PRESIDENTIAL DECREE No.

957 July 12, 1976

REGULATING THE SALE OF SUBDIISION LOTS AND CONDO!INIU!S,
PROIDING PENALTIES FOR IOLATIONS THEREOF
WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent
human settlement and to provide them with ample opportunities for improving their quality of
life;
WHEREAS, numerous reports reveal that many real estate subdivision owners, developers,
operators, andor sellers have reneged on their representations and obligations to provide and
maintain properly subdivision roads, drainage, sewerage, water systems, lighting systems, and
other similar basic requirements, thus endangering the health and safety of home and lot buyers;
WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent
manipulations perpetrated by unscrupulous subdivision and condominium sellers and operators,
such as failure to deliver titles to the buyers or titles free from liens and encumbrances, and to
pay real estate ta!es, and fraudulent sales of the same subdivision lots to different innocent
purchasers for value;
WHEREAS, these acts not only undermine the land and housing program of the government but
also defeat the ob"ectives of the #ew Society, particularly the promotion of peace and order and
the enhancement of the economic, social and moral condition of the $ilipino people;
WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision and
condominium businesses be closely supervised and regulated, and that penalties be imposed on
fraudulent practices and manipulations committed in connection therewith%
#&W, 'HERE$&RE, (, $ER)(#A#) E% *AR+&S, ,resident of the ,hilippines, by virtue of
the powers vested in me by the +onstitution, do hereby decree and order-
T"#l$ I
TITLE AND DEFINITIONS
S$%#"o& 1. Title. 'his )ecree shall be .nown as 'HE S/0)(1(S(&# A#) +&#)&*(#(/*
0/2ERS3 ,R&'E+'(1E )E+REE%
S$%#"o& 2. Definition of Terms When used in this Decree, the following terms shall, unless the
conte!t otherwise indicates, have the following respective meanings-
4a5 ,erson% 6,erson7 shall mean a natural or a "uridical person% A "uridical person refers
to a business firm whether a corporation, partnership, cooperative or associations or a
single proprietorship%
4b5 Sale or sell% 6Sale7 or 6sell7 shall include every disposition, or attempt to dispose, for
a valuable consideration, of a subdivision lot, including the building and other
improvements thereof, if any, in a subdivision pro"ect or a condominium unit in a
condominium pro"ect% 6Sale7 and 6sell7 shall also include a contract to sell, a contract of
purchase and sale, an e!change, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter,
advertisement or otherwise%
A privilege given to a member of a cooperative, corporation, partnership, or any
association andor the issuance of a certificate or receipt evidencing or giving the right of
participation in, or right to, any land in consideration of payment of the membership fee
or dues, shall be deemed a sale within the meaning of this definition%
4c5 0uy and purchase% 'he 6buy7 and 6purchase7 shall include any contract to buy,
purchase, or otherwise acquire for a valuable consideration a subdivision lot, including
the building and other improvements, if any, in a subdivision pro"ect or a condominium
unit in a condominium pro"ect%
4d5 Subdivision pro"ect% 6Subdivision pro"ect7 shall mean a tract or a parcel of land
registered under Act #o% 89: which is partitioned primarily for residential purposes into
individual lots with or without improvements thereon, and offered to the public for sale,
in cash or in installment terms% (t shall include all residential, commercial, industrial and
recreational areas as well as open spaces and other community and public areas in the
pro"ect%
4e5 Subdivision lot% 6Subdivision lot7 shall mean any of the lots, whether residential,
commercial, industrial, or recreational, in a subdivision pro"ect%
4f5 +omple! subdivision plan% 6+omple! subdivision plan7 shall mean a subdivision plan
of a registered land wherein a street, passageway or open space is delineated on the plan%
4g5 +ondominium pro"ect% 6+ondominium pro"ect7 shall mean the entire parcel of real
property divided or to be divided primarily for residential purposes into condominium
units, including all structures thereon%
4h5 +ondominium unit% 6+ondominium unit7 shall mean a part of the condominium
pro"ect intended for any type of independent use or ownership, including one or more
rooms or spaces located in one or more floors 4or part of parts of floors5 in a building or
buildings and such accessories as may be appended thereto%
4i5 &wner% 6&wner7 shall refer to the registered owner of the land sub"ect of a subdivision
or a condominium pro"ect%
4"5 )eveloper% 6)eveloper7 shall mean the person who develops or improves the
subdivision pro"ect or condominium pro"ect for and in behalf of the owner thereof%
4.5 )ealer% 6)ealer7 shall mean any person directly engaged as principal in the business
of buying, selling or e!changing real estate whether on a full;time or part;time basis%
4l5 0ro.er% 60ro.er7 shall mean any person who, for commission or other compensation,
underta.es to sell or negotiate the sale of a real estate belonging to another%
4m5 Salesman% 6Salesman7 shall refer to the person regularly employed by a bro.er to
perform, for and in his behalf, any or all functions of a real estate bro.er%
4n5 Authority% 6Authority7 shall mean the #ational Housing Authority%
T"#l$ II
REGISTRATION AND LICENSE TO SELL
S$%#"o& '. National Housing Authority The National Housing Authority shall have exclusive
jurisdiction to regulate the real estate trade and business in accordance with the rovisions of
this Decree.
S$%#"o& (. !egistration of "rojects The registered owner of a arcel of land who wishes to
convert the same into a subdivision roject shall submit his subdivision lan to the Authority
which shall act uon and arove the same, uon a finding that the lan comlies with the
#ubdivision #tandards$ and !egulations enforceable at the time the lan is submitted. 'he same
procedure shall be followed in the case of a plan for a condominium pro"ect e!cept that, in
addition, said Authority shall act upon and approve the plan with respect to the building or
buildings included in the condominium pro"ect in accordance with the #ational 0uilding +ode
4R%A% #o% :<8=5%
'he subdivision plan, as so approved, shall then be submitted to the )irector of >ands for
approval in accordance with the procedure prescribed in Section 88 of the >and Registration Act
4Act #o% 89:, as amended by R%A% #o% 88?5- ,rovided, that it case of comple! subdivision plans,
court approval shall no longer be required% 'he condominium plan as li.ewise so approved, shall
be submitted to the Register of )eeds of the province or city in which the property lies and the
same shall be acted upon sub"ect to the conditions and in accordance with the procedure
prescribed in Section 8 of the +ondominium Act 4R%A% #o% 8@A:5%
'he owner or the real estate dealer interested in the sale of lots or units, respectively, in such
subdivision pro"ect or condominium pro"ect shall register the pro"ect with the Authority by filing
therewith a sworn registration statement containing the following information-
4a5 #ame of the owner;
4b5 'he location of the owner3s principal business office, and if the owner is a non;
resident $ilipino, the name and address of his agent or representative in the ,hilippines is
authoriBed to receive notice;
4c5 'he names and addresses of all the directors and officers of the business firm, if the
owner be a corporation, association, trust, or other entity, and of all the partners, if it be a
partnership;
4d5 'he general character of the business actually transacted or to be transacted by the
owner; and
4e5 A statement of the capitaliBation of the owner, including the authoriBed and
outstanding amounts of its capital stoc. and the proportion thereof which is paid;up%
'he following documents shall be attached to the registration statement-
4a5 A copy of the subdivision plan or condominium plan as approved in accordance with
the first and second paragraphs of this section%
4b5 A copy of any circular, prospectus, brochure, advertisement, letter, or communication
to be used for the public offering of the subdivision lots or condominium units;
4c5 (n case of a business firm, a balance sheet showing the amount and general character
of its assets and liabilities and a copy of its articles of incorporation or articles of
partnership or association, as the case may be, with all the amendments thereof and
e!isting by;laws or instruments corresponding thereto%
4d5 A title to the property which is free from all liens and encumbrances- ,rovided,
however, that in case any subdivision lot or condominium unit is mortgaged, it is
sufficient if the instrument of mortgage contains a stipulation that the mortgagee shall
release the mortgage on any subdivision lot or condominium unit as soon as the full
purchase price for the same is paid by the buyer%
'he person filing the registration statement shall pay the registration fees prescribed therefor by
the Authority%
'hereupon, the Authority shall immediately cause to be published a notice of the filing of the
registration statement at the e!pense of the applicant;owner or dealer, in two newspapers general
circulation, one published in English and another in ,ilipino, once a wee. for two consecutive
wee.s, reciting that a registration statement for the sale of subdivision lots or condominium units
has been filed in the #ational Housing Authority; that the aforesaid registration statement, as
well as the papers attached thereto, are open to inspection during business hours by interested
parties, under such regulations as the Authority may impose; and that copies thereof shall be
furnished to any party upon payment of the proper fees%
'he subdivision pro"ect of the condominium pro"ect shall be deemed registered upon completion
of the above publication requirement% 'he fact of such registration shall be evidenced by a
registration certificate to be issued to the applicant;owner or dealer%
S$%#"o& 5. %icense to sell. Such owner or dealer to whom has been issued a registration
certificate shall not, however, be authoriBed to sell any subdivision lot or condominium unit in
the registered pro"ect unless he shall have first obtained a license to sell the pro"ect within two
wee.s from the registration of such pro"ect%
'he Authority, upon proper application therefor, shall issue to such owner or dealer of a
registered pro"ect a license to sell the pro"ect if, after an e!amination of the registration statement
filed by said owner or dealer and all the pertinent documents attached thereto, he is convinced
that the owner or dealer is of good repute, that his business is financially stable, and that the
proposed sale of the subdivision lots or condominium units to the public would not be fraudulent%
S$%#"o& 6. "erformance &ond. #o license to sell subdivision lots or condominium units shall be
issued by the Authority under Section < of this )ecree unless the owner or dealer shall have filed
an adequate performance bond approved by said Authority to guarantee the construction and
maintenance of the roads, gutters, drainage, sewerage, water system, lighting systems, and full
development of the subdivision pro"ect or the condominium pro"ect and the compliance by the
owner or dealer with the applicable laws and rules and regulations%
'he performance bond shall be e!ecuted in favor of the Republic of the ,hilippines and shall
authoriBe the Authority to use the proceeds thereof for the purposes of its underta.ing in case of
forfeiture as provided in this )ecree%
S$%#"o& 7. 'xemt transactions. A license to sell and performance bond shall not be required in
any of the following transactions-
4a5 Sale of a subdivision lot resulting from the partition of land among co;owners and co;
heirs%
4b5 Sale or transfer of a subdivision lot by the original purchaser thereof and any
subsequent sale of the same lot%
4c5 Sale of a subdivision lot or a condominium unit by or for the account of a mortgagee
in the ordinary course of business when necessary to liquidate a bona fide debt%
S$%#"o& ). #usension of license to sell. /pon verified complaint by a buyer of a subdivision lot
or a condominium unit in any interested party, the Authority may, in its discretion, immediately
suspend the owner3s or dealer3s license to sell pending investigation and hearing of the case as
provided in Section =C hereof%
'he Authority may motu proprio suspend the license to sell if, in its opinion, any information in
the registration statement filed by the owner or dealer is or has become misleading, incorrect,
inadequate or incomplete or the sale or offering for a sale of the subdivision or condominium
pro"ect may wor. or tend to wor. a fraud upon prospective buyers%
'he suspension order may be lifted if, after notice and hearing, the Authority is convinced that
the registration statement is accurate or that any deficiency therein has been corrected or
supplemented or that the sale to the public of the subdivision or condominium pro"ect will
neither be fraudulent not result in fraud% (t shall also be lifted upon dismissal of the complaint for
lac. of legal basis%
/ntil the final entry of an order of suspension, the suspension of the right to sell the pro"ect,
though binding upon all persons notified thereof, shall be deemed confidential unless it shall
appear that the order of suspension has in the meantime been violated%
S$%#"o& 9. !evocation of registration certificate and license to sell. 'he Authority may, motu
proprio or upon verified complaint filed by a buyer of a subdivision lot or condominium unit,
revo.e the registration of any subdivision pro"ect or condominium pro"ect and the license to sell
any subdivision lot or condominium unit in said pro"ect by issuing an order to this effect, with
his findings in respect thereto, if upon e!amination into the affairs of the owner or dealer during
a hearing as provided for in Section =8 hereof, if shall appear there is satisfactory evidence that
the said owner or dealer-
4a5 (s insolvent; or
4b5 has violated any of the provisions of this )ecree or any applicable rule or regulation
of the Authority, or any underta.ing of hisits performance bond; or
4c5 Has been or is engaged or is about to engage in fraudulent transactions; or
4d5 Has made any misrepresentation in any prospectus, brochure, circular or other
literature about the subdivision pro"ect or condominium pro"ect that has been distributed
to prospective buyers; or
4e5 (s of bad business repute; or
4f5 )oes not conduct his business in accordance with law or sound business principles%
Where the owner or dealer is a partnership or corporation or an unincorporated association, it
shall be sufficient cause for cancellation of its registration certificate and its license to sell, if any
member of such partnership or any officer or director of such corporation or association has been
guilty of any act or omission which would be cause for refusing or revo.ing the registration of an
individual dealer, bro.er or salesman as provided in Section == hereof%
S$%#"o& 1*. !egisters of subdivision lots and condominium units. A record of subdivision lots
and condominium units shall be .ept in the Authority wherein shall be entered all orders of the
Authority affecting the condition or status thereof% 'he registers of subdivision lots and
condominium units shall be open to public inspection sub"ect to such reasonable rules as the
Authority may prescribe%
T"#l$ III
DEALERS, BRO+ERS AND SALES!EN
S$%#"o& 11. !egistration of dealers, bro(ers and salesmen. #o real estate dealer, bro.er or
salesman shall engage in the business of selling subdivision lots or condominium units unless he
has registered himself with the Authority in accordance with the provisions of this section%
(f the Authority shall find that the applicant is of good repute and has complied with the
applicable rules of the Authority, including the payment of the prescribed fee, he shall register
such applicant as a dealer, bro.er or salesman upon filing a bond, or other security in lieu
thereof, in such sum as may be fi!ed by the Authority conditioned upon his faithful compliance
with the provisions of this )ecree- ,rovided, that the registration of a salesman shall cease upon
the termination of his employment with a dealer or bro.er%
Every registration under this section shall e!pire on the thirty;first day of )ecember of each year%
Renewal of registration for the succeeding year shall be granted upon written application therefor
made not less than thirty nor more than si!ty days before the first day of the ensuing year and
upon payment of the prescribed fee, without the necessity of filing further statements or
information, unless specifically required by the Authority% All applications filed beyond said
period shall be treated as original applications%
'he names and addresses of all persons registered as dealers, bro.ers, or salesmen shall be
recorded in a Register of 0ro.ers, )ealers and Salesmen .ept in the Authority which shall be
open to public inspection%
S$%#"o& 12. !evocation of registration as dealers, bro(ers or salesmen. Registration under the
preceding section may be refused or any registration granted thereunder, revo.ed by the
Authority if, after reasonable notice and hearing, it shall determine that such applicant or
registrant-
=% Has violated any provision of this )ecree or any rule or regulation made hereunder; or
A% Has made a material false statement in his application for registration; or
C% Has been guilty of a fraudulent act in connection with any sale of a subdivision lot or
condominium unit; or
8% Has demonstrated his unworthiness to transact the business of dealer, bro.er, or
salesman, as the case may be%
(n case of charges against a salesman, notice thereof shall also be given the bro.er or dealer
employing such salesman%
,ending hearing of the case, the Authority shall have the power to order the suspension of the
dealer3s, bro.er3s, of salesman3s registration; provided, that such order shall state the cause for
the suspension%
'he suspension or revocation of the registration of a dealer or bro.er shall carry with it all the
suspension or revocation of the registrations of all his salesmen%
T"#l$ I
PROCEDURE FOR REOCATION OF REGISTRATION CERTIFICATE
S$%#"o& 1'. Hearing. (n the hearing for determining the e!istence of any ground or grounds for
the suspension andor revocation of registration certificate and license to sell as provided in
Section D and 9 hereof, the following shall be complied with-
4a5 #otice% #o such hearing shall proceed unless the respondent is furnished with a copy
of the complaint against him or is notified in writing of the purpose of such hearing%
4b5 1enue% 'he hearing may be held before the officer or officers designated by the
Authority on the date and place specified in the notice%
4c5 #ature of proceeding% 'he proceedings shall be non;litigious and summary in nature
without regard to legal technicalities obtaining in courts of law% 'he Rules of court shall
not apply in said hearing e!cept by analogy or in a suppletory character and whenever
practicable and convenient%
4d5 ,ower incidental to the hearing% $or the purpose of the hearing or other proceeding
under this )ecree, the officer or officers designated to hear the complaint shall have the
power to administer oaths, subpoena witnesses, conduct ocular inspections, ta.e
depositions, and require the production of any boo., paper, correspondence,
memorandum, or other record which are deemed relevant or material to the inquiry%
S$%#"o& 1(. )ontemt.
4a5 )irect contempt% 'he officer or officers designated by the Authority to hear the
complaint may summarily ad"udge in direct contempt any person guilty of misbehavior in
the presence of or so near the said hearing officials as to obstruct or interrupt the
proceedings before the same or of refusal to be sworn or to answer as a witness or to
subscribe an affidavit or deposition when lawfully required to do so% 'he person found
guilty of direct contempt under this section shall be punished by a fine not e!ceeding
$ifty 4,<?%??5 ,esos or imprisonment not e!ceeding five 4<5 days, or both%
4b5 (ndirect contempt% 'he officer or officers designated to hear the complaint may also
ad"udge any person in indirect contempt on grounds and in the manner prescribed in Rule
@= of the Revised Rules of +ourt%
S$%#"o& 15. Decision. 'he case shall be decided within thirty 4C?5 days from the time the same is
submitted for decision% 'he )ecision may order the revocation of the registration of the
subdivision or condominium pro"ect, the suspension, cancellation, or revocation of the license to
sell andor forfeiture, in whole or in part, of the performance bond mentioned in Section :
hereof% (n case forfeiture of the bond is ordered, the )ecision may direct the provincial or city
engineer to underta.e or cause the construction of roads and of other requirements for the
subdivision or condominium as stipulated in the bond, chargeable to the amount forfeited% Such
decision shall be immediately e!ecutory and shall become final after the lapse of =< days from
the date of receipt of the )ecision%
S$%#"o& 16. )ease and Desist *rder. Whenever it shall appear to the Authority that any person is
engaged or about to engage in any act or practice which constitutes or will constitute a violation
of the provisions of this )ecree, or of any rule or regulation thereunder, it may, upon due notice
and hearing as provided in Section =C hereof, issue a cease and desist order to en"oin such act or
practices%
S$%#"o& 17. !egistration% All contracts to sell, deeds of sale and other similar instruments relative
to the sale or conveyance of the subdivision lots and condominium units, whether or not the
purchase price is paid in full, shall be registered by the seller in the &ffice of the Register of
)eeds of the province or city where the property is situated%
Whenever a subdivision plan duly approved in accordance with Section 8 hereof, together with
the corresponding owner3s duplicate certificate of title, is presented to the Register of )eeds for
registration, the Register of )eeds shall register the same in accordance with the provisions of
the >and Registration Act, as amended- ,rovided, however, that it there is a street, passageway
or required open space delineated on a comple! subdivision plan hereafter approved and as
defined in this )ecree, the Register of )eeds shall annotate on the new certificate of title
covering the street, passageway or open space, a memorandum to the effect that e!cept by way
of donation in favor of a city or municipality, no portion of any street, passageway, or open space
so delineated on the plan shall be closed or otherwise disposed of by the registered owner
without the requisite approval as provided under Section AA of this )ecree%
S$%#"o& 1). +ortgages. #o mortgage on any unit or lot shall be made by the owner or developer
without prior written approval of the Authority% Such approval shall not be granted unless it is
shown that the proceeds of the mortgage loan shall be used for the development of the
condominium or subdivision pro"ect and effective measures have been provided to ensure such
utiliBation% 'he loan value of each lot or unit covered by the mortgage shall be determined and
the buyer thereof, if any, shall be notified before the release of the loan% 'he buyer may, at his
option, pay his installment for the lot or unit directly to the mortgagee who shall apply the
payments to the corresponding mortgage indebtedness secured by the particular lot or unit being
paid for, with a view to enabling said buyer to obtain title over the lot or unit promptly after full
payment thereto;
S$%#"o& 19. Advertisements. Advertisements that may be made by the owner or developer
through newspaper, radio, television, leaflets, circulars or any other form about the subdivision
or the condominium or its operations or activities must reflect the real facts and must be
presented in such manner that will not tend to mislead or deceive the public%
'he owner or developer shall answerable and liable for the facilities, improvements,
infrastructures or other forms of development represented or promised in brochures,
advertisements and other sales propaganda disseminated by the owner or developer or his agents
and the same shall form part of the sales warranties enforceable against said owner or developer,
"ointly and severally% $ailure to comply with these warranties shall also be punishable in
accordance with the penalties provided for in this )ecree%
S$%#"o& 2*. Time of )omletion. Every owner or developer shall construct and provide the
facilities, improvements, infrastructures and other forms of development, including water supply
and lighting facilities, which are offered and indicated in the approved subdivision or
condominium plans, brochures, prospectus, printed matters, letters or in any form of
advertisement, within one year from the date of the issuance of the license for the subdivision or
condominium pro"ect or such other period of time as may be fi!ed by the Authority%
S$%#"o& 21. #ales "rior to Decree. (n cases of subdivision lots or condominium units sold or
disposed of prior to the effectivity of this )ecree, it shall be incumbent upon the owner or
developer of the subdivision or condominium pro"ect to complete compliance with his or its
obligations as provided in the preceding section within two years from the date of this )ecree
unless otherwise e!tended by the Authority or unless an adequate performance bond is filed in
accordance with Section : hereof%
$ailure of the owner or developer to comply with the obligations under this and the preceding
provisions shall constitute a violation punishable under Sections CD and C9 of this )ecree%
S$%#"o& 22. Alteration of "lans. #o owner or developer shall change or alter the roads, open
spaces, infrastructures, facilities for public use andor other form of subdivision development as
contained in the approved subdivision plan andor represented in its advertisements, without the
permission of the Authority and the written conformity or consent of the duly organiBed
homeowners association, or in the absence of the latter, by the ma"ority of the lot buyers in the
subdivision%
S$%#"o& 2'. Non,-orfeiture of "ayments. #o installment payment made by a buyer in a
subdivision or condominium pro"ect for the lot or unit he contracted to buy shall be forfeited in
favor of the owner or developer when the buyer, after due notice to the owner or developer,
desists from further payment due to the failure of the owner or developer to develop the
subdivision or condominium pro"ect according to the approved plans and within the time limit
for complying with the same% Such buyer may, at his option, be reimbursed the total amount paid
including amortiBation interests but e!cluding delinquency interests, with interest thereon at the
legal rate%
S$%#"o& 2(. -ailure to ay installments. 'he rights of the buyer in the event of this failure to pay
the installments due for reasons other than the failure of the owner or developer to develop the
pro"ect shall be governed by Republic Act #o% :<<A%
Where the transaction or contract was entered into prior to the effectivity of Republic Act #o%
:<<A on August A:, =9@A, the defaulting buyer shall be entitled to the corresponding refund
based on the installments paid after the effectivity of the law in the absence of any provision in
the contract to the contrary%
S$%#"o& 25. .ssuance of Title. 'he owner or developer shall deliver the title of the lot or unit to
the buyer upon full payment of the lot or unit% #o fee, e!cept those required for the registration
of the deed of sale in the Registry of )eeds, shall be collected for the issuance of such title% (n
the event a mortgage over the lot or unit is outstanding at the time of the issuance of the title to
the buyer, the owner or developer shall redeem the mortgage or the corresponding portion
thereof within si! months from such issuance in order that the title over any fully paid lot or unit
may be secured and delivered to the buyer in accordance herewith%
S$%#"o& 26. !ealty Tax. Real estate ta! and assessment on a lot or unit shall de paid by the owner
or developer without recourse to the buyer for as long as the title has not passed the buyer;
,rovided, however, that if the buyer has actually ta.en possession of and occupied the lot or unit,
he shall be liable to the owner or developer for such ta! and assessment effective the year
following such ta.ing of possession and occupancy%
S$%#"o& 27. *ther )harges. #o owner or developer shall levy upon any lot or buyer a fee for an
alleged community benefit% $ees to finance services for common comfort, security and sanitation
may be collected only by a properly organiBed homeowners association and only with the
consent of a ma"ority of the lot or unit buyers actually residing in the subdivision or
condominium pro"ect%
S$%#"o& 2). Access to "ublic *ffices in the #ubdivisions. #o owner or developer shall deny any
person free access to any government office or public establishment located within the
subdivision or which may be reached only by passing through the subdivision%
S$%#"o& 29. !ight of Way to "ublic !oad. 'he owner or developer of a subdivision without
access to any e!isting public road or street must secure a right of way to a public road or street
and such right of way must be developed and maintained according to the requirement of the
government and authorities concerned%
S$%#"o& '*. *rgani/ation of Homeowners Association. 'he owner or developer of a subdivision
pro"ect or condominium pro"ect shall initiate the organiBation of a homeowners association
among the buyers and residents of the pro"ects for the purpose of promoting and protecting their
mutual interest and assist in their community development%
S$%#"o& '1. Donations of roads and oen saces to local government. 'he registered owner or
developer of the subdivision or condominium pro"ect, upon completion of the development of
said pro"ect may, at his option, convey by way of donation the roads and open spaces found
within the pro"ect to the city or municipality wherein the pro"ect is located% /pon acceptance of
the donation by the city or municipality concerned, no portion of the area donated shall thereafter
be converted to any other purpose or purposes unless after hearing, the proposed conversion is
approved by the Authority%
S$%#"o& '2. "hases of #ubdivision. $or purposes of complying with the provisions of this )ecree,
the owner or developer may divide the development and sale of the subdivision into phases, each
phase to cover not less than ten hectares% 'he requirement imposed by this )ecree on the
subdivision as a whole shall be deemed imposed on each phase%
S$%#"o& ''. Nullity of waivers. Any condition, stipulation, or provision in contract of sale
whereby any person waives compliance with any provision of this )ecree or of any rule or
regulation issued thereunder shall be void%
S$%#"o& '(. 0isitorial owers. 'his Authority, through its duly authoriBed representative may, at
any time, ma.e an e!amination into the business affairs, administration, and condition of any
person, corporation, partnership, cooperative, or association engaged in the business of selling
subdivision lots and condominium units% $or this purpose, the official authoriBed so to do shall
have the authority to e!amine under oath the directors, officers, stoc.holders or members of any
corporation, partnership, association, cooperative or other persons associated or connected with
the business and to issue subpoena or subpoena duces tecum in relation to any investigation that
may arise therefrom%
'he Authority may also authoriBe the ,rovincial, +ity or *unicipal Engineer, as the case may
be, to conduct an ocular inspection of the pro"ect to determine whether the development of said
pro"ect conforms to the standards and specifications prescribed by the government%
'he boo.s, papers, letters, and other documents belonging to the person or entities herein
mentioned shall be open to inspection by the Authority or its duly authoriBed representative%
S$%#"o& '5. Ta(e,over Develoment. 'he Authority, may ta.e over or cause the development and
completion of the subdivision or condominium pro"ect at the e!penses of the owner or developer,
"ointly and severally, in cases where the owner or developer has refused or failed to develop or
complete the development of the pro"ect as provided for in this )ecree%
'he Authority may, after such ta.e;over, demand, collect and receive from the buyers the
installment payments due on the lots, which shall be utiliBed for the development of the
subdivision%
S$%#"o& '6. !ules and !egulations. 'he Authority shall issue the necessary standards, rules and
regulations for the effective implementation of the provisions of this )ecree% Such standards,
rules and regulations shall ta.e effect immediately after their publication three times a wee. for
two consecutive wee.s in any newspaper of general circulation%
S$%#"o& '7. Deuti/ation of law enforcement agencies. 'he Authority may deputiBe the
,hilippine +onstabulary or any law enforcement agency in the e!ecution of its final orders,
rulings or decisions%
S$%#"o& '). Administrative -ines. 'he Authority may prescribe and impose fines not e!ceeding
ten thousand pesos for violations of the provisions of this )ecree or of any rule or regulation
thereunder% $ines shall be payable to the Authority and enforceable through writs of e!ecution in
accordance with the provisions of the Rules of +ourt%
S$%#"o& '9. "enalties. Any person who shall violate any of the provisions of this )ecree andor
any rule or regulation that may be issued pursuant to this )ecree shall, upon conviction, be
punished by a fine of not more than twenty thousand 4,A?,???%??5 pesos andor imprisonment of
not more than ten years- ,rovided, 'hat in the case of corporations, partnership, cooperatives, or
associations, the ,resident, *anager or Administrator or the person who has charge of the
administration of the business shall be criminally responsible for any violation of this )ecree
andor the rules and regulations promulgated pursuant thereto%
S$%#"o& (*. %iability of controlling ersons. Every person who directly or indirectly controls any
person liable under any provision of this )ecree or of any rule or regulation issued thereunder
shall be liable "ointly and severally with and to the same e!tent as such controlled person unless
the controlling person acted in good faith and did not directly or indirectly induce the act or acts
constituting the violation or cause of action%
S$%#"o& (1. *ther remedies. 'he rights and remedies provided in this )ecree shall be in addition
to any and all other rights and remedies that may be available under e!isting laws%
S$%#"o& (2. !eealing clause. All laws, e!ecutive orders, rules and regulations or part thereof
inconsistent with the provisions of this )ecree are hereby repealed or modified accordingly%
S$%#"o& ('. 'ffectivity. 'his )ecree shall ta.e effect upon its approval%
)one in the +ity of *anila, this =Ath day of Euly, in the year of &ur >ord, nineteen hundred and
seventy;si!%
RE,/0>(+ A+' #&% 8@A: E/#E =D, =9::
A# A+' '&DEFINE CONDO!INIU!, ESTABLISH RE,UIRE!ENTS FOR ITS
CREATION, AND GOERN ITS INCIDENTS.
Sec% =% 'he short title of this Act shall be 6'he +ondominium Act7%
Sec% A% 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%
'itle 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 4hereinafter .nown as the 6condominium
corporation75 in which the holders of separate interest shall automatically be members or
shareholders, to the e!clusion of others, in proportion to the appurtenant interest of their
respective units in the common areas%
'he real right in condominium may be ownership or any other interest in real property
recogniBed by law, on property in the +ivil +ode and other pertinent laws%
Sec% C% As used in this Act, unless the conte!t otherwise requires-
4a5 6+ondominium7 means a condominium as defined in the ne!t preceding section%
4b5 6/nit7 means a part of the condominium pro"ect intended for any type of independent use or
ownership, including one or more rooms or spaces located in one or more floors 4or part or parts
of floors5 in a building or buildings and such accessories as may be appended thereto%
4c5 6,ro"ect7 means the entire parcel of real property divided or to be divided in condominiums,
including all structures thereon,
4d5 6+ommon areas7 means the entire pro"ect e!cepting all units separately granted or held or
reserved%
4e5 6'o divide7 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%
Sec% 8% 'he 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 )eeds of the province or city in
which the property lies and duly annotated in the corresponding certificate of title of the land, if
the latter had been patented or registered under either the >and Registration or +adastral Acts, an
enabling or master deed which shall contain, among others, the following-
4a5 )escription of the land on which the building or buildings and improvements are or are to be
located;
4b5 )escription of the building or buildings, stating the number of stories and basements, the
number of units and their accessories, if any;
4c5 )escription of the common areas and facilities;
4d5 A statement of the e!act nature of the interest acquired or to be acquired by the purchaser in
the separate units and in the common areas of the condominium pro"ect% 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;
4e5 Statement of the purposes for which the building or buildings and each of the units are
intended or restricted as to use;
4f5 A certificate of the registered owner of the property, if he is other than those e!ecuting 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;
4g5 'he following plans shall be appended to the deed as integral parts thereof-
4=5 A survey plan of the land included in the pro"ect, unless a survey plan of the same property
had previously bee filed in said office;
4A5 A diagrammatic floor plan of the building or buildings in the pro"ect, in sufficient detail to
identify each unit, its relative location and appro!imate dimensions;
4h5 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%
'he enabling or master deed may be amended or revo.ed upon registration of an instrument
e!ecuted 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% 'he term
6registered owner7 shall include the registered owners of condominiums in the pro"ect% /ntil
registration of a revocation, the provisions of this Act shall continue to apply to such property%
Sec% <% Any transfer or conveyance of a unit or an apartment, office 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-
"rovided, however, 'hat where the common areas in the condominium pro"ect 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 $ilipino citiBens, or corporations at least si!ty percent of the
capital stoc. of which belong to $ilipino citiBens, e!cept in cases of hereditary succession%
Where the common areas in a condominium pro"ect are held by a corporation, no transfer or
conveyance of a unit shall be valid if the concomitant transfer of the appurtenant membership or
stoc.holding in the corporation will cause the alien interest in such corporation to e!ceed the
limits imposed by e!isting laws%
Sec% :% /nless otherwise e!pressly provided in the enabling or master deed or the declaration of
restrictions, the incidents of a condominium grant are as follows-
4a5 'he boundary of the unit granted are the interior surfaces of the perimeter walls, floors,
ceilings, windows and doors thereof% 'he following are not part of the unit bearing walls,
columns, floors, 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, tan.s,
pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and
other utility installations, wherever located, e!cept the outlets thereof when located within the
unit%
4b5 'here shall pass with the unit, as an appurtenance thereof, an e!clusive easement for the use
of the air space encompassed by the boundaries of the unit as it e!ists 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%
4c5 /nless otherwise, provided, the common areas are held in common by the holders of units, in
equal shares, one for each unit%
4d5 A non;e!clusive easement for ingress, egress and support through the common areas is
appurtenant to each unit and the common areas are sub"ect to such easements%
4e5 Each condominium owner shall have the e!clusive right to paint, repaint, tile, wa!, paper or
otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and
doors bounding his own unit%
4f5 Each condominium owner shall have the e!clusive 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%
4g5 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 first offered to the
condominium owners within a reasonable period of time before the same is offered to outside
parties;
Sec% @% E!cept as provided in the following section, the common areas shall remain undivided,
and there shall be no "udicial partition thereof%
Sec% D% Where several persons own condominiums in a condominium pro"ect, an action may be
brought by one or more such persons for partition thereof by sale of the entire pro"ect, as if the
owners of all of the condominiums in such pro"ect were co;owners of the entire pro"ect in the
same proportion as their interests in the common areas-"rovided, however, 'hat a partition shall
be made only upon a showing-
4a5 'hat three years after damage or destruction to the pro"ect which renders material part thereof
unit for its use prior thereto, the pro"ect has not been rebuilt or repaired substantially to its state
prior to its damage or destruction, or
4b5 'hat damage or destruction to the pro"ect 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 pro"ect; or
4c5 'hat the pro"ect has been in e!istence in e!cess of fifty years, that it is obsolete and
uneconomic, and that condominium owners holding in aggregate more than fifty percent interest
in the common areas are opposed to repair or restoration or remodeling or moderniBing of the
pro"ect; or
4d5 'hat the pro"ect or a material part thereof has been condemned or e!propriated and that the
pro"ect 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 e!propriation or condemnation of a material portion thereof; or
4e5 'hat 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%
Sec% 9% 'he owner of a pro"ect shall, prior to the conveyance of any condominium therein,
register a declaration of restrictions relating to such pro"ect, which restrictions shall constitute a
lien upon each condominium in the pro"ect, and shall insure to and bind all condominium owners
in the pro"ect% Such liens, unless otherwise provided, may be enforced by any condominium
owner in the pro"ect or by the management body of such pro"ect% 'he Register of )eeds shall
enter and annotate the declaration of restrictions upon the certificate of title covering the land
included within the pro"ect, if the land is patented or registered under the >and Registration or
+adastral Acts%
'he declaration of restrictions shall provide for the management of the pro"ect 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% (t shall also provide for voting ma"orities
quorums, notices, meeting date, and other rules governing such body or bodies%
Such declaration of restrictions, among other things, may also provide-
4a5 As to any such management body;
4=5 $or the powers thereof, including power to enforce the provisions of the declarations of
restrictions;
4A5 $or maintenance of insurance policies, insuring condominium owners against loss by fire,
casualty, liability, wor.men3s compensation and other insurable ris.s, and for bonding of the
members of any management body;
4C5 ,rovisions for maintenance, utility, gardening and other services benefiting the common
areas, for the employment of personnel necessary for the operation of the building, and legal,
accounting and other professional and technical services;
485 $or purchase of materials, supplies and the li.e needed by the common areas;
4<5 $or payment of ta!es and special assessments which would be a lien upon the entire pro"ect
or common areas, and for discharge of any lien or encumbrance levied against the entire pro"ect
or the common areas;
4:5 $or reconstruction of any portion or portions of any damage to or destruction of the pro"ect;
4@5 'he manner for delegation of its powers;
4D5 $or entry by its officers and agents into any unit when necessary in connection with the
maintenance or construction for which such body is responsible;
495 $or a power of attorney to the management body to sell the entire pro"ect for the benefit of all
of the owners thereof when partition of the pro"ect may be authoriBed under Section D 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%
4b5 'he manner and procedure for amending such restrictions- "rovided, 'hat the vote of not less
than a ma"ority in interest of the owners is obtained%
4c5 $or independent audit of the accounts of the management body;
4d5 $or reasonable assessments to meet authoriBed e!penditures, each condominium unit to be
assessed separately for its share of such e!penses in proportion 4unless otherwise provided5 to its
owners fractional interest in any common areas;
4e5 $or the subordination of the liens securing such assessments to other liens either generally or
specifically described;
4f5 $or conditions, other than those provided for in Sections eight and thirteen of this Act, upon
which partition of the pro"ect 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 specified inadequacy of insurance proceeds, or
upon specified percentage of damage to the building, or upon a decision of an arbitrator, or upon
any other reasonable condition%
Sec% =?% Whenever the common areas in a condominium pro"ect are held by a condominium
corporation, such corporation shall constitute the management body of the pro"ect% 'he 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 recogniBed by law, to the management of the
pro"ect, and to such other purposes as may be necessary, incidental or convenient to the
accomplishment of said purposes% 'he 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 pro"ect% *embership in a
condominium corporation, regardless of whether it is a stoc. or non;stoc. corporation, shall not
be transferable separately from the condominium unit of which it is an appurtenance% When a
member or stoc.holder ceases to own a unit in the pro"ect in which the condominium corporation
owns or holds the common areas, he shall automatically cease to be a member or stoc.holder of
the condominium corporation%
Sec% ==% 'he term of a condominium corporation shall be co;terminus with the duration of the
condominium pro"ect, the provisions of the +orporation >aw to the contrary notwithstanding%
Sec% =A% (n 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 stoc.holders thereof, sub"ect 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
stoc.holders in the corporation% After such transfer or conveyance, the provisions of this Act
governing undivided co;ownership of, or undivided interest in, the common areas in
condominium pro"ects shall fully apply%
Sec% =C% /ntil the enabling or the master deed of the pro"ect in which the condominium
corporation owns or holds the common area is revo.ed, the corporation shall not be voluntarily
dissolved through an action for dissolution under Rule =?8 of the Rules of +ourt e!cept upon a
showing-
4a5 'hat three years after damage or destruction to the pro"ect in which the corporation owns or
holds the common areas, which damage or destruction renders a material part thereof unfit for its
use prior thereto, the pro"ect has not been rebuilt or repaired substantially to its state prior to its
damage or destruction; or
4b5 'hat damage or destruction to the pro"ect 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;stoc., or
the shareholders representing more than thirty percent of the capital stoc. entitled to vote, if a
stoc. corporation, are opposed to the repair or reconstruction of the pro"ect, or
4c5 'hat the pro"ect has been in e!istence in e!cess of fifty years, that it is obsolete and
uneconomical, and that more than fifty percent of the members of the corporation, if non;stoc.,
or the stoc.holders representing more than fifty percent of the capital stoc. entitled to vote, if a
stoc. corporation, are opposed to the repair or restoration or remodeling or moderniBing of the
pro"ect; or
4d5 'hat the pro"ect or a material part thereof has been condemned or e!propriated and that the
pro"ect is no longer viable, or that the members holding in aggregate more than seventy percent
interest in the corporation, if non;stoc., or the stoc.holders representing more than seventy
percent of the capital stoc. entitled to vote, if a stoc. corporation, are opposed to the
continuation of the condominium regime after e!propriation or condemnation of a material
portion thereof; or
4e5 'hat the conditions for such a dissolution set forth in the declaration of restrictions of the
pro"ect in which the corporation owns of holds the common areas, have been met%
Sec% =8% 'he condominium corporation may also be dissolved by the affirmative vote of all the
stoc.holders or members thereof at a general or special meeting duly called for the purpose-
"rovided, 'hat all the requirements of Section si!ty;two of the +orporation >aw are complied
with%
Sec% =<% /nless 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 stoc.holders to sell and dispose of their separate interests in the pro"ect and
liquidation of the corporation shall be effected by a sale of the entire pro"ect as if the corporation
owned the whole thereof, sub"ect to the rights of the corporate and of individual condominium
creditors%
Sec% =:% A condominium corporation shall not, during its e!istence, sell, e!change, lease or
otherwise dispose of the common areas owned or held by it in the condominium pro"ect unless
authoriBed by the affirmative vote of all the stoc.holders or members%
Sec% =@% Any provision of the +orporation >aw to the contrary notwithstanding, the by;laws of a
condominium corporation shall provide that a stoc.holder or member shall not be entitled to
demand payment of his shares or interest in those cases where such right is granted under the
+orporation >aw unless he consents to sell his separate interest in the pro"ect to the corporation
or to any purchaser of the corporation3s choice who shall also buy from the corporation the
dissenting member or stoc.holder3s interest% (n case of disagreement as to price, the procedure
set forth in the appropriate provision of the +orporation >aw for valuation of shares shall be
followed% 'he 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 e!penses incurred in the liquidation of the
interest of the dissenting member or stoc.holder shall be borne by him%
Sec% =D% /pon registration of an instrument conveying a condominium, the Register of )eeds
shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of
title covering the land included within the pro"ect and the transferee shall be entitled to the
issuance of a 6condominium owner3s7 copy of the pertinent portion of such certificate of title%
Said 6condominium owner3s7 copy need not reproduce the ownership status or series of
transactions in force or annotated with respect to other condominiums in the pro"ect% 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 sufficient for purposes of the 6condominium
owner3s7 copy of the certificate of title% #o conveyance of condominiums or part thereof,
subsequent to the original conveyance thereof from the owner of the pro"ect, shall be registered
unless accompanied by a certificate of the management body of the pro"ect that such conveyance
is in accordance with the provisions of the declaration of restrictions of such pro"ect%
(n cases of condominium pro"ects registered under the provisions of the Spanish *ortgage >aw
or Act CC88, as amended, the registration of the deed of conveyance of a condominium shall be
sufficient if the Register of )eeds shall .eep the original or signed copy thereof, together with
the certificate of the management body of the pro"ect, and return a copy of the deed of
conveyance to the condominium owner duly ac.nowledge and stamped by the Register of )eeds
in the same manner as in the case of registration of conveyances of real property under said laws%
Sec% =9% Where the enabling or master deed provides that the land included within a
condominium pro"ect are to be owned in common by the condominium owners therein, the
Register of )eeds may, at the request of all the condominium owners and upon surrender of all
their 6condominium owner3s7 copies, cancel the certificates of title of the property and issue a
new one in the name of said condominium owners as pro;indiviso co;owners thereof%
Sec% A?% 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% 'he amount of any such assessment plus any other charges thereon, such as interest, costs
4including attorney3s fees5 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 )eeds of the city or
province where such condominium pro"ect is located% 'he notice shall state the amount of such
assessment and such other charges thereon a may be authoriBed 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 authoriBed representative of the
management body or as otherwise provided in the declaration of restrictions% /pon payment of
said assessment and charges or other satisfaction thereof, the management body shall cause to be
registered a release of the lien%
Such lien shall be superior to all other liens registered subsequent to the registration of said
notice of assessment e!cept real property ta! liens and e!cept 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 "udicial or e!tra;
"udicial foreclosure of mortgages of real property% /nless otherwise provided for in the
declaration of restrictions, the management body shall have power to bid at foreclosure sale% 'he
condominium owner shall have the same right of redemption as in cases of "udicial or e!tra;
"udicial foreclosure of mortgages%
Sec% A=% #o 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 e!pressly consented to or requested the performance of such labor or furnishing of
such materials or services% Such e!press consent shall be deemed to have been given by the
owner of any condominium in the case of emergency repairs of his condominium unit% >abor
performed or services or materials furnished for the common areas, if duly authoriBed by the
management body provided for in a declaration of restrictions governing the property, shall be
deemed to be performed or furnished with the e!press consent of each condominium owner% 'he
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 which is attributable to his condominium unit%
Sec% AA% /nless otherwise provided for by the declaration of restrictions, the management body,
provided for herein, may acquire and hold, for the benefit of the condominium owners, tangible
and intangible personal property and may dispose of the same by sale or otherwise; and the
beneficial 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 transferor3s beneficial interest in such personal
property%
Sec% AC% Where, in an action for partition of a condominium pro"ect or for the dissolution of
condominium corporation on the ground that the pro"ect or a material part thereof has been
condemned or e!propriated, the +ourt finds that the conditions provided for in this Act or in the
declaration of restrictions have not been met, the +ourt may decree a reorganiBation of the
pro"ect, declaring which portion or portions of the pro"ect shall continue as a condominium
pro"ect, the owners thereof, and the respective rights of said remaining owners and the "ust
compensation, if any, that a condominium owner may be entitled to due to deprivation of his
property% /pon receipt of a copy of the decree, the Register of )eeds shall enter and annotate the
same on the pertinent certificate of title%
Sec% A8% Any deed, declaration or plan for a condominium pro"ect shall be liberally construed to
facilitate the operation of the pro"ect, and its provisions shall be presumed to be independent and
severable%
Sec% A<% Whenever real property has been divided into condominiums, each condominium
separately owned shall be separately assessed, for purposes of real property ta!ation and other
ta! purposes to the owners thereof and the ta! on each such condominium shall constitute a lien
solely thereon%
Sec% A:% All Acts or parts of Acts in conflict or inconsistent with this Act are hereby amended
insofar as condominium and its incidents are concerned%
Sec% A@% 'his Act shall ta.e effect upon its approval%
Approved- Eune =D, =9::