Reference: Housing and Land Use Regulatory Board (HLURB) Resolution No. 980, Series of 2019 (January 2019)
1. What types of disputes or controversies are covered by the Rules?
According to Section 2 of the Rules, it shall be applicable to (in no particular order):
(a) Actions concerning unsound real estate business practices filed by buyers;
(b) Claims involving refund and other claims filed by subdivision lot/house-and-lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman;
(c) Cases involving specific performance of contractual and statutory obligations filed by subdivision lot/house-and-lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman;
(f) [sic] Disputes between a homeowners association and beneficial users of its services;
(d) Intra-association disputes or controversies arising out of the corporate relations between and among members of homeowners associations; between any or all of them and the homeowners association of which they are members;
(e) Inter-association disputes or controversies arising out of the relations between and among two and more homeowners associations;
(f) Disputes between such homeowners association and the State insofar as it concerns their individual franchise or right to exist and those which are intrinsically connected with the regulation of homeowners associations or dealing with the internal affairs of such entity;
(g) Suits filed in opposition to an application for certificate of registration and license to sell, development permit for condominium projects, clearance to mortgage, and when issued by the Regional Field Office of HLRB in appropriate cases, locational clearances, zoning certifications or permits, including suits for the revocation or cancellation thereof;
(h) Appeals from decisions of local and regional planning and zoning bodies and
(i) Other analogous cases.
2. Is a party required to be represented by a lawyer?
Under Section 11 of the Rules, the appearance of counsel is OPTIONAL.
In relation to Section 12 of the Rules – Mandatory Use of Forms or Templates by Parties Without Counsel, a complainant or respondent who is NOT represented by counsel SHALL use the complaint and answer forms appended to [the] Rules either by filling out the same manually, or by downloading a digital copy thereof from the HLURB website (https://hsac.gov.ph/wp-content/uploads/2021/01/hlurb-rules-of-procedures-2019.pdf) [sic] and encoding the entries, or by using the forms as template or guide. All other applicable requirements under this Rules shall be complied with in the filing of the complaint or answer using the form.
3. Can a party designate a representative to attend on his behalf?
Under Section 11(b), a non-lawyer who represents a party shall attach to the pleading a special power of attorney authorizing such person to file the case and an affidavit duly executed by the party represented stating the reasons why such person was so authorized.
Under Section 11(c), in case the real party-in-interest is out of the country, the special power of attorney must comply with the required formalities for its execution, such as but not limited to, its authentication by the consular offices.
Under Section 11(d), in case the party represented is a corporation, the representative shall attach to the complaint, a board resolution authorizing such person to act on behalf of the corporation.
4. What is the nature of the proceedings before the HLURB?
Under Section 4 of the Rules, proceedings before the HLURB shall be summary in nature. The provision of the Rules of Court shall NOT be applicable EXCEPT in a suppletory character.
5. How does the complainant commence an action?
Under Section 6(a), the commencement of an action before an Arbiter is through the filing of a verified complaint and by paying the required legal fees.
There must also be a certification against forum shopping.
In relation to Section 12 of the Rules – Mandatory Use of Forms or Templates by Parties Without Counsel, a complainant or respondent who is NOT represented by counsel SHALL use the complaint and answer forms appended to this Rules either by filling out the same manually, or by downloading a digital copy thereof from the HLURB website (www.hlurb.gov.ph) and encoding the entries, or by using the forms as template or guide. All other applicable requirements under this Rules shall be complied with in the filing of the complaint or answer using the form.
6. What is a verified pleading? What is a certification against forum shopping?
HLURB Case Form No. 01 is a template provided by the Rules for the COMPLAINT; in a verification, the complainant must also declare that he/she is the actual complainant in the case and that he/she read and understood the contents of his/her complaint, and what was stated therein are true and correct based on his/her personal knowledge and are based on true records.
On the other hand, certification against forum shopping is a declaration of the complainant that he/she did not commence any action or proceeding involving the same issues or subject matter in the Supreme Court, the Court of Appeals or any other tribunal or agency; that there is no similar case pending in the same courts/tribunals, and is he/she learns that there is a similar action or proceeding filed or is pending before such courts or tribunal or agency, he/she undertakes to report such fact to the HLURB proceedings/hearing within five (5) days.
Both verification and certification must be subscribed to and sworn before a notary public (notarized).
Finally, HLURB Case Form No. 03 is a template provided by the Rules for the ANSWER; similar to the complaint, an Answer should likewise contain verification and certification, and should be notarized.
7. Where will a complainant file his/her complaint?
Under Section 7 of the Rules, all complaints or actions shall be filed in the Regional Field Office which has jurisdiction over the area where the project involved is located or, in cases of homeowners suits, in the Regional Field office where the homeowners association is registered.
In relation to Section 21(a), the NON-PAYMENT OF THE FILING FEE at the time of the filing of the complaint is a jurisdictional defect which shall be cause of the dismissal of the complaint without prejudice.
8. What if the complainant is an indigent?
Under Section 9 of the Rules, any party applying to litigate as an indigent and be exempted from the payment of filing fees shall be required to submit a Certificate of Indigency from the Department of Social Welfare and Development, its local District Office or the Municipal Social Welfare & Development Office having jurisdiction over the residence of the applicant or from the Chairman of the Barangay having jurisdiction over the residence of the applicant.
9. What will happen if a Complaint is filed under the Rules?
Under the Rules:
(a) Summons will be sent to the respondent attached with a copy of the complaint and all attachments thereto;
(b) The respondent files an answer;
In connection Section 33 of the Rules, the respondent shall file a verified answer or responsive pleading, together with supporting documents within a non-extendible period of ten (10) days from receipt of the summons, furnishing complainant a copy thereof.
All grounds for a motion to dismiss, counterclaim, or cross-clam must be pleaded or incorporated in the answer; otherwise, these shall be deemed waived.
Note that under Section 15 of the Rules, motions to (a) dismiss, (f) extension of time (g) postponements except for justifiable reasons; (h) admission of pleadings filed beyonf the reglementary period are PROHIBITED pleadings.
10. What if the respondent does not file an answer within ten (10) days from service of summons?
Under Section 34, the complainant may move to declare the respondent in default by serving the respondent a motion to declare him in default and by filing such motion to the proceedings attached with proof of service to the respondent.
Subsequently, under Section 36, the Arbiter, upon declaring a party in default, shall direct the complainant to file within ten (10) days his verified position paper and draft decision, together with supporting documents, after which the case SHALL be deemed SUBMITTED FOR RESOLUTION. The party declared inn default shall be entitled to notice of subsequent proceedings BUT SHALL NOT BE ALLOWED TO TAKE PART THEREIN.
Of course, Under Section 35, when a respondent receives an order of default, he/she may file a motion to lift such order within five (5) days from receipt of the order and has to submit an affidavit of merit showing justification why such order of default should be lifted. Grounds for this motion are limited only to the inability to submit an answer due to fraud, accident, mistake or excusable negligence, and a meritorious defense.
Finally, under Section 37, if a judgment by default is rendered, the party declared in default when aggrieved by such judgment may file an appeal therefrom in accordance with Part 5 of the Rules. Whatever defense the respondent may have against the complainant may still be raised on appeal.
11. What happens if the Respondent files an Answer?
Under Section 38, within five (5) days from the receipt of the Answer, the Arbiter shall issue the notice for the conduct of Mandatory Conference.
This also to consider the possibility of an amicable settlement through mediation, the setting the schedule of the proceedings, definition and simplification of issues, the possibility of entering admissions or stipulations of facts, submission of additional documentary evidence, and discussion of other preliminary matters.
In relation to Section 39, Mediation Proceedings, when necessary, shall be conducted by the Arbiter or a Mediator assigned by the Arbiter.
12. What after the Mediation Proceeding there was an amicable settlement between the Complainant and Respondent?
Under Section 43, if a compromise is reached, the agreement shall be reduced in writing, signed by the parties and attested to by the Arbiter or Mediator.
Thereafter, the Arbiter shall render judgment based on the compromise agreement which shall be immediately final and executory.
On the other hand, under Section 42, when a party fails to appear personally or through a representative during the scheduled mediation proceedings, the party present may move either for the termination of the proceedings or for the resetting thereof, in accordance with the schedule set at the initial conference.
13. What happens if there is no settlement between the parties?
Section 45 of the Rules provide that upon termination of the mandatory conference or mediation proceedings, the Arbiter shall issue an order directing the parties to file within fifteen (15) days from the receipt thereof their respective Position Papers, jointly verified by the parties, attaching thereto the affidavits of their witnesses and documentary evidence as well as their draft decisions as provided for under Executive Order no. 26, Series of 1992.
14. After filing a Position Paper can a party file a Reply to respond to the position paper of the other party?
No. Under Section 15, Reply is a PROHIBITED PLEADING.
15. What happens after the parties submit their respective Position Papers or if the period to file the Position Paper expires?
Under Section 47 of the Rules, the case is deemed submitted for resolution.
16. How will the parties be notified of the Judgment?
Under Section 49, copies of the resolution or judgment will be sent to the parties themselves, there are also other modes to receive a copy of the resolution or judgment under Section 49. See the Rules (Resolution No. 980, Series of 2019) for other ways to receive the Judgment.
17. What is the remedy by a party when he/she receives an unfavorable Judgment?
It is important to know that under Section 50, no motion for reconsideration is allowed nor entertained for such unfavorable judgment, therefore, the remedy for such party is to appeal the Judgment to the HLURB Board of Commissioners.
Under Section 86, the only pleadings allowed on appeal are the appeal memorandum (Appellant) and the counter-memorandum (Appellee). Unless otherwise directed by the Board of Commissioners, no other pleadings shall be allowed and the filing thereof shall not toll the period for the resolution of the appeal.
Most importantly, Section 88 provides for the contents of the appeal memorandum, notably, under (i) an Appeal Bond is required in case of money judgment, either as principal or alternative relief, in cash or manager’s check posted with the Board or surety equivalent to the amount of the award and actual damages, excluding interests, other damages, attorney’s fees, and cost of suit.
Under Section 91, the filing of an appeal shall stay the execution of any decision or order of the Arbiter unless otherwise provided in this Rules.
It is highly recommended for an Appellant or an Appellee to know or understand the strict requirements for perfecting an appeal to the Board. See the Rules (Resolution No. 980, Series of 2019) for the exact requirements.
18. What happens after a Judgment becomes final?
Under Section 102 of the Rules, the Arbiter or the Board of Commissioners shall issue a Certificate of Finality if the judgment has become final and executory at their respective levels.
Under Section 104, a party entitled to the judgment must file a Motion for Execution, and of such motion first furnished to the other party before filing with the Regional Field Office. See the Rules (Resolution No. 980, Series of 2019) for the exact requirements.
Warning: This article is for general information only.
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