Real estate projects that have been issued cease and desist order by the HLURB

The Housing and Land Use Regulatory Board (HLURB) is a national government agency tasked as the planning, regulatory and quasi-judicial body for land use development and real estate and housing regulation.

Among its various functions, the most important is its mandate to implement Presidential Decree (PD) 957 also known as the Subdivision and Condominium Buyers’ Protective Decree (Note: The law itself is too long and complicated; you are best advised to read it if you have lots of free time).

Suffice it to say that this law seeks to closely supervise and regulate the real estate subdivision and condominium businesses and to impose penalties on fraudulent practices and manipulations committed by real estate developers and dealers, including their sales personnel.

Such fraudulent practices and manipulations by developers have included the following:

1. Failure to properly maintain subdivision roads, drainage, sewerage, water systems and other similar basic requirements that may become detrimental to the health and safety of home and lot buyers.
2. Failure to deliver titles to the buyers
3. Failure to deliver titles to the buyers free from liens and encumbrances
4. Failure to pay real estate tax
5. Fraudulent sales of the same subdivision lot to different innocent buyers; and more.

Before any real estate project can be sold to the public, the developer is required to secure a Certificate of Registration (CR) and a License to Sell (LTS) from the HLURB. Issuance of said documents requires the developer to submit several other documents which are meant to prove, among others, that:

1. The owner or real estate developer is reputable
2. The business is financially stable
3. The proposed sale of the subdivision lots or condominium units to the public would not be fraudulent

The above discussion on the function of HLURB is by no means complete. It is only meant to emphasize the importance of buying only from a developer whose project has been issued a Certificate of Registration and a License to Sell. Though not an absolute guarantee (they can be revoked by the HLURB), the CR and LTS are meant to ensure that you buy into a project that will be delivered to you problem-free.

For your guidance, here’s a link to real estate projects in Metro Manila which have been issued cease and desist order by the HLURB. Lack of Certificate of Registration and License to Sell are the most oft-repeated reasons for the cease and desist order.

In other regions, the reasons cited for the issuance of the cease and desist order vary from “incomplete development,” “foreclosed by mortgagee bank,“ “unauthorized alteration in the development plan,” “ failure to post performance bond,” “poor health of the owner/developer,” etal.

The following lists down by regions projects that have also been issued cease and desist order by the HLURB:

Region 1
Region 7 and 8
Region 10
Region 13

Prospective home buyers are always advised to conduct their own due diligence before committing to any property. This is one important step that you can do at the comfort of your home. Do note, however, that even HURB admits that this database is not always updated. Thus, if you find a project in the list, you must double check with the HLURB.

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Thank you so much.

jun sanchez
Licensed Real Estate Broker
PRC Registration Number 4562
M: 0915.965.1389
0923.594.4460

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Comments

  1. Hello jglenn,

    You are obviously pissed off by the HLURB. But your comment would have made more sense if you did not use too many acronyms. What’s NOV, HLDC, IVA and HB? The only thing I know is IRR or Implementing Rules and Regulations.

    Thanks

  2. jglenn jamero says:

    You are right for tellong PD 957/Buyers Protective Decree is very complicated mostly when certain sections of the decree needs for an IRR, then the frustrating part is that the agency do not have the teeth to implement the law and only for NOV which in equivalent to imposition of fines and penalties.HLDC developer of three projects in IVA have ceased and desist since 2008 yet still manage to sell plus with order of writ of execution to finish the project since 2011 until now nothing happens,,,, so is HLURB meither HUDCC really the agency designed to exercise to implement pertinent laws rules and regulations subject to this Decree? Check the HB perhaps may help.

  3. If a developer is issued a cease and desist order for a certain project, it doesn’t mean its other projects won’t be issued a License to Sell by the HLURB. It only means that the two projects you mentioned were able to comply with all the requirements of HLURB, while the first one (whose name you didn’t mention) wasn’t able to.

    By the way, a cease and desist order on a certain project may be temporary. If the developer is able to comply or complete all the requirements required by the HLURB while the cease and desist was in force, it can be lifted upon compliance by the developer.

    I hope that answers your question

    Thanks a lot Mr. Moran

  4. Luis R. Moran says:

    Foothills Realty Development Corporation of davao City, received a Cease and Desist order( CDO) last March 10,2009.But why is it that said developer was able to to have another 2 housing projects at Bago Gallera(project 90% finished) and Catalunan Grande,davao City(on Going).We are contemplating to file a class suit against the developer and her cohorts.
    we are recommending that HLURB
    will create an Inter Agency Developers WATCH(with representatives from NGO,HOA and GO’s.

    Samantha Executive Homes Homeowners Association,Davao City:HLURB registration # 12521

  5. Hello Kers,

    If the developer’s property is listed as not having a Certificate of Registration/License to Sell, it’s not supposed to sell its project in the first place; it’s a violation of PD 957. The problem with this law is it doesn’t have much teeth. Violators are penalized a measly P20,000 for selling without a license to sell. Thus, some developers would rather pay the P20,000 than not sell their projects. This is one law that badly needs to be amended.

    You have a better chance of being answered if you participate in HLURB’s forum. Here’s the link to its forum.

    Thanks for dropping by.

  6. If the property being purchased or acquired is on the list, what to do next?

    Can a person post a feedback or comment on the HLURB website? Is it functioning? I tried sending online comments to some of our local banks’ website. And in a few days, I got a reply from their customer service reps.

    I know only a few govt websites that are not as crappy as the others.

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