CONDOMINIUM ACT of the PHILIPPINES from Section 8
SECTION 8. Where several persons own condominium in a condominium project, an action may be brought by one or more such person for partition thereof, by sale of the entire project, as if the owners of all the condominium in such project were co-owners of the entire project in the same proportion as their interests in the common areas; Provided, however, that a partition shall be made only upon a showing:
a) That three years after damage or destruction to the project which renders a material part thereof unfit for its use prior thereto, the project had not been rebuilt or repaired substantially to its state prior to its damage or destruction; or
b) That damage or destruction to the project has rendered one half or more of the units therein untenantable and that condominium owners holding in aggregate more than 30 percent interest in the common areas are opposed to the repair or restoration of the projects; or
c) That project has been in existence in excess of 50 years, that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project; or
d) That the project or a material part thereof has been condemned or expropriated and that the project is no longer viable, or that the condominium owners holding in aggregate more than 70 percent interest in the common areas are opposed to the continuation of the condominium regime after expropriation or condemnation of a material proportion thereof; or
e) That the condition for such partition by sale set forth in the declaration of restrictions duly registered in accordance with the terms of this Act, have been met.
SECTION 9. The owner of a project shall, prior to the conveyance of any condominium therein, register a declaration or restrictions, relating to such project, which restrictions shall ensure to a bind all condominium owners in the project , such liens, unless otherwise, provided, may be enforced by any condominium owner in the project or by the management body of such project. The Register of Deeds shall enter and annotate the declaration of restrictions, upon the Certificate of Title covering the land included within the proper, if the land is patented or registered under the Land Registration or Cadastral Acts.
Such declaration of restrictions, among the other things, may also provide:
a) As to management body
- For the power thereof, including power to enforce the provisions of the declarations of restrictions;
- For the maintenance of insurance policies insuring condominium owners against loss by the, casualty, liability, workmen’s compensation and other insurable risks and for bonding of the members of any management body;
- Provisions for maintenance, utility, gardening and other services benefiting the common areas for the operations of the building, and legal, accounting and other professional and technical services;
- For purchase of materials, supplies and the like needed by the common areas;
- For payment of taxes and special assessment which would be a lien upon the entire project or common areas, for discharge of my encumbrance levied against the entire project of the common areas;
- The manner for delegation of its powers;
- For reconstruction of any portion or portions of any damage to or destruction of the project;
- For entry by its officers and agents into any unit when necessary in connection with the maintenance or construction for which such body is responsible;
- For a power of attorney to the management body to sell the entire project for the benefit of all of the owners thereof when partition of the project may be authorized under Section 8 of this Act, which said power shall be binding upon all of the condominium owners regardless or whether they assume the obligations of the restrictions or not
b) The manner and procedure for amending such restrictions, provided, that the vote of not less than a majority in interest of the owners is obtained;
c) For independent audit of the accounts of the management body;
d) For reasonable assessments to meet authorized expenditures, each condominium unit to be assessed separately for its share of such expenses in proportion (unless otherwise provided) to its owner’s fractional interest in any common areas;
e) For the subordination of the liens securing such assessments to other lien either generally or specifically described;
f) For conditions, other than those provided for in Section 8 and 13 of this Act, upon which partition of the project and dissolution of the condominium corporation may be made. Such right to partition or dissolution may be conditioned upon failure of the condominium owners to rebuild within a certain period or upon specified percentage of damage to the building, or upon a decision of an arbitration, or upon any other reasonable condition.
SECTION 10. Whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas; either the ownership of any other interest in real property recognized by the law, to the management of the project, and to such other purposes as maybe necessary, incidental or convenient to the accomplishment of said purposes. The articles of incorporation or by laws of the corporation shall not contain any provision contrary to or inconsistent with the provision of this Act, the enabling or master deed, or the declaration of restrictions of the project, membership in a condominium corporation regarding of whether it is stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or a stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common area, he shall automatically cease to be a member or stockholder of the condominium corporation.
SECTION 11. The registration and regulation of a condominium corporation shall be vested with the Housing And Land Use Regulatory Board (HLURB) and the term of the said corporation shall be coterminous with the duration of the subdivision projects, the provision of the corporation law to the contrary notwithstanding.
SECTION 12. The dissolution of the condominium corporation in any manner and any of the causes provided by law shall be governed by the provisions of the Title XIV of the Corporation Code.
SECTION 13. Until the enabling or the master deed of the project in which the condominium corporation owns or holds the common areas is revoked the corporation shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of Court except upon a showing:
a) The three years after damage or destruction to the project in which damage or destruction renders a materials part thereof unfit for its use prior thereto, the project has not been rebuilt or repaired substantially to its state prior to its damage or destruction; or
b) The damage or destruction to the project has rendered one half or more of the units therein untenantable and that more than 30 percent of the member of the corporation entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the project; or
c) That the project has been in existence excess of 50 years, that it is obsolete and uneconomical and that more than 50 percent of the members of the corporation if non-stock or stockholders representing more than 50 percent of the capital stock entitled to vote, if a stock corporation, are opposed to the repair or restoration or remodeling or modernizing of the project; or
d) That project or material part thereof has been condemned or expropriated and that the project is no longer viable or that the members holding in aggregate more than 70 percent interest in the corporation if non-stock, or the stockholders representing more than 70 percent of the capital stock entitled to vote, if a stock corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or
e) That the conditions for such a dissolution set forth in the declaration of restrictions of the project in which the corporation, are opposed to the continuation of the condominium regime after expropriation or condemnation of a material portion thereof; or
SECTION 14. The condominium corporation may also be dissolved by the affirmative vote of all the stockholders or members thereof at a general or special meeting duly called for such purpose: Provided, that all the requirements of Section 62 of the Corporation Law are complied with.
SECTION 15. Unless otherwise provided for in the declaration of restrictions, upon voluntary dissolution of a condominium corporation in accordance with the provisions of Section 13 and 14 of this Act, the corporation shall be deemed to hold a power of attorney from all the members or stockholders to sell and dispose of their separate interests in the project and liquidation of the corporations shall be affected by a sale of the entire project as if the corporation owned the whole thereof, subject to the rights of the corporation and of individual condominium creditors.
SECTION 16. 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 a simple majority of the registered owners: provided, that prior notification to all registered owners are done and provided further, that the condominium corporation may expand or integrate the project with another upon the affirmative vote of a simple majority of the registered owners, subject only to the final approval of the HLURB.
SECTION 17. Any provisions of the Corporations Law to the contrary not withstanding, the by-laws of a condominium corporation shall provide. That a stockholder or member shall not be entitled to demand payment of his shares or interest in those cases where such right is granted under the Corporation Law unless the consents to sell his separate interest in the project to the corporation or to any purchaser of the corporation’s choice who shall also buy from the corporation the dissenting member or stockholder’s interest. In case of disagreement as to price, the procedure set forth in the appropriate provisions of the Corporation Law for valuation of shares shall be allowed. The corporation shall have two years within which to pay for the shares or furnish a purchaser of its choice from the time of award. All expenses incurred in the liquidation of interest of the dissenting member or stockholder shall be borne by him.
SECTION 18. Upon registration of an instrument conveying a condominium, the Register of Deed shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of title covering the land included within the project and the transferee shall be entitled to the issuance of a “condominium owners” copy of the pertinent portion of such certificate of title. Said “Condominium Owner’s” copy need not reproduce the ownership status of other condominium in the project. A copy of the description of land, a brief description of condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the “condominium owners” copy of the certificate of title. No conveyance of condominium or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project.
In case of condominium project registered under the provisions of the Spanish Mortgage Law or Act 3344 as amended, the registration of the deed of conveyance of a condominium shall be sufficient if the Register of Deed shall keep the original or signed copy thereof, together with the certificate of the management body of the project, and return a copy of the deed of conveyance to the condominium owner duly acknowledged and stamped by the Register of Deeds in the same manner as in the case of registration of conveyance is in accordance with the provisions of the declaration of restrictions of such project.
SECTION 19. Where the enabling or master deed provides that the land included within a condominium project are to be owned in common by the condominium owners therein the Register of Deeds may at the request of all the condominium owner and upon surrender of all their condominium owner’s copies, cancel the certificate of title of the property and issue a new one in the name of said condominium owners as pro-indiviso co-owners thereof.
SECTION 20. The assessment upon any condominium made in accordance with a duly registered declaration of restrictions shall be an obligation of the owner thereof at the time the assessment is made. The amount of any such assessment plus any other charges thereon, such as interest, costs (including attorney’s fee) and penalties, as such may be provided for in the declaration of restrictions, shall be and become a lien upon the condominium to be registered with the Register of Deed of the City or province where such condominium project is located. The notice shall state the amount of such assessment and such other charges thereon as may be authorized by the declaration of restrictions, a description of condominium unit against which same has been assessed, and the name of the registered owner thereof. Such notice shall be signed by an authorized representative of the management body or as otherwise provided in the declaration of restrictions. Upon payment of said assessment and charges of other satisfaction thereof, the management body shall cause to be registered a released of the lien.
Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances, such liens may be enforced in the same manner provided for by law for the judicial or extra-judicial foreclosure of mortgage or real property. Unless otherwise provided for in the declaration of the restrictions, the management body shall have power to bid at foreclosure sale. The condominium owner shall have the right of redemption as in cases of judicial or extra-judicial foreclosure of mortgages.
SECTION 21. No labor performed or services or materials furnished without the consent of or at the required of a condominium owner or his agent or his contractor or sub-contractor, shall be the basis of a lien against the condominium of any other condominium owner, unless such other owner have expressly consented to or requested the performance of such labor or furnishing of such materials or services. Such express consent shall be deemed to have given by the owner of any condominium in the case of emergency repairs of his condominium unit. Labor performed or services or materials furnished for the common areas, if duly authorized by the management body provided for in a declaration of restriction governing the property, shall be deemed to be approved by the condominium owner. The owner of any condominium may remove his condominium from a lien against two of the lien of the fraction of the total sum secured by such lien which is attributable to his condominium unit.
SECTION 22. Unless otherwise provided for by the declaration of restrictions, the management body, provided for herein, may acquire and hold, for the benefit of the condominium owners, tangible personal property and may dispose of the same by sale or otherwise, and the beneficial interest in such personal property shall be owned by the condominium owners in the same proportion as their respective interests in the common areas. A transfer of a condominium shall transfer to the transferee ownership of the transferor’s beneficial interest in such personal property.
SECTION 23. Where, in an action for partition of a condominium corporation on the ground that the project or a material part thereof has been condemned or expropriated, the court finds that the condition provided in this Act or in the declaration have not been met, the court may decree a reorganization of the project declaring which portion or portions of the project shall continue as a condominium project, the owners thereof, and the respective rights of the remaining owners and the just compensation, if any, that a condominium owner may be entitled to due to deprivation of his property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate the same on the pertinent certificate of title.
SECTION 24. Any deed declaration or plan for a condominium project shall be liberally construed to facilitate the operation of the project, and its provisions shall be presumed to be independent and several.
SECTION 25. The building and design standards for condominium projects to be promulgated by HLURB shall provide for, among others, accessibility features for disabled persons pursuant to Batas Pambansa Bilang 344 of 1994.
SECTION 26. Whenever real property has been divided into condominiums, each condominium separately owned shall be separately assessed, for purposes of real property taxation and other tax purposes, to the owners thereof and tax on each such condominium shall constitute a lien solely thereon.
SECTION 27. All acts or parts of Acts in conflict on inconsistent with this Act are hereby amended insofar as condominium and its incidents are concerned.
SECTION 28. This act shall take effect upon its approval.
Approved, June 18, 1966.