Applicable Legal Framework
- The provisions of Presidential Decree (PD) 957, PD 1216, and related laws regulate the relations between subdivision buyers and developers regarding the provision, construction, and maintenance of subdivision facilities and services.
Owner-Developer Liability for Promised Facilities
- Section 19 of PD 957 holds the owner or developer jointly and severally liable for delivering facilities, improvements, infrastructures, or other developments promised through brochures, advertisements or other sales representations.
- These promises form part of enforceable sales warranties binding the developer.
Construction and Provision of Facilities
- Section 20 of PD 957 requires every owner or developer to build and provide the facilities and improvements shown in the approved subdivision plan within the fixed period indicated in the license to sell.
Turnover or Donation of Facilities to Homeowners' Associations or LGUs
- Under Section 30 of PD 957 as amended by PD 1216, subdivision facilities must be turned over or donated to the homeowners' association or the LGU upon completion.
- Acceptance of donated facilities by the homeowners' association or LGU is mandatory to relieve the developer of ongoing maintenance obligations.
Importance of Continuous Operation and Maintenance of Street Lighting
- Street lighting facilities are critical to ensuring safety, peace, and order within subdivision communities.
- The continuous operation of these facilities requires their ongoing maintenance and timely payment of electric consumption bills.
Board Resolution Clarification and Policy Direction
- The Board Resolution reiterates and amplifies that subdivision developers must maintain street lighting facilities and pay all related electric consumption bills until official turnover of such facilities to the LGU.
- This obligation stands unless otherwise specified in a contract.
- The turnover and maintenance obligations are governed by PD 957, PD 1216, and their implementing rules and regulations.