CONTEMPORARY

TECHNICAL KNOWLEDGE
IN HOUSING
DEVELOPMENT
AND

CONDOMINIUM
TECHNICAL ASPECT
DEVELOPMENT
COVERAGE OF EXAMINATION FOR REAL ESTATE BROKER

1. GENERAL/FUNDAMENTALS

2. SPECIAL & TECHNICAL KNOWLEDGE

a. Subdvision Development
b. Condominium Development
c. Real Estate Finance and Economics
d. Basic Principle of Ecology

3. PROFESSIONAL PRACTICE
1st- RELEVANCE & IMPORTANCE OF THIS TOPIC

1. To Practitioners - as real estate practitioners

2. To Prospective Property Developers/Land
Owners
3. To Individual – Citizen, Buyer & Home/Unit
Owners
 PROJECT CONCEPTS
HOUSING DEVELOPMENT - a residential area of
similar dwellings built by property developers and
usually under a single management
1 CONDOMINIUM PROJECT - shall mean the entire parcel of
real property divided or to be divided primarily for residential
purposes into condominium units, including all structures
thereon (Sec.2-e,PD 957)

2 SUBDIVISION DEVELOPMENT – shall mean a tract or a 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.

PARAMETERS
DEVELOPMENT TYPE
GOVERNING LAWS
TITLE OF THE LAW
CURICULUM REQUIREMENT
DEVELOPMENT CONCEPT
DEVELOPMENT REQUIREMENTS
LICENSES
DEVELOPMENT PERIOD
START OF SELLING
OPEN SPACE REQUIREMENT
BUYER
PROOF OF OWNERSHIP
BUYERS' ASSOCIATION
ASSOCIATION DUES
ADVANTAGES
SUBDIVISION &
CONDOMINIUM
DEVELOPMENT
COMPARISON
SUBDIVISION DEVELOPMENT
HORIZONTAL DEVELOPMENT
PD 957 & BP 220
"BUYER'S PROTECTIVE DECREE"
"AN ACT TO DEFINE CONDOMINIUM, ESTABLISH
3-UNITS OR 54 HOURS CLASS LECTURES
INTEREST IN REAL PROPERTY & ABSOLUTE
ABSOLUTE OWNERSHIP
DEVELOPMENT PERMIT & LICENSE TO SELL
3-YEARS
UPON ISSUANCE OF L T S
30%
FILIPINO/FORMER FILIPINO CITIZENS
TRANSFER CERTIFICATTE OF TITLE
HOMEOWNERS ASSOCIATION
HOA DUES
Absolute Property Ownership
Spacious Yards
Selection of Architectural Designs
Lower Association Dues
Improvement Opportunity
Life of Condo is Co-Terminus with the Life
Perpetual Occupation
CONDOMINIUM DEVELOPMENT
VERTICAL DEVELOPMENT
RA 4726/Amended by RA 7899
"CONDOMINIUM ACT"
REQUIREMENTS FOR ITS CREATION, & GOVERN
ITS INCIDENTS"
3-UNITS OR 54 HOURS CLASS LECTURES
OWNNERSHIP ON UNIT
DEVELOPMENT PERMIT & LICENSE TO SELL
3-YEARS
PRE-SELLING IS ALLOWED
30%
FILIPINO/FOREIGHNER
CONDOMINIUM CERTIFICATE OF TITLE
CONDOMINIUM CORP.
CONDOMINIUM DUES & REALTY TAXES
Enhances Affordability
Accessibility to the amenities of the
Metropolis
Maximize Land Efficiency
Lesser Cost of Facilities, Services &
Maintenance
Better Security/Privacy
of Corporation/Soundness of structure
STRUCTURES AND TITLE CERT.

FILLAND PROPERTIES MARKETING CORP. 7

 GOVERNING LAWS & AGENCY
LAWS TITLE
Subdivision & Condominium Buyer's
P.D. 957 & IRR Protective Act
BP 220 & ITS IRR Economic & Socialized Housing
PD 1216 Open Space Requirement
R.A. 7279 Urban Development & Housing Act(RA 10884)
R.A. 4796 The Condominium Act
P.D. 1096 National Building Code of the Philippines
R.A. 7160 Local Government Code
R.A. 9904 Magna Carta for Homeowner's Association
 SUMMARY OF LAWS - LAND MANAGEMENT

LAW DATE TITLE OF THE LAW

APPROVED

CLASSIFY AND USAGE REGULATIONS

RA 7160 October 10, 1991 LOCAL GOVERNMENT CODE OF THE PHILIPPINES

PD 957 July 12, 1976 SUBDIVISION & CONDOMINIUM BUYER'S PROTECTIVE DECREE
RA 4726 June 18, 1966 CONDOMIUM ACT
MINIMUM DESIGN REQUIREMENTS FOR SOCIALIZED AND ECONOMIC
BP 220 March 25, 1982 HOUSING
RA 7279 March 24, 1992 URBAN DEVELOPMENT AND HOUSING ACT (UDHA)
PD 1517 June 11, 1978 URBAN LAND REFORM ACT

PD 1096 February 19, 1976 NATIONAL BUILDING CODE OF THE PHILIPPINES

PD 1185 August 26, 1977 FIRE CODE OF THE PHILIPPINES
RA 8749 June, 1999 CLEAN AIR ACT OF 1999
RA 9904 January 07, 2010 MAGNA CARTA FOR HOMEOWNERS

PD 1586 June 11, 1978 ESTABLISHING ENVIRONMENTAL IMPACT STATEMENT SYSTEM ( 1978)
RA 6657 June 10, 1988 COMPREHENSIVE AGRARAIN REFORM PROGRAM
RA 9700 August 07, 2009 AMENDMENT TO CARP-EXTENSION OF CARP
 ACQUISITION, DISPOSITION, REGISTRATION, OWNERSHIP
RA 6657 June 10, 1988 COMPREHENSIVE AGRARAIN REFORM PROGRAM

RA 9700 August 07, 2009 AMENDMENT TO CARP-EXTENSION OF CARP

November 07,
CA 141 1936 PUBLIC LAND ACT 0F 1936
RA 386 June 18, 1949 CIVIL CODE OF THE PHILIPPINES
BATAS BILANG
68 May 01, 1980 CORPORATION CODE OF 1980
RA 8791 May 23, 2000 GENERAL BANKING LAW
PD 1529 June 11, 1978 PROPERTY REGISTRATIO DECREE OF 1978

RA 9225 August 29, 2003 CTITIZENSHIP RETENTION & RE-ACQUISITION ACT OF 2003

RA 10023 March 09, 2010 FREE PATENT LAW - FOR RESIDENTIAL LANDS

EXECUTIVE ORDERS/CIRCULARS
EO 71 March 23, 1993 DEVOLVED SOME FUNCTIONS OF HLURB TO LGU

E0 72 March 25, 1993 PROVIDING FOR THE PREPARATION & IMPLEMENTATION OF CLUP
AUTHORIZING LGU TO RECLASSIFY AGRICULTURAL LAND INTO NON-
MC 54 June 08, 1993 AGRICULTURAL USES
September 08, Establishing Priorities & Procedures in Evaluating Areas for Proposed
EO 124 1993 Conversion
 The
Condominium Act
An act to define
condominium,
T I T L E

Establish requirements for its

creation,

And govern its incidents.

..as amended by RA 7899
Approved June 18, 1966
Condominium Concept of Ownership
Section 2.

A condominium is an interest in real

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

The condominium is not a type of structure

but rather, a concept of development and of
ownership!!
Condominium Concept of Ownership
Section 3.
Condominium Project – shall mean the entire parcel of real
property divided or to be divided primarily for residential,
commercial or industrial purposes into condominium units,
including all structures thereon. (P.D. 957).

Condominium Unit – the space bounded by

the interior surface of those intended for
independent use or absolute ownership.

Common Areas – the entire project, such as the land,

building structures, hallways, elevators, stairways,
electrical, water and plumbing system, and all amenities &
appurtenances in a condominium project, the exception is
the inside of the individual condominium unit.
Condominium Concept of Ownership
Section 3.
Common Areas ;
GENERAL Common Areas – these refer to the parts of
the condominium project COMMON AREAS which are
not subject to the exclusive use of the anyone or
group of owners - e.g. swimming pool, lobby,
hallways...

LIMITED Common Areas – COMMON AREAS

which are allocated to the exclusive COMMON
AREAS use of one or group of unit owners...
 STEPS IN CONDOMIZING
1. Preparation of Building Plan
2. Execution of Master Deed with declaration of
restriction, and registration thereof with the Registry
of Deeds
3. Organization of Condominium Corporation
4. Execution of deed of conveyance to transfer the title
of the land and common areas to the corporation
5. Submission of building plan to assessor’s office to
obtain tax declaration of the condominium units,
land, amenities, machineries, and common areas
6. Application of registration and license to sell with
the DHSUD
7. Preparation of individual CCT on individual units and
common area by the Register of Deeds.
 INCIDENTS OF THE CONDOMINIUM GRANTS

1. The boundaries of the unit granted are the interior spaces of the perimeter walls,
floors, ceilings, windows & doors.
2. The following are NOT part of the unit:
 load bearing walls, columns, floors, roofs & foundations
 lobbies, hallways & stairways
 Elevator equipment & shafts
 Central heating & air conditioning equipment
 Reservoirs, tanks & pumps
 Pipes, ducts, flues, chutes, conduits & wires except outlets located in the unit
3. The common areas shall be held in common by the unit owners
4. A non-exclusive easement for ingress, egress & support through the common areas
5. Each condominium unit owner shall have the exclusive right to paint, repaint, tile,
wax or refinish & decorate the inner surface of the unit
6. Each unit owner shall have the exclusive right to mortgage, pledge or encumber his
condominium unit & to have the same appraised independently of other units
7. Each condominium owner also has the absolute right to sell or dispose of his unit
unless the master deed contains a requirement that the property be first offered to
other condominium owners within a reasonable period of time before the same is
offered to outside parties
 MASTER DEED
This is the ENABLING ACT of any condominium project which
ENABLES the project to exist and governs its existence
This should be registered with the RD of the province or the city & shall
contain the following:
1. Description of the land
2. Description of the building(s), stating the number of storeys, the
number of units & their accessories
3. Description of the common areas & facilities
4. Statement of the exact nature of the acquired units & the common
areas of the condominium project.
5. A certificate of the registered owner of the property as well as other
registered holders of any lien or encumbrance with their consent to
the registration of the deed
6. The following shall be appended to the deed as an integral part
thereof:
 a survey plan of the land
 A diagramatic floor plan of the building(s), each unit, its relative
location & approximate dimensions
 A reasonable restriction not contrary to law, morals or public
policy regarding the right of any condominium owner to alienate
or dispose of his condominium
 DEED OF RESTRICTIONS
DECLARATION OF RESTRICTIONS – refers to the set of rules,
procedures, policies and limitations as to the management and
usage of units and common areas in a condominium project
which constitutes a lien upon the project and each unit and
building upon all unit owners, occupants, and others holding
any right or interest in the project, pursuant to the provisions
of the Condominium Act and other related laws.

CONTENT OF DEED OF RESTRICTIONS:

* Procedures and guidelines on maintenance of units and common areas.
* Rules and restrictions on the occupancy and usage of units and common areas.
* Provision for insurance coverage.
* Realty taxes and assessments on units and common areas.
* Rights of assignees, mortgagees, tenants and occupants of the units.
* Provision for assessments and fees.
* Penalty provisions.
* Procedures in amending restrictions.
 CARTICLES OF INCORPORATION & BY-LAWS
- it establishes the birth and guidelines of the
condominium corporation

CONDOMINIUM CORPORATION
 Must be formed and registered with the SEC
 Will hold the title to the land and all common areas
 All holders of separate interests (unit owners) are automatically
shareholders
 Individual shareholding is equal to:
(Floor area of unit/Total gross saleable area)(100%)

 Membership in the condominium corporation shall not be transferable

separately from the condominium unit of which it is an appurtenance
 When a shareholder ceases to own the unit, he shall automatically cease
to also be a shareholder of the condominium corporation
 Creation of Condominium Corporation is OPTIONAL.
 Act as the Management Body
 Any provision in conflict with the Master Deed, the provision of the later
shall prevail
 ...other condominium documents
1. RULES and REGULATIONS
- determines what unit owners and tenants can do
and cannot do
2. CONDOMINIUM CERTIFICATE OF TITLE (CCT)
- evidence or proof of one’s ownership of the
condominium unit..
3. TAX DECLARATION
- reflects the property classification, the market
value (for taxation purposes), the assessment value
of the land, all improvements, and of the
condominium units
4. CERTIFICATE OF MANAGEMENT
- issued by corporation that the conveyance is in
accordance with the Master Deed and/or
Restrictions
 TECHNICAL DESCRIPTIONS

Unit 2501 – Condominium Unit 2501 located at

the 25th Floor of the UMRS TOWERs, a 4-BR
residential unit, with an area of 187.43 sqm.
more or less and an undivided interest of
83.73sqm of the limited common areas on
the twenty fifth (25th) floor of the UMRS
TOWERs.

Unit No. Floor Type Area Project Name

2501 25th 4-BR 187.43 sqm. UMRS Towers
T&B T&B
 GCA
TCT or CCT

TCT or CCT

TCT or CCT

TCT or CCT LCA

Chapel
 CONDOMINIUM

FILLAND PROPERTIES MARKETING CORP. 24

UNIT UNIT
UNIT UNIT
UNIT UNIT
 Basis of Interest under a Condominium
Form of Ownership
INDIVIDUAL SHAREHOLDING
What Is the Extent of Ownership in a Condo Project?
Since homeowners possess only the specific dwelling (or
dwellings) they purchased in a condominium project, they do
not hold the title for the land where the building stands,
neither do they hold exclusive ownership to the
condominium’s common areas. Instead, individual unit owners
are shareholders of the condominium corporation. One unit is
equal to one share.

Say you buy one unit into a 100-unit condo project and all
units are of equal size and value, there are 99 other
shareholders into the condominium corporation all of whom
more or less have the same stake and voting power as you do.
 Basis of Interest under a Condominium
Form of Ownership
EXTEND OF INTEREST IN COMMON AREAS
1. In the absence of any provision in the MASTER
DEED, all unit owners shall have EQUAL SHARES
in the COMMON AREAS

2. The MASTER DEED may provide any of the

following alternatives:
a. Equal Sharing
b. Sharing based on VALUE
c. Sharing based on UNIT Area in relation to
Total Aaea
 Basis of Interest under a Condominium
Form of Ownership

Example: Summary of Areas

Net Saleable Area (NSA) 45,500 sqm (70%)
Undivided Common Area (UCA) 19,500 sqm (30%)
Gross Floor Area(GFA) 65,000 sqm (100%)

UCA Breakdown:
Limited Common Area 7,250 sqm
General Common Area 12,250 sqm
19,500 sqm (UCA)
 Basis of Interest under a Condominium
Form of Ownership
Computation of Unit Interest:
FOR 25TH FLOOR:
Unit No. PH 2501 Total Floor Common Area (TFCA) = 348.71
sq.m.
Area: 203.41 sqm Total Floor Area (TFA) = 1,162.38 sqm

A. Find Interest in Total Project Common Area or Condo Corp:

Formula: Unit area / NSA X 100 = % of interest in CA
203.41 sqm / 45,500 X 100 = 0.44706923 %

B. Find for Share in Undivided Common Area @ 25th Floor:

Formula: Unit Area / TFA X TFCA = UCA
203.41 /1,162.38 X 348.71 = 61.02 sqm
ADVANTAGES & DISADVANTAGES
ADVANTAGES:
1. Enhances affordability – vertical projects means more units and
space, but lesser land area requirement.
2. Wider market for it can be sold to foreigners – subject to
limitations
3. Accessibility convenience
4. Easy to maintain

DISADVANTAGES:
5. No room for expansion, unless acquire adjacent unit/s
6. To many restrictions
7. Monthly dues are higher that subdivision & other property
8. EXTENT OF OWNERSHIP – in traditional ownership, the
interest of the owner over the property is inside and outside
the structure (absolute ownership), while in condominium
concept, the ownership is absolute in the inside and
common ownership in all other areas including the land
RIGHT OF UNIT OWNER
1. Absolute ownership of his unit and co-ownership of common areas
2. Right to sell, lease, or mortgage his exclusive unit
3. Right to participate and vote in meetings of condominium
corporation
4. Right to repair, repaint, decorate the interior portion of his unit
5. Exclusive easement the space of his unit and non-exclusive
easement on common areas.

OBLIGATION OF THE UNIT OWNER

1. Pay realty tax of his unit
2. Share realty tax on land and common areas
3. Pay condominium dues and other assessment
4. Share in the insurance of common areas
5. Comply with the restrictions of the condominium project
6. Give right of first refusal to the condominium corporation or
unit owners in case of sale (if it is required by master deed)
 TRANSFER or CONVEYANCE of the TITLE
• Any transfer or conveyance of the unit shall
include the transfer & conveyance of the
undivided interest in the common areas
• The transfer also includes the undivided
interest in the shareholdings in the
condominium corporation
• No condominium unit shall convey or transfer
to persons other than Filipino citizens or
corporations at least 60% of the capital stock
of which belongs to Filipino citizens
 No transfer or conveyance to foreigners will
be valid if this will cause to exceed total
foreign ownership to exceed 40%

THE TITLE:
The Condominium Certificate of Title (CCT)
 This will be on top of the new TCT covering the land
which shall now be in the name of the condominium
corporation
 Unit owner will receive a “Condominium
Owner’s Copy” (COC)
When unit owners can sell the entire project :
1. After three years of damage on the project,
it has not been repaired or rebuilt
2. Damage of destruction has rendered one-
half or more of the units untenantable & at
least 30% of all unit owners are opposed to
repair or restoration
3. The project has been in existence for over
50 years is obsolete & uneconomic, and
more than 50% of all unit owners are
opposed to repair, restoration, remodelling
or modernizing the project
4. The project or a material part thereof has
been condemned or expropriated, it is no
longer viable or 70% of the unit owners are
opposed to the continuation of the
condominium regime thereafter

DISPOSITION OF COMMON AREAS:

The condominium corporation shall not sell,
exchange, lease or dispose of the common
areas without the affirmative vote of “simple
majority” of the unit owners.
...as amended by RA 7899
 ...as amended by RA 7899
“Sec. 4”. "The enabling or master deed may be amended or revoked upon
registration of an instrument executed by a simple majority of the registered
owners of the property: provided, that in a condominium project exclusively for
either residential or commercial, use, simple majority shall be on a per unit of
ownership basis and that in the case of mixed use, simple majority shall be on a
floor area of ownership basis: provided, further, that prior notifications to all
registered owners are done: and provided finally, that any amendment or
revocation already decided by a simple majority of all registered owners shall be
submitted to the Housing and Land Use Regulatory Board and the city/municipal
engineer for approval before it can be registered. Until Registration of a
revocation, the provisions of this Act shall continue to apply to such property."

"Sec. 16. A condominium corporation shall not, during its existence, sell,
exchange, lease, or otherwise dispose of the common areas owned or held by
it in the condominium project unless authorized by the affirmative vote of a
simple majority of the registered owners: provided, that prior notifications
to all registered owners are done: and provided further, that the
condominium corporation may expand or integrate the project with another
upon the affirmative vote of a simple majority of the registered owners,
subject only to the final approval of the Housing and Land Use Regulatory
Board."
LIFE OF THE CONDOMINIUM
CORPORATION:
Co-terminus with the duration of the
condominium project, the provisions of the
corporation law notwithstanding.
Although the law does not explicitly say that a
condominium has a lifespan of only 50 years.
Consider Section 8c:
“That project has been in existence in excess of
50 years; that it is obsolete and uneconomical,
and that condominium owners holding in
aggregate more than 50 percent interest in the
common areas are opposed to repair or
 SUBDIVISION DEVELOPMENT
Subdivision Lot (Sec.2.e, PD 957) – any of the
lots, whether residential, commercial, industrial, or
recreational in a “SUBDIVISION PROJECT).

LAND DEVELOPMENT refers to altering the landscape in any number of

ways such as: changing landforms from a natural or semi-natural state
for a purpose such as agriculture or housing

…….Also, conversion of RAWLAND into a site that will

be suitable for other intended land use.
 …SUBDIVISION DEVELOPMENT
Type of Subdivision
Simple Subdivision- a partition of one lot without
any street or open spaces.

Complex Subdivision – a partition of a parcel of land

with open spaces and road ways. Type of this complex
subdivision is the subdivision development plan
wherein road and open spaces are reflected as per
PD 957,BP 220 & PD 1216. DENR DAO No. 2007-29, Cir
No. 2010-13 (Regulation & Manual Land Survey)
Comparative Characteristics:
a. Simple Subdivision:
a.1 No road delineation
a.2 With or without development
a.3 Provision of open space is optional
a.4 Less than an hectare

b. Complex Subdivision:
b.1. Road/passageway delineated
b.2. Development is compulsory
b.3. Open spaces compulsory (for 1 ha. And up)
 SAMPLE OF
LOT
SUBDIVISION

COMPLEX
SIMPLE
SUBDIVISION
SUBDIVISION
Subdivision Projects (Sec.2.d, PD 957)– as defined
in PD 957, is a tract of land registered under Land
Registration Act 496 (now PD 1529-Property Registration
Decree) which is partitioned primarily for residential
purpose into individual lots, with or without
improvements thereon, and offered for sale to the public
in cash or installment. This shall include commercial,
recreational & open space areas.
Type of Subdivision Project
• Residential Subdivision Projects
•Commercial Subdivision (under HLURB Rule No. 21)
•Leisure Farms & Beach Lots
•Industrial
•Cemetery
4th-STEPS – SUBD/CONDO DEVELOPMENT
1 2 3 4
FEASIBILITY
CERTIFICA
LAND STUDY PLANNING,
ENGINEERIN TE OF &
PERMITS
RESOURCES CONCEP
REGISTRATIO
LICENSES
TUALIZATION G DESIGN
BUSS.PLAN N & LTS

3rd

7 6 5
LAND MARKETIN
INSPECTION & DEVELOPMENT G
TURN OVER & HOUSING ADVERTISING
CONSTRUCTIO SELLING
N
 FORMULA IN COMPUTING SELLING PRICE
For 10 Hectares Subdivision Development Project
Saleable Area = 10X10,000X70% = 70,000.00 sq.m. (7.0 Has)
A. PROPERTY ACQUISITION COST
B. PRELIMINARY , FEASIBILITY, CONCEPTUALIZATION COST
C. OPERATIONAL COST
D. MARKETING COST
PROMOTION
BROKER/AGENT COMMISSION
SELING COST
E. IMPLEMENTATION COST
PERMITS & LICENSES
LAND DEVELOPMENT COST
HOUSING & AMENITIES CONSTRUCTION COST
F. OVERHEAD – MISCELLANEOUS
G. PROFIT MARGIN COST
THUS, A+B+C+D+E+F+G = TOTAL DEVELOPMENT COST (TDC)
SELLING PRICE = TDC / 70,000 = PHP OF LOT PER SQ.M.
 PRICE CEILING OF HOUSING CLASSIFICATION
HLURB CLASSIFICATION PRICE CEILING
BASIS OF PRICE CEILING
PER BP 220 & PD 957 ((Php)

A. SOCIALIZED HOUSING

580,000 and
Horizontal Development HLURB MC No. 968, S.2018,
below

750,000 and
Vertical Development HLURB MC No. 968, S. 2018
below

above 580,000 to Dep. Order No.2022-003-S.2022

B. ECONOMIC HOUSING
2,500,000

C.
MEDIUM COST
HOUSING

D. OPEN MARKET above 4.0 Millions

 Financing & Payment Scheme
Type of Financing Sources
Internal – In House Financing
External – Pag-IBIG, Bank, other Lending Institutions
Type of Financing Scheme or Mode of Payment
Cash Payment – Full Downpayment or Entire TCP
Deferred Cash
Installment
Formula & Sequence of Payments
Cash Payment – Full Downpayment or Entire TCP
Full Downpayment + Balance of Payment (BOP) = TCP
Full Payment of Entire TCP = TCP
Deferred Cash
Monthly Amort X No. of Years to Pay = TCP ( 0% Interest)
Installment
Downpayment+Misc.(Equity)+ BOP = TCP
 Requirement for Housing Loan
Buyer’s Eligibility
Internal – In House Financing
Capacity to Pay – Proofs
Legal Capacity
External – Pag-IBIG, Bank, other Lending Institutions
Capacity to Pay – Proof of Payment
Legal Capacity
Membership Contribution
Loan to Value Ratio – COLLATERIZED HOUSING LOAN

Monthly Amortization = 30% - 40% of Net Disposable

Income
STEP 3 - Engineering Designs & Plans-Detailing
• Land Development
Engineering Plans (road right-of-way, drainage,
water lines & Source, electricity)
Open Space & Facility Areas PLANS & ANALYSIS MUST BY
Perimeter Fences / Retaining Wall SIGNED AND SEALED BY
CONCERNED
• Housing PROFESSIONALS, to wit;

Complete Set of Plan 1. Civil Engineer

Quantity Take-Off & Costing
• Amenities and Facilities
Entrance Gate
Clubhouses
Swimming Pool
Playing Court & Children Playground
2. Architect
3. Structural Engineer
4. Environmental Planner
5. Electrical Engineer
6. Sanitary Engineer
7. Mechanical Engineer
8. Geodetic Engineer
9. Landscape Architect
Legal Basis of Standard Design Requirement References
SUBDIVISION/CONDOMINIUM PLANS:
I R R of P.D. 957 & 220
CLUP & Zoning Ordinances of Concerned City/Municipality
PD 1216 – Open Space Requirement
R.A. 7279 – Urban Development & Housing Act – Balance Housing

STRUCTURAL ANALISYS
P.D.. 1096 - National Building Code
National Structural Code of the Philippines
PHILVOCS
DENR – Hazard Maps

SANITATION
P.D. 856 – Sanitation Code of the Philippines

FIRE PROTECTION
R.A. 9514 – Fire Code of the Philippines
Electrical Code of the Philippines

ENVIRONMENTAL PROTECTION
PD 1586, Clean Air Act (RA 8749), Clean Water Act (RA9275
70%
30%
 Standard Design Requirement References
•PD 1216 - Open Space Requirement – 30% of the Total
Developable Area is for open space (roads, alley, sidewalks).
Out of 30%, portion of it shall be devoted for Parks
& Playground as proportioned below;

* 9% of gross area for high density or social housing (66 to

100 family lot per gross hectare).
* 7% of gross area for medium-density or economic housing
(21 to 65 family lot per gross hectare).
* 3.5 % of gross area low-density or open market housing (20
family lots and below per gross hectare).
SUBDIVISION PLANNING - PROJECT LAND ALLOCATION

LAND ALLOCATION COMPUTATION

SALEABLE AREA : 70 % OF TOTAL DEVELOPABLE AREA
OPEN SPACE : 30 % OF TOTAL DEVELOPABLE AREA
DENSITY COMPUTATION
DENSITY UNIT/NO. OF LOT CUTS / TOTAL DEVELOPABLE AREA
DENSITY = 1,517 / 42.030250 = 36.09 lots / Hec

THUS, PARKS & PLAYGROUND AREA IS 7%

7% OF THE
TOTAL DEVELOPABLE AREA – AS PER PD 1216
PLANNING AND DESIGN STANDARDS FOR RESIDENTIAL SUBDIVISION PROJECT
IRR PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220
OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED
PARAMETER HOUSING HOUSING HOUSING HOUSING
PROJECT LOCATION Within suitable sites for housing and outside potential hazard prone and protection area
LAND ALLOCATION- projects 1.0 Hectare and above
a Saleable Area 70 % (maximum) VARIABLE
SEE OPEN SPACE REQUIREMENT
b Non-Saleable Area 30% (Minimum) AS PER b.1., b.2, & b.3
Mandatory allocation for parks & playgrounds per tabulation below
Area for PARKS & Density Percentage of Density Percentage of
PLAYGROUNDS - (No.of Lots or Dwelling Percentage of Gross (No.of Lots or Dwelling Percentage of Gross
b.1 Unit Gross Area Area Allocated for Parks Unit Gross Area Area Allocated for Parks
project 1.0 hectare & Allocated for Per & Playground Allocated for Per & Playground
above Hectare) Hectare)
20 % below 3.50% 150 below 3.50%
21-25 4.00% 151-160 4.00%
26-35 5.00% 161-175 5.00%
36-50 6.00% 176-200 6.00%
AMENDED BY PD 1216
51-65 7.00% 201-225 7.00%
(refer
Above 65 to previous slid)
9.00% Above 225 9.00%
An addition of 1% incrrement for every 10 or
fraction thereof above 225
In no case shall an area allocated for parks and playground be less than 100 sq.m.
And the same shall be strategically located within the subdivision
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

Mandatory provision of areas for community facilities such as

Neighborhood multi-purpose center for housing projects with area
1.0 hectares and above. These areas are NON-SALEABLE. However,
Area Allocated for
b the developer may provide areas for community facilities such as
. COMMUNITY
2 schools and commercial centers in excess of the mandatory
FACILITIES
requirement set forth in this rule which shall be deemed saleable.
the use shall be be indicated in the plan and ANNOTATED in the
title thereto. Refer to Table -1 (PD 957) or Table-2 (BP 220).
Table 2. Facilities According to the Number of Saleable Lots/
Dwelling Units for Subdivision Projects I hectare and Above
Table 4. Road Right-of-Way
Figure 2: SETBACK REQUIREMENTS ALONG MAIN PUBLIC ROAD
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

MINIMUM LOT AREA

a Single Detached 120 sqm 100 sqm 72 sqm 64 sqm
b Duplex/Single Attached 96 sqm 80 sqm 54 sqm 48 sqm
c Rowhouses 60 sqm 50 sqm 36 sqm 28 sqm
Saleable lots designated as duplex and/or rowhouse lots shall be provided
with housing components
Price of saleable lots intended for single-detached units shall not 40% pf
maximum selling price or house and lot package.
MINIMUM LOT FRONTAGE (FRONT SIDE WIDTH)
4.1 Single Detached
a Corner Lot 12.0 m 8.0 m 8.0 m
Regular Lot 10.0 m 8.0 m 8.0 m
Irregular Lot 6.0 m 4.0 m 4.0 m
Interior Lot 3.0 m 3.0 m 3.0 m
4.2 Single Attached/Duplex 8.0 m 6.0 m 6.0 m
4.3 Rowhouses 4.0 m 4.0m 3.5 m
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

SHELTER COMPONENTS
14.1 MINIMUM FLOOR AREA
a. Single Detached 42 sqm 30 sqm 22 sqm 18 sqm
Duplex/Single
b.
Attached 42 sqm 30 sqm 22 sqm 18 sqm
c. Rowhouse 42 sqm 30 sqm 22 sqm 18 sqm
14.2 MINIMUM LEVEL OF COMPLETION
a Single Detached
b
Duplex/Single Complete house - based on the Complete house - based on the
Attached submitted specifications submitted specifications
c Rowhouse
14.3 SETBACKS/EASEMENTS
a Front 1.5 m
Shall conform to the provisions of the
b Side National Building Code of Philippines 1.5 m (from the building line)
(PD 1096)
c Rear 2.0 m from the building line
may be allowed per requirement of
d Abutments NBCP (PD 1096)
TECHNICAL DESCRIPTION AND SPECIFICATIONS
SUBDIVISION SPECIFICATION

ROAD RIGHT OF WAY

TECHNICAL DESCRIPTION AND SPECIFICATIONS
SUBDIVISION SPECIFICATION

TYPE OF COURT
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

WATER SUPPLY
Mandatory connection to
appropriate public water system,
centralized water supply system.
Provided further that a spare
Each subdivision shall have at
pump and motor set is reserved.
least an operational deep well
Water supply shall be potable
and pump sets with sufficient
and adequate
capacity to provide Average
Daily Demand (ADD) to all
homeowners

Minimum Water
a.
Supply Requirement 150 liters per capita per day for household connection

b.
Fire Protection Provision for fire protection shall comply with the requirements of
Demand the Fire Code of the Philippines
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

ELECTRIC Mandatory individual household connection to primary and

SUPPLY alternate sources of power if services are available in the locality

Mandatory provision of street lighting per pole if 50-meter in

distance; at every other pole, it less than 50-meter in distance

Electric bills shall be proportionately shouldered by the users

thereof, prior to issuance of COC and turnover of open space to
LGU

Installation practices, materials and fictures used shall be in

accordance with the provision of the Philippine Electrical Code and
local utility company
 PRESIDENTIAL DECREE (PD) 957 BATAS PAMBANSA (BP) 220

PARAMETER OPEN MARKET MEDIUM COST ECONOMIC SOCIALIZED

HOUSING HOUSING HOUSING HOUSING

DRAINAGE SYSTEM UNDERGROUND

The drainage system must conform to the natural drainage pattern

of the subdivision site, and shall drain into appropriate water
bodies, public drainage system or natural outfalls

For both open market and The drainage system for

medium cost subdivision projects, economic and socialized housing
underground drainage system shall be made of concrete lined
shall be properly engineered and canal with adequate capacity
environmentally sound. and with load bearing cover.

If applicable, underground drainage shall be provided with

adequate Reinforced Concrete Pipes (RCP), catch-basins,
manholes/inlets and cross pipe diameter shall be 30 centimeters.
 Standard Design Requirement
References
RA 7279 - This Act shall be known as the “Urban
Development and Housing Act of 1992.”
Section 18. Balanced Housing Development. - The
Program shall include a system to be specified in the
Framework plan whereby developers of proposed
subdivision projects shall be required to develop an
area for socialized housing equivalent to at least
twenty percent (20%) of the total subdivision area or
total subdivision project cost, at the option of the
developer, within the same city or municipality,
whenever feasible, and in accordance with the
standards set by the Housing and Land Use Regulatory
Board and other existing laws.
HLURB BRD.RESOLUTION 890 AMENDED BY RA 10884
Republic Act 10884
To further increase the low-cost housing stock available to underprivileged
families and homebuyers, Section 18 of Republic Act No. 7279 (Balanced
Housing Development) was amended to include the residential condominium
projects in complying with the balanced housing requirement.

Section 18 of RA 7279, as amended by Republic Act No. 10884, requires that

owners and/or developers of proposed subdivision and condominium projects
develop an area for socialized housing, at the option of the developer,
equivalent to:

At least fifteen percent (15%) of the total subdivision area or subdivision

project cost

At least five percent (5%) of condominium area or project cost.

The balanced housing requirement should be accomplished within the same

city or municipality, whenever feasible, and in accordance with the standards
set by the Housing and Land Use Regulatory Board (HLURB) and other existing
laws.
AMENDED BY RA 10884
 Mode of compliance
1. New settlements
2. Slum upgrading
3. Community Mortgage Program (CMP)
4. Joint venture projects with LGU
5. Joint venture projects with NHA
6. Housing/Pabahay Bonds

HLURB BRD.RESOLUTION 890

AMENDED BY RA 10884
 …..Standard Design Requirement References
SECTION 31, PD 957. Donations of Roads and Open
Spaces to Local Government. –

The registered owner or developer of the subdivision or

condominium project, upon completion of the development of said
project may, at his option, convey by way of donation the roads
and open spaces found within the project to the city or
municipality wherein the project is located. Upon acceptance of
the donation by the city or municipality concerned, no portion of
the area donated shall thereafter be converted to any other
purpose or purposes unless after hearing, the proposed
conversion is approved by the Authority.

AMENDED BY PD 1216
 ……Standard Design Requirement References
PARKS & PLAYGROUND - PD 1216
These areas reserved for parks, playgrounds and recreational use
shall be non-alienable public lands, and non-buildable. The
plans of the subdivision project shall include tree planting on such
parts of the subdivision as may be designated by the Authority.

Upon their completion as certified to by the Authority, the roads,

alleys, sidewalks and playgrounds shall be donated by the owner or
developer to the city or municipality and it shall be mandatory
for the local governments to accept provided, however,
that the parks and playgrounds may be donated to the
Homeowners Association of the project with the consent
of the city or municipality concerned. No portion of the parks
and playgrounds donated thereafter shall be converted to any other
purpose or purposes.
 …Standard Design Requirement References
•Zoning Ordinance
The local government unit shall, in conformity with existing
laws, continue to prepare their respective comprehensive land
use plans enacted through ZONING ORDINANCES which shall be
the primary and dominant bases for the future use of the land
resources

•Comprehensive Land Use Plan (CLUP)

CLUP is a document embodying specific proposals for guiding,
regulation growth and development of a city or municipality

•National Building Code of the Philippines (PD

1096)
* Structural & Architectural
* Setback/Yard/Roof Eaves (RULE XVI – NBCP)
* Electrical, Sanitary, & Fire Code
EASEMENT…Standard Design Requirement References
IRR of PD 957, Rule-1, B-Planning Consideration,3-Easements
Subdivision projects shall observe and conform to the following provisions on
easements as may be required by:
a. Chapter IV, Section 51 of The Water Code, on water bodies;
b. National Power Corporation (NPC), on transmission lines;
c. PHIVOLCS per Resolution No. 515, Series of 1992, on identified fault traces;
d. Other public utility companies and other entities' right-of-way;
e. National/local government units for projects abutting national roads (primary
roads) where adequate easement shall be provided for, including loading and
unloading areas;
f. f. Other related laws.

Water Code of the Philippines (PD 1067), Chapter IV, Article 51. The banks
of rivers and streams and the shores of the seas and lakes throughout their
entire length and within a zone of
1. Three (3) meters in urban areas,
2. Twenty (20) meters in agricultural areas and
3. Forty (40) meters in forest areas,
along their margins are subject to the easement of public use in the interest of
recreation, navigation, floatage, fishing and salvage. No person shall be
allowed to stay in this zone longer than what is necessary for recreation,
navigation, floatage, fishing or salvage or to build structures of any kind.
EASEMENT…Standard Design Requirement References
NATIONAL POWER CORPORATION TRANSMISSION LINES
Line Voltage (KV) EASEMENT WIDTH (Meters)

0.400 8.0
11.000 10.0
22.000 10.0 to 20.0
66 (single circuit) 25.0 to 35.0
132 (single circuit) 35.0 to 45.0
275 (single circuit) 50.0 to 66.0

PHIVOLCS per Resolution No. 515, Series of 1992, on

identified fault traces;
Phivolcs now recommends avoiding construction within 5
meters on each side of a fault trace, or a total width of
10 meters. We may call this the ideal "10-meter wide no-
build zone" in the vicinity of a fault.
EASEMENT…Standard Design Requirement References
NATIONAL BUILDING CODE OF THE PHILIPPINES (PD 1096)
TYPES OF SUBDIVISION LOTS

CORNER LOT -a lot

situated at the
intersection of two or
more streets.
TYPES OF SUBDIVISION LOTS

REGULAR LOT -a lot

fronting on one street and the
remaining sides bounded by
lot lines. .
 TYPES OF SUBDIVISION LOTS

INTERIOR LOT -a lot located at the inner portion of a block with a

minimum of three-meter (3-m) wide access which forms part of the lot.
TYPES OF SUBDIVISION LOTS
THROUGH LOT -a lot
bounded on two opposite sides
by roads.
TYPES OF SUBDIVISION LOTS

IRREGULAR LOT -any lot

which is not rectangle nor
square-shaped
BUILDING STRUCTURE ABUTMENT/ATTACHMENT WITH PROPERTY LINE
 LOAD BEARING/INTER- HARDIFLEX/
CONVENTIONAL
LOCKING CHB STYROFOAM PANEL
SYSTEM
HOUSE CONSTRUCTION METHODOLOGY

SEMI CONVENTIONAL & PRE-CAST MODULAR PRE-CAST – PANEL

LOAD BEARING SYSTEM

NOTE:ALL METHODS ARE ASSUMED TO BE SAFE AS PER DESIGN & ANALYSIS BY AN ENGINEEER
…….PART OF A HOUSE
STRUCTURE TECHNICAL SPECIFICATION
CONDOMINIUM-HIGH RISE BUILDING (foundation)

Pile Driving
STRUCTURE TECHNICAL SPECIFICATION
HOUSE TYPE – NO. OF STOREY
UTILITIES - WATER SOURCE

WATER METER

GATE VALVE
CHECK VALVE
UTILITIES - MERALCO SUPPLIED
ELECTRICITY

4,000 VOLTS
UTILITIES - MERALCO SUPPLIED ELECTRICITY
DROPP WIRE FRM.MERALCO POLE

SECONDARY LINE – 220 – 240

VOLTS

TRANSFORMER

SERVICE ENTRANCE POST

ELECTRIC METER
CUT-OFF BREAKER
 STEP 4 - PERMITS AND LICENSES
•CLEARANCES - ZONING
PRE- •RE-CLASSIFICATION OF USAGE
DEVELOPMENT •DAR CONVERSION
STAGE •DENR ECC – ENVIRONMENTAL IMPACT REPORT
•EGGAR REPORT – HAZARD MAP

•DEVELOPMENT/CONSTRUCTION PERMIT
DEVELOPMENT /
DESIGN & ENGINEERING STUDIES
SELLING STAGE •PROJECT REGISTRATION
SHOWING LEGAL PROPERTY OWNERSHIP
•LICENSE TO SELL
WITH PUBLICATION & PERFORMANCE BOND

•CERTIFICATE OF COMPLETION
COMPLETION / •CERTIFICATE OF BUILDING OCCUPANCY
TURN OVER •HOMEOWNERS ASSOCIATION FORMATION
STAGE •TURN OVER OF OPEN SPACE TO LGU
•PROPERTY MANAGEMENT
•Permits & Licenses VERY VITAL
Development Permit PERMITS &
License to Sell LICENSES, &
DEVELOPERS
Building Permit UNDERTAKINGS
Geological Testing
ECC & Other Environment Clearances
Water & Drilling Permit
•Development
Construction Methods – drainage line outfall
Planting and Cutting of Trees
Respect for Existing Natural Grade Lines
ECC Provisions & Mitigating Plans
 DEVELOPMENT PERMIT

PROJECT CLASSIFICATION

...issued by HLURB
 •Subd/Condo Registration & License to Sell
* Registration of the Project – The registered owner of a parcel of
land WHO WISHER TO COVERT the same into a subdivision project shall submit his
subdivision plan to the “Authority- NHA/HLURB)” which shall act upon and approve
the same, upon a finding that the plan complies with the Subdivision Standard’s and
Regulations enforceable at the time the plan is submitted.
Attachments 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

LICENSE TO SELL: Authority given to owner to sell

subdivision development products. It must be secured within
two weeks after receipt of the Certificate of Registration
 CR No.

PROJECT NAME

...not equivalent to LTS

PROJECT OWNER
PROJECT DEVELOPER
ADDITIONAL CONDITIONS:
NON-SALEABLE *
RECREATIONAL AREAS*
OPEN SPACES*
EXCLUDED AREA*
DEVELOPMENT PERMIT (DP), CERT. OF REGISTRATION
(CR), LICENSE TO SELL (LTS)
…. It is an assurance to the public (buyer & practitioners) and
government
1. Owner/Developer is legitimate and reputable
2. Selling would NOT be fraudulent
3. Evaluated/Approved subdivision or condominium, building
plans
4. Commitment to complete the project’s amenities/facilities
thru circular, prospectus, brochure or advertisement
5. Committed to complete the project , including its
maintenance) by submitting a PERFORMANCE BOND (20% of
the total development cost)
6. A reliable financial capabilities sheet showing all assets &
liabilities
7. A title to the property, if free from all liens & encumbrances
 PROJECT ASSESSMENT & SUSTAINABILITY
ASSESSEMENT - The views and needs of the beneficiaries
of the project are important to consider when formulating your
project goals and objectives and implementing your activities. A
responsible project developer must be aware of the needs and
concerns of the intended beneficiaries and therefore a project
assessments and evaluation is necessary to guarantee the
success of the project. An environmental risks assessments and
analysis is also a very important component of the project
development in order to minimize the impact of ecological
balance destruction and improve environmental conservation.
SUSTAINABILITY of a project and its benefits are also
important considerations in the project development. This will
guarantee a successful project implementation over the long
term. A properly planned resource mobilization will also spells the
difference of a properly planned development projects.
 ENVIRONMENTAL PROTECTION
MITIGATING MEASURES FOR PROJECT DEVELOPMENT
•Planning/Compliance to Minimum Design Standard
Land Use Plan/ Locational Clearance
Easements
From Body of Water
From Cemetery
Transmission Lines
Building Code Provisions on Yards, ventilation setback
Sewer Drainage and Disposal – Septic Tank, or Water
Treatment Plant
Assessment on
Environmentally Critical Areas (ECA)
Protected Areas
Environment Critical Projects (ECP)
 ENVIRONMENT COMPLIANCE CERTIFICATE
(ECC):
The document issued by either the DENR Secretary
or the RED certifying that based on the
representations of the proponent and the preparers:
 the proposed project or undertaking will not
cause any significant negative environmental
impact
 the proponent has complied with all the
requirements of the Environment Impact
Statement
 the proponent is committed to implement both
its approved Environmental Management Plan and
any mitigating measures.
When is an ECC required of a project?
An ECC is required before a project or undertaking is started when
it is either an ECP or is a project located within an ECA or both.

Note: All projects are generally required to secure environmental

clearance or and "Environmental Compliance Certificate" (ECC).
EFFECTIVITY OF ECC
Project proponents of ECPs are required to implement the proposed
project within (5) five years upon issuance of an Environmental
Compliance Certificate (ECC), while proponents of projects in
ECAs are required to implement the proposed project within (2) two
years. Failure to implement the project on the specified time frame
invalidates the ECC and the proponent must obtain a new ECC prior
to implementation.
 ENVIRONMENTALLY CRITICAL AREA (ECA):
An area that is environmentally sensitive.
(examples are on the next slides)
 ENVIRONMENTALLY CRITICAL PROJECT (ECP):
A project that has a high potential for significant negative environmental
impact.

 ENVIRONMENTAL IMPACT STATEMENT (EIS):

The documents or studies on the environmental impacts of a project
including the discussions on direct and indirect consequences upon
human welfare, ecological and environmental integrity.

 ENVIRONMENTAL MANAGEMENT PLAN (EMP):

A section of the EIS that details the prevention, mitigation,
compensation, contingency and monitoring measures to enhance the
positive impacts and minimize the negative impacts of a proposed project
or undertaking.
 STEP 5 - PROJECT IMPLEMENTATION

EARTHWOR AMENITIES HOUSING

SURVEYING KS & CONCRETING & CONST’N.
UNDER FACILITIES
GROUND
* Boundary, UTILITIES *Roadways, *Central *Method of
Blocks, & Lots Facility/Amen Testing – all
Sidewalk,
Monumenting ities Area utilities using
*Drainage Curbs& Gutter, appropriate
* Layout of
Line, Water Planting Strip *Main &
Amenities and testing
System/ *Perimeter Sub-Entrance
Facilities Equipment
House Service Fences Gates *Method of
Connection *Water Inspection –
*Electrical, Storage buyer should be
Telephone, (Elevated accompanied by
Tank), Cistern, a technical
Cable Lines person
Pump house
 …….STEP 5 - PROJECT IMPLEMENTATION

SURVEY WORKS ROAD TRACING UNDERGROUND ROAD BASE

UTILITIES PREPARATION

HOUSING & ELECTRIFICATIO ROADWAYS

TURN-OVER,
AMENITIES N CONCRETING
INSPECTION,
CONSTRUCTION
WARRANTIES
 LAYER BY LAYER COMPACTION EVERY LAYER OF BACKFILING
BACKFILING

SUITABLE BACKFILING SOIL SUB-BASE COURSE ROAD CONCRETING WITH

PROPER THICKNESS, CURING,
AND TEST CYLINDER
 STEP 7 – INSPECTION AND TURN OVER
•Turn Over of Housing Unit or Property Lot
* Criteria for Turn Over
- Installment Stage
- Fully Paid TCP Stage
* Procedure of Turn Over
- Documentary
- Building/Lot Plan & Building Permit, Occupancy Permit
- Title, Tax Declaration, & Latest Realty Tax Payment Receipt
* Physical
- Boundary & Monuments – For Lot
- House & Utility Inspection and Testing – For House & Utilities
•Responsibility of Homeowners – to be explained by
professional to buyer prior to signing of Reservation
Agreement
* Follow the DOR and Village Rules
* Payment of Association Dues
* Assumption of Realty Tax – SECTION 26, ART.IV, PD 957
…..PROJECT IMPLEMENTATION & TURN OVER
•DEED OF RESTRICTIONS – (POLICE POWER)
* USE AND OCCUPANCY OF THE PROPERTY
Provision stating the required use of the property – residential
dwelling, commercial, school – as original stated in the license
to sell
* BUILDING ARCHITECTURE & DESIGN, AND SETBACKS
Provision stating the minimum cost of the construction, design
concept, building storey & height, setbacks of exterior walls &
roof eaves, carport location, allowed expansion, firewall, fences
construction permits & bond.
* UTILITY (water & drainage) TAPPING
* CONSTRUCTION
Stating construction, barracks, workers village rules, delivery &
stock piling of materials, disposal of waste
* MOVE-IN TERMS & CONDITION
* COMMON AREAS & USE OF FACILITIES - VILLAGE RULES
 UTILITIES INSTALLATION
• ELECTRICITY / STREET LIGHTS
* EPIRA LAW - viability scheme
* Meralco Line Design
* House Service Connection
* Joint Pole Agreement
• TELEPHONE LINE & CABLE
* Line Installation Requirement
* Joint Pole Agreement
• WATER SYSTEM MANAGEMENT
* Ownership and Operation – thru Water
right/franchise and Cert. of Public Convenience, HOA has an
option to administer & manage subdivision water system as per
Magna Carta for HOA (Chapter III,g)
 5TH - MAINTENANCE AND WARRANTIES
•Wear & Tear, Misuse and Abuse Warranties
– as per developer’s stipulation
•Civil Code of the Philippines – Art. 1723 of
the Civil Code of the Philippines states the an
engineer or architect who drew and sign the
building plan and specifications, and the
contractor who supervised the actual
construction is liable if the building collapsed
within the period of fifteen (15) years.
 6th - PROPERTY MANAGEMENT
• IMPORTANCE
* Maintain Original Project’s Concept, Safety, & Exclusivity
* Enhance appreciation of property value
* Ensure functionality of all project’s components
• FUNCTIONS
* Implement/Monitor Village/Condo Rules
* Implement/Monitor Deed of Restrictions
* Maintain Amenities & Facilities
* Administer Homeowners Association (HA)
* Collection of Dues (HA Dues, RPT & Water Bill)
* Maintain Security
* After-Sales Services
* Other Services
• Management Fee
* Cost Plus
* Straight Contract
 7th – HOMEOWNER ASSOCIATION
SECTION 30, PD 957. Organization of Homeowners Association. -
The owner or developer of a subdivision project or condominium project
shall initiate the organization of a homeowners association among the
buyers and residents of the projects for the purpose of promoting and
protecting their mutual interest and assist in their community development.
SECTION 22 of BP 220 . Organization and Registration of
Homeowners
The owner or developer of a socialized and economic housing
project shall initiate the organization of a homeowners association
among the buyers and residents of the project for the purpose of
promoting and protecting their mutual interest. Said homeowners
association shall register with the Board and the latter is hereby
authorized to accredit and determine the legitimate homeowners
association of the housing project for purposes of applying the
pertinent provisions of these Rules.

Republic Act No. 9904 & ITS I R R

AN ACT PROVIDING FOR A MAGNA CARTA FOR HOMEOWNERS AND
HOMEOWNERS’ ASSOCIATIONS, AND FOR OTHER PURPOSES
 8th -SALIENT FEATURES OF PD No. 957
SECTION 18. Mortgages. - No mortgage on any unit or lot shall be made by the owner or developer without
prior written approval of the Authority. 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 project and effective measures
have been provided to ensure such utilization. `
SECTION 19. Advertisements. - Advertisements that may be made by the owner or developer through
newspaper, radio, television, leaflets, circulars or any other form about the subdivision or the condominium or its
operations or activities must reflect the real facts and must be presented in such manner that will not tend to mislead
or deceive the public.
SECTION 20. Time of Completion. - Every owner or developer shall construct and provide the facilities,
improvements, infrastructures and other forms of development, including water supply and lighting facilities, which
are offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed matters,
letters or in any form of advertisement, within ONE (1) year from the date of the issuance of the license for the
subdivision or condominium project or such other period of time as may be fixed by the Authority.
SECTION 22. Alteration of Plans. - No owner or developer shall change or alter the roads, open spaces,
infrastructures, facilities for public use and/or other form of subdivision development as contained in the approved
subdivision plan and/or represented in its advertisements, without the permission of the Authority and the written
conformity or consent of the duly organized homeowners association, or in the absence of the latter, by the majority of
the lot buyers in the subdivision.
SECTION 23. Non-Forfeiture of Payments. - No installment payment made by a buyer in a
subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or
developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure
of the owner or developer to develop the subdivision or condominium project according to the approved plans and
within the time limit for complying with the same.
SECTION 24. Failure to pay installments. - The rights of the buyer in the event of this failure to pay
the installments due for reasons other than the failure of the owner or developer to develop the project shall be
governed by Republic Act No. 6552 (MACEDA LAW).
 …..SALIENT FEATURES OF PD No. 957
SECTION 26. Realty Tax. - Real estate tax and assessment on a lot or unit shall be paid
by the owner or developer without recourse to the buyer for as long as the title has
not passed the buyer; Provided, however, that if the buyer has actually taken
possession of and occupied the lot or unit, he shall be liable to the owner or developer
for such tax and assessment effective the year following such taking of possession and
occupancy.
SECTION 29. Right of Way to Public Road. - The owner or developer of a subdivision
without access to any existing public road or street must secure a right of way to a
public road or street and such right of way must be developed and maintained
according to the requirement of the government and authorities concerned.
SECTION 30. Organization of Homeowners Association (HOA). - The owner or
developer of a subdivision project or condominium project shall initiate the
organization of a homeowners association among the buyers and residents of the
projects for the purpose of promoting and protecting their mutual interest and assist
in their community development.
SECTION 32. Phases of Subdivision. - For purposes of complying with the provisions of
this Decree, the owner or developer may divide the development and sale of the
subdivision into phases, each phase to cover not less than ten hectares. The
requirement imposed by this Decree on the subdivision as a whole shall be deemed
imposed on each phase.
 ….SALIENT FEATURES OF PD No. 957
SECTION 35. Take-Over Development. - The Authority, may take over or cause the development
and completion of the subdivision or condominium project at the expenses of the owner or developer, jointly and
severally, in cases where the owner or developer has refused or failed to develop or complete the development of
the project as provided for in this Decree. The Authority may, after such take-over, demand, collect and receive from
the buyers the installment payments due on the lots, which shall be utilized for the development of the subdivision.
SECTION 36. Rules and Regulations (IRR). - The Authority shall issue the necessary standards, rules
and regulations for the effective implementation of the provisions of this Decree. Such standards, rules and
regulations shall take effect immediately after their publication three times a week for two consecutive weeks in any
newspaper of general circulation. Thru Board Resolution No. 699, HLURB has amended the IRR as Revised
Implementing Rules & Regulation for PD 957.
RULE I – Minimum Design Standard
RULE II – Approval of Plan
RULE III – Approval of Condominium Plan
RULE IV – Registration & Licensing of Subdivision & Condominium Projects
RULE V – Registration of Real Estate Dealers, Brokers, & Salesmen
RULE VI – Miscellaneous Provisions
SECTION 38. Administrative Fines. - The Authority may prescribe and impose fines not exceeding ten
thousand pesos for violations of the provisions of this Decree or of any rule or regulation thereunder.
SECTION 39. Penalties. - Any person who shall violate any of the provisions of this Decree and/or any rule
or regulation that may be issued pursuant to this Decree shall, upon conviction, be punished by a fine of not
more than twenty thousand (P20,000.00) pesos and/or imprisonment of not more than ten years: Provided,
That in the case of corporations, partnership, cooperatives, or associations, the President, Manager or
Administrator or the person who has charge of the administration of the business shall be criminally
responsible for any violation of this Decree and/or the rules and regulations promulgated pursuant thereto
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