REAL ESTATE

TRANSACTIONS
Atty. Ramon Antonio A. Ruperto
 PD 957
 P.D. No. 957 was enacted with no other end in view
than to provide a protective mantle over helpless citizens
who may fall prey to the manipulations and
machinations of unscrupulous subdivision and
condominium sellers. It was issued in the wake of
numerous reports that many real estate subdivision
owners, developers, operators and/or seller have
reneged on their representations and obligations to
provide and maintain properly subdivision roads,
drainage, sewerage, water systems, lighting systems,
and other basic requirements for the health and safety
of home and lot buyers.
 applicable to Open market and Medium cost subdivision
and condominium projects.
 Economic and socialized housing – BP 220
 Medium cost and open market – PD 957
 HLURB price ceilings (set by the
HUDCC)
 Socialized housing = PHP 450,000.00 and below
 Low Cost
– Level 1 = above PHP 450,000.00 to PHP
1,700,000.00 (BP 220 standard);
– Level 2 = above PHP 1,700,000.00 to PHP
3,000,000.00 (PD 957 standard);
 Medium cost = PHP 3,000,000.00 up to PHP
4,000,000.00;
 Open Housing = above PHP 4,000,000.00
 Sale or sell - include every disposition, or attempt to
dispose, for a valuable consideration, of a subdivision
lot, including the building and other improvements
thereof, if any, in a subdivision project or a condominium
unit in a condominium project. "Sale" and "sell" shall
also include a contract to sell, a contract of purchase
and sale, an exchange, an attempt to sell, an option of
sale or purchase, a solicitation of a sale, or an offer to
sell, directly or by an agent, or by a circular, letter,
advertisement or otherwise.
 Buy and purchase - include any contract to buy,
purchase, or otherwise acquire for a valuable
consideration a subdivision lot, including the building and
other improvements, if any, in a subdivision project or a
condominium unit in a condominium project.
 Subdivision project - a tract or a parcel of land registered
under Act No. 496 which is partitioned primarily for
residential purposes into individual lots with or without
improvements thereon, and offered to the public for
sale, in cash or in installment terms. It shall include all
residential, commercial, industrial and recreational areas
as well as open spaces and other community and public
areas in the project.
 Complex subdivision plan - a subdivision plan of a
registered land wherein a street, passageway or open
space is delineated on the plan.
 Subdivision lot - any of the lots, whether residential,
commercial, industrial, or recreational, in a subdivision
project.
 Owner - registered owner of the land
subject of a subdivision or a condominium
project.
 Developer - the person who develops or
improves the subdivision project or
condominium project for and in behalf of
the owner thereof.
 Under PD 957, owner/developer has to register
the subdivision project and secure a license to
sell from the Housing and Land Use Regulatory
Board (HLURB)
 Approval of preliminary as well as final
subdivision schemes and development plans of
all subdivisions, in accordance with the
provisions of PD No. 957 shall be done by the
LGU (EO 71 [Devolving the Powers of the
HLURB to LGU])
 Sworn Registration Statement
 Name of the owner;
 The location of the owner's principal business office, and
if the owner is a non-resident Filipino, the name and
address of his agent or representative in the Philippines
is authorized to receive notice;
 The names and addresses of all the directors and
officers of the business firm, if the owner be a
corporation, association, trust, or other entity, and of all
the partners, if it be a partnership;
 The general character of the business actually
transacted or to be transacted by the owner; and
 A statement of the capitalization of the owner, including
the authorized and outstanding amounts of its capital
stock and the proportion thereof which is paid-up.
 Approval of Subdivision
Development Plan
(Section 4, Paragraphs 1 & 2)
 The registered owner of a parcel of land who wishes to
convert the same into a subdivision project shall submit
his subdivision plan to the LGU which shall act upon and
approve the same, upon a finding that the plan complies
with the Subdivision Standards' and Regulations
enforceable at the time the plan is submitted.

 The subdivision plan, as so approved, shall then be

submitted to the DENR for approval in accordance with
the procedure prescribed in Section 44 of the Land
Registration Act (Act No. 496, as amended by R.A. No.
440)
 Annexes to registration statement

 A copy of the approved subdivision plan

 A copy of any circular, prospectus, brochure, advertisement, letter,
or communication to be used for the public offering of the
subdivision lots or condominium units;
 In case of a business firm, a balance sheet showing the amount and
general character of its assets and liabilities and a copy of its
articles of incorporation or articles of partnership or association, as
the case may be, with all the amendments thereof and existing by-
laws or instruments corresponding thereto.
 A title to the property which is free from all liens and
encumbrances: Provided, however, that in case any subdivision lot
is mortgaged, it is sufficient if the instrument of mortgage contains
a stipulation that the mortgagee shall release the mortgage on any
subdivision lot as soon as the full purchase price for the same is
paid by the buyer.
 License to Sell
(Section 5)
 Such owner or dealer to whom has been
issued a registration certificate shall not,
however, be authorized to sell any
subdivision lot or condominium unit in the
registered project unless he shall have
first obtained a license to sell the project
within two weeks from the registration of
such project.
 Application for License to Sell
 Program of development (bar chart with S-curve, Gantt
chart/PERT-CPM, etc.) signed and sealed by licensed
engineer or architect indicating work activities, duration
and costing.
 Affidavit of undertaking to perform the following:
 Segregation of the individual titles for all lots or units within the
project;
 Submission of proof that titles to the saleable lots or units have
been issued, which proof may include a certification from
concerned register of deeds indicating the lots/blocks or units or
data similar to those required under the requirement for
Certificate of Registration only when required by the Board;
 Submission of a Certified True Copy of title of the common
areas/open space, which title shall expressly indicate the kind of
common use approved therefor, on or before a definite date (to
be specified by applicant subject to approval by the Board).
 Exempt Transactions
(Section 7)
 No license to sell necessary:
 Sale of a subdivision lot resulting from the partition of
land among co-owners and co-heirs.
 Sale or transfer of a subdivision lot by the original
purchaser thereof and any subsequent sale of the
same lot.
 Sale of a subdivision lot by or for the account of a
mortgagee in the ordinary course of business when
necessary to liquidate a bona fide debt.
 Spouses Co Chien vs. Sta. Lucia
G.R. No. 162090, January 31, 2007
 A review of the relevant provisions of P.D. 957 reveals
that while the law penalizes the selling of subdivision lots
and condominium units without prior issuance of a
Certificate of Registration and License to Sell by the
HLURB, it does not provide that the absence thereof will
automatically render a contract, otherwise validly
entered, void.
 With regard to P.D. 957, nothing therein provides for the
nullification of a contract to sell in the event that the
seller, at the time the contract was entered into, did not
possess a certificate of registration and license to sell.
 Suspension of license to sell
(Section 8)
 Suspension upon verified complaint pending
investigation

 Motu proprio suspension

 any information that is misleading, incorrect,
inadequate or incomplete

 Lifting of suspension order

 registration statement is accurate or that any
deficiency therein has been corrected
 dismissal of the complaint for lack of legal basis.
 Revocation of registration
certificate and license to sell
(Section 9)
 Satisfactory evidence (after notice and hearing) that the
said owner:

 Is insolvent;
 has violated any of the provisions of this Decree or any
applicable rule or regulation of the Authority, or any undertaking
of his/its performance bond; or
 Has been or is engaged or is about to engage in fraudulent
transactions; or
 Has made any misrepresentation in any prospectus, brochure,
circular or other literature about the subdivision project or
condominium project that has been distributed to prospective
buyers; or
 Is of bad business repute; or
 Does not conduct his business in accordance with law or sound
business principles.
 Cease and Desist Order
(Section 16)
 Whenever it shall appear that any person
is engaged or about to engage in any act
or practice which constitutes or will
constitute a violation of the provisions of
this Decree, or of any rule or regulation
thereunder, it may, upon due notice and
hearing as provided in Section 13 hereof,
issue a cease and desist order to enjoin
such act or practices.
 DEALERS, BROKERS AND SALESMEN
(Section 11)

 No real estate dealer, broker or salesman

shall engage in the business of selling
subdivision lots or condominium units
unless he has registered himself with the
HLURB.
 REGISTRATION
(Section 17)
 All contracts to sell, deeds of sale and other similar
instruments shall be registered by the seller in the Office
of the ROD of the province or city where the property is
situated.
 if there is a street, passageway or required open space
delineated on a complex subdivision plan, the ROD shall
annotate on the new certificate of title covering the
street, passageway or open space, a memorandum to
the effect that except by way of donation in favor of a
city or municipality, no portion of any street,
passageway, or open space so delineated on the plan
shall be closed or otherwise disposed of by the
registered owner without the requisite approval as
provided under Section 22 of this Decree.
 MORTGAGES
(Section 18)
 No mortgage on any unit or lot shall be made by the
owner or developer without prior written approval of the
HLURB.
 Shall not be granted unless it is shown that the proceeds
of the mortgage loan shall be used for the development
of the project.
 Loan value of each lot or unit covered by the mortgage
shall be determined and the buyer thereof, if any, shall
be notified before the release of the loan.
 The buyer may, at his option, pay his installment for the
lot or unit directly to the mortgagee, with a view to
enabling said buyer to obtain title over the lot or unit
promptly after full payment thereto;
 ADVERTISEMENTS
(Section 19)
 Advertisements must reflect the real facts and
must be presented in such manner that will not
tend to mislead or deceive the public.

 The owner or developer shall be answerable and

liable for forms of development represented or
promised in advertisements and the same shall
form part of the sales warranties enforceable
against said owner or developer, jointly and
severally.
 TIME OF COMPLETION
(Section 20)
 Completion of development and facilities
(as advertised) must be made within one
year from the date of the issuance of the
license for the subdivision or condominium
project or such other period of time as
may be fixed by the HLURB.
 ALTERATION OF PLANS
(Section 22)
 No owner or developer shall change or alter the
roads, open spaces, infrastructures, facilities for
public use and/or other form of subdivision
development as contained in the approved
subdivision plan and/or represented in its
advertisements, without the permission of the
HLURB and the written conformity or consent of
the duly organized homeowners association, or
in the absence of the latter, by the majority of
the lot buyers in the subdivision.
 NON-FORFEITURE OF PAYMENTS
(Section 23)
 Buyer may desist, after due notice to the owner
or developer, from further payment due to
failure of the developer to develop the project
within the time limit
 Installment payments already made by a buyer
shall not be forfeited in favor of the owner or
developer
 Buyer may, at his option, be reimbursed the
total amount paid including amortization
interests but excluding delinquency interests,
with interest thereon at the legal rate.
 Francel Realty vs. Sycip
G.R. No. 154684, September 8, 2005
 To require clearance from the HLURB before stopping
payment would not be in keeping with the intent of the
law to protect innocent buyers of lots or homes from
scheming subdivision developers. To give full effect to
such intent, it would be fitting to treat the right to stop
payment to be immediately effective upon giving due
notice to the owner or developer or upon filing a
complaint before the HLRUB against the erring
developer. Such course of action would be without
prejudice to the subsequent determination of its
propriety and consequences, should the suspension of
payment subsequently be found improper.
 Zamora Realty vs. OP
G.R. No. 165724, November 2, 2006
 In case the developer of a subdivision or
condominium fails in its obligation under Section
20 of P.D. No. 957, Section 23 of the law gives
the buyer the option to demand reimbursement
of the total amount paid, or to wait for further
development of the subdivision, and when the
buyer opts for the latter alternative, he may
suspend payment of installments until such time
that the owner or developer had fulfilled its
obligation to him.
 Zamora Realty vs. OP
G.R. No. 165724, November 2, 2006

 It is thus clear that the law provides two remedies in case of

incomplete development of the subdivision project: (1)
reimbursement of the total amount paid, including amortization
interests but excluding delinquency interests, with interest thereon
at the legal rate; or (2) for the buyer to suspend amortization
payments until the completion of the project. These remedies are
available to the prospective buyer to give effect to the law’s intent
to protect the buyers from abusive owners/developers of
subdivisions. In cases of incomplete development, it is the
developer who is the one at fault, as it would then have violated its
promise to the prospective buyers to provide the necessary facilities
in the subdivision. The aggrieved party, therefore, is the prospective
buyer because of the non-fulfillment of the developer’s commitment.
As such, it is but logical that the option is given to the prospective
buyer, not to the developer.
 Zamora Realty vs. OP
G.R. No. 165724, November 2, 2006

 Petitioner therefore cannot insist that payments

made by respondent be returned to him; neither
can respondent be compelled to accept another
property in lieu of the lot subject of the contract.
To reiterate, respondent, as prospective buyer,
had opted to exercise his right to suspend
payment and wait for the completion of the
subdivision project. He cannot therefore be
forced to accept reimbursement of his
amortization payments or to accept a lot
different from the subject of the contract.
 FAILURE TO PAY INSTALLMENTS
(Section 24)
 The rights of the buyer in the event of this
failure to pay the installments due for
reasons other than the failure of the
owner or developer to develop the project
shall be governed by Republic Act No.
6552 (Maceda Law)
 ISSUANCE OF TITLE
(Section 25)
 The owner or developer shall deliver the title of the lot
or unit to the buyer upon full payment of the lot or
unit.
 No other fee shall be collected for the issuance of such
title.
 In the event a mortgage over the lot or unit is
outstanding at the time of the issuance of the title to the
buyer, the owner or developer shall redeem the
mortgage or the corresponding portion thereof within six
months from such issuance in order that the title over
any fully paid lot or unit may be secured and delivered
to the buyer in accordance herewith.
 REALTY TAX
(Section 26)
 Real estate tax and assessment on a lot or
unit shall be paid by the owner or
developer for as long as the title has not
passed to the buyer.
 If the buyer has actually taken possession
of and occupied the lot or unit, he shall be
liable to the owner or developer for such
tax the year following such taking of
possession and occupancy.
 Section 28. Access to Public Offices in the Subdivisions.
No owner or developer shall deny any person free access
to any government office or public establishment located
within the subdivision or which may be reached only by
passing through the subdivision.

 Section 29. Right of Way to Public Road. The owner or

developer of a subdivision without access to any existing
public road or street must secure a right of way to a
public road or street and such right of way must be
developed and maintained according to the requirement
of the government and authorities concerned.
 HOMEOWNERS ASSOCIATION
(Section 30)

 The owner or developer of a subdivision

project or condominium project shall
initiate the organization of a homeowners
association among the buyers and
residents of the projects for the purpose
of promoting and protecting their mutual
interest and assist in their community
development.
ROADS, ALLEYS, SIDEWALKS AND
OPEN SPACES.
(Section 31, as amended by PD 1216)
 Provision of adequate roads, alleys and
sidewalks.
 One (1) hectare or more:
 30% of the gross area should be open space
 exclusively for parks, playgrounds and recreational
use:
 9% of gross area for high density or social housing
 7% of gross area for medium-density or economic
housing
 3.5 % of gross area low-density or open market housing
 High-density or social housing
 66 to 100 lots per gross hectare
 medium-density or economic housing
 21 to 65
 low-density or open market housing
 20 and below
 PD 957 IRR
Rule I (Minimum Design Standards), Section C
Facilities
 City of Angeles vs. CA
G.R. No. 97882. August 28, 1996
 Here, the phrase 30% of the gross area refers to
the total area of the subdivision, not of the open
space. Otherwise, the definition of open space would be
circular. Thus, logic dictates that the same basis be
applied in the succeeding instances where the phrase
open space is used, i.e., 9% of gross area . . . 7% of
gross area . . . 3.5% of gross area . . . Moreover, we
agree with petitioners that construing the 3.5% to 9%
as applying to the totality of the open space would result
in far too small an area being devoted for parks,
playgrounds, etc., thus rendering meaningless and
defeating the purpose of the statute. T
 PHASES OF SUBDIVISION
(Section 32)
 For purposes of complying with the
provisions of this Decree, the owner or
developer may divide the development
and sale of the subdivision into phases,
each phase to cover not less than ten
hectares. The requirement imposed by
this Decree on the subdivision as a whole
shall be deemed imposed on each phase.
ROADS, ALLEYS, SIDEWALKS AND
OPEN SPACES.
(Section 31, as amended by PD 1216)
 Areas reserved for parks, playgrounds and recreational
use shall be non-alienable public lands, and non-
buildable.

 Upon their completion, the roads, alleys, sidewalks and

playgrounds shall be donated by the owner or developer
to the city or municipality and it shall be mandatory for
the local governments to accept provided, however, that
the parks and playgrounds may be donated to the
Homeowners Association of the project with the consent
of the city or municipality concerned. No portion of the
parks and playgrounds donated thereafter shall be
converted to any other purpose or purposes.
 Design Standards for Subdivision
(IRR, PD 957)
 Residential subdivision projects shall
conform with the following minimum
design standards, applicable local
government units' (LGU) zoning
ordinances as well as pertinent provisions
of the National Building Code if project is
with housing component:
 1. Location
 Conformity with Zoning
Ordinance/Comprehensive Land Use Plan -
Subdivision projects shall be located in
residential zones or other areas
appropriate for residential uses.
 2. Physical Suitability
 Subdivision projects shall be located within
suitable sites for housing and outside
hazard prone areas and protection areas
as provided for by pertinent laws.
 3. Accessibility
 The site must be served by a road that is
readily accessible to public transportation
lines.
 In no case shall a subdivision project be
approved without the necessary access
road/right-of-way. Said access road right-
of-way may be constructed either by the
developer or the local government unit.
 Land Allocation
 For open market and medium cost
subdivision projects with an area of one
(1) hectare or more, the percentage (%)
allocation of land shall be as follows:
a. saleable area — maximum of 70% of
the gross area
b. non-saleable area — minimum of
30% of the gross area
 Dwelling Types
 Single Detached - a dwelling unit completely surrounded
by yards.
 Single Attached - a dwelling unit with one side attached
to a firewall
 Duplex - a dwelling unit containing 2 separate living
units each of which is separated from another by a
firewall and provided with independent access.
 Rowhouse - dwelling units containing 3 or more living
units designed in such a way that they a but each other
and are separated from each other by a firewall each
unit provided with independent access.
 Types of Lots
 Corner lot -a lot situated at the intersection of
two or more streets.
 Regular lot -a lot fronting on one street and the
remaining sides bounded by lot lines.
 Interior lot -a lot located at the inner portion of
a block with a minimum of three-meter (3-m)
wide access which forms part of the lot.
 Through lot -a lot bounded on two opposite
sides by roads.
 Irregular lot -any lot which is not rectangle nor
square-shaped
 Minimum Lot Area
PD 957

BP 220
Single Detached
Duplex (single attached)
Rowhouse
BP 220 PD 957
(Medium Cost & Open Market)
Minimum Lot Frontage
Balanced Housing Development
 Sec. 18, RA 7279 — developers of proposed
subdivision projects shall be required to develop
an area for socialized housing equivalent to at
least:
 TWENTY PERCENT (20%) of the total subdivision
area; or
 TWENTY PERCENT (20%) of total subdivision project
cost
 Location: within the same city or municipality,
whenever feasible, or anywhere in the
Philippines
 Cannot use a combination of the two
 Socialized Condominium Project
 Total Area = be gross land area + gross
floor area
 Total cost = cost of raw land based on
zonal value + total building construction
cost
 Other Manners of Compliance
 The balanced housing development as herein
required may also be complied with by the
developers concerned in any of the following
manner:
 Development of new settlement;
 Slum upgrading or renewal of areas for priority
development either through zonal improvement
programs or slum improvement and resettlement
programs;
 Joint-venture projects with either the local
government units or any of the housing agencies; or
 Participation in the community mortgage program.
 New Settlement
 Refers to socialized housing projects or
similar housing developments for
underprivileged and homeless citizens
 Can be done through:
 JV project with HLURB-accredited developers
of the production of new socialized housing
 Contribution in new socialized housing
projects of HLURB-accredited NGOs
 Provision of educational or health facilities,
livelihood centers
 Slum upgrading or renewal
 Programs under the National Housing
Authority (NHA) for upgrading and
improving blighted areas
 SIRP – Slum Improvement and Resettlement
Program
 ZIP – Zonal Improvement Program
 JV Projects with LGU or housing
agencies
 Development of socialized housing or
resettlement project
 Purchase of socialized housing bonds
approved by HLURB
 Rehabilitation of Non-Performing
Socialized Housing Assets
 Provision of educational and health
facilities, livelihood centers
 Participation in CMP
 Refers to a financing scheme that is funded by
the government and that provides long-term
loans to a legally-organized association
consisting of the residents of a blighted and
depressed community
 Can be done by:
 Providing a parcel of land to a CMP project
 Providing or developing a right-of-way or access to
roads or other forms of development in existing CMP
 Utilization of Compliance Project
 Future utilization – developer may develop
a socialized housing project as compliance
for its future main subdivision project/s
 Subsequent utilization – developer may
develop a socialized housing project in
excess of the required area or cost of its
main subdivision project and utilize the
excess thereof for some other subdivision
project
 BP 220
 Governs Socialized Housing
 There shall be no fixed ratio between
saleable portion and non-saleable portion
of a subdivision project.
 Condominium Act
 Republic Act No. 4726, June 18, 1966
 An act to define condominium, establish
requirements for its creation, and govern
its incidents.
 Condominium
 Interest in real property consisting of:
 Separate interest in a unit in a residential, industrial or
commercial building
 Undivided interest in common, directly or indirectly, in the land
on 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.
 Unit - part of the condominium project intended
for any type of independent use or ownership,
including one or more rooms or spaces located
in one or more floors (or part or parts of floors)
in a building or buildings and such accessories
as may be appended thereto.
 Project - entire parcel of real property divided or
to be divided in condominiums, including all
structures thereon,
 Common areas - means the entire project
excepting all units separately granted or held or
reserved.
 Master Deed
 Description of the land on which the building is located;
 Description of the building or buildings, stating the number of stories and
basements, the number of units and their accessories, if any;
 Description of the common areas and facilities;
 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. Where title to or the appurtenant interests in the
common areas is or is to be held by a condominium corporation, a
statement to this effect shall be included;
 Statement of the purposes for which the building or buildings and each of
the units are intended or restricted as to use;
 A certificate of the registered owner of the property, if he is other than
those executing the master deed, as well as of all registered holders of any
lien or encumbrance on the property, that they consent to the registration
of the deed;
 Any reasonable restriction not contrary to law, morals or public policy
regarding the right of any condominium owner to alienate or dispose of his
condominium.
 Annexes to the Deed
 Survey plan of the land included in the
project, unless a survey plan of the same
property had previously bee filed in said
office;
 Diagrammatic floor plan of the building or
buildings in the project, in sufficient detail
to identify each unit, its relative location
and approximate dimensions;
 Declaration of Restrictions
 Management of the project :
 a condominium corporation*
 association of the condominium owners
 board of governors elected by condominium owners
 management agent elected by the owners or by the
board named in the declaration
 Voting majorities quorums, notices, meeting
date, and other rules governing such body or
bodies.
 Whenever the common areas in a
condominium project are held by a
condominium corporation, such
corporation shall constitute the
management body of the project.
 Transfer/Conveyance
 Any transfer or conveyance of a unit shall
include the transfer or conveyance of the
undivided interests in the common areas
or, in a proper case, the membership or
shareholdings in the condominium
corporation
 Transfer/Conveyance
 Common areas owned by the owners of
separate units as co-owners thereof -
condominium unit shall be conveyed to Filipino
citizens, or corporations at least sixty percent of
the capital stock of which belong to Filipino
citizens, except in cases of hereditary
succession.
 Common areas in a condominium project are
held by a corporation – unit may be
transferred or conveyed to foreigner provided
that foreign stockholding in the corporation will
not exceed the limits imposed by existing laws.
 Hulst vs. PR Builders
G.R. No. 156364, September 25, 2008
 The law provides that no condominium unit can be sold
without at the same time selling the corresponding
amount of rights, shares or other interests in the
condominium management body, the Condominium
Corporation; and no one can buy shares in a
Condominium Corporation without at the same time
buying a condominium unit. It expressly allows
foreigners to acquire condominium units and shares in
condominium corporations up to not more than 40% of
the total and outstanding capital stock of a Filipino-
owned or controlled corporation. Under this set up, 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.
 Unless otherwise provided in the
Master Deed:
 Boundary of the unit granted are the interior surfaces of
the perimeter walls, floors, ceilings, windows and doors
thereof.
 The following are not part of the unit bearing walls,
columns, floors, roofs, foundations and other common
structural elements of the building; lobbies, stairways,
hallways, and other areas of common use, elevator
equipment and shafts, central heating, central
refrigeration and central air-conditioning equipment,
reservoirs, tanks, pumps and other central services and
facilities, pipes, ducts, flues, chutes, conduits, wires and
other utility installations, wherever located, except the
outlets thereof when located within the unit.
 Common areas are held in common by the holders of
units, in equal shares, one for each unit.
 Each condominium owner shall have the exclusive right
to paint, repaint, tile, wax, paper or otherwise refinish
and decorate the inner surfaces of the walls, ceilings,
floors, windows and doors bounding his own unit.
 Each condominium owner shall have the exclusive right
to mortgage, pledge or encumber his condominium and
to have the same appraised independently of the other
condominiums but any obligation incurred by such
condominium owner is personal to him.
 Each condominium owner has also the absolute right to
sell or dispose of his condominium unless the master
deed contains a requirement that the property be first
offered to the condominium owners within a reasonable
period of time before the same is offered to outside
parties;
 Common Areas
 There can be a judicial partition only when:
 Damage which renders material part of project unfit for use, and after 3
years, project has not been rebuilt or repaired substantially
 Damage has rendered one-half or more of the units untenantable and
that condominium owners holding in aggregate more than 30% interest
in the common areas are opposed to repair or restoration of the
project;
 Project has been in existence over 50 years, that it is obsolete and
uneconomic, and that condominium owners holding in aggregate more
than 50% interest in the common areas are opposed to repair or
restoration or re-modeling or modernizing of the project;
 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% in the common areas are
opposed to continuation of the condominium regime after expropriation
or condemnation of a material portion thereof;
 Conditions 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.
 Dissolution of Condominium
Corporation
 Involuntary dissolution - the common areas
owned or held by the corporation shall, by way
of liquidation, be transferred pro-indiviso to the
members or stockholders thereof, subject to the
superior rights of the corporation creditors.
 Voluntary dissolution
 when any of the causes of partition of the common
areas is present
 Affirmative vote of ALL stockholders/members in a
meeting called for the purpose
 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.
 Appraisal right
 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
(appraisal right) unless he 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 provision of the Corporation Law
for valuation of shares shall be followed. 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 the
interest of the dissenting member or stockholder shall be
borne by him.
 Registration
 Upon registration of an instrument conveying a
condominium, the ROD 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 owner's" copy of the
pertinent portion of such certificate of title.
 Said "condominium owner's" copy need not reproduce
the ownership status or series of transactions in force or
annotated with respect to other condominiums in the
project. A copy of the description of the land, a brief
description of the condominium conveyed, name and
personal circumstances of the condominium owner
would be sufficient for purposes of the "condominium
owner's" copy of the certificate of title.
 No conveyance of condominiums 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.
 Where the land included within a
condominium project is owned in common
by the condominium owners (not the
corporation), the ROD may, at the request
of all the condominium owners and upon
surrender of all their "condominium
owner's" copies, cancel the certificates of
title of the property and issue a new one
in the name of said condominium owners
as pro-indiviso co-owners thereof.
 Real Property Tax
 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 the tax on each such
condominium shall constitute a lien solely
thereon.