The law defined a condominium as 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.
Title to the common areas, including the land, or the appurtenant interests in such areas, may be held by a corporation specially formed for the purpose, condominium corporation, in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas.
Notes: "Common areas" means the entire project excepting all units separately granted or held or reserved.
Notes: 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.
2. Who can own condominiums and/or condominium units?
2. Who can own condominiums and/or condominium units?
Condominiums include the land, so the constitution of the Philippines is applied. Means, the maximum foreign ownership is 40% of the capital stocks.
f) A certificate of the registered owner of the property and consent of all registered holders.
In terms of condominium units, it depends on who owns the land.
a) When the condominium corporation leased the land from Filipino.
In this case, the condominium company and units can be wholly-owned by foreigners.
b) When the condominium company owns the land.
In this case, the 40% rule is applied to both condominium company and units. It means only 40% of the total units can be sold out to foreigners.
In this case, the condominium company and units can be wholly-owned by foreigners.
b) When the condominium company owns the land.
In this case, the 40% rule is applied to both condominium company and units. It means only 40% of the total units can be sold out to foreigners.
c) When the separate unit-owners are the co-owners of the land.
Foreigners cannot buy this kinds of condominium units.
Notes: The ownership of the land is legally separated from the unit itself. The land is owned by a condominium corporation and the unit owner is simply a member in this condominium corporation. As long as 60% of the members of this condominium corporation are Filipino, the remaining members can be foreigners.
Notes: The ownership of the land is legally separated from the unit itself. The land is owned by a condominium corporation and the unit owner is simply a member in this condominium corporation. As long as 60% of the members of this condominium corporation are Filipino, the remaining members can be foreigners.
3. Master Deed
This law only applies to the property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds. Master Deed may contains:
a) Description of the land;
b) Description of the building or buildings;
c) Description of the common areas and facilities;
d) A statement of the exact nature of the interest acquired or to be acquired by the purchaser in the separate units and in the common areas of the condominium project;
e) Statement of the purposes for which the building or buildings and each of the units;f) A certificate of the registered owner of the property and consent of all registered holders.
The property owner cannot Enable, Amend or Revoke the master deed alone without consent of all registered holders. The term "registered owner" shall include the registered owners of condominium units in the project. Simple majority rule is applied.In this case, a simple majority could mean either of the two: a majority based on per-unit ownership or a majority based on the floor area of ownership.
For condominiums used for either residential or commercial purposes, the former would apply, while if it is for a mix of both purposes, it is the latter. This requirement also stipulates that the registered owners must be notified in advance. Evidence of a vote of a simple majority must also be submitted to the HLURB.
4. Restrictions when there is no explicit provisions in master deed.
a) Unit includes only the inside and interior surfaces of a unit not the structural elements of the building or common areas.
Notes: The provisions in master deed are honored. There could be even selling restriction, so purchasers should check master deed restrictions carefully.
5. Rights of unit owners
a) A condominium corporation shall not, during its existence, sell, exchange, lease or otherwise dispose of the common areas owned or held by it in the condominium project unless authorized by the affirmative vote of all the stockholders or members.
b) When the building is sold by lawful way, unit owners will be compensated your appropriate share from the proceeds of the sale.
c) Common area is shared by all unit owners not by specific unit owner.
Notes: What will happen when the building is too old? Can it be rebuilt? How much you can get when this time comes? If it's a low-rising projects with big common area, they may redevelop but how bout high-rising single building in the urban area?