Advertisements & Developer Promises
Learn how PD 957 regulates developer advertising and treats brochure promises as enforceable warranties. Understand the completion timeline and restrictions on plan alterations.
Truthful Advertising Requirement
“Advertisements that may be made by the owner or developer through newspaper, radio, television, leaflets, circulars or any other form about the subdivision or the condominium or its operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public. The owner or developer shall answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in brochures, advertisements and other sales propaganda disseminated by the owner or developer or his agents and the same shall form part of the sales warranties enforceable against said owner or developer, jointly and severally.”
What This Means
This is one of the most powerful buyer protections in PD 957. Everything a developer promises in advertisements. whether in brochures, social media posts, model unit tours, or agent presentations. becomes a legally enforceable sales warranty. The developer and their agents are jointly and severally liable, meaning a buyer can go after either party for the full obligation. There is no escape clause for "artist's renderings" or "subject to change" disclaimers.
- All advertising must reflect "real facts" and not mislead the public
- Covers ALL forms: newspaper, radio, TV, leaflets, circulars, and "any other form"
- Promises in brochures and ads become enforceable sales WARRANTIES
- Developer AND agents are jointly and severally liable
- Failure to deliver on advertised promises is punishable under PD 957
Real-World Scenario
Vista Residences advertised in their brochure: "Enjoy resort-style amenities including an Olympic-sized swimming pool, tennis courts, and a 24/7 concierge." After turnover, buyers discover the pool is half the Olympic size, there are no tennis courts, and the concierge is only available 8 hours a day.
Can buyers hold Vista Residences legally accountable for these discrepancies?
Completion Timeline Obligation
“Every owner or developer shall construct and provide the facilities, improvements, infrastructures and other forms of development, including water supply and lighting facilities, which are offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters, letters or in any form of advertisement, within one year from the date of the issuance of the license for the subdivision or condominium project or such other period of time as may be fixed by the Authority.”
What This Means
PD 957 gives developers a clear deadline: one year from the issuance of the License to Sell, unless the Authority grants an extension. This covers everything promised. not just in the approved plans, but also in brochures, prospectuses, letters, and any advertisement. The timeline is strict and failure to meet it constitutes a violation punishable with fines and imprisonment.
- Default deadline: 1 year from issuance of the License to Sell
- The Authority (DHSUD) can extend this period
- Covers facilities in approved plans AND those in advertisements/brochures
- Includes water supply, lighting, roads, drainage, and all infrastructure
- Failure to complete on time is a punishable violation under Sections 38-39
Real-World Scenario
Parkland Estates obtained their License to Sell on March 1, 2024. Their brochure promised a clubhouse, basketball court, and landscaped entrance. By March 2025, only the roads and drainage are complete. The developer claims "the one-year rule only applies to basic infrastructure, not amenities."
Is the developer correct?
Restrictions on Altering Plans
“No owner or developer shall change or alter the roads, open spaces, infrastructures, facilities for public use and/or other form of subdivision development as contained in the approved subdivision plan and/or represented in its advertisements, without the permission of the Authority and the written conformity or consent of the duly organized homeowners association, or in the absence of the latter, by the majority of the lot buyers in the subdivision.”
What This Means
Developers cannot unilaterally change what was promised. Any alteration to roads, open spaces, infrastructure, or public facilities requires BOTH government permission from DHSUD AND consent from the homeowners association (or majority of lot buyers). This dual-consent requirement protects buyers from developers who might try to convert open spaces into additional saleable lots or downgrade promised amenities.
- Alterations require BOTH Authority permission AND buyer/HOA consent
- Covers roads, open spaces, infrastructure, and public-use facilities
- Applies to items in approved plans AND those in advertisements
- Without an HOA, consent of majority of lot buyers is required
- Developer cannot unilaterally decide to change or reduce promised features
Real-World Scenario
Sunrise Village's approved subdivision plan shows a 2,000 sqm park and playground. After selling 80% of lots, the developer applies to DHSUD to convert half the park into 10 additional commercial lots. DHSUD grants preliminary approval. The homeowners association objects.
Can the developer proceed with the conversion?
Frequently Asked Questions
Are "artist's renderings" or "subject to change" disclaimers valid under PD 957?
PD 957 does not recognize such disclaimers. Section 19 makes all representations in brochures, advertisements, and sales propaganda enforceable warranties. A "subject to change" disclaimer does not override the statutory requirement that advertisements must "reflect real facts" and not mislead buyers.
How long does a developer have to complete subdivision improvements?
Under Section 20, the default deadline is one year from the issuance of the License to Sell. The Authority (DHSUD) may extend this period. The obligation covers everything promised in approved plans, brochures, prospectuses, and any form of advertisement.
Can a developer convert open spaces into additional lots for sale?
Only with BOTH the permission of DHSUD and the written consent of the homeowners association (or majority of lot buyers if no HOA exists). Under Section 22, the developer cannot unilaterally alter roads, open spaces, or facilities from what was in the approved plan or advertisements.