PD 957 Rule 5 6

PD 957 RULE 5 & 6
REPORTERS:
JEANH DENVRE B. DAANG

NELSON C. LEGASPI
MARCOUS ALFRED S. REGISTRADO
RULE V :REGISTRATION OF REAL ESTATE DEALERS,
BROKERS AND SALESMEN
Section 13. Application for Registration of Brokers and
Salesmen
 No broker or salesman shall engage in the business of
selling subdivision lots or condominium units without
securing a certificate of registration by filing with the
Board a registration statement in quadruplicate containing
the following information:
 a. Name, age and address
 b. If a corporation, partnership, or association, its office
address and branch offices and the names and addresses of
its executive officers and directors.
 c. Statement that applicant is qualified to act as real estate
broker or salesman pursuant to law.
 d. If applicant is a salesman, the name and address of the
dealer or broker who employs him, attaching a copy of
appointment.
 e. If the applicant is a broker, the names and addresses of
salesmen employed by him.
 Section 14. Certificate of Registration
 Expiration of certificate of registration for brokers and
salesman
 December 1 each year,
 Renewal granted upon filling application (30 or 60 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 specified by the Board.
 All applications filed beyond said period shall be treated as
original applications.
 DURATION OF REGISTRATION AND ITS RENEWAL:
Every registration under shall expire on the 31st day of
December of each year.
 Renewal of registration for the succeeding year starts in
the first working day of November of each year. All
applications filed beyond said period shall be penalized
as follows:
Section 15. Bonds
 The Bond required under Section 6 is Cash or surety bond –
accredited bonding company (private or government)
 The bond shall contain a clause stating among others that it shall
remain in full force and effect unless it is ordered, cancelled or
released by the Board.
 The bond shall be executed in favor of the Housing and Land Use
Regulatory Board conditioned upon the faithful and honest
discharge by the applicant, as well as the salesman working under
a broker or dealer, of their duties and shall further provide that
upon failure to discharge those duties, the applicant shall be liable
on the bond to any and all persons who may suffer loss by reason
of such failure.
Section 15. Bonds
 The amount of the bond shall be P5, 000 for Dealers/Brokers and
P1, 000 for Salesmen.
 These bonds shall no longer be required if equivalent bonds or
securities have already been posted by applicants for the same
purpose with other government agencies pursuant to law.
 A dealer, broker or salesman may apply in writing with the Board
for the cancellation and release of his bond stating therein his
reasons.
 In appropriate cases, the Board may require the applicant to cause
the publication of a notice there for at the latter's expense in a
newspaper of general circulation slating, among others, the fact of
such application.
Section 15. Bonds
Section 15. Bonds
 The proof of publication shall be submitted to the Board. Any
person, having any claim for money or property against the
dealer, broker or salesman in his real estate service or
practice, must file his claim with the Board within 15 days
from the date of publication.
 If the reason for the cancellation of the bond is his cessation
from further engaging in the business of selling subdivision
lots or condominium units, the dealer, broker or salesman
shall surrender his certificate of registration to the Board and
his name shall be cancelled from the Register of Dealers,
Brokers and Salesmen.
 These documents must be submitted to the PRC:
 NSO Certificate of birth or Philippine passport
 Transcript of records/college diploma
 Certificate of Registration, Professional Identification Card, or
DTI license
 NBI Clearance
 Notarized certificate from training provider
 Community tax certificate
 Four colored passport-size pictures with white background
 Real estate brokers exam application form
 Real Estate Broker License Requirements
 To be eligible to be a licensed real estate broker in the Philippines, one
must meet the following requirements:
 A bachelor’s degree in any college or university accredited by the
Commission on Higher Education (CHED)
 Must have earned 120 units of the required Continuing Professional
Education (CPE) at an accredited real estate service training provider
 Good moral character as evidenced by not having been convicted of any
crime
 Completed application with the PRC, who in turn will assess and approve
the said application. Upon approval, the Board of Real Estate Service of the
PRC will issue the permit to the applicant, in order for him or her to take the
exam.
 Must take and pass the real estate broker exam.
 Documents that Must be Submitted to the PRC
 In addition to the above requirements, the applicant must submit the following documents:
 Original and photocopy of certificate of birth from the National Statistics Office or a valid
Philippine passport
 Original and photocopy of transcript of records or college diploma
 Original and photocopy of a notarized certification of the applicant’ years of experience by
his employer or a prerequisite Certificate of Registration, Professional Identification Card,
or DTI license
 Clearance from the National Bureau of Investigation (NBI)
 Original and photocopy of a duly notarized certificate from the accredited seminar or
training provider
 Community tax certificate
 Four colored passport-size pictures with white background and complete nametag
 Real estate brokers exam application form
REFERENCES
PD 957 .PDF
http://hlurb.gov.ph/services/brokers/
https://www.lamudi.com.ph/journal/become-real-estate-
broker-philippines/
RULE VI: MISCELLANEOUS PROVISIONS
Section 16. Definition of Terms
For purposes of these rules, the following words and
phrases are defined:
 a. Board or HLURB - shall mean the Housing and Land
Use Regulatory Board.
 b. Block — a parcel of land bounded on the sides by
streets or alleys or pathways or other natural or man-
made features, and occupied by or intended for buildings.
All lands fronting on one side of a street between the
nearest streets, intersecting, meeting or crossing the
aforesaid street.
 c. Commercial Condominium - a building, or group of
buildings, used for office, businesses, professional
services and other commercial enterprise organized,
owned and maintained as a condominium.
 d. Common Areas - means the entire project excepting
all units separately granted, held or reserved.
 e. Community Facilities - facilities or structures intended
to serve common needs and for the benefit of the
community such as schools, places of worship, hospitals,
health centers, barangay centers and other similar
facilities/amenities per PD 1216.
 f. Condominium shall mean an interest in real property
consisting of a separate interest in a unit in a residential,
industrial or commercial building and an undivided interest in
common directly or indirectly, in the land on which it is located
and in other common areas of the building. A condominium
may include, in addition, a separate interest in other portions
of such real property. Title to the common areas, including the
land, or the appurtenant interests in such areas, may be held
by a corporation specially formed for the purpose in which the
holders of separate interests shall automatically be members
or shareholders, to the exclusive of others, in proportion to
the appurtenant interest of their respective units in the
common areas.
 An individual dwelling unit under individual ownership in a
multiple units development with common elements in
which:
 a. The units comprise not only the space enclosed by the unit
boundaries, but all material parts of the land within the space;
 b. The common element means all the property within the
development except the units;
 c. The common element is owned by all of the owners as
tenants in common. A building or group of buildings, in which
units are owned individually, and then structure, common areas
and facilities are owned by the owners on a proportional
undivided basis.
 g. Condominium Project means the entire parcel of real
property divided or to be divided in condominium, including all
structures thereon.
 h. Condominium Unit - means a part of the condominium project
intended for any type of independent use or ownership, including
one or more floors (or part or parts of floors) in a building or
buildings and such accessories as may be appended thereto.
 i. Dealer - shall mean any person directly engaged as principal in
the business of buying, selling or exchanging real estate whether
on full time or part-time basis. A bulk buyer shall mean any
person who acquires a lot or a portion of the subdivision and who,
with or without re-subdividing or introducing housing or other
facilities, sells the same, under its previous license to sell or in a
new license to sell in his name to the public.
 j. Decree - shall mean Presidential Decree No. 957 otherwise
known as "The Subdivision and Condominium Buyer's
Protective Decree."
 k. Dwelling Unit — structure designed or used as residence.
One or more rooms that may be used as a residence, each
unit having sleeping, cooking and toilet facilities. One or more
habitable rooms designed or intended for use by 1 or more
individuals as an independent and separate housekeeping
establishment in which separate kitchen and sanitary facilities
are provided for the exclusive use of such individual or
individuals, with a private entrance from outside the building
or from a common hallway or stairway inside the building.
Dwelling Types:
 1. Single Detached - a dwelling unit completely surrounded by
yards.
 2. Single Attached - a dwelling unit with one side attached to a
firewall.
 3. Duplex - a dwelling unit containing 2 separate living units
each of which is separated from another by a firewall and
provided with independent access.
 4. Rowhouse dwelling units containing 3 or more living units
designed in such a way that they a but each other and are
separated from each other by a firewall each unit provided with
independent access.
 l. Firewall - any wall which subdivides a building so as to
resist the spread of fire, by starting at the foundation and
extending continuously through all storeys to, or above
the roof. Extension above the roof is 1 millimeter.
 m. Frontage - the side of a lot which abuts a street.
 n. Living Unit - a dwelling, or portion thereof, providing
complete living facilities for one family, including
provisions for living, sleeping, cooking, eating, bathing
and toilet facilities and laundry facilities, the same as a
single-family dwelling.
 o. Lot - portion of a subdivision or any parcel of land intended
as a unit for transfer or ownership for building development.
 Types of Lots. - Lots shall be defined as follows:
 1. corner lot - a lot situated at the intersection of two or more
streets.
 2. regular lot - a lot fronting on one street and the remaining sides
bounded by lot lines.
 3. interior lot - a lot located at the inner portion of a block with a
minimum of three meter (3-m) wide access which forms part of the
lot.
 4. through lot - a lot bounded on two opposite sides by roads.
 5. irregular lot - any lot which is not rectangle nor square-shaped
 p. Medium Cost and Open Market refers to housing
projects where prices of house and lot packages are within
the suggested price ranges as determined through HUDCC
resolution and falling under the standards prescribed in
these rules.
 q. Open Space - shall refer to an area reserved exclusively
for parks, playgrounds, recreational uses, schools, roads,
places of worship, hospitals, health centers, barangay
centers and other similar facilities and amenities.
 r. Project - means the entire parcel of real property divided
or to be divided in condominiums, including all structures
thereon.
Section 17. Submission of Semestral Reports on
Operations
 Every owner or dealer of a registered subdivision or
condominium project shall submit to the Board semi-annual
reports on operations showing the sales status indicating
therein name of buyer, lot/block no., TCT no., date of
purchase, name of mortgagee, mode of acquisition, extent
/development status, changes in corporate officers and their
addresses within 60 days after the end of each semester.
Copies of corporate reports to the Securities and Exchange
Commission shall also be furnished to the Board.
Section 18. Display of Certificate of Registration and
License to Sell
 The Certificate of Registration and License to Sell issued by
the Board shall be displayed in a conspicuous place in the
principal office of the owner, dealer, broker or salesman, as
the case may be and a Xerox copy thereof in all its branches
and offices.
Section 19. Lost or Destroyed Certificate of
Registration or License
 Upon loss or destruction of a Certificate of Registration or
License to Sell a duplicate copy thereof may be issued by
the Board after satisfactory proof of such loss or
destruction, and payment of the prescribed fee. The fact
that such duplicate has been issued shall be made of
record.
.
Section 20. Advertisement
 All advertisements for the sale of subdivision lots and
condominium units shall be declared and approved by the
Board pursuant to Section 19 of the Decree.
Section 21. Time for Completion
 Every owner or developer shall construct and provide the facilities,
infrastructures, other forms of development, including water supply and
lighting facilities and as far as practicable improvements, 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 (1) year or within such other period of time as
may be fixed by the Board from the date of the issuance of license to sell
for the subdivision or condominium project.
 Request for extension of time to complete development of a subdivision or
condominium project may be granted only in cases where non-completion
of project is caused by fortuitous events, legal orders or such other reasons
that the board may deem fit/proper with the written notice to lot or unit
buyers without prejudice to the exercise of their rights pursuant to Section
23 of the Decree.
Section 21. Time for Completion
 The request for extension of time for completion shall be
accompanied by a revised work program duly signed and
sealed by a licensed engineer or architect with project
costing and financing scheme there for. In appropriate
cases, the Board may require the posting of additional
performance bond amounting to 20% of development
cost of the unfinished portion of the approved
development plan, or issue such orders it may deem
proper.
Section 22. Transfer of Ownership or Change of Name
 Request for transfer of ownership and/or change of name
may be granted only if there is a deed of absolute sale
over the subdivision and condominium project sought to
be transferred and/or the name thereof changed with an
undertaking on the part of the transferee to assume full
responsibility for the completion of the development
thereof.
Section 22. Transfer of Ownership or Change of Name
 The requirements in Sections 7 and 13 hereof shall be
observed whenever applicable. Such request for transfer
of ownership or change of name shall be published at
applicant's expense in a newspaper of general circulation
within the city or municipality where the project is located
at least once a week for two (2) consecutive weeks.
Section 23. Alteration of Plans
 Request for alteration of subdivision plans may be
granted if the requirements of Section 22 of the Decree
are complied with. Alteration of condominium plans shall
be in accordance with Section 4 of the Condominium Act
as amended by Sections 1 and 2 of RA 7899.
Section 24. Non-forfeiture of Payments
 No installment payment made by a buyer in a new or existing
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 and clearance from the Board desists from further
payment due to the failure of the owner or developer to
develop the 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.
Section 25. Registration of Conveyances
 Sales or conveyances of the subdivision lots and
condominium units shall be registered within 180 days
from execution thereof by the seller with the Register of
Deeds of the province or city where the property is
situated pursuant to Section 17 of the Decree. Except as
may otherwise be provided for by law, the Board may in
appropriate cases cause the Register of Deeds to cancel
registration, entries or annotations on titles made on this
regard.
Section 26. Mortgages
 Mortgage of any unit or lot by the owner or developer
shall be cleared with the Board pursuant to Section 18 of
the Decree.
Section 27. Realty Tax and Other Charges
 No realty tax assessment or other charges shall be
imposed on a lot or unit buyer except as provided for in
Section 26 and 27 of the Decree.
Section 28. Complaints Against Owners, Developers.
Dealers, Brokers and Salesmen
 Complaints or proceedings against owners, developers,
dealers, brokers and salesmen shall be resolved in
accordance with the Rules of Procedure to Govern the
Conduct of Hearings before the Board.
Section 29. Administrative Fines
 Any owner or dealer who fails to register an existing
subdivision project or condominium project within the
period prescribed under these rules and regulations shall
be penalized in accordance with the approved schedule
of fines. The implementation and payment of these
administrative fines shall not preclude criminal
prosecution of the offender under Section 39 of the
Decree.
Section 30. Criminal Penalties
 Any person violating any provisions of these rules shall be
guilty of an offense and shall suffer the penalties provided for
under Section 39 of the Decree.
Section 31. Identification of Lot Subject of Sale
 The owner or dealer of a subdivision project shall attach to
and shall form part of the sales document of any lot, a sketch
plan clearly showing the area, boundaries and dimensions of
the lot in relation with the block and the whole project, as well
as the location of the project in relation with public roads and
other land marks, to be certified by a licensed geodetic
engineer and signed by the seller and buyer.
Section 32. Broker/Salesman as Witness to Sales
 The broker or salesman who negotiated the sale of a
subdivision lot or condominium unit shall act as one of the
witnesses to the sales document with an indication of his
Certificate of Registration number and renewal date. If the
sale was directly made by the owner or dealer, that fact must
be so stated in the sales document.
Section 33. Fees
 The Board or the local government unit concerned shall
collect fees in accordance with the schedule of fees approved
by the Board or the local government concerned.
Section 34. Applicability
 These Rules shall apply only to residential subdivision and
condominium projects as defined by the Decree and related
laws.
Section 35. Transitory Provisions
 The provisions of Rule II. Section (5) Subsection (A) (1) and
Subsection (B) (2) of these Rules to the contrary
notwithstanding, and subject to further review thereof,
licensed architects who are not licensed environmental
planners may in the meantime still continue to sign site
development plans/subdivision development plans of
subdivision projects, for a period of 2 years from the date of
effectivity of these Rules.
Section 36. Separability Clause
 The provisions of these Rules are hereby declared
separable, and in the event any of such provisions are
declared null and void, the validity of all other provisions
shall not be affected thereby.
Section 37. Effectivity
 These Rules shall take effect immediately after its
publication once in any newspaper of general circulation.

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PD 957 RULE 5 & 6

JEANH DENVRE B. DAANG

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