The Supreme Court has ruled that open spaces and road lots in subdivisions do not automatically become government property without a written deed of donation.

In a decision penned by Associate Justice Jhosep Lopez dated 2 April 2025, the Court’s Second Division affirmed that the Quezon City government failed to prove ownership of common areas in Capital Park Homes Subdivision (CPHS).

The case stemmed from a petition filed by Rainier Madrid, a Quezon City taxpayer and resident of a nearby subdivision, who questioned the use of public funds to improve CPHS properties. He argued that developer VV Soliven never executed a deed of donation transferring the areas to the city, making them private rather than public property.

The Court stressed that while the city government cited a 1964 ordinance requiring subdivision developers to allocate six percent of their land for public use before plan approval, compliance with the ordinance does not replace the legal requirement of a written donation.

The Capital Park Homeowners Association admitted there was no deed of donation but pointed to a board resolution acknowledging the supposed turnover. The Regional Trial Court initially dismissed Madrid’s petition for lack of standing, but the Court of Appeals reversed the ruling, finding merit in his challenge.

The high tribunal upheld the appellate court, ruling that local governments must show a valid transfer of property through a deed of donation and proof of acceptance under the Civil Code. Without such documents, ownership remains with the subdivision developer.

The Court said the donation of subdivision land to an LGU must be in writing for ownership to be transferred, reiterating that local ordinances alone cannot establish government ownership.