Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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=hen a homesteader has complied with all the terms and conditions which
entitle him to a patent for a tract of public land, he acuires a vested interest
therein, and is to be regarded as the euitable owner thereof.
-he e$ecution and delivery of the patent, after the right to a particular
parcel of land has become complete, are the mere ministerial acts of the
officer charged with that duty.
Free patent 7 Any natural7born citi?en of the Philippines who is not the owner of
more than #* hectares and who, for at least 3< years, has continuously occupied
and cultivated, by himself or through his predecessors7in7interest a tract of
agricultural public land, and who shall have paid the real estate ta$ thereon shall
be entitled to have a free patent issued to him for such tract of land not to e$ceed
twelve #* hectares.
RA No. 10023, dated March 9, 2010, authorizes issuance of free patent titles
to zoned residential lands. Residence requirement: 10 years.
Reuirements'
Survey plan and technical description
Affidavit of two * persons who are residents of the barangay that the
applicant has actually resided on, and actually possessed and occupied, the
land applied for, under a /ona %ide claim of ownership, for at least #<
years, and has complied with the other reuirements prescribed by the Act.
Sales patent 7 Any citi?en of the Philippines of lawful age or the head of a family
may purchase any tract of pu/lic agricultural land not to e$ceed twelve hectares
which shall be sold thru sealed bidding. -he land shall be awarded to the highest
bidder, but the applicant may eual the highest bid.
-he purchaser shall have not less than one7fifth of the land cultivated
within five years from the date of the award, and pays the full purchase
price.
Direct sale 7 RA Co. 53< permits the direct sale of public lands for residential
purposes to ualified applicants.
-he applicant must' 8a9 be a >ilipino citi?en of legal ageA 8b9 not the
owner of a home lot in the municipality or city in which he residesA 8c9
have established in good faith his residence on a parcel of public land
which is not needed for public serviceA and 8d9 have constructed his house
and actually resided therein.
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TITLE INDEFEASIBLE
A certificate of title issued pursuant to a public land patent parta&es of the nature
of a certificate of title issued through Hudicial proceeding. 0t becomes
incontrovertible upon the e$piration of one year from the date of the order for
issuance of the patent, hence, prescription cannot operate against the registered
owner.
0f the land covered by a free patent was a private land, the ,irector of 2ands has
no Hurisdiction over it. Such free patent and the subseuent certificate of title
issued pursuant thereto are a nullity.
*44
-he aggrieved party may initiate an action
for cancellation of such title.
*4"
CONTINUING AUTHORITY
TO INVESTIGATE
%ut the Regional ,irector has continuing authority to conduct an investigation to
determine whether or not fraud attended the issuance of the patent.
-he Solicitor 3eneral may bring an action for cancellation of title obtained
through fraud and for the reversion of the land to the State.
Action is not barred by prescription.
PROHIBITED ALIENATIONS
Homestead - may not be sold or encumbered within " years from the issuance of
the patent, and for a term of *< years thereafter without the consent of the ,:CR
Secretary.
2and covered by a Free paent V may not be sold within " years from the issuance
of the patent.
Prohibition against alienation is mandatory.
Policy of the law:
-o conserve the land which a grantee has acuired under the Public 2and Act for
him and his heirs as a reward for his labor in cleaning and cultivating it
-o give the patentee a place where to live with his family so he may become a
happy citi?en and useful member of society
*44
Agne v. ,irector of 2ands, 3.R. Cos. 4<344 U 5**"", >ebruary @, #44<, #6# S1RA 543, 6<3.
*4"
Pabaus v. Dutiamco, 3R Co. #@43"@, +uly *5, *<##
4"
EFFECT OF A VOID CONVEYANCE
0t shall produce the effect of annulling and cancelling the title and cause the
reversion of the property and improvements to the State.
REPURCHASE
:very conveyance of land acuired under the free patent or homestead provisions,
when proper, shall be subHect to repurchase by the applicant, his widow, or legal
heirs, within a period of five years from the date of the conveyance.
-he five7year period of redemption of homestead sold at e$traHudicial foreclosure
runs after the e$piration of the one7year period of repurchase allowed in an
e$traHudicial foreclosure.
Ruery' =here the patentee sold the land during the prohibited period, may he
recover the property from the vendeeT Des, consistent the with the fundamental
policy to afford the patentee a piece of land for his home and cultivation.
8%inayug v. Ugaddan, 3R Co. #6#@*3, ,ec. ", *<#*9
SUBDIVISION AND CONDOMINIUM
BUYER`S DECREE (PD 957)
Su/division pro>ect 2 a registered parcel of land registered partitioned for
residential purposes into individual lots and offered to the public for sale, in cash
or in installment terms. 0t shall include all residential, commercial, industrial and
recreational areas as well as open spaces and other community and public areas in
the proHect.
Condo"iniu" unit 2 a part of the condominium proHect intended for any type of
independent use or ownership, including one or more rooms or spaces located in
one or more floors 8or part of parts of floors9 in a building or buildings and such
accessories as may be appended thereto.
(eveloper 2 the person who develops or improves the subdivision proHect or
condominium proHect for and in behalf of the owner thereof.
1URISDICTION OF THE HLURB
Unsound real estate business practicesA
1laims involving refund and any other claims filed by subdivision lot
condominium unit buyer against the proHect owner, developer, dealer, bro&er
or salesmanA and
4@
1ases involving specific performance of contractual and statutory obligations
filed by buyers of subdivision lot or condominium unit against the owner,
developer, dealer, bro&er or salesman.
.2UR% has Hurisdiction over cases for collection of unpaid installments and
claims for damages.
Co Hurisdiction over cases filed by subdivision owners or developers against lot
or unit buyers
1ourt, not .2UR%, has Hurisdiction over issues involving ownership or
possession of property.
SUMMARY OF CASES WHERE
HLURB HAS 1URISDICTION
>or a determination of the rights of the parties under a contract to sell a
subdivision lotA
>or the delivery of title against the subdivision ownerA
>or the refund of reservation fees for the purchase of a subdivision lotA
>or specific performance filed by a lot buyer against the seller of a subdivision
lotA
>or the annulment of the mortgage constituted by the proHect owner without the
buyerGs consent, the mortgage foreclosure sale, and the condominium certificate
of title issued to the highest bidder at the said foreclosure saleA
>or the collection of the balance of the unpaid purchase price of a subdivision lot
filed by the developer of a subdivision against the lot buyerA and
>or incidental claims for damages.
LICENSE TO SELL
-he owner or dealer must have a license to sell the proHect within two wee&s from
the registration of such proHect.
.owever, the absence of a license to sell the subdivision lots does not render the
sale thereof void. -he absence of the license to sell only subHects the
condominium developer and its officers civilly and criminally liable.
EXEMPT TRANSACTIONS
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Sale of a subdivision lot resulting from the partition of land among co7owners and
co7heirs.
Sale or transfer of a subdivision lot by the original purchaser and any subseuent
sale of the same lot.
Sale of a subdivision lot or a condominium unit by or for the account of a
mortgagee in the ordinary course of business when necessary to liuidate a bona
fide debt.
FOREIGNERS MAY PURCHASE
Under RA Co. 45*@, foreign nationals can own Philippine real estate through the
purchase of condominium units or townhouses up to not more than 4<P of the
total and outstanding capital stoc& of a >ilipino7owned or controlled corporation.
-he land is owned by the condominium corporation and the unit owner is simply
a member in this condominium corporation.
DEALERS AND BROKERS
Co real estate dealer, bro&er or salesman shall engage in the business of selling
subdivision lots or condominium units unless he has registered himself with the
%oard.
Applicant must be of good repute and has complied with the applicable rules of
the Authority
REGISTRATION
All contracts to sell, deeds of sale and other similar instruments relative to the sale
or conveyance of the subdivision lots and condominium units, whether or not the
purchase price is paid in full, shall be registered in the !ffice of the Register of
,eeds of the province or city where the property is situated.
MORTGAGES
Co mortgage on any unit or lot shall be made by the owner or developer without
prior written approval of the %oard. Such approval shall not be granted unless it is
shown that the proceeds of the mortgage loan shall be used for the development of
the condominium or subdivision proHect and effective measures have been
provided to ensure such utili?ation.
-he mortgage of a subdivision lot or a condominium unit is void if e$ecuted by a
property developer without the prior written approval of the .2UR%. -hat an
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encumbrance has been constituted over an entire property, of which the subHect lot
or unit is merely a part, does not affect the invalidity of the lien over the specific
portion at issue. -he fact that the lot had no separate -1- did not ma&e it less of a
Ssubdivision lotS entitled to the protection of P, 4"5.
*4@
(-he circumstance that ,%P and A,1 e$ecuted the mortgage contract prior to the
selling of the subdivided portions of the property to 1apulong is immaterial
considering that when ,%P granted the loan to A,1, it already &new that the loan
was to be used for realty development. ,%P should have considered that it was
dealing with a property subHect of a real estate development proHect. $ $ $ ,%P
cannot be deemed to be an innocent mortgagee.)
*45
-he essence of the governmentJs sociali?ed housing program is to preserve the
beneficiaryJs ownerships for a reasonable length of time, at least within five years
from the time he acuired it free from any encumbrance.
*46
ADVERTISEMENTS
Advertisements by the owner or developer must not mislead or deceive the public.
A subdivision owner was held in breach when it failed to deliver a (closed7circuit
-E monitor through which residents from their apartments can see their guests)
as advertised. 8%P0 v. A2S /anagement, 3R Co. #"#6*#, April #4, *<<49
TIME OF COMPLETION
Petitioner may be held liable in damages for any delay in the construction.
A reuest for e$tension of time to complete development of a subdivision or
condominium proHect may be granted only where non7completion of the proHect is
caused by fortuitous events or legal ordersand with written notice to lot or unit
buyers.
DESISTANCE OR NON-PAYMENT
OF AMORTIZATIONS
%uyer need not give prior notice before desisting from further paying
amorti?ations.
%uyer may not be ousted for non7payment due to the failure of the subdivision
owner to put up the reuired improvements.
*4@
>ar :ast %an& and -rust 1o, v, /arue?, 3R Co. #454@4, April #4, *<<4.
*45
,%P v. 1apulong, 3R Co. #6#54<, +an. 3<, *<<4.
*46
2alicon v. C.A, 3R Co. #6"44<, +uly #3, *<##.
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>ailure to develop a subdivision may Hustify non7payment of amorti?ations by a
lot buyer.
>ailure of seller to deliver the condominium unit entitles buyer to cancel contract.
THE MACEDA LAW
%uyer is entitled to the following rights in case he defaults in the payment of
succeeding installments'
3race Period VV to pay, without additional interest, the unpaid installments
due within the total grace period earned by him which is fi$ed at the rate of one
month grace period for every year of installment payments made' Provided- -hat
this right shall be e$ercised by the buyer only once in every five years of the life
of the contract and its e$tensions, if anyA and
Refund of (1ash Surrender Ealue) K if the contract is cancelled, the
seller shall refund to the buyer the cash surrender value of the payments on the
property euivalent to fifty percent of the total payments made and, after five
years of installments, an additional five percent every year but not to e$ceed
ninety per cent of the total payments madeA Provided- -hat the actual cancellation
of the contract shall ta&e place after thirty days from receipt by the buyer of the
notice of cancellation or the demand for rescission of the contract by a notarial act
and upon full payment of the cash surrender value to the buyer.
ISSUANCE OF TITLE
-he owner or developer shall deliver the title of the lot or unit to the buyer upon
full payment of the lot or unit.
:ven with a valid mortgage over the lot, the seller is still bound to redeem said
mortgage without any cost to the buyer apart from the balance of the purchase
price and registration fees.
ROADS, ALLEYS, OPEN SPACES
-he owner as developer of a subdivision shall provide adeuate roads, alleys and
sidewal&s, and for subdivision proHects one hectare or more, reserve 3<P of the
gross area for open space e$clusively for par&s, playgrounds and recreational use.
-hese areas shall be non7alienable public lands, and non7buildable.
-he roads, alleys, sidewal&s and playgrounds shall /e donated by the owner or
developer to the city or municipality and it shall be mandatory for the local
government to acceptA provided, however, that the par&s and playgrounds may be
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donated to the .omeowners Association of the proHect with the consent of the city
or municipality concerned.
VISITORIAL POWERS
-he %oard, through its duly authori?ed representative may, at any time, ma&e an
e$amination into the business affairs, administration, and condition of any person,
corporation, partnership, cooperative, or association engaged in the business of
selling subdivision lots and condominium units.
0t may deputi?e the Philippine 1onstabulary or any law enforcement agency in the
e$ecution of its final orders, rulings or decisions.
TAKEOVER DEVELOPMENT
-he %oard may ta&e over or cause the development and completion of the
subdivision or condominium proHect at the e$penses of the owner or developer
who has refused or failed to develop or complete the development of the proHect.
0t may demand, collect and receive from the buyers the installment payments due
on the lots for the development of the subdivision.
ADMINISTRATIVE FINES
-he %oard may prescribe and impose fines not e$ceeding ten thousand pesos for
violations of the provisions of the ,ecree or of any rule or regulation thereunder.
>ines shall be payable to the %oard and enforceable through writs of e$ecution in
accordance with the provisions of the Rules of 1ourt.
.2UR% is without Hurisdiction to determine criminal liability.
ILLUSTRATIVE CASES
Gotesco Properties, Inc. (GPI) v. Fajardo, GR No. 201167, Feb. 27, 2013
Section *" of P, 4"5 imposes on the subdivision owner or developer the
obligation to cause the transfer of the corresponding certificate of title to the buyer upon
%ull pay"ent. >or the long delay in the performance of its obligation, 3P0 substantially
breached its contract to sell which accords the buyers the right to rescind the contract.
:uity and Hustice dictate that the buyers should be allowed to recover the prevailing
mar&et value of the undelivered lot, with payment of moral and e$emplary damages and
attorneyJs fees, including costs of suit.
PNB v. Lim, GR No. 171667, 1an. 30, 2013
"#
-he Hurisdiction of the .2UR% to regulate the real estate trade is broad enough to
include Hurisdiction over complaints for annulment of mortgage. -his is pursuant to the
intent of P, Co. 4"5 to protect hapless buyers from the unHust practices of unscrupulous
developers which may constitute mortgages over condominium proHects sans the
&nowledge of the former and the consent of the .2UR%.
Liwag v. Happy Glen Hope Homeowners Association, Inc., GR No. 189755,
1uly 4, 2012
P, Co. #*#@ e$pressly provides that open spaces in subdivisions are reserved for
public use and are /eyond the co""erce o% "an. -he term Sopen spaceS is defined in P,
#*#@ as San area reserved e$clusively for par&s, playgrounds, recreational uses, schools,
roads, places of worship, hospitals, health centers, barangay centers and other similar
facilities and amenities.) -he enumeration refers to areas reserved for the common
welfare of the community. -he water facility in uestion was used continuously for more
than 3< years as the residentsJ sole source of water and forms part of the area reserved for
open space. -he sale by the subdivision owner of the water facility is null and void and
ma&es out a case of unsound real estate business practice within the e$clusive Hurisdiction
of the .2UR%.
Bethel Realty and Development Corporation v. HLURB, GR No. 184482,
1uly 4, 2012
>or failure of petitioner, %ethel Realty, to deliver the title to the complainants
despite the latterGs full payment of the subdivision lot in uestion, the .2UR% rendered a
decision ordering petitioner to immediately deliver the corresponding title to
complainants, failing in which it shall refund to complainants the total amount paid to it
plus interest and damages. 0n addition, .2UR% directed petitioner to pay damages to
complainants in the sum of P*<,<<<.<<, and to the %oard, administrative fine of
P#<,<<<.<< (for violation of Sections 4, " and *" of Presidential ,ecree Co. 4"5.) -he
decision was affirmed by the 1ourt.
Metropolitan Cebu Water District v. Mactan Rock Industries, Inc., GR No.
172438, 1uly 4, 2012
1iting Pe*a v. ,S+S,
*44
the 1ourt held that although the complaint for specific
performance, annulment of mortgage, and damages filed by the petitioner against the
respondent included title to, possession of, or interest in, real estate, it was well within the
Hurisdiction of the .ousing and 2and Use Regulatory %oard 8.2UR%9, a uasi7Hudicial
body, as it involved a claim against the subdivision developer, RueenJs Row Subdivision,
0nc., as well as the 3overnment Service 0nsurance System 83S0S9. PeOa was later cited in
1adillo v. Court o% Appeals,
3<<
where the 1ourt concluded that the .2UR% had
Hurisdiction over complaints for annul"ent o% title. -he 1ourt also held that courts will
not determine a controversy where the issues for resolution demand the e$ercise of sound
*44
3R Co. #"4"*<, Sept. #4, *<<@, "<* S1RA 363.
3<<
3R Co. #3#4<3, +une *@, *<<6, """ S1RA 43".
"*
administrative discretion, such as that of the .2UR%, the sole regulatory body for
housing and land development.
Ortigas & Co. v. Court of Appeals, GR No. 129822, 1un 20, 2012
Section # of P.,. #344 @ vests in the .2UR% the e$clusive Hurisdiction to hear
and decide the following cases' 8a9 unsound real estate business practicesA 8b9 claims
involving refund and any other claims filed by subdivision lot or condominium unit buyer
against the proHect owner, developer, dealer, bro&er, or salesmanA and 8c9 cases nvolving
specific performance of contractual and statutory obligations filed by buyers of
subdivision lots or condominium units against the owner, developer, dealer, bro&er or
salesman. 0n the conte$t of the evident obHective of Section #, it is implicit that the
Sunsound real estate business practiceS would, li&e the offended party in paragraphs 8b9
and 8c9, be the buyers of lands involved in development. -he policy of the law is to curb
unscrupulous practices in real estate trade and business that preHudice buyers. %ut not
every case involving buyers and sellers of subdivision lots or condominium units can be
filed with the .2UR%. 0ts Hurisdiction is limited to those cases filed by the buyer or
owner of a subdivision lot or condominium unit and based on any of the causes of action
enumerated in Section # of P, #344.
3<#
Go v. Distinction Properties Development and Construction, Inc., GR No.
194024, April 25, 2012
-he .2UR% is given a wide latitude in characteri?ing or categori?ing acts which
may constitute unsound business practice or breach of contractual obligations in the real
estate trade. -his grant of e$pansive Hurisdiction to the .2UR% does not mean, however,
that all cases involving subdivision lots or condominium units automatically fall under its
Hurisdiction. >or an action to fall within the e$clusive Hurisdiction of the .2UR%, the
decisive element is the nature of the action as enumerated in Section # of P, #344. 0t has
been consistently held that the concerned administrative agency, .2UR%, has
Hurisdiction over complaints aimed at compelling the subdivision developer to co"ply
with its contractual and statutory o/ligation.
3<*
A perusal of the complaint discloses that
petitioners are actually see&ing to nullify and invalidate the duly constituted acts of
P.11 K the April *4, *<<" Agreement *5 entered into by P.11 with ,P,10 and its
%oard Resolution *6 which authori?ed the acceptance of the proposed
offsetting;settlement of ,P,10Js indebtedness and approval of the conversion of certain
units from saleable to common areas. Petitioners alleged causes of action are nott
cogni?able by the .2UR% considering the nature of the action and the reliefs sought.
Luzon Development Bank v. Enriquez, GR No. 168646, 1an. 12, 2011.
,:2-A violated Section #6 of P, 4"5 in mortgaging the properties in ,elta .omes 0
8including 2ot 49 to the %ACI without prior clearance from the .2UR%. -his violation
renders the mortgage void. =e have held before that Sa mortgage contract e$ecuted in
3<#
1iting ,elos Santos v. Sarmiento, 3R Co. #"4655, /arch *5, *<<5, "#4 S1RA @*, 5".
3<*
1iting 1hristian 3eneral Assembly, 0nc. v. 0gnacio, 3R Co. #@4564, August *5, *<<4, "45 S1RA *@@.
"3
breach of Section #6 of MP, 4"5N is null and void.S 1onsidering that SP, 4"5 aims to
protect innocent subdivision lot and condominium unit buyers against fraudulent real
estate practices,S we have construed Section #6 thereof as Sprohibitory and acts
committed contrary to it are void.) Sec. #5 of P, 4"5 reuires that contracts to sell
registered is registered with the Register of ,eeds in order to ma&e it binding on third
parties. %ut despite non7registration, the %ACI cannot be considered an innocent
purchaser for value since it was well aware that the assigned properties, including 2ot 4,
were subdivision lots and therefore within the purview of P, 4"5.
1USTICE OSWALDO D. AGCAOILI
Philippine +udicial Academy
Supreme 1ourt
""*74@3@, 4**7<*3*, <4*<74"<@364
:mail' oswaldodagcaoiliByahoo.com
Reference:
AGCAOILI, Property Registration Decree and Related Laws (Land Titles and
Deeds) 2011 ed., (with a foreword by Chief justice Reynato S. Puno), cited by the
Supreme Court as ~one o' the recogni(ed te)t*oo+s on property registration in &land
Philippines $nc, v. -arcia, GR No. 173289, Feb. 17, 2010. See also: Agcaoili, Law
on %at"ral Reso"rces and &nvironmental Law Developments (with a Foreword by
1ustice Adolfo S. Azcuna, Chancellor, Philippine 1udicial Academy, Supreme
Court), and Reviewer in Property Registration and Related Laws (With Sample
M!s and S"ggested #nswers) . Published by REX Book Store, Inc.
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