Home › Buyer Guides › PD 957 Explained for Subdivision and Condominium Buyers
Who enforces it now
PD 957 was originally enforced by the HLURB. Since RA 11201 (2019), the Department of Human Settlements and Urban Development (DHSUD) handles project registration, Licenses to Sell, and regulation. The Human Settlements Adjudication Commission (HSAC) decides disputes between buyers and developers.
The protections, section by section
| Rule | What it means for you |
|---|---|
| Registration of the project (Sec. 4) | The developer must register the project and its plans with the regulator. |
| License to Sell (Sec. 5) | No lot or unit may be sold or offered without a License to Sell for that project or phase. |
| Performance bond (Sec. 6) | The developer posts a bond to guarantee completion of roads, drainage, utilities, and amenities. |
| Registration of contracts (Sec. 17) | Contracts to Sell and deeds must be registered with the Registry of Deeds, which protects your claim. |
| Mortgages need approval (Sec. 18) | The developer can't mortgage lots or units without DHSUD approval, proceeds must go to the project, and buyers must be notified. |
| Advertisements (Sec. 19) | Ads must reflect the facts; the developer is bound by what it advertises. |
| Time of completion (Sec. 20) | The developer must finish facilities, improvements, and infrastructure within the time stated in the license, or within one year of issuance if none is stated. |
| No forfeiture if the developer fails (Sec. 23) | If the developer fails to develop as approved, a buyer who stops paying after notice can't forfeit payments and can ask for a refund with interest. |
| Failure to pay installments (Sec. 24) | A defaulting buyer's rights follow the Maceda Law (RA 6552). |
| Title delivery (Sec. 25) | Once the buyer has fully paid, the developer must deliver the title. |
| Roads and open spaces (Sec. 31) | Roads, alleys, and open spaces must be developed and may be donated to the LGU after completion. |
What PD 957 means when you buy
- Before reserving: confirm the project's Certificate of Registration and License to Sell, including the specific phase. See how to check a License to Sell.
- Keep the ads: save brochures, Facebook posts, and screenshots of promised amenities and turnover dates. They can support a claim later.
- Read the Contract to Sell for the turnover date and the developer's obligations.
- Ask about the mother title: is it mortgaged, and was the mortgage approved by DHSUD?
- After full payment: follow up in writing for your title and keep copies of every letter.
How to file a complaint
- Write to the developer first, stating the problem (delay, defects, undelivered title, missing amenities) and your demand. Keep proof of receipt.
- If unresolved, go to the DHSUD regional office covering the project (for Laguna projects, the CALABARZON office). Ask about mediation or the right complaint channel.
- Disputes involving refunds, specific performance, or damages are adjudicated by the HSAC.
- Bring your contract, receipts, statements of account, ads, photos, and letters.
Frequently asked questions
What is PD 957?
Presidential Decree No. 957, the Subdivision and Condominium Buyers' Protective Decree of 1976. It regulates the sale of subdivision lots and condominium units and protects buyers through licensing, development deadlines, mortgage controls, and title delivery rules.
Can a developer sell without a License to Sell?
No. Selling or offering lots or units without a License to Sell violates PD 957 and is penalized. Always verify the license for the specific project phase before paying.
What can I do if my house or subdivision isn't delivered on time?
Under Section 23, if the developer fails to develop according to approved plans and timelines, you may stop paying after notice to the developer and ask for a refund of payments with legal interest. Disputes go to DHSUD and the HSAC.
Does PD 957 apply to resale properties?
Its developer obligations apply to sales by owners and developers of subdivision and condominium projects. For private resales, ordinary Civil Code rules and title verification matter most.
Related buyer guides
- How to Check a Developer License to Sell in the Philippines
- Maceda Law Explained for Property Buyers in the Philippines
- Contract to Sell vs Deed of Absolute Sale in the Philippines
- Pre-Selling vs RFO Homes: Which Should You Buy?
Official sources and further reading
Reviewed for accuracy on October 4, 2026. Rates, fees, thresholds, and agency procedures change. Confirm transaction-specific details with the issuing agency, your lender, or a lawyer before you pay or sign.
About the author: Jeremiah Villagomez is a PRC-accredited and DHSUD-accredited Real Estate Salesperson based in San Pablo City, Laguna. He helps first-time buyers, OFWs, and relocating families buy house and lot homes with Pag-IBIG, bank, or cash financing. More about Jeremiah · Call 0976 302 6551
Have a specific situation? Call or text 0976 302 6551 and I will run the numbers for your exact unit, budget, and financing route for free.
