Cities in the Pacific Rim by Berry James;McGreal Stanley;

Author:Berry, James;McGreal, Stanley; [JAMES BERRY AND STANLEY MCGREAL]
Language: eng
Format: epub
Publisher: Taylor & Francis Group
Published: 2011-09-28T00:00:00+00:00

a condominium is an interest in real property consisting of a separate interest in a unit in a residential, industrial or commercial building and an undivided interest 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.

In this respect, a condominium is a type of property unit by which ownership of land is shared, similar to the concept of strata title ownership in Hong Kong and Singapore.

Land-ownership is registered by a Transfer Certificate of Title (TCT) whereas a condominium project requires a Condominium Certificate of Title (CCT). Annotated on the title is a ‘Master Deed’ and ‘Declaration of Restrictions’ which sets out the individual owners’ rights and entitlements. It also details the provisions for building management, voting majorities, quorum, usage of the units and assessments. Whether a foreigner may be allowed to invest in a condominium project is largely dependent on the ownership of the common areas within the building. The ownership of the common areas may either be held by a Condominium Corporation in which the owners are automatically members/shareholders or in co-ownership by the owners of the individual units in the project. The Deed usually defines the fractional interest of each unit in the common areas. In the absence of such provision, the owners of units are deemed to have equal shares. Consequently, when a unit is transferred or conveyed, the undivided interest in the common areas or the shareholding in the Condominium Corporation is automatically transferred to the buyer (Know Your Rights, Condominiums and Townhouses in the Philippines, 1991).

The Condominium Act allows foreigners up to 40% ownership of a condominium complex provided that a Condominium Corporation holds the common areas. The 40% ownership is based on the total gross floor area of the project. In the case that the common areas are held in co-ownership, the units may be transferred or conveyed only in favour of Filipino citizens (except in cases of hereditary succession) or corporations where at least 60% of the capital stock belongs to Filipino citizens.

On sale of strata title property, the building owner and Condominium Corporation is often privileged with a ‘right of first refusal’. In cases where this provision appears in the Deed, the vendor is obliged to ‘offer back’ his property to the building owner in the first instance and then to the Condominium Corporation. Only if both parties refuse to purchase the property can the unit be offered for sale in the open market. The price offered in the market should not be lower than the price offered to both parties.

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