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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
In the recent decision of the Supreme Court, it affirmed that the Human Settlements Adjudication Commission (HSAC) has exclusive jurisdiction over contractual and legal disputes between buyers and developers of real estate projects. The Court also clarified that this jurisdiction evolved through a series of legal reforms, including the transfer of regulatory functions from the National Housing Authority to the Housing and Land Use Regulatory Board, and ultimately to the HSAC under Republic Act No. 11201.
In the case of Vivien Cadungog v. Sung Ha Jung (G.R. No. 254543, April 2, 2025), the Supreme Court held that the Human Settlements Adjudication Commission (HSAC) has exclusive jurisdiction over cases involving contractual and legal obligations between buyers and developers of real estate projects.
The Court further explained that this jurisdiction was transferred to the HSAC based on the evolution of laws governing real estate and housing disputes. Specifically, the Court clarified how jurisdiction over these types of cases came under the purview of the HSAC following changes in legal frameworks and regulatory bodies.
Initially, Section 3 of Presidential Decree No. 957 or the “Subdivision and Condominium Buyers’ Protective Decree,” vested upon the National Housing Authority (NHA) exclusive jurisdiction to regulate the real estate trade and bubiness. Presidential Decree No. 1344 was thereafter enacted which expanded NHA’s jurisdiction to hear and decide cases as follows:
SECTION 1. 1n the exercise of its functions to regulate the real estate trade and business and in addition to its powers provided for in Presidential_Decree No. 957, the National Housing Authority shall have exclusive jurisdiction to hear and decide cases of the following nature:
- Unsound real estate business practices;
- 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
- Cases involving specific performance of contractual and statutory obligations filed by buyers of subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman.
Executive Order No. 64852 transferred the regulatory and quasi-judicial functions of the NRA to the Human Settlements Regulatory Commission which, in 1986, was renamed as the Housing and Land Use Regulatory Board (HLURB).
On February 14, 2019, the HLURB was reconstituted as the Human Settlements Adjudication Commission (HSAC) pursuant to Republic Act No. 11201.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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