LEGAL BASIS OF

CONDOMINIUMS &
CONDOMINIUM PLAN (2A)

DR. ANA LIZA “PINKY” ASIS-CASTRO, REC, REB

HANDBOOK OF COMPILED KNOWLEDGE FOR
CONDOMINIUM CONCEPT AND OTHER SPECIALIZED DEVELOPMENT

DO NOT COPY / CIRCULATE / SHARE WITHOUT

THE EXPRESS PERMISSION OF
DR. ANA LIZA ASIS-CASTRO
Page 1 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

Table of Contents
1. MODULE OVERVIEW ............................................................................................. 2
1.1. Learning Outcomes ............................................................................................ 2
2. LEGAL BASIS OF CONDOMINIUM OWNERSHIP IN THE PHILIPPINES ............. 2
2.1 Republic Act No. 4726, June 18, 1966 ............................................................... 2
2.2 Requirements to convert land to a condominium project ................................... 2
3 REQUIRED DOCUMENTS IN A CONDOMINIUM DEVELOPMENT AND
MARKETING .................................................................................................................. 2
4 DOCUMENTARY REQUIREMENTS FOR CONDOMINIUM PROJECTS ............... 3
5 CONTENT OF MASTER DEED ............................................................................... 4
6 CONTENT OF DECLARATION OF RESTRICTIONS ............................................. 5
7 GENERAL STEPS IN CONDOMINIUM DEVELOPMENT ....................................... 5
8 APPROVAL OF CONDOMINIUM PLAN ................................................................. 6
REFERENCES ................................................................................................................ 8
Page 2 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

1. MODULE OVERVIEW

1.1. Learning Outcomes

Discuss the types of condominiums and the opportunities and problems that
condominium developers face during the planning an designing stages.

2. LEGAL BASIS OF CONDOMINIUM OWNERSHIP IN THE PHILIPPINES

2.1 Republic Act No. 4726, June 18, 1966

1) Short title: “The Condominium Act”

2) Long title: AN ACT TO DEFINE CONDOMINIUM ESTABLISHING

REQUIREMENTS FOR ITS CREATION, AND GOVERN ITS
INCIDENTS

2.2 Requirements to convert land to a condominium project

(Section 4. R.A. 4276)

2.2.1 The property divided or to be divided into condominiums is recorded

with the Registry of Deeds where the property lies and is duly
annotated in the certificate title of the land.

2.2.2 There is an enabling or master deed registered also with the Registry
of Deeds.

3 REQUIRED DOCUMENTS IN A CONDOMINIUM DEVELOPMENT AND

MARKETING

3.1 Master Deed

3.2 Deed of Restrictions
3.3 Condominium Corporation documents
• Articles of Incorporation
• By-laws
• Deed of Assignment of land in favor of the Condominium Corporation
Page 3 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

3.4 Sales and Marketing documents

• Reservation Agreement
• Contact to Sell
• Deed of Absolute Sale
• Buyer’s Condominium Unit Acceptance
• Survey plan of the land of the project
• Diagrammatic floor plan of the building or buildings in the project, in sufficient
detail to identify each unit, its relative location and approximate dimensions

4 DOCUMENTARY REQUIREMENTS FOR CONDOMINIUM PROJECTS

The following documentary requirements are for the ISSUANCE OF A CERTIFICATE

OF REGISTRATION (CR) AND LICENSE TO SELL (LS) SUBDIVISION/
CONDOMINIUM PROJECTS AND OTER REAL ESTATE PROJECTS (DHSUD,
Developer Documentary Requirements, 2022)

Note: the application for a License to Sell for condominium projects is submitted to
the Department of Human Settlements and Urban Development (DHSUD).

A. Sworn Registration Statement

B. Certified True Copy of TCT or Original Certificate of Title (OCT) duly stamped with
original marking “Certified True Copy” by the proper Register of Deeds and bearing
its seal or security marker.
C. Duly audited Balance Sheet
D. Articles of Incorporation, By-laws and latest annual corporate report to SEC
E. A copy of any circular, prospectus, brochures, advertisement or communication
used/to be used for public offering of subject project and for circulation upon
approval by the Department.
F. Sample copy of Contract to Sell
G. Certified true copy of Environmental Compliance Certificate (ECC)/ Certificate of
Non-Coverage (CNC)
H. Zoning Certificate from Department.
I. Certified true copy of DAR Conversion Order/ Exemption Clearance
J. Electrical Plan and Specifications
K. Permit to operate a deepwell/ water potability test results
L. Project Study
Page 4 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

M. Program of development (bar chart with S-curve, Gannt chart/ PERT-CPM, etc.)
signed and sealed by license engineer of architect indicating work activities,
duration and costing.
N. Affidavit of Understanding to submit titles to the Department.
FOR CONDOMINIUM PROJECT
O. Duly accomplished and notarized fact sheet.
P. Master Deed with Declaration of Registration and Declaration of Restrictions
evidenced by the proper annotation thereof in the title(s) of the property and the
certified true copy of such title(s) from the Register of Deeds.
Q. Building Permit
IF PROPERTY IS/ARE CURRENTLY MORTGAGED
W. Mortgagee Undertaking (DHSUD Form No. ____)
X. Mortgage or Undertaking (DHSUD Form No. ___)

5 CONTENT OF MASTER DEED

(Philippine R.A. 4726, Condominium Act, 1966)

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 owned of the property, if he is other than those
executive 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:
5.1.1 A survey plan of the land included in the project, unless a survey plan
of the same property had previously been filed;
Page 5 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

5.1.2 A diagrammatic floor plan of the building or buildings in the project,

in sufficient detail to identity each unit, its relative location and
approximate dimensions
h) Any reasonable restrictions not contrary to law, morals or public policy regarding
the right of any condominium owner to alienate or dispose of his condominium.

6 CONTENT OF DECLARATION OF RESTRICTIONS

a. Management body
b. Vote of not less than a majority in interest of the owners as a procedure to amend
the restriction
c. Independent audit of the accounts of the management body
d. Reasonable assessment to meet authorized expenditures wherein each
condominium unit to be assessed separately for its share of the expenses in
proportion (unless otherwise provided) to its owners fractional interest in any
common areas
e. For 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 8 and 13 of the Act upon
which partition of the project and dissolution of the condominium corporation may
be made. 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.

7 GENERAL STEPS IN CONDOMINIUM DEVELOPMENT

1. Secure the ownership of land title and agreement of registered owner to the master
deed.
2. Prepare building plans
3. Execution and registration of master deed
4. Organization of a non-stock, non-profit condominium corporation
5. Execution of a deed of conveyance transferring land title to the condominium
corporation
6. Submission of building plans to the Assessor’s Office to obtain individual tax
declarations for the condominium units and common areas
Page 6 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

7. Application for registration and license to sell with DSHUD

8. Secure individual condominium certificate of titles from the Registry of Deeds

8 APPROVAL OF CONDOMINIUM PLAN

(DHSUD, RIRR PD 957, 2009, pp. 40, Section 6)
Any registered owner or developer of a parcel of land who wishes to develop the
same into a condominium project shall apply with the Board by filing the following:
a. At least 2 sets of Condominium Plan at any the following scales: 1:200; 1:400 or
any scale not exceeding 1:400 duly signed and sealed by a licensed architect:
1. Site development plan to include parking and parks and playground
layout, if applicable.
2. Floor plan(s)
3. Section and elevation
b. At least 2 copies of vicinity map indicating the adjoining land uses, access, as
well as existing facilities and utilities at least within 500 meters from the property
boundaries of the project drawn to scale and duly signed and sealed by a
licensed geodetic engineer.
c. Building specifications and estimated cost.
d. Zoning Certificate from HLURB Regional Office
e. Certified true copy of DAR conversion order
f. Certified true copy of Environmental Clearance Certificate (ECC) or Certificate of
Non-coverage (CNC) duly issued by the DENR, whichever is applicable
g. Certified true copy of title(s) and current tax receipt.
h. Right to use or deed of sale of right-of-way for access road and other utilities
when applicable.
i. One (1) copy of project study to include the following:
1. Project profile indicating among others, the development cost, total project
cost, amortization schedules, sources of financing, marketability, cash
flow, architectural building plans and work program/project time table;
2. Audited financial statement for the last 3 preceding years;
3. Income tax return for the last 3 preceding years;
4. Certificate of registration from Securities and Exchange Commission
(SEC);
5. Articles of incorporation or partnership;
6. Corporation by-laws and all implementing amendments, and
7. For new corporation (3 years and below) statement of capitalization and
sources of income and cash flow to support work program.
Page 7 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

j. Permit to drill from NWRB or certificate of coverage from concerned local

franchise holder.
k. Copy of the special/temporary permit from the Professional Regulation
Commission (PRC) and of the separate permit from the Department of Labor and
Employment (DOLE) for foreign architects who signed on plans required under
the Implementing Rules and Regulation of PD 957. (per Board Res No. 839,
series of 2009)
l. List of names of duly licensed professionals who signed the plans and other
similar documents in connection with application filed indicating the following
information;
1. Surname
2. First name
3. Middle name
4. Maiden name, in case of married women professiona;
5. Professional licensed number, date of issue and expiration of its validity;
and
6. Professional tax receipt and date of issue.
7. Taxpayer’s Identification Number (TIN)

If the establishment of the condominium project is physically feasible and does not
run counter to the approved Comprehensive Land Use Plan and Zoning Ordinance
of the city or municipality and the plan complies with these Rules, the condominium
plan shall be approved and a development permit shall be issued upon payment
of the prescribed processing fee.

A development permit shall only be valid for a period of 3 years from date of
issuance if no physical development is introduced.

If project has been issued a development permit, a locational clearance is deemed

incorporated therein.

The owner or developer shall submit the condominium plan in accordance with the
requirements of the National Building Code to the building official of the city or
municipality where the property lies and the same shall be acted upon subject to
the conditions and in accordance with the procedure prescribed in Section 4 of the
Condominium Act (R.A. No. 4726).
Page 8 of 8
Faculty: Dr. Ana Liza Asis-Castro, REC, REB
Handbook of compiled knowledge for Condominium Concept and Other Specialized Development
Module 2: Legal Bases of Condominiums & Condominium Plan (2a)

REFERENCES

DHSUD, Developer Documentary Requirements. (2022). Department of Human

Settlements and Urban Development. Retrieved August 17, 2022, from
Developer, Documentary Requirements:
https://dhsud.gov.ph/services/developer/
DHSUD, RIRR PD 957. (2009). Department of Human Settlements and Urban
Development. Retrieved from Revised Implementing Rules and Regulations PD
957: https://dhsud.gov.ph/wp-
content/uploads/Laws_Issuances/02_IRR/IRRPD957.pdf
Philippine R.A. 4726, Condominium Act. (1966, June 18). The LAWPHIL Project.
Retrieved August 13, 2022, from Republic Act No. 4726 June 18, 1966:
https://lawphil.net/statutes/repacts/ra1966/ra_4726_1966.html