Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 814)
The main purpose of Presidential Decree No. 814 is to prescribe the land tenure system for the Tondo Foreshore and Dagat-Dagatan Urban Development Project to rationalize land use, particularly in urban areas, and improve the quality of life of residents in these areas.
The project covers the Tondo Foreshore, Vitas, Dagat-dagatan, and its adjacent areas designated as Planned Areas for New Development (PLAND) under Letter of Instruction 299 dated July 29, 1975.
The decree prescribes two modes: (1) Freehold with restrictions, applicable only to titled lots and claims with vested rights, and (2) Leasehold with or without the option to purchase, applicable to untitled, vacant, unclaimed lands without vested rights.
A Citizens' Committee of five members is formed in each barangay within the project area. Its functions include processing requests for transfer of residential land rights and sub-letting, submitting recommendations to the Authority, and ensuring transfers meet prescribed criteria.
Freehold land under the project cannot be transferred, alienated, or otherwise disposed of to persons who do not meet criteria set by the Authority (such as income, multiple ownership, and legal conformity), except by hereditary succession. The Citizens' Committee reviews such transfers for approval by the Authority.
Lease grants are for 25 years, renewable for another 25 years at the lessee's option. After continuous occupancy of five years, the lessee may opt to purchase the land at market value with credit for lease payments made.
Sub-letting is subject to the recommendation of the Citizens' Committee and approval of the Authority and applies to both freehold and leasehold lands.
Commercial and industrial lands shall be disposed of by sale and/or lease under conditions prescribed and implemented by the Authority.
All lessees and holders of freehold titles are required to pay normal real property taxes to the local government.
If any section or provision is declared unconstitutional or invalid, other sections not affected shall continue in full force and effect according to the separability clause in Section 11.