HOUSING AND LAND USE REGULATORY BOARDPhilippine Real Estate Law

For Inquiries pls.contact property consultant:Ms. Mary Jean Saile

Lic.#2008-S-8-1322(N)Mobile#: +639297163343

E-mail: mjsaile@yahoo.comWebsite: www.realtorsaile.bahay.ph

LAWS THAT GOVERNS SUBDIVISION

1. E.O. 648, Series of 1981:Vests the HLURB with quasi-judicial powers to make it an effective regulatory body which will enforce various mandates, among the more important ones being: PD 957 (1976), PD 1216 (1976) and PD 1517 (1976).

2. P.D. 957: Subdivision and Condominium Buyers Protective DecreeRegulates the sale of subdivision lots and condominium units to buyers.

3. PD 1517: Protection of Legitimate Tenants and Clearance for Development Proposals and Land Transactions in Proclaimed Areas for Priority Development (APD) and Urban Land Reform Zones (ULPZ).

Who are the legitimate tenants under ULRZ and thus have the right of first refusal in the sale of the property they are currently occupying?- Ten years residency or more- Built their homes on the land- Residents who have legally occupied the lands by contract continuously for the last ten years- Residential use

4. BP 220: Authorizes the HLURB to promulgate standards for the Economic & Socialized Housing

Program.

5. PD 1216: Defines open space in residential subdivisions in compliance with the requirements of PD 957 for owners/developers to allocate 30% of the gross area for road, alleys, sidewalks, parks and recreational spaces.

6. RA 7160: The Local Government Code of

1991

Devolves the issuance of approval of subdivision plans to local government units (LGUs); devolves to the LGUs implementation of national rules and standards; exercise of such power shall be in accordance with the IRS of PD 957 & other related laws

7. RA 7279 (1992): The Urban Development and Housing Act (UDHA)

Provides for a Balanced Housing Program by requiring owners and developers of main subdivision projects to provide for a separate socialized housing project for the underprivileged and homeless, equivalent to 20% of the area or cost of the main subdivision project.

Exempt from this 20% socialized housing provision are all residential:- Socialized housing projects themselves- With a density of 100 units or more per hectare of land- With four (4) units or less

8. RA 6552: The Realty Installment Buyer Protection Act (The Maceda Law)

Enumerates the rights of a buyer of real estate who has paid least two years of installments, in case of default on succeeding installments.

1. To pay the unpaid installments due without additional interest within one (1) month for every year of installment payments made which shall be exercised by the buyer once in every 5 years of the life of contract

1. If the contract is cancelled, (actual cancellation shall be 30 days after receipt), the buyer shall be refunded 50% of the total payments made.

After 5 years of installment, an addt'l. 5% but not > 90% every year of the total payments made.

1. Right to sell buyer's rights or assign his rights to another person, orreinstate the contract by updating the account during the grace period & before the actual cancellation of contract.

1. To pay in advance any installment or the full unpaid balance of the purchase price anytime without interest & to have such full payment annotated in the title

9. EO No. 71 (1993): Defines the powers of LGUs regarding the devolution of HLURBs function in approving subdivision plans. The HLURB will provide the guidelines and standards.

1. Approves preliminary as well as final subdivision and development plans of all subdivisions in accordance with PD 957;

1. Approves preliminary and final subdivision and development plans of all economic and socialized housing projects;

1. Evaluates and resolves opposition against issuance of development permits for any of the said projects;

1. Monitor the nature and progress of land development w/o prejudice to the overall monitoring, enforcement & visitorial powers of HLURB

9. EO NO. 72 (1993): (PREPARATION & IMPLEMENTATION OF CLUP OF LGU)

- Devolves to the Sangguniang Panlalawigan the approval of comprehensive land use plans, subject to national standards and guidelines.

- Devolves the issuance of locational clearance to projects of local significance provided that its comprehensive land use plan was previously approved by the HLURB

- HLURB shall review and approve the land use plans of provinces, highly urbanized cities, independent component cities and cities/municipalities within Metro Manila.

Batas Pambansa Bilang 220 (BP 220) –

Economic and Socialized Housing: A type of housing project provided to moderately low income families with lower interest rates and longer amortization periods.

REPUBLIC ACT NO. 7279

An act to provide for a Comprehensive and Continuing Urban Development and Housing Program, Establish the Mechanism for its Implementation, and for Other Purposes.

Sec. 18. Balanced Housing Development. — The Program shall include a system to be specified in the Framework plan whereby developers of proposed subdivision projects shall be required to develop an area for socialized housing equivalent to at least twenty percent (20%) of the total subdivision area or total subdivision project cost, at the option of the developer, within the same city or municipality, whenever feasible, and in accordance with the standards set by the Housing and Land Use Regulatory Board and other existing laws. The balanced housing development as herein required may also be complied with by the developers concerned in any of the following manner:

(a) Development of new settlement;(b) Slum upgrading or renewal of areas for priority development either through zonal improvement programs or slum improvement and resettlement programs; (c) Joint-venture projects with either the local government units or any of the housing agencies; or (d) Participation in the community mortgage program.

Locating the twenty percent (20%) socialized housing project in the same city or municipality as the main project shall be deemed not feasible if the developer can prove that one of the following factors can not be meet, and, therefore, may be located in any city or municipality within the same region or in any city or municipality within the region adjacent to it.

R.A. 7279 – Urban Development and Housing Act (UDHA)

Socialized Housing - Refers to housing programs and projects covering houses and lots or homelots only undertaken by the government or private sector for the under privileged and homeless citizens which shall include sites and services development, long term financing, liberalized terms of interest payments, and such other benefits in accordance with the provisions or RA 7279.

PRESIDENTIAL DECREE NO. 1216

Defining “OPEN SPACE” in residential subdivisions and amending Section 31 of PD No. 957 requiring subdivision owners to provide roads, alleys, sidewalks and reserve open space for parks or recreational use.

"Sec. 31. Roads, Alleys, Sidewalks and Open spaces. - The owner as developer of a subdivision shall provide adequate roads, alleys and sidewalks. For subdivision projects one (1) hectare or more, the owner or developer shall reserve thirty percent (30%) of the gross area for open space. Such open space shall have the following standards allocated exclusively for parks, playgrounds and recreational use:

9% of gross area for high density or socialized housing (66-100 lots/ha.)

7% of gross area for med. density economic housing (21-65 lots/ha.)

3.5% of gross area for low density or open market housing (20 lots & below/ha.)

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

REPUBLIC ACT 4726JUNE 18, 1966

An act to define Condominium, establish requirements for its creation, and govern its incidence.

CONDOMINIUM - is an interest in real property consisting of a separate interest in a UNIT, in a residential, industrial or commercial building and an undivided interest in common directly or indirectly, in the land on which it is located and in other common areas of the building.

Title to the common areas may be held by a corporation especially formed for the purpose, in which the holder of separate interests shall automatically be members or shareholders in proportion to the appurtenant interest of their respective units in the common areas.

MASTER DEED - an enabling deed which contains the following:Description of the land on which the building(s) are to be located;Description of building(s) stating the number of storeys and basements, the number of units and their accessoriesDescription of common areas and facilities

A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project.Statement of the purposes for which the building or buildings and each of the units are intended or restricted to use- Plans- survey plan of the land- diagrammatic floor plan of the buildings, its – relative location and approximate dimensions.

TRANSFER OR CONVEYANCE – of a unit shall include the transfer or conveyance of the undivided interest in the common areas or the membership or shareholding in the condominium corporation

- If transfer to a corporation said corporation’s capital stock must be at least 60% Filipino-owned.

DECLARATION OF RESTRICTIONS – shall constitute a lien upon each condominium owner. The Register of Deeds shall enter and annotate the declaration of restrictions upon the certificate of title covering the land.

Shall provide for the management of the project by anyone of the following management bodies:

- condominium corporation- association of condominium owners- board of governors elected by condominium owner- management agent elected by the owners or the board

Provision for Parks/Playground

Project with gross sellable area of 1,000 sq.m.

Projects with 10 or more condominium units (except: if condo is part of a subd. proj.)

Not required if the condo is located not more than 800 meters from parks/playground

REAL ESTATE TAXATION – Each condominium separately owned shall be separately assessed to the owners thereof and tax or each such condominium shall constitute a lien solely thereon.

Dwelling Types

Single Detached. – a dwelling for 1 family which is completely surround by permanent open spaces, with independent access, services, and use of land.

Duplex/Single Attached – a dwelling containing 2 or more separate living units each of which is separated from another by party or lot lines walls and provided with independent access, services and use of land. Such dwelling shall include duplexes, quadruplex or terraces and cluster housing.

Rowhouse. – a single-attached dwelling containing 3 or more separate living units designed in such a way that they abut each other at the sides, as in a row and are separated from each other by party walls; provided with independent access, and use of land. There be a maximum of 20 units per block or cluster but in no case shall this be beyond 100 meters in length.

Two Types of Subdivision: 1. Simple 2. Complex

Comparative Characteristics: a. Simple Subdivision: a.1 No road delineation a.2 With or without development a.3 Provision of open space is optional a.4 Less than an hectare b. Complex Subdivision: b.1. Road/passageway delineated b.2. Development is compulsory b.3. Open spaces compulsory (for 1 ha. And up)

Existing Road

Lot 4Lot 3Lot 2Lot 1

Simple Subdivision

Existing Road

Lot 8Lot 1

Lot 7Lot 2

Lot 6Lot 3

Lot 5

R

O

A

D

L

O

T

Lot 4

Complex Subdivision

SELLING PRICE - PD 957

Above P1.25M-P3MAbove P3M

Medium CostOpen Market

Minimum Lots Area

80 sq. m.96 sq. m.b. Duplex/Single- Attached

50 sq. m.60 sq. m.c. Rowhouse

100 sq. m.120 sq. m.a. Single Detached

Medium Cost

Open Market

Type of Housing

Maximum Selling Price for House and Lot Package (under BP 220)

P300,000.00P1,250,000.00

An approved socialized housing project shall not be upgraded to any

other type of housing project

Socialized HousingEconomic Housing

Area for Parks & Playgrounds

6.0%176-2006.0%131-140

7.0%201-2257.0%141-150

5.0%161-1755.0%121-130

9.0%Above 2259.0%Above 150

4.0%151-1604.0%101-120

3.5%150 & Below3.5%100 & Below

% of Gross Area for Parks & Playground

Density (No. of Lots or Dwelling Units Per

Hectare)

% of Gross Area for Parks & Playground

Density (No. of Lots or Dwelling Units Per

Hectare)

Socialized HousingEconomic Housing

Area for Community Facilities

2.0%Above 2252.0%Above 150

1.5%151-2251.5%101-150

1.0%150 & Below1.0%100 & Below

% of Gross Area for

Community Facilities

Density (No. of Lots or

Dwelling Units Per Hectare)

% of Gross Area for

Community Facilities

Density (No. of Lots or

Dwelling Units Per Hectare)

Socialized HousingEconomic Housing

SETBACK/YARD

May be allowed per requirements of the National Building Code of

the Philippines

d. Abutments

2.0 meters2.0 metersc. Rear Yard

1.5 meters1.5 metersb. Side Yard

1.5 meters1.5 metersa. Front Setback

Socialized Housing

Economic Housing

Parameter

Water Distribution System

Things to be noted on analyzing water distribution system: 1.    Source of Water2.    Main Water Line3.    Household Connection4.    Gate Valve5.    Fire Hydrant Maximum Spacing = 250 meters with minimum diameter of 2 ½” O pipe.

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