Republik& rig Pillpipas .K-AGAWARAIKNG KATARUNGAN

Department of Justice

hAugust 1995

Mr. Ernesto C.,Men ,Commissioner and CNAUfWea015%ipfficer i HousingflendeLaCd Ose:-Reilitat'OrY713Oard NHA Compound Elliptical-Road cot Kal a vaan Avenue Diliman, Quezon C

Si r: At , , •

This has reference to-your-request for opinion regarding the -.1eggaanfAbOuurrent practice of the Register OfeDeediaARDS), of • treating a subdivision plan- with nine 191 sublots or less as simple plan and not a subdivision project and therefore, does not require registration with the Housing and Land Use Regulatory Board (HLRB)".

You state that the RDs apparently base the said practice on LRC (now LRA) Circular No. 301 dated October• 13, 1976, particularly par_ 2(c) and (d), thereof, which state that:

"(e) Non -subdivinton prolent,, Notwithstanding the passage . of, Presidential Decree No. 957, which took effect on July 13, 1976, the Commissioner: of .Land; Registration retains.- jurisdiction to approve simple or complex subdivision plans of registered lands,i.under Section 44 of Act No. 496, as•amended)by;Republic Act No_ 440, unless said plans refer to a subdivision project -or projects as defined in Section 2(d) of said Presidential Decree.No, 957_

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-(d) ,'Not more than nine. lots_ The owner of a parcelcof land who desires to subdivide his. land. into two Or rx,ns individual ,lots, not exceeding nine in , number, : ..priMarily for residential, commercial, industrial or recreational purposes,- shalleubmit his- • subdivision,- plan Ear • Approval to the Land Registration Commission under Section 44

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OPINIVii 4. 83 s.19 g ,

of Act No.. '196, as amended by Republic Act No. 440, or to,thereau of Lands under Section .53 Of:A8flo. 496."

- It is your SubmisSiOn that the aforesaid,'

practice not only ::,aontraVOnes the concept of subdivision project as defined. under PAL No. 957 butt also violates Sections,4_,and5 thereof, the pertinent provisions of which provide: -

Section 4_ registration of nroJerts. - The registered oWner:.:cifja parcel of 1.1nd who wishes. to convert the same Irk i a subdivision: project - shall submit his subdivision nlan to the Authority (now HLRB) which shall act upon and approve the same, upony,t0t94..s0 nfi the plan complies with the's4pSu Ini;; Standards. and Regulatione46morosanAevat the time the plan is subMieteat_71*Q swine- procedure shall he followed ihithe'-'6ese of a plan for a condominium :project x x x - , .

The subdivision plan, as so approved, shall then besubMitted to the Director of Lands. for approval 'tin Accordance with the procedure Prescribed in Section 44 of the: Land Registration Act (Act No. 496, aa amended .by A.A. No. 446) Provided, that in case of comPlex subdivision plans, court approval *hell no longer be required. x x

The owner or ,thereal, estate dealer interested in the 'dale Of lots or units, respectively, in such subdivision project or condominium project Shall register the DroJect with the Authority by filing therewith athworn registration statement containing the IO116wineinformation:

4,0 ,e 140' ;1.4",41 •

X X X X X X x x x "_

The subdivision project or the condominium pinjeCt shall be deemed registered upon cdmpletion of the above publication requirement. The fact of such registration Shall be evidenced by a registration certificate to be issued . to the applicant-owner or dealer". (Emphasis supplied.)

"Section 5_ Lioone to Sell -

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OPINION NO: e; ;KIS

, ' "Section: 51 1,1cense to Sell - Such owner or dealer?telkWhom has been issued a regletratidn-agificate shall not, however, be: authorfied to sell any subdivision., lot or,condeminium unit in the registére 'project<:jj1iess he vball. have first*ibtainedaii: cense to sell the project.witbinHtho' Wks from the règistratjo Cit

The pon :proper application therefor, shall issue La such owner OrTheeler:Of1 a registered

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project a license to Sell the project if, after an examination of the registratio tementn ed by said owner or „eoli;:10NtrilhO pertinent documents 4e*iplat i thereto, he is convinced that iaownerbr dealer Is of good repute, that his businesg is financially stable, and that the proposed sale of the subdivision lot e or condominium unite to the public would not be fraudulent.-

7 We are. not fullY Stare of the facts which, gav4 e

rise to the present query_ However, from a copy Of your follow-up letter dated January 16, 1995 addressed to LEA Administrator Reynaldo Y_ Mauli];, which you have enclosed in your basic letter, ' would seem that the, lasue had arisen from an ,allegsf1 letter of the Mato a certain Mrs. Elsa C.. Figueroa "advising her that the :Certificate of registration from this Board [BLS) loner required in the issuance of the Transfer Certificates of Title involving nine (9) sublots covered by TCT No T-148933 which was approved as a non-subdiyieion Project under subdivision plan (1,RAU Ped-315)601 (emphasis ours). In Yeur'said - follow-up letter, i -J43 reiterated Your request, embodied in your previoue letter to the. LEA dated December 8, 1994, that LEA "inform all registrarst of,thaFegisteru of Deeds that subdivision proJecte- 'with or' without improvements thereon and regardless of the number of sublote must be registered with this Board with a Certificate of Registration as proof thereof". (Emphasis ours;)

On the assumption that the foregoing is e correct appreciation of the premises which gave rise to your present query; _our ',.View is that both positions of the LRA'and your' office .(HLRB) are correct and that there need only be a further

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clarification andr• a.clearer-nnderstanding of your respective powers and. authorities under existing laws for your office an ,the.-LRAtn4ihe able to function harmoniously..

The LRA and:, h JILRfff ;Thoth empowered to approve subdivision plans* whether, simple or complex The power of the LRAproceeds from Section 44 of Act No. 496 (now Section 50 of P.D. No. 1529), which authorizes the LRA to-aPprove. subdivision plans which

involve a Subdivision project_ On the other hand, the power of.therBIRB (formerly NHA) is based on Section 4 of PIM No,. 957,which authorizes the HLRB to approve subdiyision_cplans of subdivision proJects.

Note that 1WWWWS.110V4Mentione letter-advice to Mrsdaiaikiiida;,twas referring to a subdivision plan,aPproved,by,LRA:as a nont,,..ihdivision pro:19ot, While Hlairsrequest to LRA is for RDs to require submission of a Certificate of P-Igistration for a subdivision 'Plan involving a raxii.mittop oroJect, cleat!,' showing no inconsistency in. You* respectiVe- positions. •

A look into the legislative history of the foregoing provisions woUld facilitate a clearer appreciation of the issue at hand_

A• Pursuant to Section 44 of Act No, 496m(old_Larid

Registration Act)* any-owner who wished.. to subdiVid4 registered land into lots shall file a ,mbdisiision plan of such land with thejGeneral Land A gistration Office (now LRA) for approval_ The Registv - of Deeds shall issue the corresponding new certicates of titles for the individual lots based on said approved subdivision plan.

In 1976, P.D. No. 957 was issued :to regulate the sale of subdivision lots and condominium units. Section 4 thereof provides that every subdivision owner or deVeloper of a subdivision project shall submit his subdivision plan. for to the NHA (now IMMO_ There is no provision in P.D. No. 957 which expressly or impliedly removes the authority of the then LRC (now. LRA) to approve subdivision plans which are not subdivision projects. In fact, Section 4 categorically states that the -registered owner of a parcel of land who wishes to convert same intc a subdivision proiept shall submit hr subdivision plan to the Authority (now NLRB), whAcil means that

there is no need to -submit the plan to the BLEB if it does not involve a subdivision+jfrrolect.

Significantly, the LRC."SqContinuing authority to approve subdivision planuallch.do not involve a subdivision project was later expressly recognized In Section 50 of: P.E1 pNo. 1529 (the new Lana Registration Law) which provides:,

-SEC_ 50_ Subdivision and consolidation plans.-.Any owner subd106ing a tract of registered land into lot e wbioh do not constitute aesubdivision pro:, _es defined and , i.rovidtid for,-under P 957, shall shall file with'thel Commissic- of Land Registration or. with the Bur,. ‘ of Lands a.subaBileian-aan"fluch le nn which all boundaries4,5treet5, passags.,va and waterways,:if.any,, shall be distinc:P27 and accurately delineated.

If a subdivision plan, be it simple .or complex, duly approved by' the Commissioner of Land Registration or the Bureau of Lands together with the approved technical deseriptions and the corresponding owner's duplicate certlficate of title is presented for registrati -g. the Register of Deeds shell, without reoniring further court approval of wad

wit Provisions of the LandReaistretion_1(.1, as amended: x x x-. (Emphasis supplied.)

In the light of the foregoing, we agree with the HLRB"s position that since P.D. No. 957 does not specify the number of.. lots: should constitute a subdivision project, there is. no basis to distinguish between a subdivision, plan containing more than nine (9) sublots or one with nine (9) or less sublots for the purpose of determining which office should approve a subdivision plan_ It is believed that he number of sublots covered by.a subdivision plan 7..c immaterial_ What should,be determined is 10-iether the subdivision plan involves acsubdivision 'chzject or not. If it does, thenJILRB should approve it; if it does not, then the ,plan- .should go to [IRA for approval. In both cases; however, the plan shall be submitted, together with the Mother certif.:lc-late -?-,1 title, to the Register,of Deeds of the place wheys the land is situated foryi.egistration and issuance of

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OPINION NO. g &19z1

the corresponding transfer certificates of title for the subdivided Tlots : pursuant to Section 50, in relation to Section 49, of PL). No. 1529.

We are not aware of the mechanics adapted by! the different Registers' of Deeds ha ,!reglsterirg! subdivision plans, Whether appToved fri1;b2, MLPB LZ2ri subdivision projects or:the:tali or oon-sAnt!.virton! projects_ It will de well for the agencies concerned; to sit down together and evelve a procediree which is; acceptable to themendwhich, at the same time, is; not unduly burdensome: : upon • the regthtrants. An affidavit of the interested registered owner that the: subdivision plan : does not involve a robdivision: project could be one of the imposable requiremente: for registering the Plan With the Register of Deeds.

VRIqfg4F777 As to whatASnenbdivision project. Section

2(d) of P.D. No_9571efines'the term as follows:

-(d) Subdivision project shell mean a tract or a parcel of land registered under Act No. 496 which is partitionea prAmarily for residential purposes to iMnridual lots with or without impro - iventr ttltlaeon, and offered to the public ful.: sa cash 1 or installment terms. It shall Aqa:cde all residential, commercial, incluatrI.71 and recreational areas, as well as open spaces and other community and public areas in the project-_ (Emphasis, ours.)

It should be noted, that an important element of the definition of e -subaivision project- is that the individual lots are -offered to the Public for saleT. It has been held that the phrase -sales to the public- does not mean that there be offers or sala to all of the people but only that there be offers i. sales to many of them as contradistinanished from 4 few (Words and Phrases, Vol. 38, p. 270 citing People v. Montague, 274 N.W. 347, 350, 2117. Mit F10).

Your apprehension that a subdiviaina plan with nine (9) lots or less and apprc:s( SE a non-subdivision project by the LRA might be converted and developed as a townhouse or condominium project in violation of P.O.. No. 957 is more apparent than rev._ Clearly, a plan for a condominium project is subject to the approval of the HLRB in the same way that a subdivision plan for a subdivision project is subject to such approval (nee Sec. 4, numa). The Register of

QPINION110.. g3 S. lair-

Deeds shall not be authorized to register a condominium project without the requisite approval of the ULM. So, while it may be possible to initially register a subdiyAsion ji.lan as a non-subdivision project, the develOpMent or conversion of the property into u ,candenainium project, or into a subdivision project for• thiat;; matter, will require HLRB approval under ID.

In other words, a subdivision planapprO1VedLii6 a nen-subdivision project by the LRA ssho:Uldundergo another process of approval by the NLRB under PD. No_ 957 31 he owner of the land shouid. later wiSh to convert-. the same

into a subdivision or 1.a -condOninium project.

Please be guided 'iaccordinglY-

'277yery truly yours, 1

Ton.o 6 I GONA, J Secretary

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KECOVOI atitvo (

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