The National Housing Authority (NHA) and the Department of Justice (DOJ) on Monday warned the public against real estate scammers who exploit Presidential Decree No. 957 to delay estafa charges and legitimize illegal housing projects.

NHA General Manager Joeben Tai said the agency is working closely with the DOJ to ensure PD 957—the law regulating the sale and development of subdivision and condominium projects—is not misused to avoid accountability.

Tai said they have received reports of developers and syndicates invoking PD 957 to delay criminal cases or secure court injunctions, even when their projects lack the proper permits or clearances from the NHA or local government.

“This cannot be allowed to continue,” Tai said.

Justice Secretary Jesus Crispin Remulla confirmed that certain groups have exploited legal loopholes to defraud buyers while dragging out estafa cases.

“PD 957 was enacted to protect homebuyers, not to shield unscrupulous developers from prosecution,” Remulla said. “We are taking steps to ensure the law is used properly.”

The two agencies said they are working on a legal clarification to distinguish between civil and criminal liabilities in real estate fraud cases. The DOJ is also expediting the resolution of estafa complaints against developers operating without NHA permits.

The NHA urged buyers to verify the legitimacy of housing projects and developers before making payments. Tai added that the agency will soon release a verified list of accredited developers and authorized housing projects to help the public avoid scams.

Both Tai and Remulla urged victims to come forward and report fraudulent real estate activities. They also warned that legal remedies will not shield violators from prosecution under estafa and other criminal laws.