Jurisdiction of HLURB - G. R. No. 189755

G. R. No. 189755

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The jurisdiction of the HLURB is outlined in P.D. 1344, “Empowering the National Housing Authority to Issue Writ of Execution in the Enforcement of its Decision under Presidential Decree No. 957,” viz:

Sec. 1. In the exercise of its functions to regulate real estate trade and business and in addition to its powers provided for in Presidential Decree No. 957, the National Housing Authority shall have the exclusive jurisdiction to hear and decide cases of the following nature.

A.                Unsound real estate business practices;

B.                Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman; and

C.                Cases involving specific performance of contractual and statutory obligations filed by buyers of subdivision lots or condominium units against the owner, developer, broker or salesman.

When respondent Association filed its Complaint before the HLURB, it alleged that Marcelo’s sale of Lot 11, Block 5 to Hermogenes was done in violation of P.D. 957 in the following manner:

12. Through fraudulent acts and connivance of [T.P. and Ernesto Marcelo] and the late Liwag and without the knowledge and consent of the complainants all in violation of P.D. 957 and its implementing regulations, respondents T.P. and Ernesto Marcelo transferred the same lot where the deep well is located which is covered by TCT No. C-41785 in favor of spouses Hermogenes Liwag and Emeteria Liwag to the great damage and prejudice of complainants x x x.[22] (Empasis in the original)

We find that this statement sufficiently alleges that the subdivision owner and developer fraudulently sold to Hermogenes the lot where the water facility was located. Subdivisions are mandated to maintain and provide adequate water facilities for their communities.[23] Without a provision for an alternative water source, the subdivision developer’s alleged sale of the lot where the community’s sole water source was located constituted a violation of this obligation. Thus, this allegation makes out a case for an unsound real estate business practice of the subdivision owner and developer. Clearly, the case at bar falls within the exclusive jurisdiction of the HLURB.

It is worthy to note that the HLURB has exclusive jurisdiction over complaints arising from contracts between the subdivision developer and the lot buyer, or those aimed at compelling the subdivision developer to comply with its contractual and statutory obligations to make the Subdivision a better place to live in.[24] This interpretation is in line with one of P.D. 957’s “Whereas clauses,” which provides:

WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or sellers have reneged on their representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus endangering the health and safety of home and lot buyers. x x x.

P.D. 957 was promulgated to closely regulate real estate subdivision and condominium businesses.[25] Its provisions were intended to encompass all questions regarding subdivisions and condominiums.[26] The decree aimed to provide for an appropriate government agency, the HLURB, to which aggrieved parties in transactions involving subdivisions and condominiums may take recourse.[27]

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