eo the Philippinen Office of the President Housing and Urban Development Coordinating Council HOUSING AND LAND USE REGULATORY BOARD BOARD RESOLUTION NO,_750 Series of 2003 LIBERALIZING THE REQUIREMENTS FOR THE ISSUANCE OF CERTIFICATE OF REGISTRATION AND LICENSE TO SELL FOR FARMLOT ‘SUBDIVISIONS WHEREAS, the Impicmenting Rules and Regulations defines Farmlot Subdivision as a planned community intended primarily for agricultural activity, WHEREAS, the Board is of the position that DAR Conversion Clearance nocd not be required in the issuance of Certificate of Registration and License to Sell for Farmlot Subdivisions since there is no change in principal use, WHEREAS, the issuance of Certificate of Registration and License to Sell by this Board docs not exempt grantees thereof from compliance with and is without prejudice to the provisions of other laws: ‘WHEREFORE, be it resolved, as it is hereby resolved, that this Board shall no longer require a DAR Conversion Clearance as a precondition for issuance of Certificate of Registration and License to Sell for Farmlot Subdivisions. APPROVED, this 15th day of October 2003, Quezon City JOSE C. CALIDA, Undersecretary, DOJ HLURB Bidg , Kalayaan Avenue corner Mayaman Street Diliman, Quezon City(CORERALIZE SG THE ‘POR THEE SSUANCE OF oF JREGTRATION AND LICENSE TO SELL FOR FARMSTY Page? ‘Attested:Repubite of the Philippines ‘Minkstey of Haman Settlements HUMAN SETTLEMENTS REGULATORY COMMISSION Goodell Buliding, Bundle Am, Eas, ‘Maker, Mero Manta RULES AND REGULATIONS IMPLEMENTING FARMLOT SUBDIVISION PLAN ‘Pursuant to Article IV, ger rosary farce wre hig“ ben sree rules and mealies om aemdot subdivision are Promulgated by the Human Settlements Decree Number 933, 1896, 399, 815, Letters of to implement Presidential Inntmetiog Numbers 720 and 740 tod otiee rated ere Rule T PRELIMINARY APPROVAL OF DEVELOPMENT OF FARMLOT SUBDIVISION PLAN SECTION 1. PRELIMINARY APPROVAL OF FARMLOT SUBDIVISION PLAN, 1. Preliminary Approval for projects located in cities or municipalities with a Land Use Plan andjor a Zoning Ordinance shall not be required, instead, documents for Approval of the Final Subdivision Plan shall be submitted together with a Vicinity Map, a8 required in the Preliminary Approval. 2. For projects located in cities or municipalities without a Land Use Plan andjor Zoning Ordinance, a Preliminary Approval shall be required. However, the owner or developer of a farmiot subdivision proect shall apply with the Commission for canditional approval of the preliminary subdivision plan by submitting in duplicate the following: a@ Preliminary Subdivision Plan signed by a licensed Architect-Planner or Engineer- Planner at any of the following appropriate scales: 1:2,000, 1:4,000 indicating the layout of streets, lots and blocks and other features of the plan in relation to the existing site conditions, b. Vicinity Map in the scale 1:10,000 showing the relationship of the site ta existing land uses, community facilities or development which may directly or indirectly influence it; main traffic arteries; land marks and other relevant features of the community where the project is located. ¢. The conditional approval of the preliminary plan shall be valid for 180 days from date of appraval. Within such perlod the proponent shall apply for the approval of the fina! subdivision plan, and fallure of proponent to apply within such period, pro- Ponent shall renew his application for preliminary approval with the Commission. Approval of preliminary farmlot subdivision plan shall be valid for a period of one hundred torn (180) days from date of approval, aSECTION 2. APPLICATION FOR APPROVAL OF FINAL FARMLOT SUBDIVISION PLAN. After the pretiminary approval of the farmlot subdivision plan, the owner or developer shall proceed with the preparation and submission to the Commission in triplicate of the following: A f Financial a sling, ore, profit mars amortization periods, Final Subdivision Plan duly signed by a lleensed Architect-Flanner or Engineer-Planner in the scales of 1:2,000 or 1:4,000 Indicating the following: 1, Street layout, right-of-way, alignments; simitar data for alleys, if any. 2. Other rights-of-way or easements: Alignments, width and purpose, 3. Location of utilities: Drainage system, possible sources of water supply and possible ‘sources of power, power distribution system If local power utility Is available. 4. Lot lines, lot numbers, lot areas, block numbers. 5, Site data: Number of farmlots, schedule of dimensions and areas according to use classi- fications, eg. roads, parks, playgrounds, common areas, water sources, saleable lots, etc. ‘Topographic Plan Showing Existing Site Conditions. 1, Project boundary tines: bearings and distances. 2, Easements: Locations, widths, elevations, alignment, purposes. 3, Streets adjacent to the subdivision: Access, name, width, elevations, paving/surface material; any legally established center line elevations; walks, curbs, gutters, culverts, etc. 4. Utilities adjacent tothe farmiot subdivision: Utility lines, roads/highways, railroad ‘racks, towers, etc, If utilities are not adjacent to the subdivision, Indicate the direction and distance to, and the invert elevation of nearest one. 5. Ground elevation: Spot elevations at all breaks in grade, along drainage channels and at selected points {not more than 20 meters apart) including contour lines at intervals sufficient for planning and detailed engineering designs shall be indicated. 6. Other conditions on the land: Water courses, marshes, rack outcrop, wooded areas, isolated preservable trees, houses, and other significant features. Clearances From Other Agencies: 1, Clearance from the Ministry of Agrarian Reform as per PD No, 815 and LOI No. 713. 2, Permit to: drill wellis) and water permit from the National Water Resources Council (NWRC). operations and interest Fates, jsis, Indicating aw land cost, development cost, exarketing, f over oth eo ands cata cutlay, development PRES? sourceThe final subdivision plan shail be essentially similar in layout and content as the preliminary development plan. SECTION 3. FINAL APPROVAL OF FARMLOT SUBDIVISION PLAN. If the application for farmlot subdivision project is feasible and economically viable and in conformity to the general land use pattern and development plans of the government, and with this rules and regulations, the farmlot subdivision plan shall be approved and development permit shall bbe issued upon payment of the prescribed fee and under such condition as may be Imposed by the ‘Cammission. “The owner of developer shall execute the necessary surveys of the project and submit the survey returns with technical descriptions and computations for verification and approval of the Bureau of Lands In accordance with Section 50 of PD No. 1529 known as Property Registration Deere, A final approval shall be valid for a period of one (1) year from date of issue, MINIMUM DESIGN STANDARDS SECTION 4, CONFORMITY TO LAND USE PLAN AND ZONING ORDINANCE. All farmlot subdivision shall conform with the approved Land Use Plan and Zoning Ordinance of the locality having jurisdiction over the project site. Farmlot subdivision shall be planned 10 provide a judicious balance of land use and good lay- ‘out to complernent and integrate with the larger community, SECTION 5. VARIANCES, Variations from these standards maybe authorized by the Com- mission if deemed reasonable and not detrimental to the overall development of the subdivision and its surrounding areas and not self-created. SECTION 6, RESTRICTIONS and PROHIBITIONS, There shall be no further subdivision of the minimum area of Seven Hundred Fifty (750) square meters into smaller lots, Bigger lots maybe subdivided into the minimum area (10) subject to clearance from the Human Settlements Regu- latory Commission. Dwelling units shall be of appropriate design to minimize surface run-off. SECTION 7, SITE CRITERIA, Farmiots subdivision shall conform ta the following site criteria: A. Accessibility “The site must be accessible to transportation lines. Road, railroad facilities should add to the [ site's proximity to market center and industries where farm produce maybe utilized.8, Avallablilty of Community Services and Utilities Basle utillties like roads and water Sources must bs found and readily available to adequately serve the needs of the Intended/praspectlve farm activities. Where avallable, subdivision devel- ‘opment must include the provision af power lines to the farmlots, Distance from the Urban Core Farmiot subdivisions must be away.from the center of Metro Manila and/or In the fringes of the urban core of the metropolis and of cities and municipalities. However, they shall aiso be accessible from employment centers and population centers where the products of the farm- lots can be readily marketed. Physical suitability of the site varies with respect to the Intended farm activities within the subdivisions, Natural features considered for varied farm activities are slope, fire and types of solls, : 1, Crop Farms/Tree Farms Generally, land capabliity classes A, B, C and D are suitable for crop farming at varying degrees: A, — lands whose slopes range from 0 to 3%; © = lands with slopes from 8 to 15%, all sultable for intensive euttivation; 1D — tgnds with slopes from 3 to 8% and 15 to 25%, sultable for limited cultivation, 2. Livestock and Poultry ‘ ‘Atthough limited to backyard seale, the following are ueful basls for pursuing livestock and poultry farming. Land capability classes D, Land Mare mutable for pasture and grazing, D — — lands with slopes ranging from 3 to 8% and 15 to 25%; L = lands. with slopes ranging from 0 to 3%; M_— — lands with slopes from 40% and above, For certain breeds of livestock, lands with « maximum slope of 50% can be used for Pasture, Water should be made available or accessible to these grazing areas, Where natural drainage features are absent, drainage facilities must be provided to ensure ‘freedom from flooding. 3. Fishpond/Fishfarms Lovel marshes, swamplands of tidal flats are best sites for ponds. If the topography Is f undualting, a great deal of levelling has to be done entailing great expense. Suitabillty ofWg an estuarine area for fishpond based on the water supply can be summarized as follows: ‘ 3,1 Sites with elevation from 0 to 1 meter make ideal elevation for fishpond because they can be watered or drained even under ordinary tidal condition, Those at eleva- tons 0.30 to 1.5 meters are also suitable. 3,2. Areas at elevations 1.5 meters to 2 meters can be suitable only If they are excavated while areas 0.3 to 0.6 meter below the surface are suitable only if filled. 3.3. Arexs above 2 meters are unsultable because they cannot be watered, Arezs 0.6 meter or more below sea level are also: unsuitable because they are always under water, Further, excavation work removes the surface layer of the soll which are usually the most fertile portion of the pond bottom. Digging also inhibits growth of natural food, 4, Land Capability Land capability class X with slope range of 0 to 19% Is suitable for fishponds as well as salt bed sites. Clay loam, sandy clay or clay with rich deposits of organic matter is the best soll for ponds. Hard mud of the above types are preferable fo soft and very loose kind. 5, Climate ‘Type one climate Is suitable for fishpond, having two pronounced seasons that Is dry from November to April and wet during the rest of the year, with average temperature of ‘27°C, and average rainfall of about 241 cms. 6. Drainage ‘The pond site must be capable of drainage as often a5 desired, even under ordinary tide ‘conditions. This is Important because during certain periods of the year, the ponds are eaten dried to eradicate all fish enemies, and also to provide ease in working the pend battam, Pond sites must be free from periodic flooding since fish being cultivated can ibe washed away. However, flooding and its bad effects can be minimized if dikes are'so constructed as not to obstruct the path of the river, ‘The use of the farmlot can be transformed from tree farm to livestock farm, depending ‘on the adaptability, capability and suitability of the land, SECTION 8, LAND ALLOCATION AND PLOT PLANNING, Land must be judiciously allocated for the required uses and amenities for efficient functioning. All farmlots subdivisions ‘must have a minimum area of one (1) hectare, Blocks shall have a maximum length of 400 meters lich shall utilize a minor road for access. However, an alley may be used as access in blocks less ‘than 400 meters long.A A Common Areas refer to road feature specification and for community facilities (Tables 1 and 2). Site Alteration/Preservation 1, Slope — The natural slope of the land shall be preserved. Where grading and. ditching is necessary, these shall follow the natural drainage or countour and shall be protected by ‘grass, stone of concrete fill, 2. Preservation of Site Assets must conform with the existing laws, rules and reguiations pverning environmental protection. 3. Buildable Area — Each farmiot shall have a minimum area of Saven Hundred Fifty (750) square meters. Minimum frontage shall be fifteen (1S) metors with an access road. The maximum buildable area shall not exceed twenty-five (25%) percent of the total lot area. ‘Common Areas shall conform with the standard set forth in Tables 1 and 2. SECTION 9. COMMUNITY UTILITIES. ‘Water Supply System 1. Water supply for farmlot subdiviston shall be connected to an approved public ar com- munity water supply system whenever practicable. When other sources shall be utilized a certification from the appropriate water authority must be seoured for the availability and locations of the water sources. 2. If communal wells shall be utilized these shall be located strategically for ease and con- venience. Said communal wells are subject to laws, rules and regulations of appropriate government agencies, Quantity Requirements ‘The average dally consumption of water for domestic and agricultural uses are as follows: 1. 40 titers per person 2, 132 titers per milk-producing cow (35 gallons/cow) 3. 190 liters per cow (50 gallons per cow); staff's quarter is Includes water for washing, drinking and 4, 8 v0 19 liters per 100 birds (2 to 5 gallons per 100 birds) ‘Sewerage Disposal System In areas where community sewerage system Is not available, sewerage shall be disposed of in Individual septic tank which shall be designed to conform to the standards of the National Bullding Code and Its location shall be governed by the Sanitation Code,Garbage Disposal. — Trash/garbage/eubbish shall be disposed of only through sanitary meth- ods, €.g., composting landfill, etc,, by individual lot owners. DRAINAGE The minimum drainage requirement of a farmiot subdivision is open canal which shall conform with the natural drainage characteristics of the subdivision site. These canals shall be built along the roads and constructed of suitable materials to prevent ‘erosion of the sides and bottom, €g., compacted gravel, concrete slabs for the bottom, and bricks, stone or concrete hollow blacks (grouted with cement) for the sides, These canals shall also run with a certain slope to ensure free flow af water and prevent stagnation, POWER Power source and connection and other design standard shall conform with the provisions of tthe Electric Code. 1. Wiring System 2. Street lighting. 3. Utility poles ROAD FEATURE SPECIFICATIONS TABLET Meximwm = Number == Minimum = Minimum = Open, Type ‘iniroum Pecan of Ceriage = Sidewalk = Cana ROW (mm) = Grade (Lana way ion) Width md ton Major Read 10 , 2 a0 1.00x2 variable (Minar Red 8 ? a 60 9.6042 variable Atiey 3 7 1 - - optional REQUIRED SITES FOR COMMUNITY FACILITIES IN A FARMLOT SUBDIVISION TABLE 2 Number at Lots or Famities and Recommended ‘Area Requirement for Exch Facility (Sq, Metis) Walking Dix Failin 100 200 400-80 emt = tant from 240 6008 me soo owe Farthect Lot (Km) Park and play raved 100 200 400-700 12001600 1 Neighborhood! mnutt-purore center 50 76 100180 200200 18umber ef Lat or Families wad Recommended ‘Aron Requirement tor Each Factity (Se, Materl Wading ite Feet: 100-208 400 BOD md tame trom ae 08S wee Farthest Lot (wend ‘Serve Canter 50100 a a ee) 1s Hate Comers Clie 50 7% wo 8 80 0 1 Community Store/Tolioape ‘oo 8 00200 rr) Drugstore 60 eo 0 » ‘10 os ‘Site tor ri glow: um 100 1s Elementary Scoot 5000 os ign Schoo! 5000 18 Total Aree OOO Boo 138700012800 ALLOWABLE USES AND :AREA REQUIREMENTS Recent developments in small scale farming encourage the muttiple, or better, the integrated approach to farming in view of maximizing tand use, Examples of combination of activities are swine-fish-chicken combination, swine-blogas-fish-crops, fruit treestegumen-fish, etc. 1. Crop farming: no limitation = tree crops = mixed-orchard ~ diversified erops 2. Poultry farms: will be Imited to hackyard scale, Le., ma per bird, of 500 birds per tot; 0.19 sq.m. 3. For swine: will be limited to backyard seale, | hog. 4. For aqua culture (e.g., carp, tilapia, cel, etc,}: no limitation max. of 10 sows per lot; 3 sq.m, pet 3. For livelihood: backyard scale, such as:5.1 milking cow: max. of $ cows; 12 sq.m. for 4 to S cows 5.2. cattle fattening: max. of 5 cows; 8 sq.m, per cow 5.3 goat raising: max. of 10 goats; 6 sq.m. per goat (for shelter or quarters only) 6. Vermiculture: largely depends on scale of production; initially may need 20 sq.m. 7, Agrorindustrial activities: mited to backyard scale, og.: 7.1 rice mill: max. of 300 square meters at a distance not less than 1,000 meters from another mill 7.2. food processing/preservation: shall be within the buildable area 8. Cottage Industries: limited to backyard scale, e.g. 8.1 handicrafts: shall be within the buildable area 8.2. ceramics: shall be within the buildable area 9, Others, or any combination of the above, Rule O11 REGISTRATION AND LICENSING OF FARMLOT SUII)IVISION PROJECTS SECTION 10, APPLICATION FOR REGISTRATION. The owner or the real estate dealer interested in the sale of lots (farm) in a Farmlot subdivision project, shall register the project with the Commission by filing 2 sworn registration statement containing the following information; a. Name of the owner and dealer; b, Name, location and area of farmlot subdivision projects; The location of the owner's and dealer's principal business office, and if the owner is a non-resident Filipino, the name and address of his agent or representative in the Philip- pines authorized to receive notice; 4. The names and addresses of all directors and officers of the business firm, if the owner and/or dealer Is a corporation, association, trust or other entity, and of all the partners, If it is a partnership; ®. The general character of the business actually transacted by the owner; and {A statement of the capitalization of the owner, including the authorized and outstanding ameunt of its capital stock and the proportion thereof which is paid up. ‘The following documents shall be attached to the registration statement: i Copy of Transfer Certificate of Title in the name of the applicant if none was submitted , in-application for plan approval;'b. Approved farmiot subdivision plan as verified by the Bureau of Lands; ¢. Articles of Incorporation or Articles of Partnership or Association as the case may be, with all the amendments thereaf and existing byaws or instruments corresponding thereto and a copy of latest annual corporate report to the Securities and Exchange ‘Commission, Including a copy of the latest financial statements showing the amount and ‘general character of Its assets and tlabllities certified by 2 certified publie accountant; 4. Affidavit of the owner that the property i free frorn liens and encumbrances, except legal easements and restrictions. in case the farmiat subdivision project of portion thereof Is mortgaged, there is an undertaking by the mortgages to release the mortgage on any farmlot as:300n as the full purchase price for the same is pald by the buyer; . A copy of the contract of management or development, if the management and/or development will be undertaken by a person other than the owner; f. A-copy of any clreular, prospectus, brochure, advertisement, letter or communications. ‘to be used to the public offering of the farmiat subdivisions; and 4 Copy of form contract to be used In the sale-of farmlots. SECTION 11, CERTIFICATE OF REGISTRATION. Upon finding that the project may be registered in accordance with the provislons of these Rules the Commission shall catise to be pub- lished onde, at the expense af the applicant a notice of the filing of the registration statement In twa (2) newspapers of genéral circulathons, one published in English and another in Pilioioo, reciting that a registration statement for the sale of farmlot subdivision has been filed with the Comission and that the aforesaid registration statement as well as the papers attached thereto, are open to inspection during business hours by interested parties. ‘After completion of the publication and upon submission of the affidavit of publications, the Commission shall in the absence of any impediment, issue a Certificate of Registration upon pay- ment of the prescribed fees, SECTION 12. LICENSE TO SELL. No owner or dealer shall sell amy disposable subdivision farmiot in the registered project without a license to sell ised by the Commission, Upon proper application therefor, submission of the required work program, performance bond and payment of the prescribed license fee by the owner or dealer, the Commis: sue 10 him a license to sell the lot in the project of portion thereof cavered by the perfar:: 4if the Commission is convinced that he ls of good repute, his business is financially stavie, and the proposed sale of the farmiot subdivision lot to the public Is not fraudulent. SECTION 13. PERFORMANCE BOND, The performance bond required in these Rules may be in any of the following forms: 4. If found to be financially able to complete the project, @ surety bond anwuing to twenty percent (20%) of the development cost Isued by a duly accrecits: cor ting company and acceptable wo the Commission. If shall contain a claus~ 03 i; a°2ng others that It shall remain In full force and effect untess it is ordered canceied or released "A by the Commission. Me" 'b. Certificate of guarantee of any bank or financing institution of good standing in favor of the Commission, Projects approved prior to the promulgation of Executive Order No. 648, in case the pro~ ponent has been found financially unable to develop the project, a cash bond equivalent to fifty per cent (S05) of the development cast which may be in the form of: 1. Fiduciary deposit made with cashier and/or disbursing officer of the Commission; 2. Accortificate of guaranty deposit issued by any bank or financing Institution of good standing In favor of the Commission; 3. A letter from any bank of recognized standing certifying that so much has been set aside {rom the bank account of the applicant in favor af the Commission which amount may be withdrawn by the Chief Executive Officer of the Commission or by his duly authorized representative, at any time the principat fails or refuses to comply with his utes and obligations under the band contract; ar 4. Any irrevocable credit tine to be utilized in the deeclopment of the project from any bank of recognized standing and a refinancing ot financial re-structuring program indicating sources of funding from duly accredited funding institutions. After the Issuance of license to sell the Commission finds, that the performance bond is or for any cause, has become worthless, inadequate of insufficient, the ewner ar dealer after due notice, shall be required to give an additional performance bond ta be pasted within ten (10) days from receipt of such notice, otherwise, the license shall be suspended or revoked. When the owner or dealer desires to have his bond cancelled, released, or replaced he shalt fite an application in writing with the Commission stating therein his reasons, ‘The bond filed may be cancelled of released when the undertaking under it has been complied with, SECTION 14, EXISTING FARMLOT SUBDIVISION PROJECTS. The owner or dealer of an existing farmiot subdivision project shail register the project with the Commission within one year from publication of these Rutes by filing & sworn registration statement in triplicate containing the following information: , Name of the owner and dealer; b. Name, location and area of projects; €. Location of the owner's and deater's principal office, and if the owner is nomacsident Fitipine, the name and address of his agent or representative in the Philippines authorized to receive notice; id. Names and addresses of all the directors and officers of the business firm, if the awner} dealer is a corporation, association, trast or ather entity, and of all partners, if it is a partnership: ¢, General character of the business actually transacted by the owner; Statement of the capitalization of the owner, including the authorized and outstanding Xt amount of its capital stack and the proportion thereof which is paid-up. 4po ‘The application shall be accompanied by the following: 2 a. Approved Farmlot Subdivision plan; b, Latest financial statements showing the amount and general character of his assets and Niabilities; G _ In case of a business firm, a copy of its articles of Incorporation or articles of partnership or association, a5 the case may be, with all the amendments theteof and existing bytaws or instrument corresponding thereto; 4. Fact sheet containing the material information on the operations of the projects to Include the number of the lots sold, not yet fully paid, accounts receivable the extent) status of land development and the cost of complete develapment; c. Certified true copy of title and tax declaration to the property; f. If the property is mortgaged, the mortgage contract and status of mortgage loan certified by the mortgagee; 8 Copy of any form contract, circular, prospectus, brochure, advertisement, letter or communication used or to be used for the public offering of the farmlot subdivision lots; fh. If the facilities, improvements, and other forms of development cannat be completed: within. one (1) year from the registration thereof, a detailed program of development indicating the improvements to be constructed, provided for and their corresponding development cast and time frame of construction and completion; 1, Certification from the appropriate government agency that there is an adequate supply of water. If the owner ar developer of a farmlot subdivision project cannot complete compliance with his obligations within one (1) year from the registration thereof he shall file an adequate perform- ance bond in accordance with Section 13, (¢), hereof. If the application for registration is found 10 be in order the Commission shall register the project and issue a Certificate of Registration to the owner or dealer upon the payment of the registration fee. Thereafter the owner or dealer shall apply with the Commission for a license to sell by filing sworn application in triplicate containing the following infarmation: a Name and address of the owner and dealer; 6. Name and location of project; and ©, Certificate of Registration number of the project. Whenever the Commission finds that the owner or dealer Is «o! good repute, has complied with ror orders, rules and regulations of the Commission, his business is finangglly stable, the A13 proposed sale of the farmlots to the public Is not fraudulent, and! he has conducted his business in accordance with law and sound business principtes, a license to sell as to the disposable lot In the project shall be issued to the owner or dealer upan payment of the prescribed license fee. Rule IV REGISTRATION OF REAL ESTATE DEALERS, BROKERS AND SALESMEN SECTION 15, REGISTRATION OF REAL ESTATE DEALERS, BROKERS AND SALES- MEN. Real Estate dealers, brokers and salesmen engaged in the sale of residential subdivision lots and/or condominium units, likewise engaged in the sale of farmlots are exempt from registering anew with the Commission If and when they have already registored. Homever, thase who shi engage in the sale of farmlots only, shall be required to register with the Commission following the same procedure set forth in Rule 1V of the Rules implementing P.O, 957, SECTION 16, CERTIFICATE OF REGISTRATION. Whenever the Commission shall find that the applicant Is of good repute and has filed the required bond, he shall register the applicant and issue to him a Certificate of Registration, upon the payment of the prescribed registration fee. The Certificate of Registration shall expire on the thirty-first day of December af each year; provided further, that the Certificate of Registration issued for the current year 1981 shall expire on the 31st day of December 1981, The Certificate of Registration of salesman shall be cancelled upon the termination of his employment with a deater or broker, The dealer or broker shall notify in writing the Commissian af such termination, otherwise he shall be liable for acts committed by the salesman prior to the Feceipt of the notification by the Commission. The salesman shall surrender tothe Commission for cancellation of his Certificate of Registration within fifteen (15) days from the date his employ- ment is terminated. SECTION 17. BONDS, The Bond required under these Kutes may be either a cash or 3 surety bond issued by a duly accredited bonding company, The bond shall contain a clause stating among others that It shall remain in full foree and effect unless it is ordered cancelled ar released by the Commission, The bond shall be executed in favor of the Human Settlements Regulatory Com- mission conditioned upon the faithful and honest discharge by the applicant, as well as the salesman working under a broker or dealer, of their duties and shall further provide that upon failure to. dis: ‘charge those duties,.the applicant shail be flable on the band to any and all persons who may suffer toss by reason of such failure, The amount of the bond shall be Five Thousand Pesos (P5,000.00) for Dealet/Broker and One Thousand Pesos (P'1,000.00) for Salesmen. These bands shall no longer be required if equivalent bonds or securities have already been posted by applicants for the same Purpose with ather government agencies pursuant to law. A dealer, broker of salesman may apply in writing with the Commission for the cancellation and release of his bond stating therein his reasons. In appropriate cases the Commission may require ‘the applicant to cause the publication of a notice therefor at the latter's expense in a newspaper ‘of general circulation stating, amang others, the fact of such application. The proof of publication shall be submitted to the Commission, Any person, having any claim for money ar property against the dealer, broker or salesman in his real estate service or practice, must file his claim with: the Commission within fifteen (15) days fram the date of publication. |f the reason for the cancellation a the bond is his cessation from further engaging in business of sctling farmiot subdivision lots (ar A“4 condominium units) the dealer, broker of salesman shall surrender his certificate of registration to the Commission and his name shall be cancelled from the Register ol Uealers, Brokers and Salesmen. Rule V MISCELLANEOUS PROVISIONS ION 18, DEFINITION OF TERMS, a. Executive Order — shall mean Executive Order No, 648 entitled "REORGANIZING THE HUMAN SETTLEMENTS REGULATORY COMMISSION. b, Commission — shall mean the Human Settlements Regulatory Commission. «. Existing Farmlot Subdivision Projects -- shall refer to fammlot subdivision projects ap- proved by the city/municipal government or Bureau wf Lands/Land Registration Com- mission/courts which is not fully developed{canstructed or there: are still unsold sub- division lots as of June 1978. d. A Farmlot Subdivision — is a planned community intended primarily for intensive agrl- cultural activities, and secondarily for housing. A planned community consists of the Provision for basic utitities, judicious allocation of areas, good layout based on sound planning principles. ®.Agricultural Lands — or farm lands on the other hand, are parcels of land ranging from 0.2 to 50 of more hectares (NCSO, MAR) are exclusively or predominantly used far cultivation, livestock production and agro-foresiry without the intended qualities of the farmlot subdivision, f, Feasible ~ when location is in conformity to the land use plan of the community, and the Physical features of the Jand can be developed without hazard to the environment at @ Feasonable development cost, & Economically Viable — Net Income derived from a Seven Hundred Fifty (750) sq. m. lot mode! of varied farm activities yields production or positive income, fh, Buildable Area ~ the maximum area allowed for structures attendant to agricultural activities, 1. Surface run-off — (rain/storm) Accumulated water or ground surface when soil is unable to absorb the water due to pavement, ¢.g., concrete, asphalt. SECTION 19. SUBMISSION OF SEMESTRAL REPORTS ON OPERATIONS. Every owner or dealer of a registered framlot subdivision project shail submit to the Commisson semi-annual Feports. on operations showing the extent/status of land development, changes In corporate officers or managers and their addresses within sixty (60) days after the ond of each semester, Copies of Sorporate reports to the Securities and Exchange Commission shall also be furnished to the Com mission. SECTION 20. DISPLAY OF CERTIFICATE OF REGISTRATION AND LICENSE TO 5 The certification of registration and License to Sell issued by the Commission shall be15 displayed in a conspicious place in the principal office of the owner, dealer, broker or salesman, a5 the ease may be and a xebox copy thereof in all its branches and offices. SECTION 21. LOST OR DESTROYED CERTIFICATE OF REGISTRATION OR LICENSE TO SELL, Upon loss or destruction of a certificate of registration or license to sell a duplicate copy thereof may be issued by the Commission after satisfactory proof of such loss or destruction, and payment of the prescribed fee. The fact that such duplicate has been issued shall be made of record. SECTION 22. ADVERTISEMENT. Advertisement through print ar broadcast media cor cerning sale of farmiot subdivision lots shall be cleared with the Commission pursuant to this.rule, ‘Advertisements shall contain, among others, the license number to sell farmlot subdivision projects as approved by the Commission. SECTION 23, EXTENSION OF TIME FOR COMPLETION, Request for extension of time to complete development of a farmlot subdivision project may be granted only in cases where non- completion of project is caused by fortuitous events, leyal orders or force majeure and with the written notice to lot buyers without prejudice to the exercise of their rights pursuant to Section 29, hereof, The request for extension of time for completion shall be accompanied by a revised wor program for a period of one year with project costing and financing scheme therefor. In appropriate cases the Commission may require the posting of additional performance bond not exceeding Fifty percent of development cost, cancell the license to sell, if any, or issue such orders it may deem Proper. SECTION 24. MORTGAGES. Mortgage of any lot by the owner or developer shall be cleared with the Commission, SEGTION 25. REALTY TAX AND OTHER CHARGES. No realty tax assessment or other charges shall be imposed on a lot buyer. However, if the buyer has actually taken possession of and ‘occupied the farmlot subdivision lot he shall be liable to the owner or developer for such tax and assessment effective the year following such taking or possession and occupancy, SECTION 26. COMPLAINTS AGAINST OWNERS, DEVELOPERS, DEALERS, BROKERS AND SALESMEN. Complaints or proceedings against owners, developers, dealers, brokers and salesmen shall be resolved In accordance with the Rules of Procedure to Govern the Conduct of Hearings Before the Commission, SECTION 27. TRANSFER OF OWNERSHIP OR CHANGE OF NAME. Request for transfer of awnership and/or change of name may be granted only if there is a deed of absolute sale aver the farmlot subdivision project sought to be transferred and/or the name thereof changed with an undertaking on the part of the transferee to assume full responsibility for the completion of the development thereof. Such request for transfer of ownership or change of name shall be published at applicant's expense at least once in a newspaper of general circulation within the city or municipality where the project Is located, SECTION 28. ALTERATION OF PLANS. Requests for alteration of residential subdivision to farmlot may be granted if the requirements of Section 2, Rule | of the rules and regulations for yore subdivision are complied with. A16 SECTION 29, NON-FORFEITURE OF PAYMENTS, No installment payment made by a buyer in a new or existing farmlot subdivision project for the lot he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after duc notice to the owner or developer and clearance from the Commission desists from further payment due to the failure of the owner or developer to develap the project according to the approved plans and within the time jit for complying with the same, Such buyer may at his option be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate. SECTION 30, REGISTRATION OF CONVEYANCES, Sales or conveyances of the farmlot subdivision shall be registered within 180 days from execution thercof by the seller with the Regis ter af Deeds af the province on city where the property is situated. Except as. may otherwise be provided for by law the Commission may in appropriate cases cause the Register of Deeds to cancel registration, entries or annotations on titles made on this regard. SECTION 31. ADMINISTRATIVE FINES, a, Any owner or dealer who sells any farmlot subdivision project within the period pre- scribed under these rules and regulations shall be penalized by a fine of Five Hundred Pesos (P500,00) per day of delay but not exceeding Ten Thousand Pesos {P10,000.00), as provided under Section 11 of Executive Order No. 648, b. Any owner or dealer who sells any farmlot subdivision without a valid license fram the Commission to sell such farmlot (or unit) shall be penalized by a fine of not more than Ten Thousand Pesos (P10,000.00). ¢. Any salesman, broker or dealer who engaged in the business of selling farmlot subdivision lots without a valid certificate of registration from the Commission shall be penalized af a fine not mare than Ten Thousand Pesos (P10,000,00), SECTION 32, CRIMINAL PENALTIES, Any person violating any provisions of these Rules and Regulations upon conviction, shall suffer the penalties provided fur under Section 12 of Execu- tive Order No. 648, These shail not preclude impositon of administrative fines and such other administrative sanctions as the Commission may impase pursuant to Section 11 of [-xecutive Order No. 648. SECTION 33. IDENTIFICATION OF FARMLOT SUBJECT OF SALE, The owner or dealer of a farmlot subdivision project shall attach to. and which shall form part of the sale document of any farmlot, a sketch pian clearly showing the area, boundaries and dimensions of the farmlot in relation with the block and the whole project, as well as the location of the project in relation with public raads and other land marks, to be certified by a licensed geouleti¢ engineer and signed by the seller and buyer. SECTION 34, BROKER/SALESMAN AS WITNESSES TO SALES, The broker or salesman who negotiated the sale of a farmlot subdivision shall act as one of the witnesses to the sales docu- ment with an indication of his Certificate of Registration number and renewal date. If the sale was directly made by the owner of dealer, that fact must be so stated in the sales decument, SECTION 35, FEES. The Cammission shall collect the following fees to be pald upon sub- iission of complete documents for application: 4% | eb el ea i aieA. Approval of Development Plan 1, Preliminary Processing Fee — P50.00 and additional P5.00 for every hectare or fraction thereof in excess of five (5) hectares, 2. Final Processing Fee — P1'$0,00 per hectare or any fraction thereof. 3. Alteration of Plans Fee = Alteration fees shall cover onty the affected portions of the subdivision, prorated against the fees for the total area 8, Registration and License to Seli of Farmlot Subdivision — P5.00 per saleable lot and additional fees as follows: 50.00 for Certificate of Registration P50.00 for License to Sell Certificate, SECTION 36. AUTHORITY FOR THE ISSUANCE OF SUPPLEMENTAL DIRECTIVES OR MEMORANDA, Authority Is hereby given to the Chief Executive Officer of the Commission to issue supplemental directives or memoranda implementing or interpreting and consistent with the provisions hereof, SECTION 37. APPLICABILITY, These Rules shall apply only to farmiot subdivision. Devel- ‘opment of an existing farmlot subdivision shall be governed by the design standards and require ‘ments set forth by the appropriate government agency obtaining at the time of its appraval, SECTION 38. SEPARABILITY CLAUSE. The provisions of these Rules are hereby declared separable, and in the event of such provisions are declared invalid, the validity of all other provisions shall not be affected thereby, SECTION 39, EFFECTIVITY. These Rules and Regulations shall take effect immediately after its publication once (1).2 week for two (2) cansceutive weeks in any newspaper of general circulation, Promulgated this 28 December 1981, at Makati, Metro Manila. APPROVED: < Meecey: a ERNESTO C, MENDIOLA RAMON B. CARDENAS Commissioner and Comminioner Chie! Executive Officer . BORROMEO ‘Commissioner