COMPREHENSIVE REAL ESTATE

SEMINAR (CRES)
For REAL ESTATE BROKERS
November 21, 2015 to January 10, 2016
Mama Luisa Restaurant
J. Catolico Avenue, General Santos City

SUBDIVISION DEVELOPMENT
By: Engr. Waldemar G. Soguilon, REB, REA, EnP
PRC
PRC
PRC
PRC
PRC

Licensed Real Estate Broker #0018562

Licensed Real Estate Appraiser #004650
Licensed Prof. Agricultural Engineer #0000603
Licensed Environmental Planner # 0001152
Certificate of Accreditation for Lecturer # 0135

TOPIC
OUTLINE
I. Introduction
a. Constitutional Mandate
b. Useful Statistics
c. Key Shelter Agencies
d. HUDCC Vision
e. Framework for Housing
II. General Concepts of Subdivision Development
a. Background
c. Main Categories
of Subd. Development
b. Definitions
d. Types of Residential Subdivision
e. Kinds od Subdivision
e.1 As to Complexity
e.2 As to Uses
III. SUBDIUVISION DEVELOPMENT PROCESS
a. TYPES OF SUBDIVISION
b. TWO STEPS IN SUBDIVISION DEVELOPMENT
c. Summary of Legal/Physical Development
III. Quick Guide on Real Estate Laws and Issuances on Special and Technical
Knowledge
IV. HLURB Historical Background

V. REAL ESTATE LAWS

a. PD 957 The Subdivision and Condominium Buyers
Protective Decree
b. PD 1216 Defining Open Space in residential
subdivision
amending section 31 of PD 957
c. RA 7279 Urban Development and Housing Act of 1992
d. RA 6552 Realty Installment Buyer Protection Act
(The Maceda Law)
e. BP 220 An Act authorizing the Ministry of Human
Settlements
to established and promulgate
different levels of
standards and technical
requirements for economic
and socialized housing
projects in urban and rural
areas
f. RA 9904 Magna Carta for Homeowners and
Homeowners
Associations

1987 Constitution:

Mandates the state to undertake, in cooperation with

the
private sector, a continuing program of urban land reform
and housing, which will make available at affordable cost
decent housing and basic services to underprivileged and
homeless citizens in urban centers and resettlement
areas.

USEFUL STATISTICS:
RPs Total National population (as of 2015) - 100 million
Urban Population (63%)
- 63 Million
Number of Households
-12.5 Million
Informal settlers (20% of the urban population)
-2.55 M households
Housing backlog (nationwide)
- 5.5 Million houses
Housing backlog (for Mindanao alone)
- 620,000 houses
Number of squatters/
Informal settlers nationwide
- 585,926 households
Number of squatters/
Informal settlers in Metro Manila
- 220,000 households
Revalidated UDHA Registrants
in Gen.Santos City (as of 11/ 25/10)
- 15,950
Squatter/informal dwellers within
General Santos City(2011)
- 21, 847 households

KEY SHELTER AGENCIES

HUDCC
HDMF

Lender
s

SHFC
NHA

HLURB

NHMFC
Fund
Mobilizer

Producer

HGC
Pending Proposal:
Dept. of Housing and Urban Development (DHUD)

Regulator

HUDCC Vision:
To provide families not just with the infrastructure of a
house but the framework of a home, to build not just a
neighborhood, but a real harmonious community.

A Framework for Housing

Housing- not a mere commodity, product, or structure
-It is a human right that the government has the responsibility to promote and
protect.
-Can also be a process of community empowerment.
Security of Tenure
-Seen as an entry point to organize, strengthen, and empower a community.
Housing Finance is a strategy rather than the objective.
CMP (Community Mortgage Program)
-is primarily an asset reform program
-a poverty reduction program using housing finance as a strategy.

II. GENERAL CONCEPTS OF SUBDIVISION

DEVELOPMENT
a.

BACKGROUNDER:
. Subdivision

development is a very
complex undertaking
. It needs the services of different
professionals such as Civil Engineers,
Architects, Geodetic Engineers, and
many more.

b. DEFINITIONS:
1. SUBDIVISIONdivision of a tract or parcel of land
into two or more lots, sites or other divisions for the
purpose, whether immediate or future, of a sale or
building development. It also includes re-subdivision.
2.LAND
SUBDIVISIONrefers
to
the
creative
manufacturing process of converting a large parcel
of raw land or consolidating several adjoining
parcels of various sizes and shapes, subdividing the
consolidated land in an orderly pattern and providing
access roads to each of the lots, together with such
utilities, facilities and amenities as maybe necessary
for the particular project.

3.

SUBDIVISION
DEVELOPMENTthe
conversion of unimproved rawland into a site
that will be capable of supporting a desired
activity and intended usage, which may be for
residential,
commercial,
or
industrial
purposes.

It should be noted that while subdivision

technically refers to the mere partitioning of
land, and development means the subdivision
and the setting up of essential community
facilities,
the
words
are
in
practice,
interchangeable.

MAIN CATEGORIES OF
SUBDIVISION DEVELOPMENT
c.1

RESIDENTIAL
SUBDIVISION
the
conversion of rawland a safe, serviceable and
affordable residence with associated facilities.

c.2

COMMERCIAL
DEVELOPMENTSthe
development of strategically located property
for office, retail, wholesale and financial
activities and also for general services and
travellers needs. Its viability is dependent on
the purchasing power of the supporting
population within the area and it accessibility.

c.3

INDUSTRIAL
DEVELOPMENTthe
development of big tract of rawland which
focuses on providing property to industrial,
manufacturing
purposes.
Its
success
depends upon the climate, topography,
transportation facilities, and availability of
sewer outlets, water sources and future
expansion potentials.

d. TYPES OF RESIDENTIAL
SUBDIVISIONS:
d.1

SINGLE FAMILY DEVELOPMENTa

single dwelling unit on each building lot
with direct access to a street.
a. Detached single
b. Attached duplex

d.2 MULTI FAMILY DEVELOPMENT- more

than one dwelling unit on each building
lot
Example: Multilevel housing
Tenement housing

e. KINDS OF SUBDIVISION:
e.1 As to Complexity
1. SIMPLE refers to a subdivision of a parcel of land
located on an existing street into two or more lots
without creating any road or open space or without
changing the existing external periphery for
boundary.
2. COMPLEX refers to a subdivision of a parcel of
land after consolidating them into two or more lots,
with provisions for roads and/or community spaces,
or with changes in the external periphery or
boundary.

e.2 As to Uses
1. RESIDENTIALdevoted to dwelling in a
certain place that is used as the permanent
abode of a person or family.
2. COMMERCIALdevoted to edifices or
houses in which businesses directed primarily
for profit is transacted or undertaken.
3. INDUSTRIALdevoted to use by entities
engaged in industrial pursuit or manufacturing
of goods for profit.

4. INSTITUTIONALdevoted to the use by

institutions, societies or corporations that are
charitable, educational, and religious or the like in
nature and character.
5. FARMdevoted to agricultural purposes or the
raising of domestic animals for sale, or personal
use and consumption.
6. RESORTa place that is frequently and
customarily used for assembly and entertainment
purposes or where a person or his family friends
usually go for adventure and relaxation.

SUBDIVISION DEVELOPMENT
PROCESS
TWO TYPES of SUBDIVISION

SIMPLE SUBDIVISION:

A partitioning of one lot without any

street or open space.
COMPLEX SUBDIVISION:
A partitioning of one lot where the
streets and open spaces are clearly
delineated.

A physically & welldeveloped subdivision

can generate money and
credit from:

Banks
Suppliers
Contractors
Buyers

Professionals needed to
develop a subdivision:
Lawyer
Geodetic Engineer
Surveyor
Architect
Civil Engineer
Electrical Engineer
Sanitary EngineerStructural Engineer
Landscape Artist Accountant
Project Manager Environmental Planner
(Real Estate Practitioners)??!
REC, REA, REB, Salesperson

TWO STEPS IN SUBDIVISION

DEVELOPMENT

1.LEGAL DEVELOPMENT:
the paperwork
2. PHYSICAL DEVELOPMENT:
the technical side to convert
raw land into a housing project

Legal Development

PERMITS & CLEARANCES:

Barangay Clearance

Locational Viability (LGU)

Environmental Compliance
Certificate (DENR)
Conversion (DAR) or reclassification
(LGU)

Legal Development

CONCEPT & FINAL PLANS:

Conceptual design of the houses
Schematic plan of the
subdivision
Final plans of the house and the
subdivision
Sales & marketing plans

Legal Development

SURVEYS:
Table survey
Field survey
Relocation or verification survey

CITY/MUNICIPAL PLANNING
OFFICE:
Zoning clearance

Legal Development
CITY/ MUNICIPAL COUNCIL:
Mayors permit (Subdivision Task Force)
CITY MUNICIPAL ENGINEERS
OFFICE/BUILDING OFFICIAL:
Building permit
Occupancy permit

Legal Development

BUREAU OF LANDS:
Approved subdivision plan
Approved lot description
Approved technical description

Legal Development

HOUSING & LAND USE REGULATORY

BOARD:
(HLURB)
Certificate of Registration (CR)
Performance Bond (PB)
License to sell (LS)

Legal Development

REGISTER OF DEEDS:
Issuance of individual titles
Certified true copy of titles
ASSESSORS OFFICE:
Issuance of individual tax declaration

Physical Development
SITE CLEARING:
Cut & fill
Earthmoving work
Road tracing
Monumenting of lots

Physical Development

ENTRANCE/EXIT GATES:
Guard house
Perimeter fences
DRAINAGE SYSTEM:
Underground pipes
Manholes

Physical Development
CONSTRUCTION OF ROADS:
Road preparation
Cementing or asphalting
Curbs & gutters
Sidewalks

Physical Development
CONSTRUCTION OF HOUSES:
Construction of model units
Construction of houses
CONSTRUCTIONS OF AMENITIES:
Construction of open space facilities
(playgrounds, clubhouse, basketball
court, etc)

Physical Development
ELECTRICAL SUPPLY:
Erection of electrical posts
Electrical connections
Street lights
WATER SUPPLY:
Deep well with elevated water tank or
undergone cistern
MWSS/Water District interconnection

Physical Development
OTHER UTILITIES:
Cable TV connections
Telephone lines
Internet connections
CCTV/security cameras

1.Legal Development: The paperwork

a. Permits and Clearances
b. Concept and Final Plans
c. Surveys
d. City/Municipal Planning Office
e. City/Municipal Council
f. City/Municipal Engineers Office/Office of the
Building Official (OBO)
g. Bureau Of Lands
h. Housing and Land Use Regulatory Board
(HLURB)

2.Physical Development
a. Site Clearing
b. Entrance/Exit Gates
c. Drainage System
d. Construction of Roads
e. Construction of Houses
f. Construction of Amenities
g. Electrical Supply
h. Water Supply
i. Other Utilities

QUICK GUIDE
ON
REAL ESTATE LAWS AND
ISSUANCES
ON
SPECIAL & TECHNICAL
KNOWLEDGE

EO419

Task Force on Human Settlements

(TFHS ) (9/19/75)
PD 933 Human Settlements Commission (HSC)
(05/13/76)
PD1396 Human Settlements Regulatory
Commission (HSRC) (6/2/78)
EO 648 Reorganizing HSRC (2/07/81)
EO 71
Devolution of HLURBs function to
approved subdivision plans to LGUs
EO 72
Providing for the preparation and
implementation of the Comprehensive
Land Use Plans (CLUPs) of Local
Government Units pursuant to the Local
Government Code of 1991 and other
pertinent laws.

EO 90
(1986)

Identifying
the
government
agencies
essential
for
the
National Shelter Program and
defining
their
mandates,
Coordinating Council (HUDCC),
rationalizing funding sources and
lending mechanisms for home
mortgages.
EO 184 Creating socialized housing one-stop
processing centers
EO 648 Reorganizing the Human Settlement
(1981)
Regulatory Commission. Declared the
HLURB as the planning, regulatory
and quasi-judicial instrumentality of
government
for
land
use
development

ACT 3135

BP 220
(1982)

PD 856
PD 953

PD 957
(1976)

An Act to Regulate the Sale of Property Under

Special Powers Inserted in or Annexed to Real
Estate Mortgages
An act authorizing the Ministry of Human
Settlements to establish and promulgate
different levels of standards and
technical requirements for economic and
socialized housing projects in urban and
rural areas from those provided under
Presidential Decrees No. 957, 1216, 1096
and 1185.
Code of Sanitation of the Philippines
Requiring the Planting of trees in Certain
Places and Penalizing Unauthorized
Cutting
The Subdivision and Condominium
Buyers Protect Decree/regulating the

PD 1216

PD 1344

PD 1529
PD 1752
RA 7899
RA 9856

Defining Open Space in residential

subdivision amending Sec. 31 of P.D.
957, requiring subdivision owners to
provide roads, alleys, sidewalks and
resident open space for parks or
recreating use.
Empowering the NHA to issue writ of
execution in enforcement of its decisions
under P.D. 957
Property Registration Decree
Home Development Mutual Fund Law of 1980
Amending Sections 4 and 6 of R.A. 4726
(The Condominium Act)
The Real Estate Investment Trust (REIT) Act
of 2009

RA
9904

Magna Carta for Homeowners and

Homeowners Associations

HLURB Board Res. No. 890 Series of 2012

Revised Implementing Rules and Regulations to
Govern Section 18 of Republic Act No. 7279

HISTORICAL BACKGROUND
Task Force on Human Settlement
(TFHS)
Executive Order No. 419 (9/19/73)

Human Settlements Commission (HSC)

Presidential Decree No. 933 (5/13/76)

Human Settlements Regulatory Commission

(HSRC)
Presidential Decree No. 1396 (6/2/78)

Executive Order No. (2/07/81)

Reorganizing H S R C
transferred from the National Housing Authority:
regulates the sale of subdivision and condominium
Registration and issuance of LS to Subdivision Projects

Housing and Land Use Regulatory Board (HLURB)

Executive Order No. 90 (12/17/86)

*designated as the sole regulatory body for housing & land

development
*to encourage greater private sector participation in low cost housing
*liberalization of development standards, simplification of regulation

Vision...
A well planned and self-reliant communities
via
land and housing regulations

Mission...
To promulgate and enforce land use and
housing regulations which sustain a balance
among economic development
advancement, social justice and
environmental protection for the equitable
distribution and enjoyment of
developmental benefits.

P D #957:
THE SUBDIVISION &
CONDOMINUIM BUYERS
PROTECTIVE DECREE
Regulating the sale of subdivision
or subdivision lots &
condominiums, providing penalties
for violations thereof
Implementing arm:
Housing & Land Use Regulatory
Board
(HLURB)

REGISTRATION of PROJECTS
1.Name of owner
2.The location of the owners principal
business office
3.The names & address of all directors &
officers of the business firm
4.The general character of the business
actually transacted by the owner
5.A statement of the capitalization of the
owner

Attachment to Project
Registration
1.A copy of the subdivision or condominium plan
2.A copy of any circular, prospectus, brochure or
advertisement
3.A balance sheet showing all assets & liabilities
4.A title to the property, if free from all liens &
encumbrances

Document to be issued:
Certificate of Registration

LICENSE TO SELL
Must be secured within two weeks after
receipt of the CR
Certifies that:
Owners or dealer is of good repute
His business is financially stable
The proposed sale would not be fraudulent

SUSPENSION of the LICENSE TO

SELL
1. Any information filed by the owner or dealer
was misleading, incorrect, inadequate or
incomplete
2. The sale or offering of the sale may result in
a fraud upon prospective buyers

REVOCATION of CR & LICENSE TO

SELL
When the owner or dealer:
1. Becomes insolvent
2. Has violated any provisions of this Decree
3. Has been or is engaged or about to engage in
fraudulent transaction
4. Has made any misrepresentation of the project
5. Is of bad business repute
6. Does not conduct his business according to law or
sound principles

EXEMPTIONS
1. Sale of a subdivision lot resulting from the
partition of land among co-owners or coheirs
2. Sale or transfer of subdivision lot or a
condominium unit by the original buyer &
subsequent sale of the same property
3. Sale of subdivision lot or condominium unit
by the mortgagee to liquidate a bonafide
debt
4. Bulk buying (when sold as bought)

PERFORMANCE BOND

Amount: equivalent to the balance of the

value of the undeveloped portion of the
project
To guarantee the construction &
maintenance of the roads, gutters, drainage
& sewerage
Authorizes the HLURB to use the
performance bond to complete the project
development

SECTION 11:
REGISTRATION of DEALERS,
BROKERS & SALESMEN
No real estate dealer, broker or salesman shall
engage in the business of selling subdivision
lots or condominiums units unless he has
registered with the HLURB

REVOCATION of REGISTRATION
od DEALERS, BROKERS &
SALESMAN
Has violated any provision of this Decree
Has made a material false statement in his
application
Has been guilty of fraudulent act
Has demonstrated his unworthiness

MORTGAGE by DEVELOPER
Cannot be done by the developer without
prior approval by the HLURB
Can only be allowed by the HLURB if the
proceeds of the loan will be used for the
development of the project
An escrow account will be opened involving
HLURB and the developer

ADVERTISEMENT
Must reflect the real fact and must not be
misleading or deceiving
The owner or developer shall be answerable
and liable for those contained in all ad
materials

TIME COMPLETION
Within one year from the issuance of the
license to sell
NON-FORFEITURE OF PAYMENTS:
No installment payments by the buyers shall be
forfeited by the owner or developer or his
failure to finish the development within the time
frame required.

FAILURE TO PAY of
INSTALLMENTS
Covered by RA #6552 (The Maceda Law)
ISSUANCE OF TITLE:
Upon full payment
If mortgaged by developer, he should redeem
and deliver the title within six months

PROPERTY TAX
Shall be paid by the developer if title has not
been passed on to the buyer
However, if the buyer has already taken
possession of the property, property tax will
now be paid by the buyer.

OTHER PROVISIONS
ACCES TO PUBLIC OFFICES IN THE
SUBDIVISION:
No developer shall deny any person free access
to any public office located within the
subdivision or may be reached only through the
subdivision.
RIGHT OF WAY TO PUBLIC ROAD:
The developer must secure right of way access
to any existing public road.

ORGANIZATION OF
HOMEOWNERS ASSOCIATION:
Shall be initiated by the developer and
organized among the buyers & residents of the
project

DONATION OF THE ROADS & SPACES TO

THE LGU:
At the option of the developer
Once donation is accepted ,cannot be
converted for any other purpose

TAKE -OVER DEVELOPMENT

HLURB may be take-over & complete the

development of the project at owners
expense
If they refuse d or failed to develop and
complete the project.
After the take-over, HLURB may demand,
collect and receive installment payments
which shall then be used for the project.

PD #1216:
DEFINING REQUIRED OPEN
SPACE in RESIDENTIAL
SUBDIVISIONS
REQUIREMENT:
Developer must allocate 30% of the gross area
of any development project for open space.
OPEN SPACE:
An area reserved exclusively for parks, roads,
alleys, sidewalks, playgrounds, recreational
uses, centers, clubhouses and other similar
facilities & amenities

COVERAGE:
Project lot area of one hectare or more.
ALLOCATION FOR PARKS, PLAYGROUNDS &
RECREATIONAL USE

(must not be all 30% for roads)

LAND DENSITY (per hectare)

CATEGORY

ALLOCATION

66 to 100 family lots

High density or
socialized
housing

9.0%

21 to 65 family lots

Medium density
or economic
housing

7.0%

20 family lots or below

Low density or
open market
housing

3.5%

RA 7279:
THE URBAN DEVELOPMENT
&HOUSING ACT (UDHA) OF 1992
BALANCED HOUSING
DEVELOPMENT:
A
subdivision
or
condominium
developer must also develop the
equivalent of 20% of his project for
socialized housing.

EXEMPTIONS:
1. socialized housing project development
2. With four units or less

MODE OF COMPLIANCE:
1. 20% of the total land area
2. 20% of the total project cost

Mode of compliance
1. New settlements
2. Slum upgrading
3. Community Mortgage Program
(CMP)
4. Joint venture projects with NHA
5. Housing/Pabahay Bonds

OTHER PROVISIONS
CREDITS:
May develop in excess of the required 20% to
build up future credits to be used later
PROJECT LOCATION:
If no single land is feasible or available in the
locality, development of separate sites is
allowed.
TIME OF COMPLETION:
One year from issuance of the License to Sell.

Batas Pambansa Bilang 220 s.

1982
An act authorizing the HSRC (now HLURB) to
establish and promulgate different levels of
standards and technical requirements
for
Economic and Socialized Housing Projects in urban
and rural areas from those provided under
Presidential Decrees No. 957, 1216, 1096 and 1185.

Republic Act No. 7160 (Local

Government Code of 1991)

Under (Sec 447 & 458 (a)(2)(x). Subject to national

law, process and approved subdivision plans for
residential, commercial, or industrial purposes and
other developmental purposes, and collect
processing fees and other charges, the proceeds of
which shall accrue entirely to the municipality;
Provided however, that where approval of the
national agency or office is required, said approval
shall not be withheld more than thirty (30) days
from receipt of the application. Failure to act on
the application within the period stated above
shall be deemed an approval thereof.

Executive Order No. 71 s. 1993;

Devolution of HLURBs function to approve subdivision

plans to LGUs
Processing Approval for:
1. PALC / PSDP Preliminary Approval and Locational
Clearance/Preliminary Subd. Development Permit
2. Final Approval (FA) / Devt. Permit (DP)
3. Approval of Plan Alteration
4. Individual / Group Building Permit
5. Certificate of Occupancy

Hearing, evaluation and resolution of opposition against

the issuance of PALCs & DPs, and petitions to revoke
approvals, clearances and permits it has issued.
Monitoring of the nature and progress of land
developments and housing construction of projects whose
subdivision and building plans the LGU has approved.
Imposition of appropriate measures to enforce
compliance with terms and conditions of their approval
such as issuance of Notice of Violation, Show Cause
Order, Order of Imposition of Administrative Sanctions &
Cease Desist Order.

RETAINED FUNCTIONS(for HLURB):

Processing of Application for:

1) Certificate of Registration & License to Sell

2) Approval of Condominium Plan
3) Mortgage Clearance
4) Advertisement Approval
5) Reduction or Cancellation of PB
6) Issuance of Certificate of Completion

RETAINED FUNCTIONS:
General monitoring and Visitorial Powers to ensure and
enforce compliance with the provisions of PD No. 957 and
their implementing regulations, including the imposition
of administrative sanctions on all subdivision and
condominium projects that it has issued DP, Cr and/or LS;
Adjudication of all complaints filed pursuant to PD 957,
PD1216, PD1244, BP 220 and related laws

SUBDIVISION PROCESSING
FLOW CHART

P A L C (PSDP)

F A / DP
CR/LS
COC
Donation of
Roads
& Open Spaces

Alterations of Plan
Building Permit
Cert. of Occupancy
Ad Approval
ETD
Mortgage Clearance
Change of Name /
Ownership

SUBDIVISION PROJECT

a tract or parcel of land registered under Act. No.

496 which is partitioned primarily for residential
purposes into individual lots with or without
improvements thereon and offered to the public
for sale, in cash or in installment terms. It shall
include all residential, commercial, industrial and
recreational areas, as well as open spaces and
other community and public areas in the project.

Sale or Sell shall include every disposition, or

attempt to dispose, for valuable consideration, of
a subdivision lot, including the building and other
improvement thereof. It shall also include a
contract to sell, a contract purchase and sale, an
exchange, an attempt to sell, an option of sale or
purchase, a solicitation of a sale, or any offer to
sell, directly or by an agent, or by a circular,
letter, advertisement or otherwise.

Broker any person who, for commission or

other compensation, undertakes to sell or
negotiate the sale of a real estate belonging to
another.

Salesman (now salesperson as per

RESA)-a person regularly employed by a
broker to perform, for and in his behalf, any or
all the functions of a real estate broker.
Shell housea habitable dwelling unit
which unit met the minimum requirements for
a housing core with the following additional
components being included as part therefore:
a) all exterior walls enclose the unit,
b) openings for doors and windows,
c) plumbing fixtures,
d) electrical wiring within the unit and
e) Floor

.
Complete House :
A habitable dwelling unit which met the minimum
requirements for shell house with the following
additional components being included as part
thereof: all windows and doors and partition
wall for separating functional areas.

OPEN SPACE :
shall refer to areas allocated to the following
purposes:
Circulation
Parks/playground
Community Facilities
Other common
areas

Different Types of Subdivision Projects (Per HLURB)

Residential Subdivision
Under Pres. Decree No. 957
Open Market Housing
Medium Cost Housing
Under Batas Pambansa Bilang 220
Economic Housing
Socialized Housing

Price Ceilings pursuant to HUDCC Resolution

Socialized Housing
maximum of P 400,000.00

Low Cost Housing:

Level 1
above P 400,000.00 to 1,250,000
Level 2
P 1,250,000 to 3,000,000

OTHER TYPES OF SUBDIVISION

PROJECTS
Commercial Subdivision
Industrial Subdivision
Farm lot Subdivision
Memorial Park/Cemetery

SITE CRITERIA

Availability of basic needs

a. Water
b. Movement and Circulation
c. Storm Drainage
d. Solid & Liquid Waste Disposal
e. Parks / Playground
f. Power

Physical Suitability
Must have characteristics assuring healthful, safe
and environmentally sound community life
Accessibility
Site must be served by a road that is readily
accessible to public transportation lines


Design Parameters

Land Allocation:
Under PD 957 Subdivision Projects with an area
one (1) hectare or more:
Saleable area
=
max. of
70%
non-saleable area
=
min. of
30%

Under BP 220 Subdivision Projects:

no fix ratio for saleable and non-saleable
area

Parks and Playground

Area allocated for P/P shall be mandatory for
projects 1 ha. and above and shall be
strategically located
It shall be non-alienable and non-buildable for
community hall but buildable for basketball court.

Parks And Playgrounds Allocation

BP 220

PD 957
Density
20 & below

Parks & Playground Density

Parks & Playground
Allocation
Allocation
3.5%
150 & below 3.5%

21 25

4.0%

151 160

4.0%

26 35

5.0%

161 175

5.0%

36 50

6.0%

176 200

6.0%

51 65

7.0%

201 225

7.0%

Above 65

9.0%

Above 225

9.0%

COMMUNITY FACILITIES

Mandatory provision of areas for community

facilities such as: neighborhood multi-purpose
center for projects with area of one (1) hectare
and above which is non-saleable. However, the
developer may provide additional areas for
community facilities such as schools and
retail/commercial center in excess of the
mandatory requirement which shall be deemed
saleable. The use of the said area shall be
indicated in the plan and shall be annotated in
the title thereto.

Area allocated for CF shall be mandatory for projects 1 hectare and above shall be
strategically located and accessible where it can serve a maximum number of
population, preferably near or side by side with parks/playgrounds.
Community Facilities
Economic/Socialized Housing
Density
Allocation
(No. of lot/DU* (% of gross area
per hectare)
for CF**)

*Dwelling Units
**Community Facilities

150 and below

1.0%

151 225

1.5%

Above 255

2.0%

Road Right of Way for PD 957

Project Size

Open Market
Major

Medium Cost

Collector

Minor Major

Collector

Minor

2.5 & below

10

10

Above 2.5 5 has.

Above 5 10 has.
Above 10 15 has.
Above 15 30 has
Above 30 has

12
12
12
15
15

10
10
10
12
12

8
8
8
10
10

10
12
12
12
15

10
10
10
12

8
8
8
8
10

Road Right-of-Way for BP 220 (m.)

Project Size

Economic Housing

Socialized Housing

Major Collector Minor Major Collector Minor

2.5 & below

Above 2.5 5 has.
Above 5 10 has.
Above 10 15 has.
Above 15 30 has
Above 30 has

8
10
10
10
12
15

8
8
8
10

6.5
6.5
6.5
6.5
6.5
6.5

8
10
10
10
10
12

8
8
10

6.5
6.5
6.5
6.5
6.5
6.5


ROAD PAVEMENT

For PD 957
Open Market concrete for all types of Roads
Medium Cost concrete/asphalt for all types of
roads

For BP 220 concrete/asphalt for major and

minor
roads.


Interconnecting Road
Interior subdivision project owner/developer
must secure road right-of-way to connect to
the nearest public road with a minimum ROW
of 10 meters. This fact shall be annotated on
the title of said road lot and must be donated and
deemed turned over to the LGU upon completion
of the said interconnecting road.

PUBLIC ROAD A
SUBD 1

SUBD 2
INTERCONNECTIN
G ROAD
SUBD 3

SUBD 4

PUBLIC ROAD
B

Figure 1: Interconnecting Road

Figure 1: Interconnecting Road

Subdivision Project Setback Requirement:

Subdivision projects abutting main public road
must provide a setback of 3.00 meters deep by
5.00 meters length at both side of the
subdivision entrance to accommodate loading
and unloading of passengers.

5.0 M

3.0 M

5.0 M

ENTRY

3.0 M

MAIN PUBLIC ROAD

Figure 2. Setback Requirement along Main Public Road

Width of Planting Strips and Sidewalks

Road Width
(meter)

Planting Strip
(meter)

Sidewalk
(meter)

15.00

1.30

1.20

12.00

0.80

1.20

10.00

0.80

1.20

8.00
6.50

0.40
Optional

0.60
0.50

MINIMUM LOT AREAS

PD 957

Type of
Housing
Open
Market

BP 220

Medium
Cost

Economic

Socialized

Single
Detached

120 sq. m

100 sq. m

72 sq.m

64 sq.m

Duplex /SA

96 sq. m

80 sq.m

54 sq.m

48 sq.m

Rowhouse

60 sq. m

50 sq.m

36 sq. m

28 sq.m

FIREWALL

DWELLING
UNIT

PROVISION OF FIREWALL:
Mandatory provision
of firewall for duplexes/
single attached units
and at every unit for
row houses.

FIREWALL

DWELLING
UNIT

MINIMUM LOT FRONTAGE

Type of
Housing/Lot
Single Detached
a) Corner lot
b) Regular lot
c) irregular lot
d) interior lot
Duplex / SA
Row house

PD 957

Economic

Socialized

12
10m
6m
3m
8m
4m

8m
8m
4m
3m
6m
4m

8m
8m
4m
3m
6m
3.5m

Price of saleable lots intended for single detached units shall

not exceed 40% of the maximum selling price of the H/L
package.

Number of ROWHOUSE:

Shall not exceed 20 units per cluster but in case shall this be
beyond 100 meters in length.

Maximum Block Length :

Shall be 400 meters, however blocks exceeding 250 meters
shall be provided with a 2-meter alley approximately at midlength.

Shelter component MINIMUM FLOOR AREA

Types of
Housing Unit

PD957

BP 220

Open
Market

Medium
Cost

Economic

Socialized

Single Detached

42

30

22

18

Duplex/Attached

42

30

22

18

Rowhouse

42

30

22

18

MINIMUM LEVEL OF COMPLETION

Type of Housing

PD 957

BP 220
Economic

Single Detached
Duplex/SA
Rowhouse

Complete
House
(based
on
the
submitted
specifications)

Socialized

Complete
House Shell House (with
(based
on
the doors and windows
submitted
to enclose the unit)
specifications)

An approved Socialized Housing Project shall not be

upgraded to any other type of housing project.

SETBACK/YARD REQUIREMENT

The minimum setback of dwelling units

both for economic and socialized housing
project shall be as follows.
Front Setback

1.5 meters

Sideyard

1.5 m. (from bldg line)

Rear Yard

2.0 meters

WATER SYSTEM
Mandatory connection to appropriate
public water system provided that the
water supply is enough to meet the total
daily requirements of the anticipated
population.
If public water supply is not available,
developer shall provide for independent
water supply system within the
subdivision project.

ELECTRICAL POWER SUPPLY

Mandatory
connection

individual

household

Mandatory provision of street lighting

per pole if 50 meters distance: at every
other pole, if the distance is less than
50 meters.
Electric Bills for streetlights shall be
proportionally shouldered by the users
thereof prior to issuance of Certificate
of Completion and turnover of open
spaces to LGU.

DRAINAGE SYSTEM
The minimum drainage system for
economic and socialized housing shall
be concrete lined canal with load
bearing cover.
In case of non-existence of Drainage
System in the locality, catchment area
for
drainage
discharge
shall
be
provided for and development by the
owner/ developer in consultation with
the Local Government Unit.

DAR
DAR

PALC
(LGU)

DP/FA
(LGU)

VSR
(DENR/LMB)

ECC (DENR)

CERT. OF
TITLE
(ROD)

COC
Certificate of
Completion
(HLURB)

License to
Sell
(HLURB)

Registrati
on
(HLURB)

Flow Chart

Application for Subdivision Development Permit

1. All requirements for application for preliminary

subdivision development plan.
1.1) At least 2 sets of the Site Development Plan
(Schematic Plan) at a scale ranging from 1:200 to
1:2000 showing the proposed layout of streets,
lots, parks and playground and other features in
relation to existing conditions prepared, signed
and sealed by any licensed and registered
architect, environmental planner, civil engineer
or geodetic engineer.

1.2 One (1) set of the following documents

duly signed sealed by a licensed
geodetic Engineer:

a. Vicinity map indicating the adjoining land

uses, access as well as existing facilities
and utilities at least within 500 meters from
the property boundaries of the project,
drawn to any convenient scale.
b. Topographic Plan to include the following:

b.1) Boundary Lines: bearings, distances tie point

or reference point, geographic coordinates of
the tie point or Bureau of Land Locational
Monument (BLLM);

b.2) Streets, easements, width and elevation of

road right-of-way within the project and
adjacent subdivisions/ areas;

b.3) Utilities within the land adjacent to the

proposed subdivision project; location,
sizes and invert elevations of sanitary and
storm or combined sewers; location of gas
lines, fire hydrants, electric and telephone
poles and street lights, if any. If water
mains and sewers are not within or
adjacent to the subdivision, indicate the
direction and distance to and size of
nearest one, showing invert elevations of
sewers, if applicable.

b.4) Ground elevation of the subdivision; for

ground that slopes less than 2%, indicate
spot elevations at all breaks in grade,
along all drainage channels and at
selected points not more than 25 meters
apart in all directions: for ground that
slopes more than 2% either indicate
contours with an interval of not more than
0.5 meters if necessary due to irregular
land or need for more detailed preparation
of plans and construction drawings.

b.5)

Water courses, marshes, rock and

wooded areas, presence of preservable
trees in caliper diameter of 200
millimeters, houses, barns, shacks and
other significant features.

b.6) Proposed public improvements, highways

or other major improvements planned by
public authorities for future construction
within/ adjacent to the subdivision.

C. Survey Plan of the Lot(s) as prescribed in

TCT(s).


1.3) At least 2 copies of Certified True Copy of
Title(s) and Current Tax Receipt.
1.4) Right to use or deed of sale of right-ofway for access road and other utilities
when
applicable,
subject
to
just
compensation for private land.
2. Subdivision Development Plan consisting the
site development plan at any of the following
scales: 1:200; 1:1000; or any scale not
exceeding 1:2000 showing all the proposals.

3. Civil and Sanitary Works Design Engineering

plans/construction
drawings
based
on
applicable engineering code and design
criteria.
4. Water System layout and details duly signed
and
sealed by a licensed sanitary engineer or civil
engineer.
5. Certified true copy of Tax Declaration covering
the property(ies) subject of the application for
the year immediately preceding.

6.

Certified true Copy of Environmental

Compliance Certificate (ECC) or Certificate
of Non-coverage (CNC) duly issued by the
DENR, whichever is applicable.

7. Zoning certificate form HLURB Regional

Office.
8. Certified true copy of DAR Conversion Order.
9. Project description for projects having an
area of one (1) hectare and above.
10. Certification/ Permit electric power and
water
supply.

RA #6552: REALTY
INSTALLMENT BUYER
PROTECTION ACT
(The Maceda Law)

THE MACEDA LAW

An act to provide protection to buyers of real
estate on installment basis

DECLARED PUBLIC POLICY:

It is hereby declared a public policy to protect
buyers of real estate on installment payments
against onerous & oppressive conditions.

COVERAGE:
Sale or financing of real estate on installment
payments, including residential condominium
or apartments where the buyers has paid at
least two (2) years of installment.

EXCLUDED:
1. Industrial lots
2. Commercial building
3. Sale of tenants

In case more than two years of

installments were paid, rights of the
buyer in case of default in payment of
succeeding installments:
1. To pay, without additional interest, the
unpaid installments due within the grace
period earned which is one month grace
period for every year of installment
payments made.
2. However, this right shall be exercised by the
buyer only once every five (5) years of the
life of the contract & its extension(s).

3. If the contract is cancelled, the seller shall

refund the buyer the cash surrendered value of
the payments on the property equivalent to
50% of the total payments made.
4. After five (5) years of installments, 5% will be
added every year but not to exceed 90% of total
payments made.
5. The actual cancellation or the demand for
rescission of the contract is by notarial act &
only upon full payment of the cash surrendered
value to the buyer.

6. Down payments & option deposits shall be

included in the total installment payments
made.
THE MATHEMATICS:
% CSV

REMARKS

YEARS

50%

First 2 years

50%

Up to 5th year

After 5 years, add per

year:
90%

Maximum

Less: 50%

Earned after 5 years

40%

Can still be earned

40%/5% per year

Years to earn 40%

Total years to maximize

CSV

13

OTHER RIGHTS OF THE BUYER

1. Buyer shall have the right to sell his rights or
assign the same to another person. The deed of
sale or assignment shall be done by notarial act.
2. Buyer shall have the right to reinstate the contract
by updating the account during the grace period
or before actual cancellation of the contract.
3. Buyer shall have the right to pay in advance any
installment or the unpaid balance of the purchase
price (balloon payment) at any time without
interest.

Rights in case less than two years

of installment were paid:
1. Seller shall give buyer a grace period of not less
than sixty (60) days from the date the installment
became due.
2. If the buyer fails to pay the installment due at the
expiration of the grace period, the seller may
cancel the contract after thirty (30) days from
receipt of the buyer of the notice of cancellation or
the demand for rescission of the contract by
notarial act.

TOTAL GRACE PERIOD: Ninety (90) days

THANK YOU

GOOD LUCK TO
EVERYONE!!