Rules on Bulk-Buying in HLRB Subdivisions

The rules are adopted to address bulk-buying practices where buyers purchase multiple lots or units for resale with or without altering approved plans.
The rules are mandated to protect the buying public under PD 957 and other related laws.
The rules require a uniform basis for HLRB decisions and actions related to bulk buying.

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.
The purpose of the bulk purchase must be re-selling the lots or units with or without alteration of the approved plans.

A bulk buyer of lots who disposes of the same lots through sale without any alteration as defined under PD 957 is treated as a subsequent sale under exempt transactions.
Such exempt classification is under Sec. 7 of PD 957.
Because of this exempt treatment, the bulk buyer no longer needs to secure a license to sell from HLRB.

A bulk buyer who constructs housing or other structures on the same lots must be assessed based on whether there is further subdivision and whether there are changes to subdivision facilities.
If housing/structures are constructed without further subdividing the individually titled lots, and without introducing any changes on roads, water system, power facilities, drainage, and other facilities reflected in the approved subdivision plan, the bulk buyer must secure a locational clearance from HLRB or its deputee.
The construction must conform with the allowed density as per the approved subdivision plan.
The original owner/developer retains liability for the completion and/or maintenance of roads and other facilities.

When bulk buying results in increased density as provided for in the subdivision plan, the bulk buyer must submit proof of:
- (1) Consent of the owner/developer of the subdivision and the majority of the lot buyers or the Home Owners Association (HOA); and
- (2) Sufficiency of existing facilities as required under existing standards, rules, and regulations.

A bulk buyer who introduces any alteration on the lots that results in re-subdivision of lots and the issuance of new titles is treated as the land owner/developer of a new subdivision project.
The new subdivision project is treated as separate and distinct from the original subdivision project.
The new project becomes subject to all requirements of PD 957, its implementing rules and regulations, and related laws, including the requirement of a right-of-way.
If the project depends on the existing/original subdivision’s facilities and amenities and those facilities are not yet turned over or donated to the local government unit concerned, the bulk buyer must submit proof of approval from:
- the original subdivision owner, and
- the majority of the lot buyers therein, or the HOA, if any.