COMMISSION PROPER

RESOLUTION NO. S - 02

APPROVING AND PROMULGATING THE RULES

AND REGULATIONS IMPLEMENTING the

DESIGN STANDARDS FOR FARMLOT SUBDIVISION

RESOLVED, as i t i s hereby r e s o l v e d that The Rules and

Regulations Implementing the D e s i g n Standards for Farmlot Sub-
division, attached h e r e t o as Annex''"A" and which forms p a r t thereof
be approved and promulgated as the same i s hereby approved and p r o -

RESOLVED FURTHER, as i t i s hereby f u r t h e r resolved t h a t the

Chiel Executive Officer of the Commission cause the publication
i n a newspaper of g e n e r a l c i r c u l a t i o n p u r s u a n t t o law.

Unanimouslyapprovedthis23rd day of December 1981 a t

Manila.
 Republic of the Philippines
Ministry of Human Settlements
HUMAN SETTLEMENTS REGULATORY COMMISSION
393 Goodwill Building, Buendia Ava. Ext *
Makati, Metro Manila

RULES AND REGULATIONS IMPLEMENTING FARMLOT

SUBDIVISION PLAN

Pursuant to Article IV, Serlitm 5, letters a,b, and c of Executive Order No. 648 the following
rules and regulations on farmlot subdivision are Hereby promulgated by the Human Settlements
Regulatory Commission to implement Presidential Decree Number 933,1396, 309, 815, Letters of
ofInstructionNumners729 and 713 and other related laws.

Rule I

PRELIMINARY APPROVAL OF DEVELOPMENT

OF FARMLOT SUBDIVISION PLAN

SFCTION 1 PRELIM1NARY APPROVAL OF FARMLOT SUBDIVISION PLAN.

1. Preliminary Approval tor projects located in cities or municipalities with a Land Use Plan
and/or a Zoning Ordinance shall not be required, Instead, documents for Approval of the
Final Subdivision Plan shall be submitted together with a Vicinity Map, as required in the
Preliminary Approval.

2, For projects located in cities or municipalities without a Land Use Plan and/or Zoning
Oidinance, a Preliminary Approval shall be required. However, the owner or developer of
a farmlot subdivision project shall apply with the Commission for conditional approval of
i the preliminary subdivision plan by submitting in duplicate the following:

a. Preliminary Subdivision Plan signed by a licensed Architect-Planner or Engineer-

1
Phnner at any of the following appropriate scales 1:2,000, 1:4,000 indicating the
layout of streets, lots and blocks and other features of the plan in relation to the
existing site conditions.

b. Vicinity Map in the scale 1:10,000 showing the relationship of the site to existing
land uses, community facilities or development which may directly or indirectly
influence it; main traffic arteries; land marks and other relevant features of the
community where the project Is located.

c. The conditional approval of the preliminary plan shall be valid for 180 days from
dale of approval. Within such period the proponent shall apply for the approval of
the final subdivision plan, and failure of proponent to apply within such period, pro-
ponent shall renew his application for preliminary approval with the Commission.

, Approval of preliminary farmlot subdivision plan shall be valid for a period of one hundred
eighty (180) days from date of approval.
 SECTION 2/APPLICATION FOR APPROVAL OF FINAL FARMLOT SUBDIVISION.
PLAN.

After the preliminary approval of the famtlot subdivision plan, the owner or developer shall
proceed with the preparation and submission to the Commission in triplicate of the following:

A. Final Subdivision Plan duiv signed by a licensed Architect-Planner or Engineer-Planner in The

scales of 1:2,000 or 1:4,00G indicating the following;

1. Street layout, right-of >"ay, alignments similar data foi alleys, ii any.

2. Other rights-of-way or casements: Alignments, width and purpose.

3. Location of utilities: Drainage system, possible sources of water supply and possible
sources of power, power distribution system if local power utility is available.

4. Lot lines, lot numbers lot areas, block numbers.

5, Site data: Number of farmlots, schedule o f dimensions and areas according to use classi-
fications, e.g. roads, park;,, playgrounds, common areas, water sources, saleable lots, u

B. Topographic Plan Showing Lxbting Site Conditions

1. Project boundary lines, bearings and distances.

2. Easements: Locations, widths, elevations, alignment, purposes.

3. Streets adjacent to the subdivision: Access, name, width, elevations, pjvin^/bui fdit~
material; any legally established center line elevations; walks, curbs, gutters, culverts, ttt,.

4. Utilities adjacent to the farmlot subdivision: Utility lines, roads/highways, raihu.i,*

tracks, towers, etc. If utilities are not adjacent to the subdi^wori, i i u k tc the d i i c t i t.
and distance to, and the invert elevation of nearest one.

5. Ground elevation: Spot elevations at all breaks in grade, along diainage channels an i ti
selected points (not more than 20 meters apart) including com* ni iint-j at m u «i-
sufficient for planning and detailed engineering design, *iuitl be i

6. Other conditions on the land: Water courses, marshes, rock outcrop, wooded a u a ^
isolated pieservable trees, houses, and other significant features.

C. Clearances From Other Agencies ,

1. Clearance from the Ministry of Agrarian Reform ab per PD No. 815 and LOI No. 71 *

2. Permit to drill well(s) and water permit from the National Watuj Resources Coui.ul
(NWRC).

f%t Financial Analysis, in-hutting taw land cost, development cost, marketing, operations am!
m other overhead costs, selling price, profit margin, amortisation periods, interest rates,
1 source(s) of funds, capital outlay, development phase.,;
 The final subdivision plan shall be essentially similar in layout and content as the preliminaiy
development plan.

SECTION 3. FINAL APPROVAL OF FARMLOT SUBDIVISION PLAN.

If the application for farmlot subdivision project is feasible and economically viable ami in
conformity to the general land use pattern and development plans of the government, and with tin;.
rules and regulations, the farmlot subdivision plan shall be approved and development permit sli it'
be issued upon payment of the prescribed fee and under such condition a> may U- imposed by i <o
Commission.

The owner or developer shall execute the necessary surveys of the project and submit mo
survey returns with technical descriptions and computations for verification and approval of the
Bureau of Lands in accordance with Section 50 of PD No. 1529 known as Property Registrar- i»
Decree. ^

A final approval shall be valid for a period of one (1) year from date of issue.

Rule II - ^

MINIMUM DESIGN STANDARDS

SECTION 4. CONFORMITY IQ LAND USE PLAN AND ZONING ORDINANCE

All farmlot subdivision shall conform with the approved Land Use Plan and Zoning Ordinance
of the locality having jurisdiction over the project site.

Farmlot subdivision shall Lu planned to provide a judicious balance of Urul use dtid j»i od d
out to complement and integrate v ith the larger community.

SECTION 5. VARIANCES. Vacations hot i these stands .Is maybe authorized by the Com
mission if deemed reasonable and not detiimental to the overall development of the subdivision ami
its surrounding areas and not self-created.

SLCTION 6. RESTRICTIONS and PROHIBITIONS. There shall be no further subdivision of

the minimum area of Seven Hundied Fifty (750) square meters into smaller lots, Btggci lots ma> tt-
subdivided into the minimum aiea &&) subject to clearance from the Human Settlements Rtgu
latory Commission. K

Dwelling units shall be of appropriate design to minimize suiface run-off.

SECTION 7. SITE CRITERIA. Farmlots subdivision shall conform to the following site
criteria:

A. Accessibility

The site must be accessible to transportation lines. Road, railroad facilities should add to the
site's proximity to market center and industries where farm produce maybe utilized.
A
B. Availability of Community Services and Utilities ~ *-

Basic utilities like roads and water sources must be found and readily available to adequately
serve the needs of the intended/prospective farm activities. Wheic available, subdivision dt d-
opment must include the pjuvwon of power lines to the farmlotb.

C. Distance from the Urban Cote ' /

Farmlot subdivisions must be away from the center of Metro Manila and/or in the fringes of
the urban core of the metropolis and of cities and municipalities. However, they shall also be
accessible from employment centers and population centers where the products of the f*trm-
lots tan be readily marketed.

D. Physical suitability of the stte varies with respect to the intended farm activities within the
subdivisions. Natural featuies considered for varied farm activities are slope, climate/temptu-
ture and types of soils. >,.

1» Crop Farms/Tree Farms

Generally, land capability classes A, B, C and D are suitable for crop farming at varying
degrees:

A, B — lands whose slopes range from 0 to 3%;

C — lands with slopes from 8 to 15%, all suitable for intensive cultivation;

D — lands with slopes from 3 to 8% and 15 to 25%, suitable t<>i limited culuvaii< •*.

2, Livestock and Poultry

Although limited to backyard scale, the following arc usHul basis ft>, pursuing Ir'es-i >» I
and poultry farming.

Land capability classes D, L and M are suitable for pasture and grazing. ' ' .

D — lands with slopes ranging from 3 to 8% and 15 to 25%;

L — lands with slopes ranging from 0 to 3%; _ , ,

M — lands with slopes from 40% and above. ~ \

For certain breeds ul livestock, lands with a maximum slope of 50% can be used lur
pasture. Water should be made available or accessible to these grazing areas.

Where natural drainage features are absent, drainage facilities must be provided toenbtiit
' - freedom fiom floodin

3. Fishpond/Ftshfarms * : ~ '

Level marshes, swamplands or tidal flats are best &iies for ponds. If the topography i*
undualtmg, a great deal of levelling ha* to be done entailing great expense. Suitability of
 an estuarine are*a for fishpond based on the water supply can be summarized as follows.

3.1 Sites with elevation from 0 to 1 meter make ideal elevation for fishpond because
they can be watered or drained even under ordinary tidal condition. Those at elec-
tions 0.30 to 1.5 meters are also suitable.

3.2 Areas at elevations 1.5 meters to 2 meters can be suitable only if they are excavate 1
while areas 0.3 to 0.6 meter below the surface dit suitable only il filled.

' ' 3.3 Areas above 2 meters are unsuitable because they cannot be watered. Area*. 0.6
meter or more below sea level are also unsuitable because they are always uiuief
water.

Further, excavation work removes the surface layer of the soil which are usually the
most fertile portion of thte pond bottom. Digging also inhibits growth o f r u t u t . i l
food. •*

4. Land Capability

Land capability class X with slope unge of 0 to 1% \b suitable for fishponds as well a* wJt
* bed sites. Clay loam, ;,andy clay or clay with rich deposits of organic matter is the best
soif for ponds. Hard mud of the above types are preferable to soft and very loose Kind.

5. Climate

Type one climate is suitable for fishpond, having two pronounced seasons that ii Uiy
from November to Apiil and wet during the rest of the year, with average temperaUue of
: 27°C, and average rainfall of about 241 cms.

6. Drainage . , ,P .

The pond site must be capable of drainage as often as desireJ, even undei ordinary tide
conditions. This is important because during certain periods or the y^ar, the ponds aie
* ', drained and dried to eradicate all fish enemies, and also to provide ease in working the
pond bottom.

Pond sites must be frue from periodic flooding since fish bcin^ cul.i < i j d ..an be w i : f i
away. However, flooding and its bad effects can be minimized if dikes aie so constiu-tcf
as not to obstruct the path of the river.

The use of the farmlot can be transformed from tree farm to livestock tarns, Ucpcit tit ,
on the adaptability, tupability and suitability of the laiul

SECTION 8. LAND ALLOCATION AND PLOT PLANNING. Land must be judicx n*,ly
allocated for the required uses and amenities for efficient functioning. All farmlots subdivisions
must have a minimum area of one (1) hectare. Blocks shall have a maximum length of 400 n.^icts
which shall utilize a minor road for access. However, an alley may be used as access in blocks it :.
'than 400 meters long.
A. Common Areas refer to ruud feature specification and for community facilities (Tables ?
and 2).

8. Site Alteration/Preservation

1. Slope - The natural slope of the land shall be preserved. Where grading and ditching fa
necessary, these shall fufiow the natural drainage or countour and shall be protected by
grass, stone or concrete (ill.

2. Preservation of Site Assets must conform with the existing laws, rules and regulations
governing environmental protection.

3. Suildable Area - Each farmfot shall have a minimum area of Seven Hundred Fifty (750)
square meters. Minimum fiontage shaH be fifteen (15) meters with an access road, fhe
maximum butldable area shall pot exceed twenty-five (25/o) pen.ent of the total u i
area. ft \

Common Areas shall conform with the standard set forth in Tables 1 and 2.

. SECTION 9. COMMUNITY UTILITIES.

1
A. Water Supply System

1. Water supply for farm lot subdivision shall be connected to an approved public or <> t
munity water supply system whenever practicable. When other sources shall be utih I
a certification from the appropriate water authority must be secured tor the availabiiuy
and locations of the watu sources. L

I 2. If communal wells shall be utilized these shall be located strategically for ease and um-
vemence. Said communal wells are subject to laws, rules and regulations of appropn ae
government agencies.

Quantity Requirements

The average daily consumption of water for domestic di.d dgtiuutural t^cs are as lojlc

1. 40 liteis per person

2. 132 liters per milk-productng cow (J5 pjllons/cow)

3. 190 liters per cow (SO gallons per cow); this includes water for washing, drinking and
staff's quarter

4. 8 to 19 liters per 100 birds (2 to 5 gallons per 100 birds)

B. Sewerage Disposal System

In areas where communit) sewerage system ts not availat le, sewerage shall be disposed of in
individual septic tank which shall be designed to confonn to the standards of the National
Building Code and its location shall be governed by the Sanitation Code.
.."•'• Garbage Disposal. - Trash/garbage/rubbish shall be disposed of only through sanitary meth-
ods, e.g., composting landfill, etc., by individual lot owners.

c. DRAINAGE •• . • • - • , •• -\^{':",.." . ; ; V V - . :". ; .>>

. : The minimum drainage requirement of a farmlot subdivision is open canal which shall confoim
with the natural drainage characteristics of the subdivision site, ... .v - •.. V .

.;V These canals shall be built along the roads and constructed of suitable materials to prevent
erosion of the sides and bottom, e.g., compacted gravel, concrete slabs tor the bottom, imd
bricks, stone or concrete hollow blocks (grouted with cement) lor the sides. These canals •J.Ml
also run with a certain slope to ensure free flow of water and prevent stagnation.

:
D. POWER '--1':A:~\, '" . . -•:•'>, ' • ''?••'•'_

Power source and connection and other design standard shall conform with the provisions of
the Electric Code.

1. Wiring System
... ' - -T. . . : '
2. Street lighting

3. Utility poles . • f . - . • % ! ' • ; - ; - • > •

ROAD FEATURE SPECIFICATIONS J

'::'••- '".•;' • ' ' ; ' " . v l ;

r - • " " " • ; :
- " ' ' " . TABLE I

Maximum Number Minimum Minimum

Type • ; Minimum Percent of Carriage- Sidewalk
ROWM Grade (%) Lanei way (m) Width (m) (mi
? :
Major Road .'.'' i& 7 2 6.0 : .V' : \ii-ix2

:
Minor Road 8 7 2 6.0 - :^ , 0.60x2 varu

Alley ...•••;-..:. 3 7 1 >;*!

F. REQUIRED SITES FOR COMMUNITY FACILITIES IN A FARMLOT SUBDIVISION

: ;J
\ / , - \ ' - ••' '•• ' '"'•.,.. " • .. T A B L E 2 • - - . . , • . " ' • . '-•:.

: :?
Number of Lots or Families and " Recomtruu k
Area Requirement for Each Facility (St|. Meter) Walking btv
Facilities 100- 200- 400- 600 and tanca frofu
24-49 bO-99 139 399 S>39 «uer Farthest t.oi
(Km.!

••%'-\ Park and play-

ground 100 200 400 700 1200 1500

Neighborhood/
multi-purpose
center SO 75 100 150 200 200
 Number of tots or Families and Recommended
Art'a Requirement for Each Facility (Sq. Meier) Walking Dts
Facilities 100- 200- 400- 600 and tdnce tram
24-49 50-99 199 399 599 over Farthest Lot
(Km.)

3. Service Center 100 150 200 250 300 1.6

4. Health Center/
Clinic 50 75 100 160 200 200 1.5

5. Community
Siore/Taltpapa 100 100 200

6. Drugstore 50 50 * 50 50 50 100 0.5

7. Site for reli-

gious use 100 1.6

8. Elementary
School 5000 08

9. High School 5000

Total Area 300 500 800 1350 2000 12600

G. ALLOWABLE USES AND AREA REQUIREMENTS

Recent developments in small scale farming encourage the multiple, or bt n c i , the uii^gML. t
approach to farming in viev <jf maximizing land use. Examples of combination of activities ar*.'
swine-fish-chicken combination, bwrne-biogas fish-crops, fruit tues legumen-fish, etc,

- 1» Crop farming: no limitation

— tree oops ' i

!
— mixed orchard "

— diversified crops

2. Poultry larms. will be limited to backyard scale, i.e., max. of 500 birdi per lot; 0.19 st| <n.
per bird.

3. For swine: will be limited to backyard scale, i.e., max. of 10 sows per lot; 3 sq.m. per
hog. i „,

4. For aqua culture (e.g., carp, tilapia, eel, etc.): no limitation

5. For livelihood: backyard scale, such as.

 5.1 miking cow: max. of 5 cows; 12 sq.m. for 4 to S cows

5.2 cattle fattening, max, of 5 cows; 8 sq.m. per cow

5.3 goat raising: max. oi 10 goats; 6 sq.m. per goat (for shelter or quarters only)

6. Vermiculture. largely depends on scale of production, innuli> may need 20 sq.m.

7. Agro-industrial activitu *; limited to backyard scale, e.g.

7.1 rice mill: max. oi *00 square niters at a distance not lc>* than 1,000 meters from
another mill

7.2 food processmg/jMeservation: shall be within the buiidable area

8. Cottage industries: limited to backyard scale, e.g.:

8.1 handicrafts: shall be within the buildable area

8.2 ceramics: shall be within the buildable area

9. Others, or any combination of the above.

Rule III

REGISTRATION AND LICENSING OI« FARMLOT SUBDIVISION PROJECTS

SECTION 10 APPLICATION FOR REGISTRATION. The ownoi or the real estate ih. • i
interested in the idle of lots (iann) in a Farmlot subdivision project, shall re^i u the ptoj^u ihh
the Commission by filing a sworn registration statement containing the luliw'wng intoimatii ••.

a. Name of the owner and dealer;

b. Name, location and an a of farmlot subdivision projects;

c. The location of the owner's and dealer's principal business office, and if the owner s> 4
non-resident Filipino, the name and address of his agent or lepresentative in the PhsU,'
pines authorized to receive notice;

d. The names and addresses of all directors and officers of the business firm, if the o\sn> t
and/or dealer is a corpuiation, association, trust or oiiu'r uitity, Jn*l ol all the {Uittu. >,
if it is a partnership;

e. The general character **1 the business actually transacts d by the owner, and

f. A statement of the capitalization of the owner, including the authorized and outstanding
amount of its. capital sioiA and the proportion thereof which 15 paid up. ^

The following documents shJl be attached to the registration staumuit.

d. Copy oi 1 ransfer Ceriihcate of Title in the name of the applicant if none was submuu d
/ , in application for plan approval;
 b. Approved farmlot subdivision plan as verified by the Bureau of Lands;

c. Articles of Incorporation or Articles of Partnership or Association as the case may be,

with all the amendments thereof and existing by-laws or instruments corresponding
thereto and a copy ol latest annual corporate report to the Securities and Exchanr*
Commission, including a copy of the latest financial statements showing the amount i u i
general character of its assets and liabilities certified by a certified public accountant;'

d. Affidavit of the owner that the property is free from liens and encumbrances, except l«->, it
easements and restrictions. In case the farmlot subdivision project or portion thereu! n
mortgaged, there is an undertaking by the mortgagee to release the mortgage on <uty
farmlot as soon as the lull purchase price for the same is paid by the buyer;

e. A copy of the contract of management or development, if the management an#>r

development will be undertaken by a person other than the owner;

f. A copy of any circular, prospectus, brochure, advertisement, letter or communications

to be used to the public offering of the farmlot subdivisions; and

• g. Copy of form contract to be used in the sale of farmlots.

" SECTION 11. CERTIFICATE OF REGIS! RATION. Upon finding that the project ma, b,
registered in accordance with tliu provisions of these Rules the Commission shall cause to be pub
Itshcd once, at the expense of ilie applicant a notice of the tiling of the registration statement ht
two (2) newspapers of general cm illations, one published in English ami <.iiuihi'i MI Filipino, iect.* ^
that a re^istraiion statement toi ;in: sale of farmlot subdivision has been Hied v.ith itu • oiiimi »
and that the afousaid registialiun statement as well as the papers attached t n u c t u , aic optn IL
inspection during business hour* by interested parties.

After completion of the publication and upon submission of the affidavit of publications, the
Commission shall in the absence of any impediment, issue a Certificate of Registration upon pay
ment of the prescribed fees.

SECTION 12. LICENSE JO SELL. No owner or dealer shall sell any disposable subdivision
farmiol in the registered project without a license to sell issued by the CornmU&iun.

Upon proper application tiierefor, submission of the required work program, performance
bond and payment of the presuibcd license fee by the owner or dealer, the t.ominission shall ISMK
to him a license to sell the lot in the project or portion thereof covered by the performance bond ii
the Commission is convinced that he is of good repute, his business is financially stable, ami uit-
pro posed sale of the farmlot subdivision lot to the public is not fraudulent.

SECTION 13. PERFORMANCE BOND. I he performance bund lequiitd in these Rules may
be in any of the following forms:

a. If found to be financially able to complete the project, a surety bond amountin tn

twenty percent (20%) of the development cost issued by a dut> .u credited not > t
company and acceptable to the Commission. It shall contain a wljutc stating ai.u*,) ,
others that it shall remain tn full force and effect unless it is ordered canceled or release !
by the Commission. , ,-*
. ./ The application shall be accompanied by the following: v ^ ^ - ^ ^sf- V

' .'>-".,.• a. A p p r o v e d F a r m l o t Subdivision p l a n ; : ^ , ^ ^ -••••..'•' ••/

;..,,- b. Latest financial statements showing the amount and general character of his assets and :..
> . •.'• •-,•••' _. liabilities; : '-• •- .: •. *

'•••: c. In case of a business firm, a copy of its articles of incorporation or articles of partnership , .,
;../;- or association, as the case may be, with ail the amendments thereof and existing bylaws
\.;= ""*,-•, or instrument correspomJing thereto; : . : •

_•....--, ;. d. Fact sheet containing the material information on the operations of the projects to :
;•'-."'•.,'.:.r.;;•'• include the number of the lots sold, not yet fully paid, accounts receivable the extent/
. V status of land development and the cost of complete development; . .-. _

e. Certified true copy of title and Uj< declaration to the property; : , "•-

•:, ',-.',f. If the property is mortgaged, the mortgage contract and status of mortgage loan certified
> ?' v-': by the mortgagee; , '

r ;,s g- Copy of any form contract, circular, prospectus, brochure, advertisement, Ittter or
,/ ;- communication used oi to bo used for the public offering of the farmlot subdivision Uiu; -•

.•.•;• h. If the facilities, improvements, and other forms of development cannot be completed
within one (1) year from the registration thereof, a detailed program of development
v:: indicating the improvements to be constructed, provided for and their corresponding
:/ v v r development cost and time frame of construction and completion; ..._.,.. ., , . _.

:. •• i. Certification from the appropriate government agency that there is ao adequate supply
;•-•.;. of water. • ,,>•-.- -,, _ ,-.• • ; : S ._ ( . - ^ - . v ( • .,-":--;

If the owner or developer of a farmlot subdivision project cannot complete compliance v,iih
his obligations within one (1) year from the registration thereof he shall file an adequate perform-, :"
•"."• ance bond in accordance with Section 13, (c), hereof. , . • . - • , : *'•"••,

If the application for registiation is found to be in order the Commission shall register the
1
project and issue a Certificate of Registration to the owner or dealer upon the payment of the
, registration fee.

. , . ,• Thereafter the owner or dealer shall apply with the Commission for a license to sell by fih.-v;j. ,
sworn application in triplicate containing the following information:

v. a. Name and address of the owner and dealer; . . ; , . / ^ -;- "••."....

1
: b. Name and location of project; and , r • .- • .,; :

. V. •'•--. c. Certificate of Registration number of the project. "*'; .,>-.//. -• ;; v ;^: -i t;1 • ' . . ' ",.'..

Whenever the Commission finds that the owner or dealer is of good repute, has complied wiia
/pertinent orders, rules and regulations of the Commission, his business is financially stable, the.
 b. Certificate of guaranty of any bank or financing institution of good standing in favor ui
the Commission. s

c. Projects approved prior to the promul, ation of Executive Order No. 648, in case the pro-
ponent has been found financially unable to develop the project, a cash bond equivalent
to fifty per cent (50% ) of the development cost which may be in the form of:

1. Fiduciary deposit made with cashier and/or disbursing officer of the Commission,

2. A certificate of guaianty deposit issued by any bank or financing institution of good

standing in favor of the Commission;

3. A letter from any bank of recognized standing certifying that so much has been set
aside from the bank account of the applicant in favor of the Commission which
amount may be withdrawn by the Chief Executive Officer of the Commission o*
by his duly authorized representative, at any time the principal fails or refuses to
comply with his duties and obligations under the bond contract, or

4. Any irrevocable credit line to be utilized in the development of the project from any
bank of recogm/ed standing and a refinancing or financial re-structunng proijrwi
, indicating soutct^ of funding from duly accredit* d runJin \ institi n<»ns

After the issuance of licence to sell the Commission finds, that the performance bond i? os
for any cause, has become worthless, inadequate or insufficient, the ownei or dealu aflti ' n
notice, shall be required to give an additional performance bond to be posted within u n i !U) ,.
from receipt of such notice, othct wise, the license shall be suspt.idcJ orievokeU.

When the owner or dealer desires to have his bond cancelled, released, or replaced he shall ill*
an application in writing with the Commission stating therein his reasons. The bond filed m<iv »«.
cancelled or released when the undertaking under it has been complied with.

SECTION 14. EXISTING FARMLOT SUBDIVISION PUOjLCrS. The owner or deal., u

an existing farrnlot subdivision project shall register the projt'vt with the Commission within <h
year from publication ot these Rules by filing a sworn registrati n, statement tn uiplnaie conui* n
the following information.

a. Name of the owner and dealer, * ^

b. Name, location and aiea of projects,

c. Location of ihe own r's and dealer's, principal offue, *J ii i! ihe o wirr i* m^n rest .W
I'lltpttuj, ihe iidtne an 1 address of his agent or representative in tin Pnihjipin.. .it iho. i •*
to receive notice,

d. Names and addresses oi all the direct ^ and officei of the business firm, if the owner/
dealer is a corporation, association, iiust or other entity, and oi all partners, if it is a
partnership;

e. General character of the business actually transacted hy the owner;

f. Statement of the capitalization of the owner, including the authorized and outstanding
i amount of its capital stock and the proportion thereof which is paid-up.
proposed sate of the farmlots to the public is not fraudulent, and he has conducted his business in
accordance with law and sound business principles, a license to sell as to the disposable lot in the
project shall be issued to the owner or dealer upon payment of the prescribed license fee.

Rule IV

REGISTRATION OF REAL ESTATE DEALERS, BROKERS AND SALESMEN

SECTION 15. REGISTRAIION OF REAL ESTATE DEALERS, BROKLkS AND SAU S

MEN. Real Estate dealers, brokeis and salesmen engaged in the sale of residential subdivision lots
and/or condominium units, likewise engaged in the sale of farmlots are exempt from registering
anew with the Commission if and when they have already re^stered. However, those who slut!
engage in the sale or farmlots only, shall be required to register with the Commission lollo*in{ t
same procedure set forth in Rule IV of the Rule* implementing P.P. 95 /.

SECTION 16. CERTIFICATE OF REGISTRATION. Whenever the Commission shall in U

that the applicant is of good repute and has filed the required bond, he shall icgister the at>pUi-int
and issue to him a Certificate o( Registration, upon the payment of the prescribed registration M .

The Certificate of Registration shall expire on the thirty-first day of December of each ye«tr,
provided further, that the Certificate of Registration issued for the current year 1981 shaft ex^iu
on the 31st day of December 1981.

The Certificate of Registration of salesman shall be cancelled upon the termination oi ui;
employment with a dealer or broker. The dealei or broker shall notify in writing the CommibSioi. oi
such termination, otherwise he .shall be liable Tor acts comnuttfd by the jmL-sman prior to t u
receipt of the notification by tin Commission, (he salesman shall bUireu.ki u> the Commission lot
cancellation of hi* Certificate ol Registration within fifteen (15) days from the date his empi jy-
ment is terminated.

SECTION 17. BONDS. Itu Bond required under these Rules may be either a cash or a
surety bond issued by a duly accredited bonding company. 1 he bond shall contain a clause stating
among others that it shall reirui i in full iorce and effect unless it t* *> n k ' l utu tiled or release . >
the Commission. I he bond snail ot* executed in favor of the Human Stitli u\s ii* .iefc JI Ui-iy <
mission conditioned upon the faithful and honest discharge by the applicant, as well as the *<ite&n a (
working under a broker or dcah i, of their duties and shall further provide that upon failuie t( <i,
charge those duties, the applicant shall De liable . n the bond i , .uy md all paeons who may sin it i
loss by reason oi such failure, (he amount of the bond shall be \ ive fhouwnd Pesos (P5,000.uo)
for Dealer/Broker and One Thousand Pesos (PI ,000.00) for Salesmen. These bonds shall no loagot
be required if equivalent bond a set-unties have already been posted by applicants for the saint.
purpose with othci government agencies pursuant to law.

A dealer, broker or salesman may apply in writing with the Commission ioi the cancellation
and release of his bond stating tin-rnn his reasons In appropriate cases the Commission may requne
the applicant to cause the publication of a notii-e therefor at the latter's expense in a newspapn
of goneial circulation stating, among others, the fact of such application, fhe proof of publicdiioh
shall be submitted to the Comt.iibsion. Any person, having any datih for money oi property agan^i
the dealer, broker or salesman in his real estate service or practice, must file his claim with we
Commission within fifteen (15) days from the date of publication. If the reason for the cancellation
of the bond is his cessation from further engaging in business of selling farmlot subdivision lot-* (.M
condominium units) the dealer, broker or salesman shall surrender his certificate of registration to
the Commission and his name shall be cancelled from the Register of Uealers, Brokers and Salesmen.

Rule V

MISCELLANEOUS PROVISIONS

SECIION 18. DEFINITION OF TERMS.

a. Executive Order — shall mc4n Executive Order No. 64d entitled "RLOKGANIZING I ME
HUMAN S E I f L E M i N I S KEGULAIORY COMMISSION.

b. Commission —shall mean the Human Settlements Regulatory Commission,

c. Existing Farmlot Subdivision Projects — shall refer to farmlot subdivision piojecb ap-
proved by the city/municipal .government or Bureau of Lands/Land Registration I oi.i-
mission/courts which is not'fully dfveloped/constiucted or there are still unsold sw>
division lots as of June 1978.

d. A Farmlot Subdivision — is a planned community intended primarily for intensive agrl-

cultuial activities, and secondarily for housing. A planned community consists of the
provision for basic utilities, judicious allocation of areas, good layout based on »ouml
planning principles.

e. Agricultural Lands - ur farm lands on the other hand, ate parcels of land ranging from
0.2 to 50 or more hectares (NCSO( MAR) are exclusively or piedomhuntly ust\l l\tf
cultivation, livestock production and agro-forestry without the intended V|uahtie& u\ tU:
farmlot subdivision.

it Feasible — when location is in conformity to the land use plan of the community, and the
physical features of itic land can be developed without hazard to the environment at a
.. reasonable development cost.

g. Economically Viable Net income derived from a Sevi'n I lundred I ifty (750) t,q. n\ I 4
model of varied farm activities yields production or positive NU.UHK-

h. Buildable Area — the maximum area allowed for structures attendant to apiculiun!
activities.

1. - Surface run-off — (tain/storm) Accumulated water or ground surface when *»,nl is u.! ! \£
to absorb the water due to pavement, e.g., concrete, asphalt.

SECTION 19. SUBMISSION OF SEMESTRAL REPORIS ON OPERATIONS. Eveiy CMWI.I

or dealer of a registered fram lot subdivision project shall submit to the Commisson semi-<u»M, il
reports on operations showing the extent/status of land development, changes in corporate olit - 1 *
or managers and their address within sixty (60) days after the end of each semester. Copa> A
corporate reports to the Secunties and Exchange Commission shall also bn funiisht-d to the » u •

SECTION 20. DISPLAN OF CLRTIFtCATE OF REGISTRATION AND LICENSI

^ , The certification of registration and I icense to Soil u.jtd by the Commission sh<ui !>
displayed in a conspicious place in the principal office of the owner, dealer, broker or salesman, as
the case may be and a xerox copy thereof in all its branches and offices.

SECTION 2 1 . LOST OR DESTROYED CERTIFICATE OF REGISTRATION OR UO-NSF.

TO SELL. Upon loss or destruction of a certificate of registration or license to seli a duplicate copy
thereof may be issued by the Commission after satisfactory pioof of such loss or destruction, dt\d
payment of the prescribed fee. The fact that such duplicate has been issued shall be made of recoui.

SECTION 22. ADVERTISEMENT. Advertisement through punt or bio.tJcast media ,>>r

cerntng sale of farmlot subdivision lots shall be cleared with the Commission pursuant to thii rule.
Advertisements shall contain, among others, the license number to sell farmlot subdivision projects
as approved by the Commission.

SECTION 23. EXTENSION OF I I M E FOR COMPLETION. Request for vxten.km of uj

to complete development of a I arm lot subdivision project may be granted only in cases where mm-
completion of project is caused by fortuitous events, legal orders or force majeure and with d
written notice to lot buyers without prejudice to the exercise of their rights pursuant to Settu-u - f ,
hereof.

The request for extension of time for completion shall be accompanied by a revised wuif-
program lor a peiiod of one ye.ir with project costing and find! Ling scheme tnweior. In appropiuK
cases the Commission may require the posting of additional performance bond not exceeding t i t l ,
percent of development cost, cancell the license to sell, if any, or issue such orders it may dcn»i
proper.

SECTION 24. MORTGAGES. Mortgage of any lot by the owner or developer shall be cleared
with the Commission,

SECTION ?S. REALTY , A X AND OTIIER CHARGE S. No realty u w v ^ e s i em or

charges shall b<j imposed on a iut buyer. However, if the buyei h<is actually takui po,*L.ssi m os .it. J
occupied the farmlot subdivUio i lot he shall be liable to the owner or developer for such UK m I
assessment effective the year following such taking or possess it i and occupancy. *

SECTION 26. COMPLAINTS AGAINST OWNERS, DEVELOPERS, D I A L E R S , BROKERS

AND SALESMEN. Cornplaim . or pioceedings against owners, developers, dealers, brokers ami
salesmen shall be resolved in accordance with the Rules of Procedure to Govern the Conduct of
Hearings Before the Commission.

SECTION 27. TRANSFi R OF OWNERSHIP OR CHANGE OF NAME. Request for tr*,, i i

of ownership dnd/or change oi name may be granted only if there is a deed of absolute sale ovu tins
farmlot subdivision project sought to be transferred and/or me name t i u n o f changed wills <di
undertaking on the part of the transferee to assume full responsibility for the completion oi He
development thereof.

Such request for transfei of ownership or change of name shall be published at applicant's
expense at least once in a newspaper of general circulation within the u t y ui municipality wtsctU
the project is located.

SECTION 28. ALTERATION OF PLANS. Requests for alteration of residential subdiw U n

to farmlot may be granted it the requirements of Section 2, Rule i o\ th«. m l , and uguUtu f -
>farmlot subdivision are complied with.
 SECTION 29. NON-FORfLITURE OF PAYMENTS. No installment payment made b) A
buyer in a new or existing farn.lot subdivision project for the lot he contutu-.i to buy siui '»i
forfeited in favoi of the ownet or developer when the buyer, after due notice to the owntr oj
developer and clearance from me Commission desists from further payment due to the failure >>!
the owner or developer to develop the project according to the approved plans and within the tmu.
limit ior complying with the same. Such buyer s uy at his option be teimbursed the total amount
paid including amortization iniuests but excluding delinquency interests, with interest thereon at
the legal i ate.

SECTION 30. REGISTRA1ION OF CONVEYANCES. Sales or conveyances of the farmlot

subdivision shall be registered within 180 days from execution thereof by the seller with the KO^K
ter of Deeds of the province on city where the property is situated. Except as may otherwise be
provided for by law the Commission may in apptopriate cases cause the Register of Deeds to cancel
registration, entries or annotations on titles made on this regard.

SECTION 3 1 . ADMINISTRATIVE *FINES.

•f

a. Any owner or dealer who sells any farmlot subdivision project within the period pie
, " scribed under these rules and regulations shall be penalized by a fine of five Mundietf
Pesos (P500.00) per day of delay but not exceeding Ten 1 housand Pesos (PI0,000.(Hi),
as provided under Section 11 of Executive Order No. 648.

b. Any owner or dealer who sells any farmlot subdivision witnout a Vdlid license trun n
Commission to sell SULII farmlot (or unit) shall be penalized by a lino of not mure i . w
Ten Thousand Pesos (P1G,000.00).

c. Any salesman, broker or dealer who engaged in the business of selling farmlot subdivi • H
lots without a valid certificate of registration from tue f.ummibsiui) j i a l l be pu.a!i/< t >-
a fine not more than Ten Thousand Pesos (PIO,000.00).

SECTION 32. CRIMINAL PENALTIES. Any person violating any provisions of these Knles
and Regulations upon conviction, shall suffer the penalties provided for under Section 12 ot E.^ >. u
tive Order No. 648.

These shall not preclude impositon of administrative itnts and such other
sanctions as the Commission may impose pursuant to Section 1 I oi Executive OuJor No. 648.

SECTION 33. IDENTIFICATION OF FARMLOT SUBJECT OP SALE. l"he owner or d i a u i

of a farmlot subdivision project shall attach to <nd which shdli fomi p«urt of the sale document of
any farmlot, a sketch plan c!e*iily showing the area, boundaries d\\d dimensions of the farmlot if
relation with the block and tht //hole project, as well as the location of the project in relation wun
public roads and other land mai ks, to be certified by a licensed gi wdi tic engineer and signed b\ tn*
seller and buyer.

SECTION 34. BROKER/;, U E S M A N AS WITNESSES TO SALES. The broker or

who negotiated the sale of a taiuilot subdivision shall act as one of the witnesses to the sales ih
rnent with an indication of his ( ertiricate of I .limitation nunnni HK\ renewal date. If the sale
directly made by the owner or dealer, that iact must be so stated in the sales document.

SECTION 35. FEES. Thi Commission shall collect the following fees to be paid upon sub-
mission ol complete documents for application:
A. Approval of'Development Plan

1. Preliminary Processing Fee - P50.00 and additional P5.00 for every hectare or fuu uui
thereof in excess of live (5) hectares.

% Final Processing Fee ~ P150.00 per hectare or any fraction thereof.

3. Alteration of Plans Fee — Alteration fees shall cover only the affuted portions s i tin;
subdivision, prorated against the fees for the totat area

B. Registration and License to Sell of Farmlot Subdivision - P5.00 per saleable lot and additional
fees as follows;

P50.00 for Certificate of Registration

P50.00 for License to Sell Certificate

SECTION 36. AUTHORITY FOR'THE ISSUANCE OF SUPPLEMENTAL DIRECTIVE OR

MEMORANDA. Authority is hereby given to the Chief Executive Officer of the Commission to
issue supplemental directives or memoranda implementing or interpreting and consistent with trut
provisions hereof.

SECTION 37. APPLICABILITY. These Rules shall apply only to farmlot subdivision. Devel-
opment of an existing farmlot subdivision shall be governed h> u^ IUNI^M sUnJditl* and ret, i .
ments set forth by the appropruio government agens-y obtaining at the time of iib 4p^.i at

SECTION 38. SEPARABILITY CLAUSE. The provisions of these Rules are hereby dechu-i
separable, and in the event ol su i provisions an. declared invalid, the validity of all other piovi* ,.*
shall not be affected thereby.

SECTION 39. EFFECTIVITY. These Rules and Regulations shall take effect immedutH\
after its publication once (1). . week for two (2) consecutive weeks in any newspaper of general
circulation.

Promulgated this 28 December 1981, at Makati, Metro Manila.

APPROVED: * ' *'