the unathorized

Concierge aka Front Desk & the unauthorized

I was going to write about this before when I saw someone who was not authorized standing behind the concierge desk looking at all that was there to see.  When they saw me that day they immediately walked to the front.  Now I was told of another person.  I could name these people since I know their closeness to some.  But, who else is taking advantage of who they know?

This is not good and continues to demonstrate the lack of managing the building appropriately for the Unit Owners.

Elevator Drop

Elevator Drop

This is one of the more serious problems with the elevators in their history here at Soho Central.  I was just told this afternoon by someone that their friend had experienced a drop in an elevator yesterday of several floors.  I was told that when it stopped the buttons would not work and they had to go out through the roof of the car.  Does anyone know more information about this?  I was also told a complaint was filed with the city.

Has anyone experienced dropping or stopping with the doors not opening lately?  Please let us know.

UPDATE (03/22/14):  Guess what was just posted, yes, another one of the notices about preventive maintenance.  Is this comforting when the elevators drops, the other odd noises are heard, bumps are felt when in motion, dings sound with no elevator arriving, lights of red/green are reversed such as on the 35th floor, etc.?  I feel sooooo comforted.  Don't you feel the comfort with such service?

Wednesday, March 19, 2014

Presidential Decree No. 957

Presidential Decree No. 957

 After once again hearing about the Title problem for those Unit Owners trying to obtain their title after being paid in full which may include loans, I have placed the entire Decree below in addition to the links I have placed within posts and the link on the side of the page for the blog.  I would encourage everyone to read this Decree and Section 25 for those with the problem regarding obtaining titles from the developers.  This is old and sad news.  There are many excuses for their not giving titles and a common one is proof of payment of real estate taxes.  Another of the many excuses included having a loan.  Yes, then the ORIGINAL title is with the bank so a Certified Copy needs to be gotten for the Unit Owner.  There is only one valid excuse read in Section 25 below.

If there is no loan, the city does not have the ORIGINAL and you are given a plain copy by the developer, start to think about this.  Why a plain copy?  Where is the ORIGINAL?  When there is no loan at this point, demand the ORIGINAL since a plain copy (worthless) or certified copy is not necessary.  I have been told that this is still taking place.

So if no loan and no ORIGINAL title, why?  For all those in nations where having or not having the actual (original) title in one's hands is unimportant, not so in the Philippines.  Even though you may have paid in full with no loan, without possession of the original title it may be used by others as collateral.  YES!  Imagine and think about this and your property.  If used as collateral by others and the loan goes bad, the party holding the original title as collateral takes your fully paid property.

When I had first learned of this I wrote and talked about it.  Word spread among the many from those I had contact with and they demanded their original titles.  But, the practice continues.  If paid in full with no loans, GET THE ORIGINAL TITLE NOW.  Bring a copy of this Decree.  If there is a loan, get a certified copy since the bank has it.  And, verify that the bank does have it.  Trust no one and get everything confirmed fully in writing and signed!

If the developer gives you hard time, ask in writing where the ORIGINAL title is and state what you may have been given such as a plain copy or certified copy.  Then ask in writing if the title is being used as collateral.  Make all your statements in a properly addressed letter and deliver it in person having a copy of the letter acknowledged with a stamp.  Then seek legal advice from a lawyer.
 
Read the Decree which is law.  No matter what is in the Master Deeds, By-Laws, Rules & Regulations some call Restrictions for condominium corporations the law is above all else.  These and other documents may have parts that are not legal even though they were submitted to the government for filing and possible review.  These filings and reviews are not to determine every legal aspect but what they might want to be there and not what is added by the developers.
 
 
MALACA√ĎANG
M a n i l a
PRESIDENTIAL DECREE No. 957 July 12, 1976

REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF
 
WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent human settlement and to provide them with ample opportunities for improving their quality of life;
WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or sellers have reneged on their representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus endangering the health and safety of home and lot buyers;
WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators, such as failure to deliver titles to the buyers or titles free from liens and encumbrances, and to pay real estate taxes, and fraudulent sales of the same subdivision lots to different innocent purchasers for value;
WHEREAS, these acts not only undermine the land and housing program of the government but also defeat the objectives of the New Society, particularly the promotion of peace and order and the enhancement of the economic, social and moral condition of the Filipino people;
WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and condominium businesses be closely supervised and regulated, and that penalties be imposed on fraudulent practices and manipulations committed in connection therewith.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:
Title I
TITLE AND DEFINITIONS
Section 1. Title. This Decree shall be known as THE SUBDIVISION AND CONDOMINIUM BUYERS' PROTECTIVE DECREE.
Sec. 2. Definition of Terms When used in this Decree, the following terms shall, unless the context otherwise indicates, have the following respective meanings:
(a) Person. "Person" shall mean a natural or a juridical person. A juridical person refers to a business firm whether a corporation, partnership, cooperative or associations or a single proprietorship.
(b) Sale or sell. "Sale" or "sell" shall include every disposition, or attempt to dispose, for a valuable consideration, of a subdivision lot, including the building and other improvements thereof, if any, in a subdivision project or a condominium unit in a condominium 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.
(c) Buy and purchase. The "buy" and "purchase" shall include any contract to buy, purchase, or otherwise acquire for a valuable consideration a subdivision lot, including the building and other improvements, if any, in a subdivision project or a condominium unit in a condominium project.
(d) Subdivision project. "Subdivision project" shall mean a tract or a parcel of land registered under Act No. 496 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.
(e) Subdivision lot. "Subdivision lot" shall mean any of the lots, whether residential, commercial, industrial, or recreational, in a subdivision project.
(f) Complex subdivision plan. "Complex subdivision plan" shall mean a subdivision plan of a registered land wherein a street, passageway or open space is delineated on the plan.
(g) Condominium project. "Condominium project" shall mean the entire parcel of real property divided or to be divided primarily for residential purposes into condominium units, including all structures thereon.
(h) Condominium unit. "Condominium unit" shall mean a part of the condominium project intended for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part of parts of floors) in a building or buildings and such accessories as may be appended thereto.
(i) Owner. "Owner" shall refer to the registered owner of the land subject of a subdivision or a condominium project.
(j) Developer. "Developer" shall mean the person who develops or improves the subdivision project or condominium project for and in behalf of the owner thereof.
(k) Dealer. "Dealer" shall mean any person directly engaged as principal in the business of buying, selling or exchanging real estate whether on a full-time or part-time basis.
(l) Broker. "Broker" shall mean any person who, for commission or other compensation, undertakes to sell or negotiate the sale of a real estate belonging to another.
(m) Salesman. "Salesman" shall refer to the person regularly employed by a broker to perform, for and in his behalf, any or all functions of a real estate broker.
(n) Authority. "Authority" shall mean the National Housing Authority.
Title II
REGISTRATION AND LICENSE TO SELL
Sec. 3. National Housing Authority The National Housing Authority shall have exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of this Decree.
Sec. 4. Registration of Projects The registered owner of a parcel of land who wishes to convert the same into a subdivision project shall submit his subdivision plan to the Authority which shall act upon and approve the same, upon a finding that the plan complies with the Subdivision Standards' and Regulations enforceable at the time the plan is submitted. The same procedure shall be followed in the case of a plan for a condominium project except that, in addition, said Authority shall act upon and approve the plan with respect to the building or buildings included in the condominium project in accordance with the National Building Code (R.A. No. 6541).
The subdivision plan, as so approved, shall then be submitted to the Director of Lands for approval in accordance with the procedure prescribed in Sec. 44 of the Land Registration Act (Act No. 496, as amended by R.A. No. 440): Provided, that it case of complex subdivision plans, court approval shall no longer be required. The condominium plan as likewise so approved, shall be submitted to the Register of Deeds of the province or city in which the property lies and the same shall be acted upon subject to the conditions and in accordance with the procedure prescribed in Sec. 4 of the Condominium Act (R.A. No. 4726).
The owner or the real estate dealer interested in the sale of lots or units, respectively, in such subdivision project or condominium project shall register the project with the Authority by filing therewith a sworn registration statement containing the following information:
(a) Name of the owner;
(b) The location of the owner's principal business office, and if the owner is a non-resident Filipino, the name and address of his agent or representative in the Philippines is authorized to receive notice;
(c) The names and addresses of all the directors and officers of the business firm, if the owner be a corporation, association, trust, or other entity, and of all the partners, if it be a partnership;
(d) The general character of the business actually transacted or to be transacted by the owner; and
(e) A statement of the capitalization of the owner, including the authorized and outstanding amounts of its capital stock and the proportion thereof which is paid-up.
The following documents shall be attached to the registration statement:
(a) A copy of the subdivision plan or condominium plan as approved in accordance with the first and second paragraphs of this section.
(b) A copy of any circular, prospectus, brochure, advertisement, letter, or communication to be used for the public offering of the subdivision lots or condominium units;
(c) In case of a business firm, a balance sheet showing the amount and general character of its assets and liabilities and a copy of its articles of incorporation or articles of partnership or association, as the case may be, with all the amendments thereof and existing by-laws or instruments corresponding thereto.
(d) A title to the property which is free from all liens and encumbrances: Provided, however, that in case any subdivision lot or condominium unit is mortgaged, it is sufficient if the instrument of mortgage contains a stipulation that the mortgagee shall release the mortgage on any subdivision lot or condominium unit as soon as the full purchase price for the same is paid by the buyer.
The person filing the registration statement shall pay the registration fees prescribed therefor by the Authority.
Thereupon, the Authority shall immediately cause to be published a notice of the filing of the registration statement at the expense of the applicant-owner or dealer, in two newspapers general circulation, one published in English and another in Pilipino, once a week for two consecutive weeks, reciting that a registration statement for the sale of subdivision lots or condominium units has been filed in the National Housing Authority; that the aforesaid registration statement, as well as the papers attached thereto, are open to inspection during business hours by interested parties, under such regulations as the Authority may impose; and that copies thereof shall be furnished to any party upon payment of the proper fees.
The subdivision project of the condominium project shall be deemed registered upon completion of the above publication requirement. The fact of such registration shall be evidenced by a registration certificate to be issued to the applicant-owner or dealer.
Sec. 5. License to sell. Such owner or dealer to whom has been issued a registration certificate shall not, however, be authorized to sell any subdivision lot or condominium unit in the registered project unless he shall have first obtained a license to sell the project within two weeks from the registration of such project.
The Authority, upon proper application therefor, shall issue to such owner or dealer of a registered project a license to sell the project if, after an examination of the registration statement filed by said owner or dealer and all the pertinent documents attached thereto, he is convinced that the owner or dealer is of good repute, that his business is financially stable, and that the proposed sale of the subdivision lots or condominium units to the public would not be fraudulent.
Sec. 6. Performance Bond. No license to sell subdivision lots or condominium units shall be issued by the Authority under Sec. 5 of this Decree unless the owner or dealer shall have filed an adequate performance bond approved by said Authority to guarantee the construction and maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full development of the subdivision project or the condominium project and the compliance by the owner or dealer with the applicable laws and rules and regulations.
The performance bond shall be executed in favor of the Republic of the Philippines and shall authorize the Authority to use the proceeds thereof for the purposes of its undertaking in case of forfeiture as provided in this Decree.
Sec. 7. Exempt transactions. A license to sell and performance bond shall not be required in any of the following transactions:
(a) Sale of a subdivision lot resulting from the partition of land among co-owners and co-heirs.
(b) Sale or transfer of a subdivision lot by the original purchaser thereof and any subsequent sale of the same lot.
(c) Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee in the ordinary course of business when necessary to liquidate a bona fide debt.
Sec. 8. Suspension of license to sell. Upon verified complaint by a buyer of a subdivision lot or a condominium unit in any interested party, the Authority may, in its discretion, immediately suspend the owner's or dealer's license to sell pending investigation and hearing of the case as provided in Section 13 hereof.
The Authority may motu proprio suspend the license to sell if, in its opinion, any information in the registration statement filed by the owner or dealer is or has become misleading, incorrect, inadequate or incomplete or the sale or offering for a sale of the subdivision or condominium project may work or tend to work a fraud upon prospective buyers.
The suspension order may be lifted if, after notice and hearing, the Authority is convinced that the registration statement is accurate or that any deficiency therein has been corrected or supplemented or that the sale to the public of the subdivision or condominium project will neither be fraudulent not result in fraud. It shall also be lifted upon dismissal of the complaint for lack of legal basis.
Until the final entry of an order of suspension, the suspension of the right to sell the project, though binding upon all persons notified thereof, shall be deemed confidential unless it shall appear that the order of suspension has in the meantime been violated.
Sec. 9. Revocation of registration certificate and license to sell. The Authority may, motu proprio or upon verified complaint filed by a buyer of a subdivision lot or condominium unit, revoke the registration of any subdivision project or condominium project and the license to sell any subdivision lot or condominium unit in said project by issuing an order to this effect, with his findings in respect thereto, if upon examination into the affairs of the owner or dealer during a hearing as provided for in Section 14 hereof, if shall appear there is satisfactory evidence that the said owner or dealer:
(a) Is insolvent; or
(b) has violated any of the provisions of this Decree or any applicable rule or regulation of the Authority, or any undertaking of his/its performance bond; or
(c) Has been or is engaged or is about to engage in fraudulent transactions; or
(d) Has made any misrepresentation in any prospectus, brochure, circular or other literature about the subdivision project or condominium project that has been distributed to prospective buyers; or
(e) Is of bad business repute; or
(f) Does not conduct his business in accordance with law or sound business principles.
Where the owner or dealer is a partnership or corporation or an unincorporated association, it shall be sufficient cause for cancellation of its registration certificate and its license to sell, if any member of such partnership or any officer or director of such corporation or association has been guilty of any act or omission which would be cause for refusing or revoking the registration of an individual dealer, broker or salesman as provided in Section 11 hereof.
Section 10. Registers of subdivision lots and condominium units. A record of subdivision lots and condominium units shall be kept in the Authority wherein shall be entered all orders of the Authority affecting the condition or status thereof. The registers of subdivision lots and condominium units shall be open to public inspection subject to such reasonable rules as the Authority may prescribe.
Title III
DEALERS, BROKERS AND SALESMEN
Section 11. Registration of dealers, brokers and salesmen. No real estate dealer, broker or salesman shall engage in the business of selling subdivision lots or condominium units unless he has registered himself with the Authority in accordance with the provisions of this section.
If the Authority shall find that the applicant is of good repute and has complied with the applicable rules of the Authority, including the payment of the prescribed fee, he shall register such applicant as a dealer, broker or salesman upon filing a bond, or other security in lieu thereof, in such sum as may be fixed by the Authority conditioned upon his faithful compliance with the provisions of this Decree: Provided, that the registration of a salesman shall cease upon the termination of his employment with a dealer or broker.
Every registration under this section shall expire on the thirty-first day of December of each year. Renewal of registration for the succeeding year shall be granted upon written application therefor made not less than thirty nor more than sixty days before the first day of the ensuing year and upon payment of the prescribed fee, without the necessity of filing further statements or information, unless specifically required by the Authority. All applications filed beyond said period shall be treated as original applications.
The names and addresses of all persons registered as dealers, brokers, or salesmen shall be recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority which shall be open to public inspection.
Section 12. Revocation of registration as dealers, brokers or salesmen. Registration under the preceding section may be refused or any registration granted thereunder, revoked by the Authority if, after reasonable notice and hearing, it shall determine that such applicant or registrant:
1. Has violated any provision of this Decree or any rule or regulation made hereunder; or
2. Has made a material false statement in his application for registration; or
3. Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or condominium unit; or
4. Has demonstrated his unworthiness to transact the business of dealer, broker, or salesman, as the case may be.
In case of charges against a salesman, notice thereof shall also be given the broker or dealer employing such salesman.
Pending hearing of the case, the Authority shall have the power to order the suspension of the dealer's, broker's, of salesman's registration; provided, that such order shall state the cause for the suspension.
The suspension or revocation of the registration of a dealer or broker shall carry with it all the suspension or revocation of the registrations of all his salesmen.
Title IV
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE
Section 13. Hearing. In the hearing for determining the existence of any ground or grounds for the suspension and/or revocation of registration certificate and license to sell as provided in Sec. 8 and 9 hereof, the following shall be complied with:
(a) Notice. No such hearing shall proceed unless the respondent is furnished with a copy of the complaint against him or is notified in writing of the purpose of such hearing.
(b) Venue. The hearing may be held before the officer or officers designated by the Authority on the date and place specified in the notice.
(c) Nature of proceeding. The proceedings shall be non-litigious and summary in nature without regard to legal technicalities obtaining in courts of law. The Rules of court shall not apply in said hearing except by analogy or in a suppletory character and whenever practicable and convenient.
(d) Power incidental to the hearing. For the purpose of the hearing or other proceeding under this Decree, the officer or officers designated to hear the complaint shall have the power to administer oaths, subpoena witnesses, conduct ocular inspections, take depositions, and require the production of any book, paper, correspondence, memorandum, or other record which are deemed relevant or material to the inquiry.
Section 14. Contempt.
(a) Direct contempt. The officer or officers designated by the Authority to hear the complaint may summarily adjudge in direct contempt any person guilty of misbehavior in the presence of or so near the said hearing officials as to obstruct or interrupt the proceedings before the same or of refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so. The person found guilty of direct contempt under this section shall be punished by a fine not exceeding Fifty (P50.00) Pesos or imprisonment not exceeding five (5) days, or both.
(b) Indirect contempt. The officer or officers designated to hear the complaint may also adjudge any person in indirect contempt on grounds and in the manner prescribed in Rule 71 of the Revised Rules of Court.
Section 15. Decision. The case shall be decided within thirty (30) days from the time the same is submitted for decision. The Decision may order the revocation of the registration of the subdivision or condominium project, the suspension, cancellation, or revocation of the license to sell and/or forfeiture, in whole or in part, of the performance bond mentioned in Sec. 6 hereof. In case forfeiture of the bond is ordered, the Decision may direct the provincial or city engineer to undertake or cause the construction of roads and of other requirements for the subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited. Such decision shall be immediately executory and shall become final after the lapse of 15 days from the date of receipt of the Decision.
Section 16. Cease and Desist Order. Whenever it shall appear to the Authority that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of the provisions of this Decree, or of any rule or regulation thereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issue a cease and desist order to enjoin such act or practices.
Section 17. Registration. All contracts to sell, deeds of sale and other similar instruments relative to the sale or conveyance of the subdivision lots and condominium units, whether or not the purchase price is paid in full, shall be registered by the seller in the Office of the Register of Deeds of the province or city where the property is situated.
Whenever a subdivision plan duly approved in accordance with Sec. 4 hereof, together with the corresponding owner's duplicate certificate of title, is presented to the Register of Deeds for registration, the Register of Deeds shall register the same in accordance with the provisions of the Land Registration Act, as amended: Provided, however, that it there is a street, passageway or required open space delineated on a complex subdivision plan hereafter approved and as defined in this Decree, the Register of Deeds shall annotate on the new certificate of title covering the street, passageway or open space, a memorandum to the effect that except by way of donation in favor of a city or municipality, no portion of any street, passageway, or open space so delineated on the plan shall be closed or otherwise disposed of by the registered owner without the requisite approval as provided under Sec. 22 of this Decree.
Section 18. Mortgages. No mortgage on any unit or lot shall be made by the owner or developer without prior written approval of the Authority. Such approval shall not be granted unless it is shown that the proceeds of the mortgage loan shall be used for the development of the condominium or subdivision project and effective measures have been provided to ensure such utilization. The loan value of each lot or unit covered by the mortgage shall be determined and the buyer thereof, if any, shall be notified before the release of the loan. The buyer may, at his option, pay his installment for the lot or unit directly to the mortgagee who shall apply the payments to the corresponding mortgage indebtedness secured by the particular lot or unit being paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full payment thereto;
Section 19. Advertisements. Advertisements that may be made by the owner or developer through newspaper, radio, television, leaflets, circulars or any other form about the subdivision or the condominium or its operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public.
The owner or developer shall answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in brochures, advertisements and other sales propaganda disseminated by the owner or developer or his agents and the same shall form part of the sales warranties enforceable against said owner or developer, jointly and severally. Failure to comply with these warranties shall also be punishable in accordance with the penalties provided for in this Decree.
Sec. 20. Time of Completion. Every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and lighting facilities, which are offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters, letters or in any form of advertisement, within one year from the date of the issuance of the license for the subdivision or condominium project or such other period of time as may be fixed by the Authority.
Sec. 21. Sales Prior to Decree. In cases of subdivision lots or condominium units sold or disposed of prior to the effectivity of this Decree, it shall be incumbent upon the owner or developer of the subdivision or condominium project to complete compliance with his or its obligations as provided in the preceding section within two years from the date of this Decree unless otherwise extended by the Authority or unless an adequate performance bond is filed in accordance with Sec. 6 hereof.
Failure of the owner or developer to comply with the obligations under this and the preceding provisions shall constitute a violation punishable under Sections 38 and 39 of this Decree.
Sec. 22. Alteration of Plans. No owner or developer shall change or alter the roads, open spaces, infrastructures, facilities for public use and/or other form of subdivision development as contained in the approved subdivision plan and/or represented in its advertisements, without the permission of the Authority and the written conformity or consent of the duly organized homeowners association, or in the absence of the latter, by the majority of the lot buyers in the subdivision.
Sec. 23. Non-Forfeiture of Payments. No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.
Sec. 24. Failure to pay installments. The rights of the buyer in the event of this failure to pay the installments due for reasons other than the failure of the owner or developer to develop the project shall be governed by Republic Act No. 6552.
Where the transaction or contract was entered into prior to the effectivity of Republic Act No. 6552 on August 26, 1972, the defaulting buyer shall be entitled to the corresponding refund based on the installments paid after the effectivity of the law in the absence of any provision in the contract to the contrary.
Sec. 25. Issuance of Title. The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit. No fee, except those required for the registration of the deed of sale in the Registry of Deeds, shall be collected for the issuance of such title. In the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to the buyer, the owner or developer shall redeem the mortgage or the corresponding portion thereof within six months from such issuance in order that the title over any fully paid lot or unit may be secured and delivered to the buyer in accordance herewith.
Sec. 26. Realty Tax. Real estate tax and assessment on a lot or unit shall de paid by the owner or developer without recourse to the buyer for as long as the title has not passed the buyer; Provided, however, that if the buyer has actually taken possession of and occupied the lot or unit, he shall be liable to the owner or developer for such tax and assessment effective the year following such taking of possession and occupancy.
Sec. 27. Other Charges. No owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit. Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the lot or unit buyers actually residing in the subdivision or condominium project.
Sec. 28. Access to Public Offices in the Subdivisions. No owner or developer shall deny any person free access to any government office or public establishment located within the subdivision or which may be reached only by passing through the subdivision.
Sec. 29. Right of Way to Public Road. The owner or developer of a subdivision without access to any existing public road or street must secure a right of way to a public road or street and such right of way must be developed and maintained according to the requirement of the government and authorities concerned.
Sec. 30. Organization of Homeowners Association. The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development.
Sec. 31. Donations of roads and open spaces to local government. The registered owner or developer of the subdivision or condominium project, upon completion of the development of said project may, at his option, convey by way of donation the roads and open spaces found within the project to the city or municipality wherein the project is located. Upon acceptance of the donation by the city or municipality concerned, no portion of the area donated shall thereafter be converted to any other purpose or purposes unless after hearing, the proposed conversion is approved by the Authority.
Sec. 32. Phases of Subdivision. For purposes of complying with the provisions of this Decree, the owner or developer may divide the development and sale of the subdivision into phases, each phase to cover not less than ten hectares. The requirement imposed by this Decree on the subdivision as a whole shall be deemed imposed on each phase.
Sec. 33. Nullity of waivers. Any condition, stipulation, or provision in contract of sale whereby any person waives compliance with any provision of this Decree or of any rule or regulation issued thereunder shall be void.
Sec. 34. Visitorial powers. This Authority, through its duly authorized representative may, at any time, make an examination into the business affairs, administration, and condition of any person, corporation, partnership, cooperative, or association engaged in the business of selling subdivision lots and condominium units. For this purpose, the official authorized so to do shall have the authority to examine under oath the directors, officers, stockholders or members of any corporation, partnership, association, cooperative or other persons associated or connected with the business and to issue subpoena or subpoena duces tecum in relation to any investigation that may arise therefrom.
The Authority may also authorize the Provincial, City or Municipal Engineer, as the case may be, to conduct an ocular inspection of the project to determine whether the development of said project conforms to the standards and specifications prescribed by the government.
The books, papers, letters, and other documents belonging to the person or entities herein mentioned shall be open to inspection by the Authority or its duly authorized representative.
Sec. 35. Take-over Development. The Authority, may take over or cause the development and completion of the subdivision or condominium project at the expenses of the owner or developer, jointly and severally, in cases where the owner or developer has refused or failed to develop or complete the development of the project as provided for in this Decree.
The Authority may, after such take-over, demand, collect and receive from the buyers the installment payments due on the lots, which shall be utilized for the development of the subdivision.
Sec. 36. Rules and Regulations. The Authority shall issue the necessary standards, rules and regulations for the effective implementation of the provisions of this Decree. Such standards, rules and regulations shall take effect immediately after their publication three times a week for two consecutive weeks in any newspaper of general circulation.
Sec. 37. Deputization of law enforcement agencies. The Authority may deputize the Philippine Constabulary or any law enforcement agency in the execution of its final orders, rulings or decisions.
Sec. 38. Administrative Fines. The Authority may prescribe and impose fines not exceeding ten thousand pesos for violations of the provisions of this Decree or of any rule or regulation thereunder. Fines shall be payable to the Authority and enforceable through writs of execution in accordance with the provisions of the Rules of Court.
Sec. 39. Penalties. Any person who shall violate any of the provisions of this Decree and/or any rule or regulation that may be issued pursuant to this Decree shall, upon conviction, be punished by a fine of not more than twenty thousand (P20,000.00) pesos and/or imprisonment of not more than ten years: Provided, That in the case of corporations, partnership, cooperatives, or associations, the President, Manager or Administrator or the person who has charge of the administration of the business shall be criminally responsible for any violation of this Decree and/or the rules and regulations promulgated pursuant thereto.
Sec. 40. Liability of controlling persons. Every person who directly or indirectly controls any person liable under any provision of this Decree or of any rule or regulation issued thereunder shall be liable jointly and severally with and to the same extent as such controlled person unless the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the violation or cause of action.
Sec. 41. Other remedies. The rights and remedies provided in this Decree shall be in addition to any and all other rights and remedies that may be available under existing laws.
Sec. 42. Repealing clause. All laws, executive orders, rules and regulations or part thereof inconsistent with the provisions of this Decree are hereby repealed or modified accordingly.
Sec. 43. Effectivity. This Decree shall take effect upon its approval.
 
Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen hundred and seventy-six.

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