9 Condo & Other Real Estate Holdings

7/28/2019 9 Condo & Other Real Estate Holdings

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CondominiumS &

other real

estate

holdings

e-Global Order Corporation


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LAWSAND ISSUANCESRA 4726 (1966) "The CondominiumAct (An Act To Define Condominium,Establish Requirements For Its Creation, And

Govern Its Incidents)PD 957 (2001) Subdivision andCondominium Buyers ProtectiveDecree

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DEFINITIONOF CONDOMINIUMA condominium is an interest in real

property consisting of separate

interest in a unit in a residential,

industrial or commercial building andan undivided interest in common,

directly or indirectly, in the land on

which it is located and in other

common areas of the building. It may

include, in addition, a separateinterest in other portions of such real

property. Often called VERTICALSUBDIVISION.3


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RELEVANT TERMSUnit - Means a part of thecondominium project intended for any

type of independent use or

ownership, including one or morerooms 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.

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Common areas - Means the entireproject excepting all units separately

granted or held or reserved.

Appurtenance - An incidental right,privilege, etc., attached to some

thing and passing with it, as by

conveyance or sale

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APPLICATIONOF RA 4726The provisions of this Act shall apply

to property divided or to be divided

into condominiums only if an enabling

or master deed recorded in theRegister of Deeds of the province or

city in which the property lies, and

duly annotated in the corresponding

certificate of title of the land, if the

latter had been patented orregistered under either the Land

Registration or Cadastral Acts

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CONVERSIONOF EXISTINGSTRUCTURESTO CONDOMINIUMPROJECTSExisting structures may be converted

into condominium projects upon

proper application therefor with the

Board and compliance with therequirements of condominium laws

and these rules and standards.

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TITLEAND OWNERSHIPTitle to the common area, may be

held by a corporation specially

formed for the purpose in which the

holders of separate interest shallautomatically be members or

shareholders, to the exclusion of

others, in proportion to the

appurtenant interest of their

respective units in the commonareas.

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The interest in condominium may be

ownership or any other real interest

in real property recognized by the law

of property in the Civil Code andother pertinent laws.

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CONTENTSOF ENABLINGORMASTER DEEDDescription of the land on which the

building or buildings and

improvements are to be located;

Description of the building/s statingthe number of storeys and

basements, the number of units and

their accessories, if any;

Description of the common areas andfacilities;

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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 interest inthe common areas 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 unitsare intended or restricted as to use;

A diagrammatic floor plan of the building or

buildings each unit, its relative location and

approximate dimensions;

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AMENDMENTOR REVOCATIONOF MASTERDEED (RA 7899 amending Section 4, RA4726)The enabling or master deed may be

amended or revoked upon

registration of an instrument

executed by a simple majority of theregistered owners of the property:

Condominium project exclusively for

either residential or commercial use -

simple majority shall be on a per unit

of ownership basis

Mixed use - simple majority shall be

on a floor area of ownership basis

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Prior notifications to all registered

owners are done

Any amendment or revocation

already decided by a simple majorityof all registered owners shall be

submitted to the HLURB and the

city/municipal engineer for approval

before it can be registered

Until registration of a revocation, the

provisions of this Act shall continue

to apply to such property

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INCIDENTSOFACONDOMINIUMGRANT

Unless otherwise expressly provided

in the enabling or master deed or the

declaration of restrictions, the

incidents of a condominium grant areas follows:

The boundary of the unit granted are the

interior surfaces of the perimeter walls,

floors, ceilings, windows and doors thereof.

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Not part of the unit granted: 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 andshafts, 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.

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There shall pass with the unit, as an

appurtenance thereof, an exclusive

easement for the use of the air space

encompassed by the boundaries of the unit

as it exists at any particular time and as theunit may lawfully be altered or reconstructed

from time to time. Such easement shall be

automatically terminated in any air space

upon destruction of the unit as to render it

untenantable.

Unless otherwise provided, the common

areas are held in common by the holders of

units, in equal shares of one for each unit.

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A non-exclusive easement for ingress, egress

and support through the common areas is

appurtenant to each unit and the common

areas are subject to such easements.

Each condominium owner shall have theexclusive 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 theexclusive right to mortgage, pledge orencumber his condominium and to have thesame appraised independently of the other

condominium owner is personal to him.

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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 ownerswithin a reasonable period of time before the

same is offered to outside parties.

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DECLARATIONOF RESTRICTIONS

The owner of a project shall, prior to the

conveyance of any condominium therein, register

a declaration of restrictions relating to such

project, which restrictions shall constitute a lien

upon each condominium in the project, and shall

insure to and bind all condominium owners in theprojects.

Such liens, unless otherwise provided, may be

enforced by any condominium owner in the

project or by the management body of such

project.The Register of Deeds shall enter and annotate

the declaration of restrictions upon the certificate

of title covering the land included within the

project, if the land is patented or registered under

the Land Registration or Cadastral Acts.20


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TYPEOF MANAGEMENT BODIESThe declaration of restrictions shall provide

for the management of the project by anyone

of the following management bodies:

condominium corporation

association of the condominium owners

board of governors elected by condominium

owners, or

management agent elected by the owners

or by the board named in the declaration.

It shall also provide for voting majorities

quorums, notices, meeting date, and other

rules governing such body or bodies

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OTHER PROVISIONINDECLARATIONOF RESTRICTIONSSuch declaration of restrictions,

among other things, may also

provide:

The manner and procedure for amending

such restrictions: Provided, That the vote

of not less than a majority in interest of

the owners is obtained.

For independent audit of the accounts of

the management body;

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For reasonable assessments to meet

authorized expenditures, each

condominium unit to be assessed

separately for its share of such expenses

in proportion (unless otherwise provided)to its owners fractional interest in any

common areas;

For the subordination of the liens securing

such assessments to other liens either

generally or specifically described;As to any management body;

For the power thereof, including power to

enforce the provisions of the declarations

of restrictions;23


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For maintenance of insurance policies,

insuring condominium owners against

loss by fire, casualty, liability, workmen's

compensation and other insurable risks

and for bonding of the members of anymanagement body;

Provisions for maintenance, utility,

gardening and other services benefiting

the common areas, for the operation of

the building, and legal, accounting andother professional and technical services;

For purchase of materials, supplies and

the like needed by the common areas;

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For payment of taxes and special

assessments which would be a lien upon

the entire project or common areas, and

for discharge of any lien or encumbrance

levied against the entire project or thecommon areas;

For reconstruction of any portion or

portions of any damage to or destruction

of the project;

The manner for delegation of its powers;For entry by its officers and agents into

any unit when necessary in connection

with the maintenance or construction for

which such body is

responsible;25


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For a power of attorney to the

management body to sell the entire

project for the benefit of all of the owners

thereof when partition of the project may

be authorized under Section 8 of this Act,which said power shall be binding upon all

of the condominium owners regardless of

whether they assume the obligations of

the restrictions or not;

For conditions, other than those providedfor in Section 8 and 13 of the

Condominium Act, upon which partition of

the project and dissolution of the

condominium corporation may be made.

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Such right to partition or dissolution may

be conditioned upon failure of the

condominium owners to rebuild within a

certain period or upon specified

percentage of damage to the building, orupon a decision of an arbitrator, or upon

any other reasonable condition

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PARTITIONThe common areas shall remain undivided,

and there shall be no judicial partition

thereof.

Where several persons own condominium in

a condominium project, an action may bebrought by one or more such persons for

partition thereof by sale of the entire project,

as if the owners of all of the condominiums

in such project were co-owners of the entire

project in the same proportion as theirinterests in the common areas

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A partition shall be made onlyupon a showing:That 3 years after damage or destruction

to the project which renders a material

part thereof unfit for its use prior thereto,

the project has not been rebuilt or

repaired substantially to its state prior toits damage or destruction, or

That damage or destruction to the project

has rendered one-half or more of the units

therein untenantable and that

condominium owners holding in aggregatemore than thirty percent interest in the

common areas are opposed to repair or

restoration of the project; or

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That the project has been in existence in

excess of 50 years, that it is obsolete and

uneconomic, and that condominium

owners holding in aggregate more than

fifty percent interest in the common areasare opposed to repair or restoration or

remodelling or modernizing of the project;

or

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That the 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 seventy percentinterest in the common areas are opposed

to continuation of the condominium

regime after expropriation or

condemnation of a material portion

thereof; or

That the 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. 31


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TRANSFERORCONVEYANCE

Transfer or conveyance of a unit or

an apartment, office or store or other

space therein, 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:

Common areas held by the owners ofseparate units as co-owners thereofno condominium unit therein shall be

conveyed or transferred to persons

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Common areas held by a corporation -no transfer or conveyance of a unit

shall be valid if transfer of

membership or stockholding will

cause the alien interest to exceed

the limits imposed by existing laws.

(40%)

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CONDOMINIUM CORPORATIONWhenever the common areas in a

condominium project are held by a

condominium corporation, such

corporation shall constitute the

management body of the project.

Corporate purposes limited to the

holding of the common areas; either

in ownership or any other interest in

real property recognized by law, tothe management of the project, and

to such other purposes as may be

necessary, incidental or convenient

to the accomplishment of said34


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The articles of incorporation or by-

laws of the corporation shall not

contain any provision contrary to or

inconsistent with the provisions of

this Act, the enabling or master deed,

or the declaration of restrictions of

the project.

Membership in a condominium

corporation, regardless of whether itis a stock or non-stock corporation,

shall not be transferable separately

from the condominium unit of which

it is an appurtenance.35


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INVOLUNTARY DISSOLUTIONOFCONDOMINIUM CORPORATIONIn case of involuntary dissolution of a

condominium corporation for any of

the causes provided by law, the

common areas owned or held by the

corporation shall, by way of

liquidation, be transferred pro-

indiviso and in proportion to their

interest in the corporation to the

members or stockholders thereof,subject to the superior rights of the

corporation creditors.

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VOLUNTARY DISSOLUTIONOFCONDOMINIUM CORPORATIONUntil the enabling or the master deed of the

project in which the condominium

corporation owns or holds the common area

is revoked, the corporation shall not be

voluntarily dissolved through an action fordissolution under Rule 104 of the Rules of

Court except upon a showing:

That 3 years after damage or destruction

to the project in which the corporation

owns or holds the common areas, whichdamage or destruction renders a material

part thereof unfit for its use prior thereto,

the project has not been rebuilt or

repaired substantially to its state prior to

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That damage or destruction to the project has

rendered one-half or more of the units therein

untenantable and that more than 30% percent

of the members of the corporation, if non-

stock, or the shareholders representing more

than 30% percent of the capital stock entitledto vote, if a stock corporation, are opposed to

the repair or reconstruction of the project, or

That the project has been in existence in

excess of 50 years, that it is obsolete and

uneconomical, and that more than 50%

percent of the members of the corporation, if

non-stock, or the stockholders representing

more than 50 percent of the capital stock

entitled to vote, if a stock corporation, are

opposed to the repair or restoration or

remodeling or modernizing of the project; or40


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That the project or material part thereof has

been condemned or expropriated and that the

project is no longer viable, or that the

members holding in aggregate more than 70%

interest in the corporation if non-stock, or the

stockholders representing more than 70%percent of the capital stock entitled to vote, if

a stock corporation, are opposed to the

continuation of the condominium regime after

expropriation or condemnation of a material

portion thereof; or

That the conditions for such a dissolution set

forth in the declaration of restrictions of the

project in which the corporation owns or holds

the common areas, have been met.

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DISPOSITIONOF COMMON AREASRA 7899 amending Section 16, RA 4726A condominium corporation shall not, during

its existence, sell, exchange, lease or

otherwise dispose of the common areas

owned or held by it is in the condominiumproject unless authorized by the affirmative

vote of a simple majority of registered

owners; Provided, that prior notification to

all registered owners be done; Provided

further, that the condominium corporation

may expand or integrate the project with

another upon the affirmative vote of a simple

majority of registered owners, subject only

to the approval of the HLURB.

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In cases 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 2 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.45


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REGISTRATIONOF CONVEYANCEUpon registration of an instrument conveying

a condominium, the Register of Deeds shall,

upon payment of the proper fees, enter and

annotate the conveyance on the certificate

of title covering the land included within theproject 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 other

condominiums in the project.

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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" copyof 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. 47


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Where the enabling or master deed provides

that the land included within a condominium

project are to be owned in common by the

condominium owners therein, the Register of

Deeds may, at the request of all thecondominium 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.

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FarmlotSubdivision

EnP RODRIGO B. MALLONGA, CE, MBA, LLB, DPA

REALTOR / APPRAISER / CONSULTANT

REBL# XIII-ADN-001 RB REAL# XIII-ADN-001 RA RECL# XIII-ADN-001 RC


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Farmlot SubdivisionA planned community intended primarily for

intensive agricultural activities and secondarily

for housing

Planned community - consists of provision of basic

utilities, judicious allocation of areas, good layout

based on sound planning principles


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Vermiculturedepends on production

scale; may need initially 20 sq.m.

Agro-industrial activitieslimited to

backyard scaleRice mill maximum of 300 sq.m. & not less

than 1,000 meters away from another mill

Food processing/preservation shall be

within the buildable area


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Industrial Subdivision

EnP RODRIGO B. MALLONGA, CE,MBA,LLB, DPAREALTOR / APPRAISER / CONSULTANT

REBL# XIII-ADN-001 RB REAL# XIII-ADN-001 RA RECL# XIII-ADN-001 RC


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Laws & Issuances

EO 648 (Reorganizing the Human Settlements

Regulatory Commission)

Rules & Regulations on Industrial Subdivisions

HLURB Resolution R-498 (1992)Amending Rules & Regulations on Industrial

Subdivisions


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Definition of Terms

Industrial SubdivisionA tract of land partitioned into plots for sale or leaseto establishments engaged primarily in industrialproduction or services. Degree of development maybe limited to:

Provision of utilities and allocation of areas forindustrial buildings, facilities & amenities, or

Provision of the buildings, facilities & amenities

Industrial Estate (Park)A form of an industrial subdivision characterized by:

1. Development according a comprehensive plan;2. Continuing management of the entire area is leftto a single controlling body;

3. Screening of industries is done prior todevelopment


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Industrial Plot or Factory Plot or PlotAn allocated lot within the industrial subdivision intendedfor industrial or factory use and where such industry orfactory is located

Plot Buyer/ Lessee

Shall mean any individual, group, or entity who hasexpressed intention of purchasing/leasing a plot(s)through the payment of at least an initial fee (downpayment) and first regular payment/ amortization to theowners in terms and conditions agreed upon by bothparties

A plot buyer or lessee shall be taken to mean oneregardless of the number of plots he has purchased/ leased

Industrial UseShall mean a land use/ land activity that is principallyengaged in industrial production or services


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MEMORIAL PARKS

Photos


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Design Standards andGuidelinesMemorials parks shall conform with

Land use plan or zoning ordinance of thelocality having jurisdiction over the projectsite

Pertinent provisions of the Sanitation Code

Water Code,

National Building Code of the Philippines and itsreferral codes, like the Accessibility Law,Plumbing Code, Electrical Code, etc. and

other applicable laws and rules affecting relatedservices and

Design standards set by HLURB


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Burial Plot SizesGround Interment- Minimum size shall be

1.00 meter by 2.50 meters inside dimensions

Mausoleum - Minimum plot size of 4.00

meters by 5.00 meters.

Provisions for ossuary and cinerarium shall meet the

minimum dimensions for cineraria - which is 300 mm

x 300 mm x 600 mm (National Building Code)

Ossuary - a container or receptacle,

such as an urn or a vault, for holding thebones of the dead

Cinerarium - a place where the

cremated remains of the dead are stored


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COLUMBARIUMNICHES


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COLUMBARIUMNICHES

URNS


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ColumbariumA structure, either freestanding

or part of another building,

containing niches for the

inurnment of cremated human

remains


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Applicable Rules &


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pp cab e u es &

Regulations

Article IV, Section 5 (a), (c) and (r) of

Executive Order 648

Section 9.2A.2.3 of the Rules and Regulations

for Memorial Parks and Cemeteries (HLURB

HLURB Resolution No. 681, Series of 2000)

HLURB HLURB Resolution No. 797, Series of

2007


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A buyer of a subdivision lot on installment and after sufficientnotice to the developer discontinued paying amortization

because the developer failed to develop the subdivision as

certified by the HLURB in such a situation and under P.D. 957,

the buyer is entitled to a refund which would be:

a. Total payment made less penalty charges.

b. Total payments made less penalty and interest charges.

c. Total payments made less penalty charges plus interest on

total payment.

d. Total payments including penalty charges

e. None of the above.

c. Total payments made less penalty charges plus interest

on total payment.


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The minimum carriage way of major roads of

socialized housing project under the

implementing rules and regulations of BP 220

and PD 957 is:

a. 5 metersb. 6 meters

c. 7 meters

d. 8 meters

e. 10 meters

d. 8 meters


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The term of a condominium corporation is:

a. Fifty years

b. Twenty-five years

c. Co-terminus with duration of condominium

project

d. Subject to agreement between thecondominium corporation and the unit owners

c. Co-terminus with duration of condominium

project


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The area reserved for roads, alleys and openspaces in a subdivision project with an area of

one hectare or more is:

a.20% of gross areab.25% of gross area

c.30% of gross area

d.35% of gross area

e.None of the above

c. 30% of gross area


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102

For a space to be considered a condominium unit, itmust:

a. be encompassed by interior surface of walls,

floors and ceilings

b. be managed by a condominium corporation

c. be susceptible of independent use and

ownership

d. be unencumbered by any restriction

c. be susceptible of independent use and

ownership


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105

Amendment to the master deed of acondominium project approved by majority ofregistered owners also need to be approvedby the city engineer and:

a. Local governmentb. Housing and Urban Development

Coordinating Council

c. Housing and Land Use Regulatory Board

d. Land Registration Authority

c. Housing and Land Use Regulatory Board


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106

Under DILG Memorandum Order No. 15-2002, the time frame for processing and

action on applications for approval of

subdivision plan is:

a.15 days

b.30 days

c.45 days

d.60 days

b. 30 days


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A subdivision plan needs only the approval ofthe Land Registration or Land Management

Bureau to effect segregation of titles when the

resulting number of lot is

a.Nine (9) or less

b.Ten (10) or less

c.Twelve (12) or less

d.Fifteen (15) or less

a. Nine (9) or less


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Documents

9 Condo & Other Real Estate Holdings