Republic Act No.

4726
the Condominium Act

What is a condominium?
A condominium, according to the law, is an “interest in a real property consisting
of a separate interest in a unit in a residential, industrial, or commercial building
and an undivided interest in common, directly or indirectly, in the land in which it
is located and in other common areas of the building.”
In other words, a condominium is a building where sections of which can be
owned individually by a person or, in some cases, a corporation. This can be for
either a residential, industrial, or commercial purpose.

What is a condominium unit?

A unit means a part of the condominium project intended for any type of
independent use or ownership, including one or more rooms or spaces located in
one or more floors (or part or parts of floors) in a building or buildings and such
accessories as may be appended thereto.

What forms part of a condominium unit?

Everything within the boundaries of your unit forms part of the same. According
to the law, the interior surfaces of the perimeter walls, floors, ceilings, windows,
and doors form the boundary of your unit. That is, of course, unless the master
deed or the declaration of restrictions prescribed by the condominium
corporation or the administration stipulate otherwise.
Hallways, like other common areas, are not parts of condo units and, hence, are
not owned exclusively by a single owner. These areas are owned collectively by
the condo corporation.
Who owns the common areas in a condominium?
Generally, titles to the common areas are held by a corporation formed for the
purpose. However, the condominium law also states that the common areas are
held in common by the unit holders, in equal share for each unit.

Who can own condominiums?

Filipino citizens and corporations can own condominiums. Foreigners, however,
are restricted to owning no more than 40 percent of the total and outstanding
capital stock of a corporation, which must be Filipino-owned and controlled. In
addition to that restriction, foreigners and foreign corporations are, by law,
prohibited to own land.
However, foreigners are allowed to purchase and acquire condominium units, , by
virtue of the Condominium Act.

What are my rights as a condominium unit owner?

1. Absolute ownership of your unit
2. Co-ownership of land and common areas
3. Exclusive easement of the space of your unit
4. Non-exclusive easement to common areas for ingress or egress
5. Right to sell, lease, or mortgage your unit
6. Right to repair, paint, decorate the interior surface of your unit
7. Right to participate and vote in condominium corporation meetings

What are my obligations as a condominium unit owner?

1. Pay the realty tax on your condominium unit.
2. Share the realty tax on the land and common areas.
3. Pay the insurance on your unit.
Share the insurance on the common areas.
4. Comply with use restrictions.
5. Pay dues and assessments.
6. Give other unit owners the priority right to buy your unit (right of first refusal) if
so required by the master deed.

Can the condominium corporation sell the condominium without my consent?

Generally, yes. However, if the master deed contains a requirement that the
property should first be offered to the other condominium owners within a
reasonable time before offering it to third parties, then it may not.
Another restriction is one that has been amended to the Corporation Code by
Republic Act No. 7899, which states that, as an owner, you shall not sell,
exchange, lease, or otherwise dispose of the common areas of a condominium
without the approval of the simple majority of the registered owners, subject as
well, to the approval of the Housing and Land Use Regulatory Board (HLURB).

What will happen to a condominium investment after 50 years?

When a condominium project is fully turned over to the unit owners, it becomes
just like a corporation, and you become one of the owners of that corporation.
This means that as a condominium unit owner, you will have a “say” in the
decision making as to what to do with the whole building. If it has been decided
that the property is going to be sold, you will get your appropriate share of the
proceeds of the sale.