presentation on new irrs for advertisments, and dealers, brokers, and salesmen (1)

2014 REVISED IMPLEMENTING RULES AND

REGULATIONS ON ADVERTISEMENTS &

BROKERS, DEALERS AND SALESMEN

ADVERTISEMENTS BROKERS, DEALERS

AND SALESMEN

BROKERS, DEALERS

AND SALESMEN ADVERTISEMENTS

Sections 11 and 12

P.D. No. 957

Approved: December 2, 2014

Published: January 30, 2015

Effective: February 14, 2015

2014 Revised Implementing Rules and Regulations on

Advertisements


Dealers, Brokers and

Salesmen

Board Resolution No. 921,

Series of 2014


Series of 2014

Section 19

P.D. No. 957

BROKERS, DEALERS


Section 19

P.D. No. 957

Sections 11 and 12

P.D. No. 957

Approved: December 2, 2014

Published: January 30, 2015

Effective: February 14, 2015


Advertisements



Salesmen

REVISED IMPLEMENTING RULES

AND REGULATIONS TO GOVERN

DEALERS, BROKERS AND

SALESMEN OF SUBDIVISION AND

CONDOMINIUM PROJECTS UNDER

PRESIDENTIAL DECREE NO. 957,

OTHERWISE KNOWN AS THE

SUBDIVISION AND CONDOMINIUM BUYERS PROTECTIVE DECREE

AND ALL OTHER PROJECTS

REQUIRED BY LAW TO BE

REGISTERED WITH THE HOUSING

AND LAND USE REGULATORY

BOARD

REVISED IMPLEMENTING RULES

AND REGULATIONS TO GOVERN

THE ADVERTISEMENTS OF

SUBDIVISION AND CONDOMINIUM

PROJECTS UNDER PRESIDENTIAL

DECREE NO. 957, OTHERWISE

KNOWN AS THE SUBDIVISION AND CONDOMINIUM BUYERS

PROTECTIVE DECREE AND ALL OTHER PROJECTS REQUIRED BY

LAW TO BE REGISTERED WITH THE

HOUSING AND LAND USE

REGULATORY BOARD

BROKERS, DEALERS



Advertisements



Salesmen


Series of 2014


Series of 2014

Memorandum Circular

No. 01, Series of 2015

Memorandum Circular

No. 02, Series of 2015

BROKERS, DEALERS


2014 Guidelines on Advertisements

2014 Guidelines on Dealers, Brokers and

Salesmen


Series of 2014


Series of 2014

BROKERS, DEALERS

AND SALESMEN

Any other similar projects, including

cemeteries, memorial parks, and columbaria

All condominiums, including residential

and commercial condominiums

All subdivisions, including residential,

commercial, farmlot, and industrial subdivisions

ADVERTISEMENTS

SCOPE OF APPLICATION

ADVERTISEMENTS

Definitions

refers to any form of information, whether in words or illustrations, disseminated or communicated in

the same manner as an advertisement, solely for the

purpose of initially informing or notifying the public

about a project BUT NOT for the purpose of marketing

or selling

refers to any form of information, whether in words or illustration relating to a project, disseminated

or communicated for the purpose of marketing and

selling the project, or any lot including any building or

improvement thereon, or any unit thereof

ANNOUNCEMENTS

ADVERTISEMENTS

Definitions ADVERTISEMENTS

refers to all advertisements that are disseminated through newspapers, magazines, brochures, pamphlets, flyers and all other

similar or related materials

Print Advertising

Broadcast advertising

refers to all advertisements or commercials that are disseminated through radios and televisions. For purposes of this Rules, broadcast

advertising shall also include cinema advertisements, or those aired

or exhibited in theaters, as well as those disseminated or communi-

cated through live streaming, or other similar methods

Out-of Home Advertising refers to all advertisements intended to reach customers or prospective buyers while outside their homes

such as but not limited to photographic and electronic billboards,

transit advertisements, digital displays, banners, tarpaulins and

posters

Out-of Home Advertising

Media

ANNOUNCEMENTS

digital and electronic signages

and communications

newspapers, magazines,

televisions and radio

billboards, brochures,

leaflets and flyers

scale models

buyers briefings, seminars or trippings

ADVERTISEMENTS

ADVERTISEMENTS Time Frame

Who May Announce

or Advertise

License

to Sell

ANNOUNCEMENTS

ADVERTISEMENTS

Time Frame ADVERTISEMENTS

Requirement of

Prior Approval

Who May Announce

or Advertise

ANNOUNCEMENTS ADVERTISEMENTS

Owner

Developer

Owner

Developer

Dealer

Broker

Salesperson

ADVERTISEMENTS

Truth In Advertising Requirement of

Prior Approval

ANNOUNCEMENTS ADVERTISEMENTS

REQUIRED NOT REQUIRED

ADVERTISEMENTS

Truth In Advertising ADVERTISEMENTS

Any announcement or advertisement about a project, or

about its operations or activities, must reflect the real

facts and must be presented in a manner that will not

tend to mislead or deceive the public.

All representations pertaining to the projects payment and financing scheme, design and standards, and its

amenities, facilities and other privileges connected

with the sale of the lots, including any building

or improvement thereon, or any units thereof, must

conform with the rules and guidelines issued by the HLURB.

Design and

Standards, Amenities

and Period of Completion

Truth In Advertising

All representation and description in the advertisement

pertaining to a projects designs and standards, amenities, facilities, infrastructures and improvements, and its period

of development and completion must strictly conform

with the projects approved site development plans, architectural plans and work programs.

ADVERTISEMENTS

Only such amenities and improvements specified in the approved

site development and architectural plans of the project may be

included or illustrated in the advertisement. Otherwise, the

owner or developer shall be liable in accordance with

Section 22 hereof [WARRANTIES]

Pictures

And Illustrations

Truth In Advertising

Any picture or illustration of the project, or any of its

features, facilities, or amenities that may be

included or depicted in the advertisement shall be

captioned as "actual photographs", "architect's

perspective", "artist's illustrations" or such other

similar captions, as the case may be.

ADVERTISEMENTS

No mode or manner of payment and financing, including the

amount of reservation fee, initial deposit or downpayment,

required equity, installment plans, schedule and escalation, and

discounts and interest rates shall be included in an advertisement

unless such payment and financing scheme is fully disclosed in

the advertisement and in accordance with the terms and

conditions stipulated in the purchase reservation, contract

to sell, or any other form or document relating to or which

may be used in the sale of the lots, including any building

or improvement thereon, or any units of the project, or

in the sale of privileges connected with the project.

Payment and Financing

Schemes


Payment and Financing

Schemes

Any representation on the amount of monthly installments

dependent on approved credit or financing, whether

in-house or third-party financing, must not be misleading

and shall state the financing source and availability,

the true terms, rates, charges, fees and penalties

prevailing or applicable at the time of the sale transaction

so as to enable a prospective buyer to make an informed

choice about the actual cost of financing of such purchase.

Any interest rate must be stated in

terms of annual percentage rate.


The location and distance of a project must be stated

in a manner that will not tend to mislead the public or

prospective buyers of its proximity, accessibility and value.

Location and Distance


Any statement of the projects location and distance in relation to a known place or landmark shall be expressed

in terms of kilometers, and any vicinity map illustrating

such proximity to known places or landmarks must

similarly indicate such distance or distances in

terms of kilometers.


To enable the public or prospective buyers to

make an informed choice on their purchase or

acquisition, any advertisement about a project

must indicate material facts, and all announcements

and advertisements shall not include

any prohibited statement or information, as

may be provided under the rules and guidelines

issued by the HLURB.

Prohibited

Statements and Information

in an Announcement


The office address or contact numbers or

information of the owner, developer or dealer

The names and office address or contact

numbers of any of the projects authorized broker/s or salesperson/s

Any other information or statement which

directly or indirectly conveys or suggests the

sale or marketing of any of the lots, including

any building or improvement thereon, or any

units of a project

Prohibited


in an Announcement

Any of these prohibited information or statement cannot

be included in an announcement material by inserting,

stapling, pasting, attaching, or by any manner that may

serve to incorporate such prohibited information or

statement

A violation hereof shall be deemed as selling without a

license and shall be subject to appropriate sanctions and

penalties as provided by P.D. 957, its implementing rules,

regulations, and the guidelines herein provided.


Prohibited


in an Advertisement


The following statements or information shall

not be included in any advertisement:

Disclaimer(s)

Any other or future project or development not

covered by the license to sell stated therein,

unless such other or future projects are

included in a cluster development

Exaggerations or misleading information

either by text, illustration or pictures

The name(s) of the owner(s) and/or

developer(s) of the project

The exact location of the project

including street name, barangay,

and city or municipality

The License to Sell or Amended

License to Sell Number;

Mandatory

Contents in Print Advertising


All print advertising including billboards and signages

shall include or indicate material facts and information

so as to fairly inform the public about a project.

The advertisement shall include:

Mandatory

Contents in Print Advertising

Any print advertisement that includes the names or offices

of the dealer or any the projects authorized broker/s or salesperson/s shall likewise indicate their

corresponding HLURBs registration numbers

The Advertisement Approval Number

The approved project completion date

as indicated in the license to sell; and

The maximum selling price in case of

economic and socialized housing projects


All print advertising including billboards and signages

shall include or indicate material facts and information

so as to fairly inform the public about a project.

The advertisement shall include:

Mandatory

Contents in Broadcast Advertising


All broadcast advertising shall include or indicate material

facts and information so as to fairly inform the public

about a project. The advertisement shall include:

The name(s) of the owner(s) and/or

developer(s) of the project

The location of the project

including the name of the barangay,

and city or municipality

The License to Sell or Amended

License to Sell Number;

Other

Advertising Requirements


In print advertising, the license to sell number must

be of the same font type and size, and resolution

as the advertisers telephone number.

In all cases, the mandatory contents shall

be readable or comprehensible.

Application

and Approval

Cluster Development


In case of an advertisement of a project or projects

included in a cluster development, the other projects,

developments and infrastructures included in the projects master plan shall be indicated in the advertisement.

However, such advertisement must clearly specify which of

those projects are already covered by licenses to sell.

Documentary Requirements Approval of the Advertisement

ADVERTISEMENTS Application

and Approval

The owner/developer, dealer, or the authorized

broker/s or salesperson/s shall be allowed to advertise

about the project only after:

Such approval may however be suspended or revoked in case

of violation of the terms and conditions of the advertisement

approval or by reason of any violation of the rules and

regulations issued by the HLURB

The issuance of the projects license to sell; and

The HLURB has approved the

advertisement material in accordance

with its issued rules and guidelines

Documentary Requirements Approval of the Advertisement

Projects licensed by one and the same RFO may be

included in one material and shall be subject to one

advertisement approval. Otherwise, a single

advertisement about several projects registered in

different RFOs are required to be approved first

by all of the RFOs where the projects are

respectively registered.

ADVERTISEMENTS Application

and Approval

Documentary Requirements

Two copies of notarized application;

ADVERTISEMENTS ADVERTISEMENTS

The following requirements are to be submitted for

every application for advertisement approval:

Application

and Approval

At least two copies of the proposed

advertisement material;

Copy of the license to sell, if already issued;

Marketing agreement between owner/developer

and broker/salesperson with authorization to

advertise, if application is filed by the broker

or salesperson.


Fees shall be collected upon the filing of application in

accordance with the approved Schedule of Fees.

[2013 Revised Schedule of Fees]

[ Board Resolution No. 912, Series of 2013]

Application

and Approval

Fees

Application

and Approval

Size, fonts, resolution

The contents and representations contained in the submitted

material shall be reviewed in accordance with the guidelines

provided under Sub-Rules II-A and II-B:

Truth in Advertising

Design and Standards,

Amenities and Period

of Completion

Pictures and

Illustrations

Payment and

Financing Schemes

Prohibited Information

and Statements

Mandatory Contents

Location and Distance


Review and Approval

Warranties and Liabilities

Monitoring, Offenses

and Sanctions ADVERTISEMENTS

Warranties and

Liabilities

All representations are enforceable warranties;

Owner/developer is answerable for all the

improvements or amenities represented in

an advertisement even if not included in the

approved plan, specifications, or program;

Failure to timely and completely develop

and deliver all of the representations is

breach of warranty subject to imposition

of fines, penalties and damages

The HLURB may, motu proprio or upon verified complaint,

exercise its right to monitor all announcements

and advertisements and impose appropriate sanctions

in case of violation or non-compliance

ADVERTISEMENTS Monitoring, Offenses

and Sanctions

Monitoring

Violations


and Sanctions

Announcements not complying with

HLURBs existing rules and guidelines

2. Disseminated by, or includes

names/contact information of

dealers, brokers or salesmen

1. With telephone number / contact

information of owner/developer

3. Sells or conveys/suggests

selling or marketing

4. Incorporates prohibited

information through attaching,

stapling, pasting, etc.

Prohibited Announcements and Advertisements

Prohibited Announcements and Advertisements

Advertisements that fail to comply with

the terms and conditions of the approval;

Advertisements that deviate from

the approved material;


and Sanctions

Announcements not complying with

HLURBs existing rules and guidelines

Advertisements without prior approval;

/ NEWSPAPER

/ ISSUE


and Sanctions

Violations

EVERY PUBLICATION

OR PRINTING

/ CHANNEL / STATION

/ PER COMMERCIAL

EVERY AIRING

OR BROADCASTING

SEPARATE VIOLATION

SEPARATE SANCTIONS

AND PENALTIES

Billboards


and Sanctions

Violations

EXCEPTION:

OUT-OF-HOME ADVERTISEMENTS

Banners

Tarpaulins

Transit Ads

Digital Displays

DISPLAYING IDENTICAL

CONTENTS OR MATERIALS

SINGLE ADVERTISING


and Sanctions

CONTINUED ADVERTISING IS

SELLING WITHOUT LICENSE

A CDO or suspension of license to sell

SUSPENDS the advertisement approval

Upon receipt of such order,

the developer shall immediately desist

from advertising the project

Revocation of the Advertisement Approval

Revocation of the Advertisement Approval


and Sanctions

Deviation from the approved contents or failure to

comply with the terms and conditions of the

advertisement approval is a ground for revocation

Upon receipt of the order of revocation,

the developer shall immediately cease

and stop its dissemination.

Any alteration of plan resulting to any change in

the amenities, facilities, infrastructure or other

developments featured in the advertisement,

whether approved or not, shall also ipso facto

revoke the approval of any or all previously-

approved advertisements

BROKERS, DEALERS

AND SALESPERSONS

All advertisers with existing announcements and

advertisements, including billboards, not complying

with the foregoing Rules and Guidelines shall,

WITHIN 60 DAYS from effectivity of this Rules,

cease and desist from using the advertisements, until such

time the same has been amended and accordingly approved.

Transitory Provision


and Sanctions

BROKERS, DEALERS

AND SALESPERSONS

BROKERS, DEALERS

AND SALESPERSONS

PRACTICE OF REAL

ESTATE SERVICE

REVISED IMPLEMENTING RULES AND REGULATIONS

TO GOVERN DEALERS, BROKERS AND SALESMEN OF

SUBDIVISION AND CONDOMINIUM PROJECTS UNDER

PRESIDENTIAL DECREE NO. 957, OTHERWISE KNOWN

AS THE SUBDIVISION AND CONDOMINIUM BUYERS PROTECTIVE DECREE AND ALL OTHER

PROJECTS REQUIRED BY LAW TO BE

REGISTERED WITH THE HOUSING AND

LAND USE REGULATORY BOARD

PRACTICE OF REAL

ESTATE SERVICE

BROKERS, DEALERS

AND SALESPERSONS

PRACTICE OF REAL ESTATE SERVICE

Any of the acts or transactions of a dealer, broker, or

salesperson with respect to any project required by law

to be registered with the HLURB

In the case of brokers and salesmen, any single act

or transaction thereof shall constitute practice of

real estate service

DEFINITIONS

Broker

Salesman

Any person who, for commission or other

compensation, undertakes to sell or negotiate

the sale of a real estate belonging to another

Any person directly engaged as principal in

the business of buying and selling of real

estate, whether on a full-time or part-time basis

Any person engaged or regularly employed by a

broker to perform, for and in his behalf, any or all

functions of a real estate broker. A salesman

may also be engaged or regularly employed by a

dealer.

Dealer

BROKERS, DEALERS

AND SALESPERSONS

PRACTICE OF REAL

ESTATE SERVICE

DEFINITIONS

BUSINESS FIRMS

REQUIREMENT OF

REGISTRATION

P.D. NO.

957

PERSON shall mean a natural or a juridical person. A juridical person refers to a business

firm whether a corporation, partnership,

cooperative, or association, or a single

proprietorship.

BROKERS, DEALERS

AND SALESPERSONS

PRACTICE OF REAL

ESTATE SERVICE

BUSINESS FIRMS refers to any corporation, partnership, cooperative or association, or

single proprietorship, that is required by

PD 957 to be registered first with the

HLURB before it can engage in the practice

of real estate service with any project

required by law to be registered with the HLURB

REGISTRATION AND ACCREDITATION

REQUIREMENTS UNDER RESA LAW AND PD 957

REQUIREMENT OF

REGISTRATION

BROKERS, DEALERS

AND SALESPERSONS

Republic Act No. 9646 otherwise known as the Real Estate Service Act of the Philippines requires all brokers and

salespersons to be respectively licensed and accredited by the

Professional Regulatory Board of Real Estate Service (PRBRES)

before they can engage in the practice of real estate service.

IN ADDITION THERETO, as separately required under P.D. No. 957,

before any dealer, or any PRBRES-registered broker or PRBRES-

accredited salesperson can engage in the practice of real estate

service specifically with respect to projects required by law to

be registered with the HLURB, such dealer, licensed broker

or accredited salesperson shall first register with the HLURB

in accordance with the rules and guidelines herein provided.

P.D. NO.

957

REQUIREMENT OF

REGISTRATION

Requirement of registration for brokers

and accreditation for salespersons engaged

in the practice of real estate service for all

kinds of real estate transaction

In addition to the requirements under R.A.

No. 9646, dealers, and licensed brokers and

accredited salespersons are still required to

register with HLURB to engage in the practice of

real estate service with projects required by law

and regulations to be registered with the HLURB

R. A. NO.

9646

BROKERS, DEALERS

AND SALESPERSONS

PROCEDURE FOR

REGISTRATION

REQUIREMENT OF

REGISTRATION

BOND OR SECURITY

Business

Firms

Salesmen

P 5,000.00

P 1,000.00

P 20,000.00

Dealers

or Brokers

BROKERS, DEALERS

AND SALESPERSONS

PROCEDURE FOR

REGISTRATION

Applicants shall register with the Regional Field Office (RFO)

where the applicant resides or where his office is located.

APPLICATION AND REQUIREMENTS

Sworn Application for Registration

Recent 2 x 2 color photo

Valid NBI or court clearance

Bond or security

Official receipt evidencing payment

of the registration fee

DEALER

BROKERS, DEALERS

AND SALESPERSONS

PROCEDURE FOR

REGISTRATION




PRBRES-

LICENSED

BROKER



Photocopy of PRBRES-Issued Certificate

of Registration and Professional

Identification Card, or any other sufficient

proof of PRBRES licensure

Bond or security



BROKERS, DEALERS

AND SALESPERSONS

BUSINESS

FIRMS

PROCEDURE FOR

REGISTRATION




PRBRES-

ACCREDITED

SALESPERSON



Photocopy of PRBRES-Issued Certificate

of Accreditation and Professional

Identification Card, or any other sufficient

proof of PRBRES-accreditation

Bond or security



BROKERS, DEALERS

AND SALESPERSONS

RENEWAL OF REGISTRATION

PROCEDURE FOR

REGISTRATION




BUSINESS

FIRMS


Secretarys Certificate or Authorization of the representative

Photocopy of SEC, DTI or CDA Certificate

of Registration & Articles of Incorporation

or Cooperation

Bond or security



List of engaged brokers

and/or salespersons

BROKERS, DEALERS

AND SALESPERSONS

OTHER FEATURES

PROCEDURE FOR

REGISTRATION

Every registration shall expire on the thirty-first

of December each year and shall be renewed

during the month of November

RENEWAL OF REGISTRATION

Renewal filed after the prescribed period shall be

treated as original registration

BROKERS, DEALERS

AND SALESPERSONS

SUSPENSION

AND REVOCATION

PROCEDURE FOR

REGISTRATION

Issuance of Certificate of Registration

and Identification Card

OTHER FEATURES

Display of Certificate of Registration and

Identification Card

BROKERS, DEALERS

AND SALESPERSONS

OFFENSES AND

PENALTIES

SUSPENSION

AND REVOCATION

Suspension pending investigation;

Notice and Hearing

PROCEDURE & EFFECTS

Suspension or revocation of salespersons registration suspends or revokes brokers or

dealers registration who knowingly permitted or allowed the prohibited acts

Suspension or revocation of PRBRES registration

or accreditation automatically suspends or

revokes HLURB registration

Suspension or revocation of Business Firms Registration automatically suspends or revokes

brokers or salespersons authorization for such project/s

BROKERS, DEALERS

AND SALESPERSONS

FORFEITURE OF BOND

OFFENSES AND

PENALTIES

WITHOUT

LICENSE TO SELL

EXPIRED

REGISTRATION

P 10,000.00

P 5,000.00

Penalty for each act of selling

in accordance with HLURBs Schedule of Fines and Penalties

WITHOUT

REGISTRATION

Criminal Prosecution

PROHIBITED PRACTICES

BROKERS, DEALERS

AND SALESPERSONS

ADMINISTRATIVE FINES FORFEITURE OF BOND

Violation of any provision of P.D. No. 957

or any of its rules or regulations,

INCLUDING SELLING OF LOTS/UNITS OF ANY

PROJECT WITH NO LICENSE TO SELL

Material false statement in the

application for registration

Fraudulent act in connection with any

sale of a lot or unit in any project

Unworthiness to engage in the practice

of real estate service

OFFENSES AND

PENALTIES

BROKERS, DEALERS

AND SALESPERSONS

TRANSITORY PROVISION ADMINISTRATIVE FINES

BROKERS, DEALERS

AND SALESPERSONS

OFFENSES AND

PENALTIES

SECOND

OFFENSE

P 5,000.00

P 10,000.00

Revocation of HLURB

Registration and Disqualification

FIRST OFFENSE

Recommendation for the

Revocation of PRBRES

Registration or Accreditation

TRANSITORY PROVISION

BROKERS, DEALERS

AND SALESPERSONS

OFFENSES AND

PENALTIES

Upon effectivity of this Rules, all dealers, brokers and salespersons

who have been engaged in the practice of real estate service and

who have failed to register or renew their registration with the

HLURB shall be given a period of sixty (60) days within which

to register or renew and shall be exempt from the imposition of fines

provided in the HLURBs Revised Schedule of Fines for failure to register or renew.

All business firms who have been engaged in the practice of real

estate service shall, upon effectivity of this Rules, likewise be given

a period of sixty (60) days within which to register.

Notwithstanding the foregoing, the non-imposition of fine as herein

provided during the sixty (60) day transitory period shall not prejudice the enforcement of Sections 11 (Practicing Real Estate

Service Without Registration) and 12 (Practicing Real Estate Service

With Expired Registration).

Thank you.

presentation on new irrs for advertisments, and dealers, brokers, and salesmen (1)

Documents