78 TGN Realty v. Teresa Homeowners Association
Once the registered owner or developer has
Co-Ownership - HLURB| September 23, 2003 | Vitug, J.
ISSUE/S:
● Whether or not TGN Realty Corp. had already fully complied with the
approved development plan for Villa Teresa Subdivision.
RULES/LAWS:
● PD 957
○ Sec. 19. Advertisements. Advertisements that may be made by
the owner or developer through newspaper, radio, television,
leaflets, circulars or any other form about the subdivision or
the condominium or its operations or activities must reflect
the real facts and must be presented in such manner that will
not tend to mislead or deceive the public.
○ Sec. 22. Alteration of Plans. No owner or developer shall
change or alter the roads, open spaces, infrastructures,
facilities for public use and/or other form of subdivision
development as contained in the approved subdivision plan
and/or represented in its advertisements, without the
permission of the Authority and the written conformity or
consent of the duly organized homeowners association, or in
the absence of the latter, by the majority of the lot buyers in
the subdivision.
○ Sec. 31. Donations of roads and open spaces to local
government. The registered owner or developer of the
subdivision or condominium project, upon completion of the
development of said project may, at his option, convey by way
of donation the roads and open spaces found within the
project to the city or municipality wherein the project is
located. Upon acceptance of the donation by the city or
municipality concerned, no portion of the area donated shall
thereafter be converted to any other purpose or purposes
unless after hearing, the proposed conversion is approved by
the Authority.
○ Sec. 33. Nullity of waivers. Any condition, stipulation, or
provision in contract of sale whereby any person waives
compliance with any provision of this Decree or of any rule or
regulation issued thereunder shall be void.
● PD 1216
○ Sec. 9, Rule IV.
secured the Certificate of Completion and has executed a Deed
of Donation of Road Lots and Open Space, he/she shall be
deemed relieved of the responsibility of maintaining the road
lots and open space of the subdivision notwithstanding the
refusal of City/Municipality concerned to accept the
donation.
Should the registered owner or developer merely secure a
Certificate of Completion and has executed a Deed of
Donation of Road Lots and Open Space, he/she is still deemed
responsible for the maintenance of the subdivision facilities in
which case a reasonable amount of the performance bond shall
be reserved to guarantee the maintenance of the road lots and
open space. This reserved amount shall be totally released by
the Commission only upon showing by the registered owner
or developer of proof of a deed of donation executed in favor
of the City/Municipality concerned subject to the provision of
Sec. 7 of these Rules.
● EO No. 648
○ COC certifies the completion of a subdivision project in
accordance with the approved development plan.
ANALYSIS:
● TGN Realty Corporation owned and developed starting on August 22,
1966 the Villa Teresa Subdivision on a parcel of land situated in
Barangays Sto. Rosario and Cutcut, Angeles City, Pampanga.
● The project soon had many lot buyers who built or bought residential
units thereon. Villa Teresa Homeowners Association, Inc. (VTHAI) was
the association of residents and homeowners of the subdivision.
● Respondent sent complaints to petitioner about the subdivision.
Petitioner did not take any action, so respondent filed with the HLURB
a complaint for specific performance.
● The arguments as well as the findings of the HLURB are as follows:
VTHAI TGN REALTY CORP. HLURB through Arbiter
Atencio Jr.
Opening of Aureo St. and Streets now under the Closure and exclusive Development of the open Did not advertise of open
the closed section of Flora control and supervision appropriation of the space space; former VTHA
Ave. of the HAU streets for HAU violates removed playground
Sec.22

Violation of title by using TGN’s prerogative as the Transfer and conversion

Completion of all fencing Perimeter fence already Recommended fencing of lots for Holy Angel owner, titles are to school compound is an
at the perimeter constructed prior to unfinished perimeter University educational and not alteration violating Sec.
Pinatubo eruption but a fence especially those residential 22
portion destroyed by leading to the squatter
1992 flash floods area
Plan of HAU to construct HAU the proper party Non-compliance with
Closure of all openings an overpass requirements is illegal
at the perimeter fence Gate serves as an Violation of Sec. 22 as it is
(Pritil gate) emergency entry/exit to part of the perimeter
the subdivision fence Severe pruning of all HAU the property; new Necessary permits to be
Talisay trees along trees already planted by acquired
perimeter of HAU HAU
Construction and Guard house was No clear proof that TGN
reimbursement of constructed at the Flora shall construct a guard ● HLURB Commissioners, Office of the President, and CA all affirmed
guardhouses and gate Ave. exit, but was house or reimburse the and adopted the findings of the HLURB Arbiter.
transferred by VTHA. No cost of its construction ● TGN filed its manifestation that it had secured a COC from the HLURB.
agreement to reimburse.
● VTHAI filed comment and counter-manifestation
● TGN moved to strike the comment and counter-manifestation, alleging
Construction of adequate Effective for 30 years and Maintenance still by TGN that VTHAI’s assertion that no inspection had been made does not
drainage only recently were because it failed to secure dispute genuineness of COC.
manholes absorbing slow COC mandated by PD ● VTHAI countered, stressing that no inspection had been conducted by
1216. Such would have the HLURB Regional Office, that the plan had not been completed, and
transferred responsibility that TGN had not yet complied with the HLURB decision.
Completion of all All sidewalks to LGU or HOA.
CONCLUSION/APPLICATION:
sidewalks constructed except
● Issues raised by TGN regarding the complaint of VTHAI are essentially
portion leveled by heavy
factual in nature. SC is not a trier of facts, and therefore upholds the CA
equipments of VTHA
in this case.
● HLURB arbiter’s decision (Sept. 25, 1998) found that TGN should
complete and maintain the project. Findings became the basis of Board,
OP, CA.
● However, HLURB Regional Office issued the COC (Sept. 28, 2004),
stating that the project had been completed in accordance with the
approved plan.
● The findings and the COC both having been issued by the HLURB
itself, through its agents, requires evaluation and re-evaluation of
factual matters. Case remanded to HLURB, being the agency with the
expertise to monitor completion of subdivision projects.