Question & AnswerQ&A (HLURB ADMINISTRATIVE ORDER NO. 04, S. 2004)
The purpose of HLURB Resolution No. 764, Series of 2004 is to amend Sections 15, 16, and 17 of the Implementing Rules and Regulations (IRR) of Batasang Pambansa Blg. 220 to harmonize them with applicable provisions of BP 220 and PD 957, and to align with EO 45 Series of 2001 for simplification and faster processing of housing project permits.
Section 15 requires the Board to cause the publication, at the applicant's expense, of a notice of application for Certificate of Registration in a newspaper of general circulation for one publication in English or Pilipino. It must state that an application for registration for the sale of subdivision lots or condominium units has been filed and that corresponding documents are open for inspection. Additionally, a 3' x 6' billboard notice must be posted at the project site until the license to sell is issued.
If the applicant fails to publish the notice of filing within two weeks from receipt of the notice to publish from the Board, the owner/developer is required to re-file the application for the Certificate of Registration.
No owner or developer can sell any subdivision lot or condominium unit in a registered property without obtaining a License to Sell issued by the Board within two weeks from the registration of the project. The license is issued upon proper application, submission of a required work program and performance bond, and payment of the prescribed license fee.
The Performance Bond can be: A surety bond callable upon demand amounting to 10% of the development cost issued by a bonding company; a real estate mortgage over property other than the project valued at least 10% of development cost; or other security forms equivalent to 5% of development cost such as cash bond, fiduciary deposit, a certificate of guaranty by a bank, a bank letter certifying funds, or an irrevocable credit line for project development.
The Performance Bond ensures that the sale of subdivision lots or condominium units is not fraudulent and guarantees the completion of the unfinished portion of the project according to the approved plan.
They must establish that the proposed sale of the subdivision lots or condominium units to the public is not fraudulent.
The issuance of the Certificate of Registration will be withheld if there is opposition to the registration of the project during the publication period.