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Monday, February 2, 2015

HLURB releases new set of rules to protect buyers of condominium and real estate projects

THE PHILIPPINES’ housing board has released a new set of rules to protect buyers of condominium and real estate projects by imposing steeper penalties on erring brokers and agents.

Under Resolution 922 of the Housing and Land Use Regulatory Board (HLURB), all dealers, brokers, salespersons and businesses must first register with the agency before carrying out any sales transactions with the public.

They will be made to file a bond with the land use agency: for sales agents, P1,000; for brokers, P5,000; and for firms, P20,000.

Real estate brokers, who negotiate deals between property buyers and sellers, must first pass a licensure exam as required by law before facilitating the transaction.

Those found selling properties without the HLURB’s accreditation will be fined P10,000 and slapped with criminal charges while those engaging in property sales with expired registration will be fined P5,000. They can also be barred from securing a license to operate for future transactions.

A separate HLURB order also beefs up protection against false advertising by treating every feature included in promotional materials as “sales warranties” that can be held against the sellers.

“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,” the HLURB said through Resolution 921 signed Dec. 2, 2014. “All representations in an advertisement shall form part of the sales warranties enforceable against the owner or developer, jointly and severally.”

Developers must first secure the approval of the HLURB before publishing any ads for their projects. They also cannot advertise the project without securing a license to sell from the agency.

As in the resolution, all statements made regarding the payment and financing scheme, design and standards, amenities, facilities and other privileges “connected with the sale of the lots, including any building or improvement or any units thereof” will be treated as promises which the seller and builder must completely fulfill.
Source: Business World

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