KISAN LU LANDS & DEVELOPMENT, INC.

(Sample)
DEED OF RESTRICTIONS

The sale of any lots of the real estate subdivision SANTIAGO VILLAS located at Sitio Ubat,
Catalunan Grande, Davao City, Philippines, shall be subject to the following RESTRICTIONS,
EASEMENTS, CONDITIONS AND DEFINITIONS which shall be annotated on the corresponding
certificate/s of title as property encumbrances, to wit:

1. RESTRICTIONS

That the VENDEE shall bind himself to strictly comply with the following essential restrictions
and conditions which are enforceable by the VENDOR or its successors and assigns and/or KISAN LU
LANDS & DEVELOPMENT, INC. by appropriate action to wit:

a.) ILLEGAL ACTIVITIES

The property shall not be used for illegal or immoral activity or any use, which will disturb
the peace, serenity or tranquility in the neighborhood, nor shall the lots/units be subdivided to
be devoted to any of the foregoing purpose.

b.) RESIDENTIAL USE LIMITATION

Lot/s shall be used exclusively for residential purposes. Lots shall not be used as access or
right-of-way to any adjacent land/s outside the subdivision or for any other purpose unless
approved by KLLDI.

In particular, the VENDEE agrees and binds himself not to maintain or cause to be used
within the leased premises, hotels, motels, salons, bars, or any establishment of ill repute.

Lots shall not be used to house chapels, churches, places or worship or congregational
gatherings, nor shall any structure be built on any lot for such purposes.

No residential lot shall be used in pursuit of any commercial purpose, especially a sari-sari
store, grocery store, eatery, funeral parlor, hospital, private clinic, plant nursery, school, bar
or any business that conjures a negative image for the neighborhood, except at designated
commercial areas only and for purposes approved by KLLDI.

c.) MAXIMUM BUILDING HEIGHT AND NUMBER OF FLOODS

Any residential house to be constructed on the property must not have more than two (2)
levels of storeys to be measured from the sidewalk level fronting the lot. The topmost part of
the building shall not exceed NINE and ONE-HALF (9.5) METERS from the sidewalk level
directly fronting the lot.
 d.) FENCES

Solid masonry for the side and the fences of the property must not exceed TWO (2)
METERS from the natural ground level. Solid masonry for the front of the property must
not exceed ONE(1) METER from the natural ground level. Solid masonry for the front
fence must not exceed TWO (2) METERS from the natural ground level. However, no
height restrictions are imposed on walls/fences made of live vegetation.

e.) HOUSE AND BUILDING PLANS APPROVAL

All house and building plans and specifications, whether original, revised, amendatory or
additional including the corresponding location and landscaping plans, must first be expressly
approved in writing by the KISAN LU LANDS & DEVELOPMENT, INC. before
construction.

KISAN LU LANDS & DEVELOPMENT, INC.

Deed of Restrictions

KLLDI has the right to order stoppage/suspension of construction works, and, if construction
has been complete, to order removal of the structures at the expense of the VENDEE should
the conditions in the preceding paragraph be violated, without the necessity of court order,
and without criminal and/or civil liability whatsoever on the part of KLLDI, its officers and
employees.

All buildings shall be strong materials and of type of architecture that is in harmony with the
surrounding landscape and homes in the vicinity.

f.) WELLS

No wells may be dug on any lot without prior written approval of KISAN LU LANDS &
DEVELOPMENT, INC. and the Government offices and entities concerned.

g.) WATER BOOSTER PUMP

A booster pump directly connected to the water main is not allowed. However, a booster
pump may be installed to draw from ground storage tank of adequate capacity supplied by
natural pressure from the water main; provided however that the installation of said pump
must have the prior written approval of KLLDI.

h.) SEWAGE DRAINAGE

Sewage effluents should be coursed through and by means of existing underground drainage
and sewer connections. Boring through concrete curbs shall not be allowed. Throwing of
any waste in the Open Canal inside the subdivision is not allowed.

i.) PERIMETER WALLS

 VENDEES of border lots shall maintain the solid wall of stone or concrete along the
perimeter of the subdivision. No opening or access shall be allowed through said walls
perimeter, nor shall any connection or extension through said walls of the water and other
community facilities and utilities be allowed unless duly approved in writing by KLLDI.

j.) PARKING

No motor vehicle of any kind (3- or 4- wheeler and above) is allowed to use the parks and
parkways for parking, except in extreme emergencies such as earthquakes or fires.

Six wheelers and other types of commercial truck or buses may park for a maximum period
of THREE (3) HOURS only anywhere around the village for purposes of uploading goods
for delivery. Any other purpose shall be subject to the prior written approval of KISAN LU
LANDS & DEVELOPMENT, INC. (KLLDI). It is understood however that under no
circumstances may a 6-8 or 8-wheeler or any type of commercial truck be parked overnight
around the village roads and parkways.

k.) PETS AND ANIMALS

No cattle pig, sheep, goat, horse or animals shall be maintained on the lot. However, keeping
of dogs, cats or other pets in non-commercial quantities may be allowed subject to the rules
and regulations as the homeowners association may adapt.

KISAN LU LANDS & DEVELOPMENT, INC.

Deed of Restrictions

l.) MACHINERY, APPLIANCES OR STRUCTURES FOR COMMERCIAL BUSINESS

No machinery, appliance or structure, the object of which is to carry on or facilitate the

operation of commercial business of any kind, form which may cause obnoxious odors,
tremors or noises, may be placed, maintained or operated on any lot.

m.) TREES

No trees planted by KLLDI along the planting strips of the subdivision and in its open areas
and perimeter lots may be cut, removed or transplanted without the prior written approval
of KLLDI when all streets, lanes and open spaces have been disposed to the homeowners
association.

No part of the property of the subdivision in general shall be used or maintained as dumping
ground of rubbish, trash, garbage, or other materials or aggregates.

n.) CONCRETE MIXING AND STORAGE OF CONSTRUCTION MATERIALS

 Concrete mixing shall not be allowed directly on the subdivisions concrete roads and paved
sidewalks. Likewise, cement or other construction materials shall not be placed on the road
to cause obstruction or clogging of the drainage system.

o.) TRANSFER OF RIGHTS

The VENDEE hereby binds himself not to cede, sell, transfer or in any other manner dispose
off his rights and obligation to the said property without written notice to the VENDOR, in
cases before full payment of the total purchase price is made, or clearances from the
homeowners association are appropriately settled before any transfer is effected.

p.) GOVERNMENT RULES AND REGULATIONS

The VENDEE hereby binds himself to comply with all the laws, ordinances, rules and
regulations regarding sanitation, safety, and other measures, which the Department of Health,
Fire Department or other branch of government have or will promulgate for public safety.

______________________________________, Filipino of legal age, single/married and a resident

of Block __________ Lot _________, of SANTIAGO VILLAS, binds himself/herself to have
faithfully comply with all the policies & conditions stated in this Deed of Restrictions.

________________________________
Homeowner
Can it be done UNILATERALLY?

No. Because it is considered as a contract. As held in the case of South Pachem Development,
Inc. vs. Court of Appeals, the deed restrictions, duly annotated on the titles, was incorporated in the
contract of sale.

xxx The deed restrictions is a valid agreement freely and voluntarily agreed upon between
the petitioner and private respondent. When an agreement between the parties has been forged,
such contract becomes the law between the parties and each one is bound to comply therewith.

Further, it was even declared in the same case that the petitioner makes much of the fact that the
deed restrictions partake of the nature of a contract of adhesion wherein a party to the agreement would be
subjected to an onerous financial imposition for 47 years which in effect would curtail its freedom to enter into
contracts without restraint as set forth in Article 1306 of the Civil Code and Sections 1 and 8 of Article III of
the Constitution.

A contract of adhesion is defined as one where one of the parties imposes a ready-made form of
contract which the other party may accept or reject, but which the latter cannot modify. One party prepares the
stipulation in the contract, while the other party merely affixes his signature or his "adhesion" thereto, giving
no room for negotiation and depriving the latter of the opportunity to bargain on equal footing. These types of
contracts have nonetheless been declared as binding as ordinary contracts, the reason being that the party
who adheres to the contract is free to reject it entirely. Thus, such agreement is not per se inefficacious.
Corollarily, should there be any ambiguity in a contract of adhesion such ambiguity is to be construed against
the party who prepared it. If, however, the stipulations are not obscure, but are clear and leave no doubt on the
intention of the parties, the literal meaning of its stipulations must be held controlling. To reiterate, contracts of
adhesion are not prohibited even as the courts remain careful in scrutinizing the factual circumstances and the
situation of the parties concerned in the case to determine the respective claims of contending parties on their
efficacy and enforceability. When petitioner purchased the subject properties in Makati, the deed restrictions
were made an addendum or supplement to the two deeds of absolute sale. The deed restrictions were pre-
printed and duly annotated on the titles corresponding to the parcels of land purchased and petitioner, through
its duly authorized representative, affixed its signature thereto. The stipulations were plain and unambiguous
which leave no room for interpretation. As such, petitioner was presumed to have full knowledge and to have
acted with due care or, at the very least, to have been aware of the terms and conditions of the contract and that
it had actually assented to the stipulations as there was never any objection interposed prior to the actual
purchase of the subject property.