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Condominium Development REB

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16 views25 pages

Condominium Development REB

Uploaded by

Prince EG Dltg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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THE CONDOMINIUM ACT

An act to define condoinium, establish the requirements for its creation and govern its incidents

What is a condominium?

CONDOMINIUM:
An interest in a real property consisting of:
a separate interest in a unit in a residential, commercial or industrial building and
an undivided interest in common areas, in the land it is built upon and other common areas in
the building.

The condominium is not a type of structure but rather, a concept of development and of
ownership!!

What is a condominium?

CONDOMINIUM:
An interest in a real property consisting of:
a separate interest in a unit in a residential, commercial or industrial building and
an undivided interest in common areas, in the land it is built upon and other common areas in
the building.

The condominium is not a type of structure but rather, a concept of development and of
ownership!!

DEFINITION of TERMS
UNIT:
A part of the condominium project intended for any type
of independent use or ownership.

PROJECT:
The entire parcel of real property divided or to be divided into condominiums, including all
structures thereon.

COMMON AREA:
The entire project excepting all units separately granted, held or reserved. These shall remain
undivided and there shall be no judicial partition thereof.
INCIDENTS of a CONDOMINIUM GRANT
The boundaries of the unit granted are the interior spaces of the perimeter walls, floors, ceilings,
windows & doors.
The following are not part of the unit:
load bearing walls, columns, floors, roofs $
foundations
lobbies, hallways & stairways
Elevator equipment & shafts
Central heating & air conditioning equipment
Reservoirs, tanks & pumps
Pipes, ducts, flues, chutes, conduits & wires
except outlets located in the unit

The common areas shall be held in common by the unit owners


A non-exclusive easement for ingress, egress & support through the common areas
Each condominium unit owner shall have the exclusive right to paint, repaint, tile, wax or refinish
& decorate the inner surface of the unit

Each unit owner shall have the exclusive right to mortgage, pledge or encumber his condominium
unit & to have the same appraised independently of other units
Each condominium owner also has the absolute right to sell or dispose of his unit unless the
master deed contains a requirement that the property be first offered to other
condominium owners within a reasonable period of time before the same is offered to
outside parties

THE MASTER DEED


This should be registered with the Register of Deeds of the province or the city & shall contain
the following:
Description of the land
Description of the building(s), stating the number of storeys, the number of units & their
accessories
Description of the common areas & facilities
Statement of the exact nature of the acquired units & the common areas of the condominium project.

A certificate of the registered owner of the property as well as other registered holders of any lien
or encumbrance with their consent to the registration of the deed
The following shall be appended to the deed as an integral part thereof:
a survey plan of the land
A diagramatic floor plan of the building(s), each unit, its relative location & approximate
dimensions
A reasonable restriction not contrary to law, morals or public policy regarding the right of any
condominium owner to alienate or dispose of his condominium
THE DEED of RESTRICTIONS
The owner of the condominium project, prior to conveyance of any unit shall register this & this
will constitute a lien upon the unit owners.
This may be enforced by either the condominium owners or the management body
This should be annotated at the back of the title.

Contents of the Deed of Restrictions


As to the management body:
Power to enforce the deed of restrictions
Maintenance of all insurance policies
Provisions for maintenance, utility, gardening & other service benefitting the common areas
For the purchase of materials, supplies and the like for the common areas
For the payment of taxes & special assessments
For the manner of the delegation of its powers
For the reconstruction of any portion damaged or destroyed

For the entry by its officers & agents into the unit when necessary for maintenance & construction
For a Power of Attorney for the management body to sell the entire project for the benefit of all
owners

The manner & procedure for amending the restrictions, provided the vote of the majority is
obtained

For the independent audit of the accounts of the management body


For reasonable assessments to meet authorized expenditures in proportion to each unit owner’s
fractional interest in the common areas

THE CONDOMINIUM CORPORATION


Must be formed and registered with the Securities & Exchange Commission in lieu of a Homeowners’
Association
Will hold the title to the land and all common areas
All holders of separate interests (unit owners) are automatically shareholders
Individual shareholding is equal to:
(Floor area of unit/Total gross saleable area)(100%)

Membership in the condominium corporation shall not be transferable separately from the
condominium unit of which it is an appurtenance
When a shareholder ceases to own the unit, he shall automatically cease to also be a shareholder
of the condominium corporation

LIFE OF THE CONDOMINIUM CORPORATION:


Co-terminus with the duration of the condominium project, the provisions of the corporation law
notwithstanding.

TRANSFER or CONVEYANCE of the TITLE


Any transfer or conveyance of the unit shall include the transfer & conveyance of the undivided
interest in the common areas and in the land
The transfer also includes the undivided interest in the shareholdings in the condominium
corporation
No condominium unit shall conveyed or transferred to persons other than Filipino citizens or
corporations at least 60% of the capital stock of which belongs to Filipino citizens

OTHER PROVISIONS

ASSESSMENT:
Shall be an obligation of the unit owner

PROPERTY TAX:
Each condominium unit will be separately for property tax purposes & such tax shall be a lien
solely on the unit

No transfer or conveyance to foreigners will be valid if this will cause total foreign ownership to
exceed 40%

THE TITLE:
The Condominium Certificate of Title (CCT)

This will be on top of the new TCT covering the land which shall now be in the name of the
condominium corporation
Unit owner will receive a “Condominium Owner’s Copy” (COC)

The project or a material part thereof has been condemned or expropriated, it is no longer viable
or 70% of the unit owners are opposed to the continuation of the condominium regime
thereafter

DISPOSITION OF COMMON AREAS:


The condominium corporation shall not sell, exchange, lease or dispose of the common areas
without the majority vote of the unit owners.

TYPE of TRADITIONAL CONDOMINIUM


OWNERSHIP

As to title OCT or TCT CCT

As to extent of Absolute Absolute ownership limited to


ownership condominium unit; co-
all common areas and
As to foreign Not allowed Up to 40% of the gross
ownership saleable area

Homeowners’ Homeowners’ Condominium


organization association corporation

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