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REPUBLIC ACT NO. 4726


AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS CREATION,
AND GOVERN ITS INCIDENTS.

This act shall be known as the The Condominium Act

Q: What is a condominium as defined under this act?


A: A condominium is

An interest in real property consisting of separate interest in a


unit in a residential, industrial or commercial building;
An undivided interest in common, directly or indirectly, in the
land on which it is located and in other common areas of the
building.

Q: What is the rule with respect to transfer and conveyance under Sec. 5 of this
Act?
A: General Rule: Any transfer or conveyance of a unit or an apartment, office or
store or other space therein, shall include the transfer or conveyance of the
undivided interests in the common areas or, in a proper case, the
membership or shareholdings in the condominium corporation.
Exception: Where the common areas are

Owned by the owners of separate units as co-owners thereof


Shall only be conveyed or transferred to Filipino citizens or
corporations having at least 60 percent of the capital stock
belonging to them (except for hereditary succession with respect
to aliens)
Held by a corporation,
The transfer or conveyance is valid only when the concomitant
transfer of the appurtenant membership or stockholding in the
corporation will not cause the alien interest in such corporation
to exceed the limits imposed by existing laws.

Q: What are the rights of a condominium owner under this act?


A: The following are rights of a condominium owner:

An exclusive easement for the use of the air space encompassed by


the boundaries of the unit as it exists at any particular time and as the
unit may lawfully be altered or reconstructed from time to time;
o Note: It shall be automatically terminated in any air space upon
destruction of the unit as to render it untenantable.
Right to an equal share (one for each unit) in common areas;
Exclusive right to paint, repaint, tile, wax, paper or otherwise refinish
and decorate the inner surfaces of the walls, ceilings, floors, windows
and doors bounding his own unit;
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Exclusive right to mortgage, pledge or encumber his condominium and


to have the same appraised independently of the other condominiums
but any obligation incurred by such condominium owner is personal to
him;
Absolute right to sell or dispose of his condominium unless the master
deed contains a requirement that the property be first offered to the
condominium owners within a reasonable period of time before the
same is offered to outside parties.

Q: What is the rule regarding partition where several persons own a


condominium in a condominium project?
A: General Rule: An action may be brought by one or more such persons for
partition thereof by sale of the entire project, as if the owners of all of the
condominiums in such project were co-owners of the entire project in the
same proportion as their interests in the common areas.
Exception: A partition shall be made only upon a showing:

Three years after damage or destruction renders the material


part unfit for its use and such project had not been rebuilt or
repaired substantially;
Damage or destruction has rendered ONE HALF OR MORE of the
units untenantable and such owners having more than 30
percent interest in the common areas are opposed to the repair
and restoration;
The project has been in existence in excess of 50 years,
rendering it obsolete and uneconomical and such owners having
more than 50 percent interest are opposed to the repair,
restoration or remodeling of such project;
The project or material thereof has been condemned or
expropriated and that the project is no longer viable;
The conditions for such partition with restrictions as provided
under RA 4726 have been met.

Q: What are the effects of the registration of a declaration of restrictions?


A: The following are the effects of the registration

It shall constitute a lien upon each condominium in the project;


o Note: Such liens, unless otherwise provided, may be enforced by
any condominium owner in the project or by the management
body of such project.
It shall insure to and bind all condominium owners in the project;
It shall provide for the management of the project by anyone of the
following management bodies: a condominium corporation, an
association of the condominium owners, a board of governors elected
by condominium owners, or a management agent elected by the
owners or by the board named in the declaration;
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It shall also provide for voting majorities quorums, notices, meeting


date, and other rules governing such body or bodies.

Q: What happens whenever the common areas in a condominium project are


held by a condominium corporation?
A: The corporation shall constitute the management body of the project;

Purpose of the Corp:


o It shall be limited to the holding of the common areas, either in
ownership or any other interest in real property recognized by
law, to the management of the project, and to such other
purposes as may be necessary, incidental or convenient to the
accomplishment of said purposes.
AI and By-Laws:
o They shall not contain any provision contrary to or inconsistent
with the provisions of this Act, the enabling or master deed, or
the declaration of restrictions of the project.
Membership:
o It shall not be transferable separately from the condominium
unit of which it is an appurtenance.
Exception: If a member ceases to own a unit in the
project, he shall automatically cease to be a member or
stockholder of the corporation.

Q: What is the rule regarding the term of a condominium corporation?


A: General Rule: It shall be co-terminus with the duration of the condominium
project.
Exception: Subject to the provisions under the Corporation Code.

Q: What is the rule regarding the dissolution of condominium corporation?


A: The dissolution of the condominium corporation in any manner and any of the
causes provided by law shall be governed by the provisions of the Title XIV of
the Corporation Code.

Q: Discuss the rule on Voluntary Dissolution of Condominium Corporation.


A: General Rule:

The Corporation shall not be voluntarily dissolved through an action for


dissolution under Rule 104 in the Rules of Court until the enabling or
the master deed of the project in which the condominium corporation
owns or holds the common areas is revoked. (Section 13)
o Exception: Upon showing that:
Three years after damage or destruction renders the
material part unfit for its use and such project had not
been rebuilt or repaired substantially;
Damage or destruction has rendered ONE HALF OR MORE
of the units untenantable and such owners having more
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than 30 percent interest in the common areas are


opposed to the repair and restoration;
The project has been in existence in excess of 50 years,
rendering it obsolete and uneconomical and such owners
having more than 50 percent interest are opposed to the
repair, restoration or remodeling of such project;
The project or material thereof has been condemned or
expropriated and that the project is no longer viable;
The conditions for such partition with restrictions as
provided under RA 4726 have been met.
The condominium corporation may also be dissolved by the affirmative
vote of all the stockholders or members thereof at a general or special
meeting duly called for such purpose. (Section 14)
o Provided: All the requirements of Section 62 of the Corporation
Law are complied with.

Q: What is the purpose of the Power of Attorney?


A: The corporation shall be deemed to hold a power of attorney from all the
members or stockholders to sell and dispose of their separate interests in the
project and liquidation of the corporations shall be affected by a sale of the
entire project as if the corporation owned the whole thereof, subject to the
rights of the corporation and of individual condominium creditors.

NOTE BY THE AUTHOR:


The provisions are selected which are related only to our subject matter
Property. Thank you.