Title
Rules on Bulk-Buying in HLRB Subdivisions
Law
Hlrb Administrative Order No. 09, S. 1994
Decision Date
Jun 2, 1994
HLRB Administrative Order No. 09, S. 1994 establishes regulations to govern bulk buying of lots in HLRB-approved subdivisions, ensuring consumer protection and outlining the requirements for resale and construction by bulk buyers.

Law Summary

Bulk Buying as an Exempt Transaction

  • If a bulk buyer sells lots without making any alterations as per PD 957, such resale is classified as a subsequent sale.
  • This type of transaction is considered exempt under Section 7 of PD 957.
  • Therefore, the bulk buyer is not required to obtain a license to sell from the Housing and Land Use Regulatory Board (HLRB).

Bulk Buying with Construction of Housing Units or Structures

  • A bulk buyer who builds housing units or structures on the purchased lots without subdividing or altering roads and utilities must secure a locational clearance from HLRB or its deputee.
  • The construction must conform to the allowed density specified in the approved subdivision plan.
  • The original owner or developer remains responsible for the completion and maintenance of roads and other facilities.
  • If construction increases density beyond the approved plan, the bulk buyer must:
    1. Obtain consent from the original developer and the majority of lot buyers or the Home Owners Association (HOA).
    2. Demonstrate that existing facilities meet required standards and regulations.

Bulk Buying with Alteration and Re-subdivision

  • If alterations introduced by a bulk buyer result in re-subdivision and issuance of new titles, the bulk buyer is considered the owner/developer of a new subdivision.
  • The new subdivision is separate and distinct from the original and is subject to all requirements under PD 957 and related laws.
  • This includes compliance with locational clearances, right-of-way provisions, and all regulatory processes.
  • If the new project depends on facilities and amenities of the original subdivision which have not been turned over to the local government unit, the bulk buyer must secure approval from:
    1. The original subdivision owner.
    2. The majority of lot buyers.
    3. The Home Owners Association (HOA), if existing.

Regulatory Purpose and Protection for Buying Public

  • The Rules and Regulations on Bulk Buying aim to prevent speculative purchases that may harm the buying public.
  • They provide a uniform basis for HLRB’s adjudication and enforcement concerning bulk buying activities.
  • The framework ensures that quality, facility standards, and ownership rights in subdivisions are maintained and protected under PD 957 and related laws.

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