PRESIDENTIAL DECREE No.
1216
DEFINING "OPEN SPACE" IN RESIDENTIAL SUBDIVISIONS AND AMENDING SECTION
31 OF PRESIDENTIAL DECREE NO. 957 REQUIRING SUBDIVISION OWNERS TO
PROVIDE ROADS, ALLEYS, SIDEWALKS AND RESERVE OPEN SPACE FOR PARKS OR
RECREATIONAL USE
WHEREAS, there is a compelling need to create and maintain a healthy environment in
human settlements by providing open spaces, roads, alleys and sidewalks as may be
deemed suitable to enhance the quality of life of the residents therein;
WHEREAS, such open spaces, roads, alleys and sidewalks in residential subdivision are
for public use and are, therefore, beyond the commerce of men;
WHEREAS, pursuant to Presidential Decree No. 953 at least thirty percent (30%) of the
total area of a subdivision must be reserved, developed and maintained as open space
for parks and recreational areas, the cost of which will ultimately be borne by the lot
buyers which thereby increase the acquisition price of subdivision lots beyond the reach
of the common mass;
WHEREAS, thirty percent (30%) required open space can be reduced to a level that will
make the subdivision industry viable and the price of residential lots within the means
of the low income group and at the same time preserve the environmental and
ecological balance through rational control of land use and proper design of space and
facilities;
WHEREAS, pursuant to Presidential Decree No. 757, government efforts in housing,
including resources, functions and activities to maximize results have been
concentrated into one single agency, namely, the National Housing Authority;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue
of the powers vested in me by the Constitution, do hereby order and decree:
Section 1. For purposes of this Decree, the term "open space" shall mean an area
reserved exclusively for parks, playgrounds, recreational uses, schools, roads, places of
worship, hospitals, health centers, barangay centers and other similar facilities and
amenities.
Section 2. Section 31 of Presidential Decree No. 957 is hereby amended to read as
follows:
"Sec. 31. Roads, Alleys, Sidewalks and Open spaces. The owner as developer of a
subdivision shall provide adequate roads, alleys and sidewalks. For subdivision projects
one (1) hectare or more, the owner or developer shall reserve thirty percent (30%) of
the gross area for open space. such open space shall have the following standards
allocated exclusively for parks, playgrounds and recreational use:
(a) 9% of gross area for high density or social housing (66 to 100 family lot per gross
hectare).
(b) 7% of gross area for medium-density or economic housing (21 to 65 family lot per
gross hectare).
(c) 3.5 % of gross area low-density or open market housing (20 family lots and below
per gross hectare).
These areas reserved for parks, playgrounds and recreational use shall be non-
alienable public lands, and non-buildable. The plans of the subdivision project shall
include tree planting on such parts of the subdivision as may be designated by the
Authority.
Upon their completion as certified to by the Authority, 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.
Section 3. Sections 2 and 5 of Presidential Decree No. 953 are hereby repealed and
other laws, decrees, executive orders, institutions, rules and regulations or parts
thereof inconsistent with these provisions are also repealed or amended accordingly.
Section 4. This Decree shall take effect immediately.
DONE in the City of Manila, this 14th day of October, in the year of Our Lord, nineteen
hundred and seventy-seven.
ACT No. 3952
THE BULK SALES LAW (as amended)
AN ACT TO REGULATE THE SALE, TRANSFER, MORTGAGE OR ASSIGNMENT OF GOODS, WARES,
MERCHANDISE, PROVISIONS OR MATERIALS, IN BULK, AND PRESCRIBING PENALTIES FOR THE
VIOLATION OF THE PROVISIONS THEREOF
Section 1. This Act shall be known as "The Bulk Sales Law."
Sec. 2. Sale and transfer in bulk. — Any sale, transfer, mortgage or assignment of a stock of
goods, wares, merchandise, provisions, or materials otherwise than in the ordinary course of
trade and the regular prosecution of the business of the vendor, mortgagor, transferor, or
assignor, or sale, transfer, mortgage or assignment of all, or substantially all, of the business or
trade theretofore conducted by the vendor, mortgagor, transferor, or assignor, or of all, or
substantially all, of the fixtures and equipment used in and about the business of the vendor,
mortgagor, transferor, or assignor, shall be deemed to be a sale and transfer in bulk, in
contemplation of this Act: Provided, however, That if such vendor, mortgagor, transferor or
assignor, produces and delivers a written waiver of the provisions of this Act from his creditors
as shown by verified statements, then, and in that case, the provisions of this section shall not
apply.
Sec. 3. Statement of creditors. — It shall be the duty of every person who shall sell, mortgage,
transfer, or assign any stock of goods, wares, merchandise, provisions or materials in bulk, for
cash or on credit, before receiving from the vendee, mortgagee, or his, or its agent or
representative any part of the purchase price thereof, or any promissory note, memorandum,
or other evidence therefor, to deliver to such vendee, mortgagee, or agent, or if the vendee,
mortgagee, or agent be a corporation, then to the president, vice-president, treasurer,
secretary or manager of said corporation, or, if such vendee or mortgagee be a partnership
firm, then to a member thereof, a written statement, sworn to substantially as hereinafter
provided, of the names and addresses of all creditors to whom said vendor or mortgagor may
be indebted, together with the amount of indebtedness due or owing, or to become due or
owing by said vendor or mortgagor to each of said creditors, which statement shall be verified
by an oath to the following effect:
PHILIPPINE ISLANDS
PROVINCE OR CITY OF _________________}
Before me, the undersigned authority, personally appeared __________________ (vendor,
mortgagor, agent or representative, as the case may be), bearing cedula No. ____________
issued at ___________ on the day of _____________ who, by me being first duly sworn, upon
his oath, deposes and states that the foregoing statement contains the names of all of the
creditors of ________________ (vendor, or mortgagor) together with their addresses, and that
the amount set opposite each of said respective names, is the amount now due and owing, and
which shall become due and owing by _____________ (vendor or mortgagor) to such creditors,
and that there are no creditors holding claims due or which shall become due, for or on
account of goods, wares, merchandise, provisions or materials purchased upon credit or on
account of money borrowed, to carry on the business of which said goods, wares,
merchandise, provisions or materials are a part, other than as set forth in said statement.
______________________
Subscribed and sworn to before me this _______ day of ______, 19___, at ________
Sec. 4. Fraudulent and void sale, transfer or mortgage. — Whenever any person shall sell,
mortgage, transfer, or assign any stock of goods, wares, merchandise, provisions or materials,
in bulk, for cash or on credit, and shall receive any part of the purchase price, or any
promissory note, or other evidence of indebtedness for said purchase price or advance upon
mortgage, without having first delivered to the vendee or mortgagee or to his or its agent or
representative, the sworn statement provided for in section three hereof, and without applying
the purchase or mortgage money of the said property to the pro rata payment of the bona fide
claim or claims of the creditors of the vendor or mortgagor, as shown upon such sworn
statement, he shall be deemed to have violated this Act, and any such sale, transfer or
mortgage shall be fraudulent and void.
Sec. 5. Inventory. — It shall be the duty of every vendor, transferor, mortgagor, or assignor, at
least ten days before the sale, transfer or execution of a mortgage upon any stock of goods,
wares, merchandise, provisions or materials, in bulk, to make a full detailed inventory thereof
and to preserve the same showing the quantity and, so far as is possible with the exercise of
reasonable diligence, the cost price to the vendor, transferor, mortgagor or assignor of each
article to be included in the sale, transfer or mortgage, and notify every creditor whose name
and address is set forth in the verified statement of the vendor, transferor, mortgagor, or
assignor, at least ten days before transferring possession thereof, personally or by registered
mail, of the price, terms conditions of the sale, transfer, mortgage, or assignment.
Sec. 6. Any vendor, transferor, mortgagor or assignor of any stock of goods, wares,
merchandise, provisions or materials, in bulk, or any person acting for, or on behalf of any such
vendor, transferor, mortgagor, or assignor, who shall knowingly or willfully make, or deliver or
cause to be made or delivered, a statement, as provided for in section three hereof, which shall
not include the names of all such creditors, with the correct amount due and to become due to
each of them, or shall contain any false or untrue statement, shall be deemed to have violated
the provisions of this Act.
Sec. 7. It shall be unlawful for any person, firm or corporation, as owner of any stock of goods,
wares, merchandise, provisions or materials, in bulk, to transfer title to the same without
consideration or for a nominal consideration only.
Sec. 8. Nothing in this Act contained shall apply to executors, administrators, receivers,
assignees in insolvency, or public officers, acting under judicial process.
Sec. 9. The sworn statement containing the names and addresses of all creditors of the vendor
or mortgagor provided for in section three of this Act, shall be registered in the Bureau of
Commerce. For the registration of each such sworn statement a fee of five pesos shall be
charged to the vendor or mortgagor of the stock of goods, wares, merchandise, provisions or
materials, in bulk.
Sec. 10. The provisions of this Act shall be administered by the Director of the Bureau of
Commerce and Industry, who is hereby empowered, with the approval of the Department
Head, to prescribe and adopt from time to time such rules and regulations as may be deemed
necessary for the proper and efficient enforcement of the provisions of this Act.
Sec. 11. Any person violating any provision of this Act shall, upon conviction thereof, be
punished by imprisonment not less than six months, nor more than five years, or fined in sum
not exceeding five thousand pesos, or both such imprisonment and fine, in the discretion of the
court.
Sec. 12. This Act shall take effect on its approval.
Approved: 01 December 1972
REPUBLIC ACT No. 6552
AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS.
(Rep. Act No. 6552)
Section 1. This Act shall be known as the "Realty Installment Buyer Act."
Section 2. It is hereby declared a public policy to protect buyers of real estate on installment
payments against onerous and oppressive conditions.
Section 3. In all transactions or contracts involving the sale or financing of real estate on
installment payments, including residential condominium apartments but excluding industrial
lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight
hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine,
where the buyer has paid at least two years of installments, the buyer is entitled to the
following rights in case he defaults in the payment of succeeding installments:
(a) To pay, without additional interest, the unpaid installments due within the total grace
period earned by him which is hereby fixed at the rate of one month grace period for every one
year of installment payments made: Provided, That this right shall be exercised by the buyer
only once in every five years of the life of the contract and its extensions, if any.
(b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of
the payments on the property equivalent to fifty per cent of the total payments made, and,
after five years of installments, an additional five per cent every year but not to exceed ninety
per cent of the total payments made: Provided, That the actual cancellation of the contract
shall take place after thirty days from receipt by the buyer of the notice of cancellation or the
demand for rescission of the contract by a notarial act and upon full payment of the cash
surrender value to the buyer.
Down payments, deposits or options on the contract shall be included in the computation of
the total number of installment payments made.lawphi1™
Section 4. In case where less than two years of installments were paid, the seller shall give the
buyer a grace period of not less than sixty days from the date the installment became due.
If the buyer fails to pay the installments due at the expiration of the grace period, the seller
may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation
or the demand for rescission of the contract by a notarial act.
Section 5. Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the
same to another person or to reinstate the contract by updating the account during the grace
period and before actual cancellation of the contract. The deed of sale or assignment shall be
done by notarial act.
Section 6. The buyer shall have the right to pay in advance any installment or the full unpaid
balance of the purchase price any time without interest and to have such full payment of the
purchase price annotated in the certificate of title covering the property.
Section 7. Any stipulation in any contract hereafter entered into contrary to the provisions of
Sections 3, 4, 5 and 6, shall be null and void.
Section 8. If any provision of this Act is held invalid or unconstitutional, no other provision shall
be affected thereby.lawphi1™
Section 9. This Act shall take effect upon its approval.
Approved: August 26, 1972.
REPUBLIC ACT No. 4726 June 18, 1966
AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS CREATION, AND
GOVERN ITS INCIDENTS.
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.
Section 3. As used in this Act, unless the context otherwise requires:
(a) "Condominium" means a condominium as defined in the next preceding section.
(b) "Unit" means a 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.
(c) "Project" means the entire parcel of real property divided or to be divided in condominiums,
including all structures thereon,
(d) "Common areas" means the entire project excepting all units separately granted or held or
reserved.
(e) "To divide" real property means to divide the ownership thereof or other interest therein by
conveying one or more condominiums therein but less than the whole thereof.
Section 4. The provisions of this Act shall apply to property divided or to be divided into
condominiums only if there shall be recorded in the Register 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 or registered under either the Land Registration or Cadastral
Acts, an enabling or master deed which shall contain, among others, the following:
(a) Description of the land on which the building or buildings and improvements are or are to
be located;
(b) Description of the building or buildings, stating the number of stories and basements, the
number of units and their accessories, if any;
(c) Description of the common areas and facilities;
(d) 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;
(e) Statement of the purposes for which the building or buildings and each of the units are
intended or restricted as to use;
(f) 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;
(g) The following plans shall be appended to the deed as integral parts thereof:
(1) A survey plan of the land included in the project, unless a survey plan of the same property
had previously bee filed in said office;
(2) A diagrammatic floor plan of the building or buildings in the project, in sufficient detail to
identify each unit, its relative location and approximate dimensions;
(h) 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.£a⩊phi£
The enabling or master deed may be amended or revoked upon registration of an instrument
executed by the registered owner or owners of the property and consented to by all registered
holders of any lien or encumbrance on the land or building or portion thereof. The term
"registered owner" shall include the registered owners of condominiums in the project. Until
registration of a revocation, the provisions of this Act shall continue to apply to such property.
Section 5. Any 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:
Provided, however, That where the common areas in the condominium project are owned by
the owners of separate units as co-owners thereof, no condominium unit therein shall be
conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty
percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary
succession. Where the common areas in a condominium project are held by a corporation, no
transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant
membership or stockholding in the corporation will cause the alien interest in such corporation
to exceed the limits imposed by existing laws.
Section 6. Unless otherwise expressly provided in the enabling or master deed or the
declaration of restrictions, the incidents of a condominium grant are as follows:
(a) The 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.
(b) 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 the unit 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.
(c) Unless otherwise, provided, the common areas are held in common by the holders of units,
in equal shares, one for each unit.
(d) 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.
(e) 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.
(f) 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.
(g) 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;
Section 7. Except as provided in the following section, the common areas shall remain
undivided, and there shall be no judicial partition thereof.
Section 8. Where several persons own condominiums in a condominium project, an action may
be brought 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 their interests in the common areas: Provided, however, That a
partition shall be made only upon a showing:
(a) That three years after damage or destruction to the project which renders material part
thereof unit for its use prior thereto, the project has not been rebuilt or repaired substantially
to its state prior to its damage or destruction, or
(b) That damage or destruction to the project has rendered one-half or more of the units
therein untenantable and that condominium owners holding in aggregate more than thirty
percent interest in the common areas are opposed to repair or restoration of the project; or
(c) That the project has been in existence in excess of fifty years, that it is obsolete and
uneconomic, and that condominium owners holding in aggregate more than fifty percent
interest in the common areas are opposed to repair or restoration or remodeling or
modernizing of the project; or
(d) 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 percent interest in the common areas are opposed to continuation of the
condominium regime after expropriation or condemnation of a material portion thereof; or
(e) 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.
Section 9. 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 the project. 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.
The declaration of restrictions shall provide for the management of the project by anyone of
the following management bodies: a condominium corporation, an association of the
condominium owners, a board of governors elected by condominium owners, or a
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.
Such declaration of restrictions, among other things, may also provide:
(a) As to any such management body;
(1) For the powers thereof, including power to enforce the provisions of the declarations of
restrictions;
(2) 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 any management body;
(3) Provisions for maintenance, utility, gardening and other services benefiting the common
areas, for the employment of personnel necessary for the operation of the building, and legal,
accounting and other professional and technical services;
(4) For purchase of materials, supplies and the like needed by the common areas;
(5) 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 the common areas;
(6) For reconstruction of any portion or portions of any damage to or destruction of the
project;
(7) The manner for delegation of its powers;
(8) 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;
(9) 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.
(b) 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.
(c) For independent audit of the accounts of the management body;
(d) 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;
(e) For the subordination of the liens securing such assessments to other liens either generally
or specifically described;
(f) For conditions, other than those provided for in Sections eight and thirteen of this Act, upon
which partition of the project and dissolution of the condominium corporation may be made.
Such right to partition or dissolution may be conditioned upon failure of the condominium
owners to rebuild within a certain period or upon specified inadequacy of insurance proceeds,
or upon specified percentage of damage to the building, or upon a decision of an arbitrator, or
upon any other reasonable condition.
Section 10. Whenever the common areas in a condominium project are held by a condominium
corporation, such corporation shall constitute the management body of the project. The
corporate purposes of such a corporation shall be limited to the holding of the common areas,
either in ownership or any other interest in real property recognized by law, to the
management of the project, and to such other purposes as may be necessary, incidental or
convenient to the accomplishment of said purposes. 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 it is a stock or non-stock
corporation, shall not be transferable separately from the condominium unit of which it is an
appurtenance. When a member or stockholder ceases to own a unit in the project in which the
condominium corporation owns or holds the common areas, he shall automatically cease to be
a member or stockholder of the condominium corporation.
Section 11. The term of a condominium corporation shall be co-terminus with the duration of
the condominium project, the provisions of the Corporation Law to the contrary
notwithstanding.
Section 12. In 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. Such transfer or conveyance shall be deemed to be a full liquidation of the interest of
such members or stockholders in the corporation. After such transfer or conveyance, the
provisions of this Act governing undivided co-ownership of, or undivided interest in, the
common areas in condominium projects shall fully apply.
Section 13. Until 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 for dissolution under Rule 104 of the Rules of Court
except upon a showing:
(a) That three years after damage or destruction to the project in which the corporation owns
or holds the common areas, which damage 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 its damage or destruction; or
(b) That damage or destruction to the project has rendered one-half or more of the units
therein untenantable and that more than thirty percent of the members of the corporation, if
non-stock, or the shareholders representing more than thirty percent of the capital stock
entitled to vote, if a stock corporation, are opposed to the repair or reconstruction of the
project, or
(c) That the project has been in existence in excess of fifty years, that it is obsolete and
uneconomical, and that more than fifty percent of the members of the corporation, if non-
stock, or the stockholders representing more than fifty 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; or
(d) That the project or a 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 seventy
percent interest in the corporation, if non-stock, or the stockholders representing more than
seventy 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
(e) That the conditions for such a dissolution set forth in the declaration of restrictions of the
project in which the corporation owns of holds the common areas, have been met.
Section 14. The condominium corporation may also be dissolved by the affirmative vote of all
the stockholders or members thereof at a general or special meeting duly called for the
purpose: Provided, That all the requirements of Section sixty-two of the Corporation Law are
complied with.
Section 15. Unless otherwise provided for in the declaration of restrictions upon voluntary
dissolution of a condominium corporation in accordance with the provisions of Sections
thirteen and fourteen of this Act, the corporation shall be deemed to hold a power of attorney
from all the members or stockholders to sell and dispose of their separate interests in the
project and liquidation of the corporation shall be effected by a sale of the entire project as if
the corporation owned the whole thereof, subject to the rights of the corporate and of
individual condominium creditors.
Section 16. 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.
Section 17. Any provision of the Corporation Law to the contrary notwithstanding, the by-laws
of a condominium corporation shall provide that 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 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.
Section 18. Upon 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 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.
In cases of condominium projects registered under the provisions of the Spanish Mortgage Law
or Act 3344, as amended, the registration of the deed of conveyance of a condominium shall
be sufficient if the Register of Deeds shall keep the original or signed copy thereof, together
with the certificate of the management body of the project, and return a copy of the deed of
conveyance to the condominium owner duly acknowledge and stamped by the Register of
Deeds in the same manner as in the case of registration of conveyances of real property under
said laws.

Section 19. 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 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.
Section 20. An assessment upon any condominium made in accordance with a duly registered
declaration of restrictions shall be an obligation of the owner thereof at the time the
assessment is made. The amount of any such assessment plus any other charges thereon, such
as interest, costs (including attorney's fees) and penalties, as such may be provided for in the
declaration of restrictions, shall be and become a lien upon the condominium assessed when
the management body causes a notice of assessment to be registered with the Register of
Deeds of the city or province where such condominium project is located. The notice shall state
the amount of such assessment and such other charges thereon a may be authorized by the
declaration of restrictions, a description of the condominium, unit against which same has
been assessed, and the name of the registered owner thereof. Such notice shall be signed by
an authorized representative of the management body or as otherwise provided in the
declaration of restrictions. Upon payment of said assessment and charges or other satisfaction
thereof, the management body shall cause to be registered a release of the lien.
Such lien shall be superior to all other liens registered subsequent to the registration of said
notice of assessment except real property tax liens and except that the declaration of
restrictions may provide for the subordination thereof to any other liens and encumbrances.
Such liens may be enforced in the same manner provided for by law for the judicial or extra-
judicial foreclosure of mortgages of real property. Unless otherwise provided for in the
declaration of restrictions, the management body shall have power to bid at foreclosure sale.
The condominium owner shall have the same right of redemption as in cases of judicial or
extra-judicial foreclosure of mortgages.
Section 21. No labor performed or services or materials furnished with the consent of or at the
request of a condominium owner or his agent or his contractor or subcontractor, shall be the
basis of a lien against the condominium of any other condominium owner, unless such other
owners have expressly consented to or requested the performance of such labor or furnishing
of such materials or services. Such express consent shall be deemed to have been given by the
owner of any condominium in the case of emergency repairs of his condominium unit. Labor
performed or services or materials furnished for the common areas, if duly authorized by the
management body provided for in a declaration of restrictions governing the property, shall be
deemed to be performed or furnished with the express consent of each condominium owner.
The owner of any condominium may remove his condominium from a lien against two or more
condominiums or any part thereof by payment to the holder of the lien of the fraction of the
total sum secured by such lien which is attributable to his condominium unit.
Section 22. Unless otherwise provided for by the declaration of restrictions, the management
body, provided for herein, may acquire and hold, for the benefit of the condominium owners,
tangible and intangible personal property and may dispose of the same by sale or otherwise;
and the beneficial interest in such personal property shall be owned by the condominium
owners in the same proportion as their respective interests in the common areas. A transfer of
a condominium shall transfer to the transferee ownership of the transferor's beneficial interest
in such personal property.
Section 23. Where, in an action for partition of a condominium project or for the dissolution of
condominium corporation on the ground that the project or a material part thereof has been
condemned or expropriated, the Court finds that the conditions provided for in this Act or in
the declaration of restrictions have not been met, the Court may decree a reorganization of the
project, declaring which portion or portions of the project shall continue as a condominium
project, the owners thereof, and the respective rights of said remaining owners and the just
compensation, if any, that a condominium owner may be entitled to due to deprivation of his
property. Upon receipt of a copy of the decree, the Register of Deeds shall enter and annotate
the same on the pertinent certificate of title.
Section 24. Any deed, declaration or plan for a condominium project shall be liberally
construed to facilitate the operation of the project, and its provisions shall be presumed to be
independent and severable.
Section 25. 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.
Section 26. All Acts or parts of Acts in conflict or inconsistent with this Act are hereby amended
insofar as condominium and its incidents are concerned.
Section 27. This Act shall take effect upon its approval.
Approved: June 18, 1966
REPUBLIC ACT NO. 7899
REPUBLIC ACT NO. 7899 - AN ACT AMENDING SECTION FOUR AND SECTION SIXTEEN OF
REPUBLIC ACT NUMBERED FOUR THOUSAND SEVEN HUNDRED TWENTY-SIX, OTHERWISE
KNOWN AS "THE CONDOMINIUM ACT"
Section 1. Sec. 4, last paragraph of Republic Act No. 4726 is hereby amended as follows:
"Sec. 4. . . . .
"The enabling or master deed may be amended or revoked upon registration of an instrument
executed by a simple majority of the registered owners of the property: provided, that in a
condominium project exclusively for either residential or commercial, use, simple majority shall
be on a per unit of ownership basis and that in the case of mixed use, simple majority shall be
on a floor area of ownership basis: provided, further, that prior notifications to all registered
owners are done: and provided finally, that any amendment or revocation already decided by a
simple majority of all registered owners shall be submitted to the Housing and Land Use
Regulatory Board 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."
Sec. 2. Section 16 of the same Act is hereby amended to read as follows:
"Sec. 16. 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 a simple majority of the registered owners: provided, that
prior notifications to all registered owners are done: and provided further, that the
condominium corporation may expand or integrate the project with another upon the
affirmative vote of a simple majority of the registered owners, subject only to the final
approval of the Housing and Land Use Regulatory Board."

Sec. 3. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspaper of general circulation.

Approved: February 23, 1995