CONDOMINIUM CONCEPTS

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1. The governing law for the protection of buyers who are buying residential condominium units on
installment basis is referred to as
ANSWER: PD 957 - Subdivision and Condominium Buyers' Protective Decree

2. Absent any provision in the Master Deed, the share of unit owners in the common areas shall be
ANSWER: Equal share

3. In general, it is not considered part of the Master Deed of a condominium project

a. Land on where the project is located
b. Number of buildings and stories per building
c. Provision for Management body of the project
d. Extent of share in the common areas

4. The condominium corporation has a term of existence under the law for a period up to
ANSWER: Coterminus with the life of the project

5. Ownership of foreigners in a townhouse project located in the city is limited to 40% of the unit.

6. Condominium Certificate of Title - As proof of ownership of a condominium unit, the owner would
have this best proof.

7. Condominium unit - It is regarded as an interest in real property consisting of a separate interest in a

unit in a building and an undivided interest in common in the land on which it is located and in other
common areas.

8. The following is NOT used as a measure of the interest in the common area by a condo unit owner
a. Equal share
b. Based on Floor area of their unit
c. Based on value of their unit
d. Based on the number of bedrooms per unit

9. The following is NOT part of the Master Deed of a condominium project

a. Amenities and facilities per condo building
b. Number of buildings and stories per building
c. Condominium house rules and regulations
d. Extent of share in the common areas

10. The condominium corporation formation is required in case at least one foreigner owns a unit.

11. Ownership of Filipinos in a residential condominium project, if based on number of units, is limited
to a minimum of 60% of the units.

12. As owner of a condominium unit, the owner would be liable to pay real estate taxes on his unit.
13. The condominium corporation may also be dissolved in a general or special meeting duly called for
the purpose by affirmative vote of simple majority of the condominium members (50% + 1).

14. It is referred to as the space encompassed by the interior surface of the floor, ceiling, walls, and
exterior doors and windows, which is susceptible of independent use and ownership.
ANSWER: Condominium unit

15. If one wanted to find out what his interest or share is in the common areas, it may be found in this
document.
ANSWER: Master Deed

16. A condominium corporation is important as it will be the management body of the condominium
project and more importantly, will also
a. Collect the dues from the unit owners
b. Hold title to the land of the condominium project
c. Pay for the realty taxes of the unit owner
d. Pay for the insurance of the separate units

17. A unit owner does NOT have the following right as a condominium unit owner
a. To lease the unit
b. To pay for share in insurance of the condo project
c. To sell the condominium unit
d. To mortgage his own unit

18. The ABC Condo Residences, a mixed-use condo project, wanted to amend the master deed. In such
case the majority vote shall be based on
ANSWER: Per unit floor area

19. Mr. Rodman owned a unit in the Triple Tower. He can sell the unit to anybody unless there is
ANSWER: Provision for right of first refusal

20. If a unit owner has unpaid assessments, the notice of assessment will be considered a lien on the
condominium unit if
ANSWER: A notice of assessment is registered with the Register of Deeds

21. It refers to the weight bearing walls, columns and beams, stairways, halls, elevators, etc. including
the electrical, water and plumbing systems and amenities in a condominium project.
ANSWER: Common areas

22. A buyer failed to pay his installment payments after paying 4 years for a 1-bedroom residential
condominium unit on a 10 year installment payment. What will be his percentage refund under the
Maceda law (RA 6552).
ANSWER: 50% (up to 5 years, then +5% for every additional year; max. 90%)

23. Allison sold his 1-bedroom condo unit to a buyer. To register the sale, he must get from the
condominium corporation this document.
ANSWER: Certificate of management
24. In buying a condominium unit, it is highly recommended that the buyer get this most important
document to have full knowledge of the project.
ANSWER: Master Deed

25. A part of the condominium project which are not subject to the exclusive use of any one or group of
owners.
a. Common areas
b. General common area
c. Limited common areas
d. Divided common area

26. These are areas allocated to the exclusive use of a condominium unit owner like a parking space.
ANSWER: Limited common area

27. Once a buyer is now the owner of a condominium unit, the law more appropriate covering his
ownership and rights as a unit owner is
a. The Condominium Act – RA 4726
b. Subdivision and Condominium Buyers' Protective Decree – PD 957
c. The Realty Installment Buyer's Protective Act – RA 6552
d. Property Registration Decree – PD 1529

28. A condominium corporation must be organized for the condominium project if units will be sold to
foreigners.

29. In case of any amendment, the approved amendment of the condominium in Baguio City shall be
submitted for approval to the HLURB and the
ANSWER: city engineer

30. A partition by sale may be made provided that damage or destruction to the project has
rendered one-half or more of the units therein untenantable and that condominium owners with
common interest are opposed to repair is more than
ANSWER: 30% in the common area

31. The condominium corporation may be dissolved if the project has been in existence in excess of 50
years, that it is obsolete and that members of the corporation are opposed to the repair or
restoration or remodeling or modernizing of the project to the extent of more than
ANSWER: 50% of the members

32. A residential condominium corporation shall not during its existence, sell or otherwise dispose of
the common areas owned or held by it in the condominium project unless authorized by the
affirmative vote of a
ANSWER: Simple majority of the registered owners

33. An obligation to the condominium corporation of a unit owner

a. Comply with use restrictions c. Repair the unit
b. Sell the unit d. Pay the realty taxes on his unit
34. Louie bought a 2 BR condo unit but after 4 years, the project has not been completed beyond
completion date. He may ask for a refund of the total amount paid including
ANSWER: amortization interests but excluding delinquency interests, with interest thereon at the
legal rate

35. The condominium corporation may integrate the project with another upon the affirmative vote of
a simple majority of the registered owners, subject only to the final approval of
ANSWER: HLURB (now DHSUD)

36. The HLURB may issue a temporary license to sell to a condominium developer which will be valid
for six (6) months.

37. For a farmlot subdivision, the minimum lot area for a farmlot is 1000 sq. m. (old – 750 sq. m.)

38. Mr. Calix bought a farmlot in Batangas where he intends to retire. He may only build on the lot up
to a maximum of what percentage of the total lot.
ANSWER: 25% (restriction on buildable area)

39. It is a stock corporation established under the Corporation Code of the Philippines and those
promulgated by the Commission principally for the purpose of owning income-generating real estate
assets.
ANSWER: REIT – Real Estate Investment Trust

40. Under the REIT law, a "Constitutive Document" means Articles of Incorporation of the REIT.

41. It refers to the person responsible for the allocation of the deposited property to the allowable
investment outlets and selection of income-generating real estate for the REIT.
ANSWER: Fund manager

42. Under the REIT, it refers to a professional administrator of real properties who is engaged by the
RElT to provide property management services, lease management services, marketing services,
project management services, including rent collection.
ANSWER: Property manager

43. A REIT must distribute annually to its shareholders its distributable income to the extent of at least
90%.

44. A REIT which owns land can only have foreign ownership up to 40%.

45. Under the REIT law, a REIT must be a public company and to be considered as such, a REIT must
have at least how many public shareholders 1,000.

46. In order for the investor group of Mr. Ang to form a REIT, it must have a minimum paid-up capital of
P300,000,000.00 (cash or property)

47. Income payments to a REIT, for example, rentals, shall be subject to a lower creditable withholding
tax of 1%.
48. The fund manager of the REIT must have a minimum paid-up capital stock or assigned capital of
P10,000,000.00. ( but in the IRR – P100 Million)

49. Cash or property dividends paid by a REIT shall be subject to a final tax of 10%.

50. Mario wanted to invest in the REIT and he may make an investment in the REIT by way of
subscription to shares of stock.

51. A developer wants to build townhouses but would like to build a condominium project instead.
Such development would be called
ANSWER: Townhouse project

52. The rights of a buyer of a condominium unit, when he fails to pay the monthly installments under
the contract to sell shall be governed by
ANSWER: RA 6552 - Realty Installment Buyer Act (Maceda Law)

53. The Master Deed of a mixed-use condominium would not include the following provision
a. Land on which it is built
b. Extent of common area interest
c. Provision for maintenance and insurance
d. Number of buildings to be built

54. In case of a buyer on financing of a residential condominium unit who now owns the unit, the
primary law that the buyer must refer to as owner should be
ANSWER: Condominium Act – RA 4726

55. A person who buys two 1-bedroom condominium units adjacent to each other within a 12-month
period this year shall be subject to VAT if the total exceeds
ANSWER: P 3,199,200 (for "other residential dwellings"); (P 2.5 M - old threshold)

56. It is issued by the HLURB in order that the developer of a condominium project may start selling
units, pending other requirements and to assess the market viability of the project.
ANSWER: Temporary license to sell

57. For a farmlot subdivision, a farmlot should have a minimum size of 1,000 sq. m. The maximum
buildable area on a farmlot as per HLURB rules and regulations shall not exceed 25%.

58. A structure, either freestanding or part of another building, containing niches for the inurnment of
cremated human remains columbarium.

59. Conrad wanted to stop payment of his monthly amortizations for a studio condo unit since the
project has not been completed but it is required that he must
ANSWER: Give due notice to the developer

60. A condo unit owner does not have the following right
a. To lease out his unit
b. To paint the exterior walls of the unit
c. Exclusive easement of the air in the unit
d. Use of the common areas
61. When it is provided that the unit to be sold must first be offered to the existing unit owners, it is
referred to as right of first refusal.

62. Cremains - The ashes resulting from the cremation of a dead body.

63. Inurement - It means the placing of cremated remains in an urn in a columbarium.

64. Ossuary- means an interment space for the bones of the deceased.

65. Perpetual care fund - an amount collected by the developer of a columbarium project for the
maintenance and upkeep of the project separate from the contract.

66. The minimum burial plot size for ground interment as per HLURB rules is 1 meter by 2.44 meters.

67. The minimum plot size for a mausoleum under the rules for memorial parks is 4m. by 5 m.

68. Per HLURB Administrative Order No. 2, Series of 1992, the minimum plot size for an industrial
estate is 500 sq. m.

69. An allocated lot in an industrial subdivision is also referred to as factory plot.

70. Right of ownership - is the legal right to the possession of a thing. Ownership also includes rights
allowing a person to use and enjoy certain property (physical or intellectual). It includes the right to
convey it to others. It can also be the state or fact of being an owner.