SC: Written Donation a Must for Subdivision Land Transfer to LGU
The #SupremeCourtPH (SC) has reiterated that the donation of subdivision land to a local government unit (LGU) must be in writing and acceptance must be in the same deed or a separate instrument for ownership to be transferred.
In a Decision written by Associate Justice Jhosep Y. Lopez, the SC’s Second Division ruled that the Quezon City (QC) LGU failed to establish that the open spaces and road lots in Capital Park Homes Subdivision (CPHS) had been donated to the city for public use as it was not able to show a copy of any deed of donation as well as any proof of acceptance of such donation.
Rainier L. Madrid, a resident of subdivision behind CPHS and QC taxpayer, filed a petition to determine the nature and ownership of open spaces and road lots of CPHS. Originally intended for the exclusive use of CPHS homeowners, these properties have become accessible to the public.
Madrid alleged that the QC LGU use substantial public funds for the improvement of these properties while they were privately owned. He pointed out that VV Soliven, CPHS’ developer, failed to present proof that the properties had been donated to the QC LGU. He stressed that without proof of donation, the properties remain private and cannot be treated as public property.
The QC LGU maintained that under QC Ordinance No. 5852, series of 1964, subdivisions must dedicate 6% of their total open spaces for public use and turn these over to the city before any subdivision plan can be approved. It noted that CPHS’ subdivision plan was approved in August 1969, indicating that CPHS had complied with the ordinance.
Capital Park Homeowners Association, Inc. (CPHAI) admitted the absence of deed of donation but cited a board resolution stating that the properties were donated to the QC LGU.
CPHAI also questioned Madrid’s standing to file the petition, as he was allegedly not directly affected.
The Regional Trial Court (RTC) dismissed the petition for lack of cause of action and declared Madrid as not a real party-in-interest.
The Court of Appeals (CA) disagreed and recognized Madrid’s right to file the case since he could be affected by the alleged misuse of public funds. It held that the areas in question remain private property as there was no proof that the subdivision developer had donated them to the QC LGU.
The SC upheld the CA’s ruling, emphasizing that the QC LGU must prove a valid transfer of property in its favor. However, the LGU did not provide a deed of donation or any proof of acceptance, as required under the Civil Code.
The SC clarified that open spaces and road lots in subdivisions do not automatically become government property. LGUs cannot rely solely on ordinances or laws to claim ownership. A written donation is required to transfer ownership. Without it, the property remains private and cannot be claimed by the local government.
Read the full text of the press release at https://tinyurl.com/499tc8hm
Read the full text of the Decision at https://tinyurl.com/bde7hv7u
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