Understanding the legal framework and financial obligations of condominium ownership in the Philippines is crucial for making informed decisions in today’s dynamic real estate market.
The Condominium corporation
Under the Condominium Act (Republic Act No. 4726), every condominium project in the Philippines must establish a Condominium Corporation—a legal entity that manages the building and common areas. Unlike homeowners associations in subdivisions, the Condominium Corporation holds significant legal authority over residents’ daily lives.
Key powers and responsibilities include setting and collecting monthly association dues, enforcing house rules and building regulations, managing common areas, security and maintenance as well as Aapproving major building improvements and repairs.
The corporation is governed by a Board of Directors elected by unit owners, making active participation in annual meetings crucial for protecting your interests.
Be wary of developers who retain majority control of the Condominium Corporation long after turnover. Philippine law requires developers to transfer control to unit owners once 60% of units are sold, but some delay this process, limiting owners’ decision-making power.
Association dues
Monthly association dues in Metro Manila typically range from ₱80-₱200 per square meter, but understanding what’s included—and what’s not—can prevent costly surprises.
What are you paying for? These include common area maintenance and utilities, security, repairs and property management services.
Ownership rights: what you actually own
The concept of condominium ownership in the Philippines differs significantly from traditional property ownership, and misunderstanding this distinction leads to common legal disputes.
Basically, you own your unit and an undivided share in common areas proportional to your unit size, the right to use designated parking slots and storage areas plus voting rights in the Condominium Corporation.
You don’t own the building structure including exterior walls and windows, common areas including balconies and terraces and land beneath the building. This distinction becomes crucial during renovations. Want to remove a wall? You’ll need Condominium Corporation approval, as structural changes affect the entire building. Installing new windows or modifying balconies requires board permission and must comply with building codes.
Smart condo ownership is more than just finding the right unit—it’s about understanding the legal and financial ecosystem that comes with vertical living. With proper preparation and ongoing diligence, your condominium investment can provide both lifestyle satisfaction and long-term financial security.
For complex legal questions regarding condominium ownership, consult with a lawyer specializing in real estate law. This article provides general information and should not be considered legal advice.
