1.
THE CONDOMINIUM ACT OF
THE PHILIPPINES
REPUBLIC ACT 4726

2.
THINGS
TO
KNOW
FREQUENTLY ASKED
QUESTIONS (FAQ’S)

3.
WHAT IS A CONDOMINIUM?
A condominium, according to RA 4726, is an “interest in a
real property consisting of a separate interest in a unit in a
residential, industrial, or commercial building and an
undivided interest in common, directly or indirectly, in the
land in which it is located and in other common areas of
the building.”
In other words, a condominium is a building where
sections of which can be owned individually by a person or,
in some cases, a corporation. This can be for either a
residential, industrial, or commercial purpose.
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4.
WHO CAN OWN
CONDOMINIUMS?
FILIPINO CITIZENS AND CORPORATIONS CAN OWN
CONDOMINIUMS ACCORDING TO THE CONDOMINIUM ACT
OF THE PHILIPPINES. FOREIGNERS, HOWEVER, ARE
RESTRICTED TO OWNING NO MORE THAN 40 PERCENT OF
THE TOTAL AND OUTSTANDING CAPITAL STOCK OF A
CORPORATION, WHICH MUST BE FILIPINO-OWNED AND
CONTROLLED. IN ADDITION TO THAT RESTRICTION,
FOREIGNERS AND FOREIGN CORPORATIONS ARE, BY LAW,
PROHIBITED TO OWN LAND.
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5.
WHO CAN OWN CONDOMINIUM UNITS?
• As per RA 4726, Filipino citizens and corporations can own condominium
units. This time, however, foreigners, by virtue of the Condominium Act, are
allowed to purchase and acquire condominium units.
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W H AT I S M Y S TA K E I N A
C O N D O M I N I U M ?
As a unit owner, you are, in essence, a co-owner of the condominium, entitled
to such privileges and limited by such restrictions that may follow the title.

6.
WHAT FORMS PART OF A CONDOMINIUM
UNIT?
• Everything within the boundaries of your unit forms part of the
same. According to RA 4726, the interior surfaces of the
perimeter walls, floors, ceilings, windows, and doors form the
boundary of your unit. That is, of course, unless the master
deed or the declaration of restrictions prescribed by the
condominium corporation or the administration stipulate
otherwise.
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7.
AM I ALLOWED TO ALTER ANYTHING BEYOND THE
BOUNDARIES OF MY UNIT?
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Generally, no. However, if the administration allows such alteration or
does not prohibit the same, then you may be allowed to. A thorough read
of the house rules or the contract would be a good idea.

8.
WHAT DOES NOT FORM PART OF THE
CONDOMINIUM UNIT?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
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In most cases, areas that are not found inside the unit are deemed to be
excluded from the unit but the condominium law itself lists aspects of
properties that generally do not form part of the unit. To wit: “bearing
walls, columns, floors, roofs, foundations, and other common structural
elements (e.g., lobbies, stairways, hallways, and other common areas),
elevator equipment and shafts, central heating, central refrigeration, and
central air-conditioning equipment, reservoirs, tanks, pumps, and other
central services and facilities, pipes, ducts, flutes, chutes, conduits, wires,
and other utility installations, wherever located.” An exception to the list
are those outlets that are located within the unit.

9.
CAN I FREELY SELL MY UNIT?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
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Yes. That is not prohibited in the condominium law. When you sell your
unit, however, you are not just selling the unit itself, you are also selling
your interest in the common areas, as well as your membership and
shareholdings in the condominium corporation.

10.
CAN I FREELY SELL MY CONDOMINIUM?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
REPUBLIC ACT 4726
THE CONDOMINIUM ACT OF THE PHILIPPINES
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Not exactly. Selling a unit may be simple, but selling a condominium is
restricted by certain rules under the Condominium Act. One of such restrictions
is the ownership requirement. For condominiums where the common areas are
co-owned by the owners of the units, the law requires that the purchaser be
either a Filipino citizen or corporation—a corporation that is at least 60 percent
owned and controlled by Filipinos. For condominiums owned by corporations,
the sale will be deemed invalid if such a sale would result in the foreign interest
in the corporation exceeding the limits prescribed by law, which in this case, is
40 percent. In other words, in both cases, the foreign ownership in the
purchasing corporation cannot exceed 40 percent, otherwise, the sale would be
invalid.

11.
CAN I MORTGAGE MY UNIT FOR
A LOAN?
W ITHIN A RE AS ONABLE TIME BEFORE
OFFERING I T TO THIRD PARTIES , THEN
IT MAY NOT.
ANOTHER RES TRICTION, HOWE VER, IS
ONE THAT HAS BE E N AM ENDED TO THE
CORPORATION CODE BY REP UBLIC ACT
NO. 7899, WHICH S TATES TH AT, AS AN
O WNER, YOU SHAL L NOT SELL,
E XCH ANGE, LE AS E, OR OTHERWISE
DIS PO SE OF T H E COMMON ARE AS OF A
CONDOM INIUM WITHO UT T H E
AP P RO VAL O F T HE S IMP LE M A JORIT Y
OF THE REGISTERED OWNERS, S UBJECT
AS WELL, TO THE AP P RO VAL O F T H E
HO U S ING AND L AND US E REGUL ATO RY
BOARD ( HLURB) .
Yes. The condominium law states that “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 condominium owner is personal to him.”
•Can the condominium corporation
•sell the condominium
•without my consent?
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12.
THE CONDOMINIUM ACT STIPULATES THAT THE OWNERS CAN SELL THE
CONDOMINIUM AFTER 50 YEARS. DOES THAT MEAN THAT I WILL NOT HAVE
ANY SAY IN THE SALE?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
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No, that is not the case. Upon turnover of the unit to you, you
become a member of the corporation that owns the
condominium. Hence, your concurrence or dissent on the
matter will count. If, however, it has been decided that the
building shall be sold, then you will be compensated for your
appropriate share from the proceeds of the sale.

13.
WHO OWNS THE COMMON AREAS IN A
CONDOMINIUM?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
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Generally, titles to the common areas are held by a corporation formed for the
purpose. However, the condominium law also states that the common areas are
held in common by the unitholders, in equal share for each unit.
W H AT A R E M Y R I G H T S A S A
C O N D O M I N I U M U N I T O W N E R ?
Aside from those already mentioned, the only other right you have as a unit
owner is the right to renovate your unit, for as long as all renovations are done
within the boundaries of your unit. All restrictions on your rights and activities
are those that are stipulated in the declaration of restrictions or on the contract
you signed upon the turnover of the unit to you.

14.
I OWN A CONDOMINIUM BUILDING, AND I WANT TO AMEND OR REVOKE
THE MASTER DEED. MAY I DO SO WITHOUT RESERVATION?
President
• Chief Executive Officer • Chief Operations Officer • VP Marketing
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No. The Condominium Act states that you can only do this upon the registration of an instrument (a formal
legal document) executed by a simple majority of the registered owners of the property. In this case, a
simple majority could mean either of the two: a majority based on per-unit ownership or a majority based on
the floor area of ownership.
For condominiums used for either residential or commercial purposes, the former would apply, while if it is
for a mix of both purposes, it is the latter. This requirement also stipulates that the registered owners must
be notified in advance. Evidence of a vote of a simple majority must also be submitted to the HLURB.

15.
PREPARED BY:
VINZE JASON D. PECSON
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