Professor Jack Lynch believes that the law is outdated with regard to the ownership of…
(First of two parts)
Condominium units continue to sell like hot cakes.
In its report on the real estate sector, the Board of Investments forecast annual growth of at least 3 percent in home take-up, consistent with household formation in the country. Colliers International Philippines noted that despite higher inflation and increased benchmark yields from Bangko Sentral ng Pilipinas, 54,000 condo units located in major business districts in Metro Manila were sold. in 2018, surpassing the previous record of 53,000 units in 2017. Also last year. has seen a sharp increase in affordable to medium-sized housing, with prices ranging from 1.7 million pesos to 5.9 million pesos.
“Yields are more likely to remain attractive in large [central business districts (CBD)], unless something extraordinary happens, ”Colliers was quoted in an Inquirer report. “We suggest that potential buyers seriously consider projects in primary CBDs and those in the easily accessible surrounding outlying areas, as they would offer the best returns on their investment.”
Prospective buyers need to understand that investing in a condominium is more than owning a home. Under the Condominium Act, condominium refers to an interest in real property, consisting of a separate interest in said unit in a commercial, industrial or residential building; and the undivided interest in the land on which the building is located and in the other common parts thereof. In some cases, a condominium may also include a separate interest in other parts of that building.
Title to the land, common areas or ancillary interests in these areas may be held by a condominium corporation whose holders of distinct interests are automatically members or shareholders, to the exclusion of the others. Their interest in the corporation is proportional to the interest attached to their respective units in the common areas.
Article 5 of the said law states: “Any transfer or transfer of a unit or apartment, office or store or other space within it includes the transfer or the transfer of undivided interests in the common portions or, as the case may be, the membership or participation in the condominium corporation: provided, however, that when the common portions of the condominium project belong to the owners of separate units as co-owners thereof, no condominium unit shall be ceded or transferred to persons other than Filipino citizens, or companies of which at least sixty percent of the share capital is owned by Filipino citizens, except in the case of hereditary succession.
He further noted that “… when the common portions of a condominium project are owned by a corporation, no transfer or transfer of a unit is valid if the concomitant transfer of ownership or ownership is Related shareholding in the company results in foreign interest in that company. company to exceed the limits imposed by the laws in force.
Unless expressly provided otherwise in the enabling or controlling act or the declaration of restrictions, a unit owner is granted: the limit of the unit, consisting of the interior surfaces of the perimeter walls, floors, ceilings, windows and doors thereof; an exclusive easement for the use of the airspace encompassed by the unit’s boundaries as it exists at any given time and such that the unit may be legally modified or rebuilt from time to time; joint ownership of the common parts in equal parts, one for each dwelling, unless otherwise provided; and a non-exclusive easement for entry, exit and support as an accessory to each unit and common areas.
A unit owner may also be granted the exclusive right to paint, repaint, tile, wax, paper or otherwise re-varnish and decorate the interior surfaces of the walls, ceilings, floors, windows and doors bounding his own unit; exclusive right to mortgage, pledge or encumber his co-ownership and have it valued independently of the other co-ownership, but any obligation incurred by this owner is personal to him; and the absolute right to sell or alienate his condominium, unless the principal deed obliges him to first offer the dwelling to the other co-owners within a reasonable period of time before it is offered to third parties.
(To be continued)
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