Republic of the Philippines

Office of the President

Housing and Urban Development Coordinating Council
HOUSING AND LAND USE REGULATORY BOARD

BOARD RESOLUTION NO. 921

Series of 2014
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 N, 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.O.
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.O. 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 Jaw to be registered
with the HLURB:

2.1 All subdivisions, including residential, commercial,

farmlot, and industrial subdivisions;

2.2 All condominiums, including residential and

commercial condominiums;

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.
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.O. 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 Big. 220, or any of their 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.
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.O. 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 intended for agricultural production,
with a minimum lot area of 1000 sq.m. and with a
25% maximum allowable buildable area.
4.14 "Industrial Subdivision" refers to a tract or parcel
of land registered under Act No. 496, as amended by
P.O. 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.
4.19 "Salesman or Salesperson" refers to any person
engaged, supervised, or regularly employed by a broker
and who is required by P.O. 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.
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 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
Section 10. Monitoring.

The HLURB, in the exercise of its visitorial powers, may

motu propio 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.

xxxxxx
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)
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, Quezon
City.
 THANK YOU

THANK YOU
BOARD RESOLUTION NO.
921
Series
BOARD of 2014NO. 921
RESOLUTION
Series of 2014