BULKSALESLA W 1. P u r p o s e : m e a n t t o p r o t e c t c r e d i t o r s o f businessmen against preferential or fraudulent transfers 2.

The law covers all transactions, whether done in good faith or not, or whether or not the seller is in a state of insolvency , that fall within the description of what is a “bulk sale” 3. Types of transactions which are treated as “bulk sales”: a. S a l e , t r a n s f e r , m o r t g a g e o r a s s i g n m e n t s of a stock of goods, wares, merchandise, provisions, or materials otherwise than in the ordinary course of trade; b. S a l e t r a n s f e r , m o r t g a g e o r a s s i g n m e n t s o f a l l , o r substantially all, of the business of the vendor, mortgagor, transferor, or assignor; c. Sale, transfer, mortgage, or assignment of all, or substantially all, of the fixtures and equipment used in the business of the vendor, mortgagor, transferor, or assignor. 4. Only creditors at the time of the sale in violation of the law are within the protection of the laws and creditors subsequent to the sale are not covered. 5. Even if the transaction falls within the definition of “bulk sale”, the following are not deemed covered by the law: a.If the vendor, mortgagor, transferor or assignor produces and delivers a written waiver of the provisions of the law from his creditors as shown by verified statements; b.The law does not apply to executors, administrators, receivers, assignees in insolvency, or public officers, acting under process.

merchandise. no criminal liability on the seller. c. Consequences of Violation of Requirements under #6 above stated: a. as amended. The seller. The vendor must apply the purchase money to the pro-rata payment of bonafide claims of the creditors as shown in the verified statement. b. When 6(b) above is not complied with. c. Obligations when transaction is a bulk sale: a. . the sale is not void.6. Condominium Act Of The Philippines Republic Act no. the sale itself is void.amount of indebtedness due or owing to each of said creditors b. lays down the requirements for the creation of condominiums and provides for the incidents that operate within such an arrangement. the seller will be criminally liable. The Condominium Act. cost price of each article to be included in the sale ..The vendor must deliver to such vendee a written statement of: . at least 10 days before the sale. shall: .make a full detailed inventory of the goods. 4726 otherwise known as the Condominium Act of the Philippines is the governing law on condominiums. the sale itself is also void. terms and conditions of the sale 7.names and addresses of all creditors to whom said vendor or mortgagor may be indebted.notify every creditor at least 10 days before transferring possession of the goods. When 6(a) above is not complied with. seller is also criminally liable. Under the . When 6(c) is not complied with. of the price. etc.

as long as not more than 40% of the units in a project are acquired by foreigners. a condominium is defined as an interest in real property consisting of a separate interest in a unit in residential. Any attempt to circumvent such prohibition may put the provisions of the Anti-Dummy Act into effect. any transfer of interest that would increase alien interest thereby exceeding the limits set by law is prohibited. Although foreigners may indeed own condominium units.law. . in the land on which it is located and in other common areas of the building. The only exceptions to the prohibition against foreign ownership of land in the Philippines are those who would inherit land through the operation of intestate succession and former natural born Filipino citizens subject to the limitations provided for by law. The Condominium Act provides that in case the common areas are held by the owners of separate units as co-owners. In cases where the common areas in a condominium unit are owned by a corporation. This same rule applies to corporations holding title to condominium units. The Condominium Act itself provides for a provision dealing with any transfer of interest which may eventually lead to a violation of such rules. In cases where co-owners of separate units hold interest on the land over which the condominium building stands. It is required that 60% of the capital stock of these corporations must be owned by Filipino citizens. no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens or corporations at least sixty percent (60%) of the capital stock of which belong to Filipino citizens except in the case of hereditary succession. industrial or commercial building and an undivided interest in common directly or indirectly. the prohibitions and limitations encountered regarding foreign ownership of real property within the country may find proper application.