Everything You Need to Know About Condo Ownership in the Philippines (2021)

Summary

This video explains condo ownership in the Philippines, detailing the rights and responsibilities of condo owners. It covers the two types of ownership—leasehold and freehold—and outlines how owners can sell, rent, or mortgage their units. Renting out a condo is legal, but subject to the rules of the condominium corporation. The video also discusses the role of the condo corporation, the possibility of condo dissolution after 50 years, and how modern materials ensure long-lasting structures. Overall, it emphasizes the importance of condo maintenance and provides valuable insights for potential investors.

Takeaways

• 😀 There are two types of condominium ownership in the Philippines: **Leasehold** and **Freehold**.
• 😀 **Leasehold** ownership is for a fixed period (25-50 years), after which the property is returned to the landowner, while **Freehold** ownership is perpetual and can be inherited.
• 😀 Most developers in the Philippines offer **Freehold** ownership, which is evidenced by a **Condominium Certificate of Title (CCT)**.
• 😀 Filipino citizens, corporations, and foreigners (with a 40% ownership limit) can buy condominiums in the Philippines.
• 😀 When you buy a condo, you automatically become a member of the **Condominium Corporation**, which manages common areas and enforces rules.
• 😀 As a condo owner, you have a say in decisions such as selling the condo project, and you have a share in the property's common areas.
• 😀 You have the right to **sell**, **rent**, **mortgage**, or **renovate** your condo unit, but certain rules and regulations must be followed.
• 😀 Renting out your condo is legal, and you can do so through platforms like Airbnb or via long-term leases, provided it aligns with the condo’s master deed.
• 😀 There are restrictions on what you can do with your unit based on its type (residential, commercial, condotel, etc.), and some activities, like pet breeding, may be prohibited.
• 😀 The **lifespan of a condo** is not strictly limited to 50 years; it can last longer, but if the property becomes obsolete or uninhabitable, it may be dissolved.
• 😀 **Dissolution of a condo** may happen if more than 50% of shareholders oppose restoration, or if it suffers significant damage and has not been repaired for over three years.
• 😀 The **Condominium Corporation** has the authority to manage the property and make decisions regarding maintenance, insurance, and taxes, ensuring the project remains profitable and well-maintained.

Q & A

What are the two types of condominium ownership in the Philippines?

The two types of condominium ownership in the Philippines are leasehold ownership and freehold ownership. Leasehold ownership grants the right to live in the property for a fixed term (usually 25-50 years), while freehold ownership allows permanent ownership and inheritance of the condo unit.

What is the difference between leasehold and freehold ownership in terms of duration?

Leasehold ownership lasts for a fixed period, typically 25-50 years. Freehold ownership, on the other hand, grants ownership in perpetuity, meaning the owner can live in the unit for as long as they want and can pass it on to their heirs.

Who can purchase condominium units in the Philippines?

Condominium units in the Philippines can be purchased by Filipino citizens, corporations, and foreigners. However, foreign ownership is limited to 40% of the total units in a condo project, as per the Condominium Act.

What is the role of a condominium corporation in the Philippines?

A condominium corporation is formed by the condo owners and is responsible for managing the common areas and land of the condo project. It enforces rules, maintains the property, handles taxes and insurance, and manages other collective activities such as rebuilding if necessary.

Can I sell my condo unit freely in the Philippines?

Yes, you can sell your condo unit, but the sale includes the transfer of membership in the condominium corporation. The buyer becomes a shareholder with rights to the common areas and shares in the corporation. The sale must also comply with the rule that no less than 60% of the units are owned by Filipinos.

What are the legal considerations for renting out a condo unit in the Philippines?

Renting out a condo unit is legal in the Philippines, including through platforms like Airbnb. However, you must follow the rules and regulations set by the condominium's master deed, which may impose restrictions on the type of rental or the activities allowed within the unit.

Are there any restrictions on renting out a condo unit for short-term stays like on Airbnb?

Yes, the rules for renting out a condo vary depending on the type of condo and its master deed. For example, condo hotel units cannot be rented out like regular condos because they are operated by hotel management. Each condo project has specific regulations regarding short-term rentals.

What happens if a condo's lifespan exceeds 50 years?

According to Philippine law, a condo's lifespan can exceed 50 years as long as it is not obsolete or uneconomical. A condo can only be dissolved if it meets certain conditions, such as being in poor condition or if more than 50% of the owners oppose its restoration.

Can a condominium project be dissolved before 50 years?

Yes, a condominium project can be dissolved before 50 years if it is deemed obsolete, uneconomical, or if more than 50% of the owners oppose restoring it. Dissolution can also happen due to substantial damage or government condemnation.

What rights do condo owners have when it comes to renovation?

Condo owners have the right to renovate their unit, but only within the boundaries of their unit. Renovations may include painting, tiling, or decorating the interior. Any alterations to common areas or structural modifications usually require approval from the condominium corporation.