Definition of Habitually Engaged in Real Estate Business

Ask AI

HLURB ADMINISTRATIVE ORDER NO. 12, S. 2000: Definition of Habitually Engaged in Real Estate Business

What do you want to know about the law?
Ask AI quickly gives answers based only on the current context to avoid mistakes. Always verify with the original text.

New Chat Started

Ask AI

Title Source: Supreme Court: Definition of Habitually Engaged in Real Estate Business

Law: Hlurb Administrative Order No. 12, S. 2000

Decision Date: Dec 14, 2000

The resolution defines "habitually engaged in real estate business" as individuals or entities that regularly develop and sell subdivisions or housing for profit, ensuring compliance with government reporting standards to enhance tax collection and regulatory clarity.

Law Summary

Definition of Habitually Engaged in Real Estate Business (HEREB)

A person or entity who, as an owner or developer, regularly undertakes development and construction of subdivisions or housing projects for sale to the general public.
Real estate activities must constitute the regular source of income for the person or entity.
Compliance with government standards, rules, and regulations is required, including submission and updating of reportorial requirements to HLURB.

Procedural Aspects

Entities must submit and update reports in accordance with prescribed government standards.
The HLURB is responsible for monitoring compliance and issuance of HEREB Certificates.

Legal and Tax Implications

Classification as HEREB affects the applicable creditable withholding tax rates on sales of real property.
Ensures that real estate developers meeting the criteria benefit from tax provisions while promoting transparency and regulatory compliance.

Authority and Approval

Resolution approved by the Board of Commissioners on October 19, 2000.
Adopted formally on December 14, 2000, by the Chief Executive Officer and Commissioner of HLURB, Romulo Q.M. Fabul.

END