G.R. No. 189755; July 4, 2012
EMETERIA LIWAG, Petitioner, vs. HAPPY GLEN LOOP HOMEOWNERS ASSOCIATION, INC., Respondent.

FACTS

The case involves a water facility in Happy Glen Loop Subdivision. The original developer, F.G.R. Sales, assigned its rights over subdivision lands to Ernesto Marcelo as settlement of a debt. Marcelo, as successor-in-interest, represented to lot buyers and regulatory agencies that a water facility, including a deep well and overhead tank on Lot 11, Block 5, was available. Residents relied on this facility for nearly 30 years. In 1995, Marcelo sold Lot 11 to Hermogenes Liwag, husband of petitioner Emeteria Liwag. Upon Hermogenes’s death, Emeteria demanded the removal of the water tank. The Homeowners Association refused and filed a complaint with the HLURB for specific performance and annulment of the sale.
The HLURB Arbiter ruled for the Association, declaring an easement for the water facility on the lot, voiding the sale to the Liwags, and ordering damages. The HLURB Board of Commissioners reversed, finding the lot was not designated open space and its use was merely tolerated. The Office of the President reinstated the Arbiter’s decision. The Court of Appeals largely affirmed the OP, upholding the existence of an easement and the HLURB’s jurisdiction to annul the sale, but deleted the criminal referral and monetary awards against petitioner.

ISSUE

The primary issue is whether Lot 11, Block 5 is burdened by a compulsory easement for a water facility that forms part of the subdivision’s mandatory open space, thereby rendering its sale to a private party void.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals. The HLURB has exclusive jurisdiction over cases involving the sale of subdivision lots and the enforcement of open space requirements under P.D. No. 957. On the merits, the Court ruled that an easement for a water facility indeed exists on the subject lot. The developer’s consistent representations to buyers and the HLURB that the lot contained the subdivision’s sole water source created a compulsory easement under Article 624 of the Civil Code. This easement was established for the benefit of the entire community.
Crucially, this water facility easement constitutes part of the “open space” required by law for subdivisions. Presidential Decree No. 1216 defines open space as an area reserved for public use, which includes facilities for common use like a water system. The lot, therefore, could not be lawfully sold for private ownership as it was dedicated to public use. The sale to Hermogenes Liwag was void for being contrary to law and public policy. Petitioner, as successor, could not demand removal of the facility. The Court emphasized that the dedication of the lot as open space is inscribed in the property’s juridical nature, binding all subsequent owners, and its use as a water source for three decades confirmed its public character.