REVISED IMPLEMENTINGRULES AIYD REGUII\TIONS

FOR PD 957

A JOINT PROJECT OF THIIRULES AI\D STANDARDS DEVELOPMENT GROUP

AND THE TECHNICAL WORKING GROUPON THE REVISION OF THE IRR

AUGUST 2OOI

Rcruhlic d (tE thilinoir€

C)ffice of rhc PresidentHousing and Urban Developmenr Coordinating CorlncilHOUSING AND LAND USE REGULATORY BOARD

BOARD RESOLUTTON NO. R 699Series of 2001

AMENDING THE RULES AND REGULATIONS IMPLEMENTING THESUBDIVISION AND CONDOMINIUM BUYER'S PROTECTIVE DECREE

AND OTHER RELATED I-AWS

WHEREAS, the Housing and Land Use Regulatory Board (HLURB) isvested with rule-making and standard setting functions under Executive OrderNo. 648, s. of 1984 as amended by Executive Order No. 90, s. of 1986;

I,VHEREAS, Section 36 0f pD 957 mandates HLURB to issue necessarystandards, rules and regulations for the effective implementation of the provisionsof this Decree;

WHEREAS, the powers of HLURB to approve subdivision plans hasbeen devolved to cities and municipalities pursuant to RA 7160, yet EO 71,series of 1993 stipulates that the exercise of such devolved powers shall be inaccordance with the implementing rules and standards of PD 957 and otherrelated laws as promulgated by HLURB;

WHEREAS, the signed Memorandum of Agreement (MOA) by andbetween HLURB and the Professional Regulation Commission (PRC) recognizesthe need to monitor the practice of licensed professionals in subdivision andcondominium projects;

WHEREAS, the Housing and Urban Development Coordinating Council(HUDCC) issued Council Res. No. 01, Series of 2000, approving the definitionof loan ceilings/limits of housing packages;

WHEREAS, the Board received clamor from the Regional Offices, privatesectors, standards implementors and other stakeholders to review and re-examine the existing policies, rules standards and procedures pertinent to theissuance of subdivision and condominium development permits and licenses;

WHEREAS, the Board finds it necessary to harmonize the policies, rules,standards and procedures with recent issuances;

HLURB Bldg., Kalayaan Aventre comer Mayaman Street, Diliman, Quezon City

(Pag€ 2 of Boa.d Res. xo. n -6 9J

WHEREFORE, be it , RESOLVED as it is hereby RESOLVED that theRevised lmplementing Rules and Regulations to lmplement PD 957 , aftached asAnnex 1. be APPROVED.

APPROVED, 161" 20dJt6sy of August 2001, Quezon City.

ROiIULO Q. M.,FABULCommissioner andChief Executive Officer

EDUARD/{ gmh*Undersecretary, DrLql'/

hffE#f'='^As'5i5tant Secretary, DPWH

NSANGcretary

TIICHAE|rT. DEFENSOR

.CALIDA6rsecretary ,

Commissioner

Commlssioner

o

RULE I.

Section 1.

Section 2.

Section 3.Section 4.

RULE II .

Section 5.

RULE m.

Section 6.

RULE IV,

Section 7.Section 8.Section 9.Section 10.Section 11.Section 12.

RULE V.

Section 13.Section 14.Section 15.

TABLE Of CON'TENTs

TITTE

MINIMUi' DESIGN STANDARDS

Design Standards and Guidelines for Residential SubdivisionProjectsDesign Standards and Guidelines for Residential CondominiumProjectsConversion of Existing Structures to Condominium ProjectsVariances

APPROVAL OF SUBDIVISION PLAN

Application for Approval of Subdit ision Development Plan

APPROVAL OF CONDOMINIUM PLAN

Application for Approval of Condominium Plan

REGISTRATION AND LICENSING OF SUBDIVISIONAND CONDOMINIUM PROJECTS

Application for RegistrationApplication for License to SellNotice of PublicationCertificate of RegistrationLicense to SellPerformance Bond

REGISTRATION OF REAL ESTATE DEALERS, BROKERSAND SALESMEN

Application {or Registration of Brokers and SalesmenCertificate of RegistrationBonds

PTGE

1

24

ZY

29

30

34

424243

?A

4040414141

TITTE

tIISCELLANE0US PRoVISIONS

Definition of TermsSubmission of Semestral Reports on OperationsDisplay of Certificate of Registration or License to SellLost or Destroyed Certificate of Registration or License to SellAdvertisementTime of CompletionTransfer of Ownership or Change of NameAlteration of PlansNon-forfeiture of PaymentsRegistration of ConveyancesMortgagesRealty Tax and Other ChargesComplaints Against Owners, Developers, Dealers,Brokers and SalesmenAdministrative FinesCriminal Penaltiesldentification of Lot Subject of SaleBroker/Salesman as Witness to SalesFeesApplicabilityTransitory ProvisionsSeparability ClauseEffectivity

PIGE

RULE VI.

Section 16.Section 17.Section 18.Section 19.Section 20.Section 21,Section 22.Section 23.Section 24.Section 25.Section 26.Section 27.Section 28.

Section 29.Section 30.Section 31.Section 32.Section 33.Section 34.Section 35.Section 36.Section 37.

43464646474747474848484848

484849494949494949

TIIIE

LIST OF TABLES

Table 1.Table 2'

Table 3.Table 4.Table 5.Table 6.Table 7.Table I.

1 Hectare and AboveHierarchY of RoadsRoad Righfof-WaYWiOtn ot-ptantlng Strips and SidmalksMinimum Lot AreaMinimum Lot Fronhgeiilffi;;.ign Sia-noaros for a Residential Subdivision PgectUnder PD 957

PAGE

6

6

I

810131418

LIST OF FIGURES

I

t Along Main Public Road

t for Rowhouses

ANNEXES

Annex A Presidential Decree No 957Presidential Decree No 1216Rules and negulations lmplementing Sec' 31 of PD 957

as Amended bY PD 1216Annex B The Condominium Actlnn.* C Resolution No. R-53 (Variance)

vq

1112, t q

50

65

6882

l l l

REVISED RULES AND REGULATIONS IMPLEMENTING THESUBDIVISION AND GONDOMINIUM BUYER'S PROTECTIVE

DECREE (pD 957) AND OTHER RELATED LAWS

Pursuant to Article lV Sec{ion 5 c) of Executive Order No. 648 the followingrules are hereby promulgated by the Housing and Land Use Regulatory Board(HLURB) to implement Presidential Decree Nos. 957, 1216, 1344 and other relatedlaws applicable to open market and medium cost subdivision and cpndominiumprojects.

RULE IMINIMUM DESIGN STANDARDS

Section 1. Design Standards for Subdivision

Residential subdivision projecis shall conform with the follorving minimum designstandards, applicable local government units' (LGU) zoning ordinances as well aspertinent provisions of the National Building Code if project is with housingcomponent:

A. Site Griteria

'1. Location

Conformity with Zoning Ordinance/Comprehensive Land Use Plan

Subdivision prolects shatl be located in residential zones or other areasappropriate for residential uses. lf there is no Zoning Ordinance or approvedComprehensive Land Use Plan, the dominant land use principle and sitesuitability factors cited herein shall be used in determining suitability of apro1ect.

Subdivision projects supportive of other major urlcan activities (e.9. housingfor industrial workers) may be allored in area zoned for the said urbanactivities.

2. PhysicalSuitability

Subdivision projects shall be located within suitable sites for housing andoutside hazard prone areas and protection areas as provided for by pertinentlaws. Critical areas (e.9, areas subjec{ to flooding, landslides and those withunstable soil) must be avoided.

The site shall be stable enough to accommodate foundation load withoutexcessive earthmoving, grading or cufting and filling.

*T,-ri'

B.

3. Accessibility

The site must be served by a road that is readily accessible to publictransportation lines. Said a@ess road shall conform wrth the standards setherein to accommodate expected demand caused by the development ofthe area. ln no case shall a subdivision proJect be approved without thenecessary access road/right-of-way. Said access road right-of-way may beconstnrted either by the developer or the local government unit.

Planning Consideratlons

1 . Area Plannlng

Planning and designing of subdivision projects shall take into account thefollowing:

a. safety and general welfare ofthe future occupants:

b. adequate, safe, efficient and integrative road circulation systemservicing every lot therein;

c. judicious allocation of land uses for diversity and amenity:

d. preservation of site:

e. proper siting or orientation of lots;

f. harmony with existing and proposed development in the vicinity;

g. application of workable design principles or parameters for a wellplanned and self-sustaining environment.

When a developer or planner submits a Planned Unit Development (PUD)type of pro1ect, the layout shall likewise conform to the stiandards forresidential/condominium projects.

a. Open spaces

Open spaces shall conform to the provisions of P.D. 1216 and itsimplementing rules and shall include the following:

a.1 Streets - adeguate and safe means of vehicular and pedestriancirculation and easements for utilities and planting strips, shall beorovided.

a,2 Walks - paved walks shall be provided to the living units ftomstreets, parking spaces and from living units to play areas

a.3 Parks and playground - suitable recreational area(s) shall beallocated within the subdivision. Where applicable, a hierarchy of

Y41 ,"f

such recreational areas may be provided for, such that, astrategically located main park area is supplemented orcomplemented by one or more smaller pocket(s) or areas forrecreational use. These areas must be accessible to living unitsand free from anv form of hazard or risk. Said parks andplaygrounds shall be cleared and free from any debris. Parks andplaygrounds as much as possible shall be at street level.

b. Facilrties and Amenities

Areas required for subdivision facilities and amenities shall bejudiciously allocated in accordance with the provisions hereinsoecified.

c. Density

Density of subdivision projects shall conform with the residentialdensities set forth in the zoning ordinance of the city/municipalitywhere project is located. Where there is a mixture of housing typeswithin the subdivision (such as singledetached, row house' townhouses, etc.), density shall include the total number of dwelling units inmulti-storey structure plus the total number of lots intended for singleand semidetached houses.

2. Site Preservation

a. Slope

D ,

The finished grade shall have a desired slope to allow rain water to bechanneled into street drains. Where cut and fill is necessary, anappropriate grade shall be aftained to prevent any depression in thearea.

Grading and ditching shall be executed in a manner that will preventerosion or flooding of adjoining properties.

Preservation of Site Assets

Suitable trees with a caliper diameter of 200 millimeters or more'shrubs and desirable ground cover per Department of Environmentand Natural Resources {DENR) rules shall be presewed' Where agood quality top soil exists in the site, it shall be banked and shall be

[reserved ior finishing grades of yards, playgrounds, parks andgaroen area.

Ground Cover

Grass, shrubs, plants and other landscaping materials used for groundcover shall be of a variety appropriate for its intended use and location'They shall be planted so as to allow well-tended cover of the area.

^.1 ,-ft'

Easements

Subdivision projects shall observe and conform to the following provisionson easements as may be required by:

o.

Chapter lV, Section 51 of The Water Code, on water bodies;

National Power Corporatton (NPC), on transmission lines;

PHIVOLCS per Resolution No. 515, Series of 1992, on identified faulttraces;

Other public utility companies and other entities' right-of-way:

National/local govemment units for projects abutting national roads(primary roads) where adequate easement shall be provided for,including loading and unloading areas;

Other related laws.

e.

o.

f

4. Girculation

Depending on the classification of roads adjacent to the subdivision andthe size of the project site, road network should result into a hierarchy offunctions and should define and serve the subdivision as one integratedunit.

a. Roads complemented with pathwalks within the subdivision must beso aligned to facilitate movement and to link the subdivision to thenearest major transportation route andior adjacent property.

Whenever there are existing roads within the project site which shallbe made part of the subdivision plan, these shall be improved inaccordance with the standards set forth herein.

b. Streets should conform to the contours of the land as far asoracticable.

Where a proposed project adjoins a developed property, roads withinthe said project shall be connected/integrated/aligned with existingones.

Where a proposed project adjoins undeveloped property, a provisionfor future connection shall be mandatorv.

c. As far as practicable, streets shall be laid out atminimize critical intersections such as blind comers.eic.

C. Roads shall conform to sound engineering practices.I

#" " l

right angles toskew junction,

e. Subdivision pro1eds shall comply to the pertinent requirements of BatasPambansa No. 344, otherwise known as the Accessibilitv Law.

5. Installation of Street NameVSigns:

The developer shall bear the cost of installation of street namesi/signscoincident with the construction of streets.

C. Design Parameters

1. Land Allocation

For open maket and medium cost subdivision proiects with an area of one(1) hectare or more, the percentage (o/o) allocation of land shall be asfollows:

a. saleable area - maximum of 7Oo/o of the gross area

b. non-saleable area - minimum of 307o of the gross area

The following non-saleable area shall be observed consistent with PDNo. 1216:

b.1 ParkVPlaygrounds

Allocation ol area lor parks and playgrounds shall be mandatory forprojects one (1) hectare or more and shall be deemed non-buildable area. The same shall be strategically located within thesubdivision project. Area allocated for parks and playgrounds shallin no case be less than 100 Sauare meters.

The percentage requirement for parkVplaygrounds shall be asfollows:

Table 1. Parks and Playgrounds Allocation

DENSlTY(No. of Lots/thvelling Unit

PARKS/PLAYGROUNDSAllocation in Percent of Gross Area

(wPer

20 and below21 -2526-3536-s051 -65

Above 65

3.54-05.0b-u7.09.0

i

i

I*4,.

b.2 Community Facilities

Mandatory provision of areas for community facilities, such asneighborhood multi-purpose center both for open market and mediumcost housing projects with area one (1) hectare and above. Theseareas are non-saleable. However, the developer may provideadditional areas for community facilities such as schools andcommercial/reti il centers in excess of the mandatory requirement setforth in this rule which shall be deemed saleable. The use of the saidarea shall be indicated in the plan and shall be annotated in the tiilethereto. (Refer to Table !)

f able 2. Facilities According to the Number of Sateabte Lots/Dwelling Units for Subdivision Projects t hectare and Above

No. ofSaleable Lots

and/0rDwelling Unit

Neighbor'hoodMulti-

PurposeCenler*

ConvenienceStores &Other

CommercialCenters..

Elementary

School--

HighSchool'*

TricycleTerminals--

10 & below

11-99

100 - 499

500 - 999

1000 - 1499

1500 - 1999

2000 - 2499

2500 & Over

x

X

x

x

x

X

x

X

x

x

x

x

x

X

X

X

Mandatory non-saleableOptional saleable but when provided in the plan the same shall beannotated in the title

d,l ,-/'

b.3 Circulation System

b.3.1 Hierarchy of Roads

The circulation system for open market and medium costhousing projects shall have the following hierarchy of roads:

Table 3. Hierarchy of Roads

Project SizeRange(Has. )

Open Market Medium Cost

2.5 & below

Above 2.5 - 5

Above 5 -10

Above 10 - 15

Above 15 - 30

Above 30

major, minor, motorcourt, alley

maior, collector, minor,molor court, alley

-oo-

-do-

-oo-

major, minor, motorcourt, alley

-oo-

major, collector, minot,motor court, alley

do-

-oo-

do-

Minimum road right-of-way shall be in accordance with b.3.2of this section.

ln no case shall a major road be less than 10 meters whenused as main access road and/or as future connection.

a) Major Roaci - a street or road linking the site and serves asthe main traffic artery within the project site and shalltraverse the longer axis of the property.

b) Collector Road - a street or a road that servicespedestrian/vehicular traffic from minor roads leading tomajor roads.

c) Minor Road - a road which main function is to provide directaccess to lots and other activity centers.

d) Motor Courts - shall have a right-of-way of not less than 6meters in width with provision for sufficient space forvehicular turn around in the form of a cul-de-sac, loop,branch or "T", with a maximum iength of 60 meters inclusiveof terminal.

e) Service Roads - roads which provide for the distribution nftraffic among individual lots and activity centers.

4"'

f) Alley - a 2-meter wide walkway which shall be used tobreak a block and to serve pedestrians and for emergencypurposes- lt shall not be used as access to property.

b.3.2 Road Right-of-Way (ROW

The conesponding right-of-way for hierarchy of roads shall beas ficllows:

Table 4. Road Right-of-Way

Projec{ Size(Hectares)

Right4f- Way (Row)(Meters)

Open Market Medium Cost

2.5 & belowAbove 2.5 - 5Above 5 - 10Above 10 - 15Above 15 - 30Above 30

Maior Collector Minor10812 10812 10812 10815 12 1015 12 10

Maior Collector Minor108JO121212. tE

888810

10101012

Motor CourtAlley

CaniaoervavROWD

2

ROWoz

Cariaqeurav

z

Note: a 6-m seMce road,both ends connecting to aminor oad, shall beallored br blocks notexc€edinq 60 meters.

Major roads shall maintain a unifcrm width of road right-of-way. Tapering of road width shall not be alloryed where theroad rightof-way is wider than the prescribed stiandard forthe interconnecting road of the proposed subdivision.

Interior subdivision project must secure right-of-way to thenearest public road and the right-of-way shall be designatedas interconnecting road with a minimum width of 10 meters.This fact shall be annotated on the title of said road lot andmust be donated and deemed tumed over to the LGU uponcompletion of the said interconnecting road. (See Figure 1)

a)

b)

d,l ,

E U B O . l

s u 8 0 . 2

suBo . t

g u g D . 4

Figure 1. Interconnecting Road

c) Subdivision projects abutting main public road must providea setback of $meter deep by S-meter in length at both sidesof the subdivision entrance to accommodate loading andunloading of passengers (see Figure 2).

ITA|N RIEtG ROAO

Figure 2. Setback Requirement Along Main Public Road

*L'.ft

I

d) Subdivision projects shall have provision for futureexpansion where applicable, by designating the majorroads, as prescribed in Sec. 1.C.b.3 2 as theintercrnnecting road right-of-way for both open market andmedium cost housing proJects.

b.3.3 Planting Strips

Planting strips shall be observed with the following roadsoecifications:

Table 5. Width of Planting Strips and Sidewalks

ROADWIDTH(m)

OPEN MARKET MEDIUM COSTPlanting

SlriP(m.)

Side{ralk(m)

PlantingStrip{m)

Side{ralk(m)

15.0012 0010.008.006.00 (Service Road)

1 .300.800.800.40

OPIIr

| 1 .201.201.200.60

)nal

1 .300.800.800.40

ootn

120| .zu1 .200.60

)nal

b.3.4 Road Pavement

All roads for both open market and medium cost housing projectsshall be paved with either concrete or asphalt. Concrete pavernentshall have a minimum thickness of 150 millimeters and a minimumcompressive strength of 20.7 Mega Pascal (Mpa) while asphaltshall have a minimum thickness of 50 millimeters

Sidewalk pavement shall have a minimum compressive strength of17.2 Mega Pascal.

b.3.5 Road Intersection

Roads should intersect at right angles as much as practbable.Multiple intersections along major roads shall be minimized.Distance between offset intersections should not be less than 20meters from corner to comer. ,ntersections should o@ur onstraight sections instead of on curved sections of road and ongentle grades with clear sight distance.

Road intersections shall be provided with adequate curb radiiconsistent with sound engineering principles. (see Figure 3)

4,1.r''

l 0

cul- oE - sAc

7 : cuRE RAotus

Fl9ur6 3 : Curb Rldai Dlmension

s,.I I

Flgure 4. Road Grade/$lope

2. Lot RequiremefltA

a. Lot Layout:

The foflowing shail be considered when protting the subdivisionprgect:

a-1 Preservation of site assets and proper siting orientation of rots;blending with existing and proposed development in the vicinity;ano

a.2 Application of workable design principlegparameters for a wellplanned environment.

b.3.6 Road Grade/Slope

Crown of the roads shall have a slope of not less than 1.5percent, while curbs and gutters shall not be less than 7peroent to 9 peroent (see Figure 4).

Grades and vertical curbs shall conform to the designrequirements of the Department of public Works andHighways (DPWH).

FterrcF yvAY

CARRI AGE

dupler/single aftached and rowhou$s.

o9/t"/

y', 1.s"t"Wta----

To aeommodate a wider range of clientele (in terms of income leveland ..lifestyle), .and to provide diversity in housing design in asubdivision projecl, the owner/developei is encouraied to ailocateareas for vanous housing types such as singl+.detached,

4"'

b. Minimum Lot Area

The minimum lot area for various types of housing under open marketand medium mst housing projec{ shall be as follcws

Table 6. Minimum Lot Area

WPES OF HOUSING OPEN MARKET(Sqm.l

MEDIUM COST(Sqm.)

a. Single Detachedb. Dupler/SingleAttachedc. Rowhouse

't20

9660

1008050

Saleable lots designated as duplo</single aftached andlor rolhouselots shall be provided with housing units.

Price of saleable lots intended for singledetached units shall notexceed 40 percent of the maximum selling price of house and lotpacKages.

Lot Design

c.1 Saleable lots shall be designed such that they are not bisectecl bypolitical boundaries, water courses, drainage ways and utilityl ines.

c.2 A lot shall be served by an independent access road.

c.3 Whenever possible, lot frontage elevation shall be at street level.

c.4 Lot lines shall preferably be made perpendicular to street lines.

c.5 Deep lots and inegularly shaped lots shall be avoided'

c.6 Lots shall be planned with adequate width for side yards-

c.7 Lots shall be protected against risks.

c.8 Lots shall not be laid out if potential risks exist e.g. erosion,slides, flooding, fault lines, etc.

4"'

l 3

d. Lot Frontage

The minimum fot fontages ficr vario.rs types of housing under openmarket and medium cost housing projects shall be as follows:

Table 7. Minimum Lot Frontage

TYPES OF HOUSING/LOT FRONTAGE (m.)

1. Single Detacheda. Corner Lotb. Regular Lotc. lnegular Lotd. Interior Lot

2. Duplex/Single Attached3. Rowhouse

1210

3I4

The number of rowhouses shall not exceed 20 units per block/clusterbut in no case shall this be bevond 100 meters in lenoth.

3. Length of Block

Maximum length of block shall be 400 meters, however, blocks exceeding250 meters shall be provided with an alley approximately at mid-length.

4. Shelter Component

a. Minimum floor area for open market housing shall be 42 squaremeters and 30 square meters for medium cost housing.

b. Minimum level of completion - complete house for all types of dwellingunits based on the submitted specifications.

Provision of firewall shall be in conformity with the Fire Code of thePhilippines and mandatory for duplexeVsingle aftached units andevery unit for rowhouses (refer to Fig. 5).

^,1 ,.n.

14

d ? i-et_-l-

=a ? io a

---r-I

=c ? lo l

--T-

6-

Figure 5. Firewall Requirement for Rowhouse

Yard/Setback

The minimum setback of dwelling units both for open market and mediumcost housing projects shall conform to the National Building Code of thePhilippines.

Water Supply System

a. Specific Rules:

The subdivision water supply shalt be mandatory or obligatorily@nnected to an appropriate public water system or community systemprovided that the water supply is enough to meet the total dailyrequirements of the anticipated population.

When neither a public water system, nor an acceptable communitysystem is available, a centralized water supply system shall beaccepted, provided that:

a.1 The technical consultant of the developer shall determine thelocation and discharge capacity of the water supply source(s)

. l$^.r

PLAN

within the subdivision;

i5

a.2 The permit to drill well(s) or tap water lines fiom the appropriategovemment agencies shall be obtained;

a.3 The water source shall be sufiicient to meet the daily waterrequirements of every household in the subdivision;

a.4 No hazards shall exist in the immediate virjnity of the vvatersource that might reduce or pollute the supply;

a.5 Water distribution shall be assured.

Accordingly, every water service entrarrce or @nneclion shall beprovided with a pressure.compensating, self-regulating, constantflow valve or fitting to ensure equitable distribution of water, waterand power conservation, and long-term savings on operationalcosts of the water system.

a.6 Each subdivision shall have at least an operational deegrvell andpumpsets with sufiicient capacity to provide Average DailyDemand (ADD) to all homeowners.

b. Water Requirement - Every dwelling unit shall be served by anindividual supply of water suffcient to meet the total hourly domesticneeds of every household for any 8 hour period.

The Average Daily Demand (ADD) for both open market and mediumcost housing projects is 150 liters per capita per day (LCPD)household connection. (Per Board Resolution No. 506, series of 1992)

c. Fire Protection Demand - Provision ficr fire protection shall complywith the requirements of the National Fire protection Code.

d. Water Tank Capaoty - 20% ADD plus fire reserye.

e. Pipes - Pipes shall conform to the standards required by MetropolitanWatemorks and Sewerage System (MWSS) and/or Local WaterUtilities Administration (LWUA).

7. Electrical Porrer Supply System

Mandatory individual household connedion to primary and/or alternatesources of power.

Installation pracfices, materials and fixtures used shall be in accordanceWth the provisions of the Philippine Eleclrical Code andor locat utilitycompany.

Provision of street lighting per pole is mandatory at SGmeter distanceand every other pole if distance is less than 50 meters.

Electrical bills for streetlights shall be proportionately shouldered by the

YI

4"' l 6

users thereof prior to issuance of Certificate of Completion (COC) andtum-over of open space to LGU.

Sewage Disposal 9ystem

The salage disposal system for open market and medium costsubdivision projects shall either be any of the follor/ing:

a. Connection to Community Sewer System

Connections shall be made to an approved public or community sewersystem, subiect to the requirements and provisions of the SanitationCode of the Philippines and other applicable rules and regulations.

b. Septic Tanks

Where community sewer system is not available, se\flage shalt bedisposed of and treated in individual septic tank6.

Conskuction of individual septic tanks shall conform to the designstandards of Sanitation Code of the Philippines (PD 856) ahd NatienalPlumbing Code of the Philippines (RA 1378).

9. Draindge Syrtem

The draihdge system of the subdivision shall conform to the naturaldrainage pattern of the subdivision site, and shall drain into appropriatewater bodies or public drainage system. In no case shall drainage outfallsdrain into a private lot. lts layout shall conform to sound engineeringdesign/ principl0s certified by a duly licensed civil/sanitary engineer. Drainlines shall be of durable materials and approved installation practices.

For both open market and medium cost subdivision p@ects, undergrounddrainage system shall be properly engineered and environmentally soundand shall be provided with adequate Reinforced Concrete Pipes (RCP),catch basins manholes, inlets and cross drain for efficient maintenance.Minimum drainage pipes diameter shall be 30 centimeters.

10. Garbage Disposal System

The subdivision shall have a sanitrary and eflicient refuse collection anddisposal system, whether independently or in conjunction with themunicipaUcity garlcage collection and disposal services.

The Summarized Planning and Design Standards for Open MarketMedium Cost Subdivision Projects is presented in Table 8.

and

f",1,.

17

I

TABLE 8. Planning and Design StandardsFor A Residential Subdivision Project

Under PD 957

PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUSING

1. Project Location Within suitable sites for housingand outside potential hazardprone and protection areas.

Within suitable sites for housingand outside potential hazardprone and protection areas.

2. Land Allocation forprojects t hectare andabove.

a. Saleable area

b. Non-saleable area

b.1 Area allocated forparKs andplaygrounds forprojects t ha. &aoove.

a. 7O% (maximum)

b. 30%(minimum)

Mandatory allocation for parks and playgrounds per tabulationbelow:

Density(No. of Lots or Dwelling Unit

Per Hectare)

20 & below21 _25zo -Ja36-5051 -65Abcve 65

Percentage ofGross Area Allocated forparks and playgrounds

3.5o/o4-O%5.0%6.0%7.0%9.0%

In no case shall an area allocated for parks and playgrounds be lessthan 100 sqm and the same shall be strategically located within thesubdivision.

b 2 Area allocatedfor communityfacilities

Mandatory provision of areas for community facilities such asneighborhood multi-purpose center for housing projects with area 1hectare and above. These areas are non-saleable. However, thedeveloper may provide areas for community facilities such asschools and commercial centers in excess of the mandatoryrequirement set forth in this rule which shall be deemed saleable.The use of the said area shall be indicated in the olan andannotated in the title thereto. (Refer to Table 1 )

b,3 CirculationSystem

Observe hierarchy of roads

^,1 ,,$ I8 r,^

PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUS]NG

Minimum Lot Areasa. Single Detached

b. Duplex/Single-Attached

c. Rowhouse

?

120 sqm

96 sqm

60 sqm

100 sqm

80 sqm

50 sqm

Saleable lots designated as duplex and/or rowhouse lots shall beprovided with housing components.

Price of saleable lots intended for single-detached units shall notexceed 40% of the maximum selling price of house and lotpacKages.

4. Minimum Lot Frontage4.1 Single Detached

a. corner lotb. regular lotc. inegular lotd. interior lot

4.2 Single Aftached/DuPlex

4.3 Row house

12m10m6m3m

8m

4m

5. Length of Block Maximum length of block is 400 meters, however, blocksexceeding 25O meters shall be provided with an alleyapproximately at mid-length.

Roads Right of Way

Project size range

2.5 has. & belowAbove2.5- 5has.Above5 - 10has.Above 10 - 15 has.Above 15 - 30 has.Above 30 has.

6.

Major road

10m12m12m12m15m15m

Collector

10 m10m10m12m12m

Minor Road

8m8m8m8m

10m10m

MajorRoad Collector MinorRoad

10m - 8m10m - 8m12m 10m 8m12m 10m 8m12m 10m 8m15m 12m 10m

A 6.0 meter service road, bothends connecting to a mlnorroad, shall be allowed for blocksnot exceeding 60 meters.

^,1 ,'^f1' l 9

PARAMETERS OPEN iJIARKET HOUSING MEDIUM COST HOUSING

Motor CourtAlley

ROW CARRIAGEWAY

2o

CARRI..AGEWAY

cz

ROW

62

Alley is a 2-meter wide walkway which shall be used to break ablock and to serve both pedestrians and for emergency purposes.It shall not be used as access to property.

Right-of-Way (ROW) of major roads shall be increased as projectsize increases.

Major roads shall maintain a uniform width of road right-of-way.Tapering of road width shall not be allowed, where the road righfof-way is wider than the prescribed standard for the interconnectingroad of the proposed subdivision.

NOTE:

1 Interior subciivision project must secure rightof-way to the nearest public roadand the right-ofway shall be designated as interconnecting road with a minimumwidth of 10 mete$. This fact shalt be annotated on the title of said road lot andmust be donated and deemed turned over to the LGU upon comDletion oi the saidinterconnecting road. (See Figure 1).

2 Subdivision projects abutting main public road must provide a setback of 3-meter deep by 5-meter in length at both sides of the subdivision entrance toaccommodate ioading and unloading of passengers. (See Figure 2)

3. Subdivislon prqects shall have provision for future expansion where applicable,by designating a minimum interconnecting road rightof-way of 10 meters.

Hierarchy of Roads perProyect Size Range

2.5 has. & below

Above2.5 - 5has .

Above 5 - 10

Above 10 - 15 has.

Above .l5 - 30 has.

Above 30 has.

a

major, minor. motor court, alley

major, collector, rninor, molorcourt, a'ley

-dc-

-Co-

-oo-

major, minor, motor court, alley

_do_

major, collector, service road,mtnor, motor court, alley

_do_

_do-

_do_

4"' 2A

PARAMETERS OPEN MARKET HOUSING MEDIUM COST HOUSING

9. Roads Specificationsa. Planting Strip (PS)*

Sidewalk (SW)

ROW15m12m10m8m6 m (Service Road)

PS1.3 m0.8 m0.8 m0.4 moptional

sw1.2m1 .2 f i1.2n0.6 m

optional

Road PavementMajorMinorMotor CourtSidewalkAlley

b.Concrete/AsohaltConcreteiAsphaltConcrete/AsohaltConcrete/AsphaltConcrete/Asphalt

Concrete/AsphaltConcrete/AsphaltConcreteiAsphaltConcrete/AsphaltConcrete/Asphalt

Concrete road pavement shall have a minimum thickness of 150mitf imeters and a minimum compressive strength of 2A 7 MPawhile roads may either be concrete of same thickness andcompressive strength or asphalt with minimum thickness of 50millimeters.

Sidewalk oavement shall have a minimum compressive strength of17.2MPa.

l0 Water Supply Mandatory connection to appropnate public water system;centralized water suPPlY system.

Each subdivision shall have at least an operational deepwell andpump sets with sufficient capacity to provide Average DailyDemand (ADD) to all homeowners-

a. Minimum WaterSupply Requirement 150 liters per capita per day for household connection

b. Fire ProtectionDemand

Provision for fire protection shall comply with the requirements ofthe Fire Code of the PhiliPPines.

-f, l'2 l

a.2 The minimum area for a single park/playground shall be 50 squaremeters. lncrements of 3.00 square meters licr every additional familydwelling type in excess of 10 units shall be added.

a.3 Parks/playground or other recreational fucilities may not be requiredif the condominium is located not more than or 800 meters from apublicly accessible parUplayground/or other recreational facilities.

a 4 Parks/playground shall be properly landscaped to accommodateboth active and passive activities.

a.5 Parks/playground may be accommodated in the yard/s providedsuch yards are adequate and usable as park.

a.6 Other facilities (optional) such as tennis courts, swimming pool,etc. may be integrated with the parktplayground.

Parking Space Requirement

b.1 For Residential Condominium Units

b.1 . 1 The parking slot requirement for residential condominiumpro1ecl shall be in accordance with the provisions of theNational Building Code of the Philippines.

b-1-2 Off-site pa*ing may be allowed in addition to the on-siteparking provided that the designdted parking area is part ofthe projec{ and provided further that the required distanceshall be in ao@rdance with the National Building Code of thePhitippines.

b.1.3 Compliance with additional parking spaces as requiredby local ordinances shall be mandatory.

b.2 For Commercial Condominium Units

b.2.1 The minimum parking slot requirement shall be in acoordancewith the provisions of the Nationat Building Code of thePhilippines.

b.2.2 Off-site parking may be allorved in addition to the on-siteparking provided that the designated parking area is part ofthe project or the project is within the commercial subdivisionwhere common parking area is part of the approvedsubdivision plan and provided further that parkingarrangements are explicitly indicated in the contract of sale ofproperty to be developed. Off-site parking shall not belocated 200 meters away from condominium project.

+.26

c. Access Roads

Roads shall serve every building, parking space, parUplayground andservice points (e.g. garbage collection points). Minimum roads or righfof-way shall be I meters, 6 meters thereof shall be the carriageway and theremaining 2 meters shall be developed as sideu/alk/planting strip.

Pathwalks shall be provided for pedestrian circulation with a minimumwidth of 1.2 meters.

Construction of roads, sidewalk an<.| pathwalks shall be in accordance withthe standards of residential subdivision. Space for tum around at deadend shall be provided.

Direc{ vehicular access to the property shall be provided by public streetor alley.

An independent means of access shall be provided to each dwelling, orgroup of dwellings in a single plot, without trespassing adjoiningproperties. Utilities and service facilities must be independent for eachdwelling unit.

An indeoendent means of access to each living unit shall be providedwithout passing through any yard of a living unit or any other yard.

c.1 Hierarchy of Roads

For horizontal condominium prgects, the hierarchy of roads shall bethe same as the minimum design standard requirements forsubdivision Prolects.

c.2 Pavement

All roads (major, minor, motorcourt) for both residential andcommercial condominium projects shall be paved withconcrete/asphalt.

Basic Facilities and Services

d.1 Service Area (Laundry/Drying Area)

Adequate laundry and drying areas shall be provided.

Where such service areas are held in common, they shall havesuitable outdoor locations, fenced or screened and kept away ftomliving rooms, entranc€ or front yards.

+,d.2 Water supply, power, s€werage and drainage utilities shall conform

to the requirements of a subdivision.

27

d.2.1 ReservoirMater Tank

For multi-storey buildings

lf the height of the building requires water pressure in excessof that in the main water line, a water tank shall be provided.

Tank shall also be required if the peak drawn should reducethe pressure on the highest usable floor to less than0.06 Mpa - the minimum pressure required for satisfactoryoperation of fixtures, particularly those wrlh flush valves.

d.2.2 Capacity - 2oo/o Average Daily Demand plus fire reserye

d.3 Mechanical Equipment and Service Areas

d.3. 1 Provision of elevators shall conform to the olans andspecifications of the duly licensed architecUengineer whoshall determine the requirement for elevators including thenumber of cars. capacity, safety features and standards,elevator type, speed and location in relation to the over_alldesign and use of the building; the design architecUengineershall certify under oath that all the components thereof are inaccordance with the National Building Code of thePhilippines, the Accessibility Law and national industrystahdards and other pertinent laws.

d.3,2 Compliance to the provisions of the Fire Code of thePhilippines, shall be mandatory.

d.4 Refuse Collection/Disposal

Centralized garbage depository area and efficient refuse collectionand disposal services shall be provided whether independenily or inconjunction with the city or municipality garbage collection anddisposal services_ lt shall conform to the provisions of the SanitationCode of the Philippines and its lmplementing Rules andRegulations/pertinent referral codes.

Floor Area Requirements

a. Single-Occupancy Unit

Singfe occupancy units shall have a minimum floor area of 1g squaremeters, however, a net floor area of 12 square meters may be allowedprovided that:

a.1 These are intended for students/employees/workers anofurther that the condominium project to which these will beis within highly urbanized areas.

providedintegrated

1"t"I

'x4 ,28

u.

H.

B. At least 2 copies of vicinity map indicating the adjoining land uses, access, aswell as existing facilities and utilities at least within 500 meters from the propertyboundaries of the project, drawn to scale and duly signed and sealed by alicensed geodetic engineer.

C. Building specifications and estimated cost.

D. Zoning Certificate from HLURB Regional Office

E. Certified true copy of DAR conversion order.

F. Certified true copy of Envrronmental Clearance Certificate (ECC) or Certificate ofNon-coverage (CNC) duly rssued by the DENR, whichever is applicable.

Certifled true copy of title(s) and cunent tax receipt.

Right to use or deed of sale of righfof-way for access road and other utilitieswhen applicable.

l. One (1 ) copy of project study to include the following:

1. Project profile indicating among others, the development cost, total projectcost, amortization schedules, sources of financing, marketability, cash flow.architectural building plans and work program/project time table;

2. Audited financial statement for the last 3 preceding years;

3. Income tax return for the last 3 preceding years,

4. Certificate of registration from Securities and Exchange Commission (SEC);

5. Adicles of incorporation or partnership;

6. Corporation by-laws and all implementing amendments, and

7. For new corporations (3 years and below) statement of capitalization andsources of income and cash flow to suppoft work program.

Permit to drill from NWRB or certificate of coverage from concerned localfranchise holder.

List of names of duly licensed professionals who signed the plans and othersimilar documents in connection with application filed indicating the followinginformation:

1 . Surname

2. First name

3. Middle name

^4'^r.

K.

Maiden name, in case of married women professional;

Professional license number, date of issue and expiration of ib validity; and

Professional tax receipt and date of issue

Taxpayer's ldentifi cation Number (TlN)

lf the establishment of the condominium project is physically feasible and does notrun counter to the approved zoning and land use plan of the city or municipality andthe plan complies with these Rules, the condominium plan shall be approved and adevelopment permit shall be issued upon payment of the prescribed processing fee.

A development permit shall only be valid for a period of 3 years from date ofissuance if no physical development is introduced.

lf project has been issued a development permit, a locational clearance is deemedincoroorated therein.

The owner or developer shall submit the condominium plan in accordance with therequirements of the National Building code to the building official of the city ormunicipality where the property lies and the same shall be acted upon subject to theconditions and in accordance with the procedure prescribed in section 4 of theCondominium Act (R.A. No.4726\.

RULE IVREGISTRATION AND LICENSING OF SUBDIVISTON

AND CONDOMINIUM PROJECTS

Section 7. Application for Registration

A. Common Requirements

The owner or the real estate dealer interested in the sale of lots or units in asubdivision project or condominium project, respectively, shall register the projectwith the Board by filing the following:

1. Swom Registration Statement usirrg either:

HLURB Form 001 for Corporation; orHLURB Form 003 for Single Proprietorship

4.

5.

D.

7.

d .

b.

Af

Certified True Copy of Transfer Certificate of Title (TCT) or Original CertificateOf Title (OCT) duly stamped with originat marking "CERTIFIED TRUECOPY" by the proper Register of Deeds and bearing its seal or securitymarker.

36

2

a. \y'Uhen a projed covers more than 20 individual titles without the requiredmarks described above, the ficllorving shall be required:

a.1 Photocopy of TCTsa.2 Certification fom the register of deeds concemed with its seal or

security mark giving the following information:

a.2.1 TCT or OCT numbers;a.2.2 Name of all registered owner(s) and their sharing, if any;a.2.3 Area covered by each title,a.2.4 Number of OCT or TCT from which the title is derived;a.2.5 Statement of all uncancelled liens and encumbrances, if any;a.2.6 Lot and block numbers as well as PSD/PSU/PCS number,

etc.

b. When certified copy of the TCT was issued more than one month prior tothe application for Certificate of Registration (CR), affidavit of the ownerthat t# property is free from liens and encumbrances When the applicantis not the owner, deed from the registered owner showing clearly the-authority of the applicant to the property' e g , its development. and sale ofindividual lots or units; to sign and receive documents; and, other relevant

authority. In case the subdivision/condominium prqecl o1 portion thereofis mortgaged, affidavit of under{aking to submit tit|e; certification fom the

mortgale6 regarding outstanding balance of loan and amortizationscniut-e; mortgage of contract; and, affidavit of undertaking of mortgagor'

Duly audited balance sheet (certified copY 9f the original) issued and signed

by ihe authorized official of ttre applicant and under the lattecs authonty.

a. When individual persons are involved and no balance sheet can be

submitted, income tax returns for the preceding year duly received by BIR

office and tax receipts evidencing payment'

b. Wtren applicant is a new corporation, partnership, association or singleproprietorsnip, i.e., no financial statement or income tax retum has been

prepared yet, sworn statement declaring:

b.1 Other assets or sources of funds and other resources;

b.2 The nature of control or ownership over such assets' funds or

resources;

b.3Commitment to theef fect that , i fnecessary, thesameshal lbeuseclto complete the Project.

Ar t ic lesof lncorporat ion(orofPar tnersh iporAssociat ion) ,amendmentsthereof and existing byJaws (or its equivalent) clearly indicating the authorrty

oftheapplicanttoengageinrea|estatetradeparticu|ar|yinthedeve|opment

"nO r"f firig of lots or u-niii. Wt1en an applicant deviates from the intended line

4.

+.)'l

6.

of business stipulated in its articles of incorporation (or partnership orassociation), authorization from the Securities and Exchange Commission(SEC) and/or the appropriate govemment agency to engage in thedevelopment and selling of the subject prqecl.

A copy of any circular, prospec{us, brochure, advertisement, or@mmunication used/to be used for public ofiering of subjed project and brcirculation upon approval by the Board.

Sample copy of Contract to Sell to be used in the public offering of lots, unitsor lots and units. When amendments shall be affec{ed on the form contnactsubmitted for notification/approval by HLURB, pro-forma atfrdavit signifyingwillingness to ctrange projec{ name.

Certified true copy of Environmental Compliance Certificate (ECC)/Certificateof Non-coverage (CNC), whlchevel is'applicable, duly issued by theDepartment of Environmental and Natural Resouroes (DENR)

Zoning Certificate tom HLURB Regional Office

Certified true copy of DAR conversion order.

Electrical plan and specifications duly signed and seared by a ricensedprofessional electrical engineer and duly approved by the local franchiseholder.

8.

10 .

11. Permit to operate a deepwell and subsequent submission of confirmedwater resistivity test from the Nationar water Resources Board (NWRB).Water potability test results from concerneo governmentagencieVMaynilad.

B. Additional Requirements

1 . For Condominium projects

a. Master Deeds with Decraration of Registration and Decraration ofRestrictions evidenoed by the proper ann6tation thereof in ttre tit[isl orthe property and the certified true copy of such tiile(s) from the Reg;i-er ;Deeds,

b. Building Permit

2. For Subdivision projects:

a. 2 copies of verified survey returns with raber for alr non-sareabre areasincluding but not rimited to parks and praygrounds, community faciritiesand roads and easements

^,1 ,"40-

38

b. Copy of the following documents in case the development permit wasissued by the Local Govemment Unit (LGU) pursuant to the 1991 LocalGovernment Code and related issuances:

b.1 Sangguniang ResolutiorVOrdinance granting of developmentpermit/subdivision development plan containing the followinginformation:

b.1 . 1 full name of the grantee or permittee and his address;b.1.2 complete proJect name and its location;b.1 .3 date of the resolution or ordinance;b.1.4 pro1ect area:b.1.5 full listing of title(s) covering the project;b.1 .6 legal basis of the approval (PD 957, EO 648 and other related

laws);

b.2 Certified true copy ol resolution conferring authority to the mayor orother local govemment official to issue development permit incases where the same was not granted by the SangguniangPangbayan/Panlungsod.

Evidence of approval of the subdivision scheme by the localgovernment official must be any original copy or one certified as true6py thereof by the authorized local government official' indicatingOeiny nis full name and position and the date of approval lt mysj

contaanthesamedataasdescr ibedabove 'Most impor tantofa l l ' i tmust bear an indication of Sanggunian approval such as but not

IiMitEd TO WOTdS IiKE "APPROVED BY AUTHORITY OF THE

SANGGUN|AN' 'orothersofs imi |ar impor t , i tbe ingunderstoodthatthe Sanggunian has properly issued such authority

b .3Proofo fcomp| iancetoSec. lSotRAT2Tginanyof thefo | |owingmanner:

b.3.1 Development permit of socialized housing projects within

the main subdivision.

b.3.2 License to sell of socialized housing project offered as

compliance if tocation of compliance is not within the main

subdivision Project.

b.3.3 Joint venture agreement with LGU or other housingagencies.

b.3.4 Certified true copy of bond issued by the LGU where the mainproject is located or by any of the housing agencles'

b.4 one (1) set of subdivision development plan.

d"..39

c. Project study

d. Copy of brochures and other fonns of advertisements.

Section 8. Application for License to Sell

The owner or the real estate dealer interested in the sale of lots or units in asubdivision or condominium project shall apply with the Board for a License to sellby submitting the following:

A. Program of development (bar chart wirh s-curve, Gantt charupERT-cpM, etc.)signed and sealed by ricensed engineer or architect indicating work activities,duration and costing

B. Affidavit of undertaking to perform the following:

1 . Segregation of the individuar tiiles for aI rots or units within the project;

2. submission of proof that tifles to the sareabre rots or units have been issued,which .proof may incrude a certification from concerned register of deedsindicating the tots/brocks or units or datra simirar to those ,.eq*uired under tnerequirement for certificate of Registration onry when required by th" B";;;

3. Submission of a certified rrue copy of tifle of the common areas/openspace' which tifle shail expressry indicate the kind of common-tseapproved therefor, on or before a clefinite date (to u" rp."in"J uv "00r,."",subject to approval by the Board).

C. Duly accomplished and notarized fact sheet

Section 9. Notice of publication

Lpers, as well as, the documents attachedrsiness hours by interested parties. In:ct shall be posted on the project site until

Y.?^ol:gro'"oon of.the pubrication, the proponent shar submit proof of pubricationexecuted by the pubrisher and an affidavit ittestinj io the posting of the biilboardnotice on the site.

44'&'

40

Section 10. Certificate of Registration

Upon finding that the project may be registered ln acrordance with the provisions ofthe decree and these rules, the Board shall cause the publication at the expense ofthe applicant a notice of the filing of the registration statement in 2 newspapers ofgeneral circulations, one published in English and another in Pilipino, once a weekfor 2 consecutive weeks, reciting that a registra'tion statement for the sale ofsubdivision lots or condominium units has been filed with the Board and that theaforesaid registration siatement as well as the papers attached thereto, are open toinspection during business hours by interested parties.

After 2 weeks from the completion of the publication and upon submission of theaffidavit of publications. the Boa:-cj shall in the absence of any impediment' issue aCertificate of Registration upon payment of the prescribed fees.

Section 11. License to Sell

No owner or dealer shall sell any subdivision lot or condominium unit in theregistered project without a license to sell issued by the Board.

Upon proper application therefor. submission of the required work program.performance bond and payment cf the prescribed license fee by the owner or dealer,the Board shall issue a license to sell the lot or unit in the project or portion thereofcovered by the performance bond. provided that. the submitted registratlonstatement and other pertinent documentary reguirements Gan establish that theproposed sale of the subdivision lot or condominium unit to the public is nolfraudulent.

Section 12. Pertormance Bond

The performance bond required under sec. 6 of the Decree may be in any of thefollowing forms:

A. A surety bond amounting to 2oo/o of the development cost of the unfinishedportion of the approved plan issued by a duly accredited bonding company

iwhether private or government) and acceptable to the Board; or,

B. Real estate mortgage to be executed by the applicant as mortgagor in favor of

the Repub|ic of the Phi|ippines as mortgages, the |atter as represented by andact ingthroughtheHLURB,overaproper tyother thanthatsub jec to f theapptication, fiee from any liens and encumbrance and provided, that the value.ofthe property, computed on the basis of the zonal valuation schedule of thebureau of internal revenue, shall be at least 2Oo/o ol the total development CoSt;or,

c. cash bond equivalent to 10% of the development cost of the unfinished portionof the approved plan which may be in the form of the following'

1 , Fiduciary depositBoard;

made with the cashier and/or disbursing officer of the

*l41

2. A certificate of guaranty deposit issued by any bank or financing institution ofgood standing in favor of the boar.d for the total development cost;

3. A letter from any bank of recognized standing certifying that so much hasbeen set aside from the bank account of the applicant in favor of the boardwhich amount may be withdrawn by the chief executive officer of the board orby his duly authorized representative, at any time the principal fails or refusesto comply with his duties and obligations under the bond contract;

4. Any irrevocable credit line to be utiiized in the development of the project fromany bank of recognized standing and a refinancing re-structuring programindicating sources of funding from duly accredited funding institutions.

For pre-existing projects any of the forms of performance bond enumeratedabove may be availed of.

RULE VREGISTRATION OF REAL ESTATE DEALERS, BROKERS AND

SALESMEN

Section 13' Apprication for Registration of Brokers and saresmenNo broker or saresman shail engage in the business of seiling subdivision rots orcondominium units without securing a certificate of registratidn by firing with tneBoard a registration statement in quadrupricate containing the foilowing inrJrmairon:

a. Name, age and address

b' lf a corporation' partnership, or association, its office address and branch officesand the names and addresses of its executive officers and directors.

c' statement that appricant is quarified to act as rear estate broker dr saresmanpursuant lo law.

d lf app|cant is a salesman, the name and address of the dearer or broker whoemptoys him, attaching a copy of appointment.

" [,fl" applicant is a broker, the names and addresses of salesmen employed by

Section 14. Certificate of Registration

nents or information, unless specified bysaid period shall be treated as original

. l^+42

Section 15. Bonds

The Bond required under section 6 of the Decree may be either a cash or a suretybond issued by a duly accredited bonding company whether pfivate or govemment

agency. The bond shall contain a clause stating among others that it shall remain in

fu'it toice and effect unless it is ordered, cancelled or released by the Board. The

bond shall be executed in favor of the Hconditioned upon the faithful and honest dsalesman working under a broker or dealethat upon failure to discharge those dutiesto any and all persons who may suffer lossthe bond shall be P5,000 for Dealers/Brcbonds shall no longer be required if equivalent bonds or securities have already

been posted by applicants foi the same purpose with other government agencies

DUrSUant to law.

Adea|er,brokerorsa|esmanmayapp|yinwrit ingwiththeBoardforthecance|lationand release of his bond rtaiing thet6i;t

-hit t"asons. In appropFiate cases, the.B.oard

may |.equire the applicant to ciuse the publication of a notice therefor at the latteis

expense In a newspape, of jenerat circulation. stating' among others' the.fact of

suln apptication. The proof 6f publication shall be submitted to the Board. Any

p"ito^, having any claim for money or property against the dealer' broker or

sa |esmaninh is rea|es ta teserv iceorpract ice 'must - f i |eh isc |a imwi th theBoardwithin 15 days from tn" o"iu oi fublication. lf the. reason for the cancellation of the

bondishiscessationfromfurtherengaginginthebusinessofse|| ingsubdivision|otsorcondomin iumuni ts , thedealer 'brokerorsa lesmansha| lsurrenderh iscer t i f icateof registration to the BoarJ anJ hi. n"r" shall be cancelled from the Register of

Dealers, Brokers and Salesmen.

RULE VIMISGELLANEOUS PROVISIONS

Section 16. Definition of Terms

For purposes of these rules, the following words and phrases are defined:

a. Board or HLURB - shall mean the Housing and Land Use Regulatory Board'

b. Block - a parcel of land bounded on the sides by streets or alleys or pathways

or other natural or .an-tuo" features, and occupied by or intended for

buildings.

A| | |andsf ront ingonones ideofas t reetbetweenthenearests t reets 'intersecting, meeting or crossing the aforesaid street'

c. Commercial Condominium - a building, or group of buildings' ysed fo1g[ce'

businesses, professional services and oiher commercial enterprise organized'

owned and maintained as a condominium'

^'{",.

d. Common Areas - means the entire project excepting all units separatelygranted, held or reserved.

I

Community Facilities - facilities or structures intended to serve @mmon needsand for the benefit of the community such as schools, places of worship,hospitals, health centers, barangay centers and other similar facilitiesi/amenitiesper PD 1216.

condorninium - shall mean an interest in real property consisting of a separateinterest in a unit in a residential, industrial or commercial building and anundivided interest in @mmon clirecfly or indirecily, in the land on which it islocated and in other common areas of the building. A condominium may include,in addition, a separate interest in other portions of such real property. Titte to thecommon areas, including the land, or the appurtenant interests in such areas,fqy be held by a corporation specially formed for the purpose in which theholders of separate interests shall automatically be members or shareholders, tothe exclusive of others, in proportion to the appurtenant interest of theirrespec{ive uniK in the common areas.

A building in which each individual unit is held in separate private ownership andall 1loor space, facirities and outdoor areas used in common by ail tenant! areowned, administered and maintained by a corporation created pursuant to theprovisions of the appropriate statute.

An individual dwelling unit under individual ownership in a multiple unitsdevelopment with common elements in which:

a The units comprise not onry the space encrosed by the unit boundaries, butall materiat parts of the land within ihe space;

b. The common erement rneans alr the property within the deveropment exceptthe units;

c The oommon element is owned by alr of the owners as tenants in common.

A building or group of buildings, in which units are owned individually, and thestnrcture, @mmon areas and facilities are o^/ned Oy tne owners on aproportional undivided basis.

Condominium Project - means the entire parcel of rear property divided or to bedivided in condominium, including all struc{ures thereon.

Condominium Unit - means a part of the condominium pojec{ intended br anytype of independent use or orrnership, including one o, more floors (or part orparts of floors) in a building or buildings and such accessones as may beappended thereto.

Dealer - shall mean any person direcfly engaged as principar in the businqss ofbuyrng, selling or exchanging real estate whether on iull time or part_time basis.r\ ourx Duyer sha mean any person who aoquires a lot or a portion of ttre^l:rt'

)

subdivision and who, with or without re-subdividing or introducing housing orother facitities, sells the same, under its previous license to sell or in a newlicense to sell in his name to the public.

Decree - shall mean Presidential Decree No. 957 otheruise known as "TheSubdivision and Condominium Buyer's Protective Decree."

. Dwelling Unit - structure designed or used as residence.

One or more rooms that may be used as a residence, each unit having sleeping,cooking and toilet facilities.

One or more habitable rooms designed or intended for use by'l or moreindividuals as an independent and separate housekeeping establishment inwhich separate kitchen and sanitary facilities are provided for the exclusive useof such individual or individuals, with a private entrance from outside the buildingor fom a common hallway or staiMay inside the building'

Dwelling Types:

1. Single Detached - a dwelling unit completely surrounded by yards'

2.Sing|eAttached-adwe||ingunitwithonesideattachedtoafirewa|| '

3. Duplex - a dwelling unit containing 2 separate living units each of which is

seoarated from another by a firewall and provided wiih Independent access.

4 .Rowhouse-dwe| | ingun i tsconta in ing3ormore| iv ingun i tsdes igned insuchawaythat theyabuteachotherandareseparatdf romeachotherbya firewall each unit provided with independent access

l 'F i rewa| | -anywal lwhichsubdiv idesabui |d ingsoastores is t theSpreadof f i re ,bystartingatthefoundationandextendingcontrnuous|ythrougha||storeysto,ora-Oove the roof. Extension above the roof is 1 millimeter'

m. Frontage - the side of a lot which abuts a street'

n .L iv ingUni t -adwe| l ing,orpor t ionthereof ,prov id ingcomp|eteI iv ingfac i l i t ies forone flmily, including provisions for living, sleeping,. cooking' eating' bathing and

toitet facilities and laundry facilities, the same as a single-family dwelling.

o. Lot - portion of a suMivision orany parcel of land intended as a unit for transfer

or ownership for building development

Types of Lots. - lots shall be defined as follows:

l.corner|ot-a|otsituatedattheintersectionoftwoormorestreets.

2. regular lol - alot lines.

lot fronting on one street and the remaining sides bounded by

^f, 4,s

3. interior lot - a lot located at the inner portion of a block with a minimum ofthree-meter (3-m) wide access which forms part of the lot.

4. through lot - a lot bounded on two opposite sides by roads.

5. irregular lot - any lot which is not rectangle nor square-shaped

p Medium Cost and Open Market - refers to housing projects where prices ofhouse and lot packages are r,viihin the suggested price ranges as determinedthrough HUDcc resolution an<i failing under the standards prescribed in theserures.

q. Open Space - shall refer to an area reserved exclusively for parks,playgrounds, recreational uses, schools, roads, places of worship, hospitals,health centers, barangay centers anci other similar facilities and amenities.

.

r. Project - means the entire parcel of real properry divided or to be divided incondominiums, including all structures thereon.

Section 17. Submission of Semestral Reports on Operations

Every owner or dealer of a registered subdivision or condominium project shallsubmit to the Board semi-annual reports on operations showing the salls statusindicating therein name of buyer. rovbrock no., TCT no.. date of furchase, name ofmortgagee, mode of acquisition, extenudeveropment status, changes in corporateofficers and their addresses within 60 days after the end of each ,Jrn"rter.-iopL,of corporate reports to the securities ind Exchange commission shall also befurnished to the Board.

section 18. Dispray of certificate of Registration and License toSel l

The. certificate of Registration and License to Seil issued by the Board shail bedisplayed in a conspicuous place in tt,e principal office of the -owner,

oearer, oroGror saresman, as the case may be and a xerox copy thereof in aI its branches anooffices-

Section 19.License

Lost or Destroyed Certificate of Registration or

Upon loss or destr'..rction of a. certificaie of Registration or License to Sell a dupricatecopy thereof may be issued by the Board after satisfacto ry proof of such loss ordestruction, and payment of the prescribed fee. The fact [hat rr"n oupri"utu r,a"been issued shall be made of record.

1.

46

Section 20. Advertisement

All advertisements for the sale of subdivision lots and condominium units shall bedeclared and approved by the Board pursuant to Section 19 ofthe Decree.

Section 21. Time for Completion

Every owner of developer shall construct and provide the facilities, infrastructures,other forms of development, including water supply and lighting facilities and as faras practicable improvements, which are offered and indicated in the approvedsubdivision or condominium plans, brochures, prospectus, printed matters, letters orin any form of advertisement, within one (1) year or within such other period of timeas miy be fixed by the Board from the date of the issuance of license to sell for thesubdivision or condominium project.

Reouest for extension of time to complete development of a subdivision orcondominium project may be granted only in cases where non-completion of project

is caused by fortuitous events, legal orders or such other reasons that the boardmay deem f'vprop"r with the written notice to lot or unit buyers without preiudice to

the exercise of their rights pursuant to Section 23 of the Decree'

The request for extension of time for completion shall be accompanied by a revised

work program duly signed and sealed by a licensed engineer or architect with project

costing and finanCing scheme therefor. In appropriate cases, the Board may require

the polting of additional performance bond amounting to 20% of development cost

of the unfinished portion of the approved development plan, or issue such orders it

may oeem proper.

Section 22. Transler of Ownership or Change of Name

Request for transfer of ownership and/or change. of name may be granted only if

there is a deed of absolute sale over the subdivision and condominium prolect

iought to be transferred and/or the name thereof changed with an undertaking on

if* b"rt of the transferee to assume full responsibility for the. completion. of. the

J"uiopm"nt thereof. The requirements in Sections 7 and 13 hereof shall be

observed whenever aPPlicable.

such request for transfer of ownership or change of name shall be published at

applicant;s expense in a newspaper of general circulation within the city or

municipality where the project is located at least once a week for two (2) consecutiveweeKs.

Section 23. Alteration of Plans

Request for alteration of subdivision plans may be granled if .the. requirements t ti

Seition 22 of the Decree are complied with. Alteration of condominium plans shilrl

be in accordance with Section 4 of the Condominium Act as amended by Sections 1

and 2 of RA 7899. T"r.,,

xJ 4'7 |

Section 24. Non-forfeiture of Paynrents

No installment payment made by a buyer in a new or existing subdivision orcondominium project for the lot or unit he contracted to buy shall be forfeited in favorof the owner or developer when the buyer, afier due notice to the owner ordeveloper and clearance from the Board desists from further payment due to thefailure of the owner or developer to develop the project according to the approvedplans and within the time limit for complying with the same. suchbuyer may at hisoption be reimbursed the total amount paid including amortization interests butexcluding delinquency interests, with interest thereon at ihe legal rate.

Section 25. Registration of Gonveyances

sales or conveyances of the subdivision lots and condominium units shall bepsistered within t80 days from execution thereof by the seller with the Register ofDeeds of the province or city where the property is situated pursuant to secti5n t 7 ofthe Decree. Except as may othe*ise be provided for by raw, the Board may rnappropnate cases cause the Register of Deeds to cancel registration, entries orannotations on titles made on this regard.

Section 26. Mortgages

Mortgage of any unit or lot by the owner or developer shall be cleared with the Boardpursuant to Section 1 I of the Decree.

Section 27. Realty Tax and OtherCharges

No realty tax assessment or other charges shail be imposed on a rot or unit buyerexcept as provided for in Section 26 and 2T of the Decree.

Section 28.- _ Complaints Against Owners, Developerc, Dealers,Brokers and Salesmen

complaints or proceedings against owners, deveropers, dearers, brokers andsaresmen sha be resorved in accordance with the Rures of procedure to oouem'tneConduct of Heanngs before the Board.

Section 29. Administrative Fines

Any owner or dearer who. fairs to register an existing subdivision project orcondominium project within the period prescribed unoer tr6se rub.;il ,.AGa..shall be penarrzed in accordance with the approved schedure of fines. Theimpfementation and payment of these administrative fines shal not precrude criminatprosecution of the offender under Sec{ion 39 of the Decree.

Section 30. Criminal penalties

Any person violating any provisions of theshall suffer the penalties provided for undelI

*L 4t"Ji.

Section 31. ldentification of Lot Subject of Sale

The owner or dealer of a subdivision project shall attach to and shall form part of thesales document of any lot, a sketch plan clearly showing the area, boundaries anddimensions of the lot in relation with the block and the whole proiect, as well as theIocation of the prolect tn relation with public roads and other land marks, to becertified by a licensed geodetic engineer and signed by the seller and buyer'

Section 32. Broker/Salesman as Witness to Sales

The broker or salesman who negotiated the sale of a subdivision lot or condominiumunit shall act as one of the witnesses to the sales document with an indication of hiscertificate of Registration number and renewal date. lf the sale was directly madeby the owner or dealer, that fact must be so stated in the sales document'

Section 33. Fees

The Board or the local government unit concerned Shall collect fees in accordancewith the schedule of fees approved by the Board or the local government concerned

Section 34. APPlicabilitY

TheSe RUIeS shall apply only to residential subdivision and condominium projects

as defined by the Decree and related laws

Section 35. Transitory Provisions

Theprov is ionsofRu|e | | .Sec t ion(5)Subsec t ion(A) (1)andSubsect ion(B) (2)o fthese Ru|es to the conirary notwithstanding, and subject to further review thereof,

licensed architects who are not licensed environmental planners may in the

meantime still contrnue to $ign site development plans/subdivision development

pians of subdivision prolects, -ror

a penod ot 2 years from the date of effectivity of

these Rules

Section 36. SeParabilitY Clause

The provisions of these Ru|es are hereby dec|ared separab|e, and in the event any

of such provisions are declared null and void, the validity of all other provisions shall

not be affected therebY.

Section 37. EffectivitY

These Rules shall take effect immediately after its publication once In

newspaper of general circulation

any

P4,49

ANNEX A

MALACAfrANGManila

PRESIDENTIAL DECREE NO, 957

REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS,PROVIDING PENALTIES FOR VIOLATIONS THEREOF

WHEREAS, it is the policy of the State to afford its inhabitants the requirementsof decent human seftlement and to provide them with ample opportunities for improvif€their quality of life;

WHEREAS, numerous reports reveal that many real estate subdivision owners,developers, operators, and/or sellers have reneged on their representations andobligations to provide and maintain properly subdivision roads, drainage, sewerage,water systems, lighting systems, and other similar basic requirements, thus endangeringthe health and safety of home and lot buyers;

WHEREAS, reports of alarming magnitude also show cases of swindling andfraudulent manipulations perpetrated by unscrupulous subdivision and condominiumsellers and operators, such as failure to deliver titles to the buyers or titles free fromliens and encumbrances, and to pay real estate taxes, and fraudulent sales of the samesubdivision lots to different innocent purchasers for value;

WHEREAS, these acts not only undermine the land and housing program of thegovernment but also defeat the objectives of the New Society, particularly the promotionof peace and order and the enhancement of the economic, social and moral condition ofthe Filipino people;

WHEREAS, this state of affairs has rendered it imperative that the real estalesubdivision and condominium businesses be closely supervised and regulated and thatpenalties be imposed on fraudulent practices and manipulations commifted inconnection therewith.

NOW, THEREFORE, l, FERDINAND E. MARCOS, president of the phitippines,by virtue of the powers vested in me by the constitution, do hereby decree and order:

Title ITITLE AND DEFINITIONS

SEC. 1. Tltle. - This decree shail be known as THE SUBDMSION ANDCONDOMINITJM BUYER'S PROTECTIVE DECREE.

sEc. 2. Definition of rerms. - when used in this decree, the following termsshall un{ess the context othenarise indicates, have the following respective meanings:

a) Person. - "Person" shalr mean a naturar or a juridical person. A juridicalperson refers to a business firm whether a corporation, partnership, cooperative orassociation or a single proprietorship.

b) Sale or Sell. - "Sale" or "Sell" shall include every disposition, or attempt todispose, for a valuable consideration, of a subdivision lot, including the building andother improvements thereof, if any, in a subdivision project or condominium unit in acondominium project. "Sale" and "Sell" shall also include a contract to sell, a contract ofpurchase and sale, an exchange, an attempt to sell, an option of sale or purchase, asolicitation of a sale, or any offer to sell, directly or by an agent, or by a circular, letter'advertisement or otherwise.

A privilege given to a member of a cooperative, corporation, partnership, or anyassociation and/or the issuance of a certificate of receipt evidencing or giving the right ofparticipation in, or right, any land in consideration of payment of the membership fee ordues, shall be deemed a sale within the meaning of this definition.

c) Buy and Purchase. - The term "Buy" and "Purchase" shall include anycontract to buy, purchase, or othenruise acquire for a valuable consideration asubdivision lot, including the building and other improvements, if any, in a subdivisionproject or a condominium unit in a condominium project.

d) subdivision Project. - "subdivision Project" shall mean a tract or a parcel

of land registered under Ait No. 496 which is partitioned primarily for- residentialpurposes iito individual lots with or without improvements thereon, and offered to thepublic for sale, in cash or in installment terms. lt shall include all residential,commercial, industrial and recreational areas, as well as open spaces and other

community and public areas in the project'

e) subdivision Lot. - "subdivision Lot" shall mean any of the lots, whether

residential, commercial, industrial, or recreational, in a subdivision pqect'

f) complex subdivision Plan. - "complex subdivision Plan" shall mean a

subdivision plan of a registered land wherein a street, passageway or open space ls

delineated on the Plan.

s) condominium Project. - "condominium Project" shall mean the entire

parcel "of real property divided or to be divided primarily for residential purposes into

condominium units, including all structures thereon'

h)Condomin iumUni t . - .Condomin iumUni t 'sha l |meanapar to f thecondominium project intended for any type of independent use or ownership, including

one or more rooms or spaces located in one or more floors (or part of parts of floors) in

abui |d ingorbui |d ingsandsuchaccessor iesasmaybeappendedthereto.

i) owner. - ,.owner'. sha|| refer to the registered owner of the |and subject of

a subdivision or a condominium project.

j )Deve|oper ' - ' 'Deve loper ' ' sha| |meanthepersonwhod.eve|opsorimproves the subdivision project or condominium project for and in behalf of the owner

thereof.

k) Dealer. - "Dealer" shall mean any person directly engaged as principal in

the business of buying, selling or exchanging real estate whether on a full-time or part-

time basis.

51

l) Broker. - "Broker" shall mean any person who, for commission or othercompensation, undertakes to sell or negotiate the sale of a real estate belonging toanother.

m) Salesman. - "Salesman" shall refer to the person regularly employed by abroker to perform, for and in his behalf, any or all the functions of a real estate broker.

n) Authority. - 'Authority" shall mean the National Housing Authority.

d) The general character of thetransacted by the owner;

Title llREGISTRATION AND LICENSE TO SELL

sEc. 3. National Housing Authority. - The National Housing Authority shallhave exclusive jurisdiction to regulate the real trade and business in accordance withthe provisions of this Decree.

sEc. 4. Registration of Project. - The registered owner of a parcel of land whowishes to convert the same into a subdivision project shall submit his subdivision ptan tothe Authority which shall act upon and approve the same, upon a findings that the plancomplies with the Subdivision Standards and Regulations enforceable lt the time theplan is submifted. The same procedure shall be followed in the case of a plan for acondominium project except that, in addition, said Authority shall act upon and approvethe plan with respect to the building or buildings included in the condominium project inaccordance with the National Building Code (R.A. No. 6541).

. Th" subdivision plan, as so approved, shall then be submitted to the Director ofLands for approval in accordance with the procedure prescribed in seition 44 of theLand Registration Act (Act No. 496 as amended by R.A. No. 440): provided. that in

of the Condominium Act (R.A. No. 4726).

The owner or the rear estate dearer interested in the sare of rots or units,respectively, in such subdivision project or condominium project shall register the projectl/i1h the Authority by firing therewith a sworn registration statemeni containing thefollowing information;

a) Name of the owner;

b) The location of.the owner's principar business office, and if the owner rs anon-resident Firipino, the name and address of his agent or representativein the philippines authorized to receive notice;

c) The names and addresses of ail the directors and officers of the businessfirm, if the owner:

52

business actually transacted or to be

e) A statement of the capitalization of the owner, including the authorized andoutstanding amounts of its capital stock and the proportion thereof which isparo-up.

The following documents shatl be attached to the registration statement:

a. A copy of the subdivision plan or condominium plan as approved inaccordance with the first and second paragraphs of this section;

b. A copy of any circular, prospectus, brochure, advertisement, letter, orcommunication to be used for the public offering of the subdivision lots orcondominium units;

c. In case of a business firm, a balance sheet showing the amount andgeneral character of its assets and liabilities and a copy of its articles ofincorporatton or articles of partnership or association, as the case may be'with all the amendments thereof and existing by-laws or instrumentscorreponding thereto;

d. A title to the property which is free from all liens and encumbrances:Provided, however, that in case any subdivision lot or condominium unit ismor tgaged, i t i ssuf f ic ient i f the ins t rumentofmor tgageconta lnsastipulation that the mortgagee shall release the mortgage on anysubdivision lot or condominium unit as soon as the full purchase price forthe same is Paid bY the buYer.

The person filing the registration statement shall pay the registration feesprescribed therefore by the Authority.

Thereupon, the Authority shall immediately cause to be published a notice of the

filing of the registration statem-ent at the expense of the applicant - owner or dealer, in

two'newspapeis of general circulation, one published in English and another in.Pil ipino,

once a week for two consecutive weeks, reciting that a registration statement for the

sale of subdivision lots or condominium units his been filed in the National Housing

nutnoritv; that the aforesaid registration statement, as well as the papers attached

thereto, are open to inspection during business hours by interested parties, -under such

i"grl"irn. "J

the Authority may impbse; and that copies thereof shall be furnished to

any party upon payment of the proper fees.

The subdivision project or the condominium project shall be deemed registered

upon completion of the above publication requirement. The fact of such registration

sirall be evidenced by a registration certificate to be issued to the applicant'owner or

dealer.

SEC. 5. License to Sell - Such owner or dealer to whom has been issued a

registration certificate shall not, however, be authorized to sell any subdivision lot or

condominium unit in the registered project unless he shatl have first obtained a license

to sell the project within two weeks from the registration of such project'

The Authority, upon proper application therefore, shall issue to such owner or

dealer of a registered project a'license to sell the project if, after an examination of theregistration .stitement filed by said owner or dealer and all the pertinent documents

CJ

. attached thereto, he is convinced that the owner or dealer is of good repute, that hisbusiness is financially stable, and that the proposed sale of the subdivision lots orcondominium units to the public would not be fraudulerit.

SEC, 6. Performance Bond. - No license to sell subdivision lots orcondominium units shall be issued by the Authority under section 5 of this Decreeunless the owner or dealer shall have filed an adequate performance bond approved bysaid Authority to guarantee the construction and maintenance of the roads, gutters,drainage, sewerage, water system, lighting systems, and full development of thesubdivision project or the condominium project and the compliance by the owner ordealer with the applicable laws and rules and regulations.

The performance bond shall be executed in favor of the Republic of thePhilippines and shall authorize the Authority to use the proceeds th'ereof for thepurposes of its undertaking in case of forfeiture as provided in this Decree.

sEc' 7. . Exempt Transactions. - A ricense to seil and perfo'nance bond shallnot be required in any of the following transactions:

sale'of a subdivision rot resurting from the partition of rand among co-owners and co-heirs.

Sale or transfer of a subdivision fot by the originar purchaser thereof andany subsequent sale of the same lot.

sale of a subdivision fot or a condominium unit by or for the account of am:rtSaqeg in the ordinary course of business when necessary to liquidatea bona fide debt.

sEc' 8. suspension of License to sert. - Upon verified compraint fited by abuyer of a subdivision lot or a condominium unit or any interested p",tv, in" irft,oritvmay, in its discretion, immediatery suspend the owner,s or deare/s 'ticense

to sertpending investigation and hearing oi the case as provided ,n section rs heieor.

The suspension order may be rifted if, after notice and hearing, the Authority isconvinced that the registration statement is accurate or that any aericlency ttreiein hasbeen conected or supplemented or that the iaie io tne public of the subdivision orcondominium project wiil neither be fraudurent nor resurt in fraud. rt shail arso be riftedupon dismissal of the complaint for lack of tegat basis

pensions, the suspension of the right to sellrsons notified thereof, shall be deemedrder of suspension has in the meantime be

a)

b)

c)

54

SEC. 9. Revocation of Registration Certificate and License to Sell. - TheAuthority may, moto propio or upon verified complaint filed by a buyer of a subdivisionlot or condominium unit, revoke the registration of any subdivision project and thelicense to sell any subdivision lot or condominium unit in said project by issuing an orderto this effect, with his findings in respect thereto, if upon examination into the affairs ofthe owner or dealer during a hearing as provided for in Section 14 hereof, it shall appearthere is satisfactory evidence that the said owner or dealer:

a) ls insolvent; or

b) Has violated any of the provisions of this Decree or any applicable rule orregulation of the Authority, or any undertaking of his/its performance bond;or

c) Has been or is engaged or is about to engage in fraudulent transactions;or

d) Has made any misrepresentation in any prospectus, brochure, circular orother literature about the subdivision project or condominium project thathas been distributed to prospective buyer; or

e) ls of bad business repute; or

fl Does not conduct his business in accordance with law or sound business

PrinciPles.

Where the owner or dealer is a partnership or corporation or an unincorporatedassociation, it shall be sufficient cause for cancellation of its registration certificate and

its license to sell, if any member of such partnership or any officer or director of such

corporation or association has been guilty of any act or omission which would be cause

for 'refusing

or revoking the registration of an individual dealer, broker or salesman as

provided in Section 11 hereof.

SEC. 10. Registers of Subdivision Lots and Condominium Units. - A record

of subdivision lots and condominium units shall be kept in the Authority wherein shall be

entered all orders of the Authority affecting the condition or status thereof The registers

of subdivision lots and condominium units shall be open to public inspection subject to

such reasonable rules as the Authority may prescribe

Title lllDEALERS. BROKERS AND SALESMEN

sEc. 11. Registration of Dealers, Brokers and salesmen. - No real estate

dealer, broker or sa|ert"n shall engage in the business of selling subdivision lots or

condominium units unless he has registered himself with the Authority in accorclancewith the provisions of this section'

lf the Authority shall find that the applicant is of good repute and ha.s compliedwith the applicable ruleg of the Authority, including the payment of the prescribed fee, he

shall register such applicant as a dealer, broker, or salesman upon his filing a bond' orother sjcurity in lieu thereof, in such sum as may be fixed by the Authority conditioned

upon his faithful compliance with the provisions of this Decree: Provided, that theregistration of a salesman shall cease upon the termination of his employment with adealer or broker.

Every registration under this section shall expire on the thirty-first day ofDecember of each year. Renewal of registration for the succeeding year shall begranted upon written application therefore made not less than thirty nor more than sixtydays before the first day of the issuing year and upon payment of the prescribed fee,without the necessity of filing further statements or information, unless specificallyrequired by the Authority. All applications filed beyond said period shall be treated asoriginal applications.

The names and addresses of all persons registered as dealers, brorers orsalesman shall be recorded in a Register of Brokers, Dealers and salesman kept in theAuthority which shall be open to public inspection.

SEC. 12. Revocation of Registration as Dealers, Brokers, Salesmen.Registration under the preceding section may be refused or any registration grantedthereunder, revoked by the Authority if, after reasonable notice- and- hearing, it shalldetermine that such applicant or registrant:

Has violated any provision of this Decree or any rule or regulation madehereunder: or

Has made a material false statement in his application for registration; or

Has . been guilty of a fraudulent act in connection with any sale of asubdivision lot or condominium unit; or

Has demonstrated his unworthiness, to transact the business of dearer,broker, or salesman, as the case mav be.

1)

4)

2)

3)

ln case of charges against a saresman, notice thereof sha arso be given thebroker or dealer employing such salesman.

Pending hearing of the.case, the Authority shail have the power to order thesuspension of dearer's, broker's or saresman's registration; provided, that iucn oroershall state the cause for the suspension.

.. The suspension or revocation of the registration of a dearer shafl carry with it arlthe suspension or revocation of the registration-s of all his salesman.

56

Title lVPROCEDURE FOR REVOCATION OF

REGISTRATION CERTIFICATE

SEC. 13. Hearing. - In the hearing for determining the existence of any groundor grounds for the suspension and/or revocation of registration certificate and license tosell as provided in Sections I and t hereof, the following shall be complied with:

a) Notice - No such hearing shall proceed unless the respondent isfurnished with a copy of the complaint against him or is notified in writingof the purpose of such hearing.

b) Venue - The hearing may be held before the officer or officers designatedby the Authority on the date and place specified in the notice.

c) Nature of Proceedings - The proceedings shall be non-litigious andsummary in nature without regard to legal technicalities obtaining in courtsof law. The Rules of Court shall not apply in said hearing except byanalogy or in a suppletory character and whenever practicable andconvenient.

d) Power Incidental to the Hearing - For the purpose of the hearing.of otherproceeding under this Decree, the officer or officers designated to hear thecomplaint shall have the power to administer oaths, subpoena witnesses,conduct ocular inspections; take dispositions, and require the production ofanybook,paper ,correspondence 'memorandum,orotherrecordwhichare deemed relevant or material to the inquiry.

SEC. 14. ContemPt. -

a) Direct contempt. - The officer or officers designated by the Authority tohearthecomp|aintmaysummarilyadjudgeindirectcontemptanypersonguilty of misbehavior in the presence of near the said hearing officials soas to obstruct or interrupt the proceedings before the same or of _refusal tobeswornor toanswerasawi tnessor tosubscr ibeanaf f idav i tordeposition when lawfully required to do so. The person found guilty of

d i rec tcontemptunder th issect ionsha| |bepunishedbyaf inenotexceedingf i f ty (P50.oo)pesosor impr isonmentnotexceedingf ive(5)daYs, or both

b) Indirect contempt. - The otficer or officers designated to hear thecomp|a in tmaya|soadjudgeanypersonin ind i rectcontemptongroundsandinthemannerprescr ibedinRuleT ' lo f theRevisedRulesofCour t '

sEc. 15. Decision. - The case shall be decided within thirty (30) days from the

time the same is submitted for decision. The decision may order the revocation of theregistration of the subdivision or condominium proiect, the suspension, cancellation, orreiocation of the license to sell and/or the forfeiture, in whole or in part, of theoerformance bond mentioned in Section 6 hereof. In case forfeiture of the bond isordered, the Decision may direct the provincial or city engineer to undertake or causethe construction of roads ind of other requirements for the subdivision or condominiumas stipulated in the bond, chargeable to the amount forfeited. Such decision shall be

immediately executory and shall become final after the lapse of 15 days from the date ofreceipt of the Decision.

SEC. 16. Cease and Desist Order. - Whenever it shall appearto the Authoritythat any person is engaged or about to engage in any act or practice which constitutesor will constitute a violation of the provisions of this Decree, or of any rule or regulationthereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issuea cease and desist order to enjoin such act or practices.

SEC. 17. Registration.- All contracts to sell, deeds of sale and other similarinstruments relative to the sale or conveyance of the subdivision lots and condominiumunits, whether or not the purchase price is paid in full, shall be registered by the seller inthe Office of the Register of Deeds of the province or city where the property is situated.

Whenever a subdivision plan duly approved in accordance with Section 4 hereof,together with the corresponding owner's duplicate certificate of title, is presented to theRegister of Deeds for registration, the Register of Deeds shall register the same inaccordance with the provisions of the Land Registration Act, as amended: provided,however, that if there is a street, passageway or required open space delineateo on acomplex subdivision plan hereafter approved and as defined in this Decree, the Registerof Deeds shall annotate on the new certificate of ti e covering the street, passageway oropen space, a memorandum to the effect that except by way of donation in favor of acity or municipality, no portion of any street, passageway, or open space delineated onthe plan shall be closed or otherwise disposed of by the registered owner without therequisite approval as provided under Section 22 of this Decree.

SEC. 18. Mortgages. - No mortgage on any unit or lot shall be made by theowner or developer without prior written approval of the Authority. Such approval shallnot be granted unless it is shown that the proceeds of the mortgage loan shall be usedfor the development of the condominium or subdivision prolect lnd effective measureshave been provided to ensure such utilization. The loan value of each lot or unitcovgred by the mortgage shall be determined and the buyer thereof, if any, shall benotified before the release of the loan. The buyer may, at his option, pay his installmentfor the lot or unit direcily to the mortgagee who in"tt appiy the' payments to thecorresponding mortgage indebtedness secured by the particulir lot or unit being paidfor, with.a.view to enabring said buyer to obtain tifle over the lot or unit promptiy after fullpayment thereof.

sEc' 19. Advertisements. - Advertisements that may be made by the owneror developer through newspaper, radio, terevision, reaflets, ciicurar or any' other formabout the subdivision or the condominiunr or its operations or activities muit reflect thereal facts and must be presented in such manner that will not tend to mislead or deceivethe public.

The owner or developer shall be answerable and liable for the facilities,improvements, infrastructures or other forms of development represented or promised inbrochures, adverlisements and other sales propaganda disseminated by the owner ordeveloper or his agents and the same

'shall -form part of rhe saies waranties

enforceable against said owner or developer, joinfly and severally. Failure to comprywith these warranties shall also be punishable in accordance with tire penalties providedfor in this Decree.

F,a

SEC. 20. Time of Completion. - Every owner or developer shall construct andprovide the facilities, improvements, infrastructures and other forms of development,including water supply and lighting facilities, which are offered and indicated in theapproved subdivision or condominium plans, brochures, prospectus, printed matters,letiers or in any form of advertisement, within one year from the date of the issuance ofthe license for the subdivision or condominium project or such other period of time asmay be fixed by the AuthoritY.

sEc. 21. Sales Prior to Decree. - In cases of subdivision lots or condominiumunits sold or disposed of prior to the effectivity of this Decree, it shall be incumbent uponthe owner or developer of the subdivision or condominium project to completecompliance with his or its obligations as provided in the preceding section within twoyears from the date of this Decree unless otherwise extended by the Authority or unless

an adequate performance bond is filed in accordance with Section 6 hereof.

Failure of the owner or developer to comply with the obligations under this and

the preceding provisions shall constitute a violation punishable under sections 38 and

39 of this Decree.

sEc. 22. Alteration of 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

i"pr.r"nt"o in its advertisements, without the permission of the Authority and the

wiitten conformity or consent of the duly organized homeowners' association, or in the

absence of the laiter, by the majority of the lot buyers in the subdivision.

sEc. 23. Non-Forfeiture of Payments. - No installment payment made by a

buyer in a subdivision or condominium proshall be forfeited in favor of the owner or d€the owner or developer, desists from furthet

the legal rate.

sEc.24 'Fai |uretoPay|nsta | |ments . .Ther ightsof thebuyer in theeventofhis failure to pay the installments due for reasons other than the failure of the owner or

Jeveloper to develop the project shall be governed by Republic Act No.6552

Where the transaction or contract was entered into prior to the effectivity of

Republic Act No.6552 on August 26,1972, the defaulting buyer shall be entitled to the

corlesfonOing refund based 6n the installments paid after the effectivity of the law in

the absence of any provision in the contracl to the contrary'

sEc.25. lssuanceofT i t |e . .Theownerordeve lopersha| lde | iver thet i t leo fthe lot or unit to the buyer upon full payment of the lot or unit. No fees, except those

requireO for the registration ol the de6O of sale in the Registry of Deeds, shall be

collected for the issuance of such title. In the event a mortgage over the lot or unit is

outstanding at the time of the issuance of the title to the buyer, the owner or developer

shall redeem the mortgage or the corresponding portion thereof within six months from

such issuance in ordei that the title over any fully paid lot or unit may be secured and

delivered to the buyer in accordance herewith'

59

SEC. 26. Realty Tax. - Real estate tax and assessment on a lot or unit shall bepaid by the owner or developer without recowse to the buyer for as long as the title hasnot passed the buyer; Provided, however, that if the buyer has actually takenpossession of and occupied the lot or unit, he shall be liable to the owner or developerfor such tax and assessment effective the year following such taking of possession andoccupancy.

SEC, 27. Other Charges. - No owner or developer shall levy upon any lot orunit buyer a fee for an alleged community benefit. Fees to finance services for commoncomfort, security and sanitation may be collected only by a properly organizedhomeowners association and only with the consent of a majority of the lot or unit buyersactually residing in the subdivision or condominium project.

SEC. 28. Access to Public Offices in the Subdivision. - No owner ordeveloper shall deny any person free access to any government office or publicestablishment located within the subdivision or which may be reached only by passingthrough the subdivision.

sEc' 29. Right of way to pubric Road. - The owner or deveroper of asubdivision without access to any existing public road or street and such right of waymust be developed and maintained according to the requirement of the g6vernmentauthorities concerned.

. . sEc. 30. organization of Homeowners Association. - The owner ordeveloper of a subdivision project or condominium project shall initiate the organizationof a homeowners association among the buyers and residents of the projeJts for thepurpose of promoting and protecting their mutual interest and assist in theii communitydevelopment.

Sec' 3'l' Donation of Roads and open spaces to Locar Government. - Theregistered owner or developer of the s

any other purpose or purposes unless after hearing, the proposed converslon isapproved by the Authority.

sEc. 32. Phases of subdivision. - For purposes of comprying with theprovisions of this Decree, the owner or deveroper may divide tne devebi#erit and saleof the subdivision into phases, each phase to cover not ress than ten troineciares. rnerequirement imposed by this Decree on the subdivision as a whole shall be deemedimposed on each phase.

. 9Eq. 33. Nullity of Waivers. _ Any condition, stipulation, or provision incontract of sale whereby any person waives compriance wiih any prwilion or tnisDecree or of any rule or regulation issued thereunder'shall be void.

sEc. 34. visitoriar powers. - This Authority, through its dury authorizedrepresentative may, at any time, make an examination into the business affairs,administration, and condition of any person, corporation, partnership, coopeiatiue, orassociation engaged in the business of selling subdivision lbts and condominium unrts.

60

For this purpose, the official authorized to do so shall have the authority to examineunder oath the directors, officers, stockholders or members of any corporation,partnership, association, cooperative or other persons associated or connected with thebusiness and to issue subpoena or subpoena duces tecum in relation to anyinvestigation that may arise therefrom.

The Authority may also authorize the Provincial, City or Municipal Engineer, asthe case may be, to conduct an ocular inspection of the project to determine whether thedevelopment of said project conforms to the standards and specifications prescribed bythe government.

The books, papers, letters, and other documents belonging to the person orentities herein mentioned shall be open to inspection by the Authority or its dulyauthorized reoresentatives.

SEC. 35. Take-Over Development. - The Authority, may take-over or causethe development and completion of the subdivision or condominium project at theexpense of the owner or developer, jointly and severally, in cases where the owner ordeveloper has refused or failed to develop or complete the development of the Projectas provided for in this Decree.

The Authority may, after such tiake-over, demand, collect and receive from thebuyers the installment payments due on the lots, which shall be utilized for thedevelopment of the subdivision.

SEG. 36. Rules and Regulations. - The Authority shall issue the necessarystandards rules and regulations for the effective implementation of the provisions of thisDecree. Such standards, rules and regulations shall take effect immediately after theirpublication three (3) times a week for tvvo consecutive weeks in any newspaper ofgeneral circulation.

sEG. 37. Deputization of Law Enforcement Agencies. - The Authority maydeputize the Philippine constabulary or any law enforcement agency in the execution ofits final orders, rulings or decisions.

SEc. 38. Administrative Fines, . The Authority may prescribe and impose

fines not exceeding ten thousand pesos for violations of the provisions of this.Decree or

of any rule or rejulation thereunder. Fines shalt be payable to the Authority andenforjeable through writs of execution in accordance with the provisions of the Rules of

Court.

sEc. 39. Penahies. - Any person who shall violate any of the provisions of thisDecree and/or any rule or regulation that may be issued pursuant to this D€cree shall,upon conviction, be punished by a fine of nor more than twenty thousand (P20,000.o0)pesos and/or imprisonment of not more than ten (10) years. Provided, that-in the caseof corporations, partnerships, cooperatives, or associations, the President, Manager orAdministrator or the person who has charge of the administration of the business shallbe criminally responsible for any violation ol this Decree andlor the rules and regulationspromulgated pursuant thereto.

61

SEC. 40. Liability of Controlling Persons. - Every person who directly orindirectly controls any person liable under any provision of this Decree or of any rule orregulation issued thereunder shall be liable jointly and severally with and to the sameextent as such controlled person unless the controlling person acted in good faith anddid not directly or indirectly induce the act or acts constituting the violation or cause ofaction.

SEC. 41. Other Remedies. - The rights and remedies provided in this Decreeshall be in addition to any and all other rights and remedies that may be available underthe existing laws.

SEC. 42. Repealing Clause. - All laws, executive order, rules and regulations,or parts thereof inconsistent with the provisions of this Decree are hereby repealed ormodified accordingly.

SEC. 43. Effectivity. - This Decree shall take effect upon its approval.

DONE in the City of Manila, this 12th day of July, in the year of our Lord, nineteenhundred and seventy-six.

(SGD.) FERDINAND E. MARCOSPresident

Republic of the Philippines

By the President:

(sGD.) JACOBO C. CLAVEPresidential Executive Assistant

oz

PRESIDENT]AL DECREE NO. 1216

DEFTNING "OPEN SPACE" IN RESIDENTIAL SUBDIVISION AND AMENDINGSECTION 31 OF PRESIDENTIAL OECREE NO,957 REQUIRING SUBDIVISION

OWNERS TO PROVIDE ROADS, ALLEYS, SIDEWALKS AND RESERVE OPEN FORPARKS OR RECREATIONAL USE

WHEREAS, there is a compelling need to create and maintain a healthyenvironment in human settlements by providing open spaces, roads, alleys andsidewalks as may be deemed suitable to enhance the quality of life of the residents,therein;

WHEREAS, such open spaces, roads, alleys and sidewalks in residential

subdivision are for public use and are, therefore, beyond the commerce of men;

WHEREAS, pursuant to presidential Decree No. 953 at least thirty percent (30%)

of the total area of a subdivision must be reserved, developed and maintained as open

space for parks and recreational areas, the cost of which will untimately be borne by the

tot uuy"rt which thereby increase the acquisition price of subdivision lots beyond the

reach of the common mass;

WHEREAS,th i r typercent (30%)requi redopenspacecanbereducedtoa|eve|that will make the subdivision industry'viable and the price of the residential lots within

the means of the low income group and at the same preserve the environmental and

ecotogical balance through rat'r6nal'control of the land use and proper design of space

and facilities;

WHEREAS,pursuant toPres ident ia lDecreeNo'757 'governmentef for ts inhousing, including ,"rori."., functions and activities maximize results have been

concentrated into one slngle agency, namely' the National Housing authority;

Now,THEREFoRE, | ,FERDINANDE.MARcos,Pres identof thePhi | ipp ines 'byv i r tueof t 'hepowersvested inmebytheConst i tu t ion,doherebyorderanddecree:

SECTION 1. For purposes of this Decree' the term "open space" shall. mean an

area reserved "r"tr"iuury-i5i

parks, ptaygrounds, recreational uses, schools, roads,

;i;;;;;;;nif, nospitit, heatth centers, barangay centers and other similar facilities

and amenities.

sEcTloN 2. Section 31 of Presidential Decree No. 957 is hereby amended to

read as follows:

SECTTON 31. Roads, Alleys, Sidewalks and Open Spaces' - The

ownerordeve|operofasubdiv is ionsha| |prov ideadequateroads,a | |eysandsidewa|ks.Forsubdiv is ionpro jectsone(1)hectareormore, theownerormoreshall reserve thirty percent iso%) ot the gross area for open space. such open

space shall have' the foliowing standirds allocated exclusively for parks,

playgrounds and recreational use:

a. 9% of gross area for high density or social housing (66 to 100 family

lot per gross hectare).

63

o. 7% of gross area for medium-density or economic housing (21 65family lot per gross hectare).

3.5% of gross area for low-density or open market housing (20family lots and below per gross hectare).

These areas reserye for parks, playgrounds and recreational use shall be non-alienable public lands, and non-buildable. The plans of the subdivision project shallinclude tree-planting on such parts of the subdivision as may be designated by theAuthority.

Upon their completion as certified to by the Authority, the roads, alleys, sidewalksand playgrounds shall be donated by the owner or developer to the city or municipalityand it shall be mandatory for the local governments to accept provided, however, thaithe parks and playgrounds may be donated to the Homeowners association of thepro.iect with consent of the city or municipality concerned. No portion of the parks andplaygrounds donated thereafter shall be converted to any other purpose or purposes.

sEcrloN 3. sections 2 and s of presidentiar Decree No. 953 are herebyrepealed and other laws, decrees, executive orders, institutions rules and regulations orparts thereof inconsistent with these provisions areaccordingly.

also repealed or amended

SECTION 4. This Decree shall take effect immediately.

. Done in rhe city of .Manira, this 14tb day of october in the year of our Lord,nineteen hundred and seventy seven.

(sGD.) FERDTNAND E. MARCOSPresident of the phil ippines

By the President:(scD.) JUAN C. TUVERAPresidential Assistant

64

HSRG Administrative Order No. 82-01Series of 1982

RULES AND REGULATIONS IMPLEMENTING SEC. 3I OF PRESIDENTIAL DECREE NO.957, AS AMENDED BY PRESEIDENTIAL OECREE NO. 1216

Pursuant to Article lV, Sec. 5 (c) of Executive Order No. 648, the following rules arepromulgated to implement Sec. 31 of P.D. No. 957, as amended by P.D. No. 1216.

Rule IGENERAL PROVISIONS

Section 1. Title. These Rules and Regulations shall be known as the subdivisionRegulations on Donations of Road Lots and Open Spaces, hereinafter refened to as the Rules.

Section2.9s9p.9-qlAppls4!ip-l 'TheseRu|essha||app|yon|ytosubdivisionprojectsduly registered andior ticensed by the Human Settlements Regulatory Commission.

Sec t ion3.Dce!erg ! i -9 l .9 fEo]Lc . i -e9 ' | t i s thepo| icyo f thegovernment tocrea teandmaintain a healthy environment rn numan Settlements by proViding open Spaces, roads, alleys,and sidewalks as may be deemed suitable to enhance the quality of life of the residents therein.

Rule llDEFINITION OF TERMS

Section 4. gefinitiol of Terms. For purposes of these Rules:

a) Commission - shall mean the Human Settlements Regulatory Commission

b) Subdivision Project - shall mean a tractwhich is partitioned primarily for residentimprovements lhereon, and offered to theshall include al l residential, commercial, i rspaces and other community and public areas in the project;

c) Open space - shall mean an area reserved exclusively for parks' playgrounds''

recreational uses, and other similar facilities and amenities'

d) Road lots - shall include roads, sidewalks, alleys and planting strips, and its gutters'

drainage and sewerage.

Rule l l lAPPROVAL OF APPLICATION FOR

CERTIFICATE OF COMPLETION

section 5. Application for Gertificate of completion. Every registered owner or

developer ot a subdVision prolEct wno wishes to donate the road lots and open sp?ce of the

same to the local Government snalt first apply with the Commission for Certificate of Completionby filing in triplicate the following:

application form duly filled up; andletier of Intent to Donate the road lots and open space io the local Government.

1 )2)

65

Section 6. Procedures. Upon receipt of the application, the Commission incoordination with the City/Municipality concerned shall conduct an inspection of the subdivision.The inspector(s) shall then prepare his/her findings and/or recommendation to theCommissioner-in-charge who will act on the same.

Section Z. AppfSyel. lf the facts stated in the application for Certificate of Completionare found to be true and correct, the application shall be approved through the issuance of theCertiticate of Completion by the Commission.

Thereafter, the registered owner or developer shall submit the Certificate of complefronissued by the Commission to the City/Municipality concerned together with his/her Deed ofDonation.

Rule lVEFFECTS OF DONATION OF ROAD LOTS/OPEN SPACE

Section 8. Riqht of Graetee to Donate Road Lots and Open SDace. Any person whois able to secure a Certificate of Completion from the Commission snilt nave tne rioht to donatethe road lols and open space to the city/Municipality concerned, provided tha-t the parks,playgrounds and recreational use may be donated to the Homeowners Association of thesubdivision with the consent of the City/Municipality concerned.

- Section 9. -E,f-fectC. Once the registered owner or developer has secured the Certificateof comp{etion and has executed a Deed of Donation of Road Lots and Open Space, he/she shallbe deemed relieved of the responsibility of maintaining the road lots and open space of thesubdivision notwithstanding the refusal of City/Municipality concerned to accept the donation.

should the registered owner or deveroper merely secure a certificate of completionwthout makjng_ the correspondilg deed of donation, he/sire is still deemed responsibie for themaintenance of the subdivision facilities in which case a reasonable amounl of the performancebond shall reserved to guarantee the maintenance of the road and open

"p""". ThL reservedamount.shall be totarry rereased by the commission only upon showing by ihe registereo owneror developer of proof of a deed of donation executed in fivor of the city'/Municiparty concerneo.

qand Open Space. Road lots and open spacesunicipality or to the Homeowners Association aspurpose or purposes. In connection therewith,

arienabre rands, and no buirdins or structure .r:"'i;Jlfi?fj[nilff"?1"j;t'ir".,3i'1n13n"3[essential to lhe said open space as deterrnined by the City/Municipaliiy.

should the owner-donee wish _to change or arter the use of the open space in thesubdivision, prior permission from the commission "nJ

*ritt"n conformity of the dury organrzeonomeowners association, or in the absence of the ratter by the majority of tne rot buyers in thesubdivision shall be required provided that the required open space shall likewise be allocated inother areas of the subdivision.

Rule VMISCELLANEIOUS PROVISIONS

Section 1 1. Eqes. Until such time that the Commission shall haveschedule of fees, it shatt apply and collect the insfection .fees providedimplementing rules of pD 9S7 and its related faws.

adopted a newfor under the

66

Section 12. Separabilitv Clause. The provisions of these rules are hereby declaredseparable, and in the event any of such provisions are declared null and void, the validity of allother provisions shall not be affected thereby.

Section 13. EffeclMy. These rules shall take effect immediately after its publication ina newspaper of general circulation.

Promulgated, 26 August 1982, Makati, Metro Manila.

(sGD.) ERNESTO C. MENOIOLACommissioner andChief Executive Officer

(sGD.) ARTURO C. CORONACommissioner

(sGD.) SALVADOR P. SOCRATESCommissioner

(sGD.) GESAR O. MARQUEZCommissioner

Attested:

(SGD.) JESUS N, BORROMEOCommissioner

(SGD.) ABNER P. CANLASCommissioner

(SGD,) RAMON B. CARDENACommissioner

(SGD.) EUFEMIO P. DACANAYActing Commission Secretary

o /

ANNEX B

THE CONOOMINIUM ACT

AN ACT TO DEFINE CONDOMINIUM, ESTABLISHREQUIREMENTS FOR ITS CREATION, AND GOVERN

tTS |NCIDENTS. (Rep. Act No.4Z2O)

sEcrloN 1. The short tite of this Act shat be "The condominium Act."

sEc'|oN 2. A condominium is an interest.in rear property consisting of aseparate interest in a unit in .a residentiar, industriar or commerciar buirdinq and anundivided interesr in common direcry or inoirectry,-initr" i";;';;;;i, ii,."r'oL,"o unoin other common areas of the building. I .otiiorinium may incrude, in adcrition, aseparate interest in other oortions.of suih legr property. Tiile td tne commonlr.a, maybe held by a corporation speciaily tormeo toiin6lurpo"" (hereinafter known as the"condominium corporation';) in -which

tn" iif ro!* of separate interests shallautomaticafly be members or sharehorders, to th; exctusion ot'oineis, in'prJiortion tothe appurtenant interest of their respectiu" unit. inln" common areas.The interests in condominium may be ownership or any other interest In realproperty recognized by the raw of property'in tne civir coie a.J .i',", i"rtiri;;l;*".SECTION 3. As used in this Act, unless the context otherwise requires:(a)

i!ffir'n'rr" means a condominium as defined in the text preceding

(b) "Unit" means aindependent us€

ecl intended for any type oflocaied in one c

I or more rooms or spacesbuildings

"nJ *u,

ts of floors) in a building or:nded thereto.

(c) "project" means the entire parcer of rear property divided or to be divided incondominiums, including ali shuctures thereon.

to' n?"T[:T,;ff:;[:fl:rhe

enrire projecr excepting ar units separatery

(e) "To divide" rear. property means to divide the ownership thereof or otherinterest therein,.by co-nvbying "n"

iirJr" condominiums therein but ressthan the whole thereof.

sEctoN 4. The orovisions of this Act shat appry ro property divided or to bedivided into condominiums,only ii'thl[ ;i]iil;fted in the Register of Deeds of theprovince or city in which the'prop"rtl;, """0"i""rv "nnotated

in the correspondingcertificate of tifle of the rand, 'iriii"l]tt"."n"i'01#l"tenteo

or registered under either

68

the Land Registration or cadastral Acts, an enabling or master deed which shallcontain, among others, the following:

(a) Description of the land on which the building or buildings and improvementsare to be located;

(b) Description of the building or buildings, stating the numtler of storeys andbasements, the number of units and their accessories, if any;

(c) Description of the common areas and facilities;

(d) A statement of the exact nature of the interest acquired or to be acquired bythe purchaser in lhe separate units and in the @mmon areas of thecondominium project. Where title to or the appurtenant interest in thecommon areas is to be held by a condominium corporation, a statement tothis effect shall be included;

(e) Statement of the purposes for which the building or buildings and each ofthe units are intended or restricted as to use;

(f) A certificate of the registered owner of the property, if he is other than thoseexecuting the master deed, as well as of all registered holders of any lien orencumbrance on the property, that they consent to the registration of thedeed,

(S) The following plans shall be appended to the deed as integral parts thereof.

1 . A survey plan of the land included in the project, unless a survey planof the same property had previously been filed in said office;

2. A diagrammatic floor plan of the building or buildings each unit, itsrelative location and approximate dimensions.

(h) Any reasonable restriction not contrary to law, morals, or public policyregarding the right of any condominium owner to alienate or dispose of hiscondominium.

The enabling or master deed may be amended or revoked upon registration of aninstrument executed by the registered owner of the property and consented to by allregistered holders of any lien or encumbrance or land or building or porlion, thereof.

The term "registered owner" shall include the registered owners of condominiumsin the project. Unit registration of a revocation, the provisions of this Act shall continueto apply to such property.

(Amended by R.A. 7899, as follows)

69

REPUBLIC ACT NO.7899

AN ACT AMENDING SECTION FOUR AND SECTION SIXTEEN OF REPUBLICACT NUMBERED FOUR THOUSAND SEVEN HUNDRED TWENW.SIX,

OTHERWISE KNOWN AS "THE CONDOMINIUM ACT"

Be it enacted by the Senate and House of Representatives of thePhilippines in Congress assembled:

sEcrloN 1. section 4, last paragraph of Repubric Act No. 4726 is herebyamended as follors:

SECTfON 4. xxx

- "The enabling or master de€d may be amended or revoked uponregistration of an instrument executed by a simple majofity of the registeredowners of the propefi: Provided, That in a condominiuni pr6;ect exclusively foreither residential or commercial use, simple majority shail bL on a per unlt ofownerchip basis and that in the case of mixed us-e, simple majority shall be on afloor-area. of ownership basis: provided, fuilter, That priorhotif,icatlons to altregistered owners are done: and provided, finally, That any amendment orrevocation already decided by a simple majority of ail registerei owners shall besubmitted to the Housing a-nd Land Use Regulitory Boarl and the city/municipalengineer for approvar oero,re it can be iegist€r-reo. untir registiation of are'ocation, the provisions of this Act shail continue to apply to Juch property".xxx

sEcrloN 5. Any transfer or conveyance of a unit or an apartment, office or storeor other space therein, shall include the transfer or conveyance of the undividedrr case, the membership or shareholdings inlwever, That were the common areas in thes of separate units as co_ovvners thereol no

Flipino citizens or corporation at-reast .ri:t"fi:'1Ti,:',T,"f-fiffi::r"ffilnfi:Filipino citizens, except in cases of hereditary succession. \Mere the @mmon areas rna. condominium project are herd by a corporation, no transfer or *nu"y"n"" of a unitshall be valid if the concomitant transfer oithe appurtenant membership or stockhordingin the corporation will cause the alien interest in'sucn corporation to exceed the limitsimposed by existing laws.

sEcrloN 6. unress otherwise expressry provided in the enabring or masterdeed or the declaration of restrictions, the incidents of a condominium g"rant are asfollows:

(a) The boundary of the unit granted are the interior surfaces of the perimeterwa[s, floors, ceirings, windows and door thereof. The foilowinj ir6 not p".tof the unit: bearing walls, columns, floors, roofs, foundatids and othercommon structural elements of the buildino. tofrbirareas common use; elevafor equreftigeration and central air crpumps and other central servicer

n'

70

conduits, wires and other utility installations, wherever located, except theoutlets thereof when located within the unit-

There shall pass with the unit, as an appurtenance thereof, an exclusiveeasement for the use of the air space encompassed by the boundaries ofthe unit as it exists at any particular time and as the unit may lawfully bealtered or reconstructed from time to time. Such easement shall beautomatically terminated in any air space upon destruclion of the unit as torender it untenantable.

Unless otherwise provided, the common areas are held in common by theholders of units, in equal share one for each unit.

A non-exclusive easement for ingress, egress and support through thecommon areas in appurtenant to each unit and the c,ommon areas aresubject to such easements

(e) Each condominium owner shall have the exclusive right to paint, repaint, tile,wax, paper or otherwise refinish and decorate the inner surface of the walls,ceilings, floors, windows and doors bounding his own unit.

(0 Each condominium owner shall have the exclusive right to mortgage, pledgeor encumber his condominium and to have the same appraisedindependently of the other condominium owner is personal to him'

(s) Each condominium owner has also the absolute right to sell or dispose ofhis condominium unless the master deed contains a requirement that theproperty be first offered to the condominium owners within reasonableperiods of time before the same is offered to outside parties;

sEcTloN 7. Except as provided in the following section, the common areasshall remain undivided, and there shall be no iudicial partition thereof'

sEcTloN 8. where several persons own condominium in a condominiumproject, an action may be brought by one more such persons for partition thereof byiat6 of the entire project, as if the o\ /ners of all the condominiums in such project were

@-owners of all the entire project in the same proportion as their interests in the

common areas: Provided, however, That a partition shall be made only upon ashowing:

(b)

(c)

(d)

(a) That 3 years afier damage or destruction to the projects which renders amateriai part thereof unfit for its use prior thereto, the proiect has not beenrebuilt or repaired substantialty to its state prior to its damage or destruction;or

(b) That damage or destruction to the project has rendered one-half or more ofthe units therein untenantable and that condominium owners holding inaggregate more than 30o/o interest in the common areas are opposed torepair or restoration of the projects; or

(c) That the proiect has been in existence in excess of 50 year, that it isobsolete and uneconomic, and that condominium onrners holding in

71

aggregate more than 50% in the common areas are opposed to repair orrestoration or modeling or modernization of the project; or

(d) That the project or a material part thereof has been condemned orexpropriated and that the project is no longer viable, or that thecondominium owners holding aggregate more than 70olo interest in thecommon areas are opposed to continuation of the condominium regimeafter expropriation or condemnation of a material proportion thereof; or

(e) That the conditions for such partition by sale set forth in the declaration ofrestrictions duly registered in accordance with the terms of this Act. havebeen met.

sEcrloN 9. The owner of a project shail, prior to the conveyance of anycondominium therein, register a declaration-or restrictions relating to such project, whichrestrictions sball constitute a lien upon each condominium inite pide&s,'ano

"narrlnsure to and bind all condominium owners in the projects. such liens, unless othenrviseprovided' may be enforced by any condominium' owner in the project or by themanagement body of such project. The Register of Deeds shall entei and "nnotate

tn"declaration of restrictions upon the certificaie of tifle covering the land included withintj5 Proiect, if the land is patented or registered under the Land Registration or CadastralActs.

The decraration of restrictions shall provide ficr the management of the project byanyone..of the fofiowing management bodies: a condoriiniu, *rporliion, "nassociation of the condominium owners, a board of govemors etected by condominiumof'vners'. or a management agent erected by the owners or by the board named in thedeclaration. . lt shail arso provide for voting majorities, quorums, notices, meeting date,and other rules goveming such body or bodies.

-

such decraration of restrictions among the other things, may arso provide:

(a) As to any management body

1. ' Fot the power thereo( incruding power to enforce the provisions of thedeclarations of restriciions:

2' For maintenance_ of insurance poricies insuring condominium ownersagainst loss .by fire, casualty, iiability, workmen,s compensation andother insurabre risks and for bonding ot ttre meriGd'-ot .nymanagernent body;

3. Provisions for maintenance, utility, gardening and other servicesbenefting the common areas, for ihe operation of the building, andregar, accounting and other professionar aho technicar se.;;,

4. For purchase of mater,als, supplies and the like needed by thecommon areas:

5. For payment of taxes and special assessments which would be a lienupon the entire project .or common areas, and tor Olsctraige-oi anyencumbrance levaed against the entire project of the corn.on

-"r"a", ,

72

6. For reconstruction of any portion or portions of any clamage to ordestruction of the projecl;

7. The manner for delegation of its powers;

8. For entry by its officers and agents into any unit when necessary inconnection with the maintenance or construction for which such body isresponsible;

L For a power of attomey to the management body to sell the entireprolect for the benefit of all of the owners thereof when partition of theproject may be authorized under Section I of this 46{, which saidoower shali be binding upon all of the condominium owners regardlessof whether they assume the obligations of the restrictions or not'

(b) The manner and procedure for amending such restrictions, Provided, That

they vote of not less than a majority in interest of the owners is obtained;

(c) For independent audit of the accounts of the management body;

(d)For reasonab|eassessments tomeetauthor izedexpendi tures 'eachcondominiumunittobeassessedseparate|yforitsshareofsuchexpensesin proportion (unless othelwise provided) to its power's fractional interest in

any common areas;

(e)For thesubord inat ionof the| ienssecur ingsuchassessmentstoother l ienseither generally or specifically described;

rrovided for in Section I and 13 of this Act'

lect and dissolution of the condominiumh right to partition or dissolution may becondominium owners to rebuild within a

certain period or upon specified percentase 9f damaSe l:,Ih1!:l|9]nn' o'

uponadecisionofanarbitrator,oruponanyotherreasonableconolt lon'

SECTION'10 'Whenever thecommonareastnacondomin iumpro jectareheldrtion shall constitute the management bodysucn a corporation shall be limited to theership or any other interest in real property:he project, and to such other purposes ast to the accomplishment of said purposes'

provision contrary to or inconsistent with Imaster deed, or the declaration of restricondominium corporation regardless of wf .. ,r . -.L: ̂r- ir .shall not be transferable s6parately from the condominium unit of which it rs an

appurtenance. vvhen a ,em-6", or i stockholder @ases to own a unit in the proiect in

which the condominium coiporation owns or holds the common areas' he shall

automatically cease to Oe a mbmber or stockholder of the condominium corporation'

sEcTloNll 'Thetermofacondominiumcorporationshallbeco-terminouswiththe duration of the condominium project, the provisions of the corporation law to the

contrary notwithstanding.

sEcTloN 12. In case of involuntary dissolution of a condominium corporation for

any of the causes provided by law, the @mmon areas owned or held by the corporation

inifr, UV way of liquidation, bL transfened pro-indiviso and in proportion to their interest

in in" cirrpoi"tion io the members or stockholders thereof, subject to the superior rights

ot tne coiporation creditors. Such transfer or conveyance shall be deemed to be full

liquidation of the interest of such members or stockholders in the corporation After

such transfer or conveyance, the provisions of this Act goveming undivided con-

ownership of, or undivided interest in, the common areas in condominium projects shall

fully apply.

sEcTloN 13. Until enabling or the master deed of the project in which thecondominium corporation owns or holds the common areas is revoked, the Corporationshall not be voluntarily dissolved through an action for dissolution under Rule 104 of theRules of court except upon a showing:

(a) That 3 years after damage or destruction to the project in which thecorporation owns or holds the common areas, which damage or destructionrenders a material part thereof unfit for its use prior thereto, the project hasnot been rebuilt or repaired substantially to its state prior to its damage ordestruction; or

(b) The damage or destruction to the project has rendered one-half or more ofthe units therein untenantable and that more than 30% of the members ofthe corporation, if non-stock, or the shareholders representing more than 30% of the capital stock entities to vote, if a stock corporation, are opposed tothe repair or reconstruction of the project; or

(c) That the project has been in existence in excess of 50 years, that it isobsolete and uneconomical, and that more than 50% of the members of thecorporation if non-stock, or stockholders representing more than 50 percentof the capital stock entitled to vote, if a stock corporation, are opposed to therepair or restoration or remodeling or modernizing of the project; or

(d) That the project or material part thereof has been condemned orexpropriated and that the project is no longer viable or that the membersholding in aggregate more than 70% interesi in the corporation if non-stock,or the stockholders representing more than TOYo of the capital stock entitledto vote, if a stock corporation, are opposed to the continuation of thecondominium regime after expropriation or condemnation of a materialportion thereof; or

(e) That the conditions for such a dissolution set forth in the declaration ofrestrictions of the project in which the corporation owns or holds the@mmon areas. have been met.

74

SECTION 14. The condominium corporation may also be dissolved by theaffirmative vote of all the stockholders or members thereof at a general or specialmeeting duly called for the purpose: Provided, That all the requirements of Section 62of the Corporation Law are complied with.

SECTION 15. Unless otherwise provided for in the declaration of restrictions,upon voluntary dissolution of a condominium corporation in accordance with thepiovisions of Section 13 and 14 of this Act, the corporation shall be deemed to hold apower of attorney from all the members or stockholders to sell and dispose of theirseparate interesti in the project and liquidation of the corporation shall be effected by asaie of the entire project as if the corporation owned the whole thereol subject to therights of the corporation and of individual condominium creditors'

sEcTloN 16. A condominium corporation shall not, during its existence, sell,

exchange, lease or otherwise dispose of the common areas owned by or held by it is in

the condominium project unless authorized by the affirmative vote of all the stockholders

or memDers' (Amended by R'A' 7899, as follows)

x x x SEC. 2. Section 16 of the same Act is hereby amended to read as

follows:

"SEc. 16, A condominium corpoitttion sha|t not, during its existence, sel|,

exchange, lease or otirerwise dispose of the_common areas owned or held by it in

ine con-Oominium project unless authorized by the affirmative vote of a simplelt's: Provided, that prior notifications to allrd Provided, further, That the condominiumIte the project with another upon the affirmativer reqistered owners' subject only to the final

sgulatory Board."

sEc.3.Ef fect iv i ty . -Th isActsha| l takeef fect f i f teen( . |5)daysaf ter i tscompteG publication i'n at least two (2) national newspapers of general

circulation.

Approved,

Th isActwhich isaconso| idat ionofHouseBi l |No.12384andsenateBi | |No.2042wasf ina | typassedbytheHouseofRepresenta t ivesandthesenateonFebruary 15, 1995'

EDGARDO J, ANGARAPresident of the Senate

JOSE DE VENECIA, JR.Speaker of the House of

Representafives

CAMILO L. SABIOSecretary General

H ouse of Re P resen tati v es

EDGARDO E. TUMANGANSecretary of the Senate

Approved: FEB.23, 1995

FIDEL V. RAMOSPresident of the PhiliPPines

75

SECTION 17. Any provisions of the Corporation Law to the contrarynotwithstanding, the byJaws of a condominium corporation shall provide that astockholders or member shall not be entitled to demand payment of his shares orinterest in those cases where such right is granted under the Corporation Law unless heconsents to sell his separate interest in the project to the corporation or to anypurchaser of the corporation's choice who shall also buy from the cor@ration thedissenting member or stockholder's interest. In cases or disagreement as to price, theprocedure set forth in the appropriate provision of the Corporation Law for vaiuation ofshares shall be allowed. The corporation shall have 2 years within which to pay for theshares or furnish a purchaser of its choice from the time of award. All exoensesincurred in the liquidation of the interest of the dissenting member or stockholder shallbe bome by him.

sEcrloN 18. upon registration of an instrument conveying a condominium, theRegister of Deeds shall, upon payment of the proper fees, ent,er and annotate theconveyance on the certifcale of title covering the land included within the project andthe transferee shall be entifled covering the land included within the projJct and thetransferee shall be entiiled to the issuance of a,,condominium owneris,,:'copy of thepertinent portion of such certificate of tiile. said ,,condominium owner,s" copy need notrgproduce the o\ /nership status or other condominiums in the projec{. A'copy of rhedescription of land, a brief description of condominium conveyed, name and'personalcircumstances of the condominium owner would be sufficiint for purposes of the"condominium owner's" copy of the certificate of tifle. No crnveyance bf condominiums

conveyance thereof from the owner of the)anied by a certificate of the rnanagementis in accordance with the provisions of the

return a copy of the deed of conveyance to Iand stamped by the Register of Deeds in the same manner as in the case of registrationof conveyance or real properly under said laws.

sEcilON 19. where the enabring or master cteed provides that the rancrincluded within a condominium project are to be owned in common by the condominiumowners therein the Registration -of Deeds may, at the request of ail the condominiumowners and upon surender of aI their "condominium owner,s -pi"a, -".n""r

.r"certiftcates of tille of the property and issue a new one in the name of said condominiumowners as pro-indiviso co-owners thereoi

sEcroN 20. An assessment upon any condominium made in accrrdance witha duly registered declaration of restrictions snait be an obligation of the owner thereof atthe time the assessment is made. The amount of any such assessment prus any otherchafges thereon, such as interesJ, gosts (incruding attorney,s fees) are penartres, assuch may be provided for in the decraration of restiictions, shail be and become a rienupon causes a not,ce of assessment to be registered with the negistei ot o;o ot tn"city or province where such. condominium proy6ct is rocated. The notice shail state theamount of such assessment and such other iharges rhereon ; ;rt;;;;i'rro'rizeo oythe declaration of restrictions, a description of cdndominium unit ajainsi*ni"n ""r"

76

has been assessed, and the name of the registered owner thereof. Such notice shall besigned by an authorized representative of the management body or as othenrviseprovided in the declaration of restrictions. Upon payment of said assessment andcharges of other satisfaction thereof, the management body shall cause to be registereda release of the lien.

Such lien shall be superior to all other liens registered subsequent to theregistration of said notice of assessment except real property tax liens and except thatthe declaration of restrictions may provide for the subordination thereof to any otherliens and encumbrances.

Such liens may be enforced in the same manner provided for by law for thejudicial or extra-judicial foreclosure of mortgages or real property. Unless otherwiseorovided for in the declaration of the restrictions, the management body shall havepower to bid at foreclosure sale. The condominium owner shall have the same right ofredemption as in cases of judicial or extra-judicial foreclosure of mortgages.

SECTION 21. No labor performed or services or materials furnished without theconsent of or at the request of a condominium owner or his agent or his @ntractor orsub-contractor, shall be the basis of a lien against the condominium of any othercondominium owner, unless such other owner has expressly consented to or requestedthe performance Of such labor or furnishing of such materials or seryices. Such expressconsent shall be deemed to have been given by the owner of any condominium in the

case of emergency repairs of his condominium unit. Labor performed or services or

materials furnisned for the common areas, if duly authorized by the management bodyprovided for in a declaration of restrictions governing the property, shall be deemed tobe performed or furnished with the express consent of eaCh condominium owner' The

owner of any condominium may remove his condominium from a lien against two of the

lien of the iraction of the totai sum secured by such lien which is attributable to his

condominium unit.

SECTION 22. Unless otherwise provided for by the declaration of restrictions,

the management body, provided for herein, may acquire and ho|d, for the benefit of the

condominium owners, tangible personal property and may dispose of the same by sale

orotherwise;andthebene,ficial interestinsuchpersona|propertysha||beownedbythecondominium owners in the same proportion as their respective interests in the common

areas. A transfer of a condominium shall transfer to the transferee ownership of the

transferor's beneficial inte!'est in such personal property'

SECTION 23. Where, in an action f<the ground that the project or a materiexpropriated, the court finds that the conditihave not been met, the Court may decrewhich portion or portions of the project shallowners thereof, and the respective rights of the remaining owners and the just

corpensation, if any, that a condominium owner may be entitled to dle deprivation of

t i" dropert'. Upon ieceipt of a copy of the decree, the Registration of Deeds shall enter

and annotate the same on the pertinent certification of title.

sEcTloN 24. Any deed, declaration or plan for a condominium projecl shall be

liberatly construed to facilitate the operation of the project, and its provisions shall bepresumed to be independent and severable.

SECTION 25. Whenever real property has been divided into condominiums,each condominium separately owned shall be separately assessed, for purposes of realproperty taxation and other tax purposes, to the owners thereof and tax on each suchcondominium shall constitute a lien solely thereon.

SECTION 26' All acts or parts of Acts in conflict or inconsistent with this Act arehereby amended insofar as condominiums and its incidents are con@rned.

SECTION 27. This Act shail take effect upon its approval.

Approved, June 18, 1966

J.D. OPtNtoN NO. 180Series of 1973

RE FOREIGN INVESTMENT IN LAND AND/OR BUILDINGS

Dec.21, 1973

The Acting Secretary of TradeQuezon City

Sir:

This is with reference to your reguest for opinion on the forowing quesronsregarding foreign Investment in lands and/or buildings:

. '-1 can foreign investors or multinationar corporations own buirding or unitsthereof (as in condominium)? Apartments?

"2. can there be jointrcwnership at 60 percent - 40 percent of rand and buirdingbetween foreign investors and their Filipino counieioarts?,,

Regarding the ownership of condominium units by foreign investors ormultinatronal corporation, as reasbned out in opinion.No_ 175, cunent series, supra, thesame mav be atowed but subjecr to rhe qualifications mentioneJ';il; jtviso otSection 5 of R.A. No. 4726 which needs.

" Provided, however, That where the common areas in the condominiumproject are owned by the owners of se

)n, no transfer or conveyance of a unit shallrppurtenant membership or stockholding int an such corporation to exceed the limits

78

As to the ownership by foreign investors or multinational corporations ofaoartments which do not fall within the purview of the Condominium Act (R.A. No' 4726)suffice it to state that I am not aware of any law which prohibits aliens or foreigncorporations from owning apartment buildings, so long, of course, as they will merelylease the land on which the building will be constructed, for a period not exceeding tenyears.

Anent your second query, the following provisions of Article XIV of the newConstitution are pertinent.

" section 9. The disposition, exploration, development, exploitation. of utilizationof any of the natural resources of the Philippines shall be limited to citizens of thePhilipbines, or to corporations or associations at least sixty per centum of the capital ofwhich is owned by such citizens, x x x

"section 10 x x x No private corporations or association may hold alienable

lands of thi: public domain except by lease not to exceed one thousand hectares in

area; nor may any citizen holcl such lands by lease in excess of five hundred hectares or

acqui rebypurchaseorhomesteadinexcessof twenty . fourhectaresxxx.

sEcT|oN14'saveincasesofheredi tarySuccess ion,nopr ivate |andshal lbetransferred or conveyeo except to individuals, corporations or associations qualified to

acquire or hold lands of the public domain "

Uponthebasisof theseprov is ions, thefo l |owingconc|us ionsmaybemadeyoursecono query:

1. Only cit izens of the Phil ippines, as individuals' may acquire both private

lands and lands of the public domain. Therefore, there can be no joint ownership of

such lands between Filipinos and foreign investors are individuals

2.However ,corporat ionsorassoc ia t ionsat |east60percento f thecap i ta |stock oi which is owned by Filipinos, and the remainder by foreigners, may own prlvale

lands.

3.corporat |onsorassoc iat ions--whetherofc i t izensorofc i t izensandal iens-- may not own, but may only hold by lease lands of public domatn

4 'Asto the. , jo in lownersh ipat60percent -40percento f lan-dsandbui |d ingsforeign investors ano Fitipinoi, inl r"v be iegally feasibte as long as the ownership of

the land building is Uy corpoiatLns orLssociJtions at least 60% of the capital stock of

*ni"n i. owned -by

Filipino citizens and only the remainder by the foreign investors.

Please be guided accordingly

Very truly yours,

(SGD) VTCENTE ABAD SANTOSSecretary of Justice

( J

J.D. OP|N|ON NO. 17sSeries of 1973

RE FOREIGN INVESTMENT IN CONDOMINIUMS IN THE PHILIPPINES

Dec. 12, 1973

The Secretary of TourismManila

Sir:

This has reference to your request for opinion on the folowing questaonsregarding foreign investment in condominium in the philippines.

a) May 1000/o owned and controlled foreign firms set up condominiumscorporations under RA 4726, il the land is leased?

b) lf the answer in the afiirmative, wourd a rease for a period of ninety_nine (99)years be allowable?

c) wourd a rease of the rand for a period of fifty (50) years renewabre foranother per'od of fifty (SO) years, be legally tenaOteZ

I share this rater view of my predecessor in office and r hereby adopt the same.You also profound, on the case when

corporation which owns the land on which tfwhether interests in units in the condominiuncommon areas thereof may be transfured to

80

The condominlum Ac{ does not forbid the transfer to aliens of an interest in a unitand the undivided interest in common areas in a condominium. tt should be noted thatonly a "separate interest' in a unit and an undivided interest in the common areas arewhat are transferred as a matter of a course to the grantee by virtue of condominiumgrant. (Sec. 2 and 5.) Moreover, paragraph (b) of section 3 defines'unit for purposesof the Act as "a part of condominium project intended for any type of independent usefror ownership, "and paragraph (e) of the same section in defining the term 'to divide realproperty" in the condominium project speaks of dividing the ownership thereof or otherinterest therein.'

But in this connection it should be stressed that section 5 of the Act contains apertinent prohibition. Said section reads:

'Any transfer or conveyance of a unit, or an apartment office or store or otherspace therein, shall include the transfer or conveyance of the undivided interests in thecommon areas or, in a proper case, the membership or shareholdings in thecondominium corporation; Provided, however, that there were the common areas inthe condominium projec{ are owned by the owners of separate units as @-ownersthereof, no condominium unit therein shall be conveyed or transferred to persons otherthen Filipino citizens, or corporations at lease sixty percent of the capital stock whichbelong to Filipino citizens, except in cases of hereditary succession. Where the@mmon in a condominium project are held by a corporation, no transfer orconveyance of a unit shall be valid if the concomitant transfer of the appurtenantmembership or stockholding in the corporation will be cause the alien interest in suchcorporation to exceed the limits imposed by existing laws.'

Applying the proviso in this section to the present case, the result would be sothat should it be a case covered by the first sentence of the proviso, no unit in thecondominium may be transferred to aliens or to corporation more than 40% of thecapital stock of which is owned by aliens; and should it be case covered by the secondsentence, the transfer to aliens of units in the project may be made only up to the pointwhere the concomitant transfer for membership or stockholding in the @ndominiumcorporation would not cause the alien interest in such corporation to exceed 40% of itsentire capital stock.

In resume and by way of emphasis, my conclusions on your queries are asiollows:

1. Any corporation which is owned 100% by a foreign firm may establish a"condominium corporation" under R.A. 4726 and set up a condominium project on landleased for a period not to exceed 10 years.

2. Vvhere the condominium corporation is a Filipino corporation which owns theland on which the condominium project is situated, R.A. 4726 allows the transfer to analien of an "interest" in a 'unit" in the said condominium, and of an "undivided interest" inthe common areas thereof, subject to the qualifications mentioned in the proviso ofsection 5 of said Act.

Very truly yours,

(SGD) VICENTE ABAD SANTOSSecretary of Justice

areasce of

81

ANNEX G

COMMISSION PROPERRESOLUTION NO. R.53

Series of 1982

RATIFYING RESOLUTION NO.45, S. 1982, OF THEEXECUTIVE COMMITTEE, APPROVING THE GRANT OFVARIANCE RELATIVE TO THE IMPLEMENTATION OFTHE DESIGN STANDARDS AND REQUIREMENTS FOR

RESIDENTIAL SUBDIVISION/CONDOMINIUM BY HSRC ANDOEFINING CASES FOR THE GRANT OF THE SAME

RESOLVED, as it is hereby resolved that Resolution No. 45, Series of 1982, ofthe Executive Committee of this Commission, approving the grant of variance todeviations from the Design Standards and Guidelines/Requirements for residentialsubdivisions and condominiums in cases enumerated and defined in Annex "A' heretoattached, pursuant to Section 't4 of the HSRC Revised Rules and Regulationslmplementing Presidential Decree No. 957, be ratified and adopted, as it is herebyratified and adooted.

APPROVED, this 16 April 1982 at Makati, Metro Manila.

SGD. ERNESTO C, MENDIOLACommissioner and ChiefExecutive Officer

CESAR O. MAROUEZCommissioner

SGD. ARTUROC. CORONACommissioner

SGD. RAYMUNDO R. DIZON. JR,Commissioner

ATTESTED:

SGD. EUFEMIO P. DACANAYCommission Secretary

SGD. JESUS N. BORROMEOCommissioner

SGD- ABER P. CANI.ASCommissioner

SGD. RAMON B. CARDENASCommissioner

SALVADOR P, SOCRATESCommissioner

82

Basis

Concept

Features

ANNEX "A''

VARIANCES

: Section 14 of the HSRC Revised Rules and Regulationslmplementing PD 957 provides for variances.

: Design Standards and Requirements for residentialsubdivision/condominium may be modified by theCommission in cases as hereby explained andimplemented by the Human Settlements RegulatoryCommission.

: Variances

Variances may be allowed only under the followingconditions:

a. in cases of large scale government residentialsubdivision or condominium prolects, such as NewTown, Planned Unit Development and the BagongLipunan Sites and Services Program;

b. in cases of housing in areas for priority developmentor urban land reform zones, including blighted areasand other identified projects under the Urban ReformProgram;

c. in cases of resettlement and rehabilitation projects asprogrammed by the Ministry of Human Settlements orany of its attached agencies;

d. in cases of social housing projects oriented towardslow income group as defined by the Ministry of HumanSettlements;

e. or, in cases where strict observance hereof will causeextreme hardship to the subdivision or condominiumowner/developer. Such extreme hardship to thesubdivision or condominium owner/developer isdefined and exPlained as follows:

1 . The location is unique and different from theadjacent locality, and because of its uniqueness'the owners can not obtain a reasonable return onthe residential subdivision/condominium proiects;

2. The hardship is not self-created;

83

4.

The proposed variance is due to existingpermanent structures (concrete/steel) and arenecessary to permit a reasonable use of theresidential subdivision/condominium;

The variance will not alter the essential characterof the location where the residential subdivision forwhich the variance is sought, is located, and willnot substantially or permanently conflict the use ofother residential subdivision/condominium in thesame locality; particularly those within one (1)kilometer radius thereof;

The variance will not give rise to unauthorizedreclassification of the approved residentialsubdivision/condominium plan (i.e. whether partialor full alteration of the plan), and will not adverselyaffect the public health, safety or general welfare,and is in keeping with the general welfare of thecommunity.

5.

84

Rc$$lic of ih! Phill0r'in6

Of{icc of thc PresidentHousing and Urban Development Coondinating Council

HOUSINGAND LAND USE REGULATORY BOARI)

RESOLUTTON 19. 72sSerieg of 2002

AMENDING THE REVISED IMPLEMENTING RULESAND REGULATIONS FOR PRESIDENTIAL DECREE NO.957 AND

BATAS PAMBANSA NO,220

WHEREAS, the HLURB Board approved the revised lmplementing Rules (lRRs)and Regulations for PD 957 and BP 22O through Res. Nos. 699 and 700,respectively, both Series of 2001 ;

WHEREAS, in the light of the mandates of the HLURB, this Board and theHUDCC jointly conduct continuing dialogue/consultation with stakeholders toharmonize. housing policies, rules and standards in support of recent policypronouncements of the administration;

WHEREAS, pursuant to existing laws, particularly PD 1308, otherwise known asthe Law Regulating the Practice of Environmental Planning Profession in thePhilippines, and the Rules and Regulations promulgated by the ProfessionalRegulations Commission pursuant therel+ the scope of practioe of environmentialplanning includes, among others the preparation of conceptual schemes and sitedevelopment plans for subdivision proiects for residential and other urban uses;and the signature of licensed environmental planners is required to be affixed onsaid plans;

!,UHEREAS, this Board fully supports the iminediate implementation of ExecutiveOrder No. 45, prescribing time periods for issuance of housing relatedcertifications, clearances and permits and imposing sanctions for failure toobserve the same;

WHEREAS, various groups of real estate developers have brought to - theattention of HUDCC and this Board issues relative to the implementation of therevised lRRs for PD 957 andBP 22O;

WHEREAS, upon thorough review and evaluation of the issues raised by thedevelopers' gioup, as well as the rational and basis of their concerns, this Boardfinds some of their requesb reasonable;

WIIEREFORE, be it RESOLVED, as it is hereby RESOLVED, that the followingamendments to the revised implementing rules and regulations tor PD 957 andBP 220 approved by virtue of HLURB Resolution Nos. R-699, and R-700, S. of2001. beAPPROVED.

e4'n

I

ii

HLURB Bldg., Kalayaan Avenue comer Mayaman Street, Diliman, Quezon City

(Page 2 of Board Rrr. No. 7 25 , s of 2oo2)

1. That, the price ceiling provision in the revised implementing rulesand regulations (lRR) for both PD 957 and BP 220 be deleted butstandards as prescribed therein shall remain;

2. That, the provision in the lRRs requiring subdivisionowner/developer to register as dealer be deleted and thatregistration as subdivision owner/developer be deemedregistration as dealer;

3. That, the allocation of area requirement for parks andplayground and community facilities prescribed for economichousing be amended to read as follows:

Rule l l , Section 5.C.1.b.1

b.1 Allocation of Area for Parks and Playgrounds

X X X

able 1: Parks and AllocationECONOMIC HOUSING SOCIALIZED HOUSING

Density(No. of lots/Dut

oer hectare)

Allocation(% of gross area

for PP-.)

Oensity(No. of lots/OU'

per hectare)

Allocation(% of gross area

for PP..)150 and below 3.5 % 150 and below 3.5 Vo

151 - 160 4 % 1 5 1 - 1 6 0 4 Y o161 - 175 5 % 161 - 175 5 %'176 - 200 6 ' / n 176 - 200 6 0/.

201 - 225 7 % 201 - 225 7 %Above 225 9 % Above 225 9V.

* Dwelling units" Parks and Playgrounds

Rule l l , Section 5.C.1.b.2

b.2 Area Allocated for Community Facilities

X X X

Table

Owelling

3: Comm Facilities AllocationECONOMIC HOUSING SOCIALIZED HOUSING

Density(No. of lots/Du.

oer hectare)

Allocation(% of gross area

for CF--)

Density(No. of lots/Du.

oer hectare)

Allocation(% of gross area

for CF..)150 and below 1.O 'l 50 and below 1,O

151 - 225 1 . 5 151 - 225Above 225 2.0 A6oue 225 2.O

**Community Facil it ies

W,,,r

(Page g of Board Res. No. 725, s.of2oo2)

7.

10.That, all provisions in the revised lRRs for both PD 957 and BP220 affected and/or in conflicuinconsistent with the abovecited amendments be revised and/or renumbered accordingly.

APPROVED 16;s 19't l6sy of June 2002, Quezon City

That, provision requiring planting of trees in areas designated asplanting striP be deleted,

That, the two (2) year vatidity of development permit prescribed

in the revised lRRs be increased to three (3) years;

of the reviged rules and regulations;

socialized housing Projects;

The requirement that structurat design consider future provision

of loft for socialized housing be deleted,

1988;

4 .

5 .

6 .

I

,

II

l

I

ROMUCommissioner andChief Executive Officer

'I/IIGHAEZ T. DEFENSOR

icio Commissioner

(Pagc 4 ot BoaK! rc" run 125. s ot 2ooz)

EDUARDO R. SOLIMAN. JR.Undersecretary, DILGEx-Offi cio Commissioner

B. SANTOS

Ex-Offi cio Commissioner

DPWHEx-Officio Commissioner

Commissioner

AJOTNT PR(IIECT OrTHP--* -RU LES ANI; STANDARD6 DEVEI'OTMENI^GROTIP^""ffI;*i;ntfcunicll'woRKING-GxollP

^'- iiN TIIE RDvIsroN oF THE IRR

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