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Is the Sale of Socialized Housing Legal?

The answer is no.


Pay attention to the provisions of Republic Act 7279, otherwise known as the “Urban Development and Housing Act of 1992.” In this connection, Section 14 of the law dictates, viz:

“Section 14. Limitations on the Disposition of Lands for Socialized Housing. — No land for socialized housing, including improvements or rights thereon, shall be sold, alienated, conveyed, encumbered or leased by any beneficiaries as determined by the government agency concerned.


Should the beneficiary unlawfully sell, transfer, or otherwise dispose of his lot or any right thereon, the transaction shall be null and void. He shall also lose his right to the land, forfeit the total amortization paid thereon, and shall be barred from the benefits under this Act for a period of ten (10) years from the date of violation.


“In the event the beneficiary dies before full ownership of the land is vested on him, transfer to his heirs shall take place only upon their assumption of his outstanding obligations. In case of failure by the heirs to assume such obligations, the land shall revert to the Government for disposition in accordance with this Act.”

If the property falls under the category of a socialized housing as defined in Section 3 (r) of the cited law, then the beneficiary is legally proscribed from selling, conveying, or encumbering the same.


Consequently, any act of transfer, sale, or disposition of the socialized housing unit would be rendered null and void.


For your guidance, socialized housing is defined in the following manner, to wit: “Section 3. Definition of Terms. — For purposes of this Act: “(r) ‘Socialized housing’ refers to housing programs and projects covering houses and lots or homelots only undertaken by the Government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, long-term financing, liberalized terms on interest payments, and such other benefits in accordance with the provisions of this Act;”

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