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)fficeof rhc President

HousingandUrban Developmenr
CoordinatingCorlncil

HOUSINGAND LAND USEREGULATORYBOARD

BOARD RESOLUTTON
NO. R
Series of 2001

699

AMENDINGTHE RULES AND REGULATIONS IMPLEMENTINGTHE

SUBDIVISIONAND CONDOMINIUMBUYER'S PROTECTIVEDECREE
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 ExecutiveOrder No. 90, s. of 1986;
I,VHEREAS, Section 36 0f pD 957 mandates HLURB to issue necessary
standards,rules and regulationsfor the effectiveimplementationof the provisions
of this Decree;
WHEREAS, the powers of HLURB to approve subdivisionplans has
been devolved to cities and municipalitiespursuant 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 promulgatedby HLURB;
WHEREAS, the signed Memorandum of Agreement (MOA) by and
betweenHLURB and the ProfessionalRegulationCommission(PRC)recognizes
the need to monitor the practice of licensed professionals in subdivision and
condominiumprojects;
WHEREAS, the Housingand Urban DevelopmentCoordinatingCouncil
(HUDCC) issued Council Res. No. 01, Series of 2000, approvingthe definition
of loan ceilings/limitsof housingpackages;
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 subdivisionand condominiumdevelopmentpermitsand licenses;
WHEREAS, the Board finds it necessary to harmonize the policies, rules,
standardsand procedureswith recentissuances;

HLURB Bldg., KalayaanAventrecomer MayamanStreet,Diliman, QuezonCity

(Pag2 of Boa.dRes.xo. n -6

9J

WHEREFORE,be it , RESOLVEDas it is hereby RESOLVEDthat the

RevisedlmplementingRulesand Regulationsto lmplementPD 957 , aftachedas
Annex1. be APPROVED.
of August2001, QuezonCity.
APPROVED,161"20dJt6sy

TIICHAE|rT.DEFENSOR

.CALIDA

6rsecretary,

gmh*
EDUARD/{

Undersecretary,
DrLql'/

ROiIULO Q. M.,FABUL

Commissioner
and
ChiefExecutiveOfficer

Commissioner

Commlssioner

hffE#f'='^

As'5i5tantSecretary,DPWH

NSANG

cretary

TABLE Of CON'TENTs
TITTE
RULE
I.

DESIGN
MINIMUi'
STANDARDS

Section
1. Design
Standards
andGuidelines
forResidential
Subdivision
Projects
Standards
andGuidelines
forResidential
Section
2. Design
Condominium
Projects
Projects
of Existing
Structures
to Condominium
Section3. Conversion
Section
4. Variances
RULE
II.

ZY

29

30

34

OFSUBDIVISION
REGISTRATION
ANDLICENSING
PROJECTS
ANDCONDOMINIUM

forRegistration
Section
7. Application
forLicense
toSell
Section
8. Application
Section
ofPublication
9. Notice
of Registration
Section
10. Certificate
toSell
11. License
Section
Bond
Section
12. Performance
V.
RULE

24

PLAN
APPROVAL
OFCONDOMINIUM

Plan
forApproval
ofCondominium
Section
6. Application
RULEIV,

PLAN
APPROVAL
OFSUBDIVISION

Plan
forApproval
ofSubdit
isionDevelopment
Section5. Application

RULE
m.

PTGE

?A

40
40
41
41
41

BROKERS
DEALERS,
REGISTRATION
OFREALESTATE
ANDSALESMEN

{orRegistration
andSalesmen
ofBrokers
Section13. Application
of Registration
Section
14. Certificate
15. Bonds
Section

42
42
43

TITTE
VI.
RULE

PIGE

tIISCELLANE0US
PRoVISIONS

Section
16. Definition
ofTerms
Section
17. Submission
of Semestral
Reports
onOperations
Section
18. Display
ofCertificate
ofRegistration
orLicense
toSell
Section
19. LostorDestroyed
Certificate
of Registration
orLicense
to Sell
Section20. Advertisement
Section
21, TimeofCompletion
Section
22. Transfer
ofOwnership
orChange
ofName
Section23. Alteration
of Plans
Section24. Non-forfeiture
ofPayments
Section
25. Registration
ofConveyances
Section26. Mortgages
Section27. Realty
TaxandOther
Charges
Section28. Complaints
Against
Owners,
Developers,
Dealers,
Brokers
andSalesmen
Section29. Administrative
Fines
Section30. Criminal
Penalties
Section
31. ldentification
ofLotSubject
ofSale
Section32. Broker/Salesman
asWitness
toSales
Section
33. Fees
Section
34. Applicability
Section35. Transitory
Provisions
Section
36. Separability
Clause
Section37. Effectivity

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

PAGE

TIIIE
LISTOFTABLES

Table1.
Table2'
Table3.
Table4.
Table5.
Table6.
Table7.
TableI.

6
andAbove
1 Hectare
of Roads
HierarchY
RoadRighfof-WaY
andSidmalks
Strips
ot-ptantlng
WiOtn
LotArea
Minimum
LotFronhge
Minimum

iilffi;;.ign

Pgect
Subdivision
foraResidential
Sia-noaros

8
10
13
14
18

PD957
Under

LISTOFFIGURES

Road
t AlongMainPublic

11
12
,tq

t forRowhouses

ANNEXES
AnnexA

AnnexB
lnn.* C

No 957
Decree
Presidential
No 1216
Decree
Presidential
Sec'31ofPD957
lmplementing
Rulesandnegulations
bYPD1216
asAmended
Act
TheCondominium
No.R-53(Variance)
Resolution

lll

50
65
68
82

REVISEDRULESAND REGULATIONS
THE
IMPLEMENTING
SUBDIVISIONAND GONDOMINIUM
BUYER'SPROTECTIVE
DECREE(pD 957)AND OTHERRELATEDLAWS
Pursuantto ArticlelV Sec{ion5 c) of ExecutiveOrderNo. 648 the following
rules are hereby promulgatedby the Housingand Land Use RegulatoryBoard
(HLURB)to implementPresidential
DecreeNos. 957, 1216,1344andotherrelated
laws applicableto open marketand mediumcost subdivisionand cpndominium
projects.

RULEI
MINIMUMDESIGNSTANDARDS
Section1. DesignStandardsfor Subdivision
Residentialsubdivisionprojecisshall conformwith the follorvingminimumdesign
standards,applicablelocal governmentunits'(LGU)zoningordinancesas well as
pertinentprovisionsof the National Building Code if project is with housing
component:

A. Site Griteria
'1. Location
Conformity
withZoningOrdinance/Comprehensive
LandUsePlan
Subdivisionprolects shatl be located in residential zones or other areas
appropriatefor residentialuses.lf thereis no ZoningOrdinanceor approved
ComprehensiveLand Use Plan, the dominantland use principleand site
suitabilityfactorscited hereinshall be used in determiningsuitabilityof a
pro1ect.
Subdivisionprojectssupportiveof other majorurlcanactivities(e.9. housing
for industrial workers) may be allored in area zoned for the said urban
activities.
2. PhysicalSuitability
Subdivisionprojectsshall be locatedwithin suitablesites for housingand
outsidehazardproneareasand protectionareasas providedfor by pertinent
laws. Criticalareas(e.9,areassubjec{to flooding,landslidesand thosewith
unstablesoil)mustbe avoided.
The site shall be stable enoughto accommodatefoundationload without
gradingor cuftingandfilling.
excessiveearthmoving,

*T,
-ri'

3. Accessibility
The site must be served by a road that is readilyaccessibleto public
lines. Saida@essroadshallconformwrththe standardsset
transportation
hereinto accommodateexpecteddemandcausedby the developmentof
the area. ln no case shall a subdivisionproJectbe approvedwithoutthe
necessaryaccessroad/right-of-way.
Saidaccessroadright-of-waymay be
constnrtedeitherby the developeror the localgovernmentunit.

B. PlanningConsideratlons
1. AreaPlannlng
projectsshalltake intoaccountthe
Planningand designingof subdivision
following:
a. safetyandgeneralwelfareofthe futureoccupants:
b. adequate, safe, efficient and integrativeroad circulation system
servicingeverylot therein;
c. judiciousallocationof landusesfor diversityand amenity:
d. preservation
of site:
e. propersitingor orientation
of lots;
f. harmonywithexistingandproposed
development
in thevicinity;
g. applicationof workable design principlesor parametersfor a well
plannedandself-sustaining
environment.
Whena developer
(PUD)
or plannersubmitsa PlannedUnitDevelopment
pro1ect,
of
likewise
type
the layout shall
conform to the stiandardsfor
projects.
residential/condominium
a. Openspaces
Open spaces shall conformto the provisionsof P.D. 1216 and its
implementing
rulesandshallincludethefollowing:
a.1 Streets- adeguateand safe means of vehicularand pedestrian
for utilitiesand plantingstrips,shallbe
circulation
and easements
orovided.
a,2 Walks - paved walks shall be providedto the living units ftom
streets,parkingspacesandfromlivingunitsto playareas
a.3 Parksand playground - suitablerecreationalarea(s)shall be
allocatedwithin the subdivision.Where applicable,a hierarchyof
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
recreationaluse. These areas must be accessibleto living units
and free from anv form of hazard or risk. Said parks and
playgroundsshall be clearedand free from any debris.Parksand
playgroundsas muchas possibleshallbe at streetlevel.
and Amenities
b. Facilrties

Areas requiredfor subdivisionfacilitiesand amenitiesshall be

judiciouslyallocatedin accordancewith the provisionsherein
soecified.
c. Density
Density of subdivisionprojectsshall conform with the residential
densitiesset forth in the zoningordinanceof the city/municipality
whereprojectis located. Wherethereis a mixtureof housingtypes
row house' town
(such as singledetached,
withinthe subdivision
of
number
dwellingunitsin
total
the
houses,etc.),densityshallinclude
structureplusthe total numberof lots intendedfor single
multi-storey
houses.
andsemidetached
2. Site Preservation
a. Slope
Thefinishedgradeshallhavea desiredslopeto allowrainwaterto be
channeledinto streetdrains. Wherecut and fill is necessary,an
appropriategradeshall be aftainedto preventany depressionin the
area.
Gradingand ditchingshallbe executedin a mannerthatwill prevent
properties.
erosionor floodingof adjoining
D,

of SiteAssets
Preservation
Suitabletrees with a caliperdiameterof 200 millimetersor more'
of Environment
shrubsand desirablegroundcoverper Department
presewed'
Where a
and NaturalResources{DENR)rules shall be
goodqualitytop soilexistsin the site,it shallbe bankedand shallbe
parks and
[reservedior finishinggrades of yards, playgrounds,
garoenarea.
GroundCover
usedfor ground
materials
Grass,shrubs,plantsandotherlandscaping
forits intendeduseandlocation'
covershallbe of a varietyappropriate
coverof the area.
planted
well-tended
so as to allow
Theyshallbe

^.1,
-ft'

Easements
provisions
projects
to thefollowing
andconform
shallobserve
Subdivision
by:
asmayberequired
oneasements
ChapterlV, Section51 of TheWaterCode,on waterbodies;
(NPC),on transmission
lines;
PowerCorporatton
o . National
fault
per Resolution
No.515,Seriesof 1992,on identified
PHIVOLCS
traces;
right-of-way:
andotherentities'
o . Otherpublicutilitycompanies
govemmentunitsfor projectsabuttingnationalroads
e . National/local
(primaryroads) where adequateeasementshall be providedfor,
areas;
including
loadingandunloading
Otherrelatedlaws.

4. Girculation
and
of roadsadjacentto the subdivision
Depending
on the classification
the size of the projectsite, roadnetworkshouldresultinto a hierarchyof
as one integrated
functionsand shoulddefineand servethe subdivision
unit.
a. Roadscomplemented
with pathwalks
withinthe subdivision
mustbe
so alignedto facilitatemovementand to link the subdivision
to the
nearestmajortransportation
routeandioradjacentproperty.
Wheneverthereare existingroadswithinthe projectsitewhichshall
plan,these shall be improvedin
be made part of the subdivision
accordance
withthestandards
setforthherein.
b. Streets should conform to the contours of the land as far as
oracticable.
Wherea proposedprojectadjoinsa developedproperty,roadswithin
the said projectshall be connected/integrated/aligned
with existing
ones.
Wherea proposedprojectadjoinsundeveloped
property,a provision
for futureconnectionshallbe mandatorv.
c. As far as practicable,streets shall be laid out at right anglesto
minimizecriticalintersectionssuch as blind comers. skewjunction,
eic.
C. Roadsshallconformto soundengineeringpractices.
I

#"

"l

e. Subdivisionpro1edsshallcomplyto the pertinentrequirements

of Batas
PambansaNo. 344,otherwiseknownas the AccessibilitvLaw.
5. Installation
of StreetNameVSigns:
The developershall bear the cost of installationof street namesi/signs
coincidentwiththe construction
of streets.

C. DesignParameters

1. Land Allocation
Foropen maket and mediumcost subdivisionproiectswith an areaof one
(1) hectareor more, the percentage(o/o)allocationof land shall be as
follows:
a. saleablearea- maximumof 7Oo/o
of the grossarea
b. non-saleable
area- minimum
of 307oof thegrossarea
The followingnon-saleablearea shall be observedconsistentwith PD
N o .1 2 1 6 :
b.1 ParkVPlaygrounds
Allocationol arealor parksand playgrounds
shallbe mandatoryfor
projectsone (1) hectare or more and shall be deemed nonlocatedwithinthe
buildablearea.The sameshallbe strategically
parks
project.
and playgrounds
subdivision
Area allocatedfor
shall
in no casebe lessthan 100Sauaremeters.
shall be as
The percentagerequirementfor parkVplaygrounds
follows:
Table1. Parksand PlaygroundsAllocation
DENSlTY
(No.of Lots/thvelling
Unit

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

4,.

PARKS/PLAYGROUNDS
in Percent
of GrossArea
Allocation

(w

3.5
4-0
5.0
b-u

7.0
9.0

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/reti
il centersin excessof the mandatoryrequirementset
forthin thisrulewhichshallbe deemedsaleable.The useof the said
area shall be indicatedin the plan and shall be annotatedin the tiile
thereto.(Referto Table!)
f able 2. Facilities According to the Number of SateabteLots/
DwellingUnitsfor SubdivisionProjectst hectareand Above
No.of
Saleable
Lots
and/0r
DwellingUnit

Neighbor' Convenience
hood
Stores
&
Element
High
Tricycle
MultiOther
ary School'*
Terminals-Purpose CommercialSchool-Cenler*
Centers..

10& below
11-99
100- 499

500- 999
1000- 1499

- 1999
1500

2000- 2499

2500& Over

Mandatory
non-saleable
Optionalsaleablebut when providedin the planthe same shallbe
annotatedin the title
d,l ,
-/'

b.3 Circulation
System
of Roads
b.3.1 Hierarchy
The circulationsystemfor open marketand mediumcost
housingprojectsshallhavethefollowinghierarchyof roads:
Table3. Hierarchyof Roads
ProjectSize
Range
(Has.
)

OpenMarket

2.5& below

major,minor,motor
court,alley

Above2.5- 5

maior,collector,
minor,
molorcourt,alley

Above5 -10

MediumCost
major,minor, motor
court,alley
-oo-

major,collector,minot,
motor court,alley

Above10- 15

-oo-

do-

Above15- 30

-do-

-oo-

Above30

-oo-

do-

with b.3.2
Minimumroadright-of-way
shallbe in accordance
of thissection.
ln no case shalla majorroadbe less than 10 meterswhen
usedas mainaccessroadand/oras futureconnection.
a) MajorRoaci- a streetor roadlinkingthe siteand servesas
the main traffic artery within the project site and shall
traversethe longeraxisof the property.
b) CollectorRoad - a street or a road that services
pedestrian/vehicular
traffic from minor roads leading to
majorroads.
c) MinorRoad - a roadwhichmainfunctionis to providedirect
accessto lotsandotheractivitycenters.
d) MotorCourts- shall have a right-of-wayof not less than 6
meters in width with provisionfor sufficientspace for
vehicularturn aroundin the form of a cul-de-sac,loop,
branchor "T",witha maximumiengthof 60 metersinclusive
of terminal.
e) ServiceRoads - roadswhichprovidefor the distribution
nf
trafficamongindividual
lotsandactivitycenters.

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 conespondingright-of-way
for hierarchyof roadsshall be
as ficllows:
Table4. Road Right-of-Way

Projec{Size
(Hectares)
2.5& below
Above
2.5- 5
Above
5 - 10
Above10- 15
Above15- 30
Above
30

Motor
Court
Alley

Right4f- Way(Row)
(Meters)
MediumCost
OpenMarket
Maior CollectorMinor MaiorCollectorMinor
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
CaniaoervavROW Cariaqeurav
D

o
z

Note:a 6-mseMceroad,
bothendsconnecting
to a
minor oad, shall be
allored br blocks not
excedinq
60meters.
a) Majorroadsshall maintaina unifcrmwidth of roadright-ofway. Taperingof roadwidthshallnot be alloryedwherethe
road rightof-wayis wider than the prescribedstiandardfor
the interconnecting
roadof the proposedsubdivision.
b) Interiorsubdivisionprojectmust secureright-of-wayto the

nearestpublicroadandthe right-of-way
shallbe designated
as interconnecting
roadwitha minimumwidthof 10 meters.
Thisfact shallbe annotatedon the title of said roadlot and
mustbe donatedand deemedtumedoverto the LGUupon
completionof the saidinterconnecting
road. (SeeFigure1)

d,l ,

EUBO.l

su80.2

suBo.t

gugD.4

Figure1. InterconnectingRoad

projectsabuttingmainpublicroadmustprovide
c) Subdivision
a setbackof $meter deepby S-meterin lengthat bothsides
loadingand
entranceto accommodate
of the subdivision
(seeFigure2).
of passengers
unloading

ITA|NRIEtG ROAO

Figure2. SetbackRequirement
Along MainPublicRoad
*L
'.ft
I

d) Subdivision projects shall have provision for future

expansionwhere applicable,by designating
the major
roads, as prescribed in Sec. 1.C.b.3
2 as the
for both open marketand
intercrnnecting
road right-of-way
mediumcosthousingproJects.
b.3.3 Planting
Strips
Planting strips shall be observed with the following road
soecifications:
Table5. Width of PlantingStrips and Sidewalks
OPENMARKET

ROADWIDTH
(m)

Planting
Side{ralk
SlriP
(m)
(m.)

MEDIUM
COST
Planting
Side{ralk
Strip
(m)
{m)

15.00
1 20 0
10.00
8.00
6.00(ServiceRoad)

1.30 | 1.20
0.80
1.20
0.80
1.20
0.40
0.60
OPIIr)nal

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
shallbe pavedwith eitherconcreteor asphalt.Concretepavernent
shallhavea minimumthickness
of 150millimeters
anda minimum
compressivestrengthof 20.7 Mega Pascal(Mpa) while asphalt
shallhavea minimum
thickness
of 50 millimeters
Sidewalkpavement
shallhavea minimumcompressive
strengthof
17.2MegaPascal.
b.3.5 RoadIntersection
Roads should intersectat right angles as much as practbable.
Multipleintersections
along major roads shall be minimized.
Distancebetweenoffsetintersections
shouldnot be less than 20
meters from corner to comer. ,ntersectionsshould o@ur on
straightsectionsinsteadof on curved sectionsof road and on
gentlegradeswithclearsightdistance.
Road intersectionsshall be providedwith adequatecurb radii
principles.
consistent
withsoundengineering
(seeFigure3)

4,1
.r''
l0

cul- oE- sAc

7 : c u R ER A o t u s

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
requirementsof the Departmentof public Works and
Highways
(DPWH).
FterrcF yvAY
C A R R IA G E

t"/

o9/

y',

ta----

1.s"t"W

Flgure 4. Road Grade/$lope

2. Lot RequiremefltA
a. Lot Layout:
The foflowingshail be consideredwhen prottingthe subdivision
prgect:
a-1 Preservationof site assetsand propersitingorientationof rots;
blendingwith existingand proposeddevelopmentin the vicinity;
ano
a.2 Applicationof workabledesign principlegparameters
for a well
plannedenvironment.
To aeommodatea wider rangeof clientele(in termsof incomelevel
and
..lifestyle),.and to provide diversity in housing design in a
subdivision
projecl, the owner/developeiis encouraied to ailocate
areas for vanous housing types such as singl+.detached,
dupler/singleaftachedand rowhou$s.

4"'

b. MinimumLotArea
The minimumlot areafor varioustypesof housingunderopen market
and mediummst housingprojec{shall be as follcws
Table6. MinimumLot Area
WPESOFHOUSING
a. SingleDetached
b. Dupler/SingleAttached
c. Rowhouse

COST
MARKET MEDIUM
OPEN
(Sqm.l
(Sqm.)
't20
96
60

100
80
50

aftachedandlor rolhouse
Saleablelots designatedas duplo</single
lotsshallbe providedwithhousingunits.
Price of saleablelots intendedfor singledetachedunits shall not
exceed40 percentof the maximumselling price of house and lot
pacKages.
Lot Design
by
c.1 Saleablelotsshallbe designedsuchthattheyare not bisectecl
politicalboundaries,water courses,drainageways and utility
lines.
accessroad.
c.2 A lot shallbe servedby an independent
c.3 Wheneverpossible,lot frontageelevationshallbe at streetlevel.
to street lines.
c.4 Lotlinesshallpreferablybe madeperpendicular
c.5 Deeplotsand inegularlyshapedlotsshallbe avoided'
c.6 Lotsshallbe plannedwithadequatewidthfor sideyardsc.7 Lotsshallbe protectedagainstrisks.
c.8 Lots shall not be laid out if potentialrisks exist e.g. erosion,
slides,flooding,faultlines,etc.

4"'

l3

d. Lot Frontage
The minimumfot fontages ficr vario.rstypes of housing under open
marketand mediumcosthousingprojectsshallbe as follows:
Table7. MinimumLot Frontage
TYPESOF HOUSING/LOT
1. SingleDetached
a. CornerLot
b. RegularLot
c. lnegularLot
d. InteriorLot
2. Duplex/Single
Attached
3. Rowhouse

(m.)
FRONTAGE
12
10
3
I
4

The numberof rowhousesshall not exceed20 unitsper block/cluster

but in no caseshallthisbe bevond100metersin lenoth.
3. Lengthof Block
Maximumlengthof blockshallbe 400 meters,however,blocksexceeding
250 metersshallbe providedwithan alleyapproximately
at mid-length.
4. ShelterComponent
a. Minimum floor area for open market housingshall be 42 square
metersand 30 squaremetersfor mediumcosthousing.
- completehousefor all typesof dwelling
b. Minimumlevelof completion
unitsbasedon thesubmitted
specifications.
Provisionof firewallshall be in conformitywith the Fire Code of the
Philippinesand mandatoryfor duplexeVsingleaftached units and
everyunitfor rowhouses(referto Fig.5).

^,1
.n.,

14

d?i

-et_

-l-

=
a?i

oa

---rI

PLAN

=
c?l
ol

--T-

Figure5. FirewallRequirementfor Rowhouse

Yard/Setback
Theminimumsetbackof dwellingunitsbothfor openmarketandmedium
costhousingprojectsshallconformto the NationalBuildingCodeof the
Philippines.
6- WaterSupply System
a. SpecificRules:
The subdivisionwater supply shalt be mandatoryor obligatorily
@nnectedto an appropriatepublicwatersystemor communitysystem
providedthat the water supply is enough to meet the total daily
population.
of theanticipated
requirements
When neithera publicwater system,nor an acceptablecommunity
system is available,a centralizedwater supply system shall be
accepted,providedthat:
a.1 The technical consultant of the developer shall determine the
location and discharge capacity of the water supply source(s)
withinthe subdivision;
.l

$^.r

i5

a.2 The permitto drill well(s) or tap water lines fiom the appropriate
govemmentagenciesshallbe obtained;
a.3 The water source shall be sufiicientto meet the daily water
requirements
of everyhouseholdin the subdivision;
a.4 No hazards shall exist in the immediate virjnity of the vvater
sourcethat mightreduceor pollutethe supply;
a.5 Waterdistribution
shallbe assured.
Accordingly,everywater serviceentrarrceor @nneclionshall be
providedwith a pressure.compensating,
self-regulating,
constant
flowvalveor fittingto ensureequitabledistribution
of water,water
and powerconservation,and long-termsavingson operational
costsof the water system.
a.6 Eachsubdivisionshallhaveat leastan operationaldeegrvelland
pumpsetswith sufiicient capacity to provide Average Daily
Demand(ADD)to all homeowners.
b. Water Requirement - Every dwellingunit shall be served by an
individualsupply of water suffcient to meet the total hourly domestic
needsof everyhouseholdfor any 8 hourperiod.
TheAverageDailyDemand(ADD)for bothopenmarketand medium
cost housing projects is 150 liters per capita per day (LCPD)
householdconnection.(PerBoardResolutionNo.506,seriesof 1992)
c. Fire ProtectionDemand - Provisionficrfire protectionshallcomply
withthe requirements
of the NationalFireprotectionCode.
d. WaterTank Capaoty - 20%ADD plusfire reserye.
e. Pipes - Pipesshallconformto the standardsrequiredby Metropolitan
Watemorks and SewerageSystem (MWSS) and/or Local Water
UtilitiesAdministration
(LWUA).
7. Electrical Porrer Supply System
Mandatoryindividualhouseholdconnedionto primaryand/or alternate
sourcesof power.
Installationpracfices,materialsand fixtures used shall be in accordance
Wth the provisionsof the PhilippineEleclricalCode andor locat utility
company.
Provisionof streetlightingper pole is mandatoryat SGmeterdistance
andeveryotherpoleif distanceis lessthan50 meters.
Electricalbills for streetlightsshall be proportionately
shoulderedby the

4"'

l6

Y
I

usersthereofprior to issuanceof Certificateof Completion(COC)and

tum-overof openspaceto LGU.
SewageDisposal9ystem
The salage disposal system for open market and medium cost
projectsshalleitherbe any of the follor/ing:
subdivision
a. Connection
to Community
SewerSystem
Connections
shallbe madeto an approvedpublicor communitysewer
system,subiectto the requirements
and provisionsof the Sanitation
Codeof the Philippines
andotherapplicable
rulesandregulations.
b. SepticTanks
Where communitysewer system is not available,se\flageshalt be
disposedof andtreatedin individualseptictank6.
Conskuctionof individualseptic tanks shall conformto the design
standardsof SanitationCodeof the Philippines(PD 856)ahd Natienal
Plumbing
(RA 1378).
Codeof the Philippines
9. DraindgeSyrtem
The draihdgesystem of the subdivisionshall conformto the natural
drainagepatternof the subdivisionsite, and shall drain into appropriate
waterbodiesor publicdrainagesystem. In no caseshalldrainageoutfalls
drain into a privatelot. lts layout shall conformto sound engineering
design/principl0scertifiedby a dulylicensedcivil/sanitary
engineer.Drain
practices.
linesshallbe of durablematerialsand approvedinstallation
Forbothopenmarketand mediumcostsubdivisionp@ects,underground
drainagesystemshallbe properlyengineeredand environmentally
sound
provided
and shall be
with adequateReinforcedConcretePipes(RCP),
catch basinsmanholes,inletsand crossdrainfor efficientmaintenance.
pipesdiameter
Minimumdrainage
shallbe 30 centimeters.
10. GarbageDisposalSystem
The subdivisionshall have a sanitrary
and eflicientrefusecollectionand
disposalsystem,whether independently
or in conjunctionwith the
garlcagecollectionanddisposalservices.
municipaUcity
The SummarizedPlanningand Design Standardsfor Open Market and
MediumCostSubdivisionProjectsis presentedin Table8.

f"

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17

TABLE8. Planningand DesignStandards

For A ResidentialSubdivisionProject
UnderPD957
PARAMETERS
1. ProjectLocation

OPENMARKETHOUSING

MEDIUM
COSTHOUSING

Withinsuitablesitesfor housing Withinsuitablesitesfor housing

and outside potential hazard and outside potential hazard
proneand protectionareas.
proneand protectionareas.

2. Land Allocationfor
projects t hectareand
above.
I

a. Saleablearea

a. 7O%(maximum)

b. Non-saleablearea

b. 30%(minimum)

b.1 Areaallocated
for Mandatory
pertabulation
allocation
for parksandplaygrounds
parKsand
below:
playgrounds
for
projectst ha. &
Density
Percentage
of
aoove.
(No.ofLotsorDwelling
Unit
GrossAreaAllocated
for

PerHectare)

parks
andplaygrounds

20 & below
2 1_ 2 5

3.5o/o
4-O%

zo-Ja

5.0%
6.0%
7.0%
9.0%

36-50
5 1- 6 5
Abcve65

Innocaseshallanareaallocated
forparksandplaygrounds
beless
than100sqmandthe sameshallbe strategically
locatedwithinthe
subdivision.
b 2 Areaallocated Mandatoryprovisionof areas for communityfacilitiessuch as
for community neighborhood
multi-purpose
centerfor housingprojectswitharea 1
facilities
hectareandabove. Theseareasare non-saleable.
However,
the
developermay provideareas for communityfacilitiessuch as
schoolsand commercialcentersin excess of the mandatory
requirement
set forthin this rulewhichshallbe deemedsaleable.
The use of the said area shall be indicatedin the olan and
annotatedin the titlethereto.(Referto Table 1 )
b,3 Circulation
System

^,1
,$ ,

Observehierarchyof roads
I8

r,^

OPENMARKETHOUSING

MEDIUMCOSTHOUS]NG

120sqm

100sqm

b. Duplex/SingleAttached

96 sqm

80 sqm

c. Rowhouse

60 sqm

50 sqm

PARAMETERS
?

MinimumLotAreas
a. SingleDetached

Saleablelots designatedas duplexand/orrowhouselots shall be

providedwithhousingcomponents.
units shall not
Priceof saleablelots intendedfor single-detached
price
of house and lot
exceed 40% of the maximum selling
pacKages.
4. MinimumLotFrontage
4.1 SingleDetached
a. cornerlot
b. regularlot
c. inegularlot
d. interiorlot
4.2 SingleAftached/
DuPlex
4.3Rowhouse
5. Lengthof Block

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 mid-length.
approximately

6 . RoadsRightof Way

Projectsize range
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.

Majorroad CollectorMinorRoad MajorRoadCollector MinorRoad

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.

^,1
'^f1',

l9

PARAMETERS

OPENiJIARKET
HOUSING
ROW

MotorCourt
Alley

CARRIAGEWAY

MEDIUMCOSTHOUSING
ROW

CARRI..AGEWAY

6
2

c
z

Alleyis a 2-meterwide walkwaywhichshallbe usedto breaka

blockand to serveboth pedestriansand for emergencypurposes.
It shallnot be usedas accessto property.
(ROW)of majorroadsshallbe increasedas project
Right-of-Way
sizeincreases.

Major roads shall maintaina uniformwidth of road right-of-way.

Tapering
of roadwidthshallnotbe allowed,
wheretheroadrighfofway is widerthanthe prescribed
standardfor the interconnecting
roadof theproposed
subdivision.
NOTE:
1 Interior
project
subciivision
publicroad
mustsecure
rightof-way
tothenearest
andtheright-ofway
shallbedesignated
asinterconnecting
roadwitha minimum
widthof 10mete$.Thisfactshaltbeannotated
onthetitleofsaidroadlotand
mustbedonated
anddeemed
turned
overtotheLGUuponcomDletion
oi thesaid
interconnecting
road.(See
Figure
1).
2 Subdivision
projects
abutting
mainpublicroadmustprovide
a setback
of 3meterdeepby 5-meter
in lengthat bothsidesof thesubdivision
entrance
to
accommodate
ioading
andunloading
ofpassengers.
(See
Figure
2)
prqects
3.Subdivislon
shallhaveprovision
forfuture
expansion
where
applicable,
bydesignating
a minimum
interconnecting
roadrightof-way
of10meters.
a

Hierarchyof Roadsper
ProyectSize Range
2.5 has.& below
A b o v e 2 . 5- 5 h a s .

major,minor.motorcourt,alley major,minor,motorcourt,alley
major,collector,
rninor,molor
court,a'ley

Above5 - 10
Above 10 - 15 has.

-dc-

Above .l5 - 30 has.

-Co-

Above 30 has.

-oo-

4"'

_do_
major,collector,serviceroad,
mtnor,motorcourt,alley
_do_
_do_do_

2A

OPENMARKETHOUSING

PARAMETERS

MEDIUMCOSTHOUSING

9. RoadsSpecifications
Strip(PS)*
a. Planting
(SW)
Sidewalk
PS
1 . 3m
0 . 8m
0 . 8m
0.4m
optional

ROW
15m
12m
10m
8m
6 m (ServiceRoad)
b. RoadPavement

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

Major
Minor
MotorCourt
Sidewalk
Alley

sw
1.2m
1.2fi

1.2n
0 . 6m
optional

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

Concreteroad pavementshallhavea minimumthicknessof 150

strengthof 2A7 MPa
mitfimetersand a minimumcompressive
while roads may either be concreteof same thicknessand
strengthor asphaltwith minimumthicknessof 50
compressive
millimeters.
strengthof
shallhavea minimumcompressive
Sidewalkoavement
17.2MPa.
l0 WaterSupply

Mandatoryconnectionto appropnatepublic water system;

system.
watersuPPlY
centralized
deepwelland
shallhaveat leastan operational
Eachsubdivision
Daily
provide
Average
pump sets with sufficient capacity to
Demand(ADD)to all homeowners-

Water
a. Minimum
SupplyRequirement
b. FireProtection
Demand

connection
150literspercapitaperdayfor household

of
shallcomplywith the requirements
for fire protection
Provision
the FireCodeof the PhiliPPines.

l'

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2l

a.2 The minimumarea for a singlepark/playground

shall be 50 square
meters.lncrementsof 3.00squaremeterslicreveryadditionalfamily
dwellingtype in excessof 10 unitsshallbe added.
a.3 Parks/playground
or otherrecreational
fucilitiesmay not be required
if the condominiumis locatednot morethan or 800 metersfrom a
publiclyaccessibleparUplayground/or
otherrecreational
facilities.
a 4 Parks/playground
shall be properlylandscapedto accommodate
bothactiveand passiveactivities.
a.5 Parks/playground
may be accommodatedin the yard/s provided
suchyardsare adequateand usableas park.
a.6 Otherfacilities(optional)such as tenniscourts,swimmingpool,
etc. may be integratedwith the parktplayground.
ParkingSpaceRequirement
b.1 ForResidential
Condominium
Units
b.1.1 The parkingslot requirement
for residentialcondominium
pro1eclshall be in accordancewith the provisionsof the
National
Building
Codeof the Philippines.
b-1-2 Off-sitepa*ing may be allowed in additionto the on-site
parkingprovidedthat the designdtedparkingarea is part of
the projec{ and provided further that the required distance
shallbe in ao@rdancewith the NationalBuildingCodeof the
Phitippines.
b.1.3 Compliancewith additionalparking spaces as required
by localordinancesshallbe mandatory.
b.2 ForCommercial
Condominium
Units
b.2.1 The minimumparkingslot requirementshallbe in acoordance
with the provisionsof the NationatBuildingCode of the
Philippines.
b.2.2 Off-site parking may be allorvedin additionto the on-site
parkingprovidedthat the designatedparkingarea is part of
the projector the projectis withinthe commercialsubdivision
where common parking area is part of the approved
subdivision plan and provided further that parking
arrangements
are explicitlyindicatedin the contractof saleof
propertyto be developed. Off-site parking shall not be
located200 metersawayfrom condominiumproject.

+.

26

c. AccessRoads
and
Roads shall serve every building,parkingspace, parUplayground
points).
or
righfofroads
garbage
Minimum
points
(e.g.
collection
service
and the
way shallbe I meters,6 metersthereofshallbe the carriageway
strip.
remaining2 metersshallbe developedas sideu/alk/planting
with a minimum
circulation
Pathwalksshall be providedfor pedestrian
widthof 1.2meters.
with
pathwalksshallbe in accordance
of roads,sidewalkan<.|
Construction
the standardsof residentialsubdivision.Spacefor tum aroundat dead
endshallbe provided.
Direc{vehicularaccessto the propertyshallbe providedby publicstreet
or alley.
An independentmeansof accessshall be providedto each dwelling,or
group of dwellingsin a single plot, without trespassingadjoining
properties.Utilitiesand servicefacilitiesmust be independentfor each
dwellingunit.
meansof accessto each livingunit shallbe provided
An indeoendent
withoutpassingthroughanyyardof a livingunitor anyotheryard.
c.1 Hierarchyof Roads
For horizontalcondominiumprgects,the hierarchyof roadsshallbe
the same as the minimum design standard requirementsfor
subdivision
Prolects.
c.2 Pavement
All roads (major, minor, motorcourt)for both residentialand
commercial condominium projects shall be paved with
concrete/asphalt.
andServices
BasicFacilities
Area)
d.1 ServiceArea(Laundry/Drying
Adequatelaundryanddryingareasshallbe provided.
Where such serviceareas are held in common,they shall have
suitableoutdoorlocations,fencedor screenedand kept away ftom
livingrooms,entrancor frontyards.
d . 2 Watersupply,power,swerageand drainageutilitiesshallconform

of a subdivision.
to the requirements

+,

27

d.2.1 ReservoirMaterTank
Formulti-storey
buildings
lf the heightof the buildingrequireswaterpressurein excess
of thatin the mainwaterline,a watertankshallbe provided.
Tank shallalso be requiredif the peak drawnshouldreduce
the pressure on the highest usable floor to less than
0.06 Mpa - the minimumpressurerequiredfor satisfactory
operationof fixtures,particularly
thosewrlhflushvalves.
d.2.2 Capacity- 2oo/oAverageDailyDemandplusfirereserye
d.3 Mechanical
EquipmentandServiceAreas
d.3.1 Provision of elevators shall conform to the olans and
specificationsof the duly licensed architecUengineer
who
shalldeterminethe requirement
for elevatorsincludingthe
number of cars. capacity,safety features and standards,
elevatortype, speed and locationin relationto the over_all
designanduseof thebuilding;
thedesignarchitecUengineer
shallcertifyunderoath thatall the componentsthereofare in
accordancewith the National Building Code of the
Philippines,
the AccessibilityLaw and national industry
stahdardsandotherpertinentlaws.
d.3,2 Complianceto the provisionsof the Fire Code of the
Philippines,
shallbe mandatory.
d.4 RefuseCollection/Disposal
Centralizedgarbagedepositoryarea and efficientrefusecollection
anddisposalservicesshallbe provided
whetherindependenily
or in
conjunctionwith the city or municipalitygarbage collectionand
disposalservices_lt shallconformto the provisionsof the Sanitation
Code of the Philippinesand its lmplementingRules and
Regulations/pertinent
referralcodes.
FloorAreaRequirements
a. Single-Occupancy
Unit
Singfeoccupancyunitsshallhave a minimumfloor areaof 1g square
meters,however,a net floor area of 12 squaremetersmay be allowed
providedthat:
a.1 Theseare intendedfor students/employees/workers
ano provided
furtherthatthecondominium
projectto whichthesewillbe integrated
is withinhighlyurbanizedareas.

'x4,

28

1"t"
I

B. At least2 copiesof vicinitymap indicating

the adjoininglanduses,access,as
wellas existingfacilities
and utilitiesat leastwithin500 metersfromthe property
boundaries
of the project,drawnto scale and duly signedand sealedby a
geodetic
licensed
engineer.
cost.
C. Building
specifications
andestimated
fromHLURBRegional
D. ZoningCertificate
Office
E. Certifiedtruecopyof DARconversionorder.
(ECC)or Certificate
of
Clearance
Certificate
F. Certified
truecopyof Envrronmental
is
whichever
applicable.
(CNC)
DENR,
duly
rssued
by
the
Non-coverage
u . Certifledtruecopyof title(s)andcunenttax receipt.
H . Rightto use or deedof saleof righfof-wayfor accessroadand otherutilities

whenapplicable.
l. One(1) copyof projectstudy to includethe following:
cost,totalproject
amongothers,the development
1. Projectprofileindicating
cashflow.
sourcesof financing,marketability,
schedules,
cost,amortization
program/project
plans
table;
time
and
work
building
architectural
2. Auditedfinancialstatementfor the last 3 precedingyears;
years,
3. Incometax returnforthelast3 preceding
(SEC);
fromSecuritiesand ExchangeCommission
4. Certificate
of registration
or partnership;
5. Adiclesof incorporation
and
amendments,
by-lawsandallimplementing
6. Corporation
7. For new corporations(3 years and below)statementof capitalizationand
sourcesof incomeandcashflowto suppoftworkprogram.
Permit to drill from NWRB or certificateof coveragefrom concernedlocal
holder.
franchise
who signedthe plansand other
K. List of namesof duly licensedprofessionals
filed indicatingthe following
with application
similardocumentsin connection
information:
1. Surname
2. Firstname
3. Middlename

^4
'^r.

4 . Maidenname,in caseof marriedwomenprofessional;

5. Professional
licensenumber,dateof issueand expirationof ib validity;and
D.

Professional
tax receiptanddateof issue

7 . Taxpayer's
ldentifi
cationNumber(TlN)

lf the establishment
of the condominiumprojectis physicallyfeasibleand does not
run counterto the approvedzoningand landuse planof the city or municipality
and
the plancomplieswiththeseRules,the condominium
planshallbe approvedand a
permitshallbe issueduponpaymentof theprescribed
development
processing
fee.
A developmentpermit shall only be valid for a period of 3 years from date of
issuanceif no physicaldevelopment
is introduced.
lf projecthas been issueda developmentpermit,a locationalclearanceis deemed
incoroorated
therein.
The owneror developershallsubmitthe condominiumplan in accordancewith the
requirementsof the NationalBuildingcode to the buildingofficialof the city or
municipality
wherethe propertyliesand the sameshallbe acteduponsubjectto the
conditionsand in accordancewith the procedureprescribedin section 4 of the
Condominium
Act (R.A.No.4726\.

RULEIV
REGISTRATION
AND LICENSING
OF SUBDIVISTON
AND CONDOMINIUM
PROJECTS
Section 7. Applicationfor Registration
A. Common Requirements
The owner or the real estatedealerinterestedin the sale of lots or units in a
projector condominium
subdivision
project,respectively,
shallregisterthe project
withthe Boardby filingthefollowing:
1. SwomRegistration
Statementusirrgeither:
HLURBForm001for Corporation;or
b . HLURBForm003for SingleProprietorship

d.

CertifiedTrueCopyof TransferCertificate
of Title(TCT)or OriginalCertificate
Of Title (OCT) duly stamped with originatmarking "CERTIFIEDTRUE
COPY" by the proper Registerof Deeds and bearingits seal or security
marker.

A
f

36

a. \y'Uhen
a projed coversmorethan 20 individualtitleswithoutthe required
shallbe required:
marksdescribedabove,the ficllorving
a.1 Photocopyof TCTs
a.2 Certificationfom the registerof deeds concemedwith its seal or
securitymarkgivingthe followinginformation:
a.2.1 TCTor OCTnumbers;
a.2.2 Nameof all registeredowner(s)and theirsharing,if any;
a.2.3 Areacoveredby eachtitle,
a.2.4 Numberof OCT or TCT fromwhichthe titleis derived;
if any;
liensandencumbrances,
of all uncancelled
a.2.5 Statement
number,
a.2.6 Lot and blocknumbersas well as PSD/PSU/PCS
etc.
b. Whencertifiedcopyof the TCT was issuedmorethan one month priorto
the applicationfor Certificateof Registration(CR), affidavitof the owner
thatt# propertyis freefromliensand encumbrancesWhenthe applicant
is not the owner, deed from the registeredowner showingclearlytheand saleof
authorityof the applicantto the property'e g , its development.
relevant
other
and,
lotsor units;to signandreceivedocuments;
individual
prqecl o1portionthereof
authority.In casethe subdivision/condominium
fom the
certification
tit|e;
to submit
is mortgaged,affidavitof under{aking
mortgale6 regarding outstandingbalance of loan and amortization
of mortgagor'
scniut-e; mortgageof contract;and,affidavitof undertaking
2

Dulyauditedbalancesheet(certifiedcopY9f the original)issuedand signed

by ihe authorizedofficialof ttre applicantand underthe lattecsauthonty.
be
a. When individualpersonsare involvedand no balance sheet can
BIR
submitted,incometax returnsfor the precedingyeardulyreceivedby
officeandtax receiptsevidencingpayment'
or single
b. Wtrenapplicantis a new corporation,partnership,association been
has
retum
or incometax
i.e.,no financialstatement
proprietorsnip,
preparedyet, swornstatementdeclaring:
b.1 Otherassetsor sourcesof fundsand otherresources;
b.2 The natureof controlor ownershipover such assets'funds or
resources;
b.3Commitmenttotheeffectthat,ifnecessary,thesameshallbeusecl
to completethe Project.

4. Articlesoflncorporation(orofPartnershiporAssociation),amendments

thereofand existingbyJaws(or its equivalent)clearlyindicatingthe authorrty

oftheapplicanttoengageinrea|estatetradeparticu|ar|yinthedeve|opment
r"f firigof lotsor u-niii.Wt1enan applicantdeviatesfromthe intendedline
"nO

+.

)'l

of business stipulatedin its articles of incorporation(or partnershipor

association),authorizationfrom the Securitiesand Exchange Commission
(SEC) and/or the appropriategovemment agency to engage in the
development
andsellingof the subjectprqecl.
A copy of any circular, prospec{us, brochure, advertisement,or
@mmunicationused/to be used for public ofiering of subjed projectand br
circulationuponapprovalby the Board.
6. Samplecopyof Contractto Sellto be usedin the publicofferingof lots,units

or lots and units. Whenamendmentsshallbe affec{edon the form contnact

submittedfor notification/approval
by HLURB,pro-formaatfrdavitsignifying
willingness
to ctrangeprojec{name.
Certifiedtruecopyof Environmental
ComplianceCertificate(ECC)/Certificate
of Non-coverage(CNC), whlchevel is'applicable, duly issued by the
Department
of Environmental
and NaturalResouroes(DENR)
8. ZoningCertificate
tom HLURBRegionalOffice

Certifiedtrue copy of DARconversionorder.

1 0 . Electricalplan and specifications
duly signedand searedby a ricensed

professionalelectricalengineerand 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 Decrarationof Registrationand Decraration
of
Restrictionsevidenoedby the properann6tationthereofin ttre tit[isl
or
the propertyand the certifiedtrue copy of such tiile(s) from the Reg;i-er;
Deeds,
b. BuildingPermit
2. For Subdivisionprojects:
a. 2 copiesof verifiedsurveyreturnswith raberfor alr non-sareabre
areas
includingbut not rimitedto parksand praygrounds,
communityfacirities
and roadsand easements

^,1
,
"4038

b. Copy of the followingdocumentsin case the developmentpermitwas

issuedby the LocalGovemmentUnit(LGU)pursuantto the 1991Local
Codeand relatedissuances:
Government
granting of development
b.1 Sangguniang ResolutiorVOrdinance
permit/subdivisiondevelopment plan containing the following
information:
andhisaddress;
b.1.1 fullnameof the granteeor permittee
b.1.2 completeproJectnameand its location;
or ordinance;
b.1.3 dateof theresolution
area:
b.1.4 pro1ect
listing
of title(s)coveringthe project;
b.1.5 full
b.1.6 legalbasisof theapproval(PD957,EO 648andotherrelated
laws);
b.2 Certifiedtrue copyol resolutionconferringauthorityto the mayoror
other local govemmentofficialto issue developmentpermit in
cases where the same was not granted by the Sangguniang
Pangbayan/Panlungsod.
Evidence of approval of the subdivisionscheme by the local
governmentofficialmustbe any originalcopyor one certifiedas true
6py thereofby the authorizedlocal governmentofficial'indicating
Oeiny nis full nameand positionand the date of approval lt mysj
contaanthesamedataasdescribedabove'Mostimportantofall'it
must bear an indicationof Sanggunianapprovalsuch as but not
IiMitEdTO WOTdSIiKE "APPROVEDBY AUTHORITYOF THE
SANGGUN|AN''orothersofsimi|arimport,itbeingunderstoodthat
issuedsuchauthority
hasproperly
theSanggunian
b.3Proofofcomp|iancetoSec.lSotRAT2Tginanyofthefo||owing
manner:
permitof socializedhousingprojects within
b.3.1 Development
the mainsubdivision.
b.3.2 Licenseto sell of socializedhousingprojectoffered as
complianceif tocationof complianceis not within the main
subdivisionProject.
b.3.3 Joint venture agreementwith LGU or other housing
agencies.
b.3.4 Certifiedtruecopyof bondissuedby the LGUwherethe main
projectis locatedor by any of the housingagencles'
plan.
b.4 one (1) set of subdivisiondevelopment

d"..
39

c. Projectstudy
d. Copyof brochuresandotherfonnsof advertisements.
Section 8. Application for License to Sell
The owner or the real estate dealer interestedin the sale of lots or units in a
subdivision
or condominium
projectshallapplywiththe Boardfor a Licenseto sell
by submittingthe following:
A. Programof development(bar chartwirh s-curve,GanttcharupERT-cpM,etc.)
signedand sealedby ricensedengineeror architectindicatingwork activities,
durationandcosting
B. Affidavitof undertaking
to performthefollowing:
1. Segregation
of the individuar
tiilesfor aI rotsor unitswithinthe project;
2. submissionof proofthat tiflesto the sareabrerotsor unitshave
been issued,
which.proof may incrudea certificationfrom concernedregister
of deeds
indicatingthe tots/brocks
or unitsor datrasimirarto those,.eq*uired
under
tne
requirement
for certificateof Registration
onrywhenrequiredby th" B";;;
3. Submissionof a certified rrue copy of tifle of the
common areas/open
space' which tifle shail expressryindicatethe kind
of common-tse
approvedtherefor,on or beforea clefinitedate (to u"
rp."in"J uv
subjectto approvalby the Board).
"00r,."",
C. Dulyaccomplished
and notarizedfactsheet

Section 9. Noticeof publication

Lpers,
as wellas, the documentsattached
rsinesshours by interestedparties. In
:ct shallbe postedon the projectsite until

of.thepubrication,
theproponent
sharsubmitproofof pubrication
Y.?^ol:gro'"oon
executed
by the pubrisherand an affidavitittestinj io
the postingof the biilboard
noticeon the site.

44
'&'

40

Section 10. Certificateof Registration

Uponfindingthatthe projectmaybe registeredln acrordancewith the provisionsof
at the expenseof
the decreeandtheserules,the Boardshallcausethe publication
the applicanta noticeof the filingof the registrationstatementin 2 newspapersof
generalcirculations,
one publishedin Englishand anotherin Pilipino,once a week
for 2 consecutiveweeks, recitingthat a registra'tionstatement for the sale of
lots or condominium
unitshas beenfiledwith the Boardand that the
subdivision
siatementas well as the papersattachedthereto,are opento
aforesaidregistration
parties.
hoursby interested
inspection
duringbusiness
After 2 weeksfrom the completionof the publicationand upon submissionof the
issuea
shallin the absenceof any impediment'
the Boa:-cj
affidavitof publications.
fees.
uponpaymentof theprescribed
Certificate
of Registration

Section11. Licenseto Sell

unit in the
No owner or dealershall sell any subdivisionlot or condominium
projectwithouta licenseto sellissuedby the Board.
registered
Upon proper applicationtherefor.submissionof the requiredwork program.
licensefee by theowneror dealer,
performance
bondandpaymentcf the prescribed
unit
in the projector portionthereof
the Boardshallissuea licenseto sell the lot or
coveredby the performancebond. providedthat. the submittedregistratlon
statementand other pertinentdocumentaryreguirementsGanestablishthat the
proposedsale of the subdivisionlot or condominiumunit to the publicis nol
fraudulent.

Section12. PertormanceBond
The performancebond requiredundersec. 6 of the Decreemay be in any of the
followingforms:
cost of the unfinished
A. A suretybond amountingto 2oo/oof the development
bondingcompany
accredited
duly
portionof the approvedplan issued by a
and acceptableto the Board;or,
iwhetherprivateor government)
B. Realestatemortgageto be executedby the applicantas mortgagorin favor of
by and
the |atteras represented
as mortgages,
the Repub|icof the Phi|ippines
actingthroughtheHLURB,overapropertyotherthanthatsubjectofthe
and provided,thatthe value.of
fiee fromany liensand encumbrance
apptication,
valuationscheduleof the
zonal
the property,computedon the basis of the
CoSt;
ol the totaldevelopment
bureauof internalrevenue,shallbe at least2Oo/o
or,
cost of the unfinishedportion
c. cash bondequivalentto 10%of the development
the
following'
of the approvedplanwhichmaybe in the formof

*l

1, Fiduciarydepositmade with the cashierand/ordisbursingofficerof the

Board;
41

2. A certificate
of guarantydepositissuedby anybankor financinginstitution
of
goodstandingin favorof the boar.dfor the totaldevelopment
cost;
3. A letterfrom any bankof recognized
standingcertifying
that so muchhas
beenset asidefromthe bankaccountof the applicantin favorof the board
whichamountmaybe withdrawn
by thechiefexecutive
officerof the boardor
by hisdulyauthorized
representative,
at anytimethe principal
failsor refuses
to complywithhis dutiesandobligations
underthe bondcontract;
4. Anyirrevocable
creditlineto be utiiizedin thedevelopment
of the projectfrom
any bank of recognized
standingand a refinancing
program
re-structuring
indicating
sourcesof fundingfromdulyaccredited
fundinginstitutions.
For pre-existing
projectsany of the formsof performance
bond enumerated
abovemaybe availedof.

RULEV
REGISTRATION
OF REALESTATEDEALERS,BROKERSAND
SALESMEN
Section13' Appricationfor Registrationof Brokersand saresmen
No brokeror saresman
shailengagein the businessof seilingsubdivision
rotsor
condominium
unitswithoutsecuringa certificate
of registratidn
by firingwith tne
Boarda registration
statement
in quadrupricate
containing
thefoilowing
inrJrmairon:
a. Name,ageandaddress
b' lf a corporation'
partnership,
or association,
its officeaddressand branchoffices
and the namesandaddressesof its executiveofficersanddirectors.
c' statementthat appricant
is quarified
to act as rearestatebrokerdr saresman
pursuant
lo law.
d lf app|cantis a salesman,
the nameand addressof the deareror brokerwho
emptoyshim,attaching
a copyof appointment.
"

applicantis a broker,the namesandaddresses

of salesmenemployedby
[,fl"

Section 14. Certificateof Registration

nentsor information,unlessspecifiedby
said period shall be treatedas original
.l

^+

42

Section15. Bonds
The Bondrequiredundersection6 of the Decreemaybe eithera cashor a surety
bond issuedby a duly accreditedbondingcompanywhetherpfivateor govemment
agency.Thebondshallcontaina clausestatingamongothersthatit shallremainin
by the Board.The
or released
cancelled
fu'ittoiceand effectunlessit is ordered,
bondshallbe executedin favorof the H
uponthe faithfuland honestd
conditioned
salesmanworkingundera brokeror deale
thoseduties
thatuponfailureto discharge
to any and all personswho maysufferloss
the bondshallbe P5,000for Dealers/Brc
bonds shall no longerbe requiredif equivalentbondsor securitieshave already
been postedby applicantsfoi the same purposewith othergovernmentagencies
to law.
DUrSUant

-hit
Adea|er,brokerorsa|esmanmayapp|yinwritingwiththeBoardforthecance|lation
cases,the.B.oard
t"asons. In appropFiate
thet6i;t
rtaiing
bond
his
of
release
and
of a noticethereforat the latteis
to ciuse the publication
the applicant
may |.equire
stating'amongothers'the.factof
expenseIn a newspape,of jenerat circulation.
shallbe submittedto the Board. Any
The proof6f publication
suln apptication.
or
p"ito^, havingany claim for moneyor propertyagainstthe dealer'broker
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
mwiththeBoard
cancellation the
within15 daysfromtn" o"iu oi fublication.lf the.reasonfor 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
a | l sRegister
u r r e n dof
erhiscertificat
from
cancelled
be
shall
hi.
n"r"
anJ
BoarJ
to
the
of registration
Dealers,Brokersand Salesmen.

RULEVI
PROVISIONS
MISGELLANEOUS
Section16. Definitionof Terms
defined:
For purposesof theserules,thefollowingwordsandphrasesare
Board'
Regulatory
a. Boardor HLURB- shallmeantheHousingandLandUse
or alleysor pathways
b. Block - a parcelof land boundedon the sidesby streets
or intendedfor
or other naturalor .an-tuo" features,and occupiedby
buildings.
A|||andsfrontingononesideofastreetbetweentheneareststreets'
meetingor crossingthe aforesaidstreet'
intersecting,
or groupof buildings'
ysedfo1g[ce'
c. CommercialCondominium - a building,
enterpriseorganized'
servicesand oiher commercial
professional
businesses,
as a condominium'
ownedandmaintained
^'{",.

d. CommonAreas - meansthe entire projectexceptingall units separately

granted,
heldor reserved.
CommunityFacilities- facilitiesor structuresintendedto serve@mmonneeds
and for the benefit of the communitysuch as schools,places of worship,
hospitals,healthcenters,barangaycentersand othersimilarfacilitiesi/amenities
perPD 1216.
condorninium - shallmeanan interestin real propertyconsistingof a separate
interestin a unit in a residential,industrialor commercialbuildingand an
undividedinterestin @mmonclirecflyor indirecily,in the land on which it is
locatedand in othercommonareasof the building.A condominium
mayinclude,
in addition,a separateinterestin otherportionsof suchreal property.Titteto the
commonareas,includingthe land,or the appurtenantinterestsin such areas,
fqy be held by a corporationspeciallyformedfor the purposein which the
holdersof separateinterestsshallautomatically
be membersor shareholders,
to
the exclusiveof others, in proportionto the appurtenantinterest of their
respec{ive
uniK in the commonareas.
A buildingin whicheachindividualunit is heldin separateprivateownershipand
all 1loorspace,faciritiesand outdoorareasused in commonby ail tenant! are
owned,administeredand maintainedby a corporationcreatedpursuantto the
provisionsof the appropriate
statute.
An individualdwelling unit under individualownershipin a multiple units
development
withcommonelementsin which:
a The unitscomprisenot onrythe spaceencrosedby the unit boundaries,
but
all materiatpartsof the landwithinihe space;
b. The commonerementrneansalr the propertywithin the deveropmentexcept
theunits;
c Theoommonelementis ownedby alrof theownersas tenantsin
common.
A buildingor groupof buildings,in which unitsare owned individually,
and the
stnrcture, @mmon areas and facilities are o^/ned Oy tne owners
on a
proportional
undividedbasis.
CondominiumProject- meansthe entireparcelof rearpropertydivided
or to be
dividedin condominium,
includingall struc{ures
thereon.
CondominiumUnit - meansa partof the condominium
pojec{ intendedbr any
typeof independent
useor orrnership,includingoneo, morefloors(or partor
partsof floors)in a buildingor buildingsandsuchaccessones
as maybe
appendedthereto.
I

Dealer - shallmeanany persondirecflyengagedas principarin the

businqssof
buyrng,
sellingor exchanging
realestatewhetheron iull timeor part_time
r\ ourx Duyer sha mean any person who aoquires a lot or a portion basis.
of ttre

^l:rt'

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

DecreeNo.957otheruiseknownas "The
Decree- shallmeanPresidential
Decree."
Buyer'sProtective
Subdivision
andCondominium
. DwellingUnit - structuredesignedor usedas residence.
Oneor moreroomsthat maybe usedas a residence,eachunithavingsleeping,
cookingandtoiletfacilities.
One or more habitableroomsdesignedor intendedfor use by'l or more
in
establishment
and separatehousekeeping
as an independent
individuals
use
exclusive
provided
for
the
facilities
are
whichseparatekitchenand sanitary
with a privateentrancefrom outsidethe building
of suchindividualor individuals,
or fom a commonhallwayor staiMayinsidethebuilding'
DwellingTypes:
1. SingleDetached- a dwellingunitcompletelysurroundedby yards'
2.Sing|eAttached-adwe||ingunitwithonesideattachedtoafirewa||'
3. Duplex - a dwellingunitcontaining2 separatelivingunitseach of whichis
access.
wiihIndependent
fromanotherby a firewallandprovided
seoarated
4.Rowhouse-dwe||ingunitscontaining3ormore|ivingunitsdesignedin
suchawaythattheyabuteachotherandareseparatdfromeachotherby
access
a firewalleachunitprovidedwithindependent
l'Firewa||-anywallwhichsubdividesabui|dingsoastoresisttheSpreadoffire,
bystartingatthefoundationandextendingcontrnuous|ythrougha||storeysto,or
abovethe roof is 1 millimeter'
theroof. Extension
a-Oove
m. Frontage - the sideof a lot whichabutsa street'
n.LivingUnit-adwe|ling,orportionthereof,providingcomp|eteIivingfacilitiesfor
cooking'eating'bathingand
one flmily, includingprovisionsfor living,sleeping,.
dwelling.
the sameas a single-family
andlaundryfacilities,
toitetfacilities
o. Lot - portionof a suMivisionorany parcelof landintendedas a unitfor transfer
development
for building
or ownership
Types of Lots. - lotsshallbe definedas follows:
l.corner|ot-a|otsituatedattheintersectionoftwoormorestreets.
by
2. regular lol - a lot frontingon one streetand the remainingsides bounded
lot lines.

^f,

4,s

3. interiorlot - a lot locatedat the innerportionof a blockwith a minimumof

(3-m)wideaccesswhichformspartof the lot.
three-meter
4. throughlot- a lotboundedon twoopposite
sidesby roads.
5. irregular
lot - anylotwhichis notrectangle
norsquare-shaped
p MediumCost and Open Market - refersto housingprojectswherepricesof
houseand lot packagesare r,viihin
the suggestedpricerangesas determined
throughHUDcc resolution
an<ifailingunderthe standards
prescribed
in these
rures.
q. Open Space - shall refer to an area reserved exclusivelyfor parks,
playgrounds,
recreational
uses, schools,roads,placesof worship,hospitals,
.
healthcenters,barangay
centersanciothersimilarfacilities
andamenities.
r. Project - meansthe entire parcelof real properrydividedor to be dividedin
condominiums,
including
allstructures
thereon.

Section17. Submissionof SemestralReportson Operations

Everyowneror dealerof a registeredsubdivision
or condominium
projectshall
submitto the Boardsemi-annual
reportson operations
showingthe salls status
indicating
thereinnameof buyer.rovbrock
no.,TCTno..dateof furchase,nameof
mortgagee,
modeof acquisition,
extenudeveropment
status,changesin corporate
officersand theiraddresses
within60 daysafterthe endof each,Jrn"rter.-iopL,
of corporatereportsto the securitiesind Exchangecommissionshall also
be
furnished
to theBoard.

section 18. Disprayof certificate of Registrationand License

to
Sell
The.certificateof Registrationand Licenseto Seil issuedby
the Board shail be
-owner,
displayedin a conspicuous
placein tt,eprincipal
officeof the
oearer,oroGr
or saresman,
as the casemay be and a xeroxcopythereofin aI its branchesano
offices-

Section 19.
License

Lost or Destroyed Certificate of Registration or

Uponlossor destr'..rction
of a.certificaieof Registration
or Licenseto Sella dupricate
copy thereofmay be issuedby the Boardafter satisfacto proof
of such loss or
destruction,and paymentof the prescribedfee. The factry
[hat rr"n oupri"utur,a"
beenissuedshallbe madeof record.

1.
46

Section 20. Advertisement

unitsshallbe
for the saleof subdivision
lotsand condominium
All advertisements
to Section19ofthe Decree.
declaredandapprovedby the Boardpursuant

Section21. Time for Completion

Everyownerof developershallconstructand providethe facilities,infrastructures,
and as far
including
watersupplyand lightingfacilities
otherformsof development,
the
approved
which are offeredand indicatedin
as practicableimprovements,
printedmatters,lettersor
prospectus,
plans,brochures,
or condominium
subdivision
withinone (1) yearor withinsuchotherperiodof time
in any form of advertisement,
as miy be fixedby the Boardfromthe dateof the issuanceof licenseto sell for the
project.
or condominium
subdivision
Reouestfor extensionof time to completedevelopmentof a subdivisionor
of project
projectmaybe grantedonlyin caseswherenon-completion
condominium
is causedby fortuitousevents,legalordersor suchotherreasonsthat the board
may deemf'vprop"rwith the writtennoticeto lot or unit buyerswithoutpreiudiceto
the exerciseof theirrightspursuantto Section23 of the Decree'
by a revised
shallbe accompanied
of timefor completion
The requestfor extension
work programdulysignedandsealedby a licensedengineeror architectwith project
cases,theBoardmayrequire
schemetherefor.In appropriate
costingandfinanCing
bondamountingto 20% of developmentcost
the polting of additionalperformance
plan,or issuesuchordersit
portionof the approveddevelopment
of the unfinished
mayoeemproper.

Section 22. Translerof Ownershipor Changeof Name

Requestfor transferof ownershipand/orchange.of name may be grantedonly if
prolect
and condominium
there is a deed of absolutesale over the subdivision
on
and/orthe namethereofchangedwith an undertaking
iought to be transferred
the
of.
for the.completion.
if* b"rt of the transfereeto assumefull responsibility
7
in Sections and 13 hereofshall be
J"uiopm"nt thereof. The requirements
aPPlicable.
whenever
observed
such requestfor transferof ownershipor changeof name shall be publishedat
applicant;sexpensein a newspaperof generalcirculationwithin the city or
wherethe projectis locatedat leastoncea weekfor two (2) consecutive
municipality
weeKs.

Section 23. Alterationof Plans

t ti
Requestfor alterationof subdivision plans may be granled if.the.requirements
Seition 22 of the Decreeare compliedwith. Alterationof condominiumplans shilrl
be in accordancewith Section4 of the CondominiumAct as amendedby Sections1
and 2 of RA 7899.
T"r.,,

xJ

4'7

Section 24. Non-forfeitureof Paynrents

No installmentpaymentmade by a buyer in a new or existingsubdivision
or
projectfor the lot or unithe contractedto buyshallbe forfeitedin favor
condominium
of the owner or developer when the buyer, afier due notice to the owneror
developerand clearancefrom the Boarddesistsfrom furtherpaymentdue to the
failureof the owneror developerto developthe projectaccordingto the approved
plansand withinthe time limitfor complyingwith the same. suchbuyer may at his
option be reimbursedthe total amount paid includingamortizationinterestsbut
excludingdelinquency
interests,with interestthereonat ihe legalrate.

Section 25. Registrationof Gonveyances

sales or conveyancesof the subdivisionlots and condominiumunits shall be
psisteredwithin t80 days from executionthereofby the sellerwith the Registerof
Deedsof the provinceor citywherethe propertyis situatedpursuantto secti5nt 7 of
the Decree. Exceptas may othe*ise be providedfor by raw,the Boardmay rn
appropnatecases cause the Registerof Deedsto cancel registration,entriesor
annotations
on titlesmadeon thisregard.

Section 26. Mortgages

Mortgageof any unitor lot by the owneror developershallbe clearedwiththe
Board
pursuantto Section1I of the Decree.

Section 27. RealtyTax and OtherCharges

No realtytax assessmentor otherchargesshail be imposedon a rot
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
saresmensha be resorvedin accordance
withthe Ruresof procedureto oouem'tne
Conductof Heanngsbeforethe Board.

Section 29. AdministrativeFines

Any owner or dearer who. fairs to register an existing subdivisionproject
or
condominiumprojectwithinthe periodprescribedunoertr6se rub.;il
,.AGa..
shall be penarrzedin accordancewith the approved schedure
of fines. The
impfementation
andpaymentof theseadministrative
finesshal not precrudecriminat
prosecution
of the offenderunderSec{ion39 of the Decree.

Section 30. Criminalpenalties

Any personviolatingany provisionsof the
shallsufferthe penaltiesprovidedfor undel
I
4t
*L
"Ji.

Section31. ldentificationof Lot Subjectof Sale

projectshallattachto andshallformpartof the
Theowneror dealerof a subdivision
and
salesdocumentof any lot,a sketchplanclearlyshowingthe area,boundaries
proiect,
as well as the
dimensionsof the lot in relationwith the blockand the whole
marks,to be
public
other
land
and
prolect
roads
with
tn relation
Iocationof the
geodetic
engineerandsignedby thesellerandbuyer'
by a licensed
certified

as Witnessto Sales
Section 32. Broker/Salesman
lotor condominium
thesaleof a subdivision
who negotiated
The brokeror salesman
of his
withan indication
to the salesdocument
unitshallactas oneof thewitnesses
made
directly
was
numberand renewaldate. lf the sale
certificateof Registration
by theowneror dealer,thatfactmustbe so statedin thesalesdocument'

Section33. Fees
Shallcollectfeesin accordance
unitconcerned
The Boardor the localgovernment
concerned
by the Boardor the localgovernment
of feesapproved
withtheschedule

Section 34. APPlicabilitY

projects
andcondominium
subdivision
TheSe RUIeSshallapplyonlyto residential
as definedby the Decreeand relatedlaws

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

Clause
Section36. SeParabilitY
any
The provisionsof these Ru|esare herebydec|aredseparab|e,and in the event
shall
provisions
all
other
of such provisionsare declarednull and void,the validityof
not be affectedtherebY.

Section 37. EffectivitY

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

4,
49

ANNEXA
MALACAfrANG
Manila
DECREENO,957
PRESIDENTIAL
LOTSAND CONDOMINIUMS,
THESALEOF SUBDIVISION
REGULATING
THEREOF
PROVIDING
PENALTIESFORVIOLATIONS
the requirements
WHEREAS,it is the policyof the Stateto affordits inhabitants
of decenthumanseftlementand to providethemwith ampleopportunitiesfor improvif
theirqualityof life;
WHEREAS,numerousreportsrevealthat manyreal estatesubdivision
owners,
developers, operators, and/or sellers have reneged on their representationsand
obligationsto provide and maintainproperlysubdivisionroads, drainage,sewerage,
watersystems,lightingsystems,andothersimilarbasicrequirements,
thusendangering
the healthand safetyof homeand lot buyers;
WHEREAS,reportsof alarmingmagnitudealso show cases of swindlingand
perpetratedby unscrupulous
fraudulentmanipulations
subdivisionand condominium
sellers and operators,such as failure to delivertitles to the buyers or titles free from
liensand encumbrances,
and to pay real estatetaxes,and fraudulentsalesof the same
subdivision
lotsto differentinnocentpurchasers
for value;
WHEREAS,theseactsnot only undermine
the landand housingprogramof the
governmentbut also defeatthe objectivesof the New Society,particularlythe promotion
of peaceand orderandthe enhancement
of the economic,
socialand moralconditionof
the Filipinopeople;
WHEREAS,this state of affairs has renderedit imperativethat the real estale
subdivision
and condominium
businesses
be closelysupervised
and regulatedand that
penalties be imposed on fraudulentpracticesand manipulationscommifted in
connectiontherewith.
NOW,THEREFORE,
l, FERDINANDE. MARCOS,presidentof the phitippines,
by virtueof the powersvestedin me by the constitution,do herebydecreeand order:
Title I
TITLEAND DEFINITIONS
SEC. 1. Tltle. - This decreeshail be known as THE SUBDMSION AND
CONDOMINITJM
BUYER'SPROTECTIVE
DECREE.
sEc. 2. Definition of rerms. - when used in this decree,the followingterms
shallun{essthe contextothenarise
indicates,havethe followingrespectivemeanings:
a)
Person.- "Person"shalrmeana naturaror a juridicalperson. A juridical
person refers to a businessfirm whether a corporation,partnership,cooperativeor
association
or a singleproprietorship.

or attemptto
b)
Saleor Sell. - "Sale"or "Sell"shallincludeeverydisposition,
of a subdivisionlot, includingthe buildingand
dispose,for a valuableconsideration,
projector condominium
unit in a
thereof,if any, in a subdivision
other improvements
project."Sale"and "Sell"shallalsoincludea contractto sell,a contractof
condominium
purchaseand sale,an exchange,an attemptto sell,an optionof sale or purchase,a
solicitation
of a sale,or any offerto sell,directlyor by an agent,or by a circular,letter'
or otherwise.
advertisement
A privilegegivento a memberof a cooperative,corporation,partnership,or any
or givingthe rightof
of receiptevidencing
and/orthe issuanceof a certificate
association
fee or
payment
the
membership
of
of
participation
in, or right,any landin consideration
dues,shallbe deemeda salewithinthe meaningof thisdefinition.
shall includeany
c)
Buy and Purchase.- The term "Buy"and "Purchase"
contract to buy, purchase, or othenruiseacquire for a valuable considerationa
if any, in a subdivision
lot,includingthe buildingand otherimprovements,
subdivision
project.
unitin a condominium
projector a condominium
subdivisionProject. - "subdivisionProject"shall meana tract or a parcel
d)
of land registeredunder Ait No. 496 which is partitionedprimarily for- residential
thereon,and offeredto the
purposesiito individuallots with or withoutimprovements
public for sale, in cash or in installmentterms. lt shall include all residential,
commercial,industrialand recreationalareas, as well as open spaces and other
and publicareasin the project'
community
subdivisionLot. - "subdivisionLot" shallmeanany of the lots,whether
e)
pqect'
in a subdivision
or recreational,
industrial,
commercial,
residential,
f)
complexsubdivisionPlan. - "complexsubdivisionPlan"shall meana
subdivisionplan of a registeredland whereina street,passagewayor open spacels
on the Plan.
delineated
condominiumProject. - "condominiumProject"shall mean the entire
s)
"of
parcel real propertydivided or to be divided primarilyfor residentialpurposesinto
thereon'
all structures
units,including
condominium
h)CondominiumUnit.-.CondominiumUnit'shal|meanapartofthe
use or ownership,including
project intendedfor any typeof independent
condominium
one or more roomsor spaceslocatedin one or morefloors(or part of partsof floors)in
abui|dingorbui|dingsandsuchaccessoriesasmaybeappendedthereto.
owner. - ,.owner'.sha||referto the registeredownerof the |andsubjectof
i)
project.
or a condominium
a subdivision
j)Deve|oper'-''Developer''sha||meanthepersonwhod.eve|opsor
projectfor and in behalfof the owner
projector condominium
improvesthe subdivision
thereof.
Dealer.- "Dealer"shallmeanany persondirectlyengagedas principalin
k)
realestatewhetheron a full-timeor partthe businessof buying,sellingor exchanging
timebasis.

51

l)
Broker. - "Broker"shallmeanany personwho, for commissionor other
compensation,
undertakesto sell or negotiatethe sale of a real estatebelongingto
another.
m)
Salesman.- "Salesman"
shallreferto the personregularlyemployedby a
brokerto perform,for and in his behalf,any or all the functionsof a realestatebroker.
n)

Authority.- 'Authority"shallmeanthe NationalHousingAuthority.

Title ll
REGISTRATION
AND LICENSETO SELL

sEc. 3. NationalHousingAuthority. - The NationalHousingAuthorityshall

have exclusivejurisdiction
to regulatethe real tradeand businessin accordancewith
the provisions
of thisDecree.
sEc. 4. Registrationof Project. - The registeredownerof a parcelof landwho
wishesto convertthe sameintoa subdivision
projectshallsubmithissubdivision
ptanto
the Authoritywhichshallact uponand approvethe same,upona findingsthatthe plan
complieswith the Subdivision
Standardsand Regulations
enforceable
lt the time the
plan is submifted.The same procedureshallbe followedin the case of a plan
for a
projectexceptthat,in addition,saidAuthorityshallact uponand approve
condominium
the planwith respectto the buildingor buildingsincludedin the condominium
projectin
accordance
withthe NationalBuildingCode(R.A.No.6541).
plan,as so approved,shallthen be submittedto the Directorof
.
Th" subdivision
Landsfor approvalin accordancewith the procedureprescribedin seition 44 of
the
Land Registration
Act (Act No. 496 as amendedby R.A. No. 440): provided.that in

of theCondominium
Act(R.A.No.4726).
The owner or the rear estate dearer interestedin the sare of
rots or units,
respectively,
in suchsubdivision
projector condominium
projectshallregisterthe project
l/i1h the Authorityby firingtherewitha sworn registrationstatemenicontainingthe
following
information;
a)

Nameof the owner;

b)

The locationof.the owner'sprinciparbusinessoffice,and if the owner

rs a
non-resident
Firipino,
the nameand addressof his agentor representative
in the philippinesauthorizedto receivenotice;

c)

The namesand addressesof ail the directorsand officersof the

business
firm, if the owner:

d)

The general characterof the businessactuallytransactedor

to be
transactedby the owner;
52

e)

A statementof the capitalization

and
of the owner,includingthe authorized
proportion
thereofwhichis
outstanding
amountsof its capitalstockandthe
paro-up.

The followingdocumentsshatlbe attachedto the registrationstatement:

a.

A copy of the subdivisionplan or condominiumplan as approvedin

of thissection;
accordance
withthefirstand secondparagraphs

b.

letter,or
A copy of any circular,prospectus,brochure,advertisement,
lotsor
communication
to be usedfor the publicofferingof the subdivision
units;
condominium

c.

In case of a businessfirm, a balancesheet showingthe amountand

generalcharacterof its assetsand liabilitiesand a copy of its articlesof
as the casemay be'
or association,
or articlesof partnership
incorporatton
with all the amendmentsthereofand existingby-lawsor instruments
thereto;
correponding

d.

A title to the propertywhich is free from all liens and encumbrances:

unitis
lotor condominium
thatin caseanysubdivision
Provided,however,
mortgaged,itissufficientiftheinstrumentofmortgagecontalnsa
stipulationthat the mortgageeshall release the mortgage on any
unitas soonas the full purchasepricefor
lot or condominium
subdivision
the sameis PaidbYthe buYer.

The person filing the registrationstatementshall pay the registrationfees

prescribed
thereforeby theAuthority.
causeto be publisheda noticeof the
the Authorityshallimmediately
Thereupon,
at the expenseof the applicant- owneror dealer,in
statem-ent
filingof the registration
in Englishandanotherin.Pilipino,
onepublished
of generalcirculation,
two'newspapeis
statementfor the
weeks,recitingthat a registration
once a week for two consecutive
units his been filed in the NationalHousing
sale of subdivisionlots or condominium
nutnoritv;that the aforesaidregistrationstatement,as well as the papersattached
such
duringbusinesshoursby interestedparties,
thereto,are opento inspection
-under
the Authoritymay impbse;and that copiesthereofshallbe furnishedto
i"grl"irn.
"J paymentof the properfees.
any partyupon
projectshallbe deemedregistered
The subdivisionprojector the condominium
upon completionof the above publicationrequirement.The fact of such registration
or
certificateto be issuedto the applicant'owner
sirallbe evidencedby a registration
dealer.
SEC.5. Licenseto Sell - Suchowneror dealerto whom has been issueda
certificateshall not, however,be authorizedto sell any subdivisionlot or
registration
projectunlesshe shatlhavefirst obtaineda license
unitin the registered
condominium
of suchproject'
to sellthe projectwithintwoweeksfromthe registration
therefore,shall issueto such owner or
The Authority,upon properapplication
of the
dealerof a registeredprojecta'licenseto sellthe projectif, afteran examination
.stitementfiled by said owner or dealerand all the pertinentdocuments
registration
CJ

.attachedthereto,he is convincedthat the owner or dealer is of good repute,that his

businessis financiallystable,and that the proposedsale of the subdivisionlots or
condominium
unitsto the publicwouldnot be fraudulerit.
SEC, 6. Performance Bond. - No licenseto sell subdivisionlots or
condominiumunits shall be issuedby the Authorityunder section 5 of this Decree
unlessthe owneror dealershall havefiled an adequateperformancebond approvedby
said Authorityto guaranteethe constructionand maintenanceof the roads, gutters,
drainage,sewerage,water system,lightingsystems,and full developmentof the
subdivisionprojector the condominium
projectand the complianceby the owner or
dealerwiththe applicable
lawsandrulesandregulations.
The performancebond shall be executedin favor of the Republicof the
Philippinesand shall authorize the Authority to use the proceeds th'ereoffor the
purposesof its undertakingin caseof forfeitureas providedin this Decree.
sEc' 7. . Exempt Transactions. - A ricenseto seil and perfo'nance bond shall
not be requiredin any of thefollowingtransactions:
a)

sale'of a subdivisionrot resurtingfrom the partitionof randamong coownersandco-heirs.

b)

Saleor transferof a subdivision

fot by the originarpurchaserthereofand
any subsequent
saleof the samelot.

c)

sale of a subdivision
fot or a condominium
unit by or for the accountof a
m:rtSaqegin the ordinarycourseof businesswhennecessaryto liquidate
a bonafidedebt.

sEc' 8. suspension of Licenseto sert. - Uponverifiedcompraint

fitedby a
buyerof a subdivisionlot or a condominium
unitor any interestedp",tv,
in"
irft,oritv
'ticense
may, in its discretion,immediatery
suspendthe owner,sor deare/s
to sert
pendinginvestigationand hearingoi the caseas provided
,n section rs heieor.

The suspensionordermay be riftedif, afternoticeand

hearing,the Authorityis
convincedthat the registrationstatementis accurateor
that any aericlencyttreieinhas
been conected or supplementedor that the iaie io tne public
of the subdivisionor
condominium
projectwiil neitherbe fraudurent
nor resurtin fraud. rt shailarsobe rifted
upondismissalof the complaintfor lackof tegatbasis
pensions,
the suspension
of the rightto sell
rsons notified thereof, shall be deemed
rderof suspension
has in the meantimebe

54

SEC.9. Revocationof RegistrationCertificateand Licenseto Sell. - The

Authoritymay,motopropioor uponverifiedcomplaintfiledby a buyerof a subdivision
of any subdivisionprojectand the
lot or condominiumunit, revokethe registration
lot or condominium
licenseto sellany subdivision
unitin saidprojectby issuingan order
into the affairsof
to this effect,with his findingsin respectthereto,if uponexamination
provided
for in Section14 hereof,it shallappear
the owneror dealerduringa hearingas
evidencethatthe saidowneror dealer:
thereis satisfactory
a)

ls insolvent;
or

b)

of this Decreeor any applicableruleor

Has violatedany of the provisions
bond;
of his/itsperformance
or any undertaking
regulation
of theAuthority,
or

c)

Has been or is engagedor is aboutto engagein fraudulenttransactions;

or

d)

brochure,circularor
in any prospectus,
Has madeany misrepresentation
projectthat
project
condominium
or
other literatureabout the subdivision
buyer;or
to prospective
has beendistributed

e)

ls of badbusinessrepute;or

fl

with law or soundbusiness

Doesnot conducthis businessin accordance
PrinciPles.

or an unincorporated
or corporation
Wherethe owneror dealeris a partnership
certificateand
registration
its
of
it shallbe sufficientcausefor cancellation
association,
or any officeror directorof such
its licenseto sell, if any memberof such partnership
has beenguiltyof any act or omissionwhichwouldbe cause
or association
corporation
'refusing
of an individualdealer,brokeror salesmanas
or revokingthe registration
for
providedin Section11 hereof.
SEC. 10. Registers of Subdivision Lots and Condominium Units. A record
unitsshallbe keptin the Authoritywhereinshallbe
lotsand condominium
of subdivision
enteredall ordersof the Authorityaffectingthe conditionor statusthereof The registers
unitsshallbe opento publicinspectionsubjectto
lots and condominium
of subdivision
such reasonablerulesas the Authoritymay prescribe
Title lll
DEALERS.BROKERSAND SALESMEN
sEc. 11. Registrationof Dealers,Brokersand salesmen. No real estate
dealer,brokeror sa|ert"n shallengagein the businessof sellingsubdivisionlots or
unitsunlesshe has registeredhimselfwith the Authorityin accorclance
condominium
of thissection'
withthe provisions
lf the Authorityshallfind that the applicantis of good reputeand ha.scomplied
fee, he
including
the paymentof the prescribed
rulegof the Authority,
withthe applicable
or
a
bond'
filing
shallregistersuchapplicantas a dealer,broker,or salesmanuponhis
othersjcurity in lieuthereof,in suchsum as may be fixedby the Authorityconditioned

upon his faithfulcompliancewith the provisionsof this Decree: Provided,that the

registration
of a salesmanshallceaseuponthe termination
of his employmentwith a
dealeror broker.
Every registrationunder this section shall expire on the thirty-firstday of
Decemberof each year. Renewalof registration
for the succeedingyear shall be
granteduponwrittenapplication
thereforemadenot lessthanthirtynor morethansixty
days beforethe first day of the issuingyear and upon paymentof the prescribedfee,
withoutthe necessityof filing furtherstatementsor information,unless specifically
requiredby the Authority.All applications
filedbeyondsaid periodshallbe treatedas
original
applications.
The names and addressesof all personsregisteredas dealers,brorers or
salesmanshallbe recordedin a Registerof Brokers,Dealersand salesmankeptin the
Authoritywhichshallbe opento publicinspection.
SEC. 12. Revocationof Registrationas Dealers,Brokers, Salesmen.
Registrationunder the precedingsection may be refusedor any registrationgranted
thereunder,revokedby the Authorityif, after reasonablenotice-and-hearing,it shall
determinethatsuchapplicantor registrant:
1)

Has violatedany provisionof this Decreeor any rule or regulationmade

hereunder:
or

2)

Hasmadea materialfalsestatement
in hisapplication
for registration;
or

3)

Has. been guilty of a fraudulentact in connectionwith any sale of a

subdivision
lot or condominium
unit;or

4)

Has demonstrated
his unworthiness,
to transactthe businessof dearer,
broker,or salesman,
as the casemavbe.

ln case of chargesagainsta saresman,noticethereofsha arso given

be
the
brokeror dealeremploying
suchsalesman.
Pendinghearingof the.case,the Authorityshail have the power
to order the
suspensionof dearer's,broker'sor saresman's
registration;
provided,thatiucn oroer
shallstatethe causefor the suspension.
The suspension
or revocation
of the registration
of a dearershaflcarrywith it arl
..
the suspension
or revocation
of the registration-s
of all hissalesman.

56

Title lV
PROCEDURE
FORREVOCATION
OF
CERTIFICATE
REGISTRATION
the existenceof any ground
SEC.13. Hearing. - In the hearingfor determining
and licenseto
registration
certificate
of
and/orrevocation
or groundsfor the suspension
sellas providedin SectionsI andt hereof,the followingshallbe compliedwith:
a)

Notice - No such hearingshall proceedunless the respondentis

furnishedwith a copyof the complaintagainsthim or is notifiedin writing
of the purposeof suchhearing.

b)

Venue - The hearingmay be heldbeforethe officeror officersdesignated

by the Authorityon the dateand placespecifiedin the notice.

c)

and
Natureof Proceedings- The proceedingsshall be non-litigious
courts
in
obtaining
summaryin naturewithoutregardto legaltechnicalities
of law. The Rulesof Court shall not apply in said hearingexcept by
analogy or in a suppletorycharacterand wheneverpracticableand
convenient.

d)

to the Hearing- Forthe purposeof the hearing.ofother

PowerIncidental
proceedingunderthis Decree,the officeror officersdesignatedto hearthe
oaths,subpoenawitnesses,
complaintshallhavethe powerto administer
of
requirethe production
and
take
dispositions,
conductocularinspections;
anybook,paper,correspondence'memorandum,orotherrecordwhich
are deemedrelevantor materialto the inquiry.

SEC.14. ContemPt.a)

Directcontempt. - The officeror officersdesignatedby the Authorityto

hearthecomp|aintmaysummarilyadjudgeindirectcontemptanyperson
in the presenceof nearthe said hearingofficialsso
guiltyof misbehavior
to
as to obstructor interruptthe proceedingsbeforethe same or of _refusal
beswornortoanswerasawitnessortosubscribeanaffidavitor
depositionwhen lawfullyrequiredto do so. The personfound guiltyof
directcontemptunderthissectionsha||bepunishedbyafinenot
exceedingfifty(P50.oo)pesosorimprisonmentnotexceedingfive(5)
daYs,or both

b)

Indirectcontempt. - The otficeror officersdesignatedto hear the

comp|aintmaya|soadjudgeanypersoninindirectcontemptongrounds
andinthemannerprescribedinRuleT'loftheRevisedRulesofCourt'

sEc. 15. Decision. - Thecaseshallbe decidedwithinthirty(30)daysfromthe

of the
time the sameis submittedfor decision.The decisionmay orderthe revocation
or
cancellation,
proiect,the suspension,
or condominium
of the subdivision
registration
part,
the
in
of
whole
or
reiocationof the licenseto sell and/or the forfeiture,in
oerformancebond mentionedin Section6 hereof. In case forfeitureof the bond is
ordered,the Decisionmay directthe provincialor city engineerto undertakeor cause
or condominium
for the subdivision
of roadsind of otherrequirements
the construction
shall be
decision
Such
forfeited.
the
amount
to
as stipulatedin the bond,chargeable

executoryandshallbecomefinalafterthe lapseof 15 daysfromthe dateof

immediately
receiptof the Decision.
SEC.16. Ceaseand DesistOrder. - Wheneverit shallappeartothe Authority
that any personis engagedor aboutto engagein any act or practicewhichconstitutes
or will constitutea violationof the provisionsof this Decree,or of any rule or regulation
thereunder,
it may,upondue noticeand hearingas providedin Section13 hereof,issue
a ceaseanddesistorderto enjoinsuchactor practices.
SEC. 17. Registration.-All contractsto sell,deedsof sale and othersimilar
instruments
relativeto the saleor conveyance
of the subdivision
lotsand condominium
units,whetheror not the purchasepriceis paidin full,shallbe registered
by the sellerin
the Officeof the Registerof Deedsof the provinceor citywherethe propertyis situated.
Whenevera subdivision
plandulyapprovedin accordance
withSection4 hereof,
togetherwith the corresponding
owner'sduplicatecertificate
of title,is presentedto the
Registerof Deedsfor registration,
the Registerof Deedsshall registerthe same in
accordancewith the provisionsof the Land RegistrationAct, as amended: provided,
however,that if thereis a street,passageway
or requiredopen spacedelineateoon a
planhereafterapprovedandas definedin this Decree,the Register
complexsubdivision
of Deedsshallannotateon the new certificateof ti e coveringthe street,passagewayor
open space,a memorandum
to the effectthat exceptby way of donationin favorof a
city or municipality,
no portionof any street,passageway,
or openspacedelineatedon
the plan shall be closedor otherwisedisposedof by the registeredowner withoutthe
requisiteapprovalas providedunderSection22 of thisDecree.
SEC. 18. Mortgages. - No mortgageon any unit or lot shallbe made by the
owneror developerwithoutpriorwrittenapprovalof the Authority.Suchapprovalshall
not be grantedunlessit is shownthatthe proceedsof the mortgageloanshallbe used
for the development
of the condominium
or subdivision
prolectlnd effectivemeasures
have been providedto ensuresuch utilization.The loan value of each lot or unit
covgredby the mortgageshall be determinedand the buyerthereof,if any, shall be
notifiedbeforethe releaseof the loan. The buyermay,at his option,pay his installment
for the lot or unit direcilyto the mortgageewho in"tt appiy the' paymentsto the
corresponding
mortgageindebtedness
securedby the particulirlot or unit beingpaid
for, with.a.viewto enabringsaid buyerto obtaintifleover the lot or unit promptiy
after full
paymentthereof.
sEc' 19. Advertisements.- Advertisements
thatmay be madeby the owner
or developerthroughnewspaper,radio,terevision,
reaflets,ciicuraror any'otherform
aboutthe subdivision
or the condominiunr
or its operations
or activitiesmuit reflectthe
realfactsand mustbe presentedin suchmannerthatwill nottendto misleador deceive
thepublic.
The owner or developershall be answerableand liable for the facilities,
improvements,
infrastructures
or otherformsof development
represented
or promisedin
brochures,adverlisements
and othersalespropaganda
by the owneror
'shall-form disseminated
developeror his agents and the same
part of rhe saies waranties
enforceable
againstsaid owneror developer,
joinflyand severally.Failureto compry
withthesewarranties
shallalsobe punishable
in accordance
withtirepenaltiesprovided
for in this Decree.
F,a

SEC.20. Time of Completion.- Everyowneror developershallconstructand

provide the facilities,improvements,infrastructuresand other forms of development,
includingwater supplyand lightingfacilities,which are offeredand indicatedin the
plans,brochures,prospectus,printedmatters,
approvedsubdivisionor condominium
withinone yearfromthe dateof the issuanceof
letiersor in any formof advertisement,
projector such otherperiodof time as
or condominium
the licensefor the subdivision
maybe fixedby the AuthoritY.
lotsor condominium
sEc. 21. SalesPriorto Decree.- In casesof subdivision
unitssold or disposedof priorto the effectivityof this Decree,it shallbe incumbentupon
the owner or developerof the subdivisionor condominiumproject to complete
as providedin the precedingsectionwithintwo
compliancewith his or its obligations
yearsfromthe dateof this Decreeunlessotherwiseextendedby the Authorityor unless
withSection6 hereof.
bondis filedin accordance
an adequateperformance
underthis and
Failureof the owneror developerto complywith the obligations
the precedingprovisionsshallconstitutea violationpunishableundersections38 and
39 of thisDecree.
sEc. 22. Alterationof Plans. - No owneror developershallchangeor alter
facilitiesfor publicuse and/orother form of
the roads,open spaces,infrastructures,
plan and/or
subdivisiondevelopmentas containedin the approvedsubdivision
and the
Authority
of
the
withoutthe permission
i"pr.r"nt"o in its advertisements,
or in the
association,
wiittenconformityor consentof the duly organizedhomeowners'
absenceof the laiter,by the majorityof the lot buyersin the subdivision.
paymentmadeby a
sEc. 23. Non-Forfeitureof Payments. - No installment
pro
or condominium
buyerin a subdivision
shallbe forfeitedin favorof the owneror d
desistsfromfurthet
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 eor
ventof
due for reasonsotherthanthe failureof the owner
his failureto pay the installments
Jeveloperto developthe projectshallbe governedby RepublicAct No.6552
Where the transactionor contractwas entered into prior to the effectivityof
to the
RepublicAct No.6552on August26,1972,the defaultingbuyershallbe entitledlaw in
paidafterthe effectivityof the
refundbased6n the installments
corlesfonOing
the absenceof any provisionin the contraclto the contrary'
sEc.25.lssuanceofTit|e..Theownerordevelopersha|lde|iverthetitleof
those
the lot or unit to the buyeruponfull paymentof the lot or unit. No fees,except
requireOfor the registrationol the de6Oof sale in the Registry of Deeds, shall be
collectedfor the issuanceof suchtitle. In the eventa mortgageover the lot or unit is
at the timeof the issuanceof the titleto the buyer,the owneror developer
outstanding
portionthereofwithinsix monthsfrom
shallredeemthe mortgageor the corresponding
such issuancein ordei that the title over any fully paid lot or unit may be securedand
herewith'
deliveredto the buyerin accordance
59

SEC.26. RealtyTax. - Realestatetax andassessment

on a lot or unitshallbe
paidby the owneror developerwithoutrecowseto the buyerfor as longas the titlehas
not passed the buyer; Provided, however, that if the buyer has actually taken
possession
of and occupiedthe lot or unit,he shallbe liableto the owneror developer
for suchtax and assessment
effectivethe yearfollowingsuchtakingof possession
and
occupancy.
SEC,27. Other Charges. - No owneror developershalllevy uponany lot or
unitbuyera fee for an allegedcommunity
benefit.Feesto financeservicesfor common
comfort, security and sanitation may be collected only by a properly organized
homeowners
association
and onlywiththe consentof a majorityof the lot or unitbuyers
actuallyresidingin the subdivision
or condominium
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
locatedwithinthe subdivision
or whichmay be reachedonly by passing
throughthe subdivision.
sEc' 29. Right of way to pubric Road. - The owner or deveroperof a
subdivision
withoutaccessto any existingpublicroad or streetand such rightof way
must be developedand maintainedaccordingto the requirementof the g6vernment
authorities
concerned.
. . sEc. 30. organization of HomeownersAssociation. - The owner or
developerof a subdivisionprojector condominiumprojectshall initiatethe organization
of a homeowners
association
amongthe buyersand residentsof the projeJtsfor the
purposeof promotingand protecting
theirmutualinterestand 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

converslonis
approvedby the Authority.
sEc. 32. Phases of subdivision. - For purposesof comprying
with the
provisionsof this Decree,the owneror deveropermay divide
tne devebi#erit and sale
of the subdivision
intophases,eachphaseto covernot ressthanten
troineciares. rne
requirementimposedby this Decreeon the subdivision
as a whole shall be deemed
imposedon eachphase.
. 9Eq. 33. Nullity of Waivers. _ Any condition,stipulation,or provisionin
contractof sale wherebyany personwaivescompriancewiih any prwilion
or tnis
Decreeor of any ruleor regulation
issuedthereunder'shall
be void.
sEc. 34. visitoriar powers. - This Authority,throughits dury
authorized
representativemay, at any time, make an examinationinto the business
affairs,
administration,
and conditionof any person,corporation,
partnership,
coopeiatiue,or
association
engagedin the businessof sellingsubdivision
lbts and condominium
unrts.
60

For this purpose,the officialauthorizedto do so shallhave the authorityto examine

under oath the directors, officers, stockholdersor members of any corporation,
partnership,association,cooperativeor otherpersonsassociatedor connectedwith the
businessand to issue subpoenaor subpoenaduces tecum in relation to any
investigation
thatmayarisetherefrom.
The Authoritymay also authorizethe Provincial,City or MunicipalEngineer,as
the casemaybe,to conductan ocularinspection
of the projectto determinewhetherthe
developmentof said projectconformsto the standardsand specificationsprescribedby
the government.
The books, papers,letters,and other documentsbelongingto the personor
entitiesherein mentionedshall be open to inspectionby the Authorityor its duly
reoresentatives.
authorized
SEC. 35. Take-OverDevelopment. - The Authority,may take-overor cause
the developmentand completionof the subdivisionor condominiumprojectat the
jointlyand severally,in caseswherethe owneror
expenseof the owneror developer,
developerhas refusedor failedto developor completethe developmentof the Project
as providedfor in thisDecree.
The Authoritymay, after such tiake-over,demand,collect and receivefrom the
buyers the installmentpaymentsdue on the lots, which shall be utilizedfor the
of the subdivision.
development
SEG.36. Rules and Regulations. - The Authorityshallissuethe necessary
of the provisionsof this
standardsrulesand regulationsfor the effectiveimplementation
aftertheir
shalltake effectimmediately
Decree. Suchstandards,rulesand regulations
publicationthree (3) times a week for tvvoconsecutiveweeks in any newspaperof
generalcirculation.
sEG. 37. Deputizationof Law EnforcementAgencies. - The Authoritymay
agencyin the executionof
or any lawenforcement
constabulary
deputizethe Philippine
its finalorders,rulingsor decisions.
SEc. 38. Administrative Fines, . The Authoritymay prescribeand impose
or
of this.Decree
of the provisions
finesnot exceedingten thousandpesosfor violations
and
Authority
of any rule or rejulation thereunder. Fines shalt be payable to the
enforjeablethroughwrits of executionin accordancewith the provisionsof the Rulesof
Court.
sEc. 39. Penahies. - Any personwho shallviolateany of the provisionsof this
that may be issuedpursuantto this Dcreeshall,
Decreeand/orany ruleor regulation
be punishedby a fine of nor morethantwentythousand(P20,000.o0)
uponconviction,
of not morethanten (10)years. Provided,that-inthe case
pesosand/orimprisonment
the President,Manageror
partnerships,
or associations,
cooperatives,
of corporations,
of the businessshall
or the personwho has chargeof the administration
Administrator
for anyviolationol thisDecreeandlorthe rulesand regulations
be criminallyresponsible
pursuantthereto.
promulgated

61

SEC. 40. Liability of Controlling Persons. - Everypersonwho directlyor

indirectlycontrolsany personliableunderany provisionof this Decreeor of any ruleor
regulationissuedthereundershallbe liablejointlyand severallywith and to the same
personactedin goodfaithand
extentas such controlledpersonunlessthe controlling
did not directlyor indirectlyinducethe act or acts constitutingthe violationor causeof
action.
SEC.41. Other Remedies.- The rightsand remediesprovidedin this Decree
shallbe in additionto any and all otherrightsand remediesthat may be availableunder
the existinglaws.
SEC.42. RepealingClause. - All laws,executiveorder,rulesand regulations,
or partsthereofinconsistent
with the provisions
of this Decreeare herebyrepealedor
modifiedaccordingly.
SEC.43. Effectivity. - ThisDecreeshalltakeeffectuponits approval.
DONEin the Cityof Manila,this 12thday of July,in the yearof our Lord,nineteen
hundredand seventy-six.
(SGD.)FERDINAND
E. MARCOS
President
Republicof the Philippines

By the President:

(sGD.)JACOBOC. CLAVE
Presidential
Executive
Assistant

oz

DECREENO.1216
PRESIDENT]AL
AND AMENDING
SUBDIVISION
"OPENSPACE"IN RESIDENTIAL
DEFTNING
SUBDIVISION
REQUIRING
NO,957
OECREE
SECTION31 OF PRESIDENTIAL
AND RESERVEOPENFOR
OWNERSTO PROVIDEROADS,ALLEYS,SIDEWALKS
PARKSOR RECREATIONALUSE
WHEREAS, there is a compelling need to create and maintain a healthy
environmentin human settlementsby 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
beyondthe commerceof men;
are for publicuseandare,therefore,
subdivision
DecreeNo. 953 at leastthirtypercent(30%)
WHEREAS,pursuantto presidential
of the total area of a subdivisionmust be reserved,developedand maintainedas open
be borneby the
areas,the costof whichwill untimately
spacefor parksand recreational
tot uuy"rt which therebyincreasethe acquisitionprice of subdivisionlots beyondthe
reachof the commonmass;
WHEREAS,thirtypercent(30%)requiredopenspacecanbereducedtoa|eve|
within
that will make the subdivisionindustry'viableand the price of the residentiallots
and
the meansof the low incomegroupand at the same preservethe environmental
of the land use and properdesignof space
ecotogicalbalancethroughrat'r6nal'control
andfacilities;
WHEREAS,pursuanttoPresidentialDecreeNo'757'governmenteffortsin
have been
housing,including,"rori."., functionsand activitiesmaximizeresults
intooneslngleagency,namely'the NationalHousingauthority;
concentrated
Now,THEREFoRE,|,FERDINANDE.MARcos,PresidentofthePhi|ippines'
byvirtueoft'hepowersvestedinmebytheConstitution,doherebyorderanddecree:
"openspace"shall.meanan
SECTION1. For purposesof this Decree'the term
recreationaluses, schools,roads,
parks,ptaygrounds,
area reserved
"r"tr"iuury-i5i
nospitit,heatthcenters,barangaycentersand othersimilarfacilities
;i;;;;;;;nif,
andamenities.

DecreeNo. 957 is herebyamendedto

sEcTloN 2. Section31 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 eopen
ownerormore
shallreservethirtypercentiso%) ot the grossareafor openspace. suchparks,
for
space shall have' the foliowingstandirds allocatedexclusively
use:
and recreational
playgrounds
a.

9% of grossareafor highdensityor socialhousing(66to 100family

lot pergrosshectare).
63

o.

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

Theseareasreseryefor parks,playgrounds
and recreational
use shall be nonalienablepubliclands,and non-buildable.
The plansof the subdivision
projectshall
includetree-planting
parts
on such
of the subdivision
as may be designatedby the
Authority.
Upontheircompletion
as certifiedto by the Authority,
the roads,alleys,sidewalks
and playgrounds
shallbe donatedby the owneror developerto the city or municipality
and it shall be mandatoryfor the localgovernments
to acceptprovided,however,thai
the parks and playgroundsmay be donatedto the Homeownersassociationof the
pro.iect
with consentof the city or municipality
concerned.No portionof the parksand
playgrounds
donatedthereafter
shallbe converted
to anyotherpurposeor purposes.
sEcrloN 3. sections2 and s of presidentiarDecreeNo. 953 are hereby
repealedand otherlaws,decrees,executiveorders,institutions
rulesand regulations
or
parts thereof inconsistent with these provisions are also repealed or amended
accordingly.
SECTION4. ThisDecreeshalltakeeffectimmediately.
Done in rhe city of
.
.Manira,this 14tbday of october in the year of our Lord,
nineteenhundredand seventy
seven.
(sGD.)FERDTNAND
E. MARCOS
President
of the philippines

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

64

HSRGAdministrativeOrderNo. 82-01
Seriesof 1982
DECREENO.
IMPLEMENTING
SEC.3I OF PRESIDENTIAL
RULESANDREGULATIONS
OECREENO.1216
957,AS AMENDEDBY PRESEIDENTIAL
OrderNo.648,thefollowingrulesare
Pursuantto ArticlelV, Sec.5 (c)of Executive
by P.D.No.1216.
promulgated
Sec.31 of P.D.No.957,as amended
to implement
RuleI
GENERALPROVISIONS
shall be knownas the subdivision
Section 1. Title. These Rulesand Regulations
refenedto as the Rules.
of RoadLotsandOpenSpaces,hereinafter
Regulations
on Donations
Section2.9s9p.9-qlAppls4!ip-l'TheseRu|essha||app|yon|ytosubdivisionprojects
dulyregisteredandiorticensedby the HumanSettlementsRegulatoryCommission.
Section3.Dce!erg!i-9l.9fEo]Lc.i-e9'|tisthepo|icyofthegovernmenttocreateand
openSpaces,roads,alleys,
by proViding
rn numanSettlements
maintaina healthyenvironment
therein.
as maybe deemedsuitableto enhancethe qualityof lifeof the residents
andsidewalks
Rulell
OF TERMS
DEFINITION
Section 4. gefinitiol of Terms. For purposesof theseRules:
a)

Commission
- shallmeanthe HumanSettlements
Regulatory
Commission

b)

SubdivisionProject- shall mean a tract

which is partitionedprimarilyfor resident
lhereon,andofferedto the
improvements
ir
commercial,
shallincludeall residential,
public
in the project;
areas
and
spacesandothercommunity

c)'

playgrounds'
Open space - shall mean an area reserved exclusivelyfor parks'
recreationaluses,and othersimilarfacilitiesand amenities'

d)

gutters'
Road lots - shall includeroads,sidewalks,alleysand plantingstrips,and its
drainageand sewerage.
Rulelll
FOR
APPROVALOF APPLICATION
OF COMPLETION
CERTIFICATE

section 5. Application for Gertificate of completion. Every registeredowner or

developerot a subdVisionprolEctwno wishesto donatethe road lots and opensp?ceof the
of Completion
for Certificate
snaltfirstapplywiththe Commission
sameto the localGovernment
the following:
by filingin triplicate
1)

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 Commissionin

coordination
withthe City/Municipality
concerned
shallconductan inspection
of the subdivision.
The inspector(s)shall then prepare his/her findings and/or recommendationto the
Commissioner-in-charge
whowillacton thesame.
Section Z. AppfSyel. lf the facts statedin the applicationfor Certificateof Completion
are foundto be trueand correct,the application
shallbe approvedthroughthe issuanceof the
Certiticate
of Completion
by the Commission.
Thereafter,
the registered
owneror developershallsubmitthe Certificate
of complefron
issuedby the Commission
to the City/Municipality
concernedtogetherwith his/herDeed of
Donation.
RulelV
EFFECTSOF DONATION
OF ROADLOTS/OPEN
SPACE
Section8. Riqht of Graeteeto DonateRoadLots and OpenSDace.Any personwho
is able to securea Certificateof Completionfromthe Commissionsnilt navetne riohtto donate
the road lols and open space to the city/Municipality
concerned,providedtha-tthe parks,
playgroundsand recreational
use may be donatedto the Homeowners
Associationof the
subdivision
withthe consentof the City/Municipality
concerned.
Section 9. -E,f-fectC.
Oncethe registeredowneror developerhas securedthe Certificate
of comp{etion
and hasexecuteda Deedof Donation
of RoadLotsand OpenSpace,he/sheshall
be deemedrelievedof the responsibility
of maintaining
the road lots and open spaceof the
subdivision
notwithstanding
the refusalof City/Municipality
concerned
to acceptthe donation.
should the registeredowneror deveropermerelysecurea certificateof completion
wthout makjng_
the correspondilgdeed of donation,he/sireis still deemedresponsibiefor the
maintenance
of the subdivision
facilities
in whichcasea reasonable
amounlof the performance
bond shall reservedto guaranteethe maintenanceof the road and open
ThL reserved
amount.shall
be totarryrereased
by the commissiononlyuponshowingby"p""".
ihe registereo
owner
or developer
of proofof a deedof donationexecutedin fivor of the city'/Municiparty
concerneo.
qandOpenSpace. Roadlotsandopenspaces
unicipality
or to the Homeowners
Association
as
purposeor purposes.In connection
therewith,

arienabre
rands,
andnobuirdins
orstructure
.r:"'i;Jlfi?fj[nilff"?1"j;t'ir".,3i'1n13n"3

essentialto lhe saidopenspaceas deterrninedby the City/Municipaliiy.

should the owner-donee

wish_to changeor arterthe use of the open space in the
subdivision,
priorpermission
fromthe commission *ritt"n conformity
of the duryorganrzeo
nomeownersassociation,or in the absenceof the ratter
"nJ by the majorityof tne rot
buyersin the
subdivision
shallbe requiredprovided
thatthe requiredopenspaceshalllikewisebe allocatedin
otherareasof the subdivision.
RuleV
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
rulesof pD 9S7and its relatedfaws.

66

of theserulesare herebydeclared
Section 12. SeparabilitvClause. The provisions
provisions
nulland void,the validityof all
declared
are
and in the eventany of such
separable,
otherprovisionsshallnot be affectedthereby.
in
afterits publication
Section13. EffeclMy. Theserulesshalltakeeffectimmediately
general
circulation.
of
a newspaper
26 August1982,Makati,MetroManila.
Promulgated,

(sGD.) ERNESTOC. MENOIOLA

and
Commissioner
Officer
ChiefExecutive

(SGD.) JESUSN, BORROMEO

Commissioner

(sGD.) ARTUROC. CORONA

Commissioner

(SGD.) ABNERP. CANLAS

Commissioner

(sGD.) SALVADORP. SOCRATES

Commissioner

(SGD,) RAMONB. CARDENA

Commissioner

(sGD.) GESARO. MARQUEZ

Commissioner

Attested:

(SGD.) EUFEMIOP. DACANAY

ActingCommissionSecretary

o/

ANNEXB
THECONOOMINIUM
ACT
ANACTTO DEFINE
CONDOMINIUM,
ESTABLISH
REQUIREMENTS
FORITSCREATION,
ANDGOVERN
tTS|NCIDENTS.
(Rep.Act No.4Z2O)
sEcrloN 1. Theshorttite of thisActshatbe "Thecondominium
Act."
sEc'|oN 2. A condominium
is an interest.inrearpropertyconsisting
of a
separateinterestin a unit in residentiar,
industriar
or
commerciar
buirdinq
.a
and
an
undividedinteresrin commondirecryor inoirectry,-initr"
i";;';;;;i,
ii,."r'oL,"o
uno
in othercommonareasof the building.I .otiiorinium
may incrude,
in adcrition,
a
separateinterestin otheroortions.of
suih legrproperty.Tiiletd tnecommonlr.a, may
be held by a corporation
speciailytormeotoiin6lurpo"" (hereinafter
knownas the
"condominiumcorporation';)in -which tn"
iif ro!* of separate interests shall
automaticafly
be members
or sharehorders,
to th; exctusion
ot'oineis,in'prJiortion
to
theappurtenant
interest
of theirrespectiu"
unit.inln" common
areas.
The interestsin condominium
may be ownershipor any other interestIn real
propertyrecognized
by therawof property'in
tnecivircoie a.J .i',", i"rtiri;;l;*".
SECTION
3. As usedin thisAct,unlessthecontextotherwise
requires:
(a)
meansa condominium
as definedin the text preceding
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 buildingor
buildings *u,
:ndedthereto.
"nJ
(c) "project"meansthe entireparcer
of rearpropertydividedor to be dividedin
condominiums,
including
ali shucturesthereon.

to'

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

enrireprojecr
excepting
ar unitsseparatery

(e) "To divide" rear.propertymeans

to divide the ownershipthereof or other
interesttherein,.by
co-nvbying iirJr"
condominiums
thereinbut ress
thanthe wholethereof.
"n"
sEctoN 4. The orovisionsof this Act
shat appryro propertydividedor to be
dividedintocondominiums,only
ii'thl[ ;i]iil;fted
in the Registerof Deedsof the
provinceor city in which the'prop"rtl;,
'iriii"l]tt"."n"i'01#l"tenteo
in the corresponding
certificate
of tifle of the rand,
"""0"i""rv"nnotated
or registered
undereither

68

the Land Registrationor cadastral Acts, an enabling or master deed which shall
contain,amongothers,the following:
(a) Descriptionof the land on whichthe buildingor buildingsand improvements
are to be located;
(b) Description
of the buildingor buildings,statingthe numtlerof storeysand
basements,the numberof unitsand theiraccessories,if any;
(c) Descriptionof the commonareasand facilities;
(d) A statementof the exactnatureof the interestacquiredor 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
a statementto
commonareasis to be held by a condominium
corporation,
thiseffectshallbe included;
(e) Statementof the purposesfor which the buildingor buildingsand each of
the unitsare intendedor restrictedas to use;
(f)

A certificateof the registeredownerof the property,if he is otherthan those

executingthe masterdeed,as well as of all registeredholdersof any lien or
encumbranceon the property,that they consentto the registrationof the
deed,

(S) The followingplansshallbe appendedto the deed as integralpartsthereof.

1.

A surveyplan of the land includedin the project,unlessa surveyplan

beenfiledin saidoffice;
of the samepropertyhad previously

2.

floor plan of the buildingor buildingseach unit, its

A diagrammatic
dimensions.
relativelocationandapproximate

(h) Any reasonablerestrictionnot contrary to law, morals, or public policy

regardingthe right of any condominiumownerto alienateor disposeof his
condominium.
of an
The enablingor masterdeedmaybe amendedor revokeduponregistration
all
property
to
by
and consented
instrumentexecutedby the registeredowner of the
registeredholdersof any lienor encumbranceor landor buildingor porlion,thereof.
ownersof condominiums
owner"shallincludethe registered
Theterm"registered
provisions
of thisAct shallcontinue
the
of a revocation,
in the project.Unitregistration
to applyto suchproperty.
(Amendedby R.A.7899,as follows)

69

REPUBLIC
ACTNO.7899
AN ACT AMENDINGSECTIONFOURANDSECTIONSIXTEENOF REPUBLIC
ACT NUMBEREDFOURTHOUSANDSEVENHUNDREDTWENW.SIX,
OTHERWISE
KNOWNAS "THECONDOMINIUM
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
4. xxx
- "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-ndLand 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 conveyanceof a unit or an apartment,officeor store
or other space therein,shall includethe transferor conveyanceof the
undivided
rrcase, the membershipor shareholdingsin
lwever,Thatwere the commonareasin the
s of separateunitsas co_ovvners
thereol no

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

Filipinocitizens,exceptin casesof hereditarysuccession.\Mere

the @mmon
a.condominiumprojectare herdby a corporation,no transferor *nu"y"n"" areasrn
of a unit
shallbe validif the concomitanttransferoithe appurtenantmembership
or
stockhording
in the corporationwill causethe alien interestin'sucn corporation
to exceedthe limits
imposedby existinglaws.
sEcrloN 6. unress otherwiseexpressryprovidedin the enabring
or master
deed or the declarationof restrictions,the incidentsof a condominiumg"rant
are as
follows:
(a) The boundaryof the unit grantedare the interiorsurfaces
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
commonstructuralelementsof the buildino.tofrbir
areascommonuse;elevaforequ
reftigerationand central air cr
pumpsand other centralservicer
70

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 encompassedby the boundariesof

the unit as it exists at any particulartime and as the unit may lawfullybe
altered or reconstructedfrom time to time. Such easement shall be
automatically
terminatedin any air spaceupondestruclion
of the unitas to
renderit untenantable.
(c) Unlessotherwiseprovided,the commonareas are held in commonby the
holdersof units,in equalshareonefor eachunit.
(d) A non-exclusive
easementfor ingress,egress and supportthroughthe

common areas in appurtenantto each unit and the c,ommonareas are

subjectto sucheasements
(e) Eachcondominium
ownershallhavethe exclusiverightto paint,repaint,tile,
wax, paperor otherwiserefinishand decoratethe innersurfaceof the walls,
ceilings,floors,windowsanddoorsboundinghis ownunit.
(0

pledge
ownershallhavethe exclusiverightto mortgage,
Eachcondominium
or encumber his condominiumand to have the same appraised
owneris personalto him'
of the othercondominium
independently

ownerhas also the absoluterightto sell or disposeof

(s) Eachcondominium
that the
unlessthe masterdeed containsa requirement
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
andthereshallbe no iudicialpartitionthereof'
shallremainundivided,
sEcTloN 8. where severalpersonsown condominiumin a condominium
project,an action may be broughtby one more such personsfor partitionthereof by
iat6 of the entireproject,as if the o\ /nersof all the condominiumsin such projectwere
@-ownersof all the entire projectin the same proportionas their interestsin the
commonareas: Provided,however,That a partitionshall be made only upon a
showing:
(a) That 3 years afier damageor destructionto the projectswhich rendersa
materiaipart thereofunfit for its use priorthereto,the proiecthas not been
to its statepriorto its damageor destruction;
rebuiltor repairedsubstantialty
or
(b) That damageor destructionto the projecthas renderedone-halfor moreof
the units therein untenantableand that condominiumowners holding in
aggregatemore than 30o/ointerestin the commonareas are opposedto
repairor restorationof the projects;or
(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

restorationor modelingor modernization
of the project;or
(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 continuationof the condominiumregime
afterexpropriation
or condemnation
of a materialproportionthereof;or
(e) That the conditionsfor such partitionby sale set forth in the declarationof
restrictionsduly registeredin accordancewith the terms of this Act. have
beenmet.
sEcrloN 9. The owner of a project shail, prior to the conveyanceof any
condominium
therein,registera declaration-or
restrictions
relatingto suchproject,which
restrictionssball constitutea lien upon each condominiuminite pide&s,'ano
lnsureto and bindall condominiumownersin the projects. such liens,unlessothenrvise
"narr
provided' may be enforced by any condominium'owner in
the project or by the
management
bodyof suchproject.The Registerof Deedsshallenteiand
tn"
declarationof restrictionsupon the certificaieof tifle coveringthe land included
"nnotate
within
tj5 Proiect,if the land is patentedor registeredunderthe LandRegistrationor
Cadastral
Acts.
The decrarationof restrictionsshall provideficrthe managementof the project
by
anyone..of the fofiowingmanagementbodies: a condoriiniu,
*rporliion,
associationof the condominiumowners,a boardof govemorsetected
"n
by condominium
of'vners'.
or a managementagent erectedby the ownersor by the board named
in the
declaration. lt shail arsoprovidefor votingmajorities,quorums,notices,
.
meetingdate,
and otherrules
govemingsuch bodyor bodies.
such decrarationof restrictionsamongthe otherthings,mayarsoprovide:
(a) As to any managementbody
1. ' Fot the powerthereo( incrudingpowerto enforce
the provisionsof the
declarationsof restriciions:
2'

For maintenance_
of insuranceporiciesinsuringcondominiumowners
againstloss
fire,
casualty,iiability,workmen,scompensation
and
.by
other insurabre
risks and for bonding ot ttre meriGd'-ot .ny
managernentbody;

3.

Provisionsfor maintenance,utility, gardeningand other

services
benefting the common areas, for ihe operationof the
building,and
regar,accountingand otherprofessionar
aho technicarse.;;,

4.

For purchase of mater,als,supplies and the like needed

by the
commonareas:

5.

For paymentof taxes and specialassessmentswhich would

be a lien
upon the entire project common areas, and tor Olsctraige-oi
.or
-"r"a",any
,
encumbrancelevaedagainst
the entireprojectof the corn.on
72

6.

For reconstructionof any portion or portions of any clamageto or

destructionof the projecl;

7.

The mannerfor delegationof its powers;

8.

For entry by its officersand agents into any unit when necessaryin
connectionwith the maintenanceor constructionfor whichsuch body is
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
oowershali be bindinguponall of the condominiumownersregardless
or not'
of the restrictions
of whethertheyassumethe obligations

(b) The mannerand procedurefor amendingsuch restrictions,Provided,That

theyvote of not lessthana majorityin interestof the ownersis obtained;
(c) For independentauditof the accountsof the managementbody;
(d)Forreasonab|eassessmentstomeetauthorizedexpenditures'each
condominiumunittobeassessedseparate|yforitsshareofsuchexpenses
in proportion(unlessothelwiseprovided)to its power'sfractionalinterestin
anycommonareas;
(e)Forthesubordinationofthe|ienssecuringsuchassessmentstootherliens
eithergenerallyor specificallydescribed;
rrovidedfor in SectionI and 13 of thisAct'
lect and dissolutionof the condominium
h right to partitionor dissolutionmay be
condominiumowners to rebuild within a
o'
certainperiodor upon specifiedpercentase9f damaSel:,Ih1!:l|9]nn'
uponadecisionofanarbitrator,oruponanyotherreasonableconoltlon'
S E C T I O N ' 1 0 ' W h e n e v e r t h e c o m m o n a r e a s t n a c o n d o m i n i u m p rbody
ojectareheld
rtionshallconstitutethe management
shall be limitedto the
sucn a corporation
ershipor any other interestin real property
:he project,and to such other purposesas
of said purposes'
t to the accomplishment
provisioncontraryto or inconsistentwith I
master deed, or the declarationof restri
.
corporationregardlessof wf
.. ,r .-.L:^r- ir
condominium
rs an
it
which
of
unit
condominium
from
the
shall not be transferables6parately
in the proiectin
appurtenance.vvhena ,em-6", or i stockholder@asesto own a unit
he shall
which the condominiumcoiporationowns or holds the common areas'
corporation'
of the condominium
ceaseto Oea mbmberor stockholder
automatically

sEcTloNll'Thetermofacondominiumcorporationshallbeco-terminous
law to the
of the corporation
project,the provisions
the durationof the condominium
contrarynotwithstanding.
for
corporation
of a condominium
dissolution
sEcTloN 12. In caseof involuntary
any of the causesprovidedby law,the @mmonareasownedor held by the corporation
inifr, UVway of liquidation,bL transfenedpro-indivisoand in proportionto their interest
thereof,subjectto the superiorrights
in in" cirrpoi"tionio the membersor stockholders
ot tne coiporationcreditors. Such transferor conveyanceshall be deemedto be full
liquidationof the interestof such membersor stockholdersin the corporation After
such transfer or conveyance,the provisionsof this Act goveming undividedconprojectsshall
ownershipof, or undividedinterestin, the commonareasin condominium
fullyapply.
sEcTloN 13. Until enablingor the masterdeed of the projectin which the
condominiumcorporationowns or holdsthe commonareas is revoked,the Corporation
underRule104of the
dissolvedthroughan actionfor dissolution
shallnot be voluntarily
Rulesof courtexceptupona showing:
(a) That 3 years after damage or destructionto the project in which the
corporationowns or holdsthe commonareas,which damageor destruction
rendersa materialpart thereofunfitfor its use priorthereto,the projecthas
to its statepriorto its damageor
not beenrebuiltor repairedsubstantially
destruction;or
(b) The damageor destructionto the projecthas renderedone-halfor moreof
and that morethan 30% of the membersof
the unitsthereinuntenantable
the corporation,if non-stock,or the shareholdersrepresentingmorethan 30
% of the capitalstock entitiesto vote, if a stockcorporation,are opposedto
of the project;or
the repairor reconstruction
(c) That the project has been in existencein excess of 50 years, that it is
and that morethan 50%of the membersof the
obsoleteand uneconomical,
corporationif non-stock,or stockholdersrepresentingmorethan 50 percent
of the capitalstockentitledto vote,if a stockcorporation,are opposedto the
repairor restorationor remodelingor modernizingof the project;or
(d) That the project or material part thereof has been condemned or
expropriatedand that the projectis no longerviable or that the members
holdingin aggregatemorethan 70% interesiin the corporationif non-stock,
of the capitalstockentitled
or the stockholdersrepresentingmore than TOYo
to vote, if a stock corporation,are opposed to the continuationof the
condominiumregime after expropriationor condemnationof a material
portionthereof;or
(e) That the conditionsfor such a dissolutionset forth in the declarationof
restrictionsof the project in which the corporationowns or holds the
@mmonareas.havebeenmet.

74

SECTION14. The condominiumcorporationmay also be dissolvedby the

affirmativevote of all the stockholdersor membersthereof at a general or special
of Section62
meetingdulycalledfor the purpose:Provided,Thatall the requirements
with.
Laware complied
of the Corporation
SECTION15. Unlessotherwiseprovidedfor in the declarationof restrictions,
upon voluntary dissolutionof a condominiumcorporationin accordancewith the
shallbe deemedto holda
piovisionsof Section13 and 14 of thisAct, the corporation
to
power of attorneyfrom all the membersor stockholders sell and disposeof their
separateinteresti in the projectand liquidationof the corporationshall be effectedby a
saie of the entire projectas if the corporationowned the whole thereol subjectto the
creditors'
condominium
andof individual
rightsof the corporation
shall not, duringits existence,sell,
corporation
sEcTloN 16. A condominium
exchange,leaseor otherwisedisposeof the commonareasownedby or heldby it is in
voteof all the stockholders
by the affirmative
projectunlessauthorized
thecondominium
or memDers'
(Amendedby R'A' 7899,as follows)
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
by
exchange,leaseor otirerwisedisposeof the_commonareasowned or held
simple
of
a
vote
affirmative
ine con-Oominiumproject unless authorized by the
prior
notifications to all
lt's: Provided, that
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,
JR.
JOSEDEVENECIA,
Speakerof the Houseof
Representafives

EDGARDOJ, ANGARA
Presidentof the Senate

ThisActwhichisaconso|idationofHouseBil|No.12384andsenateBi||
No.2042wasfina|typassedbytheHouseofRepresentativesandthesenateon
February15,1995'

CAMILOL. SABIO
SecretaryGeneral
Houseof RePresentatives

EDGARDOE. TUMANGAN
Secretaryof the Senate
Approved:FEB.23,1995

FIDELV. RAMOS
Presidentof the PhiliPPines
75

SECTION 17. Any provisions of the Corporation Law to the contrary

notwithstanding,the byJaws of a condominiumcorporation shall provide that a
stockholdersor member shall not be entitled to demand payment of his shares or
interestin thosecaseswheresuch right is grantedunderthe CorporationLaw unlesshe
consents to sell his separate interest in the project to the corporationor to any
purchaserof the corporation'schoice who shall also buy from the cor@rationthe
dissentingmemberor stockholder'sinterest. In cases or disagreementas to price,the
procedureset forth in the appropriateprovisionof the CorporationLaw for vaiuationof
sharesshallbe allowed.The corporation
shallhave2 yearswithinwhichto payfor the
shares or furnish a purchaserof its choice from the time of award. All exoenses
incurredin the liquidationof the interestof the dissentingmemberor stockholdershall
be bome by him.
sEcrloN 18. upon registration
of an instrument
conveyinga condominium,
the
Registerof Deeds shall, upon payment of the proper fees, ent,erand annotatethe
conveyanceon the certifcale of title coveringthe land includedwithin the projectand
the transfereeshall be entifledcoveringthe land includedwithin the projJct and the
transfereeshall be entiiledto the issuanceof a,,condominium
owneris,,:'copy
of the
pertinentportionof such certificateof tiile. said ,,condominium
owner,s"copy need not
rgproducethe o\ /nershipstatus or other condominiumsin the projec{. A'copy
of rhe
description
of land,a briefdescriptionof condominium
conveyed,nameand'personal
circumstancesof the condominiumowner would be sufficiint for purposes
of the
"condominium
owner's"copyof the certificate
of tifle. No crnveyancebf condominiums
conveyancethereoffrom the owner of the
)anied by a certificateof the rnanagement
is in accordancewith the provisionsof the

returna copy of the deed of conveyanceto I

and stampedby the Registerof Deedsin the same manneras in
the case of registration
of conveyanceor real properlyundersaid laws.
sEcilON 19. where the enabringor master cteed provides
that the rancr
includedwithina condominium
projectare to be ownedin commonby the condominium
ownersthereinthe Registration Deedsmay,at the request
of ail the condominium
-".n""r
owners and upon surender of-of
aI their "condominiumowner,s -pi"a,
.r"
certiftcatesof tilleof the propertyand issuea new one in the name
of saidcondominium
ownersas pro-indivisoco-ownersthereoi
sEcroN 20. An assessment
uponany condominium
madein accrrdancewith
a duly registereddeclarationof restrictionssnaitbe an obligation
of the ownerthereofat
the timethe assessment
is made. The amountof any suchassessment
prusany other
chafges thereon,such as interesJ,gosts (incrudingattorney,sfees)
are penartres,as
suchmay be providedfor in the decraration
of restiictions,
shailbe and
upon causesa not,ceof assessmentto be registeredwith the negistei becomea rien
city or provincewheresuch.condominiumproy6ctis rocated. The noticeot o;o ot tn"
shail state the
amountof suchassessment
and suchotherihargesrhereon; ;rt;;;;i'rro'rizeo oy
the declarationof restrictions,
a descriptionof cdndominium
unit ajainsi*ni"n
""r"
76

has beenassessed,and the nameof the registeredownerthereof. Suchnoticeshallbe

signed by an authorizedrepresentativeof the managementbody or as othenrvise
providedin the declarationof restrictions. Upon payment of said assessmentand
chargesof othersatisfactionthereof,the managementbodyshallcauseto be registered
a releaseof the lien.
Such lien shall be superior to all other liens registeredsubsequentto the
registrationof said noticeof assessmentexceptreal propertytax liens and exceptthat
thereofto any other
may providefor the subordination
the declarationof restrictions
liensandencumbrances.
Such liens may be enforcedin the same manner providedfor by law for the
judicial or extra-judicialforeclosureof mortgagesor real property. Unless otherwise
the managementbody shall have
orovidedfor in the declarationof the restrictions,
powerto bid at foreclosuresale. The condominiumownershall have the same right of
foreclosureof mortgages.
redemptionas in casesof judicialor extra-judicial
SECTION21. No laborperformedor servicesor materialsfurnishedwithoutthe
consentof or at the requestof a condominiumowner or his agent or his @ntractoror
sub-contractor,shall be the basis of a lien against the condominiumof any other
owner,unlesssuchotherownerhasexpresslyconsentedto or requested
condominium
the performanceOfsuch laboror furnishingof such materialsor seryices. Suchexpress
in the
consentshallbe deemedto have beengivenby the ownerof any condominium
unit. Laborperformedor servicesor
case of emergencyrepairsof his condominium
materialsfurnisnedfor the commonareas,if duly authorizedby the managementbody
providedfor in a declarationof restrictionsgoverningthe property,shall be deemedto
be performedor furnishedwith the expressconsentof eaChcondominiumowner' The
froma lienagainsttwo of the
mayremovehis condominium
ownerof any condominium
to his
lien of the iractionof the totai sum securedby such lien which is attributable
unit.
condominium
SECTION22. Unlessotherwiseprovidedfor by the declarationof restrictions,
body,providedfor herein,mayacquireand ho|d,for the benefitof the
the management
condominiumowners,tangiblepersonalpropertyand may disposeof the same by sale
orotherwise;andthebene,ficialinterestinsuchpersona|propertysha||beownedbythe
interestsin the common
as theirrespective
ownersin the sameproportion
condominium
ownershipof the
transferee
areas. A transferof a condominiumshall transferto the
transferor'sbeneficialinte!'estin such personalproperty'
SECTION23. Where,in an actionf<
the ground that the project or a materi
expropriated,the 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
corpensation, if any, that a condominiumowner may be entitledto dle deprivationof
t i" dropert'. Uponieceiptof a copyof the decree,the Registrationof Deedsshallenter
of title.
andannotatethe sameon the pertinentcertification
sEcTloN 24. Anydeed,declarationor plan for a condominiumprojeclshall be
liberatlyconstruedto facilitatethe operationof the project,and its provisionsshall be
presumedto be independent
and severable.

SECTION25. Wheneverreal propertyhas been dividedinto condominiums,

eachcondominium
separately
ownedshallbe separately
assessed,for purposesof real
propertytaxationand othertax purposes,to the ownersthereofand tax on eachsuch
condominium
shallconstitute
a liensolelythereon.
SECTION26' All acts or partsof Acts in conflictor inconsistentwith this Act are
herebyamendedinsofaras condominiumsand its incidentsare con@rned.
SECTION27. ThisAct shailtakeeffectuponits approval.
Approved,
June18,1966
J . D .O P t N t o NN O .1 8 0
Seriesof 1973
RE FOREIGN
INVESTMENT
IN LANDAND/ORBUILDINGS
D e c . 2 11, 9 7 3
The ActingSecretaryof Trade
QuezonCity
Sir:
This is with referenceto your reguestfor opinionon the forowing
quesrons
regarding
foreignInvestment
in landsand/orbuildings:
'-1
can foreigninvestorsor multinationar
corporations
.
own buirdingor units
thereof(as in condominium)?
Apartments?
"2. can therebe jointrcwnership
at 60 percent- 40 percentof randand buirding
betweenforeigninvestorsand theirFilipinocounieioarts?,,

Regardingthe ownership of condominiumunits

by foreign investors or
multinatronal
corporation,
as reasbnedout in opinion.No_
175,cunentseries,supra,the
same mav be atowed but subjecrto rhe qualifications
mentioneJ';il; jtviso ot
Section5 of R.A.No.4726whichneeds.
"
Provided,however,That where the commonareas in
the condominium
project are owned by the owners of se

)n, no transferor conveyance

of a unitshall
rppurtenant
membership
or stockholding
in
t ansuch corporationto exceedthe limits
78

As to the ownershipby foreign investorsor multinationalcorporationsof

Act (R.A.No' 4726)
whichdo notfallwithinthe purviewof the Condominium
aoartments
prohibits
aliensor foreign
sufficeit to state that I am not aware of any law which
from owningapartmentbuildings,so long,of course,as they will merely
corporations
for a periodnot exceedingten
leasethe landon whichthe buildingwill be constructed,
years.
Anent your secondquery,the followingprovisionsof ArticleXIV of the new
Constitution
are pertinent.
"section 9. The disposition,exploration,development,exploitation.of utilization
of any of the naturalresourcesof the Philippinesshall be limitedto citizensof the
at leastsixtyper centumof the capitalof
or associations
or to corporations
Philipbines,
whichis ownedby suchcitizens,x x x
or associationmay hold alienable
"section10 x x x No privatecorporations
lands of thi: public domain except by lease not to exceed one thousandhectaresin
area;nor mayanycitizenholclsuchlandsby leasein excessof fivehundredhectaresor
acquirebypurchaseorhomesteadinexcessoftwenty.fourhectaresxxx.
sEcT|oN14'saveincasesofhereditarySuccession,noprivate|andshallbe
qualifiedto
or associations
corporations
or conveyeoexceptto individuals,
transferred
acquireor holdlandsof thepublicdomain"

Uponthebasisoftheseprovisions,thefol|owingconc|usionsmaybemadeyour
seconoquery:
may acquireboth private
as individuals'
1. Onlycitizensof the Philippines,
joint ownershipof
landsand landsof the publicdomain. Therefore,therecan be no
are individuals
suchlandsbetweenFilipinosandforeigninvestors
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
fthecapita|
may own
and the remainderby foreigners,
stockoi whichis ownedby Filipinos,
lands.
3.corporat|onsorassociations--whetherofcitizensorofcitizensandaliens- maynotown,but mayonlyholdby leaselandsof publicdomatn
4 ' A s t o t h e . , j o i n l o w n e r s h i p a t 6 0 p e r c e n t - 4 0 p e r c e n t o f l a n - d s a n dof
bui|dings
ownership
foreigninvestorsano Fitipinoi,inl r"v be iegallyfeasibteas longas the
is UycorpoiatLnsorLssociJtionsat least60% of the capitalstockof
the land building
-by
*ni"n i. owned Filipinocitizensand onlythe remainderby the foreigninvestors.
Please be guided accordingly

Verytrulyyours,

(SGD) VTCENTE
ABADSANTOS
Secretaryof Justice
(J

J . D .O P | N | O N O .1 7 s
Seriesof 1973
RE FOREIGN
INVESTMENT
IN CONDOMINIUMS
IN THEPHILIPPINES
Dec.12, 1973
The Secretaryof Tourism
Manila
Sir:
This has referenceto your request for opinion on the folowing questaons
regarding
foreigninvestment
in condominium
in the philippines.
a) May 1000/oowned and controlled foreign firms set up
condominiums
corporationsunderRA 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
renewabrefor
anotherper'odof fifty (SO)years,be legallytenaOteZ

I sharethis raterview of my predecessorin office

and r herebyadoptthe same.
You also profound,on the case when
corporation
whichownsthe landon whichtf
whetherinterestsin unitsin the condominiun
commonareasthereofmay be transfuredto
80

The condominlumAc{ does not forbidthe transferto aliensof an interestin a unit

and the undividedinterestin commonareas in a condominium.tt shouldbe notedthat
only a "separateinterest'in a unit and an undividedinterestin the commonareas are
what are transferredas a matterof a courseto the granteeby virtue of condominium
grant. (Sec.2 and 5.) Moreover,paragraph(b) of section3 defines'unitfor purposes
of the Act as "a part of condominiumprojectintendedfor any type of independentuse
frorownership,"and paragraph(e) of the samesectionin definingthe term 'to dividereal
property"in the condominiumprojectspeaksof dividingthe ownershipthereofor other
interesttherein.'
But in this connectionit should be stressedthat section5 of the Act containsa
pertinentprohibition.Saidsectionreads:
'Any transferor conveyanceof a unit, or an apartmentoffice or store or other
spacetherein,shallincludethe transferor conveyance
of the undividedinterestsin the
common areas or, in a proper case, the membershipor shareholdingsin the
condominiumcorporation; Provided, however,that there were the commonareas in
the condominiumprojec{are owned by the owners of separateunits as @-owners
thereof,no condominiumunit thereinshall be conveyedor transferredto personsother
at leasesixtypercentof the capitalstockwhich
then Filipinocitizens,or corporations
belong to Filipino citizens, except in cases of hereditarysuccession. Where the
@mmon areas in a condominiumproject are held by a corporation,no transfer or
conveyance
ce of a unit shall be valid if the concomitanttransfer of the appurtenant
in the corporation
will be causethe alien interestin such
membership
or stockholding
corporationto exceedthe limitsimposedby existinglaws.'
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
condominiummay be transferredto aliensor to corporationmore than 40% of the
capitalstockof which is owned by aliens;and shouldit be case coveredby the second
sentence,the transferto aliensof units in the projectmay be madeonly up to the point
where the concomitanttransferfor membershipor stockholdingin the @ndominium
corporationwould not cause the alien interest in such corporationto exceed 40% of its
entirecapitalstock.
In resume and by way of emphasis,my conclusionson your queries are as
iollows:
1. Any corporationwhich is owned 100%by a foreignfirm may establisha
projecton land
underR.A.4726and set up a condominium
"condominium
corporation"
leasedfor a periodnot to exceed10 years.
2. Vvherethe condominiumcorporationis a Filipinocorporationwhichownsthe
projectis situated,R.A. 4726allowsthe transferto an
landon whichthe condominium
'unit"
interest"in
and of an "undivided
in a
in the saidcondominium,
alienof an "interest"
the commonareas thereof, subject to the qualificationsmentionedin the proviso of
section 5 of said Act.
Verytrulyyours,
(SGD) VICENTEABADSANTOS
Secretaryof Justice
81

ANNEXG
PROPER
COMMISSION
NO. R.53
RESOLUTION
Seriesof 1982
NO.45,S. 1982,OF THE
RESOLUTION
RATIFYING
EXECUTIVECOMMITTEE,APPROVINGTHE GRANTOF
OF
VARIANCERELATIVETO THEIMPLEMENTATION
FOR
AND REQUIREMENTS
THE DESIGNSTANDARDS
AND
BY
HSRC
SUBDIVISION/CONDOMINIUM
RESIDENTIAL
CASESFORTHEGRANTOF THESAME
OEFINING
No. 45, Seriesof 1982,of
as it is herebyresolvedthat Resolution
RESOLVED,
the ExecutiveCommitteeof this Commission,approvingthe grant of varianceto
for residential
deviationsfrom the Design Standardsand Guidelines/Requirements
in casesenumerated
and definedin Annex"A' hereto
subdivisions
and condominiums
't4
of the HSRC Revised Rules and Regulations
attached, pursuant to Section
Presidential
DecreeNo. 957, be ratifiedand adopted,as it is hereby
lmplementing
ratifiedand adooted.
APPROVED,
this 16April 1982at Makati,MetroManila.

C, MENDIOLA
SGD. ERNESTO
Commissioner
andChief
ExecutiveOfficer

SGD.JESUSN. BORROMEO
Commissioner

CESARO. MAROUEZ
Commissioner

SGD-ABERP. CANI.AS
Commissioner

SGD.ARTUROC.CORONA
Commissioner

SGD.RAMONB. CARDENAS
Commissioner

SGD.RAYMUNDO
R. DIZON.JR,
Commissioner

P, SOCRATES
SALVADOR
Commissioner

ATTESTED:
SGD.EUFEMIOP. DACANAY
CommissionSecretary

82

ANNEX"A''
VARIANCES
Basis

Section14 of the HSRCRevisedRulesand Regulations

PD 957 providesfor variances.
lmplementing

Concept

Design Standards and Requirementsfor residential

may be modified by the
subdivision/condominium
Commission in cases as hereby explained and
implementedby the Human SettlementsRegulatory
Commission.

Features

Variances
Variancesmay be allowed only under the following
conditions:
a. in cases of large scale governmentresidential
subdivisionor condominiumprolects,such as New
Town, PlannedUnit Developmentand the Bagong
LipunanSitesandServicesProgram;
b. in casesof housingin areasfor prioritydevelopment
or urbanland reformzones,includingblightedareas
and otheridentifiedprojectsunderthe UrbanReform
Program;
projectsas
and rehabilitation
c. in casesof resettlement
or
programmed
by the Ministryof HumanSettlements
anyof its attachedagencies;
d. in cases of social housingprojectsorientedtowards
lowincomegroupas definedby the Ministryof Human
Settlements;
hereofwill cause
e. or, in caseswherestrictobservance
or condominium
extremehardshipto the subdivision
to the
hardship
extreme
Such
owner/developer.
subdivision or condominiumowner/developeris
as follows:
definedandexPlained
1. The locationis unique and differentfrom the
adjacentlocality,and becauseof its uniqueness'
the ownerscan not obtain a reasonablereturnon
proiects;
the residentialsubdivision/condominium
2. The hardshipis notself-created;

83

The proposed variance is due to existing

permanent structures (concrete/steel)and are
necessary to permit a reasonable use of the
residentialsubdivision/condominium;
4 . The variancewill not alter the essentialcharacter
for
subdivision
of the locationwherethe residential
whichthe varianceis sought,is located,and will
not substantiallyor permanentlyconflictthe use of
in the
other residentialsubdivision/condominium
same locality;particularlythose within one (1)
kilometerradiusthereof;
5. The variance will not give rise to unauthorized
reclassification of the approved residential
plan (i.e.whetherpartial
subdivision/condominium
or full alterationof the plan),and will not adversely
affect the publichealth,safetyor generalwelfare,
and is in keepingwith the generalwelfareof the
community.

84

Rc$$lic of ih! Phill0r'in6

Of{iccof thc President

Housing and Urban Development Coondinating Council

HOUSINGANDLAND USEREGULATORYBOARI)
RESOLUTTON
19. 72s
Serieg of 2002
AMENDINGTHE REVISEDIMPLEMENTING
RULES
DECREENO.957AND
AND REGULATIONS
FORPRESIDENTIAL
BATASPAMBANSANO,220
WHEREAS,the HLURB Board approvedthe revisedlmplementingRules (lRRs)
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
harmonize.housing policies, rules and standards in support of recent policy
pronouncements
of the administration;
WHEREAS,pursuantto existinglaws, particularlyPD 1308, otherwiseknownas
PlanningProfessionin the
the Law Regulatingthe Practiceof Environmental
promulgated
by the Professional
Regulations
the
Rules
and
Philippines,and
practioe
of environmential
RegulationsCommissionpursuanttherel+ the scope of
planningincludes,among othersthe preparationof conceptualschemesand site
developmentplans for subdivisionproiectsfor residentialand other urban uses;
and the signatureof licensedenvironmentalplannersis requiredto be affixedon
saidplans;
this Board fully supportsthe iminediateimplementationof Executive
!,UHEREAS,
Order No. 45, prescribing time periods for issuance of housing related
certifications,clearances and permits and imposing sanctions for failure to
observethe same;
WHEREAS, various groups of real estate developers have brought to - the
attentionof HUDCC and this Board issues relativeto the implementationof 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.

e4'n
HLURB Bldg.,KalayaanAvenuecomerMayamanStreet,Diliman,QuezonCity

i
i

(Page
2 of BoardRrr. No.725, s of2oo2)
rules
1. That,the price ceiling provisionin the revisedimplementing
(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
registrationas dealer;
3. That, the allocation of area requirement for parks and
playgroundand community facilities prescribedfor economic
housing be amendedto readas follows:
Rulell, Section5.C.1.b.1
b.1 Allocationof Area for Parksand Playgrounds
XXX

able 1: Parksand

Allocation

E C O N O M I CH O U S I N G

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

HOUSING
SOCIALIZED
Oensity
Allocation
(No.of lots/OU'
(% of grossarea
per hectare)
for PP..)
150andbelow
3.5 Vo
151 160
4Yo
1 6 1- 1 7 5
5%
1 7 6- 2 0 0
6 0/.
201 - 225
7%
Above225
9V.

Rulell, Section5.C.1.b.2
b.2 Area Allocatedfor CommunityFacilities
XXX

Table 3: Comm

Facilities
Allocation

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

SOCIALIZED
HOUSING
Density
Allocation
(No.of lots/Du.
(% of grossarea
for CF..)
oer hectare)
'l
50 and below
1,O
151- 225
A6oue225
2.O

W,,,r

(Pageg of BoardRes.No. 725, s.of2oo2)

4 . That, provisionrequiringplanting of trees in areasdesignatedas

plantingstriP be deleted,
5 . That,the two (2) year vatidity of developmentpermit prescribed
in the revisedlRRsbe increasedto three (3) years;
6.

of the revigedrulesand regulations;

7.

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

1988;

10.That,all provisionsin the revisedlRRs for both PD 957 and BP

220 affected and/or in conflicuinconsistentwith the above
cited amendmentsbe revisedand/orrenumberedaccordingly.
APPROVED
16;s 19'tl6syof June2002,QuezonCity

T. DEFENSOR
'I/IIGHAEZ

icioCommissioner

ROMU
and
Commissioner
ChiefExecutiveOfficer

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

EDUARDO
R.SOLIMAN.
JR.
Undersecretary,
DILG
Ex-Offi
cioCommissioner

B. SANTOS
Ex-Offi
cio Commissioner

DPWH
Ex-Officio
Commissioner

Commissioner

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