June 18, 1966

REPUBLIC ACT NO. 4726

AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS
CREATION, AND GOVERN ITS INCIDENTS

SECTION 1. The short title of this Act shall be "The Condominium Act".
SECTION 2. A condominium is an interest in real property consisting of separate
interest in a unit in a residential, industrial or commercial building and an undivided
interest in common, 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. Title to the common areas, including the
land, or the appurtenant interests in such areas, may be held by a corporation specially
formed for the purpose (hereinafter known as the "condominium corporation") in which
the holders of separate interest shall automatically be members or shareholders, to the
exclusion of others, in proportion to the appurtenant interest of their respective units in
the common areas.
The real right in condominium may be ownership or any other interest in real
property recognized by law, on property in the Civil Code and other pertinent laws.
SECTION 3. As used in this Act, unless the context otherwise requires:
(a) "Condominium" means a condominium as de ned in the next preceding
section.
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(b) "Unit" means a part of the condominium project intended for any type of
independent use or ownership, including one or more rooms or
spaces located in one or more oors (or part or parts of oors) in a
building or buildings and such accessories as may be appended
thereto.
(c) "Project" means the entire parcel of real property divided or to be divided
in condominiums, including all structures thereon,
(d) "Common areas" means the entire project excepting all units separately
granted or held or reserved.
(e) "To divide" real property means to divide the ownership thereof or other
interest therein by conveying one or more condominiums therein but
less than the whole thereof.
SECTION 4. The provisions of this Act shall apply to property divided or to be
divided into condominiums only if there shall be recorded in the Register of Deeds of
the province or city in which the property lies and duly annotated in the corresponding
certi cate of title of the land, if the latter had been patented or registered under either
the Land Registration or Cadastral Acts, an enabling or master deed which shall contain,
among others, the following:
(a) Description of the land on which the building or buildings and
improvements are or are to be located;
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(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 certi cate of the registered owner of the property, if he is other than
those executing 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;
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(g) The following plans shall be appended to the deed as integral parts
thereof:
(1) A survey plan of the land included in the project, unless a survey
plan of the same property had previously bee filed in said office;
(2) A diagrammatic oor plan of the building or buildings in the
project, in suf cient detail to identify each unit, its relative
location and approximate dimensions;
(h) Any reasonable restriction not contrary to law, morals or public policy
regarding the right of any condominium owner to alienate or dispose
of his condominium.
The enabling or master deed may be amended or revoked upon registration of an
instrument executed by the registered owner or owners of the property and consented
to by all registered holders of any lien or encumbrance on the land or building or portion
thereof. The term "registered owner" shall include the registered owners of
condominiums in the project. Until registration of a revocation, the provisions of this
Act shall continue to apply to such property.
SECTION 5. Any transfer or conveyance of a unit or an apartment, of ce or store
or other space therein, shall include the transfer or conveyance of the undivided
interests in the common areas or, in a proper case, the membership or shareholdings in
the condominium corporation: Provided, however, That where the common areas in the
condominium project are owned by the owners of separate units as co-owners thereof,
no condominium unit therein shall be conveyed or transferred to persons other than
Filipino citizens, or corporations at least sixty percent of the capital stock of which
belong to Filipino citizens, except in cases of hereditary succession. Where the
common areas in a condominium project are held by a corporation, no transfer or
conveyance of a unit shall be valid if the concomitant transfer of the appurtenant
membership or stockholding in the corporation will cause the alien interest in such
corporation to exceed the limits imposed by existing laws.
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SECTION 6. Unless otherwise expressly provided in the enabling or master deed

or the declaration of restrictions, the incidents of a condominium grant are as follows:
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(a) The boundary of the unit granted are the interior surfaces of the
perimeter walls, oors, ceilings, windows and doors thereof. The
following are not part of the unit bearing walls, columns, oors, roofs,
foundations and other common structural elements of the building;
lobbies, stairways, hallways, and other areas of common use, elevator
equipment and shafts, central heating, central refrigeration and
central air-conditioning equipment, reservoirs, tanks, pumps and other
central services and facilities, pipes, ducts, ues, chutes, conduits,
wires and other utility installations, wherever located, except the
outlets thereof when located within the unit.
(b) There shall pass with the unit, as an appurtenance thereof, an exclusive
easement for the use of the air space encompassed by the
boundaries of the unit as it exists at any particular time and as the unit
may lawfully be altered or reconstructed from time to time. Such
easement shall be automatically terminated in any air space upon
destruction of the unit as to render it untenantable.
(c) Unless otherwise, provided, the common areas are held in common by
the holders of units, in equal shares, one for each unit.
(d) A non-exclusive easement for ingress, egress and support through the
common areas is appurtenant to each unit and the common areas are
subject to such easements.
(e) Each condominium owner shall have the exclusive right to paint, repaint,
tile, wax, paper or otherwise re nish and decorate the inner surfaces
of the walls, ceilings, oors, windows and doors bounding his own
unit.
(f) Each condominium owner shall have the exclusive right to mortgage,
pledge or encumber his condominium and to have the same
appraised independently of the other condominiums but any
obligation incurred by such condominium owner is personal to him.
(g) Each condominium owner has also the absolute right to sell or dispose
of his condominium unless the master deed contains a requirement
that the property be rst offered to the condominium owners within a
reasonable period of time before the same is offered to outside
parties.
SECTION 7. Except as provided in the following section, the common areas shall
remain undivided, and there shall be no judicial partition thereof.
SECTION 8. Where several persons own condominiums in a condominium
project, an action may be brought by one or more such persons for partition thereof by
sale of the entire project, as if the owners of all of the condominiums in such project
were co-owners of the entire project in the same proportion as their interests in the
common areas: Provided, however, That a partition shall be made only upon a showing:
(a) That three years after damage or destruction to the project which
renders material part thereof unit for its use prior thereto, the project
has not been rebuilt or repaired substantially to its state prior to its
damage or destruction, or
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(b) That damage or destruction to the project has rendered one-half or more
of the units therein untenantable and that condominium owners
holding in aggregate more than thirty percent interest in the common
areas are opposed to repair or restoration of the project; or
(c) That the project has been in existence in excess of fty years, that it is
obsolete and uneconomic, and that condominium owners holding in
aggregate more than fty percent interest in the common areas are
opposed to repair or restoration or remodelling or modernizing of the
project; or
(d) That the project or a material part thereof has been condemned or
expropriated and that the project is no longer viable, or that the
condominium owners holding in aggregate more than seventy percent
interest in the common areas are opposed to continuation of the
condominium regime after expropriation or condemnation of a
material portion thereof; or
(e) That the conditions for such partition by sale set forth in the declaration
of restrictions, duly registered in accordance with the terms of this
Act, have been met.
SECTION 9. The owner of a project shall, prior to the conveyance of any
condominium therein, register a declaration of restrictions relating to such project,
which restrictions shall constitute a lien upon each condominium in the project, and
shall insure to and bind all condominium owners in the project. Such liens, unless
otherwise provided, may be enforced by any condominium owner in the project or by
the management body of such project. The Register of Deeds shall enter and annotate
the declaration of restrictions upon the certi cate of title covering the land included
within the project, if the land is patented or registered under the Land Registration or
Cadastral Acts.
The declaration of restrictions shall provide for the management of the project
by anyone of the following management bodies: a condominium corporation, an
association of the condominium owners, a board of governors elected by condominium
owners, or a management agent elected by the owners or by the board named in the
declaration. It shall also provide for voting majorities quorums, notices, meeting date,
and other rules governing such body or bodies.
Such declaration of restrictions, among other things, may also provide:
(a) As to any such management body;
(1) For the powers thereof, including power to enforce the provisions
of the declarations of restrictions;
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(2) For maintenance of insurance policies, insuring condominium

owners against loss by re, casualty, liability, workmen's
compensation and other insurable risks, and for bonding of the
members of any management body;
(3) Provisions for maintenance, utility, gardening and other services
bene ting the common areas, for the employment of personnel
necessary for the operation of the building, and legal,
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accounting and other professional and technical services;

(4) For purchase of materials, supplies and the like needed by the
common areas;
(5) For payment of taxes and special assessments which would be a
lien upon the entire project or common areas, and for discharge
of any lien or encumbrance levied against the entire project or
the common areas;
(6) For reconstruction of any portion or portions of any damage to or
destruction of the project;
(7) The manner for delegation of its powers;
(8) For entry by its of cers and agents into any unit when necessary in
connection with the maintenance or construction for which
such body is responsible;
(9) For a power of attorney to the management body to sell the entire
project for the bene t of all of the owners thereof when
partition of the project may be authorized under Section 8 of
this Act, which said power shall be binding upon all of the
condominium owners regardless of whether they assume the
obligations of the restrictions or not.
(b) The manner and procedure for amending such restrictions: Provided,
That the vote of not less than a majority in interest of the owners is
obtained.
(c) For independent audit of the accounts of the management body;
(d) For reasonable assessments to meet authorized expenditures, each
condominium unit to be assessed separately for its share of such
expenses in proportion (unless otherwise provided) to its owners
fractional interest in any common areas;
(e) For the 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 eight and
thirteen of this Act, upon which partition of the project and dissolution
of the condominium corporation may be made. Such right to partition
or dissolution may be conditioned upon failure of the condominium
owners to rebuild within a certain period or upon speci ed
inadequacy of insurance proceeds, or upon speci ed percentage of
damage to the building, or upon a decision of an arbitrator, or upon
any other reasonable condition.
SECTION 10. Whenever the common areas in a condominium project are held by
a condominium corporation, such corporation shall constitute the management body of
the project. The corporate purposes of such a corporation shall be limited to the
holding of the common areas, either in ownership or any other interest in real property
recognized by law, to the management of the project, and to such other purposes as
may be necessary, incidental or convenient to the accomplishment of said purposes.
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The articles of incorporation or by-laws of the corporation shall not contain any
provision contrary to or inconsistent with the provisions of this Act, the enabling or
master deed, or the declaration of restrictions of the project. Membership in a
condominium corporation, regardless of whether it is a stock or non-stock corporation,
shall not be transferable separately from the condominium unit of which it is an
appurtenance. When a member or stockholder ceases to own a unit in the project in
which the condominium corporation owns or holds the common areas, he shall
automatically cease to be a member or stockholder of the condominium corporation.
SECTION 11. The term of a condominium corporation shall be co-terminuous
with the duration of the condominium project, the provisions of the Corporation Law to
the contrary notwithstanding.
SECTION 12. In case of involuntary dissolution of a condominium corporation for
any of the causes provided by law, the common areas owned or held by the corporation
shall, by way of liquidation, be transferred pro-indiviso and in proportion to their interest
in the corporation to the members or stockholders thereof, subject to the superior
rights of the corporation creditors. Such transfer or conveyance shall be deemed to be
a full liquidation of the interest of such members or stockholders in the corporation.
After such transfer or conveyance, the provisions of this Act governing undivided coownership of, or undivided interest in, the common areas in condominium projects shall
fully apply.
SECTION 13. Until the enabling or the master deed of the project in which the
condominium corporation owns or holds the common area is revoked, the corporation
shall not be voluntarily dissolved through an action for dissolution under Rule 104 of the
Rules of Court except upon a showing:
(a) That three years after damage or destruction to the project in which the
corporation owns or holds the common areas, which damage or
destruction renders a material part thereof un t for its use prior
thereto, the project has not been rebuilt or repaired substantially to its
state prior to its damage or destruction; or
(b) That damage or destruction to the project has rendered one-half or more
of the units therein untenantable and that more than thirty percent of
the members of the corporation, if non-stock, or the shareholders
representing more than thirty percent of the capital stock entitled to
vote, if a stock corporation, are opposed to the repair or
reconstruction of the project, or
(c) That the project has been in existence in excess of fty years, that it is
obsolete and uneconomical, and that more than fty percent of the
members of the corporation, if non-stock, or the stockholders
representing more than fty percent of the capital stock entitled to
vote, if a stock corporation, are opposed to the repair or restoration
or remodelling or modernizing of the project; or
(d) That the project or a material part thereof has been condemned or
expropriated and that the project is no longer viable, or that the
members holding in aggregate more than seventy percent interest in
the corporation, if non-stock, or the stockholders representing more
than seventy percent of the capital stock entitled to vote, if a stock
corporation, are opposed to the continuation of the condominium
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regime after expropriation or condemnation of a material portion

thereof; or
(e) That the conditions for such a dissolution set forth in the declaration of
restrictions of the project in which the corporation owns of holds the
common areas, have been met.
SECTION 14. The condominium corporation may also be dissolved by the
af rmative vote of all the stockholders or members thereof at a general or special
meeting duly called for the purpose: Provided, That all the requirements of Section
sixty-two of the Corporation Law are complied with.
SECTION 15. Unless otherwise provided for in the declaration of restrictions
upon voluntary dissolution of a condominium corporation in accordance with the
provisions of Sections thirteen and fourteen of this Act, the corporation shall be
deemed to hold a power of attorney from all the members or stockholders to sell and
dispose of their separate interests in the project and liquidation of the corporation shall
be effected by a sale of the entire project as if the corporation owned the whole
thereof, subject to the rights of the corporate and of individual condominium creditors.
SECTION 16. A condominium corporation shall not, during its existence, sell,
exchange, lease or otherwise dispose of the common areas owned or held by it in the
condominium project unless authorized by the af rmative vote of all the stockholders
or members.
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SECTION 17. Any provision of the Corporation Law to the contrary

notwithstanding, the by-laws of a condominium corporation shall provide that a
stockholder or member shall not be entitled to demand payment of his shares or
interest in those cases where such right is granted under the Corporation Law unless he
consents to sell his separate interest in the project to the corporation or to any
purchaser of the corporation's choice who shall also buy from the corporation the
dissenting member or stockholder's interest. In case of disagreement as to price, the
procedure set forth in the appropriate provision of the Corporation Law for valuation of
shares shall be followed. The corporation shall have two years within which to pay for
the shares or furnish a purchaser of its choice from the time of award. All expenses
incurred in the liquidation of the interest of the dissenting member or stockholder shall
be borne by him.
SECTION 18. Upon registration of an instrument conveying a condominium, the
Register of Deeds shall, upon payment of the proper fees, enter and annotate the
conveyance on the certi cate of title covering the land included within the project and
the transferee shall be entitled to the issuance of a "condominium owner's" copy of the
pertinent portion of such certi cate of title. Said "condominium owner's" copy need not
reproduce the ownership status or series of transactions in force or annotated with
respect to other condominiums in the project. A copy of the description of the land, a
brief description of the condominium conveyed, name and personal circumstances of
the condominium owner would be suf cient for purposes of the "condominium
owner's" copy of the certi cate of title. No conveyance of condominiums or part
thereof, subsequent to the original conveyance thereof from the owner of the project,
shall be registered unless accompanied by a certi cate of the management body of the
project that such conveyance is in accordance with the provisions of the declaration of
restrictions of such project.
In cases of condominium projects registered under the provisions of the Spanish
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Mortgage Law or Act 3344, as amended, the registration of the deed of conveyance of
a condominium shall be suf cient if the Register of Deeds shall keep the original or
signed copy thereof, together with the certi cate of the management body of the
project, and return a copy of the deed of conveyance to the condominium owner duly
acknowledge and stamped by the Register of Deeds in the same manner as in the case
of registration of conveyances of real property under said laws.
SECTION 19. Where the enabling or master deed provides that the land included
within a condominium project are to be owned in common by the condominium owners
therein, the Register of Deeds may, at the request of all the condominium owners and
upon surrender of all their "condominium owner's" copies, cancel the certi cates of title
of the property and issue a new one in the name of said condominium owners as proindiviso co-owners thereof.
SECTION 20. An assessment upon any condominium made in accordance with a
duly registered declaration of restrictions shall be an obligation of the owner thereof at
the time the assessment is made. The amount of any such assessment plus any other
charges thereon, such as interest, costs (including attorney's fees) and penalties, as
such may be provided for in the declaration of restrictions, shall be and become a lien
upon the condominium assessed when the management body causes a notice of
assessment to be registered with the Register of Deeds of the city or province where
such condominium project is located. The notice shall state the amount of such
assessment and such other charges thereon a may be authorized by the declaration of
restrictions, a description of the condominium, unit against which same has been
assessed, and the name of the registered owner thereof. Such notice shall be signed by
an authorized representative of the management body or as otherwise provided in the
declaration of restrictions. Upon payment of said assessment and charges or other
satisfaction thereof, the management body shall cause to be registered a release of the
lien.
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Such lien shall be superior to all other liens registered subsequent to the
registration of said notice of assessment except real property tax liens and except that
the declaration of restrictions may provide for the subordination thereof to any other
liens and encumbrances.
Such liens may be enforced in the same manner provided for by law for the
judicial or extra-judicial foreclosure of mortgages of real property. Unless otherwise
provided for in the declaration of restrictions, the management body shall have power
to bid at foreclosure sale. The condominium owner shall have the same right of
redemption as in cases of judicial or extra-judicial foreclosure of mortgages.
SECTION 21. No labor performed or services or materials furnished with the
consent of or at the request of a condominium owner or his agent or his contractor or
subcontractor, shall be the basis of a lien against the condominium of any other
condominium owner, unless such other owners have expressly consented to or
requested the performance of such labor or furnishing of such materials or services.
Such express consent shall be deemed to have been given by the owner of any
condominium in the case of emergency repairs of his condominium unit. Labor
performed or services or materials furnished for the common areas, if duly authorized
by the management body provided for in a declaration of restrictions governing the
property, shall be deemed to be performed or furnished with the express consent of
each condominium owner. The owner of any condominium may remove his
condominium from a lien against two or more condominiums or any part thereof by
payment to the holder of the lien of the fraction of the total sum secured by such lien
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which is attributable to his condominium unit.

SECTION 22. Unless otherwise provided for by the declaration of restrictions, the
management body, provided for herein, may acquire and hold, for the bene t of the
condominium owners, tangible and intangible personal property and may dispose of
the same by sale or otherwise; and the bene cial interest in such personal property
shall be owned by the condominium owners in the same proportion as their respective
interests in the common areas. A transfer of a condominium shall transfer to the
transferee ownership of the transferor's beneficial interest in such personal property.
SECTION 23. Where, in an action for partition of a condominium project or for the
dissolution of condominium corporation on the ground that the project or a material
part thereof has been condemned or expropriated, the Court nds that the conditions
provided for in this Act or in the declaration of restrictions have not been met, the Court
may decree a reorganization of the project, declaring which portion or portions of the
project shall continue as a condominium project, the owners thereof, and the respective
rights of said remaining owners and the just compensation, if any, that a condominium
owner may be entitled to due to deprivation of his property. Upon receipt of a copy of
the decree, the Register of Deeds shall enter and annotate the same on the pertinent
certificate of title.
SECTION 24. Any deed, declaration or plan for a condominium project shall be
liberally construed to facilitate the operation of the project, and its provisions shall be
presumed to be independent and severable.
SECTION 25. Whenever real property has been divided into condominiums, each
condominium separately owned shall be separately assessed, for purposes of real
property taxation and other tax purposes to the owners thereof and the tax on each
such condominium shall constitute a lien solely thereon.
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SECTION 26. All Acts or parts of Acts in con ict or inconsistent with this Act are
hereby amended insofar as condominium and its incidents are concerned.
SECTION 27. This Act shall take effect upon its approval.
Approved: June 18, 1966

Published in the Official Gazette, Vol. 65, No. 1, p. 1 on January 6, 1969

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