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December 2, 2014

HLURB BOARD RESOLUTION NO. 921-14

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 IV, 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.D. 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.D. 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 law to be registered with the HLURB:

2.1 All subdivisions, including residential, commercial, farmlot, and

industrial subdivisions; CacEIS

2.2 All condominiums, including residential and commercial

condominiums;
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 2.3 Any other similar projects, including cemeteries, memorial parks,
and columbaria.

SECTION 3. Objectives. — This Rules 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. DCcHAa

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.D. 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 Blg. 220, or any of their
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 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 inurnment of
cremated human remains. A columbarium may include an
"ossuary" which refers to the internment space for the bones of the
dead. acAESC

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.D. 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

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 intended for agricultural production, with a minimum lot area of
1000 sq.m. and with a 25% maximum allowable buildable area.
EScAID

4.14 "Industrial Subdivision" refers to a tract or parcel of land

registered under Act No. 496, as amended by P.D. 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.
ICcDaA

4.19 "Salesman or Salesperson" refers to any person engaged,

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 supervised, or regularly employed by a broker and who is required
by P.D. 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
the public. All representations pertaining to the project's payment and 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.
HSCcTD

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
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 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. TDAcCa

SECTION 10. Monitoring. — The HLURB, in the exercise of its visitorial

powers, may motu proprio 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.

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 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. IEDaAc

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 advertisements, including billboards, not
complying with the foregoing Rules and the guidelines that may be issued by the
HLURB pursuant hereto shall, within sixty (60) days 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, Queen City.

(SGD.) JEJOMAR C. BINAY

Vice-President of the Philippines &
Housing and Urban Development Coordinating Council Chairman

(SGD.) AUSTERE A. PANADERO

Undersecretary, Department of the Interior and Local Government

(SGD.) ANTONIO M. BERNARDO

Commissioner and Chief Executive Officer
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 Housing and Land Use Regulatory Board

(SGD.) JOSE VICENTE B. SALAZAR

Undersecretary, Department of Justice

(SGD.) RIA CORAZON A. GOLEZ-CABRERA

Commissioner
Housing and Land Use Regulatory Board

(SGD.) JAIME A. PACANAN

Undersecretary, Department of Public Works and Highways

(SGD.) LUIS ALVAREZ PAREDES

Commissioner
Housing and Land Use Regulatory Board

(SGD.) EMMANUEL F. ESGUERRA

Deputy Director-General, National Economic and Development Authority

(SGD.) LINDA L. MALENAB-HORNILLA, MNSA

Commissioner
Housing and Land Use Regulatory Board

Attested:

(SGD.) CHARITO B. LANSANG

Board Secretary
Housing and Land Use Regulatory Board

Published in The Philippine Star on January 30, 2015.

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Copyright 2022 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Law Encyclopedia 2022 9
 Endnotes

1 (Popup - Popup)
HLURB Memorandum Circular No. 001-15

ACT 496
BP 220
EO 648-1981
EO 90-1986
PD 957
PD 1529

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