A Philippine legal article on when dues may be charged per lot, per owner, or per household; how governing documents and statutes control; and how disputes are resolved.

1) The practical issue: one owner, two side-by-side lots—one bill or two?

In many subdivisions, an owner buys two adjacent lots (often to build a bigger home, keep one vacant as garden/parking, or hold for investment). The conflict usually arises when the HOA charges:

Separate monthly/annual dues per lot, even if the lots function as one “household”; or
Different dues depending on lot status (vacant vs improved), lot size, or frontage; or
Special assessments (road repairs, security upgrades) multiplied by the number of lots.

In Philippine practice, the legally correct answer is rarely “always one” or “always two.” It is almost always: what the governing documents authorize, as tempered by statutory rules on HOA governance, due process, and reasonableness.

2) Governing law and the “document hierarchy” that decides dues

A) Key statutes and regulators

RA 9904 (Magna Carta for Homeowners and Homeowners’ Associations)
- Establishes the policy framework for HOAs, member rights and obligations, governance standards, and dispute mechanisms.
- Places HOAs within a regulatory environment historically handled by HLURB, now under DHSUD functions and issuances.
Revised Corporation Code (for HOA corporate existence)
- Most HOAs operate as non-stock, non-profit corporations with corporate governance rules, alongside the HOA-specific regime under RA 9904.
PD 957 (Subdivision and Condominium Buyers’ Protective Decree) (contextual)
- Often relevant where the dispute touches on developer obligations, subdivision facilities, turnover, and the transition to homeowner control—issues that affect dues and assessments.

(Condominiums follow a different structure under condominium law and condominium corporation documents; this article focuses on subdivision-type HOAs.)

B) The controlling HOA documents

When deciding whether two adjacent lots generate one or two dues obligations, the usual controlling sources are:

Deed of Restrictions / Declaration of Restrictions (often annotated on individual titles)
- Commonly defines “lot,” membership appurtenant to ownership, obligations to pay dues/assessments, and enforcement mechanisms.
- If annotated on the title, it generally binds subsequent owners as a real obligation/covenant linked to the property.
HOA Articles of Incorporation and By-Laws
- Typically define membership, voting rights, assessments (regular and special), and how dues are approved and collected.
Rules and Regulations / House Rules
- Usually cannot contradict higher governing documents; they implement, not create, fundamental dues obligations.

Practical hierarchy: Title annotation / deed restrictions and statutory rules usually sit at the top for dues authority, with by-laws and budgets implementing the details.

3) What HOA dues legally are (and what they are not)

A) Regular dues vs special assessments

Regular dues: periodic charges for recurring operations (security, gate staff, admin costs, streetlights, common landscaping, garbage coordination, etc.).
Special assessments: one-time or time-bound charges for capital projects or extraordinary expenses (e.g., guardhouse renovation, perimeter wall repair, road overlay, major drainage work).

Adjacent-lot owners often get charged “twice” not just on regular dues, but also on special assessments, because many HOAs allocate special assessments by “lot” or “unit” count.

B) Dues are not “rent” and not automatically tied to occupancy

HOA dues are generally framed as obligations attached to ownership and membership, not merely to whether someone lives in the lot. Many subdivisions charge even if the lot is vacant because common services still protect and maintain the subdivision.

4) The central legal question: what is the HOA’s “assessment unit”?

HOAs use different assessment bases. The legality depends on whether the basis is authorized and properly adopted under the governing documents and lawful HOA governance.

Model 1: Per-lot (per titled lot) assessment

Most common in subdivisions. Under this model:

If you own two adjacent lots, you pay two sets of dues, because each lot is treated as a separate unit benefiting from the subdivision’s services and infrastructure.

Legal rationale commonly invoked:

The subdivision plan and restrictions treat each lot as a separate parcel/unit.
Each lot has a separate title and is separately marketable; the covenant “runs with” each lot.

Model 2: Per-household / per-occupied dwelling assessment

Less common but possible if documents allow it. Under this model:

Two adjacent lots used for one house might be treated as one household, thus one regular-dues obligation (though some HOAs still charge special assessments differently).

Risk area: If deed restrictions are written per lot, a by-law or board resolution switching to “per household” may be challenged as inconsistent with the restriction regime.

Model 3: Per-square-meter, per-frontage, or tiered schedule

Some HOAs adopt dues based on:

lot area bands (e.g., 200–300 sqm vs 301–400 sqm),
frontage length (if common costs correlate with road exposure), or
a base rate + incremental rate.

This can be defensible if it is authorized, non-discriminatory, and properly approved, but it must be carefully supported because it changes how burdens are distributed.

Model 4: Hybrid approach

Common in practice:

Regular dues per lot, but discounted rate for the second contiguous lot; or
Regular dues per household, but special assessments per lot; or
Vacant-lot rate lower than improved-lot rate (or vice versa).

Hybrids are legally sensitive: they must rest on a clear authority in restrictions/by-laws and must follow valid approval procedures.

5) Adjacent-lot scenarios and how dues usually apply

Scenario A: Two adjacent lots, two separate titles, one is vacant

Typical HOA position: dues are charged per lot, even if one is vacant. Owner’s common challenge: “I don’t consume services on the vacant lot.” HOA’s common answer: security, perimeter control, roads, drainage, and community maintenance protect the entire subdivision and preserve property values of both lots.

Legal outcome drivers: whether the documents define assessment as per lot regardless of improvement/occupancy.

Scenario B: One house built straddling two adjacent lots (still separate titles)

This is the most common “why am I paying twice?” case.

If the governing documents define dues per lot, many HOAs remain entitled to charge two regular dues.
Some HOAs voluntarily offer “merged-lot rate” discounts, but discounts are typically policy, not automatic legal entitlement.

Key point: The fact that the two lots operate as one home does not automatically erase a per-lot covenant.

Scenario C: Two adjacent lots are legally consolidated into one title (title consolidation)

If the owner completes legal consolidation (and the registry issues a consolidated title), the owner may argue that the HOA should treat it as one lot for dues.

Whether that succeeds depends on the wording of restrictions and HOA rules:

If the deed restrictions treat “lot” by reference to the subdivision plan lot number(s) regardless of later consolidation, the HOA may still argue two assessment units remain.
If the documents tie obligations to the title/parceled lot, consolidation may support recalculation to one.

In practice, many HOAs treat a consolidated title as one “assessment unit,” but this is not universal.

Scenario D: The two adjacent lots are in different phases or under different associations

Sometimes “adjacent” lots are physically next to each other but legally under different HOAs/registered projects. Dues may be collectible separately by each association depending on boundaries and governance documents.

Scenario E: Owner subdivides, transfers, or sells one adjacent lot later

If dues are per lot, obligations generally follow each title. The buyer of one lot becomes responsible for that lot’s dues and delinquency rules (subject to how arrears are handled in the transaction and HOA clearance practices).

6) Approval and governance: when a dues scheme becomes challengeable

Even if a per-lot dues framework is allowed, disputes often arise because of how dues were increased or imposed.

A dues increase or special assessment is more vulnerable when:

The board imposed it without the member approval required by the by-laws/restrictions.
Notice and quorum requirements were not met.
The HOA cannot show a legitimate budget basis.
The classification is discriminatory or arbitrary (e.g., singling out a subset of owners without a rational basis).
The HOA is not properly registered/recognized under the regulatory framework, or its officers are not validly elected.

Under the HOA regime, members typically have rights to:

transparency in budgeting and collections,
proper elections and governance, and
access to records (subject to reasonable rules).

7) Are dues a “real obligation” that follows the lot?

In many subdivisions, yes in practical effect—especially when:

the deed restrictions are annotated on the title, and
they expressly require the owner to pay dues/assessments as a condition of membership and enjoyment of common benefits.

This matters because adjacent-lot owners sometimes say, “I never signed anything with the HOA for the second lot.” If the covenant is on the title and the buyer accepted ownership subject to restrictions, HOAs typically argue the obligation attaches to ownership.

8) Delinquency, penalties, and enforcement—what HOAs can and cannot do

A) Common HOA enforcement measures

Depending on documents and lawful practice, HOAs may:

impose interest/penalties for late payment (subject to reasonableness),
suspend certain privileges (clubhouse access, voting rights),
require clearance for certain community-administered permissions (where legally relevant),
file collection actions for unpaid dues and assessments.

B) Limits and risk areas

HOAs should be cautious with:

“Public shaming” tactics and harassment (can create civil, criminal, and privacy exposure).
Disconnection of utilities not under HOA control.
Overbroad denial of access that creates safety or unlawful restraint issues.
Imposing penalties not authorized by by-laws/restrictions.

C) Liens and annotations

Some restrictions purport to create liens for unpaid dues. Whether and how a lien can be annotated/enforced depends on:

the exact language of restrictions,
land registration rules, and
proper judicial/administrative process.

In practice, HOAs often rely on collection suits and transactional leverage (clearances) rather than immediate title encumbrance mechanisms.

9) Dispute resolution: how owners challenge “double dues” for adjacent lots

Step 1: Identify the controlling rule

The decisive question is usually: Do the deed restrictions/by-laws clearly authorize per-lot assessments? Key documents to review:

title annotations (restrictions),
HOA by-laws and assessment provisions,
approved budgets and board/member resolutions adopting the rates.

Step 2: Challenge the validity or application

Common legal arguments include:

Ultra vires / lack of authority: the HOA has no authority to assess per lot (or to change the basis) under the governing documents.
Procedural defects: no proper notice, quorum, voting, or required approvals.
Unreasonableness/unconscionability: penalties and compounding charges are excessive relative to the bylaws and fairness standards.
Unequal treatment: adjacent-lot owners are treated differently from similarly situated owners without rational basis.
Estoppel / long-standing practice: HOA historically charged one rate for merged-use properties and suddenly changed without due process (fact-sensitive).

Step 3: Forum

Disputes involving HOA governance, assessments, elections, and member rights are commonly brought through the housing/HOA regulatory adjudication framework (historically HLURB, now within DHSUD-aligned structures), while some disputes can overlap with:

regular courts for collection and civil claims, and/or
corporate governance issues depending on how the HOA is organized and what the dispute centers on.

Because forums can be technical, the nature of the claim (collection vs governance vs validity of assessment) often determines where it proceeds.

10) Practical takeaways for adjacent-lot owners and HOAs

For owners of adjacent lots

Separate title often means separate dues if the governing documents assess per lot.
If you want “one dues unit,” the strongest basis is usually documented authority (by-laws/restrictions allowing merged-lot treatment) and, in some cases, legal consolidation of titles—though consolidation is not a guaranteed dues reducer if restrictions define “lot” by subdivision plan.
The most successful challenges usually target lack of authority or defective approval process, not the general idea that “it feels unfair.”

For HOAs

A per-lot scheme is easiest to defend when clearly grounded in title-annotated restrictions and properly approved budgets.
If offering “adjacent-lot discounts,” formalize it through a lawful policy consistent with restrictions to avoid discrimination claims.
Keep strong documentation: budgets, notices, minutes, resolutions, and the adopted schedule of dues and assessments.

11) Summary: the controlling rule in one sentence

For adjacent lots in a Philippine subdivision, whether HOA dues are charged once or twice is primarily determined by the deed restrictions and HOA by-laws defining the assessment unit (often per lot), as long as the dues were lawfully approved and fairly applied under the HOA regulatory framework and general principles of contract, property, and corporate governance.