FEBRUARY FINANCE

MEETING
February 23, 2016
6th Floor Case Room, DMCI Homes Corporate Center
MEETING OUTLINE:
I. OPENING REMARKS (RMM) 9:00 – 9:15
II. LEARNING SESSION (RMM) 9:15 – 10:15
III. TREASURY REPORT (JOYCE) 10:15 – 10:45
IV. DPMC FINANCIALS (GRACE) 10:45 – 11:15
V. AREA REPORT (ROSANA) 11:15 – 11:45
VI. LUNCH 11:45 – 1:00
VII. BATTLE OF THE CHAMPIONS 1:00 – 1:30
VIII. AREA REPORT (ARLENE) 1:30 – 1:45
I. MPR 1:45 – 2:05
II. ERG 2:05 – 2:25
III. CEC 2:25 – 2:45
IV. RPR 2:45 – 3:05
V. MP3 3:05 – 3:25
VI. RWP 3:25 – 3:45
VII. CYP 3:45 – 4:05
VIII. RRC 4:05 – 4:25
IX. AREA REPORT (JOY) 4:25 – 4:45
X. AREA REPORT (MARK) 4:45 – 5:15
XI. AREA REPORT (JILLIAN) 5:15 – 5:45
XII. CLOSING REMARKS (Supervisors and InCharges Reminders) 5:45 – 6:00
Learning Session: RA 4726 “CONDOMINIUM ACT”
Republic Act No. 4726 (June 18, 1966): An Act to Define
Condominium, Establish Requirements for its Creation, and Govern Its
Incidents

Section 1: “The Condominium Act”

Section 2: Definition of Condominium

Condominium is an interest in real property consisting of separate interest in a unit in
residential, industrial, or commercial building and un undivided interest in common, directly of
indirectly, in the land on which it is located and in other common areas of the building.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 3: Definition of Terms
1. Condominium – defined in Section 2
2. Unit – part of the condominium intended for independent use
or ownership
3. Project – entire parcel of real property divided or to be divided
in condominiums including all structures
4. Common Areas – entire project except all units separately
granted or held or reserved
5. To divide – to divide ownership by conveying one or more
condominiums in less than a whole
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 4: Master Deed
1. Should be recorded in the Register of Deeds of the province of city of the project
2. Duly annotated in the corresponding certificate of title of the land if the land is patented or registered in
the Land Registration or Cadastral Acts
3. Shall contain the following:
a. description of the land
b description of all the buildings stating the number of stories, basements, units and their
accessories
c. Description of common areas and facilities
d. Statement of the exact nature of the interest acquired or to be acquired by the purchaser in
the separate units ad in the common areas and if the title or the appurtenant interest
in the common areas is or is to be held by a condominium corporation
e. Statement of purpose for which the building/s and each of the units are intended or restricted
as to use
f. Certificate of the registered owner of the property, if he is other than those executing the
master deed as of all registered holders of any lien or encumbrance on the property,
that they consent to the registration
g. A survey plan of the land and a diagrammatic floor plan of the building/s are appended
h. Any reasonable restrictions not contrary to law, morals or public policy regarding the right of
any of the condominium owner to alienate or dispose of his condominium
Learning Session: RA 4726 “CONDOMINIUM ACT”
The Master Deed may be amended or revoked upon registration of an
instrument by the registered owner/s consented to by simple majority
of registered owners (RA7899).
Simple Majority = 50% plus 1
 For Residential or Commercial = per unit basis
 For Mixed Type = per floor area

Section 5: Transfer of Conveyance of a Unit

When ownership of a unit is transferred, so is the undivided
interest in the common areas and the membership on the
condominium corporation.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Ownership cannot be transferred to:
1. Non Filipino Citizen
2. Corporations not more than 40% Filipino Ownership
Exception: Hereditary Succession
Exception to exception: Ownership on the common area will NOT result to
alien interest exceeding to 40%

Section 6: Boundary of the Unit and Rights of the Unit Owners

a. The boundary of the unit are the INTERIOR surfaces of the
perimeter walls, floors, ceilings, windows and doors.
b. Unit owners are permitted to use the air space encompassing
the boundaries of the unit which will be automatically
terminated upon destruction of the unit as to render it
untenantable.
Learning Session: RA 4726 “CONDOMINIUM ACT”
c. Unless otherwise provided, the unit owners have equal shares
in the common areas.
d. The unit owners can have access to the common areas for
ingress and egress
e. The unit owners have exclusive right to refinish and decorate
the inner surfaces of their unit.
f. The unit owners have exclusive right to mortgage, pledge or
encumber their unit or have the unit appraised
independently with expenses on their own personal
account.
g. The unit owners have exclusive right to sell or dispose their
unit unless the Master Deed requires the property to first
offer the unit to the dwellers before offering to the outside
party.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 7: The Common Areas shall remain UNDIVIDED except as provided for in
Section 8.

Section 8: Partition of Common Areas

1. Three years after damage or destruction, no repair has been made;
2. Damage or destruction is more than half of the units and more than
30% are opposed to the repair or restoration
3. The project is over 50 years and already obsolete and uneconomic
and more than 50% opposed to repair or restoration or
remodeling or modernizing the project
4. The project or material part of the project has been condemned or
expropriated and more than 70% opposed to continuation of
the condominium regime.
5. That the conditions for such partition by sale set forth in the declaration
of restrictions, duly registered with the terms of this Act, have been met.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 9: Declaration of Restrictions
Declaration of Restrictions
 Constitute a lien upon each condominium project and shall insure and bind of
unit owners.
 Shall be enforced by any unit owner of by the management body.
 Shall provide for a management body:
1. Condominium corporation
2. Association of the unit owners
3. A board of governors elected by the unit owners
4. A management agent elected by the unit owners

Section 10: “When the common areas in condominium project are

held by a condominium corporation, such corporation shall constitute
the management body.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 11: Term of the condominium Corporation
“The term of the condominium corporation shall be co-
terminus with the duration of the condominium project, the
provisions of the Corporation Law to the contrary notwithstanding.”

Section 12: Involuntary Dissolution

The common areas, by way of liquidation, be transferred PRO-
INDIVISIO and in proportion to their interest subject to the superior
rights of the corporate creditors.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 13: Voluntary Dissolution
1. Three years after damage or destruction, no repair has been made;
2. Damage or destruction is more than half of the units and more
than 30% are opposed to the repair or restoration
3. The project is over 50 years and already obsolete and uneconomic
and more than 50% opposed to repair or restoration or
remodeling or modernizing the project
4. The project or material part of the project has been condemned or
expropriated and more than 70% opposed to continuation of
the condominium regime.
5. That the conditions for such partition by sale set forth in the
declaration of restrictions, duly registered with the terms of
this Act, have been met.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 14: Voluntary Dissolution
A condominium corporation may be dissolved by the Court of
First Instance of the province/city of the principal office of the
condominium corporation upon voluntary application of the
majority of the members in compliance with Section 62 of the
Corporation Law:
1. Should be in writing
2. Notice of the Dissolution published in a newspaper in general circulation
3. Expiration of Right of Objection
4. No appeal to the Supreme Court

Section 15: Special Power of Attorney of the Condominium

Corporation to sell and dispose the separate interest during voluntary
dissolution.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 17: “Members shall NOT be entitled to demand payment of
his shares or interest except during sale.”

Section 18: Transfer of Ownership of Unit Subsequent to Original

Transfer

Section 19: “When the Master Deed provides that the land included
within a condominium project are to be owned by the unit owners,
the old certificate of titles will be cancelled and the a new one will be
issued in the name of the unit owners as PRO-INDIVISIO co-owners
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 20: An assessment upon any condominium shall be and
become a lien upon the condominium when the management body
causes a notice of assessment to be registered with the Register of
Deeds

Section 21: No labor performed or services or materials furnished

with the consent of or at the request of a unit owner or his agent
shall be the basis of a lien unless such owner has EXPRESSLY
consented.
1. During emergency repair
2. For services rendered for the common areas duly authorized by the
management body.
Learning Session: RA 4726 “CONDOMINIUM ACT”
Section 22: Purchase of personal property of the condominium
corporation

Section 23: Reorganization upon Failed Dissolution

Section 24: Any deed, declaration or plan for a condominium project

shall be liberally construed to facilitate the operations of the project.

Section 25: RPT shall be paid by the unit owners.