TOPIC 5:THE CONDOMINIUM LAW
IN THE PHILIPPINES (R.A. 4726)
L AG A Z O | N A Z A R E N O | M U TO C | R E Y E S
CONDO CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Section 1.The short title of this Act shall be "The Condominium Act".
Section 2. A condominium is an interest in real property consisting of separate interest in a unit in a residential,
industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which
it is located and in other common areas of the building. A condominium may include, in addition, a separate
interest in other portions of such real property. 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 (hereinafter known as the
"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.
The real right in condominium may be ownership or any other interest in real property recognized by law, on
property in the Civil Code and other pertinent laws.
https://lawphil.net/statutes/repacts/ra1966/ra_4726_1966.html
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE CONDOMINIUM ACT", APPLIES TO
VARIOUS PARTIES INVOLVED IN CONDOMINIUM OWNERSHIP AND MANAGEMENT. LET'S
BREAK IT DOWN:
1. Developers and Builders:
- Developers and builders who create condominium projects are directly affected by RA 4726. They must
comply with the legal requirements for creating and dividing condominiums.
- They are responsible for drafting the enabling or master deed, which outlines the details of the project,
including unit descriptions, common areas, and facilities.
2. Unit Owners:
- Unit owners are individuals who purchase and own specific units within a condominium project.
- They have rights and responsibilities related to their individual units and shared common areas.
- Unit owners automatically become members or shareholders of the condominium corporation, if one exists.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE CONDOMINIUM ACT", APPLIES TO
VARIOUS PARTIES INVOLVED IN CONDOMINIUM OWNERSHIP AND MANAGEMENT. LET'S
BREAK IT DOWN:
3. Condominium Corporation:
- The condominium corporation is an entity that manages and maintains the common areas and facilities.
- It holds title to the common areas (including land) on behalf of all unit owners.
- Unit owners are part of this corporation and participate in decision-making processes.
4. Buyers and Prospective Owners:
- Anyone interested in purchasing a condominium unit should be aware of RA 4726.
- Buyers need to understand their rights, obligations, and the legal framework governing condominium
ownership.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE CONDOMINIUM ACT", APPLIES TO
VARIOUS PARTIES INVOLVED IN CONDOMINIUM OWNERSHIP AND MANAGEMENT. LET'S
BREAK IT DOWN:
5. Property Managers and Administrators:
- Property managers and administrators play a crucial role in maintaining and operating the condominium
project.
- They ensure that common areas are well-maintained and that services are provided to unit owners.
6. Lenders and Financial Institutions:
- Lenders and financial institutions that provide loans for condominium purchases need to consider the legal
aspects outlined in RA 4726.
- They may require certain documentation related to the condominium project before approving loans.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
KEY REQUIREMENTS FOR THE APPLICABILITY OF REPUBLIC ACT NO. 4726 (THE
CONDOMINIUM ACT) INCLUDE THE FOLLOWING:
1. Division of Property into Condominiums :
- The property must be divided or intended to be divided into separate condominium units.
- This division can be in residential, industrial, or commercial buildings.
2. Enabling or Master Deed :
- A developer or builder must create an enabling or master deed .
- The deed should include:
- A description of the land and building.
- Details about common areas and facilities.
- A statement of the interest acquired by purchasers in separate units and common areas.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
KEY REQUIREMENTS FOR THE APPLICABILITY OF REPUBLIC ACT NO. 4726 (THE
CONDOMINIUM ACT) INCLUDE THE FOLLOWING:
3. Compliance with Legal Procedures :
- Developers, unit owners, and other parties involved must comply with the legal procedures outlined in RA
4726.
- These procedures cover the creation, transfer, and management of condominiums.
4. Formation of Condominium Corporation (Optional) :
- If a condominium corporation is formed, it holds title to common areas on behalf of all unit owners.
- Unit owners automatically become members or shareholders of the corporation.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Republic Act No. 4726 , also known as "The Condominium Act" , does not apply to certain
situations. Let's explore the scenarios where this Act may not be applicable:
1. Existing Projects Over Fifty Years Old :
- If a condominium project has been in existence for more than fifty years and is considered obsolete and
uneconomical, the provisions of RA 4726 may not apply.
- Additionally, if more than fifty percent of the members of the condominium corporation (if non-stock) or
stockholders representing more than fifty percent of the capital stock (if a stock corporation) oppose repair,
restoration, remodeling, or modernizing of the project, the Act may not apply¹².
2. Properties Not Divided into Condominiums :
- RA 4726 specifically applies to properties that are divided or intended to be divided into condominiums.
- If a property does not meet this criterion, the Act would not be relevant.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Republic Act No. 4726 , also known as "The Condominium Act" , does not apply to certain
situations. Let's explore the scenarios where this Act may not be applicable:
3. Non-Compliance with Legal Procedures :
- If the enabling or master deed required by the Act is not properly recorded in the Register of Deeds, the
provisions of RA 4726 may not apply.
- Compliance with legal procedures is essential for the Act to be applicable¹.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
SALIENT FEATURES OF
RA 4726
REPUBLIC ACT NO. 4726 - AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS
CREATION, AND GOVERN ITS INCIDENTS.
RA 4726, ALSO KNOWN AS THE CONDOMINIUM ACT, IS A PHILIPPINE LAW THAT GOVERNS
CONDOMINIUM OWNERSHIP IN THE COUNTRY.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Salient features refer to the most prominent or important characteristics of something. In the
context of RA 4726, the salient features would denote the key aspects or provisions of the
Condominium Act that are significant and noteworthy for understanding its regulations on
condominium ownership in the Philippines.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
DEFINITION OF A CONDOMINIUM:
•
RA 4726 defines a condominium as an interest in real property consisting of:
o
o
o
A separate interest in a unit (residential, industrial, or commercial) within a
building.
An undivided interest (directly or indirectly) in the land on which the building is
located and the common areas of the building.
Optionally, a separate interest in other portions of the real property.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
ESTABLISHMENT AND REQUIREMENTS:
•
•
•
Enabling or Master Deed: This crucial document outlines the condominium project's details,
including:
o
Description of the land and building(s).
o
Designation of individual units and common areas.
o
Sharing proportions of common areas by each unit owner.
o
Management structure for the condominium corporation.
Registration: The enabling or master deed must be recorded in the Register of Deeds.
Condominium Corporation: A legal entity established to manage the common areas and assets of
the project. All unit owners are automatically members.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
OWNERSHIP AND RIGHTS:
•
Unit Ownership: Buyers acquire a title to their individual unit and a shared ownership interest in the common areas.
o
Two main types of ownership exist:
▪
▪
Freehold: Unit owner has full legal title to the unit and a share of common areas.
Leasehold: Unit owner purchases the right to occupy the unit for a predetermined period (typically 25-50
years).
•
Common Areas: These areas are jointly owned and used by all unit owners. Examples include hallways, lobbies,
swimming pools, gardens, and other amenities.
•
Rights and Responsibilities: The act defines the rights and responsibilities of unit owners, including:
o
Right to paint and decorate their unit's interior surfaces.
o
Right to vote in homeowners' association elections.
o
Obligation to pay homeowner association fees for maintenance and upkeep of common areas.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
MANAGEMENT AND GOVERNANCE:
•
•
Homeowners' Association (HOA): The HOA represents all unit owners and is responsible
for managing the common areas, maintaining the property, and collecting fees.
Election of Officers: The act outlines procedures for electing the HOA board of directors,
ensuring fair representation for all unit owners.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
ADDITIONAL FEATURES:
•
•
Sales and Marketing: While not explicitly outlined in RA 4726, PD 957 and its IRR
establish regulations for fair and transparent sales and marketing practices in
condominium developments.
Dispute Resolution: The act provides mechanisms for resolving disputes between
unit owners, the HOA, and the developer through mediation or arbitration processes.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Significance of Republic Act No. 4726
1. Promotion of Vertical Living:
> RA 4726 encourages the development of vertical housing solutions by allowing the creation of condominiums.
> This is especially relevant in densely populated urban areas where land space is limited, and vertical construction
becomes a practical solution.
II. Property Ownership and Rights:
> The law defines the legal framework for condominium ownership.
> It outlines the rights and responsibilities of individual unit owners and the condominium corporation.
> Unit owners have exclusive rights to their individual units while sharing common areas with other owners.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Significance of Republic Act No. 4726
III. Protection of Unit Owners:
> RA 4726 ensures that unit buyers are well-informed about their rights and obligations.
> Developers must provide detailed information about the project, including the master deed and the nature of
ownership.
> This transparency protects buyers from potential fraud or misrepresentation.
IV. Creation of Condominium Corporations:
> The law allows for the establishment of condominium corporations.
> These corporations manage common areas, enforce rules, and represent unit owners.
> Condominium corporations play a crucial role in maintaining the property and resolving disputes.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
Significance of Republic Act No. 4726
V. Economic Impact:
> The growth of the real estate industry, particularly in urban centers, is influenced by the availability of
condominiums.
>Developers invest in condominium projects, leading to economic activity, job creation, and revenue generation.
VI.Tourism and Investment:
> Condominiums attract foreign investors and expatriates looking for residential or investment properties.
> The law facilitates foreign ownership of condominium units, contributing to the country’s tourism and economy.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
ADDITIONAL CONSIDERATIONS FOR REPUBLIC ACT NO. 4726
1.DEVELOPER’S OBLIGATIONS:
1. Developers must provide accurate and complete information to potential buyers.
2. This includes details about the project, the master deed, and the nature of ownership.
3. Transparency ensures that buyers make informed decisions.
2.RIGHTS AND RESPONSIBILITIES OF UNIT OWNERS:
1. Unit owners have exclusive rights to their individual units.
2. They also share ownership of common areas with other unit owners.
3. Understanding these rights and responsibilities is crucial for harmonious living within the condominium community.
3.MAINTENANCE AND REPAIRS:
1. The law specifies the responsibilities for maintaining and repairing different parts of the property.
2. Common areas are typically managed by the condominium corporation.
3. Unit owners are responsible for maintaining their own units.
4.DISPUTE RESOLUTION:
1. RA 4726 provides mechanisms for resolving disputes among unit owners or between unit owners and the
condominium corporation.
2. Mediation, arbitration, or legal proceedings may be used to address conflicts.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
REPUBLIC ACT NO. 4726, ALSO KNOWN AS "THE
CONDOMINIUM ACT", WAS ENACTED ON JUNE 18, 1966.
ADDITIONAL CONSIDERATIONS FOR REPUBLIC ACT NO. 4726
5. FOREIGN OWNERSHIP:
1. The law allows foreigners to own condominium units in the Philippines.
2. However, foreign ownership is subject to certain limitations (e.g., not more than 40% of the total units in a project).
6. AMENDMENTS AND BY-LAWS:
1. Condominium corporations can create by-laws to govern the internal affairs of the community.
2. These by-laws cover matters such as use of common areas, conduct of meetings, and voting procedure.
7. CONVERSION OF EXISTING BUILDINGS:
1. RA 4726 permits the conversion of existing buildings into condominiums.
2. This process involves complying with legal requirements and obtaining necessary approvals.
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT