Quick answer

The Condominium Act, Republic Act No. 4726, governs condominium ownership. A condominium is an interest in real property consisting of a separate interest in a unit (the space you exclusively own, such as your apartment) together with an undivided interest in common in the common areas of the project (such as the land, hallways, elevators, lobby, and amenities), held in common with the other unit owners. Ownership of a unit is evidenced by a Condominium Certificate of Title. The common areas are typically owned by the condominium corporation, in which each unit owner is a shareholder or member in proportion to their unit; the condominium corporation manages the project, enforces the master deed and house rules, and collects association dues for maintenance. A unit owner has the right to exclusively own, use, sell, mortgage, or lease their unit, and to use the common areas in accordance with their purpose, subject to the master deed, the declaration of restrictions, and the by-laws. Owners must pay their share of common expenses (association dues), and unpaid dues can become a lien on the unit. A crucial limitation concerns foreign ownership: because the common areas usually include the land, and land ownership is constitutionally reserved to Filipinos, foreign ownership in a condominium project is generally limited such that foreigners may own units only up to a maximum of forty percent (40%) of the total in the project, keeping Filipino control of the corporation that owns the land. The master deed, the by-laws of the condominium corporation, and the declaration of restrictions are the governing documents a buyer should review. So a condo owner owns their unit plus a share in the common areas through the condominium corporation, with defined rights, dues obligations, and the 40% cap on foreign ownership.

What You Own

Under RA 4726, a condominium is a separate interest in your unit plus an undivided share in the common areas (land, hallways, amenities). Your unit is titled by a Condominium Certificate of Title.

The Condominium Corporation

The common areas are typically owned by the condominium corporation, in which each owner is a member/shareholder proportional to their unit. It manages the project, enforces the master deed and house rules, and collects association dues (unpaid dues can be a lien).

Foreign Ownership Cap

Because the common areas include the land (reserved to Filipinos), foreign ownership is generally capped at 40% of the project's units, keeping Filipino control of the land-owning corporation.

Practical Takeaways

Frequently Asked Questions

What do I own when I buy a condominium? A separate interest in your unit, which you exclusively own, together with an undivided interest in common in the common areas of the project, such as the land, hallways, and amenities, held with the other unit owners.

Who owns and manages the common areas? The common areas are typically owned by the condominium corporation, in which each unit owner is a member or shareholder proportional to their unit. The corporation manages the project and enforces the master deed and house rules.

Can foreigners buy a condominium unit? Yes, but foreign ownership in a condominium project is generally limited to a maximum of 40% of the total units, because the common areas usually include the land, which is reserved to Filipinos.

What happens if I don't pay association dues? Unpaid association dues can become a lien on your unit, and the condominium corporation may enforce collection. Owners are obliged to pay their proportionate share of common expenses.

This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.

If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.