A Philippine legal-practice article on ownership, dedication, donation, acceptance, registration, and the special complications posed by informal-settler (“squatted”) subdivisions.

1) Why the Issue Arises: “Roads” That Are Not Public Roads

In many older or informally developed subdivisions, “roads” exist on the ground but remain private property on paper. This mismatch is common where:

the developer did not complete subdivision approvals or did not transfer the road lots/open spaces;
the roads were carved out informally without approved subdivision plans;
titles were never issued for road lots; or
the area later became occupied by informal settlers, with no functioning homeowners’ association and no clear property custodian.

Local Government Units (LGUs) often hesitate to maintain, gravel, pave, install drainage, light, or patrol such roads unless the LGU has a clear legal basis for control (ownership or a recognized public road status). Donation to the LGU is one lawful route—but only if the donor has title/authority to donate and the LGU properly accepts and registers the transfer.

2) Key Legal Concepts You Must Separate

A. “Donation of a Road Lot” vs “Declaring a Road Public”

Donation (ownership transfer) A deed of donation transfers ownership (or another real right) from a private owner to the LGU, requiring LGU acceptance and registration.
Dedication / donation by operation of subdivision laws In properly regulated subdivisions, roads and open spaces are intended for public use and often required to be transferred to the LGU (or otherwise treated as for the community). Documentation still matters, but the legal policy is different: the law treats roads/open spaces as for public use once properly created/approved.
Public road by use/acceptance (“implied dedication”) In limited situations, long public use plus government acts (maintenance, improvements) may evidence dedication and acceptance. This is fact-sensitive, contested, and not a substitute for clear title transfer when major public works are planned.

B. “Unpaved” Is Not the Legal Problem—Title and Authority Are

The surface condition (dirt/gravel) affects engineering standards and LGU willingness to accept maintenance responsibility. The legal deal-breakers are usually:

Who owns the land beneath the road?
Is the road area a separate titled lot, or part of a mother title?
Is the property encumbered (mortgage, adverse claim, lis pendens, court case)?
Does the supposed donor have corporate/HOA authority to donate?

C. Squatted Subdivisions Add Unique Risks

In squatted subdivisions, occupants may have built on or along road alignments, blocking road widening, drainage easements, and access. Donation does not automatically remove obstructions. Also, informal settlers generally cannot donate what they do not own.

3) Primary Legal Framework (Philippine Context)

The topic sits at the intersection of:

Civil Code rules on donations, acceptance, form requirements, and capacity;
Property registration laws (registration of deeds, titles, annotation of encumbrances);
Local Government Code (RA 7160) on LGU authority to acquire property, accept donations, and exercise local legislative approval through the sanggunian;
Urban Development and Housing Act (RA 7279) on informal settlers, socialized housing, and government approaches to on-site development/relocation and land acquisition (often relevant to “squatted subdivisions”);
Subdivision and housing regulations (e.g., PD 957 and BP 220; now administered through DHSUD and related issuances) on road lots/open spaces in regulated projects;
Right-of-way and public infrastructure policy (e.g., rules governing acquisition, easements, and government projects—relevant when donation is used to formalize access corridors).

Because the exact best route depends heavily on the subdivision’s legal status (approved vs unapproved; titled road lots vs mother title; with or without developer; with or without HOA), a correct procedure starts with classification and due diligence.

4) Threshold Question: Who Can Donate the Road?

Only a party with a valid property right can donate. Common scenarios:

Scenario 1: The developer still owns the road lots / mother title

Best-case donor (if cooperative and legally existing).
If the developer corporation is dissolved or inactive, donation may require corporate records, authority, and possibly court processes depending on circumstances.

Scenario 2: Road lots were intended as “common areas,” but never transferred

The donor may still be the developer or a holding entity.
Some projects require road/open space conveyance to the LGU; if not done, you often reconstruct the paperwork path and execute a formal conveyance.

Scenario 3: The HOA claims control, but title is unclear

HOA can donate only if it owns the road lots (titled in HOA name) or holds authority under a documented transfer.
If roads remain titled to the developer or are unsegregated from a mother title, the HOA typically cannot donate ownership.

Scenario 4: Individual residents/occupants claim the road

Usually invalid unless they actually hold title.
Long occupation does not automatically create ownership, especially against registered title. Even where acquisitive prescription is argued, it is complex, contested, and often fails against registered land and public policy constraints.

Scenario 5: The “road” is not a titled lot, but merely a corridor within a larger titled parcel

Donation becomes a partial donation requiring:
- subdivision/segregation survey,
- technical descriptions,
- approval (when required), and
- issuance of a new title for the road lot before or as part of transfer.

5) Due Diligence Checklist Before Any Donation Is Drafted

A donation that cannot be registered or later gets challenged becomes a public headache. Proper diligence typically includes:

Title verification

Obtain the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) covering the road area (or mother title).
Confirm the registered owner, technical description, and any annotations.

Encumbrance check

Mortgages, adverse claims, court notices, attachments, easements, rights-of-way reservations, liens.

Cadastral/subdivision status

Is there an approved subdivision plan?
Are road lots identified as separate lots?
Is there a DHSUD/HLURB history (for regulated projects)?

Tax declarations and arrears

While tax declarations are not titles, they reveal practical issues: delinquency, inconsistent boundaries, or conflicting claims.

Ground truth / survey

A licensed geodetic engineer should verify that the “road as used” matches the intended road lot boundaries. Squatted areas often have encroachments.

Legal capacity and authority of donor

If corporate: board resolutions, secretary’s certificate, and proof of authority to dispose of property.
If estate: settlement authority and proper signatories.
If multiple owners: all must consent/sign.

LGU appetite and standards

Some LGUs will not accept roads below minimum width/standards or with heavy encroachments because acceptance creates immediate pressure to maintain and regulate.

6) The Core Procedure: How Donation to the LGU Is Properly Done

A clean donation to an LGU is typically a donation inter vivos of real property.

Step 1 — Identify the exact property to be donated

If already a separate titled road lot: use that title’s technical description.
If part of a mother title: undertake segregation/subdivision so the road becomes a distinct lot with a technical description fit for registration.

Common documents at this stage:

subdivision/segregation plan;
technical description;
geodetic engineer’s certification;
(where applicable) approvals required for lot segregation.

Step 2 — Draft the Deed of Donation

For real property, a donation must be in a public instrument (notarized deed) and must clearly state:

identities and capacities of donor and donee (LGU);
description of the donated property (lot number, title number, technical description);
statement that the donation is gratuitous and for public purpose (e.g., local road/right-of-way);
conditions, if any (but conditions must be carefully vetted—LGUs avoid onerous conditions);
warranties or disclosures (encumbrances, possession, boundary issues);
allocation of costs (documentary stamp tax where applicable, transfer tax rules in local ordinances, registration fees);
turnover provisions (actual possession/administration).

Practical drafting point: If there are known encroachments, the deed should disclose them rather than pretending a clean corridor exists. Hidden defects become political and legal liabilities.

Step 3 — Secure LGU Authority and Acceptance (Sanggunian Action)

LGUs generally require:

an ordinance or resolution authorizing acceptance of the donation; and
identification of the responsible local official (often the local chief executive—Mayor/Governor) to sign acceptance.

Why this matters: Donation of immovable property is not perfected without acceptance by the donee. For LGUs, acceptance is typically evidenced by a sanggunian measure plus the authorized signatory’s acceptance in the deed or a separate acceptance instrument.

Step 4 — Execute the Deed and Acceptance in Proper Form

Donor signs the deed before a notary.
Donee (LGU) signs acceptance through the authorized official, consistent with sanggunian authority.

Acceptance can be:

in the same instrument, or
in a separate public instrument (still notarized), properly linked to the donation.

Step 5 — Tax and Fee Compliance (As Applicable)

Rules vary by circumstance, but typical checkpoints include:

Donor’s tax: donations to the government or political subdivisions for public purposes are commonly treated as exempt under the tax code framework, but documentary compliance is crucial.
Documentary Stamp Tax (DST): may apply to deeds involving real property, subject to exemptions and BIR practice.
Transfer tax: LGU ordinances vary; exemptions may apply for government acquisitions or for public purpose.
Real property tax (RPT): once titled to the LGU and used for public purpose, it may be exempt, but proper classification and documentation are still needed.

Because BIR and local treasurer requirements can be procedural bottlenecks, practitioners usually coordinate early with the Register of Deeds, Assessor, and Treasurer to avoid a deed that cannot be processed.

Step 6 — Register the Donation with the Register of Deeds

Registration is what makes the transfer effective against third persons and clears the way for the LGU to:

obtain a new title in its name (or annotate ownership transfer);
enforce removals of encroachments via lawful processes;
allocate budgets for improvements without audit red flags.

Step 7 — Update the Assessor’s Records and LGU Inventory

After registration:

cancel/replace tax declaration under the donor;
issue a new tax declaration under the LGU;
tag the property as public road/right-of-way as appropriate;
record it in the LGU’s property/infrastructure registry.

7) Engineering and Policy: When LGUs Refuse to Accept Unpaved Roads

Even with clean title, LGUs may decline acceptance if:

road width is below standards or inconsistent;
there is no drainage corridor;
bridges/culverts are unsafe;
the “road lot” is not actually passable due to structures;
acceptance would obligate immediate maintenance and expose the LGU to safety claims.

Common compromise approaches:

Donate first; improve later (LGU owns it, then phases works).
Conditional donation tied to clearing/widening or relocation—though LGUs are careful with conditions that look like private burdens.
Easement/right-of-way grant instead of full donation (less ideal for long-term public investment).
Donation to the barangay or city/municipality depending on road classification and maintenance jurisdiction.

8) Squatted Subdivisions: Practical-Legal Complications and How They Are Handled

A. Encroachments on the Road Lot

If informal settlers occupy parts of the road alignment:

donation can still proceed, but the LGU inherits the political and legal task of clearing.
UDHA policies strongly shape what happens next: socialized housing options, relocation, on-site development, and due process constraints.

Best practice: Before acceptance, many LGUs demand a road clearing and relocation plan (even if preliminary), to avoid accepting a “paper road” impossible to open.

B. Donation Does Not Automatically Legalize All Existing Structures

Donation merely transfers property rights. If the corridor must be opened:

the LGU must follow lawful procedures, including notices and coordination with housing and social welfare offices where informal settlers are involved.

C. When the Donor Is Missing, Uncooperative, or Unknown

If the titled owner cannot be found or refuses:

donation is impossible (no consent), and alternatives are considered:
1. Expropriation (eminent domain) for public use, with just compensation;
2. Negotiated purchase;
3. Judicial settlement/administration if the owner is deceased and estate issues block conveyance;
4. Regulatory enforcement in the subdivision context where applicable (though effectiveness varies by vintage and compliance history of the project).

D. Roads on Portions of Land That Are Legally Restricted

If the “road” cuts through:

river easements, legal easements, or protected zones;
land subject to reversion or public dominion issues;
land with unresolved boundary disputes;

then donation may be delayed or structured as an easement/ROW, or the corridor realigned.

9) Special Case: Subdivision Roads and Open Spaces in Regulated Projects

Where the subdivision was developed under housing/subdivision regulations (commonly associated with PD 957/BP 220 compliance regimes), roads/open spaces are typically required as part of project approval. In practice:

the developer’s obligation may include turning over roads/open spaces for community/public use;
LGUs often require a formal deed of donation/transfer and acceptance to “complete” the turnover;
if the project is old and records are incomplete, reconstruction of approvals and technical descriptions becomes the main work.

Even in these cases, registration and clean descriptions remain essential—especially when the subdivision later becomes “squatted,” because disputes intensify and infrastructure projects become audit-sensitive.

10) Common Pitfalls That Make Donations Fail

No title or wrong title (donating the wrong lot; road is still part of mother title with no segregation).
Donor lacks authority (HOA signs without owning; corporate signatory lacks board authority).
Encumbrances not cleared (mortgagee consent absent).
Unacceptable conditions (private restrictions inconsistent with public road use).
Mismatch between road as-used vs road as-described (technical description does not match the actual corridor).
LGU acceptance missing or defective (no sanggunian authority; acceptance not in a public instrument).
Registration not completed (deed signed but not registered; no title transfer).
Tax/BIR roadblocks (lack of required clearances or exemption documentation).
Ignoring UDHA realities (accepting a road lot fully occupied by structures with no viable clearing plan).

11) Practical “Best Practice” Workflow for Squatted Subdivisions

A commonly successful approach (administratively and politically) is:

Technical-road mapping + encroachment inventory (what is the intended ROW, what is occupied).
Title tracing (identify the true owner and the exact titled coverage).
Choose the legal path: donation if cooperative owner exists; otherwise expropriation/purchase/settlement route.
Pre-acceptance LGU review: engineering + legal + housing offices jointly evaluate feasibility.
Prepare donation package:
- deed of donation (with full technical description),
- donor authority docs,
- sanggunian resolution/ordinance for acceptance,
- clearances (as required locally),
- registration plan and payment/exemption documentation.
Register transfer and update assessor records.
Implement phased road opening/improvement with UDHA-compliant social safeguards where informal settlers are affected.

12) What LGUs Typically Require as a “Donation Docket”

While requirements vary by LGU and Register of Deeds practice, a full docket commonly includes:

certified true copy of title(s);
latest tax declaration(s) and tax clearance;
vicinity map, lot plan, technical description;
geodetic engineer certifications;
deed of donation (notarized);
acceptance instrument / acceptance clause signed by authorized LGU official;
sanggunian resolution/ordinance authorizing acceptance and signatory;
donor’s proof of authority (board resolutions, secretary’s certificate, SPA, etc.);
clearances required for registration/tax processing (depending on local and BIR practice).

13) Conclusion: The “Gold Standard” Outcome

For an LGU to confidently treat an unpaved subdivision road as a public asset—budget improvements, enforce clearing, install drainage, and maintain it—the safest path is:

identifiable donor with clear title and authority,
properly drafted and accepted deed of donation,
registered transfer, and
post-transfer integration into LGU property and infrastructure records,

paired with a realistic plan for encroachments and UDHA-sensitive implementation in squatted settings.

If the titled owner cannot donate, the legally sound alternatives are purchase or expropriation, not informal “recognition” of a road that remains privately owned.