Q: What is the difference between selling of Condominiums from selling House & Lot?
A: In condominiums, what is sold is the condominium unit and a portion of the land on which the condominium stands. Hence, in a condominium set-up, each buyer becomes an owner of the condominium unit and a part owner of the condominium corporation which owns the land. In a house and lot, the buyer becomes the full owner of both the house and the lot on which the house is constructed.
Q: What is a Condominium Corporation?
A: A condominium corporation is the legal entity that is established/incorporated by the developer for and in behalf of the unit owners of a condominium project. It is established for the purpose of holding title to the land and the common areas of the condominium project.
Q: What is the difference of CCT from TCT?
A: A CCT is a Condominium Certificate of Title which is the title being issued to condominium unit owners as proof of their ownership, while the TCT is the Transfer Certificate of Title, which is the title issued to owners of parcels of land.
Q: What are the advantages of Condominium Ownership?
A: Condominium ownership:
• Enhances affordability.
• Accessibility to the amenities of the city.
• Provides better security.
• Maximizes land utilization.
• Provides lesser costs of facilities, services and maintenance.
• Encourages closer neighborhood relationship.
Q: What are the rights of a Condominium Unit Owner?
A: A condominium unit owner has the following rights:
• Absolute ownership of his unit.
• Ownership of the land and common areas in proportion to the unit/s owned.
• Exclusive easement of the air space within his unit.
• Non-exclusive easement to common areas for ingress and egress.
• Repair, decorate the inner surfaces of his unit as he pleases.
• Sell, lease or mortgage his unit.
• Vote and be voted upon during the meetings of the condominium corporation.
Q: What are the obligations of a Condominium Unit Owner?
A: Each condominium unit owner shall have the following obligations:
• Pay realty tax on his unit.
• Share in the realty tax on land and common areas.
• Pay insurance on his unit.
• Share in the insurance on the common areas.
• Comply with the Master Deed and House Rules of the Condominium Project.
• Pay dues and assessments.
• Give right of first refusal to condominium corporation or other unit owners in case of sale or lease of his unit (if so required by the master deed).
Q: What are the consequences of non-payment of Assessments?
A: Non-payment of assessments shall have the following consequences:
• Condominium Corporation may constitute a lien on the condominium unit by registering with the Register of Deeds a notice of assessment and delinquency. A lien may be enforced in the same manner provided by law for the judicial or extrajudicial foreclosure of mortgage of real property.
• Condominium Corporation may exercise such remedies as provided in the Master Deed such as: (1) disconnection of power, water and other utility supplies; (2) suspension of the rights of the delinquent unit owner (ie. vote and be voted upon during the meetings of the condominium corporation)
Q: What is the life span of a Condominium Corporation?
A: The life of the condominium corporation shall be co-terminus with the life of the condominium project unless earlier dissolved. In the event that the condominium is dissolved at the expiration of the corporate term, the unit owners will not lose ownership of their units. They will remain to be owners of their respective units. Proof of this is the Condominium Certificate of Title (CCT) which is issued to them as evidence of their ownership. The CCTs are neither revoked nor canceled upon dissolution of the condo corp. Just like any other corporation, it is the condominium corporation which will cease to exist, and the assets of the condominium corporation including the land and the common areas (such as clubhouse, parks, corridors, etc.) will be divided in accordance with the shareholders'/members' respective interests. If such event happens, all unit buyers will become co-owners of the assets of the condo corp. and of the land and the common areas of the condominium project.
Q: What is Master Deed of Restrictions?
A: The Master Deed is the basic condominium document that must be registered by the developer to the Housing and Land Use regulatory Board (HLURB) prior to the conveyance of the first unit sold. Also referred to as the condominium declaration, the Master Deed thoroughly describes the entire condominium entity, and specifies essential elements of ownership that permanently govern its operation. The Master Deed normally contains the following:
• Description of the land, including a survey plan.
• Description of the buildings with enclosed technical plans.
• Description of the common areas and facilities.
• Description of the interest to be acquired by the unit owner.
• Deed of Restrictions.
• Certification of the registered owner of the property if he is other than the one executing the Master Deed, that he consented to the registration of the deed.
Q: Is the CCT of a parking slot different from the CCT of the unit purchased?
A: It depends. If the parking unit is appurtenant to the condominium unit, then both parking and residential unit are covered by the same CCT. If the parking is not appurtenant to the residential condominium unit, then parking is covered by a separate CCT.
Q: What are condominium dues?
A: Condominium dues are each condominium unit owner’s contribution/share for the payment of expenses incurred by the Condominium Corporation. These expenses include maintenance cost of the common areas, insurance premiums and real property tax for the common areas, expenses on utilities (electricity, water, telephone), etc.