Buying a condominium in the Philippines
Do you wish to buy a Condominium in the Philippines? Here are things you need to know particularly those that you, as the owner, are entitled to as well as those that you need to comply with.
1. What is a Condominium?
A Condominium is an interest in real property consisting of a separate Unit in a residential complex and an undivided interest in the common property of the complex.
2. Condominium Certificate of Title
In terms of the Condominium Act, you will be issued a Condominium Certificate of Title (C.C.T.) for your exclusive ownership of your Unit. (Refer Republic Act No. 4726 Section 2. “The Condominium Act”).
Under Section 5 of the Condominium Act foreigners may purchase residential condominiums. However, only up to 40% of the total development may be sold to foreign purchasers.
3. Condominium Corporation (the “Corporation”)
Title to common areas, including the land, will be held by a Condominium Corporation, governed by its Articles of Incorporation. Unit Owners shall automatically be members of the Corporation in proportion to their interest in the development. Members will elect a committee following Turnover of the Units.
Under the Condominium Act, the Corporation will look after the affairs, maintenance and management of the common areas and set an annual budget for these purposes. It will appoint an on-site Manager to assist in this role.
4. Association Dues
As a Unit Owner, you are required to make monthly contributions for the general upkeep of the property in accordance with the budget set by the Corporation. These fees are called “Association Dues”.
Your share of the costs is proportionate to your purchase price over the total. Currently the average association dues is P50 pesos or US$1per square meter per month.
Condominium Corporation dues cover the following types of items: General caretaking activities, security, grounds maintenance, maintenance of the common areas, cleaning of common areas, pest control, pool maintenance, service contracts on equipment, insurance of the building and common property, permits and licenses and office expenses.
5. Sinking Fund
Four percent (4%) or such other amount as the Corporation shall decide, of your Association Dues will be allocated to a Sinking Fund. This money is set aside to assist with periodic repainting, replacement and major repairs and improvements to the complex. The Corporation decides from time to time on the amount of the contribution to the Sinking Fund. #
