Republic of the Philippines

HOUSING AND LAND USE REGULATORY BOARD

National Capital Region, Quezon City

RCD LAND, INC.

Represented by:
ALEX M. MERCOLITA
Complainant,
- versus - HLURB Case No. __________
Specific Performance, Damages with Prayer for
Preliminary Prohibitory Injunction
And for Issuance of Temporary
Restraining Order
SANENT Realty & Development Corporation,
Represented by its President,
ANGELICA V. SAN LUIS,
Respondent.
X------------------------X

AFFIDAVIT in SUPPORT
of Application for Cease & Desist Order

I, ALEX M. MERCOLITA, of legal age, with office address at Unit 205 2 nd Floor, EGI
Condominium, P. Medina cor. Roosevelt Streets, Brgy. Pio del Pilar Street, Makati City, after
having been duly sworn to in accordance with law, depose and state, that;

1. I am the duly authorized representative of RCD Land Inc, the complainant in the
above case pending before this Honorable Hearing Officer;
2. The complainant has a pending application for Cease & Desist Order for a 5 hectare
area, subject matter of this case and which is already covered by a Certificate of
Registration and License To Sell by this Office;
3. The facts and circumstances borne from the necessity of urgently applying for a
Cease & Desist Order are the following:

3.1. Sometime March 19, 2008 and September 19, 2008, complainant and the
respondent entered into a Memorandum of Agreement regarding the sale of
several real properties owned by respondent, Sanent Realty in favor of RCD
Land respecting an area of about 40 hectares, more or less;

3.2. At present, almost Nine Million Two Hundred Thousand Pesos (Php
9,200,000.00);

3.3. From the 40 hectares, more or less, 5 hectares was segregated therein, which
was earmarked by complainant as a subdivision housing;

3.4. Pursuant thereto, License to Sell No. 22682 were secured from the HLURB for
a project subdivision called “RCD HOMES, East with a projected housing for
504 unit housing inclusive of Economic and Socialized housing units in an area
of 51,649 sq. m more or less in Brgy. Sampaloc, Tanay, Rizal. This License to
Sell was secured sometime June 22, 2009; (Exhibit “A”)
 Page 02.

3.5. Previously, it acquired a Certificate of Registration No. 20115 for the Project
RCD HOMES EAST sometime 2 December 2008; (Exhibit “B”)

3.6. After the complainant secured the necessary permits from this Office and other
government offices in connection with the subdivision project, it decided to
advertise, market and embark on promotional campaigns to sell the property.
Attached the subdivision plan, the artist concept as approved by the HLURB as
well as brochures and liftlets advertising the project; (Exhibit “C” and series)

3.7. RCD also embarked on open house as well as internet marketing to presell the
lots to the public;

3.8. As a result, several buyers signified their intention to buy either by making
reservation payments or making downpayments on the properties. Some others
decided to wait for future improvements on the subdivision itself like the
constructions of roads, entrance gate and all, before they make further
payments.

3.9. Unfortunately, when RCD Land was about to further make improvements on the
property such as further construction of the entrance gate and the bulldozer of
the land to pave the way for the construction of road, RCD Land was prevented,
threatened and harass from continuing to make constructions by some
occupants/claimants of the property . As a matter of fact, the engineers and
other workers became afraid because they were threatened with violence.

3.10. Because of this incident, RCD wrote a letter dated March 13, 2009 to the
complainant stating that because of the third party claim of a certain Willy
Balatico over the property, and that further due to the threat of physical harm
that might befell to the employees of RCD, the latter could not go near the
property. The same letter gave notice to the complainant that unless and until
the controversy is resolved, RCD will have to stop payment to the respondent in
accordance with the MOA; (Exhibit “D”)

3.11. As a result of the temporary stoppage of works on the property, the HLURB,
through Ms. Editha U. Barrameda, wrote a letter to Mr. Rolando C. Delantar,
the president of RCD Land dated August 27, 2009 regarding the absence of
development and at the same time directing the complainant to undertake
development of the project. (Exhibit “E”)

3.12. In response to the letter of the Regional Officer, RCD Land through its
president, wrote a letter explaining the cause of the delay in the improvements
on the project and requested for extension of time to develop the site; (Exhibit
“F”)

3.13. As regards the complainant and the respondent, efforts to reconcile issues of
continuation of payment were made since the claim of Mr. Balatico on the land
being development was still a subject matter of a petition for cancelation of
CLOA before the Department of Agrarian Reform;
Page 03.

3.14. After several negotiations between the parties and even if the question of
ownership over the property subject of this case is still pending, complainant
gave another Php 500,000.00 to the respondent. This check representing
payment of P500,000.00 was personally received and acknowledged by the
president of Sanent Realty in the person of Ms. Angelica V. San Luis. A copy of
the check voucher acknowledgment receipt is hereto attached as Exhibit “F”;

3.15. Sometime September 21, 2011, RCD Land received a letter from counsel of the
respondent, Atty. Stanley G. Zamora, stating that they have unilaterally
rescinded the contract between RCD and Sanent. Attached is the letter dated
September 21, 2011;

3.16. On October 17, 2011, the counsel for RCD wrote a letter/response to Atty.
Zamora objecting to the rescission and to continue the negotiation between the
parties.

3.17. That to date, despite the long lapse of time, respondent had not conferred with
the complainant nor have even made mention of the return of the money since
they have rescinded the agreement between the parties.

3.18. On the other hand, considering that the property has been sold to the public and
hence the project is now imbued with public interest, it is important that the
project be continued;

3.19. Unfortunately, I heard from Sanent that it has negotiated with another third
party for sale all its properties covered by the Memorandum of Agreement,
including the property subject matter of this case;

3.20. If this continues to be unabated, defendant Sanent, will continue to commit acts
which will seriously prejudice the rights of the parties in this case, as well as the
rights of the public, since the property has been marketed to the general public;

3.21. That to forestall the commission of acts which may likewise endanger the the
public interests as well as the interests of this Office as well as render futile the
future judgments and decision of this Honorable Office, it is most respectfully
prayed that a cease and desist order be issued to respondent Sanent Realty &
Development Corporation;

3.22. And that it be enjoined from selling or negotiating for sale or disposing to third
persons the lots subject matter of these cases and to be restrained from making
improvements on any of the properties, whether on its own or through a third
party;

3.23. RCD is ready and willing to post a bond in the amount to be fixed by this
Honorable Office to secure the payment of any damages that respondent may
sustain by reason of the restraining order and the injunction, if this Office
should finally decide that the complainant is not entitled to the relief.
Page 04.

ALEX C. MERCOLITA
Affiant
SUBSCRIBED and SWORN to before me this ____ day of February, 2012 affiant
exhibiting to me his government issued ID ____________ expiring on ______________.

Doc. No. ______

Page No. ______
Book No. ______
Series of 2011