Recently, there has been an influx of rising condominium towers and developers as the times have been rapidly evolving. People now live a perpetually busy life where a relaxing moment can only be thoroughly appreciated on weekends (that is if you are fortunate enough). As such is the case, more and more people find living in condominium units that most amicable solution to their otherwise eternally full lifestyles.
Like how everything from your phones to tablets, even residential living has gotten a minimalist overhaul where you can enjoy the comforts of a residential home in a compact condominium unit. Essentially, this capsule living fits the lifestyle of many millennials and considering the diverse selection of condominium development they can choose from such as in any condo in Taguig, there is certainly no shortage when it comes to various options.
However, owning a condominium unit is not only about the convenience, the flair, and the luxury. Of course, legal matters need to be considered seeing as the Philippines has a Condominium Act in existence or otherwise known as Republic Act 4726. Seeing as the law itself is peppered with legal jargon, it would be best if we dissect it in layman’s terms.
So, before you consider buying a condo unit or to be legally apprised about how this law works both for you and the developer, read on below.
1.) Who can own a condominium?
Citizens of the Philippines and corporations can own condominiums. However, if you are a foreigner, you may encounter a snag as you can only own no more than forty percent of the total and outstanding capital stock of a corporation.
Additionally, this very same corporation must be Filipino-owned and controlled. Foreign companies and foreigners are after all prohibited to own land by law. Condominium units, however, are not limited to Filipinos, and Filipino corporations are foreigners are, by virtue of the Act, allowed to purchase and acquire condominium units.
2.) What forms part of a condominium unit and what is my stake in it?
The boundaries of your unit form a part of your condo unit. By law, the interior surfaces of the perimeter walls, floors, windows, doors, ceilings make up the boundary of such. This applies to all unless your master deed or declaration of restrictions as prescribed by the condo’s corporation or administration would otherwise stipulate.
In essence, when you buy a condominium unit, you are a co-owner of the entire building which entitles you to privileges which are only limited by restrictions that follow the title.
3.) Am I allowed to sell my unit?
You are allowed to sell your unit freely. However, you should consider that the sale of a condominium unit does not only entail the sale of such unit but your interests to common areas as well. The same applies to your shareholdings in the condominium corporation as well as your membership.
Selling a condo, however, may be a lot trickier as it is restricted by some rules under the Condominium Act. Ownership requirement for one is a possible snag should you wish to sell your condominium. Condo sales will be deemed invalid If such sale would result in foreign interest in the corporation exceeds the limits prescribed by law (forty percent).
4.) Can the condominium corporation sell the condo without my consent?
They can. However, should the master deed contain a requirement that the property should first be offered to other condo owners within a reasonable time before putting up an offer to third parties, then the same cannot be applied.
Another restriction imposed by the law (Corporation Code RA 7899) states that owners shall not sell, exchange, lease or otherwise dispose of the common areas of a condominium. And that’s without the approval of the simple majority of the registered owners which would be subject to the approval of the Housing and Land Use Regulatory Board (HLURB).
5.) It states in the law that owners can sell the condominium after fifty years. Will I have a say on this?
Yes, you would have a say on this as upon the units turn over to you, you will effectively become a member of the corporation that owns the condominium. This means that your dissent or concurrence of the same will matter. Should it be sold, however, you will be appropriately compensated your share from the proceeds of the sale.