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4) LAND PATENTS AND URBAN LAND REFORM

Regalian Doctrine Everything is owned by the State o Section 2 of the Constitution:

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall NOT be alienated. x x x

Under the Public Land Act o Alienable and Disposable o Timber o Mineral

Classification of Public Lands o Agricultral o Forest or Timber o Mineral Lands o National Parks

Alienable and Disposable Lands o Agricultural o Residential, Commercial and Industrial o Educational and Charitable o Reservation for Public Use (Patrimonial)

Article XII, Section 3 o x x x Agricultural lands of the public domain may be

further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands.

How the State Dispose of Alienable Lands o Homestead Settlement o By Sale o By lease o By Judicial Legalization (Original Registration

Proceedings) o By Administrative Legalization (Free Patent)

v Act No. 2874 (Jones Law) o More comprehensive in scope but limited the

exploitation of agricultural lands to Filipinos and

Maericans and citizens of other countries which gave Filipinos the same privilege.

v Public Land Act (CA No. 141) o Enacted November 7, 1936

Grants of public lands are brought under the operation of the Torrens system or registration pursuant to section 103 of PD No. 1529 or the Property Registration Decree.

The general law governing the classification and disposition of lands of the public domain other than timber and mineral lands.

Property Registration Decree v. Public Land Act o Property Registration Decree - there exists a title

(private) o Public Land Act Presumption land applied

pertains to the State Padilla vs Reyes

o No public land can be acquired by private persons without any GRANT, express or implied from the government. Homestead Sales Free

Menguito vs Republic o Unless public land is shown to have been reclassified

or alienated to private person by the State, it remains part of the inalienable public domain.

What are Patents? o Are grant of public lands by the State to private

individuals / entities. Homestead Settlement

What is a homestead? o Property designated by a householder as the

householder's home and protected by law from forced sale

o It is to provide a home for each citizen of the state where his family may shelter and live beyond the reach of financial misfortune and to instill in individuals those feelings of interdependence which are essential to the maintenance of free institutions (Jocson v. Soriano, 45 Phil. 375 (1923)).

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Who may apply? o Any citizen over 18 years of age o Any Head of the Family o Willing to work on the land

Requirements: o Payment of the fees (Php 5) o 1/5 of the land should have been cultivated o Should be a land subject to homestead entry o The period within which the land is cultivated

shall not be less than one year Limitations:

o Only limited to 1 homestead o Less than 24 hectares o Should not be speculative

Cancellation of Homestead Patent o Changing of address or abandonment of the

land o The land has not been improved or cultivated in

6 months after the grant o Non payment of fees

Important Things To Remember o Homestead Patent is subject to

transfer/conveyance o In case of incapacity of original applicant,

representative or heirs can step into his rights. o It is a right that can be passed through

succession o After the completion of requirements, the

homesteader acquires a vested interest in the land and should be regarded as the equitable owner (Balboa v. Farrales, GR 27059)

Jurisprudence: o Suzi vs Razon 48 Phil 424 o Mesina v. Sonza, GR L-14722, May 25, 1960 o Nieto v. Quines, GR-14634, Jan 28, 1961

Free Patents Qualifications

o Any natural born citizen of the Philippines o Not an owner of more than 12 hectares o At least 30 years prior to the effectivity of this

Act has continuously occupied and cultivated

either by himslef or through his predecessor in interest

o Tract/s of agricultural public lands subject to disposition

o Have paid the real estate tax o The same has not been occupied by any person

RA 10023 - Authorizes issuance of free patent titles to

residential lands o Any Filipino Citizen o Actual occupant of a residential land o Highly urbanized 200 sqm o Other cities - 500 sqm o Municipalites (1st and 2nd class) 750 sqm o All other municipalities 1,000 sqm

Application must be supported by a survey plan by DENR with

corresponding technical descriptions

Affidavit of 2 disinterested persons who are residents of barangay where the land is located:

o That the applicant has, by himself or through his predecessors in interes actually resided on and actually possessed and occupied the land applied for under a bona fide claimof acquisition of ownership for at least 10 years and has complied with all requirements prescribed by this Act.

Sales Patent Public Agricultural Lands

o The acquisition of public agricultural lands by purchase is governed by Chapter V (Sale) of the Public Land Act.

o Any citizen of the Philippines of lawful age or the head of a family may purchase any tract of public agricultural land not to exceed twelve hectares

o sold thru sealed bidding o land shall be awarded to the highest bidder, but

the applicant may equal the highest bid o The purchase price may be paid in full upon the

making of the award or in not more than ten

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equal annual installments from the date of the award.

o the purchaser shall have not less than one-fifth of the land cultivated within five years from the date of the award, and before any patent is issued, he must show actual occupancy, cultivation and improvement of at least one-fifth of the land until the date of final payment

Lands for Residential, Commercial or Industrial Purposes o governed by Chapter IX (Classification and

Concession of Public Lands Suitable for Residence, Commerce and Industry) of the Public Land Act.

o Lands under this chapter are classified as: A. Lands reclaimed by the government

by dredging, filling, or other means B. Foreshore C. Marshy lands or lands covered with

water bordering upon the shores or banks of navigable lakes or rivers

D. Lands not included in any of the foregoing classes.

o The lands comprised in classes (a) and (b) shall be disposed by lease only.

o Lands comprised in classes (c) and (d) may be sold on condition that the purchaser shall make improvements of a permanent character appropriate for the purpose for which the land is purchased within eighteen months from the date of the award.

o The lease or sale shall be made through oral bidding, and adjudication shall be made to the highest bidder.

o However, where an applicant has made improvements on the land by virtue of a permit issued to him by competent authority, the sale or lease shall be made by sealed bidding as prescribed in Section 26 of the Public Land Act

o Section 60 expressly requires congressional authority before lands under Section 59 which the government had previously transferred to

government units or entities could be sold to private parties.

Lands for Residential Purposes (direct sale) o While specific classes of lands may be sold only

at auction, RA No. 73068 permits the direct sale of public lands for residential purposes to qualified applicants under certain conditions.

o To be qualified, the applicant must: (a) be a Filipino citizen of legal age; (b) not the owner of a home lot in the

municipality or city in which he resides; (c) have established in good faith his

residence on a parcel of public land which is not needed for public service; and

(d) have constructed his house and actually resided therein.

o If he complies with these conditions, he shall be given preference to purchase at a private sale not more than one thousand square meters of land at a price to be fixed by the Director of Lands.

o RA No. 730 merely provides an exception to Sections 61 and 67 of CA No. 141. In short, the law authorizes a sale by private sale, as an exception to the general rule that it should be by bidding, provided the area applied for does not exceed 1,000 square meters, and the applicant has in his favor the conditions specified for in Section 1 thereof. Hence, if the area applied for is in excess of 1,000 square meters, the sale must be done only through bidding.

o Under RA No. 274, lands within military reservations, when declared by the President as no longer needed for military purposes, may be subdivided by the Director of Lands, and thereafter sold to persons qualified to acquire agricultural public lands under the Public Land Act, with priority given to bona fide occupants and then to war veterans.

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o The area of each lot shall be determined by the Director of Lands according to the nature of the land, the number of prospective applicants, and the purpose for which it will be utilized.

Lands within Military Reservations Lands for Educational, Charitable and other similar purposes

o Lands for Educational, Charitable and other similar purposes

o Under Chapter X (Concession of Lands for Educational, Charitable and Other Similar Purposes) of the Public Land Act, lands for said purposes may be sold or leased, under the same conditions as the sale or lease of agricultural public lands, for the purpose of founding a cemetery, church, college, school, university, or other institutions for educational, charitable, or philanthropical purposes or scientific research, the area to be such as may actually and reasonably be necessary to carry out such purposes.

o The Secretary of Environment and Natural Resources may order the sale to be made without public auction, at a price to be fixed by him.

Special Patents Defined as a patent to grant, cede, and convey full

ownership of alienable and disposable lands formerly covered by a reservation or lands of the public domain and is issued upon the promulgation of a special law or act of Congress or by the Secretary of Environment and Natural Resources as authorized by an Executive Order of the President.

the classification of the land is not at all decisive in such description since the special law or act of Congress or the Executive Order may classify the subject land differently

Department of Environment and Natural Resources (DENR), through the Reservation and Special Land Grants Section of the Lands Management Division, is tasked to issue special patents in favor of government agencies pursuant to special laws, proclamations, and executive orders x x x . Chavez vs. PEA 384 SCRA 152

Friar Lands

Were purchased by the government for SALE to actual settlers and occupants at the time said lands were acquired by the government.

Not public lands but private or patrimonial property of the government.

v URBAN LAND REFORM

What does the law do? o President shall proclaim specific parcels of urban

and urbanizable lands as Urban land Reform Zones.

o The Ministry of Human Settlements shall prepare the appropriate development and zoning plans

o No urban land can be disposed of or used or constructed on unless its disposition or use conforms with the development and zoning plans of the Ministry

What happens to the person residing in the zone?

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o Legitimate tenants who have resided on the land for ten years or more who have built their homes on the land and residents who have legally occupied the lands by contract, continuously for the last ten years shall not be dispossessed of the land and shall be allowed the right of first refusal to purchase the same within a reasonable time and at reasonable prices

o If the tenants are unable to purchase the land, lands, the Government shall acquire the land and/or improvements thereon by expropriation

What happens if there are pending transactions in the subject lands?

o All landowners tenants and residents thereupon are required to declare to the Ministry any proposal to sell, lease or encumber lands and improvements thereon, including the proposed price, rent or value of encumbrances and secure approval of said proposed transaction.

o The Ministry shall have the pre-emptive right to acquire the above mentioned lands and improvements thereon which shall include, but shall not be limited to lands occupied by tenants

What will the government do with the land? o The Ministry is hereby authorized to utilize

innovative land disposition techniques in Urban Zones, including neighborhood ownership, residential freeholds subject to improvement conditions and the reservation of development rights, and tenure in improvements separate from tenure in land

o Within designated Urban Zones, the government shall implement a taxation system in support of the basic policies underlying the urban land reform program

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5) REAL ESTATE PRACTITIONERS

v R.A. 9646 The Real Estate Service Act- AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Section 3. Definition of Terms:

(a) "Appraiser" - valuer, refers to a person who conducts valuation/appraisal.

(b) "Assessor" - an official in the local government unit, who performs appraisal and assessment of real propertiesxxx for taxation purposes.

(g) "Real estate service practitioners":

(1) Real estate consultant - renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

(2) Real estate appraiser- perform services in estimating and arriving at an opinion of or acts as an expert on real estate values xxx

(3) Real estate assessor - works in a local government unit and performs appraisal and assessment of real properties xxx

(4) Real estate broker - an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.

(5) Real estate salesperson - in behalf of a real estate broker who is registered and licensed by the Professional

Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

Section 4. Creation and Composition of the Board. - Composed of a chairperson and four (4) members who shall be appointed by the President of the Philippines from the three (3) recommendees chosen by the Commission from a list of five (5) nominees per position submitted by the accredited and integrated professional organization of real estate service practitioners: Provided, That two (2) of the members of the Board shall represent the government assessors and appraisers.

Section 5. Powers and Functions of the Board.

(a) Policy guidelines for the promotion and development of the real estate industry;

(b) Conduct licensure examinations;

(c) Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of registration or professional identification cards;

(d) Maintain a comprehensive and updated register of licensed real estate service professionals;

(e) Monitor the conditions affecting the practice of real estate service and adopt such measures for the enhancement of the profession and/or the maintenance of high professional, ethical and technical standards;

(f) National Code of Ethics and Responsibilities to be strictly observed by all licensed real estate service practitioners;

(g) Hear or investigate any violation xxx and issue subpoena and subpoena duces tecum;

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(h) Safeguard and protect legitimate and licensed real estate service practitioners;

(i) Prescribe, in cooperation with CHED the essential requirements as to the curricula and facilities of schools;

(j) Promulgate, administer and enforce rules and regulations necessary;

(k) Supervise and regulate the registration, licensure and practice;

(l) Assess and fix the rate of reasonable regulatory fees;

(m) Administer oaths and affirmations;

(n) Adopt an official seal of the Board;

(o) Evaluate status of real estate service education and profession;

(p) Prescribe guidelines and criteria for the Continuing Professional Education (CPE) program;

(q) Screen, issue and monitor permits to organizations of real estate professionals in the conduct of seminars;

(r) Monitor and supervise the activities of the accredited and integrated professional organization and other associations;

(s) Discharge such other powers, duties and functions as the Commission may deem necessary xxx

Section 6. Qualifications of the Chairperson and Members of the Board:

(a) Filipino citizen and resident

(b) Bachelor's degree related to real estate;

(c) Active licensed practitioner of real estate service for at least 10 years prior to appointment;

(d) A bona fide member in good standing of the accredited and integrated professional organization of real estate service practitioners but not an officer or trustee at the time of his/her appointment;

(e) Neither be a member of the faculty of an institute, school, college or university, nor have any pecuniary interest, direct or indirect, in any institution or association where review classes or lectures in preparation for the licensure examination are being offered or conducted; and

(f) Of good moral character, and must not have been convicted by final judgment of a criminal offense involving moral turpitude.

Section 7. Term of Office.

The chairperson and the members of the Board 1 term = 3 years from the date of their appointment xxx 1member as chairperson, to serve for 3 years; 2 members, to serve for 2 years; and 2 members, to serve for 1 year.

Xxx May be reappointed for a second term but NO continuous service for more than 6 years. xxx

LICENSURE EXAMINATION AND REGISTRATION

Section 12. Licensure Examination. - Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination.

Examinations shall be given by the Board at least once every year xxx

Section 14. Qualification of Applicants for Examinations.

(a) A citizen of the Philippines;

(b) Relevant bachelor's degree xxx Provided, That as soon as a course leading to a Bachelor's degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the "licensure examination; and

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(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude: Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or at least five (5) years experience as a licensed real estate appraiser xxx

Section 15. Ratings in the Examination. - Must obtained an average of at least 75% in all subjects, with no rating below 50% in any subject.

Section 17. Issuance of the Certificate of Registration and Professional Identification Card. - A certificate of registration shall be issued to examinees who pass the licensure examination xxx

A professional identification card will be issued to every registrant upon payment of the required fees and shall be renewed every 3 years and upon satisfying the requirements of the Board xxx

Section 19. Revocation or Suspension of the Certificate of Registration and the Professional Identification Card or Cancellation of Special/Temporary Permit.

(a) Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

(b) Allowing an unqualified person to advertise or to practice the profession by using one's certificate of registration or professional identification card, or special/temporary permit;

(c) Unprofessional or unethical conduct;

(d) Malpractice or violation of laws/rules;

(e) Engaging in the practice of the profession during the period of one's suspension.

Section 20. Registration Without Examination:

(a) Those who, on the date of the effectivity of this Act, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and have undertaken relevant CPE to the satisfaction of the Board;

(b) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and are performing actual appraisal and assessment functions for the last five (5) years, have passed the Real Property Assessing Officer (RPAO) examination conducted and administered by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF), and have undertaken relevant CPE to the satisfaction of the Board; and

(c) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and have at least ten (10) years actual experience in real property appraisal or assessment and have completed at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations or institutions/entities recognized by the Board and relevant CPE to the satisfaction of the Board.

Those falling under categories (b) and (c) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers: Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.

Those so exempt under the aforementioned categories shall file their application within two (2) years from the effectivity of this Act: Provided, That the renewal of the professional identification card is subject to the provisions of Section 17 hereof.

Section 21. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special/Temporary Permit. - The Board may, after the expiration of two (2) years from the

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date of revocation of a certificate of registration and/or professional identification card, and upon application, compliance with the required CPE units, and for reasons deemed proper and sufficient, reinstate any revoked certificate of registration and reissue a suspended professional identification card and in so doing, may, in its discretion, exempt the applicant from taking another examination.

A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board.

Section 23. Issuance of Special/Temporary Permit. xxx subject to the approval of the Commission, the Board may issue special/temporary permit from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

Section 24. Foreign Reciprocity. - No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

ARTICLE IV PRACTICE OF REAL ESTATE SERVICE

Section 25. Oath. - All successful examinees xxx shall be required to take an oath xxx prior to entering into the practice of real estate service in the Philippines.

Section 26. Professional Indemnity Insurance/Cash or Surety Bond. - All real estate brokers and private real estate appraisers shall xxx be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years xxx

Section 28. Exemptions from the Acts Constituting the Practice of Real Estate Service.:

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

(c) Any person acting pursuant to the order of any court of justice;

(d) Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

(e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.

Section 31. Supervision of Real Estate Salespersons.

Real Estate Salespersons:

No examination shall be given but shall be accredited by the Board

Should have completed at least 2 years of college and have undergone training and seminars in real estate brokerage

Under the direct supervision and accountability of a real estate broker.

Cannot be signatories to a written agreement involving a real estate transaction unless the real estate broker.

Cannot directly or indirectly negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation

Not entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.

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Section 32. Corporate Practice of the Real Estate Service. -

(a) No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the SEC, and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be. The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1) licensed real estate broker for every twenty (20) accredited salespersons.

(b) Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.

(c) Branch offices of real estate brokers, appraisers or consultants must be manned by a duly licensed real estate broker, appraiser or consultant;

Resignation or termination from employment of a real estate service practitioner- employer should report to the Board (do not exceed 15 days from the date of effectivity of the resignation or termination).

xxx a corporation or partnership may hire the services of registered and licensed real estate brokers, appraisers or consultants on commission basis xxx shall be deemed independent contractors and not employees of such corporations.

Section 33. Display of License in the Place of Business. principal and branch offices xxx shall display the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all the real estate service practitioners employed.

Section 34. Accreditation and Integration of Real Estate Service Associations. - All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners. xxx

Section 36. Continuing Professional Education (CPE) Program. - The Board shall develop, prescribe and promulgate guidelines on CPExxx

Section 38. Indication of the Certificate of Registration, Professional Identification Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited Professional Organization (APO) Number. - Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

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6) CONDO ACT v RA 4726 THE CONDOMINIUM ACT

Condominium Unit - A part of the condominium project intended

for any type of independent use or ownership, including one or more rooms or spaces located in one or more floors (or part or parts of floors) in a building or buildings and such accessories as may be appended thereto.

Condominium Project - The entire parcel of real property divided

or to be divided in condominiums, including all structures thereon

Common Areas- The entire project excepting all units separately granted or held or reserved.

QUESTIONS TYPICALLY ASKED BY A CONDOMINIUM UNIT

PURCHASER

o Question # 1 What do you mean by Condominium?

Sec. 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. A condominium may include, in addition, a separate interest in other portions of such real property. Title to the common areas, including the land, or the appurtenant interests in such areas, may be held by a corporation specially formed for the purpose (hereinafter known as the condominium corporation) in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas.

The real right in condominium may be ownership or any other interest in real property recognized by law, on property in the Civil Code and other pertinent laws.

o Question # 2 Can I claim ownership over the condos swimming pool and elevators?

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium

grant are as follows:

(a) The boundary of the unit granted are the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof. The following are not part of the unit bearing walls, columns, floors, roofs, foundations and other common structural elements of the building; lobbies, stairways, hallways, and other areas of common use, elevator equipment and shafts, central heating, central refrigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and other utility installations, wherever located, except the outlets thereof when located within the unit.

o Question # 3 Can I paint my room with color pink and add some substantial improvements accordingly?

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows:

(e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax, paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and doors bounding his own unit.

o Question # 4 Do I own the hallway outside my condominium unit?

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows:

(c) Unless otherwise, provided, the common areas are held in common by the holders of units, in equal shares, one for each unit. (d) A non-exclusive easement for ingress, egress and support through the common areas is appurtenant to each unit and the common areas are subject to such easements.

o Question # 5 f I become the owner of a condo unit, will I also be a

co-owner of the land where it is situated?

Sec. 2. A condominium is an interest in real property consisting of

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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. A condominium may include, in addition, a separate interest in other portions of such real property. Title to the common areas, including the land, or the appurtenant interests in such areas, may be held by a corporation specially formed for the purpose (hereinafter known as the condominium corporation) in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas.

The real right in condominium may be ownership or any other interest in real property recognized by law, on property in the Civil Code and other pertinent laws.

o Question # 6 After I buy the condo, what do i need to do with the deed of sale?

Sec. 18. Upon registration of an instrument conveying a condominium, the Register of Deeds shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of title covering land included within the project and the transferee shall be entitled to the issuance of a condominium owners copy of the pertinent portion of such certificate of title. Said condominium owners copy need not reproduce the ownership status or series of transactions in force or annotated with respect to other condominiums in the project. A copy of the description of the land, a brief description of the condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the condominium owners copy of the certificate of title. No conveyance of condominiums or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project.

o Question # 7 If I want to sell my condo unit, can I sell it to my cousin who is a Canadian citizen?

Sec 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium

grant are as follows:

(g) Each condominium owner has also the absolute right to sell or dispose of his condominium unless the master deed contains a requirement that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties;

But this is subject to:

Sec. 5. Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interests in the common areas or, in a proper case, the membership or shareholdings in the condominium corporation: Provided, however, That where the common areas in the condominium project are owned by the owners of separate units as co-owners thereof, no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession. Where the common areas in a condominium project are held by a corporation, no transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant membership or stockholding in the corporation will cause the alien interest in such corporation to exceed the limits imposed by existing laws.

o Question # 8 What if I run out of money and decided to avail loan services of the bank, can I have my condo as my unit security for mortgage?

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, incidents of a condominium grant are as follows:

(f) Each condominium owner shall have the exclusive right to mortgage, pledge or encumber his condominium and to have the same appraised independently of the other condominiums but any obligation incurred by such condominium owner is personal to him.

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o Question # 9 If I sell my unit, am I still a member or a stockholder

of a condominium corporation?

Sec. 10. Whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas, either in ownership or any other interest in real property recognized by law, to the management of the project, and to such other purposes as may be necessary, incidental or convenient to the accomplishment of said purposes. The articles of incorporation or by-laws of the corporation shall not contain any provision contrary to or inconsistent with the provisions of this Act, the enabling or master deed, or the declaration of restrictions of the project. Membership in a condominium corporation, regardless of whether it is a stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common areas, he shall automatically cease to be a member or stockholder of the condominium corporation.

o Question # 10 Suppose the developer and I would have future disputes concerning the delivery of the unit I purchased, where will I file my complaint?

PD 957: Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for violations thereof

Section 3. The National Housing Authority shall have exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of this Decree.

**** The National Housing Authority is now the HLURB (Housing and Land Use Regulatory Board)

*****Exclusive Jurisdiction of HLURB cases involving unsound real estate practices including unwarranted delay in delivering a condo unit.

o Question # 11 How do I make reservations? What are the

payment terms/ financing scheme? Can I hold the unit even if I havent decided on Reservation yet?

Sec 9. The owner of a project shall, prior to the conveyance of any condominium therein, register a declaration of restrictions relating to such project, which restrictions shall constitute a lien upon each condominium in the project, and shall insure to and bind all condominium owners in the project. Such liens, unless otherwise provided, may be enforced by any condominium owner in the project or by the management body of such project. The Register of Deeds shall enter and annotate the declaration of restrictions upon the certificate of title covering the land included within the project, if the land is patented or registered under the Land Registration or Cadastral Acts.

The declaration of restrictions shall provide for the management of the project by anyone of the following management bodies: a condominium corporation, an association of the condominium owners, a board of governors elected by condominium owners, or a management agent elected by the owners or by the board named in the declaration. It shall also provide for voting majorities quorums, notices, meeting date, and other rules governing such body or bodies condition.

Such declaration of restrictions, among other things, may also provide: (a) As to any such management body;

(1) For the powers thereof, including power to enforce the provisions of the declarations of restrictions;

(2) For maintenance of insurance policies, insuring condominium owners against loss by fire, casualty, liability, workmens compensation and other insurable risks, and for bonding of the members of any management body;

(3) Provisions for maintenance, utility, gardening and other services benefiting the common areas, for the employment of personnel necessary for the operation of the building, and legal, accounting and other professional and technical services;

(4) For purchase of materials, supplies and the like needed by the common areas;

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(5) For payment of taxes and special assessments which would be a lien upon the entire project or common areas, and for discharge of any lien or encumbrance levied against the entire project or the common areas; (6) For reconstruction of any portion or portions of any damage to or destruction of the project;

(7) The manner for delegation of its powers;

(8) For entry by its officers and agents into any unit when necessary in connection with the maintenance or construction for which such body is responsible;

(9) For a power of attorney to the management body to sell the entire project for the benefit of all of the owners thereof when partition of the project may be authorized under Section 8 of this Act, which said power shall be binding upon all of the condominium owners regardless of whether they assume the obligations of the restrictions or not.

(b) The manner and procedure for amending such restrictions: Provided, That the vote of not less than a majority in interest of the owners is obtained.

(c) For independent audit of the accounts of the management body;

(d) For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owners fractional interest in any common areas;

(e) For the subordination of the liens securing such assessments to other liens either generally or specifically described;

(f) For conditions, other than those provided for in Sections eight and thirteen of this Act, upon which partition of the project and dissolution of the condominium corporation may be made. Such right to partition or dissolution may be conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified inadequacy of insurance proceeds, or upon specified percentage of damage to the building, or upon a decision of an arbitrator, or upon any other reasonable.

QUESTIONS TYPICALLY ASKED BY A PERSON WHO WANTS TO

START A CONDOMINIUM PROJECT

o Question # 1 If I want to start a condo project, what process must I go through?

PD 957 Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for violations thereof

Each condo project is required to be registered with HLURB by filing a sworn statement in the prescribed form. The project, along with the building plans, in accordance with the National Building Code, are submitted for approval. Further, all contracts, deeds of sale and other documents are also required to be registered by the seller in the office of the Register of Deeds in the city or province where the property is located.

Before you can sell, you must be registered and licensed to sell

o Question # 2 I have a lot with an existing building. Can I convert it into a condominium project? PD 957 Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for violations thereof Existing structures can be converted to condominiums upon application with the HLRUB and compliance with the requirements of condominium laws

o Question # 3 What are the documents must I take note of as an owner of a condominium project? MASTER DEED

Sec. 4. The provisions of this Act shall apply to property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds of the province or city in which the property lies and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts, an enabling or master deed which shall contain, among others, the following:

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MASTER DEED must contain:

(a) Description of the land on which the building or buildings and improvements are or are to be located;

(b) Description of the building or buildings, stating the number of stories and basements, the number of units and their accessories, if any;

(c) Description of the common areas and facilities;

(d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project. Where title to or the appurtenant interests in the common areas is or is to be held by a condominium corporation, a statement to this effect shall be included;

(e) Statement of the purposes for which the building or buildings and each of the units are intended or restricted as to use;

(f) A certificate of the registered owner of the property, if he is other than those executing the master deed, as well as of all registered holders of any lien or encumbrance on the property, that they consent to the registration of the deed;

(g) The following plans shall be appended to the deed as integral parts thereof:

(1) A survey plan of the land included in the project, unless a survey plan of the same property had previously bee filed in said office; (2) A diagrammatic floor plan of the building or buildings in the project, in sufficient detail to identify each unit, its relative location and approximate dimensions;

(h) Any reasonable restriction not contrary to law, morals or public policy regarding the right of any condominium owner to alienate or dispose of his condominium.

DECLARATION OF RESTRICTIONS

Sec. 9. The owner of a project shall, prior to the conveyance of any condominium therein, register a declaration of restrictions relating to such project, which restrictions shall constitute a lien upon each condominium in the project, and shall insure to and bind all condominium owners in the project. Such liens, unless otherwise provided, may be enforced by any condominium owner in the project or by the management body of such project. xxx

o Question # 4 What must be annotated on the CTC of the land?

Sec. 4. The provisions of this Act shall apply to property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds of the province or city in which the property lies and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts, an enabling or master deed

Sec. 18. Upon registration of an instrument conveying a condominium, the Register of Deeds shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of title covering the land included within the project and the transferee shall be entitled to the issuance of a condominium owners copy of the pertinent portion of such certificate of title. Said condominium owners copy need not reproduce the ownership status or series of transactions in force or annotated with respect to other condominiums in the project. A copy of the description of the land, a brief description of the condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the condominium owners copy of the certificate of title. No conveyance of condominiums or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project.

o Question # 5 What if due to some unfortunate circumstance, the building was damaged, more than 12 of the units becomes

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untenatable and some of the owners are opposed to repair, what actions may we take?

ACTION FOR PARTITION

Sec 8. Where several persons own condominiums in a condominium project, an action may be brought by one or more such persons for partition thereof by sale of the entire project, as if the owners of all of the condominiums in such project were co-owners of the entire project in the same proportion as their interests in the common areas: Provided, however, That a partition shall be made only upon a showing:

(a) That three years after damage or destruction to the project which renders material part thereof unit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction, or

(b) That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that condominium owners holding in aggregate more than thirty percent interest in the common areas are opposed to repair or restoration of the project; or

(c) That the project has been in existence in excess of fifty years, that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or

(d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than seventy percent interest in the common areas are opposed to continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or

(e) That the conditions for such partition by sale set forth in the declaration of restrictions, duly registered in accordance with the of this Act, have been met.

VOLUNTARY DISSOLUTION

Sec 13. Until the enabling or the master deed of the project in which the condominium corporation owns or holds the common area is revoked, the corporation shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of Court except upon a showing:

(a) That three years after damage or destruction to the project in which the corporation owns or holds the common areas, which damage or destruction renders a material part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or

(b) That damage or destruction to the project has rendered one-half or more of the units therein untenantable and that more than thirty percent of the members of the corporation, if non-stock, or the shareholders representing more than thirty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the project, or (c) That the project has been in existence in excess of fifty years, that it is obsolete and uneconomical, and that more than fifty percent of the members of the corporation, if non-stock, or the stockholders representing more than fifty percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the project; or

(d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the members holding in aggregate more than seventy percent interest in the corporation, if non-stock, or the stockholders representing more than seventy percent of the capital stock entitled to vote, if a stock corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or

(e) That the conditions for such a dissolution set forth in the declaration of restrictions of the project in which the corporation owns of holds the common areas, have been met.

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o Question # 6 Are there other ways to dissolve a condo corporation? INVOLUNTARY DISSOLUTION

Sec. 12. In case of involuntary dissolution of a condominium corporation for any of the causes provided by law, the common areas owned or held by the corporation shall, by way of liquidation, be transferred pro-indiviso and in proportion to their interest in the corporation to the members or stockholders thereof, subject to the superior rights of the corporation creditors. Such transfer or conveyance shall be deemed to be a full liquidation of the interest of such members or stockholders in the corporation. After such transfer or conveyance, the provisions of this Act governing undivided co-ownership of, or undivided interest in, the common areas in condominium projects shall fully apply.

BY AFFIRMATIVE VOTE

Sec. 14. The condominium corporation may also be dissolved by the affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for the purpose: Provided, That all the requirements of Section sixty-two of the Corporation Law are complied with.

o Question # 7 What happens after you voluntarily dissolve a condominium corporation? Sec. 15. Unless otherwise provided for in the declaration of restrictions upon voluntary dissolution of a condominium corporation in accordance with the provisions of Sections thirteen and fourteen of this Act, the corporation shall be deemed to hold a power of attorney from all the members or stockholders to sell and dispose of their separate interests in the project and liquidation of the corporation shall be effected by a sale of the entire project as if the corporation owned the whole thereof, subject to the rights of the corporate and of individual condominium creditors.

o Question # 8 Can I sell the common areas of condominium

SEC 16: A condominium corporation may not sell, exchange, lease or otherwise dispose of the common areas unless authorized by a simple

majority of the registered owners, subject to the final approval of HLRUB.

Amendment (RA 7899)--provided that prior notification to all registered owners are done; and provided, further that the condominium corporation may expand or may 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 HLURB

o Question # 9 Can the court order the reorganization of the condominium project upon action for partition or dissolution?

Sec. 23. Where, in an action for partition of a condominium project or for the dissolution of condominium corporation on the ground that the project or a material part thereof has been condemned or expropriated, the Court finds that the conditions provided for in this Act or in the declaration of restrictions have not been met, the Court may decree a reorganization of the project, declaring which portion or portions of the project shall continue as a condominium project, the owners thereof, and the respective rights of said remaining owners and the just compensation, if any, that a condominium owner may be entitled to due to deprivation of his property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate the same on the pertinent certificate of title.

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7) LEASE An agreement whereby one person (lessor) binds himself to grant

temporarily the enjoyment or use of a thing or to render some work or service to another (lessee) who undertakes to pay rent, compensation or price therefore.

Kinds of Lease according to Subject Matter: o Lease of Things

Essence of Lease Subject-matter of Lease Ownership of the things Consideration Period of Lease

o Lease of Work o Lease of Service

A contract of lease has three elements: o Consent o Object o Cause

v RENT CONTROL ACT Approved by President Arroyo on July 14, 2009 Supposed to expire on December 31, 2013 but was extended for

two (2) more years up to December 2015 Purpose and Aim:

o To help poor families renting homes incurring more expenses amid an economic slowdown

o A mechanism that ensures affordable housing o Safeguards qualified lessees from arbitrary rent

increase and corollary ejection Coverage:

o All Residential units NCR and other highly urbanized areas where monthly rent is from P1.00 P10,000.00 as of the effectivity of the act, without prejudice to existing contracts

o In all other areas where the total montly rent is P1.00 P5,000.00 as o the effectivity of this act, without prejudice to existing contracts

Exemptions o Those whose total monthly rents do not fall

within the ranges stated reckoned from the effectivity of the Act.

o Those who are still bound by existing lease contracts with their lessees

Rent: The amount paid for the use or occupancy of a residential unit whether the payment is made on a monthly or other basis

Residential Units o Apartment, house and/or land on which

anothers dwelling is located and used for residential purposes

o Buildings or part or units of such buildings used solely as dwelling places, boarding houses, dormitories, rooms and bedspaces offered for rent by their owners, except motels, motel rooms, hotels and hotel rooms;

o Buildings or part of such buildings used for home industries, retail stores or other business purposes, if the owner and his/her family actually live in them and use them principally for dwelling purposes.

Salient Features o Limitations on Rent Increase o For 1 year from laws effectivity, NO INCREASE

shall be imposed on rent of any residential unit covered by law

o Rent CANNOT be increased by more than 7% annually as long as the unit is occupied by the same lessee

o In case of boarding houses, dormitories, rooms and bedspaces offered for rent to students, the rent cannot be increased more than once per year

o When the unit becomes vacant, the lessor may set the initial rent for the next lessee

o Payment of Rent o Should be paid in advance within the first five

(5) days of every current month or the beginning of the lease agreement, unless the lease contract provides for a later date of payment

o Lessor cant demand > 1 month advance o Deposit o Lessor cant demand > 2 months deposit o Deposit be kept in a bank under lessors account

name for the entire duration of the lease

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agreement. Any interest that may accrue on the deposit will be given to the lessee when the lease expires

o If lessee fails to pay rent or utility bills, destroys any house components and accessories, said deposit and interest will be forfeited in favor of the lessor in the amount commensurate to the pecuniary damage

o Assignment of Lease and Sublease o Lessee cannot assign the lease over the whole or

any portion of the residential unit, without the written consent of the owner/lessor

o Lessee cannot sublease the whole or any portion of the residential unit, without the written consent of the owner/lessor

o The lessee cannot accept borders or bedspacers without the written consent of the owner/lessor

o Grounds for Ejectment o Assignment of lease or subleasing, including the

acceptance of borders or bedspacers without the written consent of the owner/lessor

o 3 months arrears in the payment of rent o Legitimate need of the lessor/owner to reposess

the leased property for his/her own use, or for the use of any immediate member of his/her family, as a residential unit

Provided: o Lease has expired o Formal notice 3 months in

advance; and o Owner/Lessor cannot lease

the property or allow 3rd person to use it for at least 1 year from time of reposession

o Lessors need to make necessary repairs of the leased property by reason of an existing order of condemnation issued by appropriate authorities.

First preference to ejected lessee but if unit is completely demolished, no 1st preference

o Expiration of the leased contract

o Remedy of the Lessee o With notice to the lessor and within 1 month

from the lessors refusal, the lessee may deposit the amount in the lessors name:

In court With city or municipal treasurer Barangay Chairman Bank

o Afterwards, the lessee should deposit the rent within 10 days of every current month Note: failure to deposit the rent for 3 months is a ground for ejectment

Other Concerns o Question: Can the lessor eject the lessee when

the leased premises are sold or mortgaged? o Answer: No, the lessor or his successor-in-

interest cannot eject the lessee on the ground that the leased premises have been sold or mortgaged to a third person

o The prohibition applies whether the lease or mortgage is registered or not

o Question: Does Art 1673 (1) of the Civil Code still apply?

o Answer: Except when the lease is for a definite period, insofar as it refers to residential units covered by the Rent Control Act, it is SUSPENDED during the effectivity of the law

o Question: Is there any penalty for a violation of the Rent Control Act?

o Answer: Yes. A fine of not less than P25,000.00 but not more than P50,000.00 or imprisonment of not less than 1 month and 1 day to not more than 6 months, or both.

v INVESTORS LEASE ACT (R.A. 7652) Who may lease?

o Any foreign investor investing in the Philippines. (Sec. 4)

Why? To encourage foreign investments in the Philippines

investing in the Philippines making an equity investment in the

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Philippines through actual remittance of foreign exchange or transfer of assets, upon registration with the SEC.

Conditions of the Lease:

o Lease contract shall be for a period of 50 years, renewable once for a period of 25 years.

o Leased area must be used solely for the purposes of the investment;

o Leased premises shall comprise such area as the purpose of the investment requires, subject to the CARL and Loc. Government Code

Limitations:

o Foreign individuals, corporations, associations, or partnerships not otherwise investing in the Philippines shall be covered by P.D. 471

o Duration of leases of private lands to aliens or alien-owned corporations, associations or entities not qualified to acquire land in the Philippines shall be 25 years, renewable for another 25 years upon mutual agreement of both lessor and lessee.

The following acts shall warrant ipso facto termination of the lease agreement:

o Withdrawal of the approved investment in the Philippines

o Withdrawal shall mean either: Failure to operate the investment

project for any three consecutive years Outright abandonment of the

investment project Failure to pay rent for three

consecutive months coupled with the failure to operate the investment project

o Use of the leased area for the purpose other than that authorized

o The termination of the lease agreement is without prejudice to the right of the lessor to be compensated for the damages he may have suffered.

Any lease agreement which is renewable at the option of the lessee shall be interpreted to mean as renewable upon the mutual agreement of the parties

In addition to the renewal of the contract of lease, the foreign lessee must show that it has made social and economic contributions to the country.

In the case of tourism projects, investment must be not less than $5 Million U.S. Dollars, 70% must be infused in said project within three years from the signing of

Termination of Lease o Secretary of Trade and Industry shall terminate

any lease contract if the investment is not initiated within three years from the signing of the lease contract.

Penal Sanctions o Any contract made in violation of this law shall

be null and void ab initio. o Both contracting parties shall be punished by: o Fine of not less than P100,000 and not more

than P1,000,000 o Imprisonment of 6 months to 6 years o Or both o Violations shall include o Lease agreement duration is more than 50 years o Use of land is contrary to existing laws of the

land, public order, public policy, morals or good customs

o Any agreement in excess of the leased land approved by DTI

If the excess is due to the acts of the lessee, lessee alone shall be held liable

In case of corporations, officers liable shall bear the criminal liability

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8) LINA LAW

v R.A. 7279 Urban Development and Housing Act of 1992

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

o Governing Law on the subject matter of "squatting" in the Philippines.

o Governs the local expropriation of property for purposes of urban land reform and housing.

o Eviction and demolition of informal settlers o Consolidation of House Bill No. 34310 and Senate Bill No. 234,

signed into law by President Corazon C. Aquino on 24 March 1992.

HISTORY o 1975 PD 772: Penalizing squatting and other similar acts by

former President Marcos o 1997 RA 8368: Anti Squatting Law Repeal Act o 1992 LINA LAW

INTENT o Decriminalize squatting but doesnt encourage it either o Provide genuine urban housing o Penalize professional squatters and Squatting syndicates

Article XIII, 1987 Constitution Section 9. The State shall, by law, and for the common good, undertake, in cooperation with the private sector, a continuing program of urban land reform and housing which will make available at affordable cost, decent housing and basic services to under-privileged and homeless citizens in urban centers and resettlement areas. Section 10. Urban or rural poor dwellers shall not be evicted nor their dwelling demolished, except in accordance with law and in a just and humane manner. No resettlement of urban or rural dwellers shall be undertaken without adequate consultation with them and the communities where they are to be relocated.

Declaration of State Policy and Program objectives (sec 2) a) Uplift the conditions of the underprivileged and homeless citizens in urban areas and in resettlement areas b) Provide for the rational use and development of urban land in order to bring about the following:

o (1) Equitable utilization of residential lands in urban and urbanizable areas with particular attention to the needs and requirements of the privileged and homeless citizens and not merely on the basis of market forces;

o (2) Optimization of the use and productivity of land and urban resources;

o (3) Development of urban areas conducive to commercial and industrial activities which can generate more economic opportunities for the people;

o (4) Reduction in urban dysfunctions, particularly those that adversely affect public health, safety and ecology; and

o (5) Access to land and housing by the underprivileged and homeless citizens.

c) Adopt workable policies to regulate and direct urban growth and expansion towards a dispersed urban net and more balanced urban-rural interdependence; d) Provide for an equitable land tenure system that shall guarantee security of tenure to Program beneficiaries but shall respect the rights of small property owners and ensure the payment of just compensation; e) Encourage more effective peoples participation in the urban development process; and f) Improve the capability of local government units in undertaking urban development and housing programs and projects.

Informal Settlers o households occupying a lot o rent-free without the consent of the owner. (National Census

Office) o UDHA does not use the term squatters but HOMELESS AND

UNDERPRIVILEGED CITIZENS

Professional squatters o to individuals or groups who occupy lands without the express

consent of the landowner and who have sufficient income for legitimate housing.

o persons who have previously been awarded home lots or housing

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units by the Government but who sold, leased or transferred the same to settle illegally in the same place or in another urban area, and non-bona fide occupants and intruders of lands reserved for socialized housing.

NOTE: shall not apply to individuals or groups who simply rent land and housing from professional squatters or squatting syndicates;

Squatting Syndicates - groups of persons engaged in the business of squatter housing for profit or gain

Urban areas - refers to all cities regardless of their population

density and to municipalities with a population density of at least five hundred (500) persons per square kilometer;

Urbanizable areas refers to sites and lands which, considering

present characteristics and prevailing conditions, display marked and great potential of becoming urban areas within the period of five (5) years;

Underprivileged and homeless citizens - the beneficiaries of this

Act and to individuals or families residing in urban and urbanizable areas whose income or combined household income falls within the poverty threshold as defined by the National Economic and Development Authority and who do not own housing facilities. This shall include those who live in makeshift dwelling units and do not enjoy security of tenure;

MISCONCEPTIONS o Squatting for more that 5-10 years grant ownership. o Squatters need to consent with their relocation site. o Land owners have to pay a disturbance fee. o Land owners have to provide relocation. o Government has to provide free housing or squatters are entitled as

a matter of right to free housing. o Socialized housing always includes a house and lot.

COVERAGE

The Program shall cover all lands in urban and urbanized areas, including existing areas for priority development sites, and in

other areas that may be identified by local government units as suitable for socialized housing (Section 4)

EXEMPTIONS (SEC5) o Those included in the coverage of the Comprehensive Agrarian

Reform Law o Those actually used for national defense and security of the State o Those used, reserved, or otherwise set aside for government

offices, facilities and other instrumentalities (however those not used for the past 10 years shall be covered)

o Those used or set aside for parks, reserves for flora and fauns, forests and watersheds, and other areas necessary to maintain ecological balance

o Those actually and primarily used for religious, charitable, or educational purposes, cultural and historical sites, hospitals and health centers, cemeteries and memorial parks

o When the purpose of the exempted lands cease, so does the exemption.

National Urban Development and Housing Framework o To be formulated by the Housing and Land Use Regulatory Board

under the direction of the Housing and Urban Development Coordinating Council in coordination with all local government units and other concerned public and private sectors within one (1) year from the effectivity of this Act.

o Refers to the comprehensive plan for urban and urbanizable areas aimed at achieving the objectives of the Program.

BENEFICIARIES o Genuine squatters people who really cannot afford housing o Property owners especially those victims of syndicates

ACTORS o Key housing agencies o HUDCC (Housing and urban development coordinating council) o NHA (National housing authority) o HIGC o HLURB (Housing and land use regulatory board) o NHMFC o LGUs o NEDA o Private sector

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o Project beneficiaries

STRATEGIES o Land acquisition o People o Balanced housing strategies o Urbanization issue o Systematized research and development

DESIGN o Design standards o Innovative materials o Mismatch between units and beneficiaries Cost reductions and

engineering parameters Common facilities o Local context o Maintenance concerns o Location

STEPS

1. Inventory of lands 2. Identification of Sites for Socialized Housing 3. Order of Acquisition of Land 4. Modes of Land Acquisition 5. Expropriation of Idle Lands 6. Disposition of lands for socialized housing 7. Valuation of lands

1. Inventory Of Lands (Sec. 7)

a) Residential lands; b) Government-owned lands, whether owned by the National Government or any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations and their subsidiaries; c) Unregistered or abandoned and idle lands; and d) Other lands.

HLURB and other government agencies shall indicate:

o type of land use o degree of land utilization o other information necessary o furnish copy to LGU which shall be updated every 3

years.

2. Identification Of Sites For Socialized Housing (Sec. 8) Identify lands for socialized housing and resettlement areas for the immediate and future needs of the underprivileged and homeless in the urban areas, taking into consideration the degree of availability of basic services and facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual number of registered beneficiaries. Government owned lands which have not been used for its purpose for 10 yrs shall be transferred to NHA 3. Order Of Land Acquisition (Sec. 9) Lands for socialized housing shall be acquired in the following order:

o Those owned by the Government or any of its subdivisions, instrumentalities, or agencies, including government owned and controlled corporations and their subsidiaries

o Alienable lands of public domain Unregistered or abandoned and idle lands Declared Areas

o BLISS o Private Lands

4. Methods Of Land Acquisition (Sec. 10)

o Community mortgage o Land swapping o Land assembly or consolidation o Land banking o Donation to the Government Joint venture agreement Negotiated

purchase Expropriation

5. Expropriation Of Idle Lands (Sec.11) o All idle lands in urban and urbanizable areas shall be expropriated

and shall form part of the public domain. o After the lapse of one (1) year following receipt of notice of

acquisition, the owner fails to introduce improvements as defined in Section 3(f) hereof, except in the case of force majeure and other fortuitous events.

6. Disposition Of Lands For Socialized Housing (Sec. 12) o develop schemes o shall not be limited to those involving transfer of ownership in fee

simple but shall include lease, with option to purchase, usufruct or such other variations as the local government units or the

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National Housing Authority may deem most expedient in carrying out the purposes of this Act.

7. Valuation Of Lands

o Set by Department of Finance on the basis of the market value reflected in the zonal valuation, or in its absence, on the latest real property tax declaration.

SOCIALIZED HOUSING Socialized housing shall be the primary strategy in providing shelter for the underprivileged and homeless.

WHO ARE THE BENEFICIARIES? To qualify for the socialized housing program, a beneficiary:

o Must be a Filipino Citizen o Must be an underprivileged or homeless citizen o Must not own any real property whether in the urban or rural areas o Must not be a professional squatter or member of squatting

syndicates

BALANCED HOUSING DEVELOPMENT Developers of proposed subdivision projects shall be required to develop an area for socialized housing equivalent to 20% of the total subdivision area or total subdivision project cost, at the option of the developer.

BALANCED HOUSING DEVELOPMENT May be complied with by: o Development of new settlement; o Slum upgrading or renewal of areas for priority development o Joint venture projects with either the local government units or any

of the housing agencies o Participation in the community mortgage program

INCENTIVES FOR PARTICIPATION

Incentives shall be extended to the private sectors to encourage greater participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless

BASIC SERVICES o Potable water o Power and electricity and an adequate power distribution system o Sewerage facilities and an efficient and adequate solid waste

disposal system o Access to primary roads and transportation facilities

URBAN RENEWAL AND RESETTLEMENT o This shall include rehabilitation and development of blighted and

slum areas and the resettlement of Program beneficiaries. o On site development shall be implemented whenever possible to

ensure minimum resettlement from existing places of occupancy. o Resettlement only when on-site development is not feasible

ACTION AGAINST PROFESSIONAL SQUATTERS AND SQUATTING

SYNDICATES o Summarily evicted and their dwellings or structures demolished.

Any person or group identified as such shall be disqualified from the benefits of the program.

o 6 years imprisonment and a fine not less than P60,000 but not more than P100,000

WHEN EVICTION AND DEMOLITION ALLOWED o When persons or entities occupy danger areas o When government infrastructure projects with available funding are

about to be implemented o When there is a court order

GUIDELINES IN EXECUTION OF EVICTION OR DEMOLITION ORDERS

The following shall be mandatory: o Notice upon the effected persons at least 30 days prior o Adequate consultation on matter of settlement o Presence of local government officials during demolition or eviction o Proper identification of all persons taking part o Only during regular office hours o No use of heavy equipment, except of permanent structures and of

concrete materials o Proper uniforms of the PNP who shall occupy the first line of law

enforcement o Adequate relocation, whether temporary or permanent

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REMEDIES o Criminal prosecution in cases of:

Trespass to Property Occupation of Real Property or Usurpation of Real Rights

in Property ROC; Forcible entry and unlawful detainer

o Civil Code: Civil liability for damages Section 28. Eviction and Demolition

COMMUNITY MORTGAGE PROGRAM

The Community Mortgage Program (CMP) aims to improve the living conditions of homeless and underprivileged citizens by providing them affordable financing with which they can secure tenure on the land they occupy. The CMP is a mortgage financing program which assists legally organized associations of residents of blighted or depressed areas to own the lots they occupy, providing them security of tenure and eventually improve their neighborhood and homes to the extent of their affordability.

CMP PROJECT CLASSIFICATION ON-SITE o Members of the Community Association (CA) are already

living/residing in the project site

o The community has been in existence for five (5) years; 85% of the total number of members should have a residency of 5 years;

o At least 85% occupancy rate at the time of application and 100%

after two (2) years from loan release Maximum of 200 beneficiaries 100% appraisal

OFF-SITE o Homogenous group living outside the project area but has to be

relocated due to any of the following reasons: o Beneficiaries living in danger zones/areas; o Beneficiaries affected by government infrastructure project; and o Beneficiaries with threat of eviction or actual ejectment thru a

case/court order Maximum of 200 beneficiaries 100% appraisal

CMP LOAN COLLATERAL

The land to be acquired by the Community Association (CA) shall serve as the CMP loan collateral, and will be acceptable if the following criteria are met:

1. The title to the land is free from all liens and encumbrances at the time of release of the CMP loan; 2. The land is not classified as agricultural; 3. The land is not within environmentally-constrained/ hazardous or high-risk areas as certified by the DENR and the concerned local government unit; 4. The land has a road right of way or an access road lot to a city, municipal or barangay road; and 5. The landowner should have the legal capacity to sell or transfer the subject property for loan collateral under the CMP.

ELIGIBILITY OF CMP BORROWERS 1. Filipino citizen, of legal age (18) at the time of the loan application and shall not be more than 60 years old upon loan release; 2. Certifies under oath that he/she has not been a recipient of any CMP loan or other govt. housing programs. Does not own or co-own a real property and is not a professional squatter as defined in RA 7279; 3. Must be a structure owner, a renter or a sharer at the site.

http://shfcph.com/Programs&Services_CMP_Fastfacts.html

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