Module 1

Land Management System

At the end of this module you are expected to:

1. Define Land Management System, Land Tenure, Land Ownership and Title;
2. Familiarize with the Philippines’ Land Resources;
3. Differentiate land conversion from land reclassification;
4. Enumerate different modes of acquiring ownership;
5. Familiarize with the different Act provided by law for land registration; and
6. Identify laws that ensure rational land use and sustainable urban and regional
development.

1.1 Basic Framework of Land Management

The Philippines is an archipelago of 7,107 islands covering 300,000 square kilometers

(30 million hectares) – 298,170 square kilometers of land and 1,830 square kilometers of
water. Under the 1987 Constitution, all public domain lands and natural resources belong to
the State. Public domain lands are classified into agricultural, forest or timber, mineral lands,
and national parks; only public agricultural lands are alienable or may be subject of private
ownership. The Constitution recognizes the rights of indigenous peoples to their customary
ownership of ancestral lands and domains, and the right to self-determination of the Muslim
minority, through the creation of an autonomous region in Mindanao. The Constitution is
supported by a host of laws to secure and protect property rights.
The Philippines has implemented a series of programs to decentralize natural
resources. The country has been a pioneer in efforts to devolve control of rural development
to farmers. Its participatory irrigation efforts in the 1970s, its early successes with community-
based coastal resource management on Apo and Sumilon islands and its legislation on social
and later community forestry provide models for much of Asia. The 1998 law on indigenous
people’s rights has given indigenous communities enormous powers to (re)claim territorial
control (Gollin and Kho 2002). Despite this legislation and various land reforms, however, the
majority of rural people remain landless, and there is a swelling urban population living in
informal settlements. Outdated land administration laws, an inefficient land administration and

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adjudication infrastructure, and a poor land information system have resulted in problems of
fraudulent, overlapping and duplication of land titles and to widespread land-grabbing. They
have also contributed to high transaction costs in securing, registering and transferring
property rights, and to tenure insecurity. Inconsistent legislation and policy declarations have
led to unsustainable land use and conflict over competing land uses. Unequal access to land
and natural resources by poor people is a key driver of conflict and an obstacle to national
development, fueling social unrest and armed uprisings. Indigenous peoples are marginalized
and have been pushed out of their ancestral lands by the government for infrastructure
projects, and by private farming interests and natural resource concession holders. Rural-to-
urban migration and lack of access to land and housing by the poor has led to the swelling of
squatter colonies or informal settlements in public and privately owned lands in urban and
peri-urban areas.

Land management is the process by which the resources of land are put to good
effect. It covers all activities concerned with the management of land as a resource both
from an environmental and from an economic perspective. It can include farming, mineral
extraction, property and estate management, and the physical planning of towns and the
countryside.
It embraces such matters as:
-Property conveyancing, including decisions on mortgages and investment;
-Property assessment and valuation;
-The development and management of utilities and services;
-The management of land resources such as forestry, soils, or agriculture;
-The formation and implementation of land-use policies;
-Environmental impact assessment; and
-The monitoring of all activities on land that affect the best use of that land.

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1.1.1 Land Tenure

In the Philippines, lands are either public domain (State-owned) or privately owned.
Under the 1987 Constitution, only public agricultural lands may be leased up to 1000
hectares to private corporations, and leased up to 500 hectares or acquired by purchase,
homestead or grant of up to 12 hectares by individual citizens (GOP Constitution 1987a, Art.
12, Sec. 3).

The Public Land Act and other special laws grant land patents (e.g., homestead, sales
or free patents) and concessions vesting ownership in individuals and private corporations
upon fulfillment of certain requirements. Under the Comprehensive Agrarian Reform Law,
farmer-beneficiaries are granted: 1) full or absolute ownership in the form of Emancipation
Patents upon full payment of amortizations; or 2) non-absolute ownership in the form of
Certificates of Land Transfer or Certificates of Land Ownership for those still completing
payments. Stock ownership under the Stock Distribution Option is granted to agrarian reform
beneficiaries in large corporate farms. Farm workers in areas within the retention limit of
landowners and in private agricultural lands yet to be acquired by the government are
granted leasehold rights with a 75:25 sharing in favor of the farmer-lessee.

Alienable and disposable lands (which include agricultural lands and reclassified
lands) and privately owned lands (based on State grants or laws passed since colonization)
are subject to: 1) purchase which vests ownership; or 2) lease which vest only the right to
occupy and use for the period agreed upon. In 2003, 64.8% of lands classified as alienable
and disposable were privately owned. Forest lands, including mineral lands and national
parks, belong to the State subject to usufruct and resource utilization rights under certain
conditions (Llanto 2003; GOP Constitution1987, Art. XII, Sec. 2).

Customary ownership rights over ancestral lands are recognized in the Constitution
and Indigenous People’s Rights Act. In addition, the Supreme Court, the highest civil court,
has ruled that colonizers only acquired dominion over unoccupied or unclaimed portions of
the Philippine archipelago, and ancestral lands are deemed private lands based on
customary or native title outside the scope of the Regalian doctrine. Rural migration and
population growth have led to the rise of informal settlements on public lands and idle private

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lands in urban and peri-urban areas. Informal settlers are protected under the Urban
Development and Housing Act from summary evictions and demolitions (GOP 2008g, Cruz
v. Secretary; GOP 2008e).

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 1.1.2 Land Ownership and Title

The word title carries a different meaning under different circumstances. But in legal
speech, generally it is defined as the lawfulcause or ground of possessing that which is ours.
It is that which is the foundation of ownership of property, real or personal (Hunt vs.Easton,
21 N.W. 429, 431); and commonly, the word signifies or istaken to mean as (1) ownership
or, when used with appropriate limiting words, a claim of ownership; or (2) the totality of
evidence,i.e., the operative facts which result in such ownership or on which the claim of
ownership is based. While in the strict sense, the word title is applicable only to real estate,
it is also sometimes used to denote a similar attribute of personal property. When so used,
it has a kindred meaning and contemplates some specific tangible thing having some
resemblance to real property in its characteristics which justifies the borrowing of the term.
It is rarely, if ever, used to denote the ownership of transitory and intangible objects (Jones
vs. Gould, 149 Fed. Rep., 153, 157).

Specifically, one’s title to land is the evidence of his right or of the extent of his interest;
the means whereby the owner is enabled to assert or maintain his possession; the right of
the owner, considered with reference either to the manner in which it has been acquired or
its capacity of being effectively transferred (Robertson vs. Vancleave, 29 N.E. 781). In this
concept, distinction is sometimes made between legal and equitable title. Equitable
ownership means a present title in land which will ripen into “legal ownership’’ upon the
performance of conditions subsequent. But in ordinary acceptation, the term “title to land’’ is
usually taken to mean legal title and is allowed to be used in relation to the title to certain
land.

The Spanish word titulo means, according to Spanish authorities, the cause in virtue
of which anything is possessed and the instrument by which the right is accredited; and, in
Spain and Mexico, they are a class of titles (titulos), not translative of property. But it is to be
applied as well to the term, as to those which confer a mere right of occupancy (De Haro vs.
U.S., 599, 626).

Land rights are acquired from the State by public grant or by operation of law, or from
private transactions or contracts involving private lands. Public grants include:

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 1) land patents (homestead, sales or free patents) or leases conferred under special
laws;

2) royal grants/decrees issued during the colonial period;

3) titles acquired under agrarian reform laws;

4) title acquired under the urban land reform law (which grants the urban poor the right
to purchase home plots in their existing settlements or resettlement areas); and

5) title in the form of Certificates of Ancestral Domain Claim (CADC) and Certificates
of Ancestral Land Claims (CALC) acquired by indigenous peoples under the Indigenous
People’s Rights Act (GOP Civil Code 1949, Book II; GOP Indigenous People’s Right Act
1997).

Land rights are acquired by operation of law through accretion, prescription, hereditary
succession or inheritance, or marriage under the property regime of absolute community of
property (i.e., joint ownership of property brought into the marriage or acquired after). For
private lands, rights may be acquired through voluntary transactions such as sales and
donations, transfer by will, or involuntary transfer such as foreclosure or tax sales. These
transactions are governed by general property and commercial laws (GOP Civil Code 1949,
Books II and PHILIPPINES—PROPERTY RIGHTS AND RESOURCE GOVERNANCE
PROFILE 7 III; GOP Family Code 1987b, Tit. 5 Ch. 3). The 1987 Constitution restricts access
to public lands. Citizens may acquire public lands of not more than 12 hectares by purchase
or land patent, or of no more than 500 hectares by lease. Private corporations must be at
least 60% Filipino-owned and may lease land of not more than 1000 hectares for a period
of 25 years, renewable for the same term. The use of public and private land is subject to
zoning or local land-use classification laws. Foreigners may acquire private land only in
limited circumstances (GOP Constitution 1987a, Art. 7 Sec. 3; Galacio 2008).

The Land Registration Act requires registration of land rights under the Torrens
system. Under this system, the government issues a certificate of title (Torrens title) as proof
of ownership; it is the highest measure of tenure security. Courts have upheld ownership
based on tax declarations, realty tax receipts and transfer deeds. Land rights are secure
insofar as they may be proved or traced back to some State grant or lawful private
transaction (Malenab-Hornilla 2008). An inefficient land administration system contributes to
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 tenure insecurity and high transaction costs in securing, registering and transferring property
rights. It takes between six months to several years to obtain original titles and between
several weeks to a few months to register subsequent transactions. About one-third of
private land parcels in rural areas are untitled (Llanto and Ballesteros 2003).

1.1.3 Land Titling and Registration

Having your own home is the foremost aspiration most Filipinos look forward to, but
there is an aspect that comes after purchasing a property that should not be overlooked—
having proper knowledge with the legal proceedings needed to avoid getting duped by
unreliable people in the near future.
No need to worry, though, because Lamudi is here to save you from the trouble of
going into the business without at least some background knowledge about the necessary
information.
Here are some of the most commonly asked questions about land titles and land
registration:

What is a land title?

A land title is the evidence of the right of the owner or the extent of his/her interest,
and by which means he/she can maintain control and as a rule assert right to exclusive
possession and enjoyment of the property.

Is a land title different from a deed?

Yes, a deed refers to a written document executed in accordance with law, wherein a
person grants or conveys to another a certain land.

How do I know if the land title is real and clean?

Firstly, and most obviously, one must check the quality of the paper used. The forms
used in property titles are exclusively printed by the Bangko Sentral ng Pilipinas. The judicial
form uses a type of paper which contains various security features, with the paper made out
of 50% cotton and 50% chemical wood pulp with colored fibers. The paper has a similar
texture to a bank check. Fake title forms typically use material similar to cartolina or paper of
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inferior quality.

How can one acquire a land title?

The easiest way is through the sale and by executing a document called a Deed of
Sale, which shows the legal transfer of title from the name of the seller to the buyer. The Deed
of Sale is then taken to the Registry of Deed to be officially recorded. This type of title is also
called Transfer Certificate of Title.

What is land registration?

Land registration is the process wherein the state provides a public record of the land
title itself upon which a prospective purchaser or someone else interested may rely on.

What are the basic requirements for registration?

• Original of the deed/instrument. If the original document cannot be presented, the
duplicate original or certified true copy shall be presented together with a sworn
affidavit executed by the interested party stating why the original document cannot be
submitted.
• Certified copy of the latest Tax Declaration of the property.
• If titled property, owner’s copy of the certificate of title, and all issued co-owner’s copy,
if any.

Can land titling be done online?

Yes! With its agency-wide computerization program now in place, the Land
Registration Authority (LRA) has significantly shortened its land titling process to just five
easy steps which can be taken in a single visit to any register of deeds (RD) office anywhere
in the country. The agency has streamlined the processing and issuance of land titles. Here
are the simple steps in applying for a title to a property:
1. Submit the conveyance instrument and all supporting documents to the entry clerk at
the RD. The applicant will receive an electronic primary entry book (EPEB) number,
to confirm receipt of the conveyance instrument and supporting documents.
2. Pay the corresponding fees.
3. The documents will be turned over the examiner who will check if all the requirements
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 have been met, after which the information would be encoded.
4. If the requirements are complete, the RD approves the applicant.
5. A new land title will finally be printed and issued to the applicant.

All things considered, though, it is important that one consults a professional when fixing the
legal proceedings of one’s properties. Better to be safe than sorry, of course when it comes
to serious matters like this that could mean saving yourself from a boat-load of hassle in the
future.

2 Ways to Register Unregistered Lands

1. Judicial Process
This involves filing a petition in court for original registration of title for a property with
no existing title. The claimant must be able to present proof of land possession, along with all
other requirements by the court.
Once the petition has been resolved, the court will order the Land Registration
Authority to issue a decree of registration, and the corresponding original certificate of title
that will be registered with the RD.

2. Administrative Process
This process is coursed through the Department of Environment and Natural
Resources and other agencies that have authority to issue public land title. The claimant can
go to the DENR and apply for a patent.
The application is thoroughly screened, and if found meritorious, a patent title which
has the same function as a Torrens title, is issued and registered with the registry offices.

Land Registration Offices

National Capital Region
Autonomous Region in Muslim Mindanao
SOCCSKSARGEN
Southern Mindanao
Northern Mindanao
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Western Mindanao
Eastern Visayas
Central Visayas
Western Visayas
Bicol Region
Southern Luzon
Central Luzon
Cagayan Valley
Ilocos Region
Cordillera Autonomous Region

LAND REGISTRATION
• A judicial or administrative proceeding whereby a person’s claim over a particular land
is determined and confirmed or recognized so that such land and the ownership
thereof may be recorded in a public registry.
LAND TITLE
• The evidence of the owner’s right or extent of interest by which he can maintain control
and as a rule assert right to exclusive possession and enjoyment of property.

Modes of Acquiring Land Titles:

1. Title by public grant – conveyance of public land by government to a private individual
2. Title by acquisitive prescription – open, continuous, exclusive, notorious possession of a
property
3. Title by accretion – alluvion
4. Title by reclamation – filling of submerged land by deliberate act and reclaiming title thereto;
government
5. Title by voluntary transfer – private grant; voluntary execution of deed of conveyance
6. Title by involuntary alienation – no consent from owner of land; forcible acquisition by state
7. Title by descent or devise – hereditary succession to the estate of deceased owner
8. Title by emancipation patent or grant – for purpose of ameliorating sad plight of tenant-
farmers; not transferable except by hereditary succession

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1.1.4 Land Subdivision

Subdivision is a parcel of land divided from a larger area into lots for purposes,
common purposes are to divide the property among family members and to sell part of it off
for profit. Subdivision approval requires compliance with state law and local ordinances.

To divide the property among family members:

Subdivision of the family home has turned out to be more predominant over the
previous decade as the populace of our capital urban communities develop and as
committees embrace higher-thickness zonings that enable proprietors to cut up their territory
– whether it be a basic hold and assemble or something so.

Table 1. Pros and Cons of dividing the property among family members

Cons Pros
1. It could inhibit the sale price of your 1. A good way to activate under-utilized
existing dwelling. land.

On the off chance that you have a As the populations in our capital cities grow,
substantial home that is 3 or 4 rooms and residential development infill will be needed
suits a vast family, subdividing off the lawn to accommodate future residents. Urban
may lessen the number of forthcoming sprawl is not economically or
purchasers on the off chance that you ever environmentally sustainable as it places a
need to offer the current abiding. For large strain on public infrastructures, such
instance, greater families with a few kids as road and rail, as well as hospitals and
who need a huge house will likewise likely schools. The environment also suffers as
need a major lawn. In any case, if the terrace more land needs to be cleared for housing
has been subdivided off, at that point the on the urban fringe and people make longer
property won’t be as speaking to these commutes in their cars.
purchasers, which could affect any deal cost
later on. 2. Allows empty nesters to downsize without
moving.
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2. It may be better to utilize the equity in your
home rather than subdivide. If your children have grown up and moved
out, you may not need, or want, a big
In case you’re thinking about subdividing backyard – particularly if it’s high
your family home to understand the esteem maintenance. At the same time, you might
and develop your riches, a superior option be reluctant to downsize if it means moving
may be to utilize the value in your home to house. By subdividing your family home,
purchase a speculation property. This would you’ll be able to stay in your house and won’t
enable you to keep your family home as is have the responsibility of maintaining a big
while utilizing the hidden an incentive to put backyard.
resources into another property and
understand the capital additions from the 3. It can provide a financial boost.
two resources.
If you subdivide and sell the land you can
3. You’re not guaranteed a profit. use the profits to grow your property portfolio
by buying an investment property or to use
It’s critical to finish satisfactory research with for personal reasons, such as a holiday.
respect to the related expenses and Alternatively, if you subdivide and build on
expected end estimation of the subdivided the land, you can hold the property and take
land and your home. By finishing an advantage of future capital growth and rental
essential achievability ponder, you ought to returns.
have the capacity to decide whether the
subdivision will be profitable or not.

4. The ATO could become your business

partner

It’s additionally basic to comprehend the

assessment suggestions required with
subdividing your family home. You may
never again be qualified for the central place
of living arrangement exception on the back
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 block. You may find that you create a large
capital gains or income tax bill.

Table 2. Advantages and Disadvantages on selling part of it and off for rent

Advantages Disadvantages
1. Easier to sell/rent 1. Zoning rights

Regardless of whether you sell or rent your Before experiencing any work to subdivide
subdivided units, it is constantly simpler to your property, you have to discover what
discover a purchaser/inhabitant for littler the zoning of your property is. Regularly,
units at a lower value point. For instance, you may need to make an application for
suppose you have a 1800sqm property with re-zoning of your property before you are
an estimation of P7 million – you would legitimately permitted to subdivide. If so, it
think that it’s simpler to offer 2 units of can be an extremely tedious undertaking
600sqm for P3m each (accepting you with no assurance of accomplishment.
would live in the third) than 1 house for
P7m. 2.Upfront costs

2. Avoid transfer duty Construction expenses can be costly.

Contingent upon the conditions of your
When you purchase another property, you property, now and again you can escape
need to pay exchange obligation on a with doing insignificant work to subdivide,
sliding size of up to 13% of the estimation yet by and large, it will require noteworthy
of the property. For instance, purchasing an development. On the off chance that you
P3 million property would cause an are intending to go sectional title and
exchange obligation of P167 500 which the auction the individual units, there are lawful
purchaser is relied upon to pay. By and administrative costs required to agree
subdividing your property and proceeding to enactment. You ought to get your work
to live in a subdivided unit, you can keep done before pulling the trigger and address
away from exchange obligations and other a specialist in your general vicinity to
related expenses. guarantee that you will have the capacity to

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 yield a higher return for the subdivided units
when figuring in the expenses of the
subdivision itself.

3.Time-consuming

Construction requires some investment and

might be a huge burden. Despite the fact
that it might be productive to subdivide, I’d
encourage to first genuinely consider in the
event that you are prepared to submit the
time and exertion that it will take.

You can subdivide your blocks of land depending on:

• Your area’s R codes or Residential Design Codes (R codes basically stipulate the
density of housing allowed in an area along with minimum and average lot sizes)
• Your block size
• The Town Planning Scheme (it varies among councils so important to check)
• The position of existing dwellings
• Minimum lot sizes and frontage requirements
• Any existing easements on your Certificate of Title
• Any environmental constraints

7 Steps to Subdivide your Land

STEP 1: DETERMINE YOUR ABILITY TO SUBDIVIDE

The measure of land that you have to subdivide a property relies upon where you live
and the span of your property. Once you’ve affirmed the size prerequisites with your chamber
contact an expert surveyor to guarantee your property is the right size. While you’re there,
get a citation and a timetable on to what extent it will take to finish.
STEP 2: MEASURE YOUR PROPERTY
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 When you select your preferred surveyor, they will gauge your property and set up an
arrangement for you. As they’re setting up the arrangement, you have to consider in the event
that you have to apply for any building or assets assents. Likewise, consider limit edges that
could affect the working of future houses.
STEP 3: SUBMIT YOUR APPLICATION TO THE COUNCIL
The council will guarantee that your application agrees to their policies and rules. This
is a vital advance for chambers as they need to screen and record the area’s development
and improvement. The gathering may return to you with inquiries concerning your undertaking
and notes of potential issues, for example, noteworthy trees.
STEP 4: APPROVAL FROM THE COUNCIL
At the point when the council is satisfied with your application, they will give consent.
STEP 5: CONTRACTORS BEGIN WORK
Your surveyor would now be able to put in limit pegs and contractors can begin work.
The work required from contractor’s workers can incorporate expanding the carport, moving
your carport or moving channels.
STEP 6: APPLY FOR CERTIFICATION
Once your contractual workers finish their errands, your surveyor can apply to the
gathering for a declaration that checks the sum total of what conditions have been met. Now,
you have to guarantee that your advancement commitment has been paid. An advancement
commitment is paid by everybody who has to arrive subdivided and is put towards
administrations and framework on the board.
STEP 7: YOUR LAND HAS BEEN SUBDIVIDED
You will get an affirmation that perceives the land meets the gathering’s necessities
for subdivision. Your surveyor or specialist will then cabin the review design and will be issued
with new titles for your property. You are currently ready to offer or expand on the new
segments.

Points to Consider when Subdividing

1. Site Area

On your property, you may not realize that in order to have a battle-axe lot, the area
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that constitutes the axe handle cannot be included in the new lot area. All things considered,
gathering enable you to subdivide that land to accomplish a similar number of parcels that
you initially imagined.

2. Zoning

The land which you have, or have recently bought, and need to subdivide is zoned
one of the Environmental Protection Zones under gatherings’ Local Environmental Plan, and
this zone constrains the measure of formative space for another abode inside each new part.
These limitations will affect the improved capability of the site and your financial returns.

3. Access

Your land might be especially steep and just areas of the site will be equipped for
supporting another abode house. You may have incorporated your proposed carport in the
DA intends to the council, however, the council says that the land will be excessively steep,
making it impossible to accommodate appropriate and safe access.

4. Site coverage and landscaped area

You have purchased your land on the understanding that you have enough land zone
to make 5 new allocations. Notwithstanding, council denies your DA in light of the fact that
there isn’t sufficient land region for each new part to accomplish greatest site scope and least
finished region prerequisites.

5. Bushfire

Land named bushfire inclined land has particular controls that must be met before a
sub-division can be affirmed. Particular master reports must be set up by specialists and
frequently the Rural Fire Service should likewise affirm the improvement.

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The Basics of Subdividing Land

The reasons why people choose to subdivide land are, they can sell or develop the
separate parcels for profit, although you may also be interested in the subdivision for gifting
land to family or other purposes. Whatever your reason for subdividing the property, the
following is a guide to how the process works.

1. Make initial plans

In the wake of guaranteeing that there are no liens on the property to be subdivided,
connect with your local planning and development office to get data about relevant limitations
and mandates that you’ll have to conform to.

2. Devise a subdivision plan

With assistance from a developer, civil engineer, or other qualified proficient, design a
plan about how the land will be isolated, including the number of subdivisions, and how streets
and power will achieve the properties.

3. Hire a land surveyor

A land surveyor is expected to make what’s known as a plat map for the property. The
plat guide will demonstrate the partitioned region, including insights about the arrangement
of utilities, sewage, a road network, and so on.

4.Submit documents for approval

The initial plat outline, with other fundamental archives, are submitted for endorsement
to the best possible government organizations. Organization endorsement can take some
time and may require meeting presenting extra materials relying upon the land, your
subdivision designs, and ecological directions.

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Costs of Subdividing Property

It is about difficult to give the exact gauge of the cost to subdivide land colossal scope
of factors become possibly the most important factor. First of all, the span of the property
itself, your area, and how you expect to utilize the property all incredibly impact subdividing
costs. Other land subdivision expenses may include:

1. Land Survey

2. Legal Fees

3. Application Fees

4. Clearing the Site

5. Supplying Utilities

6. Inspection Fees

7. Permit Costs

Understand zoning and other requirements

Regardless of whether there are no laws, contracts or different limitations preventing

you from subdividing the land, local zoning, subdivision and property-improvement laws may
influence your plans. Each region and province has its own zoning regulations, part and
building-estimate confinements and necessities relating to open space. Research these laws
previously putting resources into any plans to subdivide the property. It is conceivable to apply
for zoning changes, which might be conceded if your demand is considered sensible.

• Contact the municipal planning and building department of the township or municipality
to take in the property’s zoning classification. In the event that you can’t discover the
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 data there, investigate nearby laws on sites, for example, State and Local Government
on the Net or the Municipal Code Corporation (Municode).
• Zoning and local principles may influence the way the property can be utilized. The
area may be characterized for single-family residential, multi-family residential,
transitional, or a blended utilize, for example, residential plus commercial

REQUIREMENTS IN APPLYING FOR SIMPLE SUBDIVISION OF LOT

1. Four (4) sets of the following documents duly signed and sealed by a licensed architect or
engineer:
• Site Development Plan (Schematic Plan) showing the proposed layout
• Vicinity Map
2. Four (4) sets of certified true copy of Title(s) and Tax Declaration(s) (Office of the Municipal
Assessor)
3. Original and two (2) photocopies of Real Property Tax Receipt (current year) (Office of the
Municipal Treasurer)
4. Original and two (2) photocopies of Tax Clearance Certificate (Office of the Municipal
Treasurer)
5. Four (4) sets of Deed of Sale/Waiver of Rights, Memorandum of Agreement, Subdivision
Agreement or such other document(s) indicating the parties involved in the subdivision project
6. Certification as to zoning classification/zoning clearance (Office of the deputized Municipal
Zoning Administrator)
7. Application (Office of the deputized Municipal Zoning Administrator)
8. Special Power of Attorney (if applicant is not the one who will attend the public hearing)

Developing a Subdivision Project

• A registered owner or developer of a parcel of land who wishes to convert the same into a
subdivision project shall apply with the Local Government Unit (LGU) concerned for the
approval of subdivision Development Permit (DP). The owner/developer shall
subsequently apply for Certificate of Registration (CR) and License to Sell (LS) with HLURB
prior to the selling of units/house or lots.

A. Developing Residential Subdivision Projects

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1. Residential Projects under Presidential Decree (PD) 957
o Minimum design standards (Implementing Rules and Regulations (IRR) of PD
957 Rule I)
o Requirements (IRR of PD 957 Rule II & Rule IV )
o Downloadable forms
o Process (flowchart)
2. Residential Projects under BP 220
o Minimum design standards (Rule II, BP 220 IRR)
o Requirements (Rule III, Rule IV BP 220 IRR)
o Downloadable Forms
o Process (flowchart)
B. Other Subdivision Projects (All items below are linked to related IRRs)
1. Farm lot Subdivision
2. Commercial Subdivision
3. Industrial Subdivision
4. Memorial Parks

Additional requirements for All Types of Residential Subdivision projects:

A. 2 copies of verified survey returns with label for all nonsalable areas including but
not limited to parks and playgrounds, community facilities and roads and easements.
B. Copy of the following documents in case the development permit was issued by the
Local Government Unit (LGU) pursuant to the 1991 Local Government Code and related
issuances:
1. Sangguniang Resolution/Ordinance granting of development permit/ subdivision
development plan containing the following information:
• full name of the grantee or permit tee and his address;
• complete project name and its location;
• date of the resolution or ordinance;
• project area;
• full listing of title(s) covering the project;
• legal basis of the approval (PD 957, EO 648 and other related laws);
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2. Certified true copy of resolution conferring authority to the mayor or other local government
official to issue development permit in cases where the same was not granted by the
Sangguniang Bayan/Panlungsod. Evidence of approval of the subdivision scheme by the
local government official must be any original copy or one certified as true copy thereof by
the authorized local government official, indicating clearly his full name and position and the
date of approval. It must contain the same data as described above. Most important of all, it
must bear an indication of Sanggunian approval such as but not limited to words like
“APPROVED BY AUTHORITY OF THE SANGGUNIAN” or others of similar import, it being
understood that the Sanggunian has properly issued such authority.

C. Proof of compliance to Sec. 18 of RA 7279 in any of the following

manner:
1. Development Permit of socialized housing projects within the main
subdivision.
2. License to sell of socialized housing project offered as compliance if
location of compliance is not within the main subdivision project.
3. Joint venture agreement with LGU or other housing agencies or other
owner / developer.
4. Copy of bond issued by the Home Mutual Development Fund / PAGIBIG or Home
Guaranty Corporation (HGC) where the main project is
located or by any of the housing agencies.

ISSUANCE OF CLEARANCE/PERMIT FOR SUBDIVISIONS:

Prior to issuance of final development permit all subdivision developers are required
to secure Preliminary Approval and Locational Clearance (PALC) and Development Permit
(DP) for its subdivision projects.
• PALC (PRELIMINARY APPROVAL AND LOCATIONAL CLEARANCE)
• DP (DEVELOPMENT PERMIT)
• AP (ALTERATION PERMIT)
REQUIREMENT/S:
PALC/DP:
21
1. Duly accomplished PALC/DP Application Form
2. Zoning Certification
3. Certified True Copy of Land Title/s for the property/ies subject of the application
4. Certified True Copy of Tax Declaration/s for the property/ies subject of the application
5. Updated Realty Tax Payment
6. Site Development Plan (Schematic Plan)
7. Survey Plan of lot(s) described in the Land Title/s
8. Vicinity Map
9. Topographic Plan
10. Right to Use of Deed of Sale or Right-of-Way for access road and other Utilities when
applicable
11. DAR Certification
12. Statement of Proposed Mode of Compliance to Socialized Housing Development
requirement under Section 18 RA 7279

REQUIREMENT/S:
Alteration Permit:
1. Plan showing the proposed alteration duly signed and sealed by a
Licensed Architect/Engineer
2. Letter of Intent stating the proposed/reason for the proposed
alteration/conversion
3. Sworn Statement that the affected lots/units for alteration have not been
sold
4. Minutes of the General assembly of buyers/homeowners for purposes of
discussing the proposed alteration of plan, and the written conformity of
the duly organized homeowner’s association or in the absence thereof,
majority of the lot/unit buyers
5. Certified True Copy of Title/s of the affected lots/units if the said lots/units
have titles

TAXES AND FEES Projects under BP 220

1. Preliminary Approval for Locational Clearance
22
Processing Fee:
o Socialized Housing - P 75.00/ha.
o Economic Housing - P159.00/ha.
Inspection Fee:
o Socialized Housing - P200.00/ha.
o Economic Housing - P500.00/ha.
2. Final Approval & Development Permit
Processing Fee:
o Socialized Housing - P500.00/ha
o Economic Housing - P1,000.00/ha
Inspection Fee:
o Socialized Housing - P200.00/ha
o Economic Housing - P500.00/ha
Note: Projects which were already inspected for PALC application are
exempted from the Inspection Fee

INDUSTRIAL/COMMERCIAL SUBDIVISION
o Preliminary Approval for Locational Clearance (PALC) - P 300.00/ ha.
o Inspection Fee - P1,000.00/ha.
FARM LOT SUBDIVISION
o Preliminary Approval for Locational Clearance (PALC) - P 200.00/ha.
o Inspection Fee - P 500.00/ha.
MEMORIAL PARK/CEMETERY PROJECT/COLUMBARIUM
Preliminary Approval for Locational Clearance (PALC)
o Memorial Projects - P 500.00/ha.
o Cemeteries - P 200.00/ha.
o Columbarium - P 12.00/sq.m.of Gross Floor Area
Inspection Fee
o Memorial Projects - P 1,000.00/ha.
o Cemeteries - P 500.00/ha.
o Columbarium - P 12.00/sq.m of Gross Floor Area
UPLC Legal Research Fee – Computation of Legal Research Fee of the
23
University of the Philippines Law Center (UPLC) remains at One Percent (1%)
of every charged but shall in No Case Be Lower than P10.00.

TAXES AND FEES (AP) For Projects covered by PD 957

o Alteration of Plan (affected areas only) - P 2,000.00/ha. regardless of density
o Additional Fee on Floor Area of houses and building sold with lot - P 2.00/sq.m
o Inspection Fee – P 1,000.00/ha. regardless of density
Alteration of Plan (Affected areas only) Processing Fee:
o Socialized Housing- P 500.00/ha.
o Economic Housing - P 1,000.00/ha.
Inspection Fee:
o Socialized Housing - P 200.00/ha.
o Economic Housing - P 500.00/ha.
INDUSTRIAL/ COMMERCIAL SUBDIVISION
o Alteration of Plan (Affected areas only) - P5,000.00/ha.
o Inspection Fee - P1,000.00/ha.
FARM LOT SUBDIVISION
o Alteration of Plan (Affected areas only) - P 1,000.00/ha.
o Inspection Fee - P 5,000.00/ha.
MEMORIAL PARK/CEMETERY PROJECT/COLUMBARIUM
Alteration of Plan (Affected areas only) - P 5,000.00/ha.
o Memorial Projects - P 2.00/ha.
o Cemeteries - P 1.00/ha.
o Columbarium - P 4.00/sq.m.
Inspection Fee
o Memorial Projects - P 1,000.00/ha.
o Cemeteries - P 500.00/ha.
o Columbarium - P 12.00/sq.m of Gross Floor Area
UPLC Legal Research Fee – Computation of Legal Research Fee of the University
of the Philippines Law Center (UPLC) remains at One Percent (1%) of every
charged but shall in No Case Be Lower than P10.00

24
LAND REGISTRATION AUTHORITY:
ALL SUBDIVISION/CONSOLIDATION TRANSACTIONS REQUIRE THE
FOLLOWING DOCUMENTS ASIDE FROM THE BASIC REQUIREMENTS:
1. Letter request for subdivision/consolidation
2. Sepia or polyethylene film of the plan duly approved by Land Registration
Authority or the Land Management Bureau
3. Blue copy of the plan
4. Original technical description (duly approved)
IF WITH CHANGE OF OWNERSHIP, THE FOLLOWING ADDITIONAL
DOCUMENTS ARE REQUIRED:
1. Agreement of partition
2. Real estate tax clearance

25
 1.2 Government Land Management Activities

The Philippines lags behind its Asian neighbors in terms of land administration and
management. It is widely accepted that the multiple national land agencies lack mechanisms
for coordination. Continuing legislative efforts rectify the situation have have not evolved to
establish overall institutional mechanisms to resolve land administration and management
issues (LSDF Manual, LAMP2). In China , land administration authorities were centralized
from 1986-1997 when the State Land Administration Bureau was established and responsible
were clearly defined (Shouzhi, 2007).
According to house Representatives (2008), the inefficiency of land administration
system has become a disincentive to investments in the land market because of the high
transaction cost in securing, registering and transferring property rights. Moreover, the
complicated land institutions and processes have further strained limited public sector budget
due to unnecessary duplications in management and administration support, and land
information and records.

Policies and Initiatives

The Department of Environment and Natural Resources is the primary government
agency responsible for the conservation, management, development, and proper use of the
country’s environment and natural resources, specifically forest and grazing lands, mineral
resources, including those in reservation and watershed areas, and lands of the public
domain, as well as the licensing and regulation of all natural resources as may be provided
for by law in order to ensure equitable sharing of the benefits derived therefrom for the welfare
of the present and future generations of Filipinos.

To accomplish this mandate, the Department shall be guided by the following objectives:

• Assure the availability and sustainability of the country's natural resources through
judicious use and systematic restoration or replacement, whenever possible
• Increase the productivity of natural resources in order to meet the demands for forest,
mineral, and land resources of a growing population;
• Enhance the contribution of natural resources for achieving national economic and
26
 social development;
• Promote equitable access to natural resources by the different sectors of the
population; and
• Conserve specific terrestrial and marine areas representative of the Philippine natural
and cultural heritage for present and future generations.

DENR Administrative Order (A.O)No. 10 Series of 2015 was issued to prescribe the
establishment of the Center of Land Administration and Management ProjectPhilippines
(CLAMP) to help national government agencies (NGAs) and local government units (LGUs)
to adopt the innovations and new approaches to land administration and management The
proposed Land Administration Reform Act (LARA), if passed, will establish a single land
administration authority which, basically is a consolidation of roles, functions and services of
the concerned bureaus and agencies.
The Government of the Philippines (GOP) requested support from the Food and
Agriculture Organization (FAO) to review and update the Land Sector Development
Framework (2010-2030) which was prepared under the Land Administration and
Management Project (LAMP2). The LSDF contains policy directions and long-term strategies
for land governance including land administration and land management.

Table 3. Inter-agency overlaps in land survey and land titles recording, based from De los
Reyes (2016).

Agency Functions and Land Limitations

Records
Land Registration Authority Approves subdivision survey No centralized database of
(LRA) and of titled properties; all titled properties, total area
and titled property used for
Register of Deeds (RODs Maintains records of titled agricultural purposes
properties
Department of Environment Verifies and approves No information on approved
and Natural Resources subdivision survey plans survey plans with resulting
(DENR) and actual titles

27
Land Management Service Maintains copies of
(LMS) approved survey plans
Assessors’ offices in the Tax declaration, tax maps, Land use information filed
province, cities and real property tax records with the assessors’ office are
municipalities self-declarations of land
Housing and Land Use Regulates zoning and
Regulatory Board (HLURB) maintains registry of all
zoning ordinances
Local Government Units Issues zoning ordinances
(LGUs) and regulations

28
1.2.1 Land Use Allocation
Land is a naturally occurring finite resource. It provides the base for survival of living
beings. It holds everything that constitutes terrestrial ecosystems.
Land Resources refer to a delineable area of the earth's terrestrial surface,
encompassing all attributes of the biosphere immediately above or below this surface,
including those of the near surface climate, the soil and terrain forms the surface hydrology
(including shallow lakes, rivers, marshes and swamps ), the near-surface sedimentary layers
and associated groundwater and geohydrological reserve, the plant and animal populations,
the human settlement pattern and physical results of past and present human activity
(terracing, water storage or drainage structures, roads, buildings, etc.).
Land use is the function or functions that humans apply to the land available to them.
The study of land use is the study of how the land is managed, including how the natural
world is adapted to human needs.

Types of Land Use

Recreational land used for human pleasure. This mostly includes parks, museums, sports
grounds
Transport land used for roads, railways, subways, or airports: anything that transports
people or goods.
Agricultural land used for growing crops and rearing animals, is the oldest human use of
land
Residential Land used for housing. This can be low density housing like suburban homes,
or high density housing, like an apartment complex with dozens of floors.
Commercial land is used for building businesses.

1.2.2 Land Conversion and reclassification

Land conversion is the act of changing the Current Use of an Agricultural Land into
Non-Agricultural Use as approved by the Department of Agrarian Reform (DAR).

CONVERSION (LEGAL BASIS):

29
 • Section 65 of REPUBLIC ACT (R.A.) No. 6657, AS AMENDED;
• DAR AO No. 1, Series of 2002;
• DOJ Opinion No. 44, SERIES of 1990;
• Memorandum Circular No.1, Series of 2015.
WHEN IS CONVERSION ALLOWED?
• Lapse of five (5) years from the award of EP / CLOA;
• Land ceases to be economically feasible and sound for
agricultural purposes, or the locality has become urbanized;
• Land will have greater economic value for residential, commercial,
or industrial purposes;
• Applicant may either be a beneficiary or landowner (for retained
area only which is tenanted)

CONVERSION OF AGRICULTURAL LAND

(source: Atty. Robert Anthony P. Yu, Director III. Bureau of Agrarian Legal Assistance, Department of
Agrarian Reform)

1. Applicant gets Application Form.

2. Applicant installs billboard, takes photos of billboard, land & structures on land.
3. Applicant submits two (2) Land Use Conversion Folders (LUCFs) to MARPO
containing application, titles, sketch map & billboard photo.
4. MARPO transmits one folder to the PARPO. Within twenty (20) days, MARPO checks
status of CARP coverage, inspects billboard, checks presence of farmers, posts
notices in conspicuous places, prepares MARPO certification, & gives original copy of
certification to applicant. If MARPO refuses to act, PARPO shall take over.
5. Applicant files four (4) complete LUCFs, plus MARPO certification at Regional Land
Use Cases Committee (RLUCC) or LUCD.
6. RLUCC/LUCD evaluates completeness of LUCFs using LUC Form A; if complete,
issues assessment of fee, inspection cost and cash/surety bond.
7. Applicant pays filing fee, inspection cost, & posts cash/surety bond.
8. Within ten (10) days from filing, RLUCC/LUCD shall issue notice indicating the date of
On-Site Inspection and Investigation (OSII), which must be held not earlier than ten
(10) days nor later than twenty (20) days from notice.
30
 9. Applicant writes OSII schedule in billboard & transmits notice of conduct of OSII to the
MARPO, within five (5) days before OSII.
10. Investigating Team (IT) conducts OSII & dialogue, if applicable, with applicant/s &
farmer/ farmer beneficiary.
11. IT accomplished investigation report within five (5) days from OSII. (The Presidential
Agrarian Reform Council (PARC) Land Use Technical Committee (PLUTC) shall
participate in the deliberation when the land is highly restricted for conversion & more
than five (5) hectares, or when deliberation requires interagency inputs except lands
for housing projects.
12. RLUCC/LUCD deliberates on the merits of the Application.
13. RLUCC/LUCD forwards recommendation and the entire records to Approving
Authority, within eighty (80) days from filing.

CONVERSION OF LAND TO COMMERCIAL AND INDUSTRIAL USE

(sources: Department of Agrarian Reform, Housing and Land Use Regulatory Board)
Who May Avail of the Service:
1. Owners (natural or juridical person) of private agricultural lands or other persons duly
authorized by the landowner.
2. Beneficiaries of the agrarian reform program after the lapse of five (5) years from award,
reckoned from the date of the issuance of the Certificate of Land Ownership Award (CLOA),
and who have fully paid their obligations and are qualified under the
rules, or persons duly authorized by them.
3. Government agencies, including government - owned and controlled corporation, and
LGUs, which own agricultural lands as their patrimonial property.
List of Documentary Requirements for Land Use Conversion
(Detailed explanation on the requirements are provided as attachments in the application
form)
Standard Requirements:
Six (6) sets of Land Use Conversion Folder (LUCF) following the sequence below:
1. Official receipt showing proof of payment of filing fee and inspection cost.
2. Official receipt showing proof of posting of bond or an original copy of the GSIS surety.
3. Sworn Application for Land Use Conversion. (Form No. 1)
31
4. True copy of the Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT) of
the subject land.
In case of untitled land, the following shall be required in lieu of a title:
4.1. Certification from the Department of Environment and Natural Resources-Community
Environment and Natural Resources Officer (DENR-CENRO) that the landholding has been
classified as alienable and disposable; and
4.2. Certification from the DENR-CENRO (for administrative confirmation of imperfect title) or
the Clerk of Court (for judicial confirmation of imperfect title) that the titling
process/proceeding has commenced and there are no adverse claimants.
5. True copy of the Certificate of Title of the subject land as of 15 June 1988,
i. and all successor Titles until the present Title referred to in No. 4
hereof,
ii. if applicable.
6. True copy of the current Tax Declaration covering the subject property.
7. Project feasibility study.
8. Joint venture agreement or any other business arrangement on the use of the land.
9. Narrative description of the development plan describing in detail the activities, program
components, phasing, schedule, work and financial plan, all duly certified by a licensed
engineer, architect, or land use planner.
10. Proof of financial and organizational capability of the developer to develop land.
11. Socio-Economic Benefit-Cost Study of the proposed project.
12. Photographs, size 5R (five [5] inches by seven [7] inches), using color film, and taken
on the landholding under sunlight.
13. Affidavit of Undertaking of the applicant. (LUC Form No. 2).
14. MARO Certification (LUC Form No. 3) and Notice of Land Use Conversion in English
language (LUC Form No. 4) and in local dialect (LUC Form No. 4A).
15. Certification from the Housing and Land Use Regulatory Board (HLURB) Regional
Officer.
16. Certification from the authorized Department of Agriculture (DA) official.
17. Certification from the authorized DENR official.
18. Environmental Compliance Certificate (ECC) when the subject land is within an ECA
or will involve the establishment of an ECP.
32
19. If applicable, Special Power of Attorney (SPA), when the applicant is not the
registered owner.
20. If applicable, notarized secretary's certificate of a corporate/cooperative board resolution
authorizing the representative, when the applicant is a corporation or cooperative.
21. If applicable, concurrence letter of the mortgagee or of the individual or entity in whose
favor the encumbrance was constituted, when the property is encumbered.
22. If applicable, endorsement from the concerned government agency, when the application
involves a priority development area or project, such as:
a. NEDA-NLUC endorsement if under EO 124-1993; or
b. HLURB endorsement if socialized housing (LUC Form No. 7); or
c. PEZA Board Resolution approving the project for ecozone project
23. If applicable, Land Bank of the Philippines (LBP) Certification.
24. If applicable, Provincial Agrarian Reform Officer (PARO) Certification.
25. Vicinity map and a lot plan.
26. Directional sketch map.
27. Map of the development plan.
28. Topographic Map.

Reclassification is the act of specifying how agricultural lands shall be utilized for non-
agricultural uses such as residential, industrial, and commercial, as embodied in the land use
plan, subject to the requirements and procedures for land use conversion.

MEMORANDUM CIRCULAR NO. 54

Prescribing the guidelines governing section 20 of RA 7160 otherwise known as the local
government code of 1991 authorizing cities and municipalities to reclassify agricultural lands
into nonagricultural uses.

SECTION 1. SCOPE AND LIMITATIONS

A. Cities and municipalities with comprehensive land use plans reviewed and
approved in accordance with EO 72 (1993), may authorize the reclassification of agricultural
lands into non-agricultural uses and provide for the manner of their utilization or disposition,
subject to the limitations and other conditions prescribed in this Order
33
 B. Agricultural lands may be reclassified in the following cases:
(1) when the land ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture.
(2) where the land shall have substantially greater economic value for residential,
commercial, or industrial.
• For highly urbanized and independent component cities, fifteen percent (15%);
• For component cities and first to third class municipalities, ten percent (10%); and
• For fourth to sixth class municipalities, five percent (5%).
C. However, such reclassification shall be limited to a maximum of the percentage of
the total agricultural land of a city or municipality at the time of the passage of the ordinance
as follows:
D. In addition, the following types of agricultural lands shall not be covered by the said
reclassification:
(1) Agricultural lands distributed to agrarian reform beneficiaries subject to Section 65 of RA
6657;
(2) Agricultural lands already issued a notice of coverage or voluntarily offered for coverage
under CARP.
(3) Agricultural lands identified under AO 20, s. of 1992, as nonnegotiable for conversion as
follows:
• All irrigated lands where water is available to support rice and other crop production;
• All irrigated lands where water is not available for rice and other crop production but
within areas programmed for irrigation facility rehabilitation by DA and National Irrigation
Administration (NIA); and
• All irrigable lands already covered by irrigation projects with firm funding
commitments at the time of the application for land conversion or reclassification.

Requirements for Reclassification

1. Letter of Application in the name of the owner of the land addressed to the
Sangguniang Bayan;
2. Special Power of Attorney, in case the applicant is other than the owner of the land;
3. Certified true copy of the Original / Transfer Certificate of Title and other documents
establishing ownership;
34
 4. Certificate of updated Real Property Tax Payments;
5. Locational Plan or Vicinity Map as certified by the Municipal Assessor;
6. Subdivision plan, in case only a portion of a title is sought to be reclassified;
7. Detailed feasibility study of the proposed project or intended use of the land;
8. Sworn Certificate of Commitment from the owner and developer that the proposed
project would be implemented within three (3) years from the passage of the
ordinance;
9. Barangay Resolution endorsing the proposed project;
10. Certification from the National Irrigation Administration (NIA) that the land is not
irrigated or irrigable as described under Section 3 (c)(3) of Article II hereof;
11. Certification from the Department of Agriculture indicating the reclassification is in
consonance with Section 3 (a)(b) of Article II hereof and that land is not necessary for
the food sufficiency program of the region;
12. A certification from DAR indicating that such lands are not distributed or not covered
by a notice of coverage or not voluntarily offered for coverage under CARP;
13. Certification from the Department of Environment and Natural Resources that the land
is not environmentally critical, and that the proposed project or intended use is
ecologically safe and sound.

Procedure on land reclassification

1. Application - All applications shall be addressed and submitted before the Office to the
Sangguniang Bayan for the mandatory three (3) readings
2. Referral to the Committee – Upon receipt of the application, the Secretary of the
Sanggunian shall calendar the same on the next regular session for its referral to the
Committee on Housing and Land Use Management (Committee).
3. Public Hearing – Pursuant to existing laws, the committee may conduct public hearing to
determine public acceptance of the proposed reclassification and for clarificatory questions
and/or inquiries.
4. Recommendation from the Local Development Council (LDC) – After the conduct of a
public hearing, and there is no reasonable objection from the public, or if the committee finds
the application to be proper in form and in substance, the committee shall forward the
application to the Local Development Council (LDC) for the preliminary determination on
35
whether the proposed reclassification is in consonance with the development plan; and to
check compliance of the requirements set forth by law and by this ordinance. If it was found
to be feasible and after satisfactory compliance with the requirements, the LDC shall
favorably recommend to the Sanggunian the reclassification of the land.
5. Passage of an Ordinance – Upon receipt of the favorable recommendation from the LDC,
the committee shall draft an ordinance for the reclassification of the land. Such ordinance
shall undergo mandatory three (3) readings pursuant to R.A. 7160.

1.2.3 Land Acquisition

Land acquisition is a process where government take possession of land for public
purposes for its own use or for private entity by paying compensation to its owner.

Table 4. Provisions of BP 185 and RA 7042, as amended, pertinent to land ownership by

Filipinos overseas (source: Land Registration Authority)

Particulars Provisions under BP 185 (for Provisions under RA 7042 as

establishing residence) amended by RA 8179 (for
investment)
Size/ Area of Maximum of 1000 sq. meters for Maximum of 5,000 sq. meters for
coverage urban land urban land

Maximum of 1 hectare for rural land Maximum of three (3) hectares for
rural land
Land Either of the spouses may avail of Either of the spouses may avail of
Acquisition the privilege the privilege
for both
spouses In case both spouses wish to In case both spouses wish to
acquire lands for this purpose, the acquire lands for this purpose, the
total area acquired should not total area acquired should not
exceed the maximum allowed exceed the maximum allowed
Additional In case he/she already owns urban In case he/she already owns
Land or rural lands for residential urban or rural lands for business
Acquisition purposes, he/she may acquire purposes, he/she may acquire

36
 additional urban or rural lands, additional urban or rural lands,
which when added to those he/she which when added to those
presently owns shall not exceed the he/she presently owns shall not
authorized maximum area. exceed the authorized maximum
area.
Limits to A person may acquire not more than A person may acquire not more
Acquisition of 2 lots which should be situated in than 2 lots which should be
land the different municipalities or cities situated in different municipalities
anywhere in the Philippines, or cities anywhere in the
provided that the total area of these Philippines, provided that the total
lots do not exceed 1000 sq. meters area of these lots do not exceed
for urban and 1 hectare for rural land 5000 sq. meters for urban land or
for use as residence. 3 hectares for rural land for
business purposes.

An individual who has already Under section 4 Rule XII of the

acquired urban land shall be Implementing Rules and
disqualified from acquiring rural land Regulations of RA 7042 as
and vice versa. amended by RA 8179, a
transferee who has already
acquired urban shall be
disqualified from acquiring rural
land and vice versa. However, if
the transferee has disposed of
his/her urban land, he/she may
still acquire rural land and vice
versa, provided that this will be
used for business.

A transferee of residential land

acquired under Batas Pambansa
Blg. 185 may still avail of the
37
 privilege granted under this law.
Use of Land The acquired land should not be Section 5 of Rule XII specifically
used for any purpose other than for states that “the land should be
residence. primarily, directly, and actually
used in the performance or
conduct of the owner’s business
or commercial activities in the
broad areas of agriculture,
industry and services including the
lease of land, but excluding the
buying and selling thereof”.
Special In addition to the requirements In addition to the usual registration
Requirements provided for in other laws for the requirements pertinent to the
registration of titles to lands, A conveyance of the transferee
person may acquire not more than should submit to the Register of
two (2) lots which should be situated Deeds of the province or city
in different municipalities or cities where the property is located a
anywhere in the Philippines, sworn statement stating the
provided that the total area of these following:
lots do not exceed 5,000 sq. meters • date and place of birth • names
for urban land or three (3) hectares and addresses of his/her parents,
for rural land for business purposes. spouse, and children, if any
Under Section 4 of Rule XII of the • area, location, and mode of
Implementing Rules and acquisition of landholdings in the
Regulations of RA 7042 as Philippines, if any
amended by RA 8179, a transferee • his/her intention to reside
who has already acquired urban permanently in the Philippines
land shall be disqualified from • date he/she lost his/her
acquiring rural land and vice versa. Philippine citizenship and the
However, if the transferee has country of which he/she is
disposed of his/her urban land, presently a citizen real estate, the

38
he/she may still acquire rural land transfer contemplated shall not be
and vice versa, provided that this will recorded unless the transferee
be used for business. A transferee submits to the Registry of Deeds
of residential land acquired under of the province or city where the
Batas Pambansa Blg. 185 may still land is situated, the following:
avail of the privilege granted under • certification of business
this law. Section 5 of Rule XII registration issued by the Bureau
specifically states that “the land of Trade Regulation and
should be primarily, directly, and Consumer Protection of the DTI
actually used in the performance or • sworn statement stating
conduct of the owner’s business or information required under Batas
commercial activities in the broad Pambansa 185
areas of agriculture, industry and • certification from assessor of
services including the lease of land, municipality or province where the
but excluding the buying and selling property is situated that the
thereof”. In addition to the usual subject land for transfer is an
registration requirements pertinent urban or rural area
to the conveyance of the transferee • if an agricultural land is acquired,
should submit to the Register of a certification from the Department
Deeds of the province or city where of Agrarian Reform that the land is
the property is located a sworn a retained area of the transferor
statement stating the following: and an affidavit of the transferee
• date and place of birth attesting that his/her total
• names and addresses of his/her landholding inclusive of the land to
parents, spouse, and children, if any be acquired does not exceed the
• area, location, and mode of 5-hectare limit provided under
acquisition of landholdings in the R.A. 6657, is required
Philippines, if any
• his/her intention to reside
permanently in the Philippines
• date he/she lost his/her Philippine

39
 citizenship and the country of which
he/she is presently a citizen
Violations Violations through:
and Penalties • misrepresentation in the sworn
statement
• acquisition of land through
fraudulent means
• failure to reside permanently in the
land acquired within two (2) years
from its acquisition, except when
such failure is caused by force
majeure shall be penalized by the
following:
- liability to prosecution under the
applicable provisions of the Revised
Penal Code and subject to
deportation in appropriate cases
- forfeiture of such lands and
their improvements to the
National Government
through escheat
proceedings by the
representative of the
Solicitor General
- permanent disqualification
from availment of the
privilege under this Act

Requirements for Land Registration or Original Certificate of Title (Judicial Titling)

The application for land registration should be filed in triplicate with the Clerk of the
Regional Trial Court of the province/city where the property is located. The following
documents should be attached to the application:
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1. Original plan on tracing cloth duly approved by the Director of Lands or Regional Land
Director, or in lieu thereof, a true copy of the same on a tracing cloth properly attested and
certified by said Office or the official authorized to make such certification, together with two
(2) print copies thereof
2. Three (3) copies of technical description
3. Three (3) copies of surveyor’s certificate
4. Certificate of the assessed value of the property issued by the provincial treasurer, in
Quadruplicate

Requirements for Land Transfer or Transfer Certificate of Title

The following documents are required for the filing of land transfer:
1. Copies of the Deed of Absolute Sale
2. Latest real estate tax payments
3. Latest tax declaration of the property
4. Certificate from the Bureau of Internal Revenue that the capital gains tax and
documentary stamps have been paid
5. Transfer tax
6. Receipt of payment of the transfer and registration fees

1.2.4 Land Disposition

Under SECTION 10 of CA 141, The words "alienation, "'disposition, or "concession"
as used in this Act, shall mean any of the methods authorized by this Act for the acquisition,
lease, use, or benefit of the lands of the public domain other than timber or mineral lands.
In other words, "alienation” means the act of alienating land in perpetuity or for a term
of years, and otherwise the transfer of the ownership of property rights. “disposition” refers
to the act of selling or otherwise ‘disposing’ of an asset or security, transferring to the care
or possession of another. “concession” is a contract between the Government and to another
entity that gives specific rights to control an area of land for a fixed period of time and for the
conduct of specific activities in that area.

Classification of Land on Public Domain Open for Disposition

According to the use or purposes to which such lands are destined, as follows:
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(a) Agricultural
(b) Residential commercial industrial or for similar productive purposes
(c) Educational, charitable, or other similar purposes
(d) Reservations for town sites and for public and quasi-public uses.

1.2.5 Land Developments and its regulation

Land Development is altering the land scape in any number of ways such as:
• Changing landforms from a public land for a purpose such as agriculture or housing
• Subdividing real estate into lots, typically for the purpose of building homes
• Real estate development or changing its purpose, for example by converting an
unused factory complex into condominium.
Land Development Regulations
Land development regulations means ordinances and regulations enacted by the
State for the regulation of any aspect of Development and includes, but is not limited to,
zoning, rezoning, subdivision, building construction, occupancy, aesthetic, environmental,
road, or sign regulations, or any other regulations controlling the Development or use of
property.
Some jurisdictions have prepared land use codes that contain a range of
development regulations, regulating how land is subdivided, used, and developed. Other
jurisdictions have separate titles of their codes for zoning, subdivision, and environmental
regulations.

1.2.6 Conservation of Lands

URBAN DEVELOPMENT AND HOUSING ACT OF 1992 (RA 7279)
Sec. 14. Limitations on the Disposition of Lands for Socialized Housing. — No land for
socialized housing, including improvements or rights thereon, shall be sold, alienated,
conveyed, encumbered or leased by any beneficiaries as determined by the government
agency concerned.
Should the beneficiary unlawfully sell, transfer, or otherwise dispose of his lot or any right
thereon, the transaction shall be null and void. He shall also lose his right to the land, forfeit

42
the total amortization paid thereon, and shall be barred from the benefits under this Act for a
period of ten (10) years from the date of violation.
In the event the beneficiary dies before full ownership of the land is vested on him, transfer
to his heirs shall take place only upon their assumption of his outstanding obligations. In case
of failure by the heirs to assume such obligations, the land shall revert to the Government for
disposition in accordance with this Act.
Sec. 36. Ecological Balance. — The local government units shall coordinate with the
Department of Environment and Natural Resources in taking measures that will plan and
regulate urban activities for the conservation and protection of vital, unique and sensitive
ecosystems, scenic landscapes, cultural sites and other similar resource areas.
To make the implementation of this function more effective, the active participation of the
citizenry in environmental rehabilitation and in decision making process shall be promoted
and encouraged. The local government units shall recommend to the Environmental and
Management Bureau the immediate closure of factories, mines and transport companies
which are found to be causing massive pollution.

PROTECTION AND CONSERVATION OF NATURAL RESOURCES

Natural resources refer to the things that exist freely in nature for human use and don’t
necessarily need the action of mankind for their generation or production.

1987 CONSTITUTION
ARTICLE XII: National Economy and Patrimony
SECTION 2. 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. The exploration, development, and
utilization of natural resources shall be under the full control and supervision of the State. The
State may directly undertake such activities, or it may enter into co-production, joint venture,
or production-sharing agreements with Filipino citizens, or corporations or associations at
least sixty per centum of whose capital is owned by such citizens. Such agreements may be
for a period not exceeding twenty-five years, renewable for not more than twenty-five years,
and under such terms and conditions as may be provided by law. In cases of water rights for
43
irrigation, water supply, fisheries, or industrial uses other than the development of water
power, beneficial use may be the measure and limit of the grant.
The State shall protect the nation’s marine wealth in its archipelagic waters, territorial
sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino
citizens.
The Congress may, by law, allow small-scale utilization of natural resources by Filipino
citizens, as well as cooperative fish farming, with priority to subsistence fishermen and
fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations involving
either technical or financial assistance for large-scale exploration, development, and
utilization of minerals, petroleum, and other mineral oils according to the general terms and
conditions provided by law, based on real contributions to the economic growth and general
welfare of the country. In such agreements, the State shall promote the development and use
of local scientific and technical resources.
The President shall notify the Congress of every contract entered into in accordance
with this provision, within thirty days from its execution.
Executive Order No. 192, s. 1987 providing for the reorganization of the department
of environment, energy and natural resources, renaming it as the department of environment
and natural resources, and for other purposes.
Section 4: Mandate. The Department shall be the primary government agency
responsible for the conservation, management, development, and proper use of the country's
environment and natural resources, specifically forest and grazing lands, mineral resources,
including those in reservation and watershed areas, and lands of the public domain, as well
as the licensing and regulation of all natural resources as may be provided for by law in order
to ensure equitable sharing of the benefits derived therefrom for the welfare of the present
and future generations of Filipinos.
To accomplish its mandate, the Department shall be guided by the following objectives
that will serve as basis for policy formulation:
• Assure the availability and sustainability of the country's natural resources through
judicious use and systematic restoration or replacement, whenever possible;
• Increase the productivity of natural resources in order to meet the demands for forest,
mineral, and land resources of a growing population;
44
 • Enhance the contribution of natural resources for achieving national economic and
social development;
• Promote equitable access to natural resources by the different sectors of the
population;
• Conserve specific terrestrial and marine areas representative of the Philippine natural
and cultural heritage for present and future generations.

Laws that Ensure Rational Land Use and Sustainable Urban and Regional Development
• Executive Order No. 72 – providing for the preparation and implementation of the
Comprehensive Land Use Plans (CLUPs) of Local Government Units pursuant to the
Local Government Code of 1991 and other pertinent laws.
• Memorandum Circular No. 54 – prescribing the guidelines of Sec. 20, R.A. 7160,
authorizing cities/municipalities to reclassify lands into non-agricultural uses.
• Executive Order No. 124 – establishing priorities and procedures in evaluating areas
for land conversion in regional agricultural/industrial centers, tourism development
areas and sites for socialized housing.

45
Guide Questions 1

Answer the following to check what you learned from the discussions so far. Check
your answers from the provided answer key at the end of this unit.

1. In 1970, the spouses Juan and Juana de la Cruz, then Filipinos, bought the parcel of
unregistered land in the Philippines on which they built a house which became their
residence. In 1986, they migrated to Canada and became Canadian citizens.
Thereafter, in 1990, they applied, opposed by the Republic, for the registration of

the aforesaid land in their names. Should the application of the spouses de la Cruz be
granted over the Republic’s opposition?

2. Rod, the owner of an FX taxi, found in his vehicle an envelope containing TCT No.
65432 over a lot registered in Cesar's name. Posing as Cesar, Rod forged Cesar's
signature on a Deed of Sale in Rod's favor. Rod registered the said document with the
Register of Deeds, and obtained a new title in his name. After a year, he sold the lot
to Don, a buyer in good faith and for value, who also registered the lot in his name.

a) Did Rod acquire title to the land? Explain.

3. Louie, before leaving the country to train as a chef in a fivestar hotel in New York,
USA, entrusted to his first-degree cousin Dewey an application for registration, under
the Land Registration Act, of a parcel of land located in Bacolod City. A year later,
Louie returned to the Philippines and discovered that Dewey registered the land and
obtained an Original Certificate of Title over the property in his (Dewey’s) name.
Compounding the matter, Dewey sold the land to Huey, an innocent purchaser for
value. Louie promptly filed an action for reconveyance of the parcel of land against
Huey.
a. Is the action pursued by Louie the proper remedy?
b. Assuming that reconveyance is the proper remedy, will the action prosper if the
case was filed beyond one year, but within ten years, from the entry of the decree
of registration?

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Key Points

1. Land use planning is the process of identifying zones of regulated land use.
It usually comprises a status quo assessment of the current status of land
use, and the setting of priorities for future spatial development and
implementation.
2. Land administration is the way in which the rules of land tenure are
applied and made operational. Land administration, whether formal or
informal, comprises an extensive range of systems and processes to
administer.
3. Natural-born Filipinos are those with one or both parents who were Filipino
at the time of their birth. For more specific cases, you may inquire directly
with the Embassy.
4. If you are not a natural-born Filipino, i.e. if neither of your parents were
Filipino when you were born, then you may not file for dual citizenship under
Republic Act No. 9225.
5. Reconveyance is the transfer of real property that takes place when a
mortgage is fully paid off and the land is returned to the owner free from the
former debt.
6. Torrens system is a system for registration of land under which, upon the
landowner’s application, the court may, after appropriate proceedings,
direct the issuance of a certificate of title.
7. Land survey is a survey of landed property establishing lengths directions of
boundary lines.
8. Land Boundaries are usually defined by ownership, commencing with the
earliest owners through successive ownerships and partitions.

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References and Supplementary Materials

Online Supplementary Reading Material

1. Land Titles and Land Title Registration: FAQs;

https://www.lamudi.com.ph/journal/faqs-on-land-title-registration/;
Retrieve May 26,2020
2. LRA’s 5 easy steps to land titling;
https://www.philstar.com/business/science-and-
environment/2013/02/28/913862/lras-5-easy-steps-land-
titling;Retrieve May 26,2020
3. USAID Country Profile Property Rights and Resource Governance:
Philippines; http://exchange.growasia.org/usaid-country-profile-
property-rights-and-resource-governance-philippines; Retrieve May
26,2020
4. REGISTRATION OF LAND TITLES AND
DEEDS;https://www.academia.edu/35245285/REGISTRATION_OF_
LAND_TITLES_AND_DEEDS; Retrieve July 7,2020
5. HOW TO DO LAND SUBDIVISION IN THE PHILIPPINES; http://www.bohol-
realestate.com/how-to-do-land-subdivision/; Retrieved August 5, 2020
6. How to Register Land Title at LRA in 5 Steps; https://www.philippine-
property.net/692-how-to-register-land-title-at-lra-in-5-steps.html; Retrieve
August 6,2020
7. Integrated Land Administration and Management in the Philippines;
https://ap.fftc.org.tw/article/1236; Retrieve August 19,2020
8. ISSUANCE OF CLEARANCE/PERMIT FOR SUBDIVISIONS:;
http://cagayandeoro.gov.ph/phocadownloadpap/citizencharter/18plandev/Issu
ance%20of%20Permit%20or%20Clearance%20for%20Subdivisions.pdf;
Retrieve August 25,2020
9. Conversion of Agricultural Lands;
https://www.doe.gov.ph/sites/default/files/pdf/e_ipo/2016_leif_04_dar_convers

48
 ion-agricultural_land.pdf; Retrieve August 26,2020
10. LAND ACQUISITION AND
OWNERSHIP;http://invest.cfo.gov.ph/pdf/part2/land-acquisition-and-
ownership.pdf; Retrieve August 26,202

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