Question & AnswerQ&A (HLRB ADMINISTRATIVE ORDER NO. 09, S. 1994)
Bulk-buying refers to 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.
A bulk buyer who disposes of the same lots through sale without any alteration as defined under PD 957 is considered engaging in a subsequent sale under exempt transactions and thus is not required to secure a license to sell from HLRB.
The bulk buyer must secure a locational clearance from HLRB or its deputee. The construction must conform to the allowed density per the approved subdivision plan. The original owner/developer remains liable for the completion and maintenance of roads and other facilities.
The bulk buyer must show: 1) consent from the original owner/developer and the majority of the lot buyers or the Home Owners Association (HOA), and 2) proof of sufficiency of existing facilities as per existing standards, rules, and regulations.
The bulk buyer shall be considered a land owner/developer of a new subdivision project, separate and distinct from the original. They are subject to all requirements of PD 957 and other related laws including securing rights-of-way and obtaining all necessary government approvals.
The bulk buyer must submit proof of approval of the project from the original subdivision owner, the majority of the lot buyers, or the Home Owners Association (HOA).
PD 957 provides the framework and regulatory basis governing subdivision development and subsequent sales. The law mandates protection of buyers and prescribes requirements and procedures bulk buyers and developers must follow to prevent fraudulent or harmful practices.
The original owner or developer remains liable for the completion and maintenance of roads and other facilities.
The Board encountered instances of bulk buying leading to re-selling and sometimes alteration of approved subdivision plans, which posed risks to the buying public. The rules were adopted to protect the public and provide uniformity in decisions and actions on bulk buying.
The bulk buyer is required to secure a locational clearance from HLRB or its deputee before construction if there is no alteration of subdivision plans.