Have you ever wondered what you can or cannot do on your property?
Most properties, especially those in gated communities, have titles annotated with the Deed/Declaration of Restrictions (DOR), a legal document that outlines specific limitations on how the property can be used. These restrictions are designed to promote harmonious usage among the property’s owners and residents, thereby safeguarding its value, if not enhancing it.
Homeowners and condo unit owners who seek a peaceful abode are encouraged to understand these restrictions.
1. Contractual Nature. DORs are essentially contracts. As the initial owners, developers can establish conditions and limitations on how lots or units within their development can be used and maintained. These restrictions are stipulations that subsequent buyers must accept when purchasing a property with a pre-existing DOR on the title. The buyer’s acceptance of the deed, whether implied or explicit, forms a binding contract. As per Article 1306 of the Civil Code of the Philippines, contracting parties can establish such stipulations, clauses, terms, and conditions as they deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
2. Purpose and Content. DORs establish standards for community living in a development. These standards vary based on the development’s needs and vision. Common restrictions include building standards, architectural guidelines, easements, setbacks, rights-of-way, land use restrictions, and activity and maintenance regulations. Membership and obligations to the Homeowners’ Association, such as dues and adherence to rules, are also outlined in varying degrees.
3. Legal Basis. Republic Act No. 4726, commonly known as the Condominium Act, mandates the registration of a DOR for condominium projects before any unit is conveyed. Section 9 of the Act states that the owner of a project must register a declaration of restrictions before the conveyance of any condominium within the project. These restrictions shall constitute a lien on each condominium in the project and shall bind all condominium owners in the project.
Presidential Decree No. 957, commonly known as “The Subdivision and Condominium Buyers’ Protective Decree,” regulates the sale of subdivision lots and condominium units, although it doesn’t directly mandate DOR for all subdivisions. This decree emphasizes the importance of providing buyers with clear and complete information. It also establishes the legal basis for these restrictions and emphasizes their binding nature.
4. Binding Effect, Amendments and Termination. Restrictions are designed to benefit all property owners within the community, not just a privileged few. Therefore, they cannot be arbitrary, discriminatory, or violate existing laws or the overall public good. To ensure that subsequent owners and third parties are aware of these restrictions, the Deed Of Restrictions (DOR) must be registered and annotated on the property’s title. This public notice serves as a crucial tool, informing potential buyers about the restrictions before they make a purchase. Moreover, amendments to the DOR typically require the consent of a specified percentage of property owners, as outlined in the DOR itself. Furthermore, DORs may have a designated period of effectiveness before expiring, unless renewed.
5. Enforcement and Implications of None Adherence.The DORs serve as the legal framework that empowers the HOAs to enforce restrictions, manage common areas, and ensure the well-being of the community. Violating the DORs can result in legal repercussions, including the imposition of fines. Developers, HOAs, or individual property owners can also take legal action against non-compliant parties to compel compliance or seek compensation.
6. In Case of Conflict. Properties are usually subject to both zoning ordinances and DORs. Zoning ordinances govern land use within a larger area, while DORs are private agreements that have a smaller area of coverage. In the event of conflicts, the more restrictive provision typically prevails.
Prospective buyers should obtain a copy of the Deed Of Restrictions (DOR) from the Registry of Deeds where the property is located. The DOR is typically attached to or referenced in the property’s title. Understanding the restrictions and obligations associated with the property is essential for making informed decisions and avoiding potential legal issues. It is strongly advised for property buyers to thoroughly review and comprehend the DOR before making a purchase.
Henry L. Yap is an Architect, Fellow of both Environmental Planning and Real Estate Management, and one of the Undersecretaries of the Department of Human Settlements and Urban Development.
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