ORDINANCE NO: 2020-447
(Sponsored by: Committee on Commerce, Trade & Industry, Economic Enterprise and Cooperatives)
"AN ORDINANCE PROVIDING FOR COMPREHENSIVE GUIDELINES IN THE DEVELOPMENT, MARKETING AND/OR SELLING OF SUBDIVISION LOTS IN THE CITY OF PAGADIAN, AND PENALIZING DEVELOPERS AND LICENSED REAL ESTATE BROKERS FOR VIOLATION THEREOF"
WHEREAS, in consideration of the rising demand for residential housing commensurate to the rapid pace of economic development in the City of Pagadian is the significant increase in the development of subdivision projects;
WHEREAS, alongside this reality comes the issue over the practice of real estate subdivision developers and/or licensed real estate brokers to conduct pre-selling of subdivision lots even without prior approval of the subdivision plan pursuant to City Ordinance No. 2010-309, where oftentimes--as had been observed--they reneged on their representations and obligations to provide and develop the road networks as well as equip the subdivision projects with the necessary facilities such as, but not limited to, drainage, sewerage, water systems, lighting systems and all other similar basic amenities;
WHEREAS, there were also reports of alarming magnitude of cases of swindling and fraudulent manipulations perpetrated by unscrupulous subdivision developers and/or licensed real estate brokers by either non-delivery of individual lot titles to the buyer or the lot titles delivered are not free from liens and encumbrances as guaranteed, or non-payment of real estate taxes due, and/or the fraudulent sales of same subdivision lots to different innocent purchasers for value;
WHEREAS, consistent with the State's policy to provide its citizenry affordable and decent home and provide them with ample opportunities for improving their quality of life, and in line with its thrust and mandate, it is now imperative and necessary for the City Government to adopt appropriate measures that will protect prospective buyers from falling victim of unscrupulous subdivision developers and/or licensed real estate brokers, hence, the necessity of formulating policy guidelines for the development, marketing and/or selling of subdivision lots in the City of Pagadian;
NOW THEREFORE, be it ordained by the Sangguniang Panlungsod (13th City Council) of Pagadian in session duly assembled that:
SECTION 1. Title. - This Ordinance shall be known as "An Ordinance Providing For Comprehensive Guidelines In The Development, Marketing And/Or Selling Of Subdivision Lots In The City Of Pagadian, And Penalizing Developers And Licensed Real Estate Brokers For Violation Thereof."
SECTION 2. Purpose. - This Ordinance aims to stop the wrong practice made by developers, real estate brokers, their agents or sellers wherein they market or sell subdivision lots to would-be buyers without authority making the transaction unscrupulous in nature and likewise to protect the interest of the buying public who wants to acquire subdivision lots.
SECTION 3. Definition of Terms. - The words and phrases used in this Ordinance are hereby defined as follows:
Land Owner - Shall refer to the registered owner of the land subject of a residential subdivision, a commercial or condominium project, an industrial subdivision project and/or a farm lot subdivision project.
Subdivision Lot - shall mean any of the lots, whether residential, commercial, industrial or recreational use or purpose.
Simple Subdivision - shall mean tract or parcel of land partitioned into two (2) or more lots not requiring open spaces for roads and amenities but having a resulting area of less than 1,000 square meters.
Complex Subdivision - shall mean a tract or a parcel of land which is partitioned primarily in to individual lots for commercial or residential use requiring provision of open spaces for roads and other amenities.
Development - shall mean any changes and improvements made in a certain subdivision area (lot).
Developer - shall mean the person who develops or improves the subdivision project for and in behalf of the owner.
Lot Buyer - is any individual, group or entity who has expressed the intention of purchasing/leasing a plot or plots through the payment of at least an initial fee (down payment) and a first payment/ amortization to the owners in terms and conditions agreed upon by both parties.
Licensed Real Estate Broker - shall mean any person licensed with PRC who for commission or any compensation, undertakes to sell or negotiate the sale of a real estate belonging to another by way of marketing using his/her entity with a team of persons under his/her supervision and care.
Accredited Sales agent- shall refer to the person/s regularly employed by a licensed real estate broker to perform, for and in his/her behalf, any or all the functions of a real estate broker.
Board or HLURB - shall mean the Housing and Land Use Regulatory Board.
SECTION 4. Scope of Application. - This Ordinance shall be applicable to all subdivision projects whether residential, condominium, commercial or farm lot subdivision as defined under Presidential Decree No. 957, Batas Pambansa Bilang 220 and other related laws, with or without housing components.
SECTION 5. Guidelines and Restrictions. - All real estate developers and/or licensed real estate brokers must strictly adhere and/or comply with the following guidelines as herein stipulated, to wit:
5.1 - The developer and/or licensed real estate broker shall only be allowed to sell subdivision lots with approved subdivision plan and with the corresponding development permit from the City Government of Pagadian and after having complied with all pertinent requirements provided under the Housing and Land Use Regulatory Board's (HLURB) guidelines, rules and regulations;
5.2 - All amenities, road lots, open spaces, and or planned provisions of complex subdivision shall be used and implemented as intended and not convertible to future usage or offered for sale by developer and licensed real estate broker/s.
5.3 - The marketing and/or selling of subdivision lots shall be handled by Licensed Real Estate Broker/s who shall be accountable when employing accredited sales agent/s under his/her supervision and control.
SECTION 9. Penalties. - Any Real Estate Developer and/or Licensed Real Estate Broker who shall violate any of the provisions of this Ordinance shall be meted with the following penalties, to wit:
For Real Estate Developer - A fine of not more than Five Thousand (P5,000.00) Pesos or an imprisonment of not less than six (6) months but not more than one (1) year or both at the discretion of the Court;
For Licensed Real Estate Broker - A fine of not more than Five Thousand (P5,000.00) Pesos or an imprisonment of not less than six (6) months but not more than one (1) year or both at the discretion of the Court. This penalty is without prejudice to the cancellation of license, permits, and/or barring from engaging similar business within the City of Pagadian.
SECTION 10. Separability Clause. - if for any reason, a part of this Ordinance is declared illegal or invalid, other parts or provisions hereof which are not affected thereby shall remain valid and in full force and effect.
SECTION 11. Repealing Clause. - All Previous Ordinance and rules/regulations which are inconsistent with the provisions of this ordinance are hereby deemed, modified or repealed accordingly.
SECTION 12. Effectivity Clause. - This Ordinance shall take effect fifteen (15) days after its publication in a newspaper of local or general circulation or upon posting in at least two (2) conspicuous places of the City of Pagadian.
ENACTED AND APPROVED by the Sangguniang Panlungsod (13th City Council) during its 50th Regular Session on 26 August 2020 at the SP Session Hall, Legislative Building, V. Sagun Street, San Francisco District, Pagadian City.