Law Summary

Introduction

This document provides a corrected version of HLURB Administrative Order No. 02 dated 02 February 2009, concerning HLURB Board Resolution No. R-830, Series of 2008. It sets forth the minimum development requirements for obtaining a license to sell for subdivision and condominium projects.

Correction of Administrative Order

• Purpose: This section clarifies an error in the previous administrative order, correcting the title from “Declaring Habitat for Humanity Philippines Projects as Projects not Covered by the License to Sell of HLURB” to “Minimum Level of Development Requirement in the Issuance of License to Sell for Subdivision and Condominium Projects.”
• Action: All parties must disregard the previously issued administrative order related to this matter.

Minimum Level of Development Requirements

• Legal Principle: Under Section 5 of Presidential Decree No. 957 (PD 957), a license to sell is mandatory for owners or dealers of registered subdivisions or condominium projects before any sales can commence.

• Key Definitions:

  • Subdivision Projects: Involves land clearing, grubbing, road tracing, earthworks, sub-base and base preparation, and the construction of an entrance gate if mentioned in promotional materials.
  • Condominium Projects: Encompasses civil and structural works from the foundation phase, including excavation, pile driving, concreting, steel reinforcement, and formworks.

• Requirements:

  • Subdivision Projects: Completion of the following before license issuance: • Land clearing and grubbing • Road tracing • Earthworks • Sub-base and base preparation • Entrance gate if included in promotional materials
  • Condominium Projects: Completion of civil and structural works: • Foundation excavation • Pile driving • Concreting • Steel reinforcement • Formworks

Publication and Effectivity

• Publication: The resolution was published in the Philippine Daily Inquirer on 01 February 2009.
• Effectivity: The order shall take effect fifteen (15) days post-publication, specifically on 16 February 2009.

Key Takeaways

• The corrected HLURB Administrative Order No. 02 establishes essential development requirements for licensure to sell in subdivision and condominium projects.
• Compliance with the specified minimum development activities is necessary to obtain a license to sell.
• The order is effective from 16 February 2009, following its publication, and must be adhered to by all relevant stakeholders in real estate development.