REVISED IMPLEMENTING RULESAIYD REGUII\TIONS FOR PD 957

A JOINT PROJECTOF THII RULES AI\D STANDARDSDEVELOPMENT GROUP AND THE TECHNICAL WORKING GROUP ON THE REVISION OF THE IRR AUGUST2OOI

Rcruhlic d (tE thilinoir

C)ffice rhc President of

Housing andUrban Developmenr Coordinating Corlncil

HOUSINGAND LAND USEREGULATORY BOARD

BOARD RESOLUTTON NO. R Series of 2001

699

AMENDINGTHE RULES AND REGULATIONS IMPLEMENTING THE SUBDIVISION AND CONDOMINIUM BUYER'S PROTECTIVE DECREE AND OTHER RELATED I-AWS WHEREAS, the Housingand Land Use RegulatoryBoard (HLURB)is vested with rule-makingand standard setting functionsunder ExecutiveOrder No. 648, s. of 1984 as amendedby Executive Order No. 90, s. of 1986; I,VHEREAS, Section 36 0f pD 957 mandates HLURB to issue necessary standards,rules and regulations the effectiveimplementation the provisions for of of this Decree; WHEREAS, the powers of HLURB to approve subdivisionplans has been devolved to cities and municipalities pursuant to RA 7160, yet EO 71, series of 1993 stipulatesthat the exerciseof such devolvedpowers shall be in accordancewith the implementingrules and standards of PD 957 and other relatedlaws as promulgated HLURB; by WHEREAS, the signed Memorandum of Agreement (MOA) by and betweenHLURB and the Professional Regulation Commission(PRC)recognizes the need to monitor the practice of licensed professionals in subdivision and projects; condominium WHEREAS, the Housingand Urban Development Coordinating Council (HUDCC) issued Council Res. No. 01, Series of 2000, approvingthe definition of loan ceilings/limits housingpackages; of WHEREAS, the Board received clamor from the Regional Offices, private sectors, standards implementors and other stakeholders to review and reexamine the existing policies, rules standards and procedures pertinent to the issuanceof subdivision permitsand licenses; and condominium development WHEREAS, the Board finds it necessary to harmonize the policies, rules, standardsand procedures with recentissuances;

HLURB Bldg., KalayaanAventrecomer MayamanStreet,Diliman, QuezonCity

(Pag of Boa.dRes.xo. n -6 2

9J

be WHEREFORE, it , RESOLVEDas it is hereby RESOLVEDthat the as to PD Rulesand Regulations lmplement 957 , aftached Revisedlmplementing Annex1. be APPROVED. 161"20dJt6sy August of 2001, Quezon City. APPROVED,

TIICHAE|rT. DEFENSOR

.CALIDA

ROiIULO Q. M.,FABUL

6rsecretary ,

Commissioner and
ChiefExecutive Officer

gmh* EDUARD/{

Undersecretary, DrLql'/

Commissioner

Commlssioner

As'5i5tant Secretary, DPWH

hffE#f'='^

NSANG

cretary

TABLE Of CON'TENTs
TITTE
RULE I. DESIGN MINIMUi' STANDARDS 1 24
ZY

PTGE

Section Design 1. Standards GuidelinesResidential and for Subdivision Projects Standards Guidelines Residential and for Section Design 2. Condominium Projects Projects of Existing Structures to Condominium Section Conversion 3. Section Variances 4. RULE II. PLAN APPROVAL SUBDIVISION OF

29

Plan forApprovalSubdit Development of ision Section Application 5.

30

RULE m.

PLAN APPROVAL CONDOMINIUM OF 34

Plan forApprovalCondominium of Section Application 6. RULE IV, OF REGISTRATIONLICENSINGSUBDIVISION AND PROJECTS AND CONDOMINIUM

forRegistration Section Application 7. for to Section ApplicationLicense Sell 8. Section Notice Publication of 9. of Section CertificateRegistration 10. to 11. Section LicenseSell Bond Section Performance 12. V. RULE BROKERS ESTATE DEALERS, REGISTRATION OFREAL AND SALESMEN

?A

40 40 41 41 41

{or and ofBrokers Salesmen Section ApplicationRegistration 13. of Registration Section Certificate 14. 15. Section Bonds

42 42 43

TITTE
VI. RULE tIISCELLANE0US PRoVISIONS

PIGE

Section Definition 16. ofTerms Section Submission 17. of Semestral Reports Operations on Section Display Certificate 18. of ofRegistration orLicense Sell to Section Lost Destroyed 19. or Certificate RegistrationLicense Sell of or to Section Advertisement 20. Section Time Completion 21, of Section TransferOwnership 22. of orChangeName of Section AlterationPlans 23. of Section Non-forfeiture 24. ofPayments Section Registration 25. ofConveyances Section Mortgages 26. Section Realty and 27. Tax Other Charges Section Complaints 28. Against Owners, Developers, Dealers, Brokers Salesmen and Section Administrative 29. Fines Section Criminal 30. Penalties Section ldentification SubjectSale 31. ofLot of Section Broker/Salesman 32. asWitness Sales to Section Fees 33. Section Applicability 34. Section Transitory 35. Provisions Section Separability 36. Clause Section Effectivity 37.

43 46 46 46 47 47 47 47 48 48 48 48 48 48 48 49 49 49 49 49 49 49

TIIIE
OF LIST TABLES

PAGE

1. Table 2' Table 3. Table 4. Table 5. Table 6. Table 7. Table I. Table and 1 Hectare Above of HierarchYRoads Righfof-WaY Road Strips Sidmalks ot-ptantlng and WiOtn Lot Minimum Area Lot Minimum Fronhge

6
I

iilffi;;.ign

Pgect Subdivision a for Residential Sia-noaros

8 10 13 14 18

PD Under 957

OF LIST FIGURES
I

v
q

Road Main t Along Public

11 12
,tq

t forRowhouses

ANNEXES A Annex Decree Presidential No 957 Decree Presidential No 1216 Sec' lmplementing 31ofPD957 and Rules negulations bY asAmendedPD1216 Act Condominium The (Variance) No. Resolution R-53 50 65 68 82

B Annex lnn.* C

lll

REVISED RULESAND REGULATIONS THE IMPLEMENTING SUBDIVISION AND GONDOMINIUM BUYER'SPROTECTIVE (pD DECREE 957)AND OTHER RELATED LAWS
Pursuant ArticlelV Sec{ion c) of Executive 5 to OrderNo. 648 the following rules are hereby promulgated the Housingand Land Use Regulatory by Board (HLURB) implement to Presidential DecreeNos. 957, 1216,1344andotherrelated laws applicable open marketand mediumcost subdivision to and cpndominium projects.

RULEI MINIMUM DESIGN STANDARDS Section1. DesignStandardsfor Subdivision

projecisshall conformwith the follorving Residential subdivision minimumdesign standards, local government applicable units'(LGU)zoningordinances well as as pertinentprovisionsof the National Building Code if project is with housing component:

A. Site Griteria
'1. Location Conformity ZoningOrdinance/Comprehensive UsePlan with Land Subdivisionprolects shatl be located in residential zones or other areas appropriate residential for uses.lf thereis no ZoningOrdinance approved or Comprehensive Land Use Plan, the dominantland use principleand site factorscited hereinshall be used in determining suitability suitability a of pro1ect. projects (e.9. housing Subdivision supportive other majorurlcan of activities for industrial workers) may be allored in area zoned for the said urban activities. 2. PhysicalSuitability projectsshall be locatedwithin suitablesites for housingand Subdivision outsidehazardproneareasand protection areasas provided by pertinent for laws. Critical areas(e.9,areassubjec{ flooding, to landslides thosewith and unstable mustbe avoided. soil) The site shall be stable enoughto accommodate foundation load without grading cufting excessive earthmoving, or andfilling.

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-ri'

3. Accessibility to The site must be served by a road that is readilyaccessible public lines. Saida@essroadshallconform wrththe standards set transportation of hereinto accommodate expecteddemandcausedby the development proJect approved withoutthe be the area. ln no case shall a subdivision may be necessary accessroad/right-of-way. accessroadright-of-way Said unit. constnrtedeitherby the developer the localgovernment or

B. PlanningConsideratlons
1. AreaPlannlng projects the Planning designing subdivision and of shalltake intoaccount following: welfare ofthe futureoccupants: a. safetyandgeneral b. adequate, safe, efficient and integrativeroad circulation system everylot therein; servicing allocation landusesfor diversity and amenity: c. judicious of d. preservation site: of sitingor orientation lots; e. proper of with f. harmony existing proposed and development thevicinity; in g. applicationof workable design principlesor parameters a well for planned self-sustaining and environment. Whena developer planner (PUD) submits Planned a or UnitDevelopment of pro1ect, layout shall likewiseconform to the stiandards for type the projects. residential/condominium a. Openspaces Open spaces shall conformto the provisions P.D. 1216 and its of implementing andshallinclude following: rules the a.1 Streets- adeguateand safe means of vehicularand pedestrian for circulation easements utilities planting and strips, shallbe and orovided. a,2 Walks - paved walks shall be providedto the living units ftom parking and streets, spaces fromliving units playareas to a.3 Parksand playground - suitablerecreational area(s)shall be allocatedwithin the subdivision. Where applicable, hierarchy a of
41 , "f

such recreationalareas may be provided for, such that, a strategically located main park area is supplemented or complementedby one or more smaller pocket(s)or areas for use. These areas must be accessibleto living units recreational and free from anv form of hazard or risk. Said parks and playgrounds shall be clearedand free from any debris.Parksand playgrounds muchas possible shallbe at streetlevel. as and b. Facilrties Amenities

Areas requiredfor subdivision facilitiesand amenitiesshall be judiciouslyallocatedin accordance with the provisionsherein soecified. c. Density Density of subdivisionprojectsshall conform with the residential of set densities forth in the zoningordinance the city/municipality is a mixtureof housingtypes whereprojectis located. Wherethere row (such as singledetached, house' town withinthe subdivision unitsin of thetotalnumber dwelling shallinclude etc.), density houses, for plusthe total numberof lots intended single structure multi-storey houses. andsemidetached 2. Site Preservation a. Slope slopeto allowrainwaterto be grade shallhavea desired Thefinished an into streetdrains. Wherecut and fill is necessary, channeled in to gradeshall be aftained preventany depression the appropriate area. thatwill prevent in shallbe executed a manner and ditching Grading properties. of or erosion flooding adjoining
D,

of Preservation SiteAssets or Suitabletrees with a caliperdiameterof 200 millimeters more' of groundcoverper Department Environment shrubsand desirable presewed' Where a {DENR)rules shall be and NaturalResources and shallbe in quality soilexists the site,it shallbe banked good top parks and yards, playgrounds, grades of [reservedior finishing garoen area. Cover Ground usedfor ground materials plants otherlandscaping and shrubs, Grass, use for appropriate its intended andlocation' cover shallbe of a variety coverof the area. planted as to allowwell-tended so Theyshallbe

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Easements provisions projects observe conform thefollowing to and shall Subdivision by: as oneasements mayberequired
Code, waterbodies; on 51 lV, Chapter Section of TheWater (NPC), transmission lines; on Power Corporatton o . National fault on of per No. PHIVOLCS Resolution 515,Series 1992, identified traces; right-of-way: entities' public and companies other utility o . Other roads national abutting govemment unitsfor projects e . National/local (primaryroads) where adequateeasementshall be providedfor, areas; including loading unloading and
f

laws. Otherrelated

4. Girculation and of to Depending the classification roadsadjacent the subdivision on of shouldresultinto a hierarchy the size of the projectsite, roadnetwork as functions should and define and servethe subdivision one integrated unit. a. Roadscomplemented pathwalks with withinthe subdivision mustbe so aligned facilitate to movement and to link the subdivision the to property. nearest majortransportation routeandioradjacent Whenever thereare existing roadswithinthe project whichshall site plan,these shall be improved be made part of the subdivision in accordance thestandards forthherein. with set b. Streets should conform to the contours of the land as far as oracticable. projectadjoinsa developed Wherea proposed property, roadswithin the said projectshall be connected/integrated/alignedexisting with ones. project Wherea proposed property, provision adjoins undeveloped a for futureconnection shallbe mandatorv.
c. As far as practicable, streets shall be laid out at right anglesto minimizecriticalintersections such as blind comers. skewjunction, eic. C. Roadsshallconformto soundengineering practices.
I

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pro1eds e. Subdivision shallcomplyto the pertinent requirements Batas of Pambansa 344,otherwiseknownas the Accessibilitv No. Law. 5. Installation StreetNameVSigns: of The developershall bear the cost of installation street namesi/signs of coincident the construction streets. with of

C. DesignParameters
1. Land Allocation proiects Foropen maket and medium with an areaof one cost subdivision (1) hectareor more, the percentage (o/o) allocationof land shall be as follows: a. saleable area- maximum 7Oo/o the grossarea of of b. non-saleable - minimum 307o thegross area of of area The followingnon-saleable with PD area shall be observed consistent N o .1 2 1 6 : b.1 ParkVPlaygrounds for Allocation arealor parksand playgrounds ol shallbe mandatory projectsone (1) hectare or more and shall be deemed nonwithinthe area.The sameshallbe strategically located buildable parksand playgrounds project. for subdivision Area allocated shall in no casebe lessthan 100Sauare meters. for shall be as The percentage requirement parkVplaygrounds follows: Table1. Parksand Playgrounds Allocation DENSlTY (No. Lots/thvelling of Unit PARKS/PLAYGROUNDS in Area of Allocation Percent Gross

Per
20 and below 21-25 26-35 36-s0 5 1- 6 5 Above65

(w

3.5 4-0 5.0

b-u

7.0 9.0

4,.

I*

b.2 CommunityFacilities

Mandatory provision of areas for communityfacilities, such as neighborhood multi-purpose centerbothfor openmarketand medium cost housingprojectswith area one (1) hectareand above. These areas are non-saleable. However, the developer may provide additionalareas for communityfacilitiessuch as schools and commercial/reticentersin excessof the mandatory il requirement set forthin thisrulewhichshallbe deemed saleable. The useof the said area shall be indicated the plan and shall be annotated the tiile in in thereto.(Referto Table!) f able 2. Facilities According to the Number of SateabteLots/ Dwelling Unitsfor Subdivision Projects hectare t and Above
No. of Saleable Lots and/0r Dwelling Unit Neighbor' Convenience hood Stores & Element High MultiOther ary School'* Tricycle Terminals-Purpose Commercial School-Cenler* Centers..

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

Mandatory non-saleable Optional saleable when provided the planthe same shallbe but in annotated the title in d,l ,
-/'

b.3 Circulation System of b.3.1 Hierarchy Roads The circulation systemfor open marketand mediumcost projects housing shallhavethefollowing hierarchy roads: of Table3. Hierarchy Roads of Project Size Range (Has. )
2.5& below Above2.5- 5 Above -10 5 Above - 15 10 Above15- 30 Above30 -oo-do-oo-

OpenMarket
major, motor minor, court,alley maior, collector, minor, molorcourt, alley

Cost Medium
major,minor, motor court,alley -oo-

major,collector, minot, motor court,alley do-oodo-

with b.3.2 Minimum roadright-of-way be in accordance shall of thissection. ln no case shalla majorroadbe less than 10 meterswhen connection. roadand/or future as usedas mainaccess the as or a) MajorRoaci a street roadlinking siteand serves the main traffic artery within the project site and shall the axisof the property. traverse longer b) CollectorRoad - a street or a road that services pedestrian/vehicular traffic from minor roads leading to major roads. is direct c) Minor Road - a roadwhichmainfunction to provide access lotsandother to activity centers. d) MotorCourts- shall have a right-of-way not less than 6 of for sufficient space for meters in width with provision vehicular turn aroundin the form of a cul-de-sac, loop, branch "T",witha maximum iength 60 meters of inclusive or of terminal. e) Service Roads - roads for whichprovide the distribution nf traffic individual andactivity centers. among lots

4"'

f) Alley - a 2-meter wide walkwaywhich shall be used to break a block and to serve pedestriansand for emergency purposes- lt shall not be usedas accessto property. (ROW b.3.2 RoadRight-of-Way The conesponding right-of-way hierarchy roadsshall be for of as ficllows: Table4. Road Right-of-Way

Projec{ Size (Hectares)

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

Motor Court Alley

Right4f- Way(Row) (Meters) Medium Cost OpenMarket Maior Collector Minor MaiorCollector Minor 108 108 12 108 JO 8 12 108 12 10 8 12 108 10 12 8 15 12 10 12 10 8 .tE 15 12 10 12 10 ROW Caniaoervav ROW Cariaqeurav
D

o
z z

Note: 6-mseMce a road, both ends connectinga to minor oad, shall be allored br blocks not excedinq meters. 60 a) Majorroadsshall maintain unifcrmwidth of roadright-ofa way. Tapering roadwidthshallnot be alloryed of wherethe road rightof-wayis wider than the prescribed for stiandard the interconnecting of the proposed road subdivision. projectmust secureright-of-way the b) Interiorsubdivision to publicroadandthe right-of-way nearest shallbe designated as interconnecting witha minimum road widthof 10 meters. Thisfact shallbe annotated the title of said roadlot and on mustbe donated and deemed tumedoverto the LGUupon completion the saidinterconnecting of road. (SeeFigure1)

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EUBO.l

su80.2

suBo.t

gugD.4

Road Figure1. Interconnecting

projects mainpublicroadmustprovide abutting c) Subdivision in a setback $meter deepby S-meter lengthat bothsides of loadingand entrance accommodate to of the subdivision (see 2). of unloading passengers Figure

ITA|NRIEtG ROAO

Figure2. SetbackRequirement Along MainPublicRoad *L '.ft

I

d) Subdivision projects shall have provision for future expansionwhere applicable, designating by the major roads, as prescribed in Sec. 1.C.b.3 as the 2 for intercrnnecting road right-of-way both open marketand proJects. medium costhousing b.3.3 Planting Strips Planting strips shall be observed with the following road soecifications: Table5. Width of PlantingStrips and Sidewalks ROADWIDTH (m)
15.00 1 20 0 10.00 8.00 6.00(Service Road)

OPEN MARKET
Planting Side{ralk SlriP (m) (m.) 1.30 | 1.20 0.80 1.20 0.80 1.20 0.40 0.60 OPIIr )nal

MEDIUM COST Planting Side{ralk Strip (m) {m) 1.30 120 0.80 | .zu 0.80 1.20 0.40 0.60 ootn )nal

b.3.4 RoadPavement All roadsfor bothopen marketand mediumcost housingprojects pavernent shallbe pavedwith eitherconcrete asphalt. or Concrete shallhavea minimum thickness 150millimeters a minimum of and compressive strengthof 20.7 Mega Pascal(Mpa) while asphalt shallhavea minimum thickness 50 millimeters of pavement Sidewalk shallhavea minimum compressive strength of 17.2MegaPascal. b.3.5 RoadIntersection Roads should intersectat right angles as much as practbable. Multipleintersections along major roads shall be minimized. Distance betweenoffsetintersections shouldnot be less than 20 meters from corner to comer. ,ntersections should o@ur on straightsectionsinsteadof on curved sectionsof road and on grades gentle withclearsight distance. Road intersections shall be providedwith adequatecurb radii principles. Figure consistent sound with (see engineering 3)

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cul- oE- sAc

7 : cuRE Aotus R

s,.

Fl9ur6 3 : Curb Rldai Dlmension

II

b.3.6 RoadGrade/Slope Crownof the roadsshallhavea slopeof not lessthan 1.5 percent, while curbsand guttersshall not be less than 7 peroentto 9 peroent(see Figure 4). Gradesand verticalcurbs shall conformto the design requirements the Department public Works and of of Highways (DPWH).
FterrcF yvAY C A R R IA G E

y',

t"/

o9/
1.s"t"W

ta----

Flgure 4. Road Grade/$lope 2. Lot RequiremefltA a. Lot Layout: The foflowingshail be consideredwhen prottingthe subdivision prgect: a-1 Preservation site assetsand propersitingorientation rots; of of blending with existingand proposed development the vicinity; in ano a.2 Application workabledesign principlegparameters a well of for planned environment. To aeommodatea wider rangeof clientele termsof incomelevel (in and to provide diversity in housing design in a ..lifestyle), .and subdivision projecl, the owner/developeiis encouraied to ailocate areas for vanous housing types such as singl+.detached, dupler/single aftached rowhou$s. and

4"'

Lot b. Minimum Area underopen market lot The minimum areafor varioustypesof housing projec{shall be as follcws and mediummst housing Table6. MinimumLot Area OF WPES HOUSING a. SingleDetached b. Dupler/SingleAttached c. Rowhouse COST MARKET MEDIUM OPEN (Sqm.l (Sqm.) 't20 96 60 100 80 50

aftachedandlor rolhouse as Saleablelots designated duplo</single withhousing units. lotsshallbe provided Price of saleablelots intendedfor singledetachedunits shall not exceed40 percentof the maximumselling price of house and lot pacKages. Lot Design by suchthattheyare not bisectecl lots c.1 Saleable shallbe designed ways and utility politicalboundaries, water courses,drainage lines. accessroad. c.2 A lot shallbe servedby an independent possible, frontage elevation shallbe at streetlevel. lot c.3 Whenever to be c.4 Lotlinesshallpreferably madeperpendicular street lines. shapedlotsshallbe avoided' c.5 Deeplotsand inegularly widthfor sideyardswithadequate c.6 Lotsshallbe planned risks. against c.7 Lotsshallbe protected c.8 Lots shall not be laid out if potentialrisks exist e.g. erosion, faultlines,etc. flooding, slides,

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d. Lot Frontage The minimumfot fontages ficr vario.rstypes of housing under open projects market and medium costhousing shallbe as follows: Table7. MinimumLot Frontage TYPES HOUSING/LOT OF 1. Single Detached a. CornerLot b. Regular Lot c. lnegular Lot d. Interior Lot 2. Duplex/Single Attached 3. Rowhouse (m.) FRONTAGE 12 10 3 I
4

The numberof rowhouses shall not exceed20 unitsper block/cluster but in no caseshallthisbe bevond100metersin lenoth. 3. Lengthof Block Maximum lengthof blockshallbe 400 meters, however, blocksexceeding provided an alleyapproximately mid-length. 250 meters shallbe with at 4. ShelterComponent a. Minimum floor area for open market housingshall be 42 square meters and 30 squaremeters medium for costhousing. b. Minimum levelof completioncomplete for house all typesof dwelling unitsbased thesubmitted on specifications. Provision firewallshall be in conformity of with the Fire Code of the Philippines and mandatoryfor duplexeVsingle aftached units and everyunitfor rowhouses (refer Fig.5). to

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=
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oa

PLAN

=
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for Figure5. FirewallRequirement Rowhouse

Yard/Setback and unitsbothfor openmarket medium of setback dwelling Theminimum Building Codeof the National projects to shallconform the costhousing Philippines. 6- WaterSupply System Rules: a. Specific The subdivisionwater supply shalt be mandatoryor obligatorily system public watersystemor community to @nnected an appropriate meet the total daily providedthat the water supply is enough to population. of requirements theanticipated community When neithera publicwater system,nor an acceptable is available,a centralizedwater supply system shall be system provided that: accepted,
a.1 The technical consultant of the developer shall determine the location and discharge capacity of the water supply source(s) withinthe subdivision; $^.r
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a.2 The permitto drill well(s) or tap water lines fiom the appropriate govemment agencies shallbe obtained; a.3 The water source shall be sufiicientto meet the daily water requirements everyhousehold the subdivision; of in a.4 No hazards shall exist in the immediate virjnity of the vvater source that mightreduce pollute supply; or the a.5 Waterdistribution shallbe assured. Accordingly,everywater serviceentrarrceor @nneclionshall be provided with a pressure.compensating, self-regulating, constant flowvalveor fittingto ensureequitable distribution water,water of and powerconservation, and long-term savingson operational costsof the water system. a.6 Eachsubdivision shallhaveat leastan operational deegrvell and pumpsetswith sufiicient capacity to provide Average Daily (ADD)to all homeowners. Demand b. Water Requirement - Every dwellingunit shall be served by an individualsupply of water suffcient to meet the total hourly domestic needsof everyhousehold any 8 hourperiod. for TheAverageDailyDemand(ADD)for bothopenmarketand medium cost housing projects is 150 liters per capita per day (LCPD) household connection. (PerBoardResolution 506,seriesof 1992) No. c. Fire Protection Demand - Provision fire protection ficr shallcomply withthe requirements the National protection of Fire Code. d. WaterTank Capaoty - 20%ADD plusfire reserye. e. Pipes - Pipesshallconform the standards to required Metropolitan by Watemorks and SewerageSystem (MWSS) and/or Local Water Utilities Administration (LWUA). 7. Electrical Porrer Supply System Mandatory individual household connedionto primaryand/or alternate sourcesof power. Installationpracfices,materialsand fixtures used shall be in accordance Wth the provisions the Philippine of EleclricalCode andor locat utility company. Provision streetlightingper pole is mandatory SGmeterdistance of at andeveryotherpoleif distance lessthan50 meters. is Electrical bills for streetlights shall be proportionately shouldered the by

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(COC)and usersthereofprior to issuanceof Certificate Completion of tum-over openspaceto LGU. of SewageDisposal9ystem The salage disposal system for open market and medium cost projects subdivision shalleitherbe any of the follor/ing: a. Connection Community to Sewer System publicor community Connections shallbe madeto an approved sewer system,subiectto the requirements provisions the Sanitation and of Codeof the Philippines other and applicable andregulations. rules b. Septic Tanks Where communitysewer system is not available, se\flageshalt be disposed andtreated individual of in septictank6. Conskuction individual of septic tanks shall conformto the design standards Sanitation (PD of Codeof the Philippines 856)ahd Natienal Plumbing (RA Codeof the Philippines 1378). 9. DraindgeSyrtem The draihdgesystem of the subdivision shall conformto the natural drainagepatternof the subdivision site, and shall drain into appropriate waterbodies publicdrainage or system. In no caseshalldrainage outfalls drain into a privatelot. lts layout shall conformto sound engineering principl0s design/ certified a dulylicensed by civil/sanitary engineer.Drain practices. linesshallbe of durable materials approved and installation p@ects,underground Forbothopenmarket and medium costsubdivision drainage systemshallbe properly engineered environmentally and sound provided and shall be with adequateReinforced ConcretePipes(RCP), catch basinsmanholes, inletsand crossdrainfor efficientmaintenance. pipes Minimum drainage diameter shallbe 30 centimeters. 10. GarbageDisposalSystem The subdivision shall have a sanitrary eflicientrefusecollection and and disposalsystem,whether independently in conjunction or with the garlcage municipaUcity collection disposal and services. The SummarizedPlanningand Design Standardsfor Open Market and Medium CostSubdivision Projects presented Table8. is in

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TABLE8. Planningand DesignStandards For A Residential SubdivisionProject UnderPD957 PARAMETERS 1. Project Location OPENMARKET HOUSING MEDIUM COST HOUSING

Withinsuitable sitesfor housing Withinsuitable sitesfor housing and outside potential hazard and outside potential hazard proneand protection proneand protection areas. areas.

2. Land Allocationfor projects t hectareand above.

I

a. Saleable area b. Non-saleable area

(maximum) a. 7O% b. 30%(minimum)

b.1 Areaallocated Mandatory for per allocation parksandplaygrounds tabulation for parKs and below: playgrounds for projects ha. & t Density Percentage of aoove. (No. Lots Dwelling of or Unit Gross Allocated Area for

Per Hectare)
20 & below 2 1_ 2 5
zo-Ja

parks playgrounds and

3.5o/o 4-O%

36-50 5 1- 6 5 Abcve65

5.0% 6.0% 7.0% 9.0%

Innocase anarea shall allocated parks playgroundsless for and be

than100sqmandthe sameshallbe strategically located within the subdivision. b 2 Areaallocated Mandatoryprovisionof areas for communityfacilitiessuch as for community neighborhood multi-purpose projects centerfor housing witharea 1 facilities hectare above. Theseareasare non-saleable. and However, the provideareas for community developer may facilities such as schoolsand commercial centersin excess of the mandatory requirement forthin this rulewhichshallbe deemed set saleable. The use of the said area shall be indicated the olan and in (Refer Table 1 ) annotated the titlethereto. in to b,3 Circulation System Observe hierarchy roads of
I8

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PARAMETERS
?

OPENMARKETHOUSING 120sqm 96 sqm 60 sqm

MEDIUM COSTHOUS]NG 100sqm 80 sqm 50 sqm

Minimum Areas Lot a. SingleDetached b. Duplex/SingleAttached c. Rowhouse

lots shall be lots designated duplexand/orrowhouse Saleable as provided withhousing components. units shall not for Priceof saleablelots intended single-detached price of house and lot exceed 40% of the maximum selling pacKages. 4. Minimum Frontage Lot 4.1 SingleDetached a. cornerlot lot b. regular c. inegularlot lot d. interior Aftached/ 4.2 Single DuPlex 4.3Rowhouse 5. Length Block of

12m 10m 6m 3m 8m 4m Maximum length of block is 400 meters, however, blocks exceeding 25O meters shall be provided with an alley at approximatelymid-length.

6 . RoadsRightof Way

size range Project 2.5 has.& below A b o v e 2 . 5 -5 h a s . A b o v e 5- 1 0 h a s . Above10 - 15 has. Above15 - 30 has. Above30 has.

Road MajorRoadCollector MinorRoad road CollectorMinor Major 10m 12m 12m 12m 15m 15m 1 0m 10m 10m 12m 12m 8m 8m 8m 8m 10m 10m
10m 10m 12m 12m 12m 15m 10m 10m 10m 12m 8m 8m 8m 8m 8m 10m

A 6.0 meter service road, both ends connecting to a mlnor road, shall be allowed for blocks not exceeding60 meters.

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PARAMETERS MotorCourt Alley

OPENiJIARKET HOUSING
ROW
o

MEDIUM COSTHOUSING
ROW 6 2 CARRI..AGEWAY
c z

CARRIAGEWAY

Alleyis a 2-meter wide walkway whichshallbe usedto breaka purposes. blockand to serveboth pedestrians for emergency and It shallnot be usedas access property. to (ROW)of majorroadsshallbe increased project Right-of-Way as sizeincreases.

Major roads shall maintaina uniformwidth of road right-of-way. Tapering roadwidth of shallnotbe allowed, where roadrighfofthe way is widerthanthe prescribed standard the interconnecting for roadof theproposed subdivision. NOTE: 1 Interior project secure subciivision must public rightof-waythenearest to road and right-ofway bedesignated interconnecting witha minimum the shall as road width 10mete$. fact of This shalt annotatedthetitle said be on road and of lot must donated deemed be and turned totheLGU over upon comDletion said oi the interconnecting Figure (See road. 1). 2 Subdivision projects abutting public must provide setback 3main road a of meter deep 5-meter length both by in at sides thesubdivision of entrance to accommodate and ioading unloading ofpassengers.Figure (See 2) prqects have 3.Subdivislon shall provision future for expansion applicable, where bydesignating a minimum interconnecting road rightof-way meters. of10
a

Hierarchy Roadsper of Proyect Size Range 2.5 has.& below A b o v e 2 . 5- 5 h a s . Above5 - 10 Above 10 - 15 has. Above .l5 - 30 has. Above 30 has.

major, minor. motorcourt, alley major,minor,motorcourt,alley major, collector, rninor, molor court, a'ley
_do_ major,collector, serviceroad, mtnor,motorcourt,alley _do_ _do_do_

-dc-Co-oo2A

4"'

PARAMETERS 9. Roads Specifications Strip(PS)* a. Planting (SW) Sidewalk ROW 15m 12m 10m 8m Road) 6 m (Service
b. RoadPavement

HOUSING MARKET OPEN

COSTHOUSING MEDIUM

PS 1 . 3m 0 . 8m 0 . 8m 0.4m optional

sw
1.2m
1.2fi

1.2n 0 . 6m optional

Major Minor MotorCourt Sidewalk Alley

Concrete/Asohalt ConcreteiAsphalt Concrete/Asohalt Concrete/Asphalt Concrete/Asphalt

Concrete/Asphalt Concrete/Asphalt ConcreteiAsphalt Concrete/Asphalt Concrete/Asphalt

of thickness 150 shallhavea minimum road pavement Concrete of strength 2A7 MPa compressive mitf imetersand a minimum while roads may either be concreteof same thicknessand of thickness 50 or strength asphaltwith minimum compressive millimeters. of strength compressive shallhavea minimum Sidewalk oavement 17.2MPa. l0 WaterSupply Mandatoryconnectionto appropnatepublic water system; system. watersuPPlY centralized and deepwell shallhaveat leastan operational Eachsubdivision provide Average Daily pump sets with sufficient capacity to (ADD)to all homeownersDemand Water a. Minimum Requirement Supply b. FireProtection Demand connection per per 150liters capita dayfor household

of with the requirements shallcomply for Provision fire protection the FireCodeof the PhiliPPines.

-f,
2l

l'

a.2 The minimum area for a singlepark/playground be 50 square shall meters.lncrements 3.00squaremeters everyadditional of licr family type in excessof 10 unitsshallbe added. dwelling a.3 Parks/playground otherrecreational or fucilities may not be required if the condominium locatednot morethan or 800 metersfrom a is publicly parUplayground/or recreational accessible other facilities. a 4 Parks/playground shall be properlylandscaped accommodate to bothactiveand passive activities. a.5 Parks/playground may be accommodated the yard/s provided in suchyardsare adequate usable park. and as (optional) a.6 Otherfacilities pool, such as tenniscourts,swimming etc. may be integrated with the parktplayground. ParkingSpaceRequirement b.1 ForResidential Condominium Units . b.1 1 The parkingslot requirement residential for condominium pro1ecl shall be in accordance with the provisionsof the National Building Codeof the Philippines. b-1-2 Off-sitepa*ing may be allowed in additionto the on-site parkingprovided parkingarea is part of that the designdted the projec{ and provided further that the required distance shallbe in ao@rdance with the National Building Codeof the Phitippines. b.1.3 Compliance with additionalparking spaces as required by localordinances shallbe mandatory. b.2 ForCommercial Condominium Units parking requirement b.2.1 The minimum slot shallbe in acoordance with the provisionsof the NationatBuildingCode of the Philippines. b.2.2 Off-site parking may be allorvedin additionto the on-site parkingprovided parkingarea is part of that the designated the project the projectis withinthe commercial or subdivision where common parking area is part of the approved subdivision plan and provided further that parking arrangements explicitly are indicated the contract saleof in of propertyto be developed. Off-site parking shall not be located200 metersawayfrom condominium project.

+.

26

c. AccessRoads and Roads shall serve every building,parkingspace, parUplayground points).Minimum or roads righfofpoints (e.g.garbage collection service and thereofshallbe the carriageway the 6 way shallbe I meters, meters strip. as sideu/alk/planting shallbe developed remaining meters 2 with a minimum circulation for Pathwalks shall be provided pedestrian widthof 1.2meters. with shallbe in accordance an<.| of Construction roads,sidewalk pathwalks subdivision.Spacefor tum aroundat dead of the standards residential provided. endshallbe by shallbe provided publicstreet accessto the property Direc{vehicular or alley. or to meansof accessshall be provided each dwelling, An independent adjoining group of dwellingsin a single plot, without trespassing for must be independent each properties. Utilitiesand servicefacilities dwelling unit. meansof accessto each livingunit shallbe provided An indeoendent passing unit through yardof a living or anyotheryard. any without of c.1 Hierarchy Roads prgects,the hierarchy roadsshallbe of condominium For horizontal for standard requirements the same as the minimum design subdivision Prolects. c.2 Pavement All roads (major, minor, motorcourt)for both residentialand commercial condominium projects shall be paved with concrete/asphalt. and Basic Facilities Services Area) Area(Laundry/Drying d.1 Service laundry anddryingareasshallbe provided. Adequate Where such serviceareas are held in common,they shall have and kept away ftom fencedor screened outdoorlocations, suitable entranc frontyards. or livingrooms, shallconform and drainageutilities d . 2 Watersupply,power,swerage of to the requirements a subdivision.

+,

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d.2.1 ReservoirMater Tank Formulti-storey buildings lf the heightof the building requires waterpressure excess in of thatin the mainwaterline, water a tankshallbe provided. Tank shallalso be required the peak drawnshouldreduce if the pressure on the highest usable floor to less than 0.06 Mpa - the minimumpressurerequiredfor satisfactory operation fixtures, particularly of thosewrlhflushvalves. d.2.2 Capacity 2oo/o Average plusfirereserye DailyDemand d.3 Mechanical Equipment andService Areas d.3.1 Provision of elevators shall conform to the olans and specifications the duly licensed architecUengineer of who shalldetermine requirement elevators the for including the number of cars. capacity,safety features and standards, elevatortype, speed and locationin relationto the over_all design useof thebuilding; design and the architecUengineer shallcertifyunderoath thatall the components thereof in are accordancewith the National Building Code of the Philippines, Accessibility the Law and national industry stahdards otherpertinent and laws. d.3,2 Compliance the provisions the Fire Code of the to of Philippines, be mandatory. shall d.4 Refuse Collection/Disposal Centralized garbagedepository area and efficientrefusecollection anddisposal services shallbe provided whether independenily in or conjunctionwith the city or municipality garbage collectionand disposal services_ shallconform the provisions the Sanitation lt to of Code of the Philippinesand its lmplementingRules and Regulations/pertinent referral codes. FloorAreaRequirements a. Single-Occupancy Unit Singfeoccupancy unitsshallhave a minimum floor areaof 1g square meters,however, net floor area of 12 squaremetersmay be allowed a provided that: a.1 Theseare intended students/employees/workersprovided for ano further thecondominium that project whichthese be integrated to will is withinhighlyurbanized areas.
28

'x4 ,

1"t"
I

B. At least2 copiesof vicinity map indicating adjoining landuses,access, as the property facilities utilities least fromthe wellas existing at within 500 meters and boundaries the project, drawnto scale and duly signedand sealedby a of geodetic licensed engineer. cost. C. Building specifications estimated and from Regional D. Zoning Certificate HLURB Office order. E. Certified copyof DARconversion true (ECC) Certificate of or Clearance Certificate F. Certified copyof Envrronmental true is whichever applicable. (CNC) dulyrssued theDENR, by Non-coverage andcunenttax receipt. u . Certifled truecopyof title(s) for H . Rightto use or deedof saleof righfof-way accessroadand otherutilities whenapplicable. the l. One(1) copyof project study to include following: profile cost,totalproject indicating amongothers, development the 1. Project cash marketability, flow. sources financing, of schedules, cost,amortization plans workprogram/project table; time and building architectural years; for statement the last 3 preceding 2. Audited financial years, for 3. Income return thelast3 preceding tax (SEC); Commission from and 4. Certificate registration Securities Exchange of or 5. Adicles incorporation partnership; of and amendments, by-laws allimplementing and 6. Corporation and of (3 7. For new corporations years and below)statement capitalization workprogram. andcashflowto suppoft sources income of Permit to drill from NWRB or certificateof coveragefrom concernedlocal holder. franchise professionals signedthe plansand other who K. List of namesof duly licensed filed indicating following the in with application similardocuments connection information: 1. Surname 2. Firstname name 3. Middle

^4 '^r.

4 . Maidenname,in caseof married womenprofessional; 5. Professional license number, dateof issueand expiration ib validity; of and
D.

Professional receipt tax anddateof issue

7 . Taxpayer's ldentifi (TlN) cation Number

lf the establishment the condominium projectis physically of feasibleand does not run counter the approved to zoningand landuse planof the city or municipality and the plancomplies theseRules, condominium shallbe approved a with plan the and permit development shallbe issued processing uponpayment theprescribed of fee. permit shall only be valid for a period of 3 years from date of A development issuance no physical if development introduced. is lf projecthas been issueda development permit,a locational clearance deemed is incoroorated therein. The owneror developer shallsubmitthe condominium plan in accordance with the requirements the NationalBuildingcode to the buildingofficialof the city or of municipality wherethe property and the sameshallbe acteduponsubjectto the lies conditions and in accordance with the procedure prescribed section 4 of the in Condominium (R.A.No.4726\. Act

RULEIV REGISTRATION LICENSING SUBDIVISTON AND OF AND CONDOMINIUM PROJECTS Section 7. Applicationfor Registration
A. Common Requirements The owner or the real estatedealerinterested the sale of lots or units in a in project condominium subdivision project, or respectively, register project shall the withthe Boardby filingthefollowing: 1. SwomRegistration Statement usirrg either:
d.

HLURBForm001for Corporation; or b . HLURB Form003for Single Proprietorship

Certified TrueCopyof Transfer Certificate Title(TCT)or Original of Certificate Of Title (OCT) duly stamped with originatmarking "CERTIFIEDTRUE COPY" by the proper Registerof Deeds and bearingits seal or security marker.

A
f
36

titleswithoutthe required a. \y'Uhenprojed coversmorethan 20 individual a shall marksdescribed above,the ficllorving be required: of a.1 Photocopy TCTs fom the registerof deeds concemedwith its seal or a.2 Certification information: markgivingthe following security a.2.1 TCTor OCTnumbers; if and owner(s) theirsharing, any; a.2.2 Nameof all registered by a.2.3 Areacovered eachtitle, of a.2.4 Number OCT or TCT fromwhichthe titleis derived; if any; liens of a.2.5 Statement all uncancelled andencumbrances, number, as a.2.6 Lot and blocknumbers well as PSD/PSU/PCS etc. copyof the TCT was issuedmorethan one month priorto b. Whencertified (CR), affidavit the owner of of for the application Certificate Registration Whenthe applicant is thatt# property freefromliensand encumbrances owner showingclearlytheis not the owner, deed from the registered and e to of authority the applicant the property' g , its development. saleof and,otherrelevant documents; to lots individual or units; signandreceive prqecl o1portion thereof the subdivision/condominium authority.In case fom the tit|e;certification to of affidavit under{aking submit is mortgaged, outstandingbalance of loan and amortization mortgale6 regarding of of and,affidavit undertaking mortgagor' of scniut-e; mortgage contract;
2

issuedand signed copY9f the original) sheet(certified Dulyauditedbalance by ihe authorizedofficialof ttre applicantand underthe lattecsauthonty. be a. When individualpersonsare involvedand no balance sheet can BIR by yeardulyreceived for tax income returns the preceding submitted, payment' evidencing officeandtax receipts or partnership, association single b. Wtrenapplicantis a new corporation, retumhas been tax or statement income i.e., proprietorsnip, no financial preparedyet, swornstatementdeclaring: of b.1 Otherassetsor sources fundsand otherresources; over such assets'funds or b.2 The natureof controlor ownership resources; b.3Commitmenttotheeffectthat,ifnecessary,thesameshallbeusecl the to complete Project.

4. Articlesoflncorporation(orofPartnershiporAssociation),amendments

+.

the clearlyindicating authorrty byJaws(or its equivalent) thereofand existing oftheapplicanttoengageinrea|estatetradeparticu|ar|yinthedeve|opment line fromthe intended deviates an r"f firigof lotsor u-niii.Wt1en applicant "nO
)'l

(or of business stipulatedin its articles of incorporation partnershipor association),authorizationfrom the Securitiesand Exchange Commission (SEC) and/or the appropriategovemment agency to engage in the prqecl. development selling the subject and of A copy of any circular, prospec{us, brochure, advertisement,or @mmunication used/to be used for public ofiering of subjed projectand br circulation uponapproval the Board. by
6. Samplecopyof Contract Sellto be usedin the publicoffering lots,units to of

or lots and units. Whenamendments shallbe affec{ed the form contnact on submitted notification/approval HLURB,pro-formaatfrdavit for by signifying willingness ctrange projec{ to name. Certified truecopyof Environmental Compliance (ECC)/Certificate Certificate of Non-coverage(CNC), whlchevel is'applicable, duly issued by the Department Environmental Natural of and Resouroes (DENR)
8. ZoningCertificate tom HLURBRegional Office

Certifiedtrue copy of DARconversion order.

1 0 . Electrical plan and specifications duly signedand searedby a ricensed

professional electricalengineerand duly approvedby the local franchise holder.

11. Permit to operate a deepwelland subsequentsubmissionof confirmed water resistivitytest from the Nationarwater ResourcesBoard (NWRB). Water potability test results from concerneo government agencieVMaynilad. B. Additional Requirements projects 1. ForCondominium a. Master Deeds with Decraration Registrationand Decraration of of Restrictions evidenoed the properann6tation by thereofin ttre tit[isl or the propertyand the certifiedtrue copy of such tiile(s) from the Reg;i-er; Deeds, b. Building Permit projects: 2. For Subdivision a. 2 copiesof verifiedsurveyreturnswith raberfor alr non-sareabre areas includingbut not rimitedto parksand praygrounds, community facirities and roadsand easements

^,1 , "4038

permitwas b. Copy of the followingdocumentsin case the development issued the LocalGovemment (LGU)pursuant the 1991Local to by Unit issuances: Codeand related Government granting of development b.1 Sangguniang ResolutiorVOrdinance permit/subdivision development plan containing the following information: and or b.1 1 fullnameof the grantee permittee hisaddress; . proJect nameand its location; b.1.2 complete or theresolution ordinance; b.1 dateof .3 area: b.1.4 pro1ect the covering project; listing title(s) of b.1.5 full (PD of .6 b.1 legalbasis theapproval 957,EO 648andotherrelated laws); to authority the mayoror conferring true copyol resolution b.2 Certified permit in to issue development other local govemmentofficial cases where the same was not granted by the Sangguniang Pangbayan/Panlungsod. Evidence of approval of the subdivisionscheme by the local as copyor one certified true mustbe any original government official official'indicating local government 6py thereofby the authorized position and the date of approval lt mysj Oeiny nis full nameand contaanthesamedataasdescribedabove'Mostimportantofall'it approvalsuch as but not of must bear an indication Sanggunian IiKE "APPROVEDBY AUTHORITYOF THE IiMitEdTO WOTdS SANGGUN|AN''orothersofsimi|arimport,itbeingunderstoodthat suchauthority issued has theSanggunian properly b.3Proofofcomp|iancetoSec.lSotRAT2Tginanyofthefo||owing manner: projects within housing permitof socialized b.3.1 Development the mainsubdivision. housingprojectoffered as b.3.2 Licenseto sell of socialized is if compliance tocationof compliance not within the main subdivision Project. b.3.3 Joint venture agreementwith LGU or other housing agencies. true b.3.4 Certified copyof bondissuedby the LGUwherethe main agencles' project located by any of the housing or is plan. development b.4 one (1) set of subdivision

d"..
39

c. Project study d. Copyof brochures otherfonnsof advertisements. and Section 8. Application for License to Sell The owner or the real estate dealer interested the sale of lots or units in a in subdivision condominium or project shallapplywiththe Board a License sell for to by submitting following: the A. Programof development (bar chartwirh s-curve,GanttcharupERT-cpM, etc.) signedand sealedby ricensed engineeror architectindicating work activities, duration costing and B. Affidavit undertaking perform following: of to the 1. Segregation the individuar of tiilesfor aI rotsor unitswithinthe project; 2. submission proofthat tiflesto the sareabre or unitshave of rots been issued, which.proof may incrudea certification from concernedregisterof deeds indicating tots/brocks unitsor datra the or simirar those,.eq*uired to undertne requirement certificate Registration whenrequired for of onry by th" B";;; 3. Submissionof a certified rrue copy of tifle of the common areas/open space' which tifle shail expressryindicatethe kind of common-tse approved therefor,on or beforea clefinite date (to u" rp."in"J uv subjectto approval the Board). by "00r,."", C. Dulyaccomplished notarized sheet and fact

Section 9. Noticeof publication

Lpers, wellas, the documents as attached rsinesshours by interestedparties. In :ct shallbe postedon the project until site

of.the pubrication, proponent submit the shar proof pubrication Y.?^ol:gro'"oon of executedby the pubrisher and an affidavit ittestinj io the postingof the biilboard noticeon the site.

44 '&'

40

Section 10. Certificateof Registration

ln with the provisions Uponfindingthatthe projectmaybe registered acrordance of shallcausethe publication the expense at of the decree the andtheserules, Board in of the applicant noticeof the filingof the registration a statement 2 newspapers generalcirculations, published Englishand anotherin Pilipino, in once a week one statement for the sale of for 2 consecutive weeks, recitingthat a registra'tion lots unitshas beenfiledwith the Boardand that the subdivision or condominium are thereto, opento siatement well as the papersattached as registration aforesaid parties. business hours interested by inspection during of and upon submission the of After 2 weeksfrom the completion the publication issuea publications. Boa:-cj in the absence any impediment' of shall of the affidavit fees. of upon Certificate Registration payment theprescribed of

to Section11. License Sell

unit lot No owner or dealershall sell any subdivision or condominium in the by project a to without license sellissued the Board. registered of therefor.submission the requiredwork program. Upon proper application or fee license by theowner dealer, cf performance andpayment the prescribed bond thereof unit in the projector portion to the Boardshallissuea license sell the lot or bond. providedthat. the submittedregistratlon coveredby the performance Ganestablishthat the pertinentdocumentary reguirements statementand other unit lot proposed sale of the subdivision or condominium to the publicis nol fraudulent.

Bond Section12. Pertormance

bond requiredundersec. 6 of the Decreemay be in any of the The performance forms: following cost of to A. A suretybond amounting 2oo/o the development of the unfinished duly accreditedbondingcompany portionof the approvedplan issued by a or, to private government) acceptable the Board; and or iwhether in as to B. Realestatemortgage be executedby the applicant mortgagor favor of by as the as of the Repub|ic the Phi|ippines mortgages, |atter represented and actingthroughtheHLURB,overapropertyotherthanthatsubjectofthe that and fiee apptication, fromany liensand encumbrance provided, the value.of zonal valuationscheduleof the the property,computedon the basis of the CoSt; ol shallbe at least2Oo/o the totaldevelopment bureauof internalrevenue, or, portion cost to c. cash bondequivalent 10%of the development of the unfinished thefollowing' planwhichmaybe in the formof of the approved officerof the depositmade with the cashierand/ordisbursing 1, Fiduciary Board; 41

*l

2. A certificate guaranty of deposit issued anybankor financing by institution of goodstanding favorof the boar.d the totaldevelopment in for cost; 3. A letterfrom any bankof recognized standing certifying so muchhas that beenset asidefromthe bankaccount the applicant favorof the board of in whichamount maybe withdrawn thechiefexecutive by officer the board of or by hisdulyauthorized representative, timethe principal or refuses at any fails to comply withhis dutiesandobligations underthe bondcontract; 4. Anyirrevocable credit to be utiiized thedevelopment the project line in of from any bank of recognized standing and a refinancing program re-structuring indicating sources funding of fromdulyaccredited funding institutions. For pre-existing projects any of the formsof performance bond enumerated above maybe availed of.

RULEV REGISTRATION REALESTATE OF DEALERS, BROKERS AND SALESMEN Section13' Apprication Registration Brokersand saresmen for of
No brokeror saresman shailengage the business seiling in of subdivision or rots condominium unitswithoutsecuring certificate registratidn firingwith tne a of by Board registration a statement quadrupricate in containing foilowing the inrJrmairon: a. Name, ageandaddress b' lf a corporation' partnership, association, office or its address branch and offices and the namesandaddresses its executive of officers directors. and c' statement that appricant quarified act as rearestatebroker is to dr saresman pursuant law. lo d lf app|cantis a salesman, nameand address the of the dearer broker or who emptoys him,attaching copyof appointment. a " applicant a broker, names is the andaddresses salesmen of employed by [,fl"

Section 14. Certificateof Registration

nentsor information, unlessspecified by said period shall be treatedas original

^+
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42

Section15. Bonds
a maybe either cashor a surety 6 undersection of the Decree The Bondrequired pfivateor govemment whether company bonding bond issuedby a duly accredited in thatit shallremain others among stating a agency.Thebondshallcontain clause Board.The by or cancelled released the fu'ittoiceand effectunlessit is ordered, of the H in bondshallbe executed favor d and honest uponthe faithful conditioned or deale a under broker working salesman thoseduties to uponfailure discharge that who maysufferloss to any and all persons for the bondshallbe P5,000 Dealers/Brc have already bondsor securities bonds shall no longerbe requiredif equivalent agencies with othergovernment foi been postedby applicants the same purpose
to DUrSUant law.

-hit Adea|er,brokerorsa|esmanmayapp|yinwritingwiththeBoardforthecance|lation the.B.oard cases, of release hisbondrtaiingthet6i;t t"asons. In appropFiate and at the latteis therefor of to the may |.equire applicant ciuse the publication a notice jenerat circulation. amongothers'the.factof stating' of In expense a newspape, to shallbe submitted the Board. Any proof6f publication The suln apptication. againstthe dealer'brokeror p"ito^, havingany claim for moneyor property s a | e s m a n i n h i s r e a | e s t a t e s e r v i c e o r p r a c t i c e ' m u s t - f i | e h i s c | a iof thet h t h e B o a r d mwi for reason the cancellation lf within15 daysfromtn" o"iu oi fublication. the. bondishiscessationfromfurtherengaginginthebusinessofse||ingsubdivision|ots o r c o n d o m i n i u m u n i t s , t h e d e a l e r ' b r o k e r o r s a l e s m a n s hthe s u r r e n d e r h i s c e r t i f i c a t a | l Register of from to the BoarJanJ hi. n"r" shallbe cancelled of registration and Salesmen. Brokers Dealers,

RULEVI PROVISIONS MISGELLANEOUS Section16. Definitionof Terms

are wordsandphrases defined: the of For purposes theserules, following Board' Regulatory and the a. Boardor HLURB shallmean Housing LandUse or alleysor pathways on b. Block - a parcelof land bounded the sidesby streets and occupiedby or intendedfor or other naturalor .an-tuo" features, buildings. A|||andsfrontingononesideofastreetbetweentheneareststreets' street' the or meeting crossing aforesaid intersecting, or ysedfo1g[ce' Condominium - a building, groupof buildings' c. Commercial organized' enterprise and oiher commercial services professional businesses, as andmaintained a condominium' owned
^'{",.

d. CommonAreas - meansthe entire projectexcepting units separately all granted, or reserved. held
CommunityFacilities- facilities structures or intended serve@mmonneeds to and for the benefit of the communitysuch as schools,places of worship, hospitals, healthcenters,barangay centersand othersimilarfacilitiesi/amenities perPD 1216. condorninium - shallmeanan interest real property in consisting a separate of interestin a unit in a residential, industrialor commercialbuildingand an undividedinterestin @mmonclirecfly indirecily, the land on which it is or in located and in othercommon areasof the building.A condominium include, may in addition, separate a interest otherportions suchreal property.Titteto the in of commonareas,including land,or the appurtenant the interests such areas, in be held by a corporation speciallyformedfor the purposein which the fqy holders separate of interests shallautomatically members shareholders, be or to the exclusiveof others, in proportionto the appurtenantinterest of their respec{ive uniK in the common areas. A building whicheachindividual is heldin separate in unit private ownership and all 1loorspace,facirities and outdoorareasused in commonby ail tenant! are owned,administered maintained a corporation and by createdpursuant the to provisions the appropriate of statute. An individualdwelling unit under individualownershipin a multiple units development common with elements which: in a The unitscomprise onrythe spaceencrosed the unit boundaries, not by but all materiat partsof the landwithinihe space; b. The commonerementrneansalr the propertywithin the deveropment except theunits; c Theoommon element ownedby alrof theowners tenants common. is as in A building groupof buildings, which unitsare owned individually, or in and stnrcture, @mmon areas and facilities are o^/ned Oy tne owners the on a proportional undivided basis. CondominiumProject- meansthe entireparcelof rearproperty divided to be or divided condominium, in including struc{ures all thereon. CondominiumUnit - meansa partof the condominium pojec{ intended any br typeof independent or orrnership, use including o, morefloors(or partor one partsof floors)in a building buildings suchaccessones or and as maybe appended thereto.
I

^l :rt'

Dealer - shallmeanany persondirecfly engaged principar the businqss as in of buyrng, sellingor exchanging estate real whether iull timeor part_time on basis. r\ ourx Duyer sha mean any person who aoquires a lot or a portion of ttre

housing or or subdivision who, with or withoutre-subdividing introducing and facitities, same, under its previouslicenseto sell or in a new other sells the to to license sellin hisname the public.
)

known "The as Decree 957otheruise No. Decree shallmeanPresidential Protective Decree." Buyer's Subdivision Condominium and or designed usedas residence. . DwellingUnit - structure eachunithavingsleeping, Oneor moreroomsthat maybe usedas a residence, cooking toiletfacilities. and for or roomsdesigned intended use by'l or more One or more habitable in establishment housekeeping and separate as individuals an independent use for facilities provided the exclusive are kitchenand sanitary whichseparate from outside building the entrance with or of suchindividual individuals, a private inside building' the hallway staiMay or or fom a common Types: Dwelling by surrounded yards' unit 1. SingleDetached- a dwelling completely 2.Sing|eAttached-adwe||ingunitwithonesideattachedtoafirewa||' livingunitseach of whichis 2 unitcontaining separate 3. Duplex - a dwelling access. wiih and by from seoarated another a firewall provided Independent 4.Rowhouse-dwe||ingunitscontaining3ormore|ivingunitsdesignedin suchawaythattheyabuteachotherandareseparatdfromeachotherby access withindependent eachunitprovided a firewall l'Firewa||-anywallwhichsubdividesabui|dingsoastoresisttheSpreadoffire, bystartingatthefoundationandextendingcontrnuous|ythrougha||storeysto,or the above roof is 1 millimeter' the a-Oove roof. Extension m. Frontage - the sideof a lot whichabutsa street' n.LivingUnit-adwe|ling,orportionthereof,providingcomp|eteIivingfacilitiesfor cooking'eating'bathingand for provisions living,sleeping,. one flmily, including dwelling. the facilities, sameas a single-family and facilities laundry toitet as of o. Lot - portion a suMivisionorany parcelof landintended a unitfor transfer development for or ownership building as Types of Lots. - lotsshallbe defined follows: l.corner|ot-a|otsituatedattheintersectionoftwoormorestreets.
sides boundedby 2. regular lol - a lot frontingon one streetand the remaining lot lines.

^f,

4,s

lot 3. interior - a lot located the innerportion a blockwith a minimum at of of (3-m)wideaccesswhichformspartof the lot. three-meter 4. through - a lotbounded twoopposite lot on sides roads. by 5. irregular - anylotwhich notrectangle square-shaped lot is nor p MediumCost and Open Market - refers housing projects to whereprices of packages r,viihin suggested houseand lot pricerangesas determined are the through HUDcc resolution failing an<i prescribed these underthe standards in rures. q. Open Space - shall refer to an area reserved exclusivelyfor parks, playgrounds, recreational uses, schools, roads,placesof worship, . hospitals, health centers, barangay centers other anci similar facilities amenities. and r. Project - meansthe entire parcelof real properry dividedor to be dividedin condominiums, including structures all thereon.

Section17. Submissionof Semestral Reportson Operations

Everyowneror dealerof a registered subdivision condominium or projectshall submitto the Boardsemi-annual reports operations on showing salls status the indicating therein nameof buyer. rovbrock TCTno..dateof furchase, no., nameof mortgagee, modeof acquisition, extenudeveropment status, changes corporate in officers theiraddresses and within daysafterthe endof each,Jrn"rter.-iopL, 60 of corporate reportsto the securities ind Exchange commission shall also be furnished theBoard. to

section 18. Disprayof certificate of Registrationand License to Sell

The.certificateof Registration and Licenseto Seil issuedby the Board shail be -owner, displayed a conspicuous in placein tt,eprincipal office the of oearer, oroGr or saresman, the casemay be and a xeroxcopythereof aI its as in branches ano offices-

Section 19. License

Lost or Destroyed Certificate of Registration or

Uponlossor destr'..rctiona.certificaie Registration License of of or to Sella dupricate copy thereofmay be issuedby the Boardafter satisfacto proof of such loss or ry destruction, and paymentof the prescribed fee. The fact [hat rr"n oupri"utur,a" beenissued shallbe madeof record.

1.
46

Section 20. Advertisement

unitsshallbe for lots All advertisements the saleof subdivision and condominium pursuant Section ofthe Decree. 19 by to declared andapproved the Board

Section21. Time for Completion

infrastructures, and providethe facilities, shallconstruct Everyownerof developer facilities as far and and lighting including watersupply otherformsof development, the approved in which are offeredand indicated improvements, as practicable printed letters or prospectus, matters, plans, brochures, or subdivision condominium periodof time withinone (1) yearor withinsuchother in any form of advertisement, to of as miy be fixedby the Boardfromthe dateof the issuance license sell for the project. or subdivision condominium or of of Reouestfor extension time to completedevelopment a subdivision project of wherenon-completion project onlyin cases maybe granted condominium that the board otherreasons events, legalordersor such is causedby fortuitous to f'vprop"rwith the writtennoticeto lot or unit buyerswithoutpreiudice may deem 23 to of the exercise theirrightspursuant Section of the Decree' by shall of for The request extension timefor completion be accompanied a revised with project or engineer architect dulysignedandsealedby a licensed work program mayrequire the cases, Board In therefor. appropriate scheme and costing finanCing cost 20% of development to performance bondamounting the polting of additional plan,or issuesuchordersit portion the approved development of of the unfinished mayoeemproper.

Section 22. Translerof Ownershipor Changeof Name

of and/orchange. name may be grantedonly if Requestfor transferof ownership prolect and sale over the subdivision condominium there is a deed of absolute on with an undertaking changed the and/or namethereof iought to be transferred of.the for to if* b"rt of the transferee assumefull responsibility the.completion. 7 and 13 hereofshall be in J"uiopm"nt thereof. The requirements Sections aPPlicable. whenever observed at or such requestfor transferof ownership changeof name shall be published within the city or of expensein a newspaper generalcirculation applicant;s weekfor two (2) consecutive at is wherethe project located leastoncea municipality weeKs.

Section 23. Alterationof Plans

t ti of Requestfor alteration subdivision plans may be granled if.the.requirements plans shilrl of Seition 22 of the Decreeare compliedwith. Alteration condominium amendedby Sections1 Act with Section4 of the Condominium as be in accordance and 2 of RA 7899. T"r.,,

xJ

4'7

Section 24. Non-forfeiture Paynrents of

paymentmade by a buyer in a new or existingsubdivision No installment or project the lot or unithe contracted buyshallbe forfeited favor condominium for to in of the owner or developer when the buyer, afier due notice to the owneror developer and clearance from the Boarddesistsfrom furtherpaymentdue to the failureof the owneror developer developthe projectaccording the approved to to plansand withinthe time limitfor complying with the same. suchbuyer may at his option be reimbursed total amount paid includingamortization the interestsbut excluding delinquency interests, interest with thereon ihe legalrate. at

Section 25. Registrationof Gonveyances

sales or conveyances the subdivision of lots and condominium units shall be psisteredwithin t80 days from execution thereofby the sellerwith the Register of Deedsof the province citywherethe property situated or is pursuant secti5nt 7 of to the Decree. Exceptas may othe*ise be providedfor by raw,the Boardmay rn appropnate cases cause the Registerof Deedsto cancel registration, entriesor annotations titlesmadeon thisregard. on

Section 26. Mortgages

Mortgage any unitor lot by the owneror developer of shallbe cleared withthe Board pursuant Section1I of the Decree. to

Section 27. RealtyTax and OtherCharges

No realtytax assessment otherchargesshail be imposed a rot or on or unit buyer exceptas providedfor in Section26 and2T of the Decree.

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

complaints or proceedingsagainst owners, deveropers, dearers,brokers and saresmen sha be resorved accordance the Rures procedure in with of to oouem'tne Conduct Heanngs of beforethe Board.

Section 29. Administrative Fines

Any owner or dearer who. fairs to register an existing subdivisionproject or condominium project withinthe periodprescribed unoertr6se rub.;il ,.AGa.. shall be penarrzed accordancewith the approved schedure in of fines. impfementation payment theseadministrative shal not precrude The and of fines criminat prosecution the offender of underSec{ion of the Decree. 39

Section 30. Criminalpenalties

Any personviolating any provisions the of shallsufferthe penalties provided undel for I 4t *L
"Ji.

of Section31. ldentification Lot Subjectof Sale

project shallattach andshallformpartof the to of Theowner dealer a subdivision or and planclearly showing area,boundaries the of salesdocument any lot,a sketch proiect, well as the as with the blockand the whole dimensions the lot in relation of prolecttn relation with publicroadsand otherland marks,to be of Iocation the and geodetic by and engineer signed theseller buyer' by certified a licensed

as Section 32. Broker/Salesman Witnessto Sales

lot the who or The broker salesman negotiated saleof a subdivision or condominium of with to witnesses the salesdocument an indication his unitshallactas oneof the was directlymade date. lf the sale numberand renewal certificateof Registration document' in factmustbe so stated thesales that or by theowner dealer,

Section33. Fees
feesin accordance collect Shall unit or The Board the localgovernment concerned government concerned or by of withtheschedule feesapproved the Board the local

Section 34. APPlicabilitY

projects and subdivision condominium TheSe RUIeSshallapplyonlyto residential laws and related by as defined the Decree

Section35. TransitoryProvisions
TheprovisionsofRu|e||.Section(5)Subsection(A)(1)andSubsection(B)(2)of thereof, and these Ru|esto the conirarynotwithstanding, subjectto further review in the licensed architects who are not licensed environmentalplanners may development meantimestill contrnueto $ign site developmentplans/subdivision -ror of date of effectivity prolects, a penod ot 2 yearsfrom the pians of subdivision theseRules

Clause Section36. SeParabilitY

and in the eventany of The provisions these Ru|esare herebydec|aredseparab|e, shall all other provisions of are of such provisions declarednull and void,the validity not be affectedtherebY.

Section 37. EffectivitY

These Rules shall take effect immediately after its publication once In any of newspaper generalcirculation

4,
49

A ANNEX MALACAfrANG Manila NO,957 DECREE PRESIDENTIAL LOTSAND CONDOMINIUMS, THESALEOF SUBDIVISION REGULATING THEREOF FORVIOLATIONS PROVIDING PENALTIES the WHEREAS, is the policyof the Stateto affordits inhabitants requirements it for and to providethemwith ampleopportunities improvif of decenthumanseftlement theirquality life; of WHEREAS, revealthat manyreal estatesubdivision numerous reports owners, developers, operators, and/or sellers have reneged on their representations and obligationsto provide and maintainproperlysubdivisionroads, drainage,sewerage, watersystems, lighting systems, othersimilar and thus basicrequirements, endangering the healthand safetyof homeand lot buyers; WHEREAS,reportsof alarming magnitude also show cases of swindling and perpetrated unscrupulous fraudulent manipulations by subdivision and condominium sellers and operators,such as failure to delivertitles to the buyers or titles free from liensand encumbrances, to pay real estatetaxes,and fraudulent and salesof the same purchasers value; subdivision to different lots innocent for WHEREAS, theseactsnot only undermine landand housing program the the of government also defeatthe objectives the New Society,particularly promotion but of the of peaceand orderandthe enhancement the economic, of social and moralcondition of people; the Filipino WHEREAS,this state of affairs has renderedit imperative that the real estale subdivision condominium and businesses closely be supervised regulated that and and penalties be imposed on fraudulentpracticesand manipulations commifted in connection therewith. president the phitippines, NOW,THEREFORE, FERDINAND MARCOS, l, E. of by virtueof the powersvestedin me by the constitution, herebydecreeand order: do Title I TITLEAND DEFINITIONS SEC. 1. Tltle. - This decreeshail be known as THE SUBDMSION AND CONDOMINITJM BUYER'S PROTECTIVE DECREE. sEc. 2. Definition of rerms. - when used in this decree,the followingterms shallun{ess contextothenarise the indicates, havethe followingrespective meanings: a) Person. "Person" shalrmeana naturar a juridical person. A juridical or person refers to a businessfirm whether a corporation, partnership,cooperativeor proprietorship. association a single or

or to or everydisposition, attempt b) Saleor Sell. - "Sale" "Sell" shallinclude and of lot, the dispose, a valuableconsideration, a subdivision including building for projector condominium in a unit thereof, any, in a subdivision if other improvements of to project."Sale" a and "Sell"shallalsoinclude contract sell,a contract condominium purchase, a purchase an to and sale,an exchange, attempt sell,an optionof sale or letter' or solicitation a sale,or any offerto sell,directly by an agent,or by a circular, of or advertisement otherwise. partnership, any or corporation, A privilegegivento a memberof a cooperative, the or evidencing giving rightof of of and/or issuance a certificate receipt the association fee of of payment the membership or participation or right,any landin consideration in, of the a dues,shallbe deemed salewithin meaning thisdefinition. shall includeany c) Buy and Purchase.- The term "Buy"and "Purchase" acquire for a valuable considerationa contract to buy, purchase, or othenruise if and otherimprovements,any, in a subdivision the lot, subdivision including building project. condominium unit projector a condominium in a Project"shall meana tract or a parcel subdivisionProject. - "subdivision d) of land registeredunder Ait No. 496 which is partitionedprimarily for- residential and offeredto the thereon, lots purposes iito individual with or withoutimprovements terms. lt shall include all residential, public for sale, in cash or in installment areas, as well as open spaces and other and recreational industrial commercial, areasin the project' and community public Lot" Lot. - "subdivision shallmeanany of the lots,whether subdivision e) pqect' in or industrial, recreational, a subdivision commercial, residential, Plan"shall meana Plan. - "complexsubdivision f) complexsubdivision or land whereina street,passageway open spacels plan of a registered subdivision on delineated the Plan. Project"shall mean the entire Project. - "condominium condominium s) "of real propertydivided or to be divided primarilyfor residentialpurposesinto parcel thereon' all units,including structures condominium h)CondominiumUnit.-.CondominiumUnit'shal|meanapartofthe including use for project intended any typeof independent or ownership, condominium (or part of partsof floors)in one or more roomsor spaceslocatedin one or morefloors abui|dingorbui|dingsandsuchaccessoriesasmaybeappendedthereto. ownerof the |andsubjectof sha||referto the registered owner. - ,.owner'. i) project. or a subdivision a condominium j)Deve|oper'-''Developer''sha||meanthepersonwhod.eve|opsor project and in behalfof the owner for project condominium or the improves subdivision thereof. in as engaged principal directly shallmeanany person Dealer.- "Dealer" k) partor on real or selling exchanging estatewhether a full-time of the business buying, timebasis.

51

l) Broker. - "Broker" shallmeanany person who, for commission other or compensation, undertakes sell or negotiate sale of a real estatebelonging to the to another. m) Salesman. "Salesman" shallreferto the person regularly employed a by broker perform, and in his behalf, or all the functions a realestatebroker. to for any of n) Authority. 'Authority" shallmeanthe National Housing Authority. Title ll REGISTRATION LICENSE SELL AND TO sEc. 3. NationalHousingAuthority. - The National Housing Authority shall jurisdiction regulate real tradeand business accordance have exclusive to the in with the provisions thisDecree. of sEc. 4. Registrationof Project. - The registered ownerof a parcelof landwho wishes convert sameintoa subdivision to the project shallsubmithissubdivision to ptan the Authority whichshallact uponand approve same,upona findings the thatthe plan complies with the Subdivision Standards and Regulations enforceable the time the lt plan is submifted.The same procedure shallbe followed the case of a plan for a in project condominium exceptthat,in addition, saidAuthority shallact uponand approve the planwith respect the building buildings to or included the condominium in project in accordance the National with Building Code(R.A.No.6541). plan,as so approved, shallthen be submitted the Director to . Th" subdivision of Landsfor approval accordance in with the procedure prescribed seition 44 of the in Land Registration (Act No. 496 as amended R.A. No. 440): provided. Act by that in

of theCondominium (R.A. 4726). Act No. The owner or the rear estate dearer interestedin the sare of rots or units, respectively, suchsubdivision in project condominium or project shallregister project the a statemenicontaining l/i1h the Authorityby firingtherewith sworn registration the followinginformation; a) b) Nameof the owner; The locationof.the owner'sprincipar businessoffice,and if the owner rs a non-resident Firipino, nameand address his agentor representative the of in the philippines authorized receivenotice; to The namesand addresses ail the directors of and officersof the business firm, if the owner: The general characterof the businessactuallytransacted or to be transacted the owner; by 52

c) d)

e)

A statement the capitalization the owner, the and of of including authorized proportion whichis stockandthe thereof outstanding amounts its capital of paro-up.

statement: documents shatlbe attached the registration to The following a. b. plan as approvedin plan or condominium A copy of the subdivision paragraphs thissection; of accordance thefirstand second with letter,or advertisement, brochure, A copy of any circular,prospectus, lots of communication be usedfor the publicoffering the subdivision or to units; condominium firm, a balancesheet showingthe amountand In case of a business of and generalcharacter its assetsand liabilities a copy of its articles of as or of or incorporatton articles partnership association, the casemay be' thereofand existingby-lawsor instruments with all the amendments thereto; correponding which is free from all liens and encumbrances: A title to the property unit lot however, in caseanysubdivision or condominium is that Provided, mortgaged,itissufficientiftheinstrumentofmortgagecontalnsa stipulationthat the mortgageeshall release the mortgage on any pricefor unit lot subdivision or condominium as soonas the full purchase the sameis PaidbYthe buYer.

c.

d.

fees statementshall pay the registration The person filing the registration prescribed by therefore theAuthority. a causeto be published noticeof the shallimmediately the Thereupon, Authority - owneror dealer,in of at statem-ent the expense the applicant filingof the registration in.Pilipino, and published English another in one circulation, of two'newspapeis general for statement the that a registration weeks,reciting once a week for two consecutive Housing units his been filed in the National lots sale of subdivision or condominium the papersattached as statement, well as registration nutnoritv;that the aforesaid such parties, hoursby interested duringbusiness are thereto, opento inspection -under to and that copiesthereofshallbe furnished may impbse; the Authority i"grl"irn. "J fees. of any partyuponpayment the proper project shallbe deemedregistered project the condominium or The subdivision The fact of such registration requirement. of upon completion the above publication or to certificate be issuedto the applicant'owner by sirallbe evidenced a registration dealer. SEC.5. Licenseto Sell - Suchowneror dealerto whom has been issueda lot to be shall not, however, authorized sell any subdivision or certificate registration a project unlesshe shatlhavefirst obtained license unit condominium in the registered project' of two within weeksfromthe registration such to sellthe project shall issueto such owner or therefore, upon properapplication The Authority, of if, project to a'license sellthe project afteran examination the dealerof a registered documents .stitementfiled by said owner or dealerand all the pertinent registration
CJ

.attachedthereto,he is convincedthat the owner or dealer is of good repute,that his businessis financially stable,and that the proposed lots or sale of the subdivision condominium unitsto the public not be fraudulerit. would SEC, 6. Performance Bond. - No licenseto sell subdivision lots or condominium units shall be issuedby the Authority under section 5 of this Decree unlessthe owneror dealershall havefiled an adequateperformance bond approvedby said Authorityto guaranteethe construction and maintenance the roads, gutters, of drainage,sewerage,water system,lightingsystems,and full development the of projector the condominium subdivision projectand the compliance the owner or by dealer withthe applicable lawsandrulesandregulations. The performance bond shall be executedin favor of the Republicof the Philippinesand shall authorize the Authority to use the proceeds th'ereoffor the purposes its undertaking caseof forfeiture provided this Decree. of in as in sEc' 7. . Exempt Transactions. - A ricense seil and perfo'nance bond shall to not be required any of thefollowing in transactions:
a) b) c)

sale'of a subdivision resurting rot from the partition randamong coof owners andco-heirs. Saleor transfer a subdivision by the originar of fot purchaser thereofand any subsequent of the samelot. sale sale of a subdivision or a condominium by or for the account fot unit of a m:rtSaqeg the ordinary in course business of whennecessary liquidate to a bonafidedebt.

sEc' 8. suspension of Licenseto sert. - Uponverified compraint fitedby a buyerof a subdivision or a condominium or any interested lot unit p",tv, in" irft,oritv 'ticense may, in its discretion, immediatery suspendthe owner,sor deare/s to sert pendinginvestigation hearingoi the caseas provided and ,n section rs heieor.

The suspension ordermay be riftedif, afternoticeand hearing, Authority the is convincedthat the registration statementis accurateor that any aericlency ttreieinhas been conected or supplemented that the iaie io tne public or of the subdivisionor condominium project neither fraudurent resurt wiil be nor in fraud. rt shailarsobe rifted upondismissal the complaint lackof tegat of for basis pensions, suspension the rightto sell the of rsons notified thereof, shall be deemed rderof suspension in the meantime has be

54

SEC.9. Revocationof Registration Certificateand Licenseto Sell. - The Authority may,motopropioor uponverified filedby a buyerof a subdivision complaint projectand the unit, revokethe registration any subdivision of lot or condominium project issuing order an lot by license sellany subdivision or condominium in said to unit into thereto, uponexamination the affairsof if in to this effect,with his findings respect provided in Section hereof, shallappear 14 it for a as during hearing the owneror dealer that evidence the saidowneror dealer: thereis satisfactory a) b) ls insolvent; or rule or of any Has violated of the provisions this Decree any applicable or performance bond; of or regulation theAuthority, any undertaking his/its of or transactions; Has been or is engagedor is aboutto engagein fraudulent or or circular brochure, in Has madeany misrepresentationany prospectus, projectthat projector condominium other literatureabout the subdivision or buyer; to has beendistributed prospective repute; or ls of badbusiness with in his Doesnot conduct business accordance law or soundbusiness PrinciPles.

c) d)

e) fl

or or Wherethe owneror dealeris a partnership corporation an unincorporated and certificate of its registration causefor cancellation it association, shallbe sufficient of such or of to its license sell, if any member such partnership any officeror director whichwouldbe cause or omission has or corporation association beenguiltyof any act 'refusing as dealer,brokeror salesman of the or revoking registration an individual for 11 provided Section hereof. in SEC. 10. Registers of Subdivision Lots and Condominium Units. A record shallbe wherein unitsshallbe keptin the Authority lots of subdivision and condominium or the affecting condition statusthereof The registers enteredall ordersof the Authority to subject unitsshallbe opento publicinspection lots of subdivision and condominium may prescribe rulesas the Authority such reasonable Title lll AND SALESMEN BROKERS DEALERS. sEc. 11. Registrationof Dealers,Brokersand salesmen. No real estate lots of dealer,brokeror sa|ert"n shallengagein the business sellingsubdivision or in Authority accorclance with the himself unitsunlesshe has registered condominium provisions thissection' of withthe complied is shallfind that the applicant of good reputeand ha.s lf the Authority fee, of including payment the prescribed he the rulegof the Authority, withthe applicable filinga bond'or uponhis or broker, salesman as suchapplicant a dealer, shallregister conditioned suchsum as may be fixedby the Authority in othersjcurity in lieuthereof,

upon his faithfulcompliance with the provisions this Decree: Provided, of that the registration a salesman of shallceaseuponthe termination his employment of with a dealeror broker. Every registration under this section shall expire on the thirty-first day of December each year. Renewalof registration the succeeding of year shall be for granted uponwrittenapplication therefore madenot lessthanthirtynor morethansixty days beforethe first day of the issuing year and upon payment the prescribed of fee, withoutthe necessityof filing furtherstatements information, or unless specifically required the Authority.All applications beyondsaid periodshallbe treatedas by filed original applications. The names and addresses all personsregistered dealers,brorers or of as salesman shallbe recorded a Register Brokers, in of Dealers and salesman keptin the Authority whichshallbe opento public inspection. SEC. 12. Revocationof Registrationas Dealers,Brokers, Salesmen. Registration under the precedingsection may be refusedor any registration granted thereunder, revokedby the Authority after reasonable if, noticeand-hearing,it shall determine suchapplicant registrant: that or
1)

Has violated any provision this Decree any rule or regulation of or made hereunder: or Hasmadea material falsestatement hisapplication registration; in for or Has. been guilty of a fraudulent in connection act with any sale of a subdivision or condominium or lot unit; Has demonstrated unworthiness, transact his to the business dearer, of broker, salesman, the casemavbe. or as

2) 3)
4)

ln case of chargesagainsta saresman, noticethereofsha arso be given the broker dealer or employing suchsalesman. Pendinghearingof the.case,the Authority shail have the power to order the suspension dearer's, of broker's saresman's or registration; provided, iucn oroer that shallstatethe causefor the suspension. The suspension revocation the registration a dearer or of of .. shaflcarrywith it arl the suspension revocation the registration-s hissalesman. or of of all

56

Title lV PROCEDURE FORREVOCATION OF CERTIFICATE REGISTRATION of for the SEC.13. Hearing. - In the hearing determining existence any ground and to registration certificate license of and/orrevocation for or grounds the suspension with: shallbe complied the in I sellas provided Sections andt hereof, following a) is Notice - No such hearingshall proceedunless the respondent in against him or is notified writing with a copyof the complaint furnished of of the purpose suchhearing. Venue - The hearingmay be heldbeforethe officeror officersdesignated in on by the Authority the dateand placespecified the notice. and shall be non-litigious Natureof Proceedings- The proceedings in obtaining courts regard legaltechnicalities to in without summary nature The Rulesof Court shall not apply in said hearingexcept by of law. and characterand wheneverpracticable analogy or in a suppletory convenient. other of to PowerIncidental the Hearing- Forthe purpose the hearing.of to the proceeding underthis Decree, officeror officersdesignated hearthe witnesses, oaths,subpoena shallhavethe powerto administer complaint of the and takedispositions, require production conduct ocularinspections; anybook,paper,correspondence'memorandum,orotherrecordwhich to or relevant material the inquiry. are deemed

b) c)

d)

SEC.14. ContemPt.a) by Directcontempt. - The officeror officersdesignated the Authorityto hearthecomp|aintmaysummarilyadjudgeindirectcontemptanyperson so officials of in guiltyof misbehavior the presence nearthe said hearing to beforethe same or of _refusal the as to obstructor interrupt proceedings beswornortoanswerasawitnessortosubscribeanaffidavitor to required do so. The personfound guiltyof when lawfully deposition directcontemptunderthissectionsha||bepunishedbyafinenot exceedingfifty(P50.oo)pesosorimprisonmentnotexceedingfive(5) or daYs, both to Indirectcontempt. - The otficeror officersdesignated hear the comp|aintmaya|soadjudgeanypersoninindirectcontemptongrounds andinthemannerprescribedinRuleT'loftheRevisedRulesofCourt'

b)

withinthirty(30)daysfromthe sEc. 15. Decision. - Thecaseshallbe decided of may orderthe revocation the for time the sameis submitted decision.The decision or cancellation, proiect, suspension, the or of registration the subdivision condominium whole or in part, of the in reiocationof the licenseto sell and/or the forfeiture, of in mentioned Section6 hereof. In case forfeiture the bond is bond oerformance or to provincial city engineer undertake cause or may directthe the ordered, Decision or for of the construction roadsind of otherrequirements the subdivision condominium shall be to the amountforfeited.Suchdecision in as stipulated the bond,chargeable

finalafterthe lapseof 15 daysfromthe dateof executory shallbecome and immediately receipt the Decision. of SEC.16. Ceaseand DesistOrder. - Whenever shallappeartothe Authority it whichconstitutes that any personis engaged aboutto engage any act or practice or in provisions this Decree,or of any rule or regulation or will constitute violationof the a of thereunder, may,upondue notice it issue and hearing provided Section hereof, in 13 as a ceaseanddesistorderto enjoin suchactor practices. SEC. 17. Registration.- contractsto sell,deedsof sale and othersimilar All instruments relativeto the saleor conveyance the subdivision and condominium of lots priceis paidin full,shallbe registered the sellerin units, whether not the purchase or by the Office the Register Deeds the province citywherethe property situated. of of of or is Whenever subdivision dulyapproved accordance Section hereof, plan a in with 4 together with the corresponding owner's duplicate certificate title,is presented the of to Register Deedsfor registration, Register Deedsshall registerthe same in of the of accordancewith the provisions the Land Registration of Act, as amended: provided, however, if thereis a street,passageway required that or open spacedelineateo a on plan complex subdivision hereafter approved as defined this Decree, Register and in the of Deedsshallannotateon the new certificate ti e coveringthe street,passageway of or open space,a memorandum the effectthat exceptby way of donation favorof a to in city or municipality, portion any street, no passageway, openspacedelineated of or on the plan shall be closedor otherwisedisposedof by the registered owner withoutthe requisite approval provided as underSection of thisDecree. 22 SEC. 18. Mortgages. - No mortgage any unit or lot shallbe made by the on owneror developer priorwritten without approval the Authority.Suchapproval of shall not be granted unlessit is shownthatthe proceeds the mortgage of loanshallbe used for the development the condominium subdivision of or prolect lnd effective measures have been provided ensuresuch utilization.The loan value of each lot or unit to covgredby the mortgage shall be determined the buyerthereof,if any, shall be and notifiedbeforethe releaseof the loan. The buyermay,at his option,pay his installment for the lot or unit direcilyto the mortgagee who in"tt appiy the' paymentsto the corresponding mortgage indebtedness secured the particulirlot or unit beingpaid by for, with.a.view enabring to said buyerto obtaintifleover the lot or unit promptiy after full payment thereof. sEc' 19. Advertisements.- Advertisements may be madeby the owner that or developer throughnewspaper, radio,terevision, reaflets, ciicurar any'otherform or aboutthe subdivision the condominiunr its operations activities or or or muit reflect the realfactsand mustbe presented suchmanner will nottendto mislead deceive in that or thepublic. The owner or developershall be answerable and liable for the facilities, improvements, infrastructures otherformsof development or represented promised or in brochures, adverlisements othersalespropaganda and by 'shall-form disseminated the owneror developeror his agents and the same part of rhe saies waranties enforceable againstsaid owneror developer, joinflyand severally.Failureto compry withthesewarranties shallalsobe punishable accordance tirepenalties in with provided for in this Decree.
F,a

and shallconstruct SEC.20. Time of Completion.- Everyowneror developer provide the facilities,improvements, and other forms of development, infrastructures in which are offeredand indicated the facilities, including water supplyand lighting printedmatters, prospectus, plans,brochures, or subdivision condominium approved of yearfromthe dateof the issuance withinone letiersor in any formof advertisement, project such otherperiodof time as or or for the license the subdivision condominium maybe fixedby the AuthoritY. lots of sEc. 21. SalesPriorto Decree.- In cases subdivision or condominium upon of of unitssold or disposed priorto the effectivity this Decree,it shallbe incumbent project to complete or the owner or developerof the subdivision condominium preceding sectionwithintwo in as with his or its obligations provided the compliance or by extended the Authority unless otherwise unless yearsfromthe dateof this Decree 6 Section hereof. with performance bondis filedin accordance an adequate underthis and to of Failure the owneror developer complywith the obligations punishable undersections38 and a provisions shallconstitute violation the preceding 39 of thisDecree. shallchangeor alter sEc. 22. Alterationof Plans. - No owneror developer for facilities publicuse and/orother form of the roads,open spaces,infrastructures, in the approvedsubdivisionplan and/or as subdivisiondevelopment contained withoutthe permission of the Authorityand the its advertisements, i"pr.r"nt"o in or association, in the homeowners' of or wiittenconformity consent the duly organized in of by of absence the laiter, the majority the lot buyers the subdivision. payment madeby a of sEc. 23. Non-Forfeiture Payments. - No installment pro or buyerin a subdivision condominium in shallbe forfeited favorof the owneror d fromfurthet desists the owneror developer,

the legalrate. s E c . 2 4 ' F a i | u r e t o P a y | n s t a | | m e n t s . . T h e r i g h t s o f t h e b u y e r i n t h e eore n t o f v otherthanthe failureof the owner due his failureto pay the installments for reasons Act by shallbe governed Republic No.6552 the to Jeveloper develop project Where the transactionor contractwas entered into prior to the effectivityof to buyershallbe entitled the the on Act Republic No.6552 August26,1972, defaulting of paid refundbased6n the installments afterthe effectivity the law in corlesfonOing in the absenceof any provision the contraclto the contrary' sEc.25.lssuanceofTit|e..Theownerordevelopersha|lde|iverthetitleof those of the lot or unit to the buyeruponfull payment the lot or unit. No fees,except for requireO the registrationol the de6Oof sale in the Registry of Deeds, shall be over the lot or unit is of for collected the issuance suchtitle. In the eventa mortgage of at outstanding the timeof the issuance the titleto the buyer,the owneror developer from withinsix months portion thereof or the corresponding shallredeemthe mortgage such issuancein ordei that the title over any fully paid lot or unit may be securedand herewith' to delivered the buyerin accordance 59

SEC.26. RealtyTax. - Realestate andassessment a lot or unitshallbe tax on paidby the owneror developer without recowse the buyerfor as longas the titlehas to not passed the buyer; Provided, however, that if the buyer has actually taken possession and occupied lot or unit,he shallbe liableto the owneror developer of the for suchtax and assessment effective yearfollowing the suchtakingof possession and occupancy. SEC,27. Other Charges. - No owneror developer shalllevy uponany lot or unitbuyera fee for an alleged community benefit.Feesto finance services common for comfort, security and sanitation may be collected only by a properly organized homeowners association onlywiththe consent a majority the lot or unitbuyers and of of actually residingin the subdivision condominium or project. SEC. 28. Access to Public Offices in the Subdivision. - No owner or developer shall deny any person free access to any governmentoffice or public establishment located withinthe subdivision whichmay be reached or only by passing through subdivision. the sEc' 29. Right of way to pubric Road. - The owner or deveroper a of subdivision withoutaccessto any existing publicroad or streetand such rightof way must be developed and maintained according the requirement the g6vernment to of authorities concerned. . . sEc. 30. organization of HomeownersAssociation. - The owner or developerof a subdivision projector condominium projectshall initiatethe organization of a homeowners association amongthe buyersand residents the projeJts the of for purpose promoting protecting of and theirmutual interest and assistin theii community development. Sec' 3'l' Donationof Roadsand open spaces to LocarGovernment.- The registeredowner or developerof the s

any other purposeor purposesunless after hearing,the proposed converslon is approved the Authority. by sEc. 32. Phases of subdivision. - For purposes comprying of with the provisions this Decree,the owneror deveroper of may dividetne devebi#erit and sale of the subdivision phases, into eachphaseto covernot ressthanten troineciares. rne requirement imposedby this Decreeon the subdivision a whole shall be deemed as imposed eachphase. on stipulation, provision . 9Eq. 33. Nullity of Waivers. _ Any condition, or in contractof sale wherebyany personwaivescompriance wiih any prwilion or tnis Decree of any ruleor regulation or issued thereunder'shall void. be sEc. 34. visitoriar powers. - This Authority, throughits dury authorized representative may, at any time, make an examination into the businessaffairs, administration, condition any person,corporation, and of partnership, coopeiatiue, or association engaged the business selling in of subdivision and condominium lbts unrts. 60

For this purpose, officialauthorized do so shallhave the authority examine the to to under oath the directors, officers, stockholdersor members of any corporation, partnership, association, cooperative otherpersonsassociated connected or or with the businessand to issue subpoenaor subpoenaduces tecum in relation to any investigation mayarisetherefrom. that The Authoritymay also authorizethe Provincial, City or MunicipalEngineer,as whether inspection the project determine to the the casemaybe,to conduct ocular an of prescribed by and specifications to development said projectconforms the standards of government. the to belonging the personor The books, papers,letters,and other documents by shall be open to inspection the Authorityor its duly entitiesherein mentioned reoresentatives. authorized SEC. 35. Take-OverDevelopment. - The Authority,may take-overor cause projectat the or of and completion the subdivision condominium the development jointlyand severally, caseswherethe owneror in of expense the owneror developer, of completethe development the Project developerhas refusedor failedto developor for as provided in thisDecree. demand,collect and receivefrom the The Authoritymay, after such tiake-over, paymentsdue on the lots, which shall be utilizedfor the buyers the installment of development the subdivision. shallissuethe necessary SEG.36. Rules and Regulations. - The Authority of of for rulesand regulations the effectiveimplementation the provisions this standards aftertheir take effectimmediately shall rulesand regulations Decree. Suchstandards, of weeks in any newspaper publication three (3) times a week for tvvoconsecutive general circulation. sEG. 37. Deputizationof Law EnforcementAgencies. - The Authoritymay of agencyin the execution or constabulary any lawenforcement the deputize Philippine or rulings decisions. its finalorders, SEc. 38. Administrative Fines, . The Authoritymay prescribeand impose or of of pesosfor violations the provisions this.Decree ten finesnot exceeding thousand Authority and of any rule or rejulation thereunder. Fines shalt be payable to the of with the provisions the Rulesof in enforjeablethroughwrits of execution accordance Court. of sEc. 39. Penahies. - Any personwho shallviolateany of the provisions this to that and/orany ruleor regulation may be issuedpursuant this Dcreeshall, Decree (P20,000.o0) thousand by be uponconviction, punished a fine of nor morethantwenty that-in case the of pesosand/orimprisonment not morethanten (10)years. Provided, or Manager the President, partnerships, or cooperatives, associations, of corporations, shall of who has chargeof the administration the business or Administrator the person andlorthe rulesand regulations ol for responsible anyviolation thisDecree be criminally pursuant promulgated thereto.

61

SEC. 40. Liability of Controlling Persons. - Everypersonwho directlyor of or indirectly controls any personliableunderany provision this Decree of any ruleor jointlyand severally with and to the same issuedthereunder regulation shallbe liable personunless controlling personactedin goodfaithand as such controlled the extent did not directlyor indirectlyinducethe act or acts constituting violationor causeof the action. provided this Decree SEC.41. Other Remedies.- The rightsand remedies in shallbe in addition any and all otherrights to and remedies may be available that under the existing laws. SEC.42. Repealing Clause. - All laws,executive order,rulesand regulations, or partsthereofinconsistent the provisions this Decreeare herebyrepealed with of or modified accordingly. SEC.43. Effectivity. - ThisDecree shalltakeeffectuponits approval. DONEin the Cityof Manila, 12th of July,in the yearof our Lord,nineteen this day hundred seventy-six. and (SGD.) FERDINAND MARCOS E. President Republic the Philippines of

By the President:

(sGD.)JACOBOC. CLAVE Presidential Executive Assistant

oz

NO. DECREE 1216 PRESIDENT]AL AND AMENDING SUBDIVISION "OPENSPACE"IN RESIDENTIAL DEFTNING SUBDIVISION NO,957REQUIRING OECREE 31 SECTION OF PRESIDENTIAL OPENFOR AND RESERVE ALLEYS,SIDEWALKS ROADS, TO OWNERS PROVIDE USE PARKSOR RECREATIONAL WHEREAS, there is a compelling need to create and maintain a healthy by in environment human settlements providingopen spaces, roads, alleys and sidewalksas may be deemedsuitableto enhancethe quality of life of the residents, therein; WHEREAS,such open spaces, roads, alleys and sidewalksin residential of the beyond commerce men; useandare,therefore, are subdivision for public (30%) No. Decree 953 at leastthirtypercent pursuant presidential to WHEREAS, as open and maintained developed must be reserved, of the total area of a subdivision be whichwill untimately borneby the the areas, costof spacefor parksand recreational lots beyondthe price of subdivision tot uuy"rt which therebyincreasethe acquisition mass; reachof the common WHEREAS,thirtypercent(30%)requiredopenspacecanbereducedtoa|eve| lots and industry'viable the price of the residential within that will make the subdivision and the the meansof the low incomegroupand at the same preserve environmental of rat'r6nal'controlthe land use and properdesignof space through balance ecotogical andfacilities; WHEREAS,pursuanttoPresidentialDecreeNo'757'governmenteffortsin maximizeresults have been housing,including,"rori."., functionsand activities authority; Housing the namely' National into concentrated oneslngleagency, Now,THEREFoRE,|,FERDINANDE.MARcos,PresidentofthePhi|ippines' byvirtueoft'hepowersvestedinmebytheConstitution,doherebyorderanddecree: meanan "openspace"shall. the of 1. SECTION For purposes this Decree' term uses, schools,roads, recreational parks,ptaygrounds, area reserved facilities and othersimilar centers "r"tr"iuury-i5i barangay centers, nospitit,heatth ;i;;;;;;;nif, andamenities.

to DecreeNo. 957 is herebyamended 31 sEcTloN 2. Section of Presidential readas follows: - The 31. Roads,Alleys, Sidewalksand Open Spaces' SECTTON ownerordeve|operofasubdivisionsha||provideadequateroads,a||eysand s i d e w a | k s . F o r s u b d i v i s i o n p r o j e c t s o n e ( 1 ) h e c t a r e o r m o r e , t h eopene r o r m o r e own thirtypercent iso%) ot the grossareafor openspace. such shallreserve for parks, space shall have' the foliowingstandirds allocatedexclusively use: and playgrounds recreational a. (66 or 9% of grossareafor highdensity socialhousing to 100family lot pergrosshectare). 63

o.

(21 65 7% of grossareafor medium-density economic housing or family lot pergrosshectare). 3.5% of gross area for low-density open markethousing(20 or familylotsand belowpergrosshectare).

Theseareasreserye parks,playgrounds recreational shall be nonfor and use publiclands,and non-buildable. plansof the subdivision alienable The project shall includetree-planting such parts of the subdivision may be designated the on as by Authority. Upontheircompletion certified by the Authority, roads, as to the alleys, sidewalks and playgrounds shallbe donated the owneror developer the city or municipality by to and it shall be mandatory the localgovernments acceptprovided, for to however, thai the parks and playgrounds may be donatedto the Homeowners association the of pro.iect consent the city or municipality with of concerned.No portion the parksand of playgrounds donated thereafter shallbe converted anyotherpurpose purposes. to or sEcrloN 3. sections2 and s of presidentiar DecreeNo. 953 are hereby repealed and otherlaws,decrees, executive orders, institutions rulesand regulations or parts thereof inconsistent with these provisions are also repealed or amended accordingly. SECTION ThisDecree 4. shalltakeeffect immediately. Done in rhe city of this day of october in the year of our Lord, . .Manira, 14tb nineteen hundred seventy and seven. (sGD.)FERDTNAND MARCOS E. President the philippines of

By thePresident: (scD.)JUANC. TUVERA Presidential Assistant

64

HSRG Administrative OrderNo. 82-01 Seriesof 1982 NO. DECREE ANDREGULATIONS IMPLEMENTING 3I OF PRESIDENTIAL SEC. RULES NO. BY OECREE 1216 957,AS AMENDED PRESEIDENTIAL rulesare lV, OrderNo.648,thefollowing Pursuant Article Sec.5 (c)of Executive to 1216. by No. promulgatedimplement 31 of P.D. 957,as amended P.D.No. Sec. to RuleI PROVISIONS GENERAL shall be knownas the subdivision Section 1. Title. These Rulesand Regulations refened as the Rules. to hereinafter of Regulations Donations RoadLotsandOpenSpaces, on Section2.9s9p.9-qlAppls4!ip-l'TheseRu|essha||app|yon|ytosubdivisionprojects Commission. Regulatory by andiorticensed the HumanSettlements dulyregistered Section3.Dce!erg!i-9l.9fEo]Lc.i-e9'|tisthepo|icyofthegovernmenttocreateand roads,alleys, openSpaces, by rn environment numanSettlements proViding a maintain healthy therein. of the to suitable enhance quality lifeof the residents as andsidewalks maybe deemed Rulell OF DEFINITION TERMS of Section 4. gefinitiol of Terms. For purposes theseRules: a) b) Commission Regulatory Settlements Commission shallmeanthe Human Project- shall mean a tract Subdivision primarilyfor resident which is partitioned to lhereon, offered the and improvements ir commercial, all shallinclude residential, public areasin the project; and andothercommunity spaces playgrounds' Open space - shall mean an area reserved exclusivelyfor parks' and amenities' uses,and othersimilarfacilities recreational strips,and its gutters' alleysand planting Road lots - shall includeroads,sidewalks, and sewerage. drainage Rulelll FOR OF APPROVAL APPLICATION OF CERTIFICATE COMPLETION section 5. Application for Gertificate of completion. Every registeredowner or the road lots and opensp?ceof the prolEct wno wishesto donate ot developer a subdVision of for withthe Commission Certificate Completion snalt sameto the localGovernment firstapply the by filingin triplicate following:
1)

c) ' d)

2)

applicationform duly filled up; and letierof Intentto Donatethe road lots and open spaceio the local Government.

65

Section 6. Procedures. Upon receiptof the application, the Commission in coordination the City/Municipality with concerned shallconduct inspection the subdivision. an of The inspector(s)shall then prepare his/her findings and/or recommendation the to Commissioner-in-charge willacton thesame. who Section Z. AppfSyel. lf the facts statedin the application Certificate Completion for of are foundto be trueand correct, application the shallbe approved through issuance the the of Certiticate Completion the Commission. of by Thereafter, registered the owneror developer shallsubmitthe Certificate complefron of issuedby the Commission the City/Municipality to concerned together with his/herDeed of Donation. RulelV EFFECTS DONATION ROADLOTS/OPEN OF OF SPACE Section8. Riqht of Graetee DonateRoadLots and OpenSDace.Any person to who is able to securea Certificate Completion of fromthe Commission snilt navetne riohtto donate the road lols and open space to the city/Municipality provided concerned, tha-t the parks, playgrounds and recreational may be donatedto the Homeowners use Association the of subdivision the consent the City/Municipality with of concerned. Section 9. -E,f-fectC. Oncethe registered owneror developer securedthe Certificate has of comp{etion hasexecuted Deedof Donation RoadLotsand OpenSpace, and a of he/she shall be deemedrelieved the responsibility maintaining road lots and open spaceof the of of the subdivision notwithstanding refusal City/Municipality the of concerned accept donation. to the should the registered owneror deveroper merelysecurea certificate completion of wthout makjng_ correspondilgdeed of donation, the he/sireis still deemedresponsibie the for maintenance the subdivision of facilities whichcasea reasonable in amounl the performance of bond shall reservedto guarantee maintenance the road and open the of ThL reserved amount.shall totarry be rereased the commission by onlyuponshowing "p""". by ihe registereo owner or developer proofof a deedof donation of executed fivor of the city'/Municiparty in concerneo. qandOpenSpace. Roadlotsandopenspaces unicipality to the Homeowners or Association as purpose purposes.In connection or therewith, essential lhe saidopenspaceas deterrnined the City/Municipaliiy. to by

arienabre and buirdins rands, no orstructure .r:"'i;Jlfi?fj[nilff"?1"j;t'ir".,3i'1n13n"3

should the owner-donee wish changeor arterthe use of the _to subdivision, permission the commission *ritt"n conformity open space in the prior from of the duryorganrzeo nomeowners "nJ association, in the absenceof the ratterby the majorityof tne rot buyers or in the subdivision shallbe required provided the required that openspaceshalllikewise allocated be in otherareasof the subdivision. Rule V MISCELLANEIOUS PROVISIONS Section 11. Eqes. Untilsuch time that the Commission shall have adopted a new scheduleof fees, it shatt apply and collectthe insfection.fees provided for under the implementing of pD 9S7and its related rules faws.

66

Clause. The provisions theserulesare herebydeclared of Section 12. Separabilitv of provisions declared and void,the validity all null are and separable, in the eventany of such thereby. shallnot be affected otherprovisions in after immediately its publication Section13. EffeclMy. Theserulesshalltakeeffect circulation. of general a newspaper Makati, MetroManila. 26 Promulgated, August1982,

C. (sGD.) ERNESTO MENOIOLA and Commissioner Officer ChiefExecutive C. (sGD.) ARTURO CORONA Commissioner P. (sGD.) SALVADOR SOCRATES Commissioner O. (sGD.) GESAR MARQUEZ Commissioner

(SGD.) JESUSN, BORROMEO Commissioner

(SGD.) ABNERP. CANLAS Commissioner (SGD,) RAMON CARDENA B. Commissioner

Attested:

(SGD.) EUFEMIO DACANAY P. Secretary ActingCommission

o/

ANNEX B THECONOOMINIUM ACT ANACTTO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS ITSCREATION, GOVERN FOR AND tTS|NCIDENTS. (Rep. No.4Z2O) Act sEcrloN 1. Theshort of thisActshatbe "The tite condominium Act." sEc'|oN 2. A condominium an interest.in property is rear consisting a of separate interest a unit in residentiar, in industriar commerciar or buirdinq an .a and undivided interesr common in direcryor inoirectry,-initr" i";;';;;;i, ii,."r'oL,"o uno in othercommon areasof the building. .otiiorinium may incrude, I in adcrition, a separate interest otheroortions.of in suih legrproperty. Tiiletd tnecommonlr.a, may be held by a corporation speciaily tormeo -which toiin6lurpo"" (hereinafter knownas the "condominium corporation';) in tn" iif ro!* of separate interests shall automaticafly members sharehorders, be or to th; exctusion ot'oineis, in'prJiortion to theappurtenant interest theirrespectiu" inln" common of unit. areas. The interests condominium be ownership in may property recognized therawof property'in civircoie or any other interestIn real by tne a.J .i',", i"rtiri;;l;*". SECTION As usedin thisAct,unless context 3. the otherwise requires: (a) meansa condominium defined the text preceding as in i!ffir'n'rr"
(b) "Unit"meansa ecl intendedfor any type of independentus I or more rooms or spaces locaied in one c ts of floors)in a building or buildings *u, :ndedthereto. "nJ (c) "project" means entireparcer rearproperty the of divided to be divided or in condominiums, including shuctures ali thereon.

to'

n?"T[:T,;ff:;[:fl:rhe

enrire projecr excepting units ar separatery

(e) "To divide" rear.propertymeans to divide the ownershipthereof or other interest therein,.by co-nvbying iirJr" condominiums thereinbut ress thanthe wholethereof. "n" sEctoN 4. The orovisions this Act of shat appryro propertydividedor to be divided intocondominiums,only ii'thl[ ;i]iil;fted in the Register Deedsof the of provinceor city in which the'prop"rtl;, 'iriii"l]tt"."n"i'01#l"tenteo in the corresponding certificate tifle of the rand, of """0"i""rv"nnotated or registered undereither

68

the Land Registrationor cadastral Acts, an enabling or master deed which shall contain, amongothers, following: the (a) Description the land on whichthe buildingor buildings of and improvements are to be located; (b) Description the building buildings, of or statingthe numtlerof storeysand basements, numberof unitsand theiraccessories, any; the if (c) Description the commonareasand facilities; of (d) A statement the exactnatureof the interest of acquiredor to be acquiredby the purchaser in lhe separate units and in the @mmon areas of the condominiumproject. Where title to or the appurtenantinterest in the to areasis to be held by a condominium a common corporation, statement thiseffectshallbe included; (e) Statement the purposesfor which the buildingor buildingsand each of of as or the unitsare intended restricted to use; (f) if ownerof the property, he is otherthan those A certificate the registered of holdersof any lien or executing masterdeed,as well as of all registered the of on encumbrance the property,that they consentto the registration the deed,

plansshallbe appended the deed as integralpartsthereof. to (S) The following 1. 2. A surveyplan of the land includedin the project,unlessa surveyplan beenfiledin saidoffice; had of the sameproperty previously each unit, its floor plan of the buildingor buildings A diagrammatic dimensions. location approximate and relative

(h) Any reasonablerestrictionnot contrary to law, morals, or public policy ownerto alienateor disposeof his the regarding right of any condominium condominium. of uponregistration an or deedmaybe amended revoked or The enabling master propertyand consentedto by all instrument executedby the registeredowner of the or or holdersof any lienor encumbrance landor building porlion,thereof. registered owners condominiums of the shallinclude registered owner" Theterm"registered provisions thisAct shallcontinue of the of in the project.Unitregistration a revocation, to applyto suchproperty. (Amended R.A.7899,as follows) by

69

REPUBLIC ACTNO.7899 AN ACT AMENDING SECTION FOURANDSECTION SIXTEEN REPUBLIC OF ACT NUMBERED FOURTHOUSAND SEVENHUNDRED TWENW.SIX, OTHERWISE KNOWN "THECONDOMINIUM AS ACT" Be it enacted by the Senate and House of Representatives of the Philippinesin Congressassembled: sEcrloN 1. section 4, last paragraph of Repubric Act No. 4726is hereby amendedas follors: SECTfON xxx 4. - "The enabling or master ded may be amended or revoked upon registration of an instrument executed by a simple majofity of the registered owners of the propefi: Provided, That in a condominiuni pr6;ect exclusively for either residentialor commercialuse, simple majority shail bL on a per unlt of ownerchip basis and that in the case of mixed us-e, simple majority shall be on a floor-area. of ownership basis: provided, fuilter, That priorhotif,icatlons to alt registered owners are done: and provided, finally, That any amendment or revocationalreadydecidedby a simple majorityof ail registerei ownersshall be submittedto the Housinga-nd Land Use Regulitory Boarl and the city/municipal engineer for approvar oero,re it can be iegistr-reo. untir registiation of a re'ocation, the provisions of this Act shail continue to apply to Juch property". xxx sEcrloN 5. Any transferor conveyance a unit or an apartment, of officeor store or other space therein,shall includethe transferor conveyance the of undivided rrcase, the membership shareholdings or in lwever,Thatwere the commonareasin the s of separateunitsas co_ovvners thereol no Filipino citizens, exceptin casesof hereditary succession.\Mere the @mmonareasrn a.condominium projectare herdby a corporation, transferor *nu"y"n"" no of a unit shallbe validif the concomitant transferoithe appurtenant membership stockhording or in the corporation causethe alien interestin'sucn corporation will to exceedthe limits imposed existing by laws. sEcrloN 6. unress otherwiseexpressryprovidedin the enabring deed or the declarationof restrictions, incidentsof a condominium or master the g"rant are as follows: (a) The boundary the unit grantedare the interiorsurfaces of of the perimeter wa[s, floors,ceirings, windowsand door thereof. The foilowinj ir6 not p".t of the unit: bearing walls, columns, floors, roofs, foundatids and other commonstructural elements the buildino. of tofrbir areascommonuse;elevafor equ reftigerationand central air cr pumpsand other centralservicer 70

Flipino citizenscorporation .ri:t"fi:'1Ti,:',T,"f-fiffi::r"ffilnfi: or at-reast

n'

conduits,wires and other utility installations, whereverlocated,exceptthe outletsthereofwhen locatedwithinthe unit(b) There shall pass with the unit, as an appurtenance thereof,an exclusive

easementfor the use of the air space encompassed the boundaries of by the unit as it exists at any particulartime and as the unit may lawfullybe altered or reconstructed from time to time. Such easement shall be automatically terminated any air spaceupondestruclion the unitas to in of render untenantable. it (c) Unlessotherwiseprovided,the commonareas are held in commonby the holders units,in equalshareonefor eachunit. of
(d) A non-exclusive easementfor ingress,egress and supportthroughthe

areas are common areas in appurtenantto each unit and the c,ommon subjectto sucheasements repaint, tile, rightto paint, (e) Eachcondominium ownershallhavethe exclusive the refinishand decorate innersurfaceof the walls, wax, paperor otherwise his ownunit. floors, windows doorsbounding and ceilings, (0 pledge rightto mortgage, ownershallhavethe exclusive Eachcondominium or encumber his condominiumand to have the same appraised to owneris personal him' of independently the othercondominium

of rightto sell or dispose ownerhas also the absolute (s) Eachcondominium that requirement the a unlessthe masterdeed contains his condominium property be first offered to the condominiumowners within reasonable periodsof time beforethe same is offeredto outsideparties; sEcTloN 7. Except as providedin the followingsection,the common areas partition thereof' and undivided, thereshallbe no iudicial shallremain in sEcTloN 8. where severalpersonsown condominium a condominium project,an action may be broughtby one more such personsfor partitionthereof by in iat6 of the entireproject,as if the o\ /nersof all the condominiums such projectwere in as @-ownersof all the entire projectin the same proportion their interests the shall be made only upon a however,That a partition commonareas: Provided, showing: to (a) That 3 years afier damageor destruction the projectswhich rendersa part thereofunfit for its use priorthereto,the proiecthas not been materiai to rebuiltor repairedsubstantialty its statepriorto its damageor destruction; or one-halfor moreof to (b) That damageor destruction the projecthas rendered and that condominiumowners holding in the units therein untenantable interestin the commonareas are opposedto aggregatemore than 30o/o or of repairor restoration the projects; (c) That the proiect has been in existencein excess of 50 year, that it is obsolete and uneconomic, and that condominiumonrners holding in 71

aggregatemore than 50% in the commonareas are opposedto repair or restoration modeling modernization the project;or or or of (d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominiumowners holding aggregate more than 70olointerest in the common areas are opposedto continuation the condominium of regime afterexpropriation condemnation a material or proportion of thereof;or (e) That the conditions such partitionby sale set forth in the declaration for of restrictions duly registeredin accordance with the terms of this Act. have beenmet. sEcrloN 9. The owner of a project shail, prior to the conveyanceof any condominium therein, register declaration-or a restrictions relating suchproject, to which restrictions sball constitutea lien upon each condominium inite pide&s,'ano lnsureto and bindall condominium ownersin the projects. such liens,unlessothenrvise "narr provided' may be enforced by any condominium' owner in the project or by the management bodyof suchproject.The Register Deedsshallenteiand of tn" declaration restrictions of upon the certificaieof tifle coveringthe land includedwithin "nnotate tj5 Proiect, the land is patented registered if or underthe LandRegistration Cadastral or Acts. The decraration restrictions of shall provideficrthe management the projectby of anyone..of the fofiowingmanagementbodies: a condoriiniu, *rporliion, association the condominium of owners,a boardof govemorsetectedby condominium "n of'vners'. a management or agent erectedby the ownersor by the board named in the declaration. lt shail arsoprovidefor votingmajorities, quorums,notices,meetingdate, . and otherrulesgovemingsuch bodyor bodies. such decraration restrictions of amongthe otherthings,mayarsoprovide: (a) As to any management body 1. ' Fot the powerthereo( incruding powerto enforcethe provisions the of declarations restriciions: of 2' For maintenance_ insuranceporiciesinsuringcondominium of owners againstloss fire, casualty, iiability, workmen,s compensation .by other insurabre risks and for bonding ot ttre meriGd'-ot and .ny managernent body; Provisionsfor maintenance, utility, gardeningand other services benefting the common areas, for ihe operationof the building,and regar, accounting otherprofessionar technicar and aho se.;;, For purchase of mater,als,supplies and the like needed by the commonareas: For paymentof taxes and specialassessments which would be a lien upon the entire project common areas, and tor Olsctraige-oi .or -"r"a",any , encumbrance levaed againstthe entireprojectof the corn.on 72

3.

4. 5.

6. 7. 8.

For reconstruction any portion or portions of any clamageto or of destruction the projecl; of of The mannerfor delegation its powers; For entry by its officersand agents into any unit when necessaryin for or with the maintenance construction whichsuch body is connection responsible; For a power of attomey to the managementbody to sell the entire prolect for the benefit of all of the owners thereof when partition of the project may be authorizedunder Section I of this 46{, which said ownersregardless oowershali be bindinguponall of the condominium or of the theyassume obligations the restrictions not' of whether

That Provided, for (b) The mannerand procedure amendingsuch restrictions, of in theyvote of not lessthana majority interest the ownersis obtained; body; of auditof the accounts the management (c) For independent (d)Forreasonab|eassessmentstomeetauthorizedexpenditures'each condominiumunittobeassessedseparate|yforitsshareofsuchexpenses to (unlessothelwiseprovided) its power'sfractionalinterestin in proportion areas; anycommon (e)Forthesubordinationofthe|ienssecuringsuchassessmentstootherliens described; or eithergenerally specifically I for rrovided in Section and 13 of thisAct' of lect and dissolution the condominium to partitionor dissolutionmay be h right owners to rebuild within a condominium o' percentase damaSe certainperiodor upon specified 9f l:,Ih1!:l|9]nn' uponadecisionofanarbitrator,oruponanyotherreasonableconoltlon' SECTION'10'Wheneverthecommonareastnacondominiumprojectareheld body the rtionshallconstitute management shall be limitedto the sucn a corporation ershipor any other interestin real property :he project,and to such other purposesas of t to the accomplishment said purposes' with I provisioncontraryto or inconsistent master deed, or the declarationof restri of regardless wf corporation .. ,r .-.L: ir . condominium ^rfrom the condominiumunit of which it rs an shall not be transferables6parately @asesto own a unit in the proiectin vvhena ,em-6", or i stockholder appurtenance. owns or holds the common areas' he shall coiporation which the condominium corporation' of or ceaseto Oea mbmber stockholder the condominium automatically

sEcTloNll'Thetermofacondominiumcorporationshallbeco-terminous law of project, provisions the corporation to the the of the duration the condominium notwithstanding. contrary
for corporation of dissolution a condominium sEcTloN 12. In caseof involuntary by any of the causesprovided law,the @mmonareasownedor held by the corporation to and bL UVway of liquidation, transfenedpro-indiviso in proportion their interest inifr, rights to subject the superior thereof, or io in in" cirrpoi"tion the members stockholders shall be deemedto be full ot tne coiporationcreditors. Such transferor conveyance in of liquidation the interestof such membersor stockholders the corporation After provisionsof this Act goveming undividedconsuch transfer or conveyance,the projects shall areasin condominium in, interest the common of, ownership or undivided fullyapply. sEcTloN 13. Until enablingor the masterdeed of the projectin which the owns or holdsthe commonareas is revoked,the Corporation corporation condominium underRule104of the for an through action dissolution dissolved shallnot be voluntarily Rulesof courtexceptupona showing: (a) That 3 years after damage or destructionto the project in which the owns or holdsthe commonareas,which damageor destruction corporation rendersa materialpart thereofunfitfor its use priorthereto,the projecthas to substantially its statepriorto its damageor not beenrebuiltor repaired or destruction; (b) The damageor destruction the projecthas renderedone-halfor moreof to of and the unitsthereinuntenantable that morethan 30% of the members morethan 30 representing or if the corporation, non-stock, the shareholders are % of the capitalstock entitiesto vote, if a stockcorporation, opposedto of the repairor reconstruction the project;or (c) That the project has been in existencein excess of 50 years, that it is of and uneconomical, that morethan 50%of the members the and obsolete percent representing morethan 50 if or corporation non-stock, stockholders are of the capitalstockentitledto vote,if a stockcorporation, opposedto the project; or repairor restoration remodeling modernizing the or or of (d) That the project or material part thereof has been condemned or and that the projectis no longerviable or that the members expropriated morethan 70% interesiin the corporation non-stock, if holdingin aggregate representing more than TOYo the capitalstockentitled of or the stockholders to vote, if a stock corporation,are opposed to the continuationof the condominiumregime after expropriationor condemnationof a material portion thereof;or (e) That the conditions such a dissolution forth in the declaration of for set project in which the corporationowns or holds the restrictionsof the @mmonareas.havebeenmet.

74

may also be dissolvedby the corporation SECTION14. The condominium thereof at a general or special or affirmativevote of all the stockholders members 62 of Thatall the requirements Section meeting dulycalledfor the purpose:Provided, with. Law of the Corporation are complied provided in the declaration restrictions, of for SECTION15. Unlessotherwise in accordancewith the upon voluntary dissolutionof a condominiumcorporation to shallbe deemed holda piovisions Section13 and 14 of thisAct, the corporation of to sell and disposeof their power of attorneyfrom all the membersor stockholders shall be effectedby a of separateinteresti in the projectand liquidation the corporation the whole thereol subjectto the owned saie of the entire projectas if the corporation creditors' condominium and rights the corporation of individual of sell, shall not, duringits existence, corporation sEcTloN 16. A condominium areasownedby or heldby it is in of dispose the common leaseor otherwise exchange, vote by project authorized the affirmative of all the stockholders unless thecondominium or memDers' as (Amended R'A' 7899, follows) by x x x SEC. 2. Section 16 of the same Act is hereby amendedto read as follows: sel|, "SEc. 16, A condominiumcorpoitttionsha|t not, during its existence,it in areasowned or held by leaseor otirerwisedisposeof the_common exchange, affirmative vote of a simple project unless authorized by the ine con-Oominium lt's: Provided, that prior notifications to all rd Provided, further, That the condominium Ite the projectwith anotherupon the affirmative r reqisteredowners' subject only to the final sgulatory Board." s E c . 3 . E f f e c t i v i t y . - T h i s A c t s h a | l t a k e e f f e c t f i f t e e n ( . | 5 ) d a y sgeneral afterits of compteG publication i'n at least two (2) national newspapers circulation. Approved, J, EDGARDO ANGARA of the Senate President JR. JOSEDEVENECIA, Speakerof the Houseof Representafives

ThisActwhichisaconso|idationofHouseBil|No.12384andsenateBi|| No.2042wasfina|typassedbytheHouseofRepresentativesandthesenateon 15, February 1995' E. EDGARDO TUMANGAN Secretaryof the Senate Approved:FEB.23,1995 FIDELV. RAMOS Presidentof the PhiliPPines 75

L. CAMILO SABIO General Secretary tati Houseof RePresen ves

SECTION 17. Any provisions of the Corporation Law to the contrary notwithstanding, the byJaws of a condominiumcorporation shall provide that a stockholders member shall not be entitled to demand payment of his shares or or interestin thosecaseswheresuch right is grantedunderthe Corporation Law unlesshe consents to sell his separate interest in the project to the corporationor to any purchaserof the corporation's choice who shall also buy from the cor@rationthe dissenting memberor stockholder's interest. In cases or disagreement to price,the as procedure forth in the appropriate set provision the Corporation of Law for vaiuationof shares shallbe allowed.The corporation shallhave2 yearswithinwhichto payfor the shares or furnish a purchaserof its choice from the time of award. All exoenses incurredin the liquidation the interestof the dissenting of memberor stockholder shall be bome by him. sEcrloN 18. upon registration an instrument of conveying condominium, a the Registerof Deeds shall, upon payment of the proper fees, ent,erand annotatethe conveyance the certifcale of title coveringthe land includedwithin the projectand on the transfereeshall be entifledcoveringthe land includedwithin the projJct and the transferee shall be entiiledto the issuance a,,condominium of owneris,,:'copy the of pertinentportionof such certificate tiile. said ,,condominium of owner,s" copy need not rgproduce o\ /nershipstatus or other condominiums the projec{. A'copy the in of rhe description land,a briefdescription condominium of of conveyed, nameand'personal circumstances the condominiumowner would be sufficiint for purposes of of the "condominium owner's" copyof the certificate tifle. No crnveyance condominiums of bf conveyance thereoffrom the owner of the )anied by a certificateof the rnanagement is in accordance with the provisions the of

returna copy of the deed of conveyance I to and stampedby the Register Deedsin the same manneras in of the case of registration of conveyance real properlyundersaid laws. or sEcilON 19. where the enabringor master cteed provides that the rancr included withina condominium project to be ownedin common the condominium are ownersthereinthe Registration Deedsmay,at the request by of ail the condominium -".n""r -of owners and upon surender of aI their "condominium .r" owner,s -pi"a, certiftcates tilleof the property of and issuea new one in the nameof saidcondominium ownersas pro-indiviso co-owners thereoi sEcroN 20. An assessment uponany condominium madein accrrdance with a duly registered declaration restrictions of snaitbe an obligation the ownerthereofat of the timethe assessment made. The amount any suchassessment is of prusany other chafges thereon,such as interesJ, gosts (incruding attorney,s fees) are penartres, as suchmay be provided in the decraration restiictions, for of shailbe and become rien a upon causesa not,ceof assessment be registered to with the negistei ot o;o ot tn" city or provincewheresuch. condominium proy6ct rocated. The noticeshail state the is amount suchassessment suchotherihargesrhereon ;rt;;;;i'rro'rizeo of and ; oy the declaration restrictions, description cdndominium ajainsi*ni"n of a of unit ""r" 76

has beenassessed, and the nameof the registered ownerthereof. Suchnoticeshallbe signed by an authorizedrepresentative the managementbody or as othenrvise of providedin the declarationof restrictions. Upon payment of said assessmentand bodyshallcauseto be registered chargesof othersatisfaction thereof,the management a release the lien. of Such lien shall be superior to all other liens registeredsubsequentto the exceptreal propertytax liens and exceptthat registration said noticeof assessment of thereofto any other may providefor the subordination declaration restrictions of the liensandencumbrances. Such liens may be enforcedin the same manner providedfor by law for the judicial or extra-judicial foreclosureof mortgagesor real property. Unless otherwise body shall have the of for orovided in the declaration the restrictions, management powerto bid at foreclosure ownershall have the same right of sale. The condominium judicialor extra-judicial of foreclosure mortgages. as redemption in casesof without the furnished or or 21. No laborperformed services materials SECTION his @ntractoror owner or his agent or consentof or at the requestof a condominium of be the basis of a lien against the condominium any other shall sub-contractor, to consented or requested suchotherownerhasexpressly owner,unless condominium or of performance such laboror furnishing such materials seryices. Suchexpress Of the in givenby the ownerof any condominium the shallbe deemedto have been consent or or unit. Laborperformed services repairsof his condominium case of emergency body by furnisnedfor the commonareas,if duly authorized the management materials deemedto governing property,shall be the of provided in a declaration restrictions for owner' The consentof eaChcondominium with the express or be performed furnished two a lienagainst of the from may ownerof any condominium removehis condominium to lien of the iractionof the totai sum securedby such lien which is attributable his unit. condominium of SECTION22. Unlessotherwiseprovidedfor by the declaration restrictions, of and ho|d,for the benefit the mayacquire for body,provided herein, the management owners,tangiblepersonalpropertyand may disposeof the same by sale condominium orotherwise;andthebene,ficialinterestinsuchpersona|propertysha||beownedbythe in interests the common as in owners the sameproportion theirrespective condominium transfereeownershipof the shall transferto the areas. A transferof a condominium property' in such personal inte!'est beneficial transferor's 23. Where,in an actionf< SECTION the ground that the project or a materi the expropriated, courtfinds that the conditi have not been met, the Court may decre which portionor portionsof the project shall just owners thereof, and the respective rights of the remaining owners and the of owner may be entitledto dle deprivation corpensation, if any, that a condominium enter of t i" dropert'. Uponieceiptof a copyof the decree,the Registration Deedsshall title. of certification the andannotate sameon the pertinent projeclshall be or sEcTloN 24. Anydeed,declaration plan for a condominium project,and its provisionsshall be liberatlyconstruedto facilitatethe operationof the presumed be independent severable. and to

SECTION25. Wheneverreal propertyhas been dividedinto condominiums, eachcondominium separately ownedshallbe separately assessed, purposes real for of property taxation and othertax purposes, the owners to thereofand tax on eachsuch condominium constitute liensolely shall a thereon. SECTION26' All acts or partsof Acts in conflictor inconsistent with this Act are herebyamendedinsofaras condominiums its incidents con@rned. and are SECTION ThisAct shailtakeeffectuponits approval. 27. Approved, June18,1966 J . D .O P t N t o N O .1 8 0 N Series 1973 of RE FOREIGN INVESTMENT LAND IN AND/OR BUILDINGS D e c . 2 11 9 7 3 , The ActingSecretary Trade of Quezon City Sir: This is with reference your reguestfor opinionon the forowing to quesrons regarding foreign Investment landsand/or in buildings: '-1 can foreigninvestors multinationar or corporations . own buirding units or (as thereof in condominium)? Apartments? "2. can therebe jointrcwnership 60 percentat 40 percent rand of and buirding betweenforeigninvestors and theirFilipino counieioarts?,,

Regardingthe ownership of condominiumunits by foreign investors or multinatronal corporation, reasbned in opinion.No_ cunent as out 175, series, supra, the same mav be atowed but subjecrto rhe qualifications mentioneJ';il; jtviso ot Section of R.A.No.4726whichneeds. 5 " Provided, however, That where the commonareas in the condominium project are owned by the owners of se

)n, no transfer conveyance a unitshall or of rppurtenant membership stockholding or in t ansuch corporation exceedthe limits to
78

of corporations As to the ownershipby foreign investorsor multinational Act the of whichdo notfallwithin purview the Condominium (R.A.No' 4726) aoartments prohibits aliensor foreign sufficeit to state that I am not aware of any law which so buildings, long,of course,as they will merely from owningapartment corporations ten for be constructed, a periodnot exceeding will leasethe landon whichthe building years. of Anent your secondquery,the followingprovisions ArticleXIV of the new pertinent. Constitution are of exploitation. utilization development, "section 9. The disposition, exploration, be limitedto citizensof the shall of of any of the naturalresources the Philippines of of at or or to corporations associations leastsixtyper centum the capital Philipbines, x whichis ownedby suchcitizens, x x may hold alienable or "section10 x x x No privatecorporations association lands of thi: public domain except by lease not to exceed one thousandhectaresin or hectares of holcl suchlandsby leasein excess fivehundred area;nor mayanycitizen acquirebypurchaseorhomesteadinexcessoftwenty.fourhectaresxxx. sEcT|oN14'saveincasesofhereditarySuccession,noprivate|andshallbe qualified to or corporations associations exceptto individuals, or transferred conveyeo " domain of or acquire holdlands thepublic

Uponthebasisoftheseprovisions,thefol|owingconc|usionsmaybemadeyour query: secono both private may as of 1. Onlycitizens the Philippines, individuals' acquire joint ownership of therecan be no landsand landsof the publicdomain. Therefore, are investors individuals and Filipinos foreign suchlandsbetween 2 . H o w e v e r , c o r p o r a t i o n s o r a s s o c i a t i o n s a t | e a s t 6 0 p e r c e n t oprlvale p i t a | ftheca may own by and stockoi whichis ownedby Filipinos, the remainder foreigners, lands. 3.corporat|onsorassociations--whetherofcitizensorofcitizensandaliens- maynotown,but mayonlyholdby leaselandsof publicdomatn 4'Astothe.,joinlownershipat60percent-40percentoflan-dsandbui|dings of as feasibte longas the ownership inl r"v be iegally ano investors Fitipinoi, foreign at orLssociJtions least60% of the capitalstockof is the land building UycorpoiatLns -by investors. by and citizens onlythe remainder the foreign *ni"n i. owned Filipino
Please be guided accordingly

Verytrulyyours,

(SGD) VTCENTE ABADSANTOS of Secretary Justice

(J

J . D .O P | N | O N O .1 7 s Series 1973 of RE FOREIGN INVESTMENT CONDOMINIUMSTHEPHILIPPINES IN IN Dec.12, 1973 The Secretary Tourism of Manila Sir: This has referenceto your request for opinion on the folowing questaons regarding foreign investment condominium the philippines. in in a) May 1000/o owned and controlled foreign firms set up condominiums corporations underRA 4726,il the land is leased? b) lf the answerin the afiirmative, wourda reasefor a periodof ninety_nine (99) yearsbe allowable? c) wourd a rease of the rand for a period of fifty (50) years renewabre for anotherper'odof fifty (SO)years,be legallytenaOteZ

I sharethis raterview of my predecessor office in and r herebyadoptthe same. You also profound, the case when on corporation whichownsthe landon whichtf whether interests unitsin the condominiun in commonareasthereofmay be transfuredto 80

The condominlum does not forbidthe transferto aliensof an interestin a unit Ac{ and the undivided interestin commonareas in a condominium.tt shouldbe notedthat only a "separateinterest'in a unit and an undividedinterestin the commonareas are what are transferred a matterof a courseto the granteeby virtue of condominium as grant. (Sec.2 and 5.) Moreover, paragraph of section defines'unit purposes (b) for 3 projectintendedfor any type of independent of the Act as "a part of condominium use "and paragraph of the samesectionin defining term 'to dividereal fror ownership, (e) the property" the condominium projectspeaksof dividingthe ownership in thereofor other interest therein.' But in this connection should be stressedthat section5 of the Act containsa it pertinent prohibition.Saidsectionreads: 'Any transferor conveyance a unit, or an apartmentoffice or store or other of in shallinclude transfer conveyance the undivided the interests the spacetherein, or of in common areas or, in a proper case, the membership shareholdings the or condominium corporation; Provided, however,that there were the commonareas in the condominiumprojec{are owned by the owners of separateunits as @-owners to thereof,no condominium thereinshall be conveyedor transferred personsother unit leasesixtypercent the capitalstockwhich or at of then Filipino citizens, corporations belong to Filipino citizens, except in cases of hereditarysuccession. Where the project are held by a corporation,no transfer or @mmon areas in a condominium conveyanceof a unit shall be valid if the concomitanttransfer of the appurtenant ce in in will membership stockholding the corporation be causethe alien interest such or by corporation exceedthe limitsimposed existinglaws.' to Applyingthe provisoin this sectionto the presentcase, the resultwould be so that should it be a case covered by the first sentenceof the proviso,no unit in the more than 40% of the may be transferred aliensor to corporation to condominium capitalstockof which is owned by aliens;and shouldit be case coveredby the second the sentence, transferto aliensof units in the projectmay be madeonly up to the point in or transferfor membership stockholding the @ndominium where the concomitant interest in such corporationto exceed 40% of its corporationwould not cause the alien entirecapitalstock. In resume and by way of emphasis,my conclusionson your queries are as iollows: a which is owned 100%by a foreignfirm may establish 1. Any corporation project land on 4726and set up a condominium underR.A. "condominium corporation" leasedfor a periodnot to exceed10 years. whichownsthe is corporation a Filipinocorporation 2. Vvhere condominium the project situated, to R.A. 4726allowsthe transfer an is landon whichthe condominium 'unit"in the saidcondominium, of an "undivided interest" in and in alienof an "interest" a mentionedin the proviso of the commonareas thereof, subject to the qualifications section 5 of said Act. Verytrulyyours, (SGD) VICENTE ABADSANTOS of Justice Secretary
81

ANNEXG PROPER COMMISSION NO. RESOLUTION R.53 of Series 1982 NO.45,S. 1982,OF THE RESOLUTION RATIFYING THE GRANTOF APPROVING COMMITTEE, EXECUTIVE OF TO RELATIVE THEIMPLEMENTATION VARIANCE FOR AND REQUIREMENTS STANDARDS THE DESIGN BY HSRCAND SUBDIVISION/CONDOMINIUM RESIDENTIAL CASESFORTHEGRANTOF THESAME OEFINING No. as that Resolution 45, Seriesof 1982,of RESOLVED, it is herebyresolved the grant of varianceto approving Committee this Commission, of the Executive for from the Design Standardsand Guidelines/Requirements residential deviations in in and subdivisions condominiums casesenumerated defined Annex"A' hereto and attached, pursuant to Section 't4 of the HSRC Revised Rules and Regulations Presidential DecreeNo. 957, be ratifiedand adopted,as it is hereby lmplementing ratified adooted. and MetroManila. APPROVED, 16April 1982 Makati, this at

C, SGD. ERNESTO MENDIOLA Commissioner Chief and Executive Officer CESAR MAROUEZ O. Commissioner SGD.ARTUROC. CORONA Commissioner SGD.RAYMUNDO DIZON. R. JR, Commissioner

N. SGD.JESUS BORROMEO Commissioner

ABERP. CANI.AS SGDCommissioner B. SGD.RAMON CARDENAS Commissioner P, SALVADOR SOCRATES Commissioner

ATTESTED: SGD.EUFEMIO DACANAY P. Commission Secretary

82

"A'' ANNEX VARIANCES Basis Concept : : Rulesand Regulations 14 Section of the HSRCRevised provides variances. for PD lmplementing 957 for residential Design Standards and Requirements may be modified by the subdivision/condominium Commission in cases as hereby explained and by the Human SettlementsRegulatory implemented Commission. Variances Variancesmay be allowed only under the following conditions: a. in cases of large scale governmentresidential prolects, such as New or subdivision condominium and the Bagong Town, PlannedUnit Development Program; SitesandServices Lipunan development in b. in casesof housing areasfor priority areas blighted or urbanland reformzones,including projects underthe UrbanReform and otheridentified Program; projects as and c. in casesof resettlement rehabilitation or of programmed the Ministry HumanSettlements by agencies; anyof its attached d. in cases of social housingprojectsorientedtowards of groupas defined the Ministry Human by lowincome Settlements; will hereof cause e. or, in caseswherestrictobservance or to extremehardship the subdivision condominium Such extreme hardship to the owner/developer. is subdivision or condominiumowner/developer as andexPlained follows: defined 1. The locationis unique and differentfrom the of locality, and because its uniqueness' adjacent returnon reasonable the ownerscan not obtain a proiects; subdivision/condominium the residential is 2. The hardship notself-created;

Features

83

The proposed variance is due to existing permanent structures (concrete/steel)and are necessary to permit a reasonable use of the subdivision/condominium; residential 4 . The variancewill not alter the essentialcharacter for subdivision wherethe residential of the location and will is whichthe variance sought,is located, conflictthe use of or not substantially permanently in other residentialsubdivision/condominium the those within one (1) same locality;particularly radiusthereof; kilometer 5. The variance will not give rise to unauthorized reclassification of the approved residential plan subdivision/condominium (i.e.whetherpartial of or full alteration the plan),and will not adversely affect the publichealth,safetyor generalwelfare, welfareof the with the general and is in keeping community.

84

Rc$$lic of ih! Phill0r'in6

Of{iccof thc President Housing and Urban Development Coondinating Council

BOARI) HOUSINGANDLAND USEREGULATORY

RESOLUTTON 19. 72s Serieg of 2002 AMENDING THE REVISED IMPLEMENTING RULES DECREE NO.957AND AND REGULATIONS FORPRESIDENTIAL BATASPAMBANSA NO,220 Rules (lRRs) WHEREAS,the HLURB Board approvedthe revisedlmplementing and Regulationsfor PD 957 and BP 22O through Res. Nos. 699 and 700, respectively,both Series of 2001; WHEREAS,in the light of the mandatesof the HLURB,this Board and the with stakeholdersto HUDCC jointly conduct continuing dialogue/consultation housing policies, rules and standards in support of recent policy harmonize. pronouncements the administration; of PD WHEREAS,pursuantto existinglaws, particularly 1308, otherwiseknownas in PlanningProfession the the Practiceof Environmental the Law Regulating the Rules and Regulationspromulgatedby the Professional Philippines,and Regulations Commissionpursuanttherel+ the scope of practioeof environmential schemesand site of planningincludes,among othersthe preparation conceptual plans for subdivisionproiectsfor residentialand other urban uses; development plannersis requiredto be affixedon and the signatureof licensedenvironmental saidplans; of this !,UHEREAS, Board fully supportsthe iminediateimplementation Executive prescribing time periods for issuance of housing related Order No. 45, certifications,clearances and permits and imposing sanctions for failure to observethe same; WHEREAS, various groups of real estate developers have brought to - the of attentionof HUDCC and this Board issues relativeto the implementation the revisedlRRs for PD 957 andBP 22O; WHEREAS, upon thorough review and evaluationof the issues raised by the developers'gioup, as well as the rationaland basis of their concerns,this Board finds some of their requesb reasonable; WIIEREFORE,be it RESOLVED,as it is hereby RESOLVED,that the following amendments to the revised implementing rules and regulations tor PD 957 and BP 220 approvedby virtue of HLURB ResolutionNos. R-699,and R-700,S. of 2001.beAPPROVED.

i i

e4'n
Avenue comerMayaman Street, Diliman,Quezon City HLURB Bldg.,Kalayaan

(Page of Board No.725 s of2oo2) Rrr. 2 , rules implementing 1. That,the price ceiling provisionin the revised (lRR)for both PD 957 andBP 220 be deletedbut and regulations standardsas prescribedthereinshall remain; 2. That, the provision in the lRRs requiring subdivision owner/developerto register as dealer be deleted and that registration as subdivision owner/developer be deemed registration dealer; as 3. That, the allocation of area requirement for parks and playgroundand community facilities prescribedfor economic to housing be amended readas follows: Rulell, Section5.C.1.b.1 b.1 Allocationof Area for Parksand Playgrounds
XXX

able 1: Parksand
ECONOMIC OUSING H

Allocation
HOUSING SOCIALIZED Oensity Allocation (No.of lots/OU' (% of grossarea per hectare) for PP..) 150andbelow 3.5 Vo - 160 151 4Yo 1 6 1- 1 7 5 5% 1 7 6- 2 0 0 6 0/. 201 - 225 7% Above 225 9V.

Density Allocation (No.of lots/Dut (% of grossarea for PP-.) oer hectare) 150and below 3 . 5% 1 5 1- 1 6 0 4% - 175 161 5% '176- 200 6'/n 201 - 225 7% Above225 9% * Dwelling units " Parksand Playgrounds

Rulell, Section 5.C.1.b.2 b.2 Area Allocatedfor CommunityFacilities

XXX

Table 3: Comm

Facilities Allocation
SOCIALIZED HOUSING Density Allocation (No.of lots/Du. (% of grossarea for CF..) oer hectare) 'l 50 and below 1,O 151- 225 A6oue 225 2.O

E C O N O M IH O U S I N G C Density Allocation (No. lots/Du. (% of grossarea of oerhectare) for CF--) 150 and below 1.O - 225 151 1.5 Above 225 2.0
Owelling **Community Facilities

W,,,r

g (Page of BoardRes.No. 725, s.of2oo2)

as planting of trees in areasdesignated requiring 4 . That, provision planting striP be deleted, 5 . That,the two (2) year vatidity of developmentpermit prescribed lRRsbe increasedto three (3) years; in the revised 6.

rulesand regulations; of the reviged 7.

socializedhousing Projects; futureprovision that The requirement structurat design consider of loft for socialized housing be deleted,

1988; 10.That, provisionsin the revisedlRRs for both PD 957 and BP all 220 affected and/or in conflicuinconsistentwith the above accordingly. cited amendmentsbe revisedand/orrenumbered City of Quezon APPROVED 16;s 19'tl6sy June2002,

T. 'I/IIGHAEZ DEFENSOR

icioCommissioner

ROMU and Commissioner ChiefExecutive Officer

(Pagc4 ot BoaK! rc" run 125. s ot 2ooz)

EDUARDO SOLIMAN. R. JR. Undersecretary, DILG Ex-Offi Commissioner cio

Commissioner

B. SANTOS Ex-Offi Commissioner cio

DPWH Ex-Officio Commissioner

PR(IIECTOrTHP--* AJOTNT DEVEI'OTMENI^GROTIP RULESANI; STANDARD6 ^""ffI;*i;ntfcunicll'woRKING-GxollP

^'-

IRR oF iiN TIIERDvIsroN THE

AUGUST2OOT TECTINICALWORKING GROIJP
ROQI.JEARRIETAMAGNO Chrirmn

Doan F- Ildro Arurollubldo J6e O. Pcir irfruelGfiPo Jcmlm Ittf Rrgdo Atr8t$trA, A8ldir

DEVEIOPMENT GROTJP AND STANDARDS RI,II,.ES

GRACIAM AI'{G GrouPllerd Tchnlcrl Strfi IvtrrbsrR Fdfurrdo Jenrhltrf,R4udo NemLhR Henrrndcz
Angclita A- Agurtil Julie A Torrcs Lloyd A" Slson AnbdbF.GEnril Jccltnr R- de Lrre