REAL ESTATE

 Real
 Comes from the term realty which has meant land and all things attached to the latter, which
would include immovable things such as buildings and structures.
 All other items not considered realty have been designated as personalty, which includes all
intangibles and movable things.
 Estate
 Means all that a person owns, including both realty and personalty.
 Refers to the totality of the assets owned by a person which includes real estate and personal
properties.
 REAL ESTATE
 Property consisting of land and the buildings on it, along with its natural resources such as crops,
minerals and water.
 Means all the land and all things permanently attached.
 Land and anything fixed, immovable, or permanently attached to it such as buildings, fences,
structures, improvements, roads, shrubs and trees (but not growing crops), sewers, structures,
utility systems, and walls.
 TYPES OF REAL ESTATE
 RESIDENTIAL
 All property used for single family or multifamily housing in urban, suburban or rural areas.

 COMMERCIAL
 Business property, including office space, shopping centers, theaters, etc.

 INDUSTRIAL
 Warehouses, factories, industrial districts and power plants

 AGRICULTURAL
 Farms, timberlands, ranches, and orchards

 SPECIAL PURPOSE
 Churches, schools, cemeteries and government-held lands
Condominium Concepts
and Other Specialized
Developments

By: April Angelou D. Baldonado, REB

CONDOMINIUMS
 Background
Condominiums housing was basically born out
of limited land space.

In the Philippines, the concept was formally recognized with

the passage by Congress on June 16, 1966 of R.A 4726 entitled
“An Act to Define Condominium, establish requirements for its
Creation, and govern its Incidence”

It may take the form of a subdivision, or what they referred

as the “horizontal condominium” or “townhouse project” vs.
the traditional vertical condominium or condominium building.
Major Laws Governing Condominiums

 R.A 4796 or the Condominium Act ( as amended)

 PD 957 The Subdivision and Condominium Buyers Protective
Decree
Advantages of Condominiums
 Affordability is Enhanced- it enhances affordability by fractionalizing the cost of
land and building.

 Maximizing Land Space- there is economy in land space. Families or parties

holding the title to contiguous land may obtain adequate housing by
consolidating their land and constructing a condominium thereon.

 Facilities and Services- Unless otherwise stated in the Master Deed, it is cheaper
because the cost are distributed equally among the unit owners

 Exclusive Ownership of Unit- it involves retention or the psychological and

economic concepts of a family house through exclusive ownership of a unit, while
holding co-ownership rights in the undivided facilities and common areas.

 Closer neighborhood- due to physical closeness of each unit, and the community
ties concept of co- ownership of common areas and facilities, unit owners are
bound to uphold the quality of their living standards.
Definition of Terms
 CONDOMINIUM
 An interest in real estate consisting of absolute ownership in a unit of residential,
commercial or industrial buildings and common ownership of the land and
common areas of the condominium project.
 CONDOMINIUM PROJECT
 It is the TOTALITY of the site (land), condominium units and common areas.
 CONDOMINIUM UNIT
 It is 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
 COMMON AREAS
 Refers to the weigh bearing walls, columns, and beams, stairways, halls, elevators,
etc. including electrical, water and plumbing systems and amenities in a
condominium project .
KINDS OF COMMON AREAS
1. General Common Areas (undivided) – refers to the parts of the
condominium project which are not subject to the exclusive use of any one
or group of owners
Examples: Swimming pool, stairways, elevators and etc.

2. Limited Common Areas (divided) - refers to common areas which are

allocated to the exclusive use of one or group of unit owners
 Extent of Interest in Common Areas
1. In the absence of any provision in the Master Deed, all unit
owners shall have EQUAL SHARE in the common areas.
2. The Master Deed may provide any of the following
alternatives;
1. Equal Sharing
2. Sharing based on Value
3. Sharing based on Unit Area in relation to Total Area
Important Documents in Condominium Sales
1. MASTER DEED- this is the ENABLING ACT of any condominium
project, this “enables” the condominium to exist and govern its
existence.

2. DEED OF RESTRICTIONS- it lays down the provisions for insurance

coverages, the management body, maintenance costs and
assessment basis and audit.

3. ARTICLES AND BY LAWS OF INCORPORATION- this establishes the

birth and guidelines of condominium corporation.

4. RULES AND REGULATIONS- Determines what unit owners and

tenants can and cannot do.
5.CONDOMINIUM CERTIFICATE OF TITLE- this is the
evidence or proof of one’s ownership of the
condominium unit.

6. TAX DECLARATIONS- this document will determine to what

extent the unit owners are liable with regards to the tax
obligation on the condominium project’s land and common
areas and the individual units.

7. CERTIFICATE OF MANAGEMENT DOCUMENT- issued by the

condominium corporation that the conveyance is in
accordance with the Master Deed/ Restrictions.
 MASTER DEED
A condominium project’s Master deed includes the following;
1. Description of LAND(S) included in the project.
2. Description of the BUILDING(S) like the numbers of floors, basements, number of units
and their attendant accessories.
3. Description of COMMON AREAS and FACILITIES which are part and parcel of the
project.
4. Description of INTEREST acquired by the unit owners in the common areas and land(s).
5. PURPOSE(S) for which the building and units are to be used.
6. CERTIFICATION BY REGISTERED OWNER OF THE PROPERTY- if he is other than those
executing the Master Deed, that he consents to the registration of the deed.
7. Deed of Restrictions
8. Annexes, land survey plan and building diagrammatic floor plans.
 DEED OF RESTRICTIONS INDICATE:

1. Management Body
2. Provision for Insurance Coverage
3. Provisions for the Maintenance of Common Areas and Facilities
4. Sharing of Realty Tax on Common Areas
5. Manner of Amending Restrictions
6. Independent Audit
7. Assessments and Dues
8. Project Partitioning and Dissolution of the Condominium Corporation.
RIGHTS AND OBLIGATIONS OF UNIT OWNERS
RIGHTS
Absolute ownership of unit
Co- ownership of land and common
areas
Exclusive easement of the air
encompassed by his unit
Non- exclusive easement to common
areas
Repair, paint, redecorate the interior
surfaces
Sell, lease or mortgage his unit
Vote in meetings of condominium
corporation
OBLIGATIONS
Pay the realty Tax on his unit
Share in the realty tax on land and
common areas
Pay insurance of his unit
Share the insurance of common areas
Comply with use restrictions of the unit
Pay condominium dues/ assessments
Give “right of the first refusal” if so
required by the master deed
 The NEED for a Condominium Corporation
1. NECESSITY FOR CREATION
 The organization of a condominium corporation is OPTIONAL if no unit will be sold to foreigners.
 The corporation is MANDATORY if some units, not to exceed 40%, will be sold to foreigners. In such case, title
to the land shall be transferred to the corporation to comply with the constitutional mandate that
corporations may acquire real estate provided that at least 60% of the capital or members are FILIPINO

2. PURPOSES OF CORPORATION
 To hold title to the land
 Acts as the management body

3. CONFLICTS WITH MASTER DEED

In case of conflict between the provisions of Articles of Incorporation of the condominium corporation and the
Master Deed, the latter shall prevail based on the following;
1. It is the Master Deed which gives birth to the condominium project.
2. The Condominium Corporation provides that the Articles of Incorporation of the condominium Corporation
shall not conflict with the Master Deed.

4. TERM OF CORPORATION
 The life of the condominium corporation shall be coterminous with the existence of the condominium
project.
 EFFECTS OF VOLUNTARY EFFECTS OF INVOLUNTARY
DISSOLUTION DISSOLUTION

The corp shall be deemed to hold a power The common areas held by the corp shall
of attorney from all stockholders/ members be transferred to pro-indiviso and in
to sell their separate interest in the project. proportion to their interest to the
stockholders/members

Liquidation of the corp shall be affected by The transfer shall be deemed full liquidation
the sale of the entire project subject to the of the interest of the members/ stockholders
rights of the corp and individual of the corp.
condominium creditors
Major differences between Condominium
VS. Traditional Ownership
Evidence of ownership
Property Rights
Restrictions on Capacity to
Buy
CONDOMINIUM TRADITIONAL OWNERSHIP
Condominium Certificate Transfer Certificate of Title
of Title (CCT) (TCT)
Absolute Ownership of unit Absolute Ownership
and Co- ownership of land
and common areas and all
land improvements
Alien ownership should not
go beyond 40% of the total
units in a condominium
unless acquired through
corporation hereditary
succession or special laws