QuestionsQuestions (HLRB ADMINISTRATIVE ORDER NO. 09, S. 1994)
Bulk-buying is the purchase by a person (natural or juridical) of more than one saleable lot or unit within an HLRB-approved subdivision for the purpose of re-selling the same with or without introducing alteration on the approved plan.
It addresses instances where a single person/entity buys multiple saleable lots/units to re-sell them, with or without altering the approved plans, in a way that can harm or disadvantage the buying public.
Presidential Decree (PD) 957 (and other related laws) is cited as the basis for protecting the buying public.
When the bulk buyer disposes of the lots through sale without any alteration as defined under PD 957; then the bulk buyer’s sale is treated as “subsequent sale under exempt transactions” under Sec. 7 of PD 957, so no HLRB license to sell is required.
The bulk buyer is considered to have made “subsequent sale” under exempt transactions under Sec. 7 of PD 957, and thus is no longer required to secure a license to sell from HLRB.
If the bulk buyer constructs housing/structures on the same lots without further subdividing individually titled lots and without introducing changes on the roads, water system, power facilities, drainage, and other facilities reflected in the approved subdivision plan (while conforming to the allowed density), the bulk buyer must secure a locational clearance from HLRB (or its deputee).
No further subdivision of individually titled lots; no changes on roads, water system, power facilities, drainage, and other facilities reflected in the approved subdivision plan; and compliance with allowed density per the approved subdivision plan.
The liability remains with the original owner/developer.
When the construction of housing units/structures on the same lots results in increased density as provided for in the subdivision plan.
Proof of: (1) consent of the owner/developer and the majority of the lot buyers or the HOA; and (2) sufficiency of existing facilities as required under existing standards, rules, and regulations.
If the bulk buyer introduces any alteration resulting in re-subdivision and issuance of new titles, the bulk buyer is considered as land owner/developer of a new subdivision project separate and distinct from the original subdivision, and must comply with PD 957 and related requirements (including right-of-way).
Because re-subdivision and issuance of new titles, driven by alterations to the approved plan, effectively makes the bulk buyer the developer of a new subdivision project subject to all the regulatory requirements of PD 957.
The bulk buyer must submit proof of approval of his project from the original subdivision owner, the majority of the lot buyers therein, or the HOA (if any).
They must secure a locational clearance from HLRB or its deputee (subject to the conditions in Section 3(a)).
If the bulk buyer sells the lots without alteration, the sale is treated as subsequent sale under exempt transactions (Sec. 7 of PD 957), removing the need for an HLRB license to sell.
The bulk buyer must show proof of (1) consent of the owner/developer and majority of lot buyers or HOA, and (2) sufficiency of existing facilities under existing standards and rules.