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"Annex A"

Mountain Haven

DEED OF RESTRICTIONS

The sale of any lot (the term "lot" shall reter to an open lot or house and lot, whichever is applicable) of

the real estate subdivision "Mountain Haven", located at Eden, Davao City, Philippines, shall be subject

to the following restrictions, easements, conditions and definitions, which shall be annotated in the

cOITespondingcertificate/s of tile as property encumbrances.

The Mountain Haven Homeowners Association, Inc. (herein referred to as "MHHAI" or "Association"),

in partnership with Mountain Haven Development, Inc. (hereinafter referred to as "MHDI") shall be

responsible for the enforcement of this Deed of Restrictions, as well as for updating the restrictions and

guidelines.

I.

BASIC PROVISIONS, CONDITIONSAND RESTRICTIONS

1. HOMEOWNERS' ASSOCIATION

1.1 Membership

All homeowners and lot owners are, and shall automatically become members of the

Association. Lessees, upon written endorsement of the member-lessor, shall become

members in lieu of the latter, and which membership shall be co-terminus with their lease.

For the purpose of determining the number of members of MHHAI, only the head of the

household shall be registered as the member. In case of multiple lot owners, the member on

record shall be chosen by the co-owners and shall inform MHHAI in writing of their

decision.

1.2 Membership Fee

Upon the admission of any person as member of the Association, he/she shall

membership fee of FIFTY PESOS PER SQUARE METER (P50.00/sq. m.) in full.

pay a

1.3 Voting Rights

A member in good standing (the term "in good standing" shall be taken to mean a member

who complies faithfully with all the duties and obligations of a member as determined by the

Board of Directors) shall enjoy the right to participate and vote during elections and in all

meetings or deliberations of the members; use and benefit from or take advantage of all

facilities, amenities and services of the association, such as but not limited to cleaning and

clearing of roads, garbage collections, security agency services and assistance, and use of the

Village Center suject to applicable rules and guidelines.

1.4 Assessments

The MHHAI is empowered to assess and collect from each member, his/her heirs,

successors. assigns or lessees, such duties and membership fees in such form and amount

that

itmaydeemnecessaryfor hecontinuedexistenceofMHHAIandthe implementationof

its objectives.

The assessments for common expenses provided for herein shall be used for the general

purpose of promoting the recreation, health, safety, welfare, common benefit and enjoyment

of the owners and occupants of Mountain Haven, including but not limited to management

fees, administration expenses, utility charges, common area property taxes, insurance

premiums, maintenance, landscaping and repair costs, and establishment of reserve funds, all

as may be more specifically authorized from time to time by the board.

1.5 Liens

The owner agrees that any unsatisfied obligation in favour of the MHHAI shall constitute a

junior lien on the lotls to that of the liens of the government for the taxes and the valid

voluntary mortgage/s entered into in good faith.

I

.;

1.6 Implementation/Administration

The Association, through its Board, as well as their corporate successors or assigns. is

empowered to implement the rules and regulations governing the use of the lots and the

common areas, which shall be consistent with the rights and duties established by this Deed

of Restrictions. MHHAI shall have the power to impose sanctions against violators and/or

erring members, his/her heirs, successors, assigns or lessees.

2. GENERALCONDITIONS

2.1 RightofWay and UseofStreet

2.1.1

PERPETUAL RIGHTS

MI-IDI

shall have

perpetual and assignable right-of-way over

all the roads.

pathways,

and parking areas within MOUNTAIN HAVEN.

2.1.2

CONCRETE MIXING

Concrete mixing shall not be allowed on the subdivision's concrete roads or

paved sidewalks. Likewise, materials for concrete (i.e., sand, gravel, and

cement), other construction materials or construction equipment shall not be

placed along the roads as to cause defacing, obstruction or clogging of the

drainage systems, or damage to the sidewalk, curbs, gutters, and roadways.

2.] .3 MOTOR VEHICLES AND CAR REPAIRS

MHDI and/or MHHAI shall prohibit car repairs/maintenance work to be done on

the street of, or anywhere within the subdivision and in homeowners'

carport/garage areas especially if these said repairs would involve the possible

spillage of oil and other chemicals.

2.2 Pets and Animals

Keeping of pets in non-commercia] quantities may be allowed unless further restricted and

subject to regulations as the Association may adopt. Lot owners are expected to secure their

pets within their lot. Any damage to other lot owners' property caused by wandering pets

shall be the sole responsibility of the pet's owner.

2.3 Sanitation, Grass and Garbage

Trash cans of respective units should not be placed outside the property. Each lot owner

shall be responsible in disposing of its trash in the place designated by MHDI and/or

MHHAI.

3. USE AND OCCUPANCY OF LOTS

3.1 Lot Limitation and Use of Lot.

Only one private residential house shall be constructed on each lot or building site although

accessory quarters for household help, garage, garden structures (trellises & gazebos) and farm-

related structures may be built assuming all restrictions on easements and setbacks will not be

violated.

.

The lotls shall not be used as access or right-of-way to any adjacent Iand/soutside the subdivision

or for any other purpose unless with written approval from MHOI and/or MHHAI.

The Owner agrees and binds himself not to construct or maintain or cause to be constructed or

maintained any establishments of ill repute, or uses the same for any immoral or illegal trade, or

any use which will disturb the peace, or be nuisance to the neighborhood.

II. PLANNING AND DESIGN GUIDELINES AND REGULATIONS

1. Buildin1!s& Architecture Desi1!oParameters

1.1 Allowable Building Area

The total building footprint or buildable area devoted to buildings and structures within a lot shall

not exceed TWENTY (20 %) PERCENT of the lot area, subject to the provisions on setbacks and

easements. The allowable building footprint percentage shall be applied to all permanent roofed

structures, including roofed terraces and unroofed usable second floor overhang.

1.2 Setbacks and Easements

The following setbacks and easements fTomthe property line (measured from the surface of the

wall or any projection of the house to the property line) must be followed unless specific

restrictions are explicitly written on the Deed of Restriction for a particular lot:

Five (5) meters for any building structure or other appurtenance or fronting the

street or any common area.

Two (2) meters for any building structure or other appurtenance adjacent to

another lot.

1.3 Building Height Restrictions

No structure shall be more than NINE (9) meters in height measured from any point of a structure

over the delivered grade line directly beneath it, whether upslope or down slope unless a

particular lot has a different height restriction specifically prescribed on its deed, in which case

such height restriction must then be followed.

In the event of disputes over measurement of building height, the owner agrees that MHHAJshall

have the final say on this issue.

1.4 Building Materials and Architecture

All buildings must be of a type of architecture that is in hannony with the surrounding landscape,

amenities and homes in the vicinity as intended by the Developer. In no case and under no

circumstances shall the resulting building cause the depreciation of property values and the

general aesthetic appeal of the area.

The plans and specifications of the building and any other structure or any subsequent additions

thereto constructed within the property must comply with all the existing laws, ordinances and/or

regulations governing the construction of residences and must be subject to written approval by

MHHAI prior to submission to the government agencies for building permit application.

The owner shall hold MHHAI free and hannless from any and all suits arising from damages or

defects discovered on his/her building due to faultyconstruction or defective structural design.

1.5 Driveway

The Association may choose to designate the driveway location of any lot in consideration of

traffic flow, landscape master plan and engineering design plans.

1.6 Fences

Fences of natural material are encouraged. Solid masonry walls fronting the street and common

areas shall have a maximum height of one (1.0) meter, and TWO (2) meters for fences not

fronting the street.

This shall be measured from the natural ground level, and provided with

enough weep holes to allow the unimpeded flow of run-off water.

1.7 Perimeter Walls

No opening or access shall be allowed through said walls or perimeter, nor shall any connection'

or extension of the water and other community facilities or utilities through the said walls shall be

allowed unless duly approved in writing by MHHAI.

2. E01:ineerin2lUtiJitvGuidelinesand Re!!ulations

2.1 Lightning Arrestors & Water Tanks

Each owner is required to provide their own lightning arrestor and water tank. The roof shall be

designed in such

a way that it collects

water for non-drinking use. Water tanks shall be located

and constructed in such a way that it remains inconspicuous from the road and it blends with the

surrounding architectural theme.

There shall be no guarantee on the regularity or potability of the water supply.

2.2 Septic Tank Provision

Every building constructed shall provide a 3-chamber septic tank with concrete flooring per

government specifications to be kept in a sanitary condition at all times. Septic tanks must be

inspected and approved by MHHAI before it is sealed.

2.3 Wells

No wells may be dug on any lot without written approval of MHHAI and the government offices

and entities concerned.

2.4 Antennas

No antenna or transmitter shall be installed in the subdivision. unless otherwise approved in

writing by MHHAI.

3. Earth Fillin!! and Cutting of Lots

3.t Filling

Fillingof lots for landscaping,constructionand other purposesshall be allowedprovided

that:

.

Such till shall will not result in obstructed views and/or potential damage to the area

as originally planned by MHDI and/or constitutes an aggravation or nuisance to

adjoining properties;

The drainage and other facilities are installed to prevent water from flowing or

seeping into the adjacent lots; and,

Proper soil protection measures are provided to protect adjacent lots.

.

.

3.2 Cutting of Lots

Cutting shall be limited to the extent that it shall not in any way affect or weaken the

structural stability of any adjacent lot or structure. Cutting of lots shall be allowed provided

that:

.

This be done only for purposes of establishing a building area and/or providing a

driveway leading to the garage/carport;

.

Cutting of down slope lots shall be conducted for structural purposes only;

.

Proper structurally designed soil protection measures should be provided by the

owner to protect adjacent lots and structures; and,

.

The proper and adequate structural design of soil protection shall be the sole

responsibility of the owner.

In all cases, all forms of filling and cutting are subject to prior approval by MHHAI.

4. Government Rules and Reeulations

The OWNER binds himself to comply with all the laws, ordinances, rules and regulations

regardingsanitation,safety,and othermeasures

that

the Departmentof Health,FireDepartment

01'other branch of government have or will promulgate for public safety.

III. CONSTRUCTION/RENOV

ATION GUIDELINES

Construction of any structure on the lots may commence only: (I) upon full payment of the

Homeowners Association Membership Fee; (2) after the owner has paid fifty percent (50 %) of the

total contract price of the lot; and, (3) when the house plan are approved by MHHAI.

1.

Rules Before Construction

i. B.locati9n. The owner, at his expense, may obtain from MHHAI the official lot plan and

verification or relocation of monuments. The owner 01' his/her representative should be

present when the surveyor relocates the monuments.

ii. Site Inspection and Investigation. The architect and engineer of the owner must conduct site

inspection of the lot prior to preparation of house plans. They should acquaint themselves

with the ground features and improvements in relation to the lot.

111.Submission of plans. The owner shall submit for approval to MHHAI or its corporate

successor SIX (6) complete sets of each of the following plans which must bear the signature

of the owner, the architect on the architectural plan, civil/structural engineer on the civil

works plan, electrical engineer on the electrical plan, and the sanitary engineer or master

plumber on the sanitary plan.

iv. .WJ2[oval Upon verification or correction of the house plans that they conform to the Davao

City building code, the Deedof Restrictions and Construction Guidelines, MHHAI shall issue

a construction permit to the owner. Thereafter, the approved or corrected house plans must

strictly be observed and adhered to by the owner, the architect, the engineer and the

contractor; a copy must be kept at the construction site at all times for purposes of inspection

and compliance. All dues and fees payable to MHHAr must be paid by the lot owner upon

approval ofthe plans.

v. Const[!!9Jion Fee.

A non-refundable Construction Fee of Two Thousand Five Hundred

Pesos ( P 2,500.00) will be charged per owner when he decides to construct his house. Said

fee shall cover the cost of reviewing the architectural plans. The builder is expected to secure

his/her own building permit based on the approved design. MHHAI may adjust such fee as

the need arises.

vi. Guarantee Deposit.

The Owner shall put up a refundable guarantee deposit of Fifty

ThousandPesos

(

PSO,OOO.OO

) thatwillbeusedincasedamageonthe subdivisionamenities

was caused by the construction or any activity related thereto. Said deposit shall be refunded

back to the owner upon full completion of the house provided that all conditions and

requirements are complied with and no damage to the subdivision amenities has been caused

by the construction. However, a deduction of Three Thousand Pesos (P 3,000.00 ) per month

will be taken out from the guarantee deposit if the owner fails to finish house construction

within 24 months after the issuance of approval by MHHAI. In addition, costs incurred by

MHHAI that is directly due to the construction of the house like drainage or road repair, trees

destroyed, etc. shall likewise be deducted from the guarantee deposit. MHHAI may adjust

such deposit as the need arises.

vii. Site Enclosures. All construction sites are required to provide enclosures (e.g., sawali, G. I.

sheets, laminated sack. or tarpaulin) on all sides of the lot. The enclosure shall follow the

height and scope of the construction to ensure the safety and privacy of existing residences,

as well as the visiting lot owners.

viii. Construction Workers' IDs. All workers must secure their IDs prior 0 any construction

activity. Application forms for IDs for construction personnel or workers must be secured

from the MHHAI office. No ID application will be processed until the worker has submitted

his or her Police or barangay clearance and letter from the Lot Owner authorizing issuance of

the ID in connection with the construction.

Penalties and fines may be imposed on workers who use IDs assigned to previous

construction or a construction other than the assigned construction site or residence. Workers

with expired IDs or found without the same shall be charged with illegal entry and shall be

dealt with accordingly.

2. Rules During and After Construction

1. QiM-of Iree is prohibited unless there is prior permission from MHHAI. No existing

trees, whether found within or outside the lot, shall be cut, removed, or damaged, nor shall it

be relocated or transferred without the written approval of MHDI or MHHAI.

ii. MJlintenanceof Construction Site and Vicini1:y. The owner shall maintain the construction

site and vicinity in proper sanitary and clean condition at all times. Garbage and construction

debris must be properly disposed of and dumping of such in neighboring areas is prohibited.

Upon failure of the owner to comply with this provision, MHHAI shall have the premises

cleaned and the expense for sllch clean-up shall be charged against the owner's guarantee

deposit.

iii.QJ!mage_to Common Areas. Any damage to common areas as a result of such construction

or activity related thereto shall be repaired by MHHAI. The expenditure for such repair shall

be charged against the owner's guarantee deposit. Any amount in excess shall be charged to

the owner.

iv. <:oncrete Mixing. Concrete mixing shall not be allowed directly on the subdivision's

concrete roads or paved sidewalks. Likewise. materials shall not be placed along the road to

cause obstruction or clogging of the drainage system, or damage to the sidewalk, curbs.

gutters and roadways.

3. MINORREPAIRSIREPAINTINGILANDSCAPING

3.1 For Owner

Security deposit/Construction Bond*

Construction Fee

3.2 For Contractor

Construction Bond*

*Refundable if without violation to the Deed of Restrictions

P 7,500.00

750.00

P 7,500.00

MHDI and/or MHHAI reserve the right to revise the rates from time to time as needed.

MHDI and/or MHHAI will not release the Security Deposit/Construction Bond until all of the

following requirements are met: (I) the house or any improvements found thereon is fully completed

in accordance with the approved plans and specifications; (2) no damage to the subdivision amenities

has been caused by the construction or any activity related thereto.

A deduction of Three Thousand Pesos (P3,000.00) per month will be taken out from the Security

deposit if the owner fails to fmish house construction within 24 months after the issuance of approval

by MHHAI. In addition, costs incurred by MHHAI that is directly due to the construction of the

house like drainage or road repair, trees destroyed, etc. shall likewise be deducted from the security

deposit/construction bond.

IV. FINES AND PENALTIES

MHDI and/or MHHAI reserve the right to periodically review and amend these fines and penalties as

deemed necessary.

MHHAI likewise reserves the right to impose the maximum fines and penalties and/or stop the entry of

workers and supplies in the event of failure or refusal, or both, by the ContractorlLot Owner to implement

corrective measures required by MHDI or MHHAI even if it is for the first or second offense only.

Similarly, MHDI and/or MHHAI shall have the power to stop construction, demolish without court order

and ban entry of equipment, materials and personnel.

1. Acts to be penalized

.

Unauthorized filling and cutting of lots

.

Concretemixingalongcommonarea/sidewalk

.

Unauthorized use ofID, false identity; no or improper use oflD

.

Overtime work conducted without permit

.

No provision of water container for construction

.

Stock piling on another lot and common areas

.

Exposedclotheslines

.

Allowing wives and children of workers to sleep inside the village

.

Damage to property, landscaping, etc.

.

Illegal gambling

.

Pilferage/robbery(banto entrypluslegalaction)

.

Disregardingcurfewhours

.

Vandalism

.

Failure to restrict the movementof workers to their respectivework areas. No

roaming around the subdivision.

.

Other restrictions

Penaltv

Fine

First Offense

Confiscation of IDlForeman's PIOO.OO

(perperson)

ID-One week

Pl,200.00(per

contractor/lot

owner)

Second Offense

Confiscation of IDIForeman' s

P250.00 (per person)

ID-One month

P2,400.00(per

contractor/lot

owner)

Third Offense

Confiscation of I.D./Ban to

P500.00 (per person)

entry

P3,600.00 (per contractor/lot

owner

a. Drinking of any alcoholic beverages

b. Taking of banned or controlled drugs

c. Indecent exposure or nudity

d. Horse playing

e. Fighting

f. Carrying of deadly weapons (ban to entry plus legal action)

g. Vending (This needs a separate approval from management)

h. Smoking within the area

i. Bathing and/or washing of clothes in public

j.

Loud volume of radio

v. TERM AND ENFORCEMENT OF RESTRICTIONS

1. ENFORCEMENT

Compliance with, and/or entbrcement of the said restrictions, reservations, easements and

conditions may be enforced by court action in the courts of Davao City by MHHAr, its corporate

successors and assigns; or by any property owner in Mountain Haven, Davao City, Philippines, or

by all of them.

Should any of the foregoing provisions be declared unconstitutional, illegal, or violative of

regulatory structures or enforceable by any competent court or government authority, such

declaration shall not in any way affect the constitutionality, legality and enforceability of the rest

of the Deed.

2. LIABILITY

The owner shall indemnify and hold hannless MHHAI against all actions, suits, damages and

claims by whomsoever they may be brought or made, by reason of non-observance or non-

performance of the said rules, regulations, ordinances or laws, or of the covenants of these

sections.

The owner hereby assumes full responsibility for any damage that may be caused to the person or

property of third persons while remaining within the premises, and further binds him to hold

MHHAI free from any such claim for injury or damage unless such injury is due to negligence of

MHHAL

v. ACKNOWLEDGMENT OF RESTRICTIONS, RULES AND REGULATIONS

It is acknowledged that all the foregoing stipulations, rules and regulations consisting of

pages

are known to the Owner as Annex A of the Contract to sell of the Mountain Haven and the Owner

agrees to be bound and shall abide by the same.

Conforme:

Signature over Printed Name

Date Signed