Professional Documents
Culture Documents
COMMON AREAS
Means the entire project excepting all units
separately granted, held or reserved.
Refers the weight bearing walls, columns
and beams, stairways, halls, elevators,
etc.. Including the electrical, water and
plumbing systems and amenities in a
condominium project
TYPES OF COMMON AREAS
GENERAL OR UNDIVIDED not
subject to the exclusive use of any
one or group of owners (swimming
pool, hallways, stairways, elevators,
etc)
LIMITED OR DIVIDED areas
allocated the EXCLUSIVE common
areas use of one or group of unit
owners
EXTENT OF INTEREST IN COMMON AREAS:
1) In the absence of any provision in the
Master Deed, all unit
owners shall have
EQUAL SHARE in the common areas,
2) The Master Deed may provide any of
the following alternatives:
2.1 Equal Sharing
2.2 Sharing Based on VALUE
2.3 Sharing Based on UNIT AREA in
relation to Total Area
COMMON AREA VS. CONDOMINIUM UNIT:
In Limson vs. Wack Wack condominium
Corporation (G.R. No. 188802, 14 February
2011), the Supreme Court held that an
electrical panel, which functions as utility
installation should not be considered as
part of the unit. Instead, it should be
deemed part of the common area since it
functions to serve interests common to the
dwellers. The electrical panels location
inside the unit notwithstanding, it is not
automatically considered as part of it.
CONDOMINIUM
MASTER
DEED
AND
DECLARATION OF RESTRICTIONS
1) Description of the land or lot
2) Description of the building (no. of
storey, units)
3) Description of Common Areas and
Facilities
4) Description of Interest acquired by
the unit owners in the common areas
and land
5) Purposes for which the building and
units are to be used
6) Certification by Registered Owner of
the Property if he is other than those
executing the Master Deed, that he
consents to the registration of the
Deed
7) Deed of Restrictions
8) Annexes, land survey plan and
building diagrammatic or schematic
floor plans
THE DEED OF RESTRICTIONS indicate the
following:
1) Management Body
2) Provision for Insurance Coverage
3) Provision for the maintenance of
Common Areas and Facilities
4) Sharing of Realty Tax on Common
Areas
5) Manner of Amending Restrictions
6) Independent Audit
7) Assessment and dues
8) Project Partitioning and Dissolution of
the Condominium corporation
THE
NEED
FOR
A
CONDOMINIUM
CORPORATION
1) NECESSITY FOR CREATION
- The organization of a Condominium
Corporation is OPTIONAL if no unit
will be sold to Foreigners.
- The Corporation is MANDATORY if
some units, not to exceed 40%, will
be sold to foreigners. In such case,
title to the land shall be transferred
to the Corporation to comply with
the constitutional mandate that
corporations may acquire real
estate provided that least 60% of
the capital or membership is Filipino
2) PURPOSES OF CORPORATION
- to Hold Title to the Land, and Act as
the Management Body
3) CONFLICTS WITH MASTER DEED
- in case of conflict between the
provisions of the Articles of
Incorporation of the condominium
corporation and the Master Deed,
the latter shall prevail based on the
following reasons:
It is the Master Deeds that
gives
birth
to
the
condominium project
the condominium corporation
shall not conflict with the
Master Deed
4)
TERM OF CORPORATION
the life of the condo corporation is
COTERMINOUS with the duration of the
condominium project
5)
EFFECT OF VOLUNTARY DISSOLUTION
The Corporation shall be deemed to
hold a power of attorney from all
its stockholders or members to sell
their separate interest in the
project
Liquidation of the Corporation shall
be affected by the
Sale
of
the entire project subject to
the rights of the corporation and
individual condominium creditors
6)
EFFECT
OF
INVOLUNTARY
DISSOLUTION
CONDOMINIUM
Absolute
ownership over
land and the
unit
Transfer
Certificate
Title (TCT
Condominium
Certificate
of
(CCT
of
Title
Foreigners not
allowed to own
Foreign
ownership
allowed up to 40%
Open
space
requirement
under PD1216
Common
provision
Area
FACTORS
AFFECTING
VALUES
OF
CONDOMINIUM PROJECT OR UNITS
Location: relative location to center of
activity, relative location of the unit within
the project
Classification:
residential, commercial,
industrial
Type of Unit:
regular, corner, single
level, with loft
Size : floor area is ideal to its utility or
HABU
Layout: floor plan lay-out
Design: architectural, floor lay-out, building
features
Depreciation: condition, physical wear and
tear
VALUATION METHODS:
Whether the appraisers assignment of
values involves the valuation of a
condominium unit or several units, or the
entire condominium project, the three
approaches to value can be applied
- Market Data Approach / Sales
Comparison Approach
- Cost Approach
- Income Approach
Therefore,
Therefore, if
Net Floor Area is 80% of Total Bldg. Area = 6,400 square meters
Then, the Average Selling Price is
601,444,000 / 6,400 sq.ms. = P 93,075.625
SAY @ P93,000 per square meter
Conclusion: The project is FEASIBLE
FOR SALES COMPARISON:
If the COMPARABLE IS SUPERIOR, you deduct (-)
If the COMPARABLE IS INFERIOR, you add (+)
VALUATION BY MARKET DATA OR SALES COMPARISON APPROACH:
SUBJEC
T
DATA 1
DATA 2
DATA 3
PRICE
P8,950,00
0
P7,580,0
00
P8,200,0
00
Size (sq.ms.)
120
140
128
134
Floor/Level
14
20
12
16
Finishes
GOOD
BETTER
GOOD
GOOD
Floor Lay-out
GOOD
BETTER
GOOD
BETTER
Ameneties
GOOD
GOOD
FAIR
FAIR
Size
-5%
-2%
-3%
Floor/Level
-5%
2%
-1%
Finishes
-5%
0%
0%
Floor Lay-out
-5%
0%
-2%
Ameneties
0%
5%
1%
TOTAL
ADJUSTMENTS
-20%
5%
5%
P10,740,0
00
P7,959,0
00
P8,610,0
00
ADJUSTMENTS:
ADJUSTED PRICE
P_______
___
= P 624,000
Less Tax: 5% (P31,250)
= P 592,800
Using Direct Capitalization Method = P 592,800.00 x 10%
Therefore, VALUE OF UNIT = P 5,928,000.00
NOTES:
The law governing the protection of buyers who are buying subdivision lots/house
& lots, and condominium units is referred to as SUBDIVISION AND CONDOMINIUM
BUYERS PROTECTIVE DECREE (1976)
Any person directly engaged as principal in the business of selling, or exchanging
real estate whether on full time or part time basis is known as REAL ESTATE
DEALER
A written authorization to develop in a certain area based on an approved land
use plan or ordinance is referred to as LOCATIONAL CLEARANCE
A buyer who failed to pay the installments due for reasons other than the failure
of the owner or developer to develop the project shall be governed by REALTY
INSTALLMENT BUYERS PROTECTION ACT
The buyer may desist from making his monthly payment or amortization to the
developer for non-completion of the project on its completion date provided the
buyer GIVES NOTICE TO THE DEVELOPER
The entire parcel of a real property divided or to be divided in condominium
including structures thereon is known as CONDOMINIUM PROJECT
As owner of a condominium unit, the owner would be liable to pay real estate
taxes ON THE TAXES OF HIS UNIT
The space encompassed by the interior surface of the floor ceiling, walls, and
exterior doors and windows, which is susceptible of independent use and
ownership is known as CONDOMINIUM UNIT
A unit owner does not have the right as a condominium unit owner TO PAY FOR
SHARE IN INSURANCE OF THE CONDO PROJECT
In a mix-use condo project, amendment of the Master Deed shall be decided by
MAJORITY VOTE BASED ON PER UNIT FLOOR AREA
A Notice of Assessment shall considered as a lien on the condominium unit if it is
REGISTERED WITH THE REGISTER OF DEEDS
To register a sale of a condo unit, a CERTIFICATE OF MANAGEMENT must be
secured from the condo corporation
GENERAL COMMON AREA is a part of the condominium which are not subject to
the exclusive use of any of the owners
The law covering the ownership and rights of a unit owner is known as THE
CONDOMINIUM ACT
The areas allocated to the exclusive use of a condominium unit owner like parking
space is known as LIMITED COMMON AREA
A partition by sale may be made provided that damaged or destruction to the
project has rendered one-half or more of the units therein un-tenantable and that
condominium owners with common interest are opposed to repair is more than
30%
The condominium corporation maybe dissolved if the project has been in
existence in excess of 50 years, that it is obsolete and that members of the
corporation are opposed to the repair or restoration or remodeling or modernizing
of the project to the extent of more than 50% OF THE MEMBERS