LAND

PREPARATION

SUBDIVISION &
CONDOMINIUM
DEVELOPMENT
Prepared by:
Dennis B. Hisu-an
Leah P. Jamerlan
 LAND MATTERS
Land matter is the step in preparing
the land for subdivision or condominium
development in which consists of Land
acquisition, location, feasibility study,
conversion and reclassification of land or
property.
 ECONOMIC FEASIBILITY
• The first step of raw land investing is to
determine its economic feasibility. Like any real
estate investment, it’s critical to determine your
desired return on the property before getting started.
• This is important because it will lessen the market’s
uncertainty and provide a model of your
investment’s costs versus profit aspect.
• Although the numbers will be an estimate,
understanding your project’s feasibility, including
the estimated costs, revenue, and overall return, will
help investors succeed.
 DUE DILIGENCE
 Due diligence
 means investigating facts about the physical and
financial condition of the property and the area
the property is located in.
 Where it also investigates the factors that
would/may affect the condition of the property
such as; Area and neighborhood analysis, Pro
Forma financial statement, Review of financing
options, and physical inspection.
 LAND ACQUISITION
LAND PROSPECTING
– where the Developer will look
for land that fits the criteria of a
project that includes the location
of the land, physical suitability
and accessibility.
- First step of raw land investing
is to determine its economic
feasibility
 SITE CRITERIA
Conformity to Comprehensive Land Use
Plan/Zoning Ordinance/National Building Code
1. Residential condominium projects shall
preferably be located in areas zoned as or
appropriate for residential uses.
2. Condominium projects shall likewise
conform to the minimum building requirements,
lot occupancy, open spaces, parking and other
requirements of the National Building Code of
the Philippines and its Implementing Rules and
Regulations.
 LOCATION
 Conformity with Zoning Ordinance /
Comprehensive Land Use Plan.
 Subdivision projects shall be located in
residential zones or other areas appropriate
for residential uses. If there is no Zoning
Ordinance or approved Comprehensive
Land Use Plan, the dominant land use
principle and site suitability factors cited
herein shall be used in determining
suitability of a project.
 Subdivision projects supportive of other
major urban activities (e.g. housing for
industrial workers) may be allowed in area
zoned for the said urban activities.
 PHYSICAL SUITABILITY
o Subdivision projects shall be located
within suitable sites for housing and
outside hazard prone areas and
protection areas as provided for by
pertinent laws.
o Critical areas (e.g. areas subject to
flooding, landslides and those with
unstable soil) must be avoided.
o The site shall be stable enough to
accommodate foundation load without
excessive earthmoving, grading or
cutting and filling
 LAND CONVERSION

If the Property is classified as

AGRICULTURAL, the developer may
check with the LGU through the Municipal
Planning Development Office (MPDO), and
get a zoning certificate.
 LAND CONVERSION
ZONING
 - Raw land investing deals primarily with the design of the land. In
essence, this pertains to what type of property should be constructed
on the parcel, including looking into local zoning codes.
 Depending on the type of property you’re looking to construct, or
how you intend to present the property to buyers, zoning will play
an important role in how you proceed. Zoning codes will essentially
determine what types of properties—whether single-family,
multifamily, condominium, or commercial—can be built on the lot.
 As an investor, this could ultimately hinder your investment
approach. When getting started in raw land investing, it’s vitally
important to understand the area’s zoning laws.
 LAND CONVERSION
If the Property is classified as
RESIDENTIAL, the developer may check
with the HLURB Regional Office if the
LGU zoning is approved wherein the
developer can proceed to get DAR
exemption.
If NO, then the developer will have to get
DAR conversion.
 RECLASSIFICATION
If the Property is converted the developer will
file an application letter to the Sangguniang Bayan of
the LGU where the property is located for
reclassification, with a completed documents such
as:
1. Zoning Certification from HLURB Regional
director
2. NIA Certification
3. DA Certification
4. Barangay Permit, and
5. Sangguniang Barangay Resolution
 ACCESSIBILITY
 The site must be served by a road that is readily
accessible to public transportation lines.
 Said access road shall conform with the standards
set herein to accommodate expected demand
caused by the development of the area.
 In no case shall a subdivision project be approved
without the necessary access road/right-of-way.
 Said access road right-of-way may be constructed
either by the developer or the local government
unit.
 PLANNING STAGE
 In planning stage, the developer will
prepare the subdivision plan, which involves
geological studies, Topographic Surveys and
Land development Plan, roads and other
infrastructures, electrical, drainage, water
system and other civil works.
 And also involves building plan, program of
development, marketing study, bill of
materials, cost estimates and financial
projections.
 PLANNING STAGE
1.Area Planning
Planning and designing of subdivision projects shall take into account the
following:

a. safety and general welfare of the future occupants:

b. adequate, safe, efficient and integrative road circulation system
servicing every lot therein;
c. judicious allocation of land uses for diversity and amenity;
d. preservation of site
e. proper siting or orientation of lots;
f. harmony with existing and proposed development in the vicinity;
g. Application of workable design principles or parameters for a well
planned and self-sustaining environment.

When a developer or planner submits a Planned Unit Development (PUD) type of

project, the layout shall likewise conform to the standards for
residential/condominium projects.
 PLANNING STAGE
 Open spaces - Open spaces shall conform to the provisions of
P.D. 1216 and its implementing rules and shall include the
following such as streets, walks, and parks and playgrounds
 Facilities and Amenities - Areas required for subdivision
facilities and amenities shall be judiciously allocated in
accordance with the provisions herein specified.
 Density

-Density of subdivision projects shall conform with the

residential densities set forth in the ZO of the city/municipality
where project is located. Where there is a mixture of housing types
within the subdivision (such as single-detached, row house, town
houses, etc.), density shall include the total number of dwelling units
in multi-storey structure plus the total number of lots intended for
single and semi-detached houses.
 PLANNING STAGE
2. Site Preservation

 Slope - The finished grade shall have a desired slope to

allow rain water to be channeled into street drains. Where
cut and fill is necessary, an appropriate grade shall be
attained to prevent any depression in the area. Grading
and ditching shall be executed in a manner that will
prevent erosion or flooding of adjoining properties.
 PLANNING STAGE
 Preservation of Site Assets - Suitable trees with a caliper
diameter of 200 millimetres or more, shrubs and desirable
ground cover per Department of Environment and Natural
Resources (DENR) rules shall be preserved. Where a good
quality top soil exists in the site, it shall be banked and
shall be preserved for finishing grades of yards,
playgrounds, parks and garden area.
 Ground Cover - Grass, shrubs, plants and other
landscaping materials used for ground cover shall be of a
variety appropriate for its intended use and location. They
shall be planted so as to allow well-tended cover of the
area.
 PLANNING STAGE
3. Easements
Subdivision projects shall observe and conform to the
following provisions on easements as may be required by:
a. Chapter IV, Section 51 of The Water Code, on water bodies;
b. National Power Corporation (NPC), on transmission lines;
c. PHIVOLCS per Resolution No. 515, Series of 1992, on
identified fault traces;
d. Other public utility companies and other entities' right-of-
way;
e. National/local government units for projects abutting national
roads (primary roads) where adequate easement shall be
provided for, including loading and unloading areas;
f. Other related laws.
 PLANNING STAGE
4. Design Parameters
 Land Allocation - For open market and medium cost

subdivision projects with an area of one (1) hectare or

more, the percentage (%) allocation of land shall be as
follows:
a. saleable area — maximum of 70% of the gross area
b. non-saleable area — minimum of 30% of the gross
area

The following non-saleable area shall be observed

consistent with PD No. 1216:
 PLANNING STAGE
Drainage System - The drainage system of the subdivision
shall conform to the natural drainage pattern of the subdivision
site, and shall drain into appropriate water bodies or public
drainage system. In no case shall drainage outfalls drain into a
private lot. Its layout shall conform to sound engineering
design/ principles certified by a duly licensed civil/sanitary
engineer.
Drain lines shall be of durable materials and approved
installation practices. For both open market and medium cost
subdivision projects, underground drainage system shall be
properly engineered and environmentally sound and shall be
provided with adequate Reinforced Concrete Pipes (RCP), catch
basins manholes, inlets and cross drain for efficient
maintenance. Minimum drainage pipes diameter shall be 30
centimeters.
 PLANNING STAGE
Electrical power supply Mandatory individual household
connection to primary and/or alternate sources of power.
Installation practices, materials and fixtures used shall be
in accordance with the provisions of the Philippine
Electrical Code and/or local utility company. Provision of
street lighting per pole is mandatory at 50-meter distance
and every other pole if distance is less than 50 meters.
Electrical bills for streetlights shall be
proportionately shouldered by the users thereof prior to
issuance of Certificate of Completion (COG) and turn-
over of open space to LGU.
 LICENSES AND PERMITS
The developer will file for various licenses and
permits such as Barangay Clearance, Locational Clearance,
Environmental Certificate Compliance (ECC) or Certificate
of None Coverage (CNC).
For the application of development permit the
developer has to file with the Sanguniang Bayan o f the
LGU through the City Planning Development Office
(CPDO) or the Municipal Planning Development Office
(MPDO) for deliberation and hearings.
After the license and permits are secure the
developer can proceed to earth works and development
such as installation of drainage, water lines and roads
 LICENSES AND PERMITS
With the development permit, the developer can start
with the subdivision of the property by preparing Survey
Returns, Lot Data Computations, and technical descriptions
for approval by the DENR Land Management Bureau. After
the VSR (Verified Survey Return) is completed, the
developer can now apply for the subdivision of his title into
smaller subdivision.
Also, with the VSR application, the developer will
apply for the project’s Certification of Registration and
License to Sell (CR/LS) in order to sell its inventory and
get its project accredited with the HMDF.
 LICENSES AND PERMITS
For the HLURB to give the project a license to sell,
the developer will have to present the following:
 Proof of Socialized Housing Compliance, as well as

other Required Documents along with the fact sheet.

 Proof of 10% compliance of actual development
 Secure a HLURB Notice to Publish
 Publish information on the Proposed Project
 Post Performance Bond corresponding to 10% of the

remaining project cost (if BP220), and 20% (if PD957).

 MARKETING AND SALES
The final step to the land development process is
marketing. This is where stage one is of critical importance.
Researching the neighborhood, the market price, and
demand for rentals will pay off when determining your
marketing strategy. Investors should also have a marketing
plan in place to attract buyers to the property. This may
include working with a realtor, online listings, the MLS,
advertising in newspapers, and even social media.
 HOUSING PRODUCTION
Concurrently, the developer will start building the
buyer’s house. The developer first has to secure the a
building permit and locational clearance for every unit.
Upon the completion o of the house and documents of the
buyer, the developer will submit the documents to HDMF
for approval.
Then, the developer has to get the Notice of
Approval and Deed of Assignment from HDMF and have it
annotated at the back of the title at the registry of deeds, and
also get the certified true copy of title to HDMF as proof of
completion of the annotation.
 REFERENCE
 Revised Implementing Rules and Regulations
for PD 957 (HLURB – 2009)
 https://www.fortunebuilders.com/raw-land-inv
esting/?
fbclid=IwAR2Ljh0YBa_WhKh4FakLMHf_m
SldDSfXn2BodhBrFa9H8S0TiqprFYPE3tg
 https://
www.youtube.com/watch?v=GsiFKXRgtjM
(a SHDA Presentation)
THANK YOU.