Section 1 of RA 4726, also known as "The Condominium Act," in bullet o A part of the condominium intended for independent use

d for independent use or ownership.

points: o Can include rooms or spaces on one or more floors of a building.
- Short Title: The Act is officially called "The Condominium Act."
- Project:
- RA 4726: This law specifically governs condominiums in the Philippines.
- Purpose: It allows for the creation of a condominium corporation.
o The entire parcel of real property divided or to be divided into
- Condominium Corporation: condominiums.
o Formed to hold the title (ownership) of the common areas in the o Includes all structures on the property.
condominium. - Common Areas:
o Owners of individual units automatically become members or shareholders o Everything in the project except the units.
of this corporation. o Includes areas like lobbies, stairways, and structural elements.
o Membership is based on the ownership proportion of their units. - To Divide Real Property:
- Rights and Obligations: o Means to divide ownership by creating condominiums within the property
o The Act outlines the rights and obligations of both the condominium unit but not dividing the whole property.
owners and the condominium corporation. - Common Areas and Facilities:
o Common areas: Portions not included in individual units.
Section 2. Condominium Defined o Units: Parts of the property subject to private ownership.
- Definition of Condominium: o Anything not part of a unit is considered part of the common areas.
o A condominium is an interest in real property. - Master Deed Definition: A legal document that officially describes the
o It consists of two main parts: condominium property, including the individual units and the common areas.
1. Separate interest in a unit (residential, industrial, or commercial). - Master Deed and Common Areas:
2. Undivided interest in common areas (like land and shared parts of o Common areas include structural elements (walls, roofs) and shared facilities
the building). (e.g., elevators, heating systems).
- Unit: o Utility installations, even if inside a unit, are part of common areas.
o A unit is the privately owned part of the condominium (e.g., an apartment). o The condominium corporation is responsible for maintaining these common
o Includes only the space within the walls, ceilings, windows, and doors. areas.
- Common Areas: - Regulations and Responsibilities:
o Common areas are the parts of the condominium not included in the o The condominium corporation, such as W Condominium Corporation, must
individual units. manage and maintain common areas and facilities.
o Examples include hallways, lobbies, and the land the building stands on. o Owners agree to adhere to the master deed and house rules, which regulate
- Condominium Corporation: common interests and safety.
o Created to hold the title to common areas. - Utility Installations:
o Unit owners automatically become members or shareholders of the o Even if utility components are located inside a unit (e.g., electrical panels),
corporation. they are considered part of common areas.
o Membership is proportional to the ownership interest in their respective o Maintenance and repairs should be handled by the condominium corporation
units. for safety and compliance.
- Separate Interest:
o Ownership of a unit gives the right to be a member of the condominium Section 4. Requirements for Condominium Registration
corporation. - Application of the Act:
o You can become a unit owner through sale, donation, or inheritance. o The Act applies only if certain documents are recorded and annotated in the
Register of Deeds.
o Losing ownership of the unit means losing membership in the corporation.
o The Act applies to properties divided or to be divided into condominiums.
- Supreme Court Clarification:
Master Deed Requirements:
o The term "separate interest" refers to the ownership of a unit.
- Description of Land: Details the land where the building(s) and improvements
o Membership in the condominium corporation is tied to unit ownership, are located.
regardless of how the ownership was acquired. - Description of Building(s): Includes the number of stories, basements, units,
and accessories.
Section 3. Definitions - Description of Common Areas: Outlines the shared spaces and facilities.
- Condominium: - Statement of Interests: Describes the interests acquired by purchasers in
o Defined in Section 2: A property with separate units and common areas. both units and common areas. If held by a condominium corporation, this must
- Unit: be stated.
- Purpose of Use: Specifies the intended or restricted uses of the building(s) and o Separation of Ownership: The ownership of land and units are separated.
units. o Condominium Corporation: Manages the common areas and facilitates
- Owner’s Certificate: A certificate from the registered owner(s) and lien
the transfer of units and shares.
holders consenting to the master deed registration
- Plans:
Section 6. Incidents of a Condominium Grant
 Survey Plan: Shows the land included in the project.
1. Unit Boundaries:
 Floor Plan: Diagram of the building, identifying units and their locations.
- Restrictions: Any reasonable restrictions on selling or disposing of units that
o Boundaries: The unit's boundaries are the interior surfaces of its perimeter
are not against the law, morals, or public policy walls, floors, ceilings, windows, and doors.
Amendment or Revocation: o Not Part of Unit: Common elements not included in the unit are:
- Can be amended or revoked by a simple majority of registered owners:  Bearing walls, columns, floors, roofs, and foundations.
o Residential/Commercial: Majority is based on unit ownership.  Lobbies, stairways, hallways, and other common areas.
o Mixed Use: Majority is based on floor area ownership.  Elevator equipment, central heating/cooling, pipes, ducts, and utility
- Requires notification to all owners and approval from the Housing and Land Use installations, except outlets within the unit.
Regulatory Board and city/municipal engineer before registration. 2. Exclusive Easement:
Master Deed Definition: o Air Space: Owners have exclusive use of the air space within their unit
- A Master Deed is a contract among all condominium members (co-owners) boundaries.
detailing common areas and facilities. o Termination: Easement ends if the unit is destroyed and becomes
Legal Framework: untenantable.
- Civil Code: Provisions on builders in good faith apply when the landowner and 3. Common Areas:
builder are different. o Ownership: Common areas are shared equally by all unit holders, one share
- Condominium Act: Governs properties recorded under this Act.
per unit, unless otherwise specified.
- Master Deed and By-Laws: Establish the contractual relations between the
4. Easement Rights:
condominium corporation and unit owners
o Access: Owners have a non-exclusive easement for access and support
Section 5. Transfer and Conveyance of Units through common areas.
- General Rule: o Common Areas: Subject to these easements.
o Transferring or selling a unit (apartment, office, store) includes transferring: 5. Interior Decoration:
 The undivided interest in the common areas. o Exclusive Right: Owners can paint, tile, wax, or otherwise decorate the
 Membership or shareholdings in the condominium corporation if interior surfaces of their own unit.
6. Mortgaging and Encumbrance:
applicable.
- Exceptions: o Right: Owners can mortgage, pledge, or encumber their unit and have it
o Co-Ownership by Unit Owners: appraised separately.
 If common areas are owned jointly by unit owners:
o Personal Obligation: Any obligations are personal to the owner.
7. Sale or Disposal:
 Units can only be sold to:
o Right to Sell: Owners can sell or dispose of their unit.
 Filipino citizens, or
 Corporations with at least 60% Filipino ownership. o Master Deed Requirement: If required by the master deed, the unit must
first be offered to other condominium owners before being offered to
 Exception: Sales to foreigners are allowed in cases of hereditary
outsiders.
succession (inheritance).
o Corporation Ownership of Common Areas:
Section 7. Common Areas
 If common areas are owned by a corporation: - Undivided Common Areas:
 A unit transfer is invalid if it would increase foreign ownership in the o General Rule: Common areas in a condominium must remain undivided.
corporation beyond legal limits. o No Judicial Partition: There can be no legal action to partition or divide the
- Foreign Ownership:
common areas.
o Foreigners can own up to 40% of the shares in a condominium corporation. - Exceptions:
o The land is owned by the condominium corporation, and unit owners are o Specific Provisions: There may be exceptions or specific provisions for
members of this corporation. division or use of common areas as outlined in subsequent sections of the
o As long as 60% of the corporation’s members are Filipino, the remaining Act.
40% can be foreigners.
- Legal Framework: Section 8. Partition by Sale of the Condominium Project
- General Rule:
 o Action for Partition: Owners of multiple condominiums in a project may o Pay taxes and discharge liens on the project/ take care of any liens (legal
bring a legal action to sell the entire project, as if all were co-owners. claims) on the property
- Conditions for Partition: o Handle reconstruction after damage.
o 1. Damage or Destruction: o Delegate its powers and
 Time Frame: Three years after significant damage or destruction. o enter units for necessary maintenance.
 Condition: The project has not been repaired or rebuilt substantially to o Sell the entire project when partition is authorized under Section 8.
its original state.
2. Amendments:
o 2. Untenantable Units:
o Procedure for amending restrictions, requiring at least a majority vote from
 Extent of Damage: Damage has made half or more of the units the owners.
untenantable. 3. Auditing:
 Owner Opposition: More than 30% of the common area interest o An independent auditor will check the management’s financial accounts
holders oppose repairs. 4. Assessments:
o 3. Obsolescence: o Reasonable assessments for authorized expenditures, with each unit
 Age: The project is over 50 years old. assessed separately based on its share of common areas.
 Condition: The project is considered obsolete and uneconomic. o Unit owners must pay for their share of the common expenses. Each unit is
 Owner Opposition: More than 50% of the common area interest charged based on its share of the common areas
holders oppose repairs or modernization. 5. Lien Subordination:
o 4. Condemnation or Expropriation: o Conditions under which assessment liens are subordinated to other liens.
 Viability: The project or a significant part has been condemned 6. Conditions for Partition/Dissolution:
(declared unsafe or unfit for use) or expropriated (taken by the o Additional conditions for partition or dissolution beyond those in Sections 8
government for public use) and is no longer viable (meaning it can no and 13, like failure to rebuild or specific damage levels.
longer function as intended). Purpose:
 Owner Opposition: More than 70% of the common area interest - Common Interest and Safety:
holders oppose continuing the condominium regime. o These restrictions ensure the common interest and safety of all occupants,
o 5. Declaration of Restrictions: even if it limits individual ownership rights.
 Conditions Met: The declaration of restrictions for partition by sale Legal Points:
must be adhered to - Management Can Enforce Rules:
Section 9 of RA 4726, "The Condominium Act": Overview and Key Points o The management group can enforce the rules, including penalties, as
General Requirement: decided in the Master Deed.
- Registration of Restrictions: - Binding Contract:
o Before selling any condominium unit, the owner of the project must register o The Master Deed is like a contract that all owners agree to when they buy a
a "declaration of restrictions." unit. It must be followed as if it’s the law.
o This declaration creates a lien on each unit, binding all condominium
owners. Section 10: Condominium Corporation as Management Body and
o The Register of Deeds must annotate this declaration on the land title within Membership Rules
the project. Condominium Corporation:
Managing the Condominium: - Role:
- Who Manages It? o A condominium corporation manages the common areas of a condominium
o The rules must set up a management group, which can be: project.
- Purpose:
 A condominium corporation.
 An association of unit owners.
o It holds the title to the common areas (like land and shared facilities) and
manages the project.
 A board of governors elected by owners.
o Its purposes are limited to managing the project and related activities.
 A management agent elected by owners or the board.
- Articles and By-Laws:
Possible Provisions in the Declaration:
1. Management Body Powers: o The corporation’s rules (articles of incorporation or by-laws) must not conflict
o Enforce the declaration's provisions. with the Condominium Act, the master deed, or the project’s restrictions.
- Membership:
o Maintain insurance policies for the project.
o Membership in the corporation is tied to owning a condominium unit.
o handle maintenance, utilities, services, and professional needs.
o Membership cannot be transferred separately from the unit.
o Purchase materials for common areas.
 o If a person sells or loses ownership of their unit, they automatically lose their o Dissolution can only occur under Rule 104 of the Rules of Court if specific
membership in the corporation. conditions are met.
Key Points: - Conditions for Dissolution:
- Management Body: The corporation is responsible for managing the a. Damage or Destruction:
condominium project.  If the project is damaged or destroyed, rendering a major part unfit for
- Limited Purpose: The corporation’s role is strictly related to managing and use, and it hasn't been repaired or rebuilt within three years.
holding the common areas. b. Untenantable Units:
- Membership Tied to Ownership: Only unit owners are members, and  If damage has made half or more of the units untenantable, and more
membership ends if ownership ends. than 30% of members (for non-stock corporations) or shareholders (for
stock corporations) oppose repair or reconstruction.
Section 11: Term of the Condominium Corporation c. Obsolescence:
Term of the Condominium Corporation:  If the project is over 50 years old, obsolete, and more than 50% of
- Duration: members or shareholders oppose modernization or repair.
o The condominium corporation’s existence is tied to the duration of the d. Condemnation or Expropriation:
condominium project.  If the project or a significant part is condemned or expropriated, and
o The corporation will continue as long as the project is active, even if this more than 70% of members or shareholders oppose continuing the
goes against the usual rules for corporate terms condominium regime.
Key Point: e. Declaration of Restrictions:
- Alignment with Project: The condominium corporation ends when the  If the declaration of restrictions specifies conditions for dissolution, and
condominium project ends those conditions have been met

Section 12: Involuntary Dissolution of the Condominium Corporation Section 14: Voluntary Dissolution of a Condominium Corporation by Vote
Involuntary Dissolution: Dissolution by Vote:
- Process: - Procedure:
o If a condominium corporation is dissolved involuntarily (e.g., by legal action), o The condominium corporation can be dissolved if all stockholders or
the common areas it owns or holds will be liquidated. members vote in favor of dissolution.
o Liquidation: o This vote must occur at a general or special meeting that has been properly
 The common areas are divided among the members or stockholders called for this purpose.
based on their share in the corporation. - Requirements:
 This distribution is done in proportion to their interests and after paying o All requirements specified in Section 62 of the Corporation Law must be
off the corporation's creditors. followed to ensure the dissolution is valid
o Outcome: Section 62 of the Corporation Law -
 This transfer of common areas is considered a complete liquidation of What is Section 62?
the members' or stockholders' interests in the corporation. - Purpose: Section 62 outlines the rules and requirements for legally dissolving a
- Post-Dissolution: corporation. It ensures that the process is conducted properly and fairly.
Key Points in Section 62:
o After liquidation, the rules for undivided ownership of the common areas in
1. Proper Meeting:
condominium projects will still apply.
Key Points:
o The decision to dissolve must be made during a meeting that is properly
- Transfer Proportions: Common areas are shared based on each member’s or called and noticed. This means the meeting must be scheduled and
stockholder’s interest. announced according to legal requirements.
- Creditor Rights: Creditors’ claims are prioritized before the distribution to 2. Voting Requirements:
members or stockholders. o The section specifies how the vote must be conducted, including the
- Continued Applicability: The rules for undivided co-ownership remain in necessary majority or unanimous approval required to proceed with
effect after dissolution. dissolution.
3. Filing and Documentation:
Section 13: Voluntary Dissolution of a Condominium Corporation o After the vote, certain documents and forms must be filed with relevant
Conditions for Voluntary Dissolution: government authorities to officially record the dissolution of the corporation.
- General Rule: 4. Debt and Obligations:
o The condominium corporation cannot be voluntarily dissolved while the o It may also include provisions for settling the corporation’s debts and
project's enabling or master deed is in effect. obligations before dissolution. This ensures that any outstanding liabilities
are addressed
 - Condominium Owner's Copy: The new owner will receive a "condominium
Section 15: Liquidation of a Condominium Corporation upon Voluntary owner's" copy of the certificate of title. This copy:
Dissolution o Does not need to include details of other condominiums or transactions.
General Rule: o Must include a description of the land, the condominium conveyed, and the
- Power of Attorney: Upon voluntary dissolution, the condominium corporation
owner's personal details.
is considered to have a power of attorney from all members or stockholders.
Additional Requirements:
- Sale and Liquidation: The corporation will sell and dispose of all separate
- Management Body Certificate: Any subsequent sale must be accompanied
interests in the project as if it owned the entire project. This is done to liquidate
by a certificate from the management body of the project, confirming that the
the corporation.
sale follows the project's declaration of restrictions.
- Creditors' Rights: The sale is subject to the rights of both corporate and
For Projects Under Spanish Mortgage Law:
individual condominium creditors.
- Deed Registration: For projects registered under the Spanish Mortgage Law or
Exception:
Act 3344:
- Declaration of Restrictions: If the declaration of restrictions specifies
otherwise, those provisions will apply
o The Register of Deeds will keep the original or signed copy of the deed of
conveyance.
Section 16: Selling or Changing Common Areas o The Register of Deeds will return a copy of the deed to the condominium
General Rule: owner, stamped and acknowledged, similar to other real property
- No Changes Allowed: A condominium corporation cannot sell, exchange, registrations.
lease, or get rid of the common areas it owns while it is still active. Key Points:
Exception: - Annotate Title: Register and annotate the title with details of the sale.
- Owner Approval Needed: The corporation can only make these changes if - Owner's Copy: Provide a simplified copy of the title to the new owner.
more than half of the registered owners agree. - Management Certification: Ensure the sale complies with project restrictions.
- Notify Owners: All registered owners must be informed before any decision is - Spanish Law Projects: Follow specific procedures for projects under Spanish
made. laws
- Expanding or Combining Projects: The corporation can only expand or
combine with another project if more than half of the owners agree and it gets Section 19: Canceling and Reissuing Certificates of Title
the final approval from the Housing and Land Use Regulatory Board. General Rule:
- Common Ownership: If the enabling or master deed states that the land in
Section 17: Selling Shares and Interests the condominium project is to be owned together by all the condominium
General Rule: owners:
- No Automatic Payment: A stockholder or member cannot demand payment Request Process:
for their shares or interest in the condominium unless they agree to sell their - Application: All condominium owners must request the Register of Deeds to
interest. cancel the existing certificates of title.
Exception: - Surrender Copies: Owners must return all their "condominium owner's" copies
- Sale Required: If a stockholder or member wants to be paid, they must agree of the certificates of title.
to sell their interest in the project to the corporation or to a buyer chosen by the Action by Register of Deeds:
corporation. The buyer must also buy the stockholder's interest from the - Cancel Certificates: The Register of Deeds will cancel the old certificates of
corporation. title.
Additional Details: - Issue New Certificate: A new certificate of title will be issued showing the
- Valuation Disputes: If there is a disagreement about the price, the procedure condominium owners as co-owners of the land in common.
for valuing shares under the Corporation Law will be used.
- Time Frame: The corporation has 2 years to either pay for the shares or find a Section 20: Assessments and Liens on Condominiums
buyer after the price is set. Assessments:
- Expenses: The stockholder or member must cover all expenses related to the - Obligation: When an assessment (charge) is made on a condominium
sale of their interest. according to the registered rules, the current owner must pay it.
Liens:
Section 18: Registration of Condominium Transfers - Creating a Lien: The assessment amount, plus any extra charges (like interest,
General Rule: costs, or penalties), becomes a lien (a legal claim) on the condo.
- Registration of Conveyance: When a condominium is sold or transferred, the - Notice: The management body will register a notice with the Register of Deeds.
deed must be registered with the Register of Deeds. This notice will include:
- Fees: The proper fees must be paid for registration. o The assessment amount and charges.
Details of Registration: o A description of the condo.
- Certificate of Title: The Register of Deeds will annotate the certificate of title o The name of the condo owner.
for the land within the project.
 o Signature of the management body representative. - Management and Finances:
Types of Liens: o Section 9: Authorizes the collection of dues, fees, and assessments for
- Superior Liens: This lien is higher in priority than most other liens recorded various needs like maintenance, insurance, services, and reconstruction,
after it. ensuring all expenditures benefit the condo owners and the common areas
- Exceptions:
1. Real property tax liens (taxes owed to the government). Section 23: Reorganization of the Condominium Project
2. If the registered rules say it should be lower in priority than other liens. When Reorganization Happens:
Enforcement: 1. Action for Partition or Dissolution: This section applies when there is an
- Foreclosure: If not paid, the lien can be enforced through judicial or extra- action for dividing (partition) a condominium project or dissolving the
judicial foreclosure (legal process to sell the property). condominium corporation.
- Bidding: The management body can bid at the foreclosure sale unless the 2. Grounds for Action: The reason must be that the project or a significant part
registered rules say otherwise. of it has been condemned or taken by the government (expropriated).
- Redemption: The condo owner can redeem (buy back) the property just like in 3. Conditions Not Met: If the court finds that the conditions outlined in the
other foreclosure cases. Condominium Act or the declaration of restrictions are not met.
Court's Decision:
Section 21: Liens for Labor and Services - Reorganization: The court may order a reorganization of the project,
General Rule: specifying:
- Liens: Labor, services, or materials requested or consented to by a condo o Continuing Portions: Which parts of the project will remain as a
owner (or their agent/contractor) cannot create a lien (legal claim) on that condominium.
condo or other condos unless those other owners also explicitly consented or o Owners: The new owners of these parts.
requested the work.
o Rights: The rights of the remaining owners.
Exceptions:
- Emergency Repairs: If repairs are needed urgently, the condo owner’s o Compensation: Any fair compensation a condo owner might receive due to
consent is assumed. loss of their property.
- Common Areas: If work on common areas is authorized by the management Register of Deeds:
body (as per the property's rules), it is considered approved by all condo - Entry and Annotation: After the court's decree, the Register of Deeds must
owners. record and update the certificate of title with this information.
Removing a Lien:
- Payment: A condo owner can remove their unit from a lien affecting multiple Section 24: Construction of Deeds, Declarations, and Plans
units by paying their share of the lien amount to the lien holder. General Rule:
- Liberal Interpretation: Any deed, declaration, or plan related to a
Section 22: Acquisition and Disposal of Personal Property condominium project should be interpreted in a way that supports the smooth
General Rule: operation of the project.
- Management Body's Powers: The management body of a condominium can Key Points:
acquire and hold both tangible (physical) and intangible (non-physical) personal - Independent Provisions: The provisions within these documents are
property for the benefit of all condo owners. They can also sell or otherwise considered to be separate and independent from each other.
dispose of this property. - Severability: If one part of the document is found to be invalid or
Exception: unenforceable, the rest of the document remains valid and in effect.
- Declaration of Restrictions: If the declaration of restrictions says otherwise, Summary:
it takes precedence. - Flexibility: The documents for a condominium project should be read in a way
Ownership Transfer: that helps the project run smoothly.
- Transferring Interest: When a condo is sold, the new owner also gets the - Separate Provisions: Each part of these documents can stand on its own, so if
previous owner's share of any personal property owned by the condo one part has issues, the others still apply.
corporation
Additional Notes on RA 4726: Section 25: Taxation of Condominiums
- Non-Profit Purpose: Section 10 and 22 of RA 4726 emphasize that a Main Idea:
condominium corporation is non-profit and its actions should benefit the condo - Separate Taxation: Each individual condominium unit is taxed separately.
owners. Key Points:
o Section 10: Limits the corporation’s purposes to managing common areas - Separate Assessment: Each condo unit is treated as a separate property for
and related activities, prohibiting any conflicting provisions in its articles of tax purposes.
incorporation or by-laws. - Lien on Unit: Taxes owed on a condo unit apply only to that specific unit and
not to the whole property.
o Section 22: Allows the management body to handle personal property for
the benefit of condo owners, in line with their interests.
Section 26: Repeal of Conflicting Laws
Main Idea:
- Conflict Resolution: Any previous laws that clash with this Act are changed.
Key Points:
- Amendment of Old Laws: Older laws that conflict with the provisions of this
Act are updated or adjusted.
- Focus on Condominiums: This adjustment applies specifically to issues
related to condominiums and their management.

Section 27: Effectivity

Main Idea:
- Activation Date: This Act starts working from the date it is approved.
Key Points:
- Effective Date: The Act becomes effective immediately upon approval.
Date Approved: June 18, 1966