Questions and Answers Regarding Real Estate Law in the Philippines

DO YOU KNOW WHAT THE CONDOMINIUM ACT OF THE PHILIPPINES IS AND HOW IT AFFECTS YOUR REAL ESTATE TRANSACTIONS?

The Condominium Act is the law that defines and regulates the creation, ownership, and management of condominiums in the Philippines.

A condominium is a form of real property that consists of:

• A 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 the building is located and in other common areas of the building

The Condominium Act allows Filipino citizens and corporations to own condominiums. Foreigners, however, are limited to owning no more than 40 percent of the total and outstanding capital stock of a corporation that owns a condominium, which must be Filipino-owned and controlled.

The Condominium Act also provides for the following:

• The requirements for the registration and issuance of a certificate of title for a condominium project
• The rights and obligations of the condominium owner, such as the right to sell, lease, or mortgage his or her unit, and the obligation to pay dues and assessments for the maintenance and operation of the common areas
• The creation and functions of the condominium corporation, which is composed of all the unit owners and is responsible for managing the condominium project
• The rules and regulations for the administration and enforcement of the Condominium Act by the Housing and Land Use Regulatory Board

The Condominium Act has been amended by Republic Act No. 7899, which modifies the definition of a condominium unit to include those located in industrial estates.

If you want to learn more about the Condominium Act and its amendments, you can check out these sources:

¹ Republic Act No. 4726 - The Lawphil Project

² 15 Things You Need to Know about the Condominium Act

³ CONDOMINIUM ACT (RA 4726) | Senate of the Philippines Legislative Library