CONTRACT OF SALES

(Main reference: New Civil Code)

NATURE, FORMS AND
REQUISITES

(CONTRACT OF SALES)
 CONTRACT OF SALES
Article 1458 of the New Civil Code
One of the contracting parties obligates himself to transfer the ownership
of and to deliver a determinate thing, and the other to pay therefor a price
certain money or its equivalent.
A contract of sale may be absolute or conditional.
 ESSENTIAL ELEMENTS OF A VALID CONTRACT OF SALE

1. Consent or meeting of the minds to transfer ownership in

exchange for the price
(a) Being a consensual contract, the contract of sale is perfected at the moment there is a meeting of
the minds upon the thing which is the object of the contract and upon the price. [Art. 1475]
(b) Requisites: (1) Capacity, (2) Offer and acceptance, and (3) No vitiation of consent

2. Determinate subject matter

3. Price certain in money or its equivalent

 CHARACTERISTICS
OF CONTRACT OF SALE

1.Nominate - law gave it a name

2.Principal - can stand on its own; unlike accessory contract
3.Bilateral - imposes obligation on both parties
a. obligation of seller transfer ownership & deliver
b. obligation of buyer pay for price
Consequence: power to rescind is implied in bilateral contracts
4.Onerous with valuable consideration
Consequence: all doubts in construing contract to be resolved in greater reciprocity of interest
 CHARACTERISTICS
OF CONTRACT OF SALE
5. Commutative equal value is exchanged for equal value
Test: subjective as long as parties in all honesty that he is receiving equal value then it
complies with test & would not be deemed a donation; but must not be absurd.
Inadequacy of price or aleatory character not sufficient ground to cancel
contract of sale; inadequacy can show vitiation of consent & sale may be annulled based on
vice but not on inadequacy
6. Consensual meeting of minds makes a perfect contract of sale but needs delivery to
consummate.
7. Title & not a mode gives rise to an obligation to transfer; it is delivery w/c actually
transfer ownership; mode which actually transfer ownership.
 KINDS OF CONTRACT OF SALE
1. As to presence or absence of conditions
Absolute where the sale is not subject to any condition whatsoever and where the title passes to
the buyer upon delivery of the thing sold.
Conditional where the sale contemplates a contingency and where the contract is subject to
certain conditions, usually in the case of the vendee, for the full payment of the agreed purchase
price.
2. Other kinds
As to the nature of the subject matter real or personal, tangible or intangible
As to the manner of payment cash or installment
As to its validity valid, rescissible, unenforceable, void
DISTINGUISHED FROM OTHER
CONTRACTS

(CONTRACT OF SALES)
 DISTINGUISHED FROM OTHER
CONTRACTS
Sale Dacion en pago
No pre-existing debt Pre-existing debt

Creates an obligation Extinguishes the obligation (mode of

payment)
Price is more freely agreed upon, fixed by the Price is value of the thing given
parties
DISTINGUISHED FROM OTHER CONTRACTS
Sale
Forms of contract
Through the meeting of the minds of
both the buyer and the seller
Governed by law on sales
Payment of the full price releases the
buyer from his responsibility
CESSION IN PAYMENT
Mode of payment
Through the assignment of properties by
the debtor in favor his creditor
Governed by special laws
only release the debtor from
responsibility for the net proceeds of the
things assigned, unless the contrary is
stipulated
 DISTINGUISHED FROM OTHER
CONTRACTS
Sale Contract for a Piece of Work
Goods are manufactured or procured in the Goods are manufactured for customer upon his
ordinary course of business special order
For the general market, whether on hand or not For a specific customer
Habituality test enunciated in Celestino v CIR;
contract of sale if manufacturer engages in activity without need to employ extraordinary skills and equipment; contract for
piece of work is sale of service; contract of sale is sale of things.
Nature of the object test enunciated in EEI v CIR; each products nature of execution differs from the others; products are not
ordinary products of manufacturer.
main factor in decision of the SC: essence of why parties enter into it:
a. essence is object contract of sales;
b. essence is service contract for piece of work
 DISTINGUISHED FROM OTHER
CONTRACTS
Sale Barter
Consideration is price in money or Consideration is another thing
its equivalent
both are governed by law on sales; both are species of the genus sales
if consideration consists party in money & partly by thing look at
manifest intention; if intention is not clear (1468 ):
a. value of thing is equal or less than amount of money sale
b. value of thing is more than amount of money barter
EARNEST MONEY AS DISTINGUISHED FROM
OPTION MONEY

(CONTRACT OF SALES)
 Distinction
OPTION money
Money Separate and distinct consideration
from the purchase price
Option Given when sale is not yet perfected
When given, the would be-buyer is not
required to buy, but may even forfeit it
depending on the terms of the option
Grantee of option is still undecided whether
or not to buy or sell the property [Baviera]
Earnest Money
Part of purchase price [Art 1482, CC]
Given only when there is already a sale
When given, the buyer is bound to pay the
balance
Buyer manifests his earnest desire to buy the
property
RIGHTS/OBLIGATION OF
VENDOR AND VENDEE
(CONTRACT OF SALES)
 Principal Obligations of the
Vendor
1. to transfer the ownership of the determinate thing sold (Art. 1495);
The vendor need not be the owner of the thing at the time of perfection of the contract; it is
sufficient that he has a right to transfer the ownership thereof at the time it is delivered (Art.
1459).
If the seller promised to deliver at a stipulated period and such period is of the essence of the
contract but did not comply with his obligation on time, he has no right to demand payment of
the price.
The vendee-buyer is in fact may ask for the rescission or resolution of the sale.
If the failure of the seller to deliver on time is not due to his fault, as when it was the buyer who
failed to supply the necessary credit for the transportation of the goods, delay on the part of the
seller may be said to be sufficiently excused.
 Principal Obligations of the
Vendor
2. to deliver the thing, with its accessions and accessories, if any, in the
condition in which they were upon the perfection of the contract (Art. 1537);
3. to warrant against eviction and against hidden defects (Arts. 1495,
1547);
4. to take care of the thing, pending delivery, with proper diligence (Art.
1163);
5. to pay for the expenses of the deed of sale, unless there is a
stipulation to the contrary (Art. 1487).
 OBLIGATIONS OF THE BUYER
1. Pay the price
Buyer is obligated to pay price according to terms agreed upon regarding time, place &
amount
If payment of interest is stipulated must pay;
if amount of interest not mentioned apply legal rate
When buyer defaults constitutes breach: subject to specific performance/rescission &
damages ; interest to be paid also from of default
 OBLIGATIONS OF THE BUYER
2. Accept delivery of thing sold
Where to accept: at time & place stipulated in the contract; if none specified at the time & place of
delivery
Goods; there is acceptance when:
a. He intimates to seller that he has accepted
b. When delivered & does any act inconsistent with ownership of seller
c. Retains without intimating to seller that he has rejected
Sale of Goods on installment:
a. Goods must be delivered in full, except when stipulated
b. When not examined by buyer not accepted until examined or at least had reasonable time to
examine
 OBLIGATIONS OF THE BUYER
Acceptance of goods in general, absent contrary express stipulation,
does not discharges seller from liability in case of breach of warranties
(unless no notice or failure to give it within reasonable time)
When buyer has a right to refuse goods, no need to return; shall be
considered as depositary; unless there is stipulation to contrary
 REMEDIES OF
UNPAID SELLER
(CONTRACT OF SALES)
 UNPAID SELLER
one who has not been paid or rendered the whole price or who
has received a bill of exchange or other negotiable instrument as
conditional payment and the condition on which it was received
has been broken by reason of the dishonor of the instrument.
 RIGHTS OF UNPAID SELLER
1. A lien on the goods or right to retain them for the price while in his possession
2. A right of stopping the goods in transitu in case of insolvency of the buyer; requisites:
(a) the seller must be unpaid;
(b) the buyer must be insolvent;
(c) the goods must be in transit;
(d) the seller must either actually take possession of the goods sold or give notice of his claim to the carrier or other person in
possession;
(e) the seller must surrender the negotiable document of title, if any, issued by the carrier or bailee; and
(f) the seller must bear the expenses of delivery of the goods after the exercise of the right.
3. A right of resale
4. A right to rescind the sale
WARRANTIES
(CONTRACT OF SALES)
 WARRANTIES
A statement or representation made by the seller
contemporaneously and as part of the contract of sale, having
reference to the character, quality, or title of the goods, and by
which he promises or undertakes to ensure that certain facts are
or shall be as he then represents.
 EXPRESS WARRANTIES
For there to be express warranty, the following requisites must concur:
(1) An affirmation of fact or any promise relating to the thing sold;
(2) The natural tendency of such affirmation or promise is to induce the buyer to buy;
(3) The buyer buys the thing relying thereon. [Art. 1546]
(4) Made before the sale not upon delivery or any other point
An express warranty can be made by and also be binding on the seller even in the sale of a second hand
article. [Moles v. IAC, 1989]
 IMPLIED WARRANTIES
- arises by operation of law and need not be stipulated in the contract of sale.
(1) Implied Warranty of Title
Warranty of Sellers Right to Sell: Seller warrants his right to sell at the time the ownership is to pass.
Inapplicable to a sheriff, auctioneer, mortgagee, pledgee, or other person professing to sell
by virtue of authority in fact or law. [Art. 1547]
Warranty against Eviction: seller warrants that buyer, from the time ownership passes,
shall have and enjoy legal and peaceful possession of the thing. Its requisites are:
(a) Buyer is deprived of the whole or a part of the thing sold;
(b) Eviction is by final judgment
 IMPLIED WARRANTIES
(2) Implied Warranty against Encumbrance/ Non-Apparent Servitudes
Requisites for breach:
(a) Thing sold is an immovable
(b) Burden or servitude encumbering the thing sold is:
Non-apparent to the naked eye
Not mentioned in the agreement
Of such nature that it must be presumed that the buyer would not have
bought it had he been aware of it.
Not recorded in the Registry of Property unless there is an express warranty
that the thing is free from all burdens and encumbrances [Art.1560]
 IMPLIED WARRANTIES
(3) IMPLIED WARRANTY AGAINST HIDDEN DEFECTS
Requisites for breach:
(1) The defect renders the thing sold unfit for the use for which it was intended OR
diminishes its fitness for such use to such an extent that had the buyer been aware thereof,
he would not have bought it or would have paid a lower price;
(2) The defect is not patent or visible;
(3) The buyer is not an expert who, by reason of his trade or profession, should have known the defect
(4) The seller is aware of the hidden fault or defect, OR even if he is not aware thereof, if there is no
stipulation to the contrary [Arts.1561 &1566]
 IMPLIED WARRANTIES

(3) Implied Warranty against Hidden Defects [Art. 1547]

(a) Implied warranty as to Merchantable Quality and Fitness of Goods
(b) Implied warranty against Redhibitory Defect in the Sale of Animals [Art. 1572]
(c) Quality and Fitness of Goods in Sale by Sample or Description

(4) Other Warranties

 EFFECTS OF WARRANTIES
(1) Natural tendency is to induce buyer to purchase the subject
matter
(2) Buyer purchases subject matter relying thereon
(3) Seller liable for damages in case of breach
REDEMPTION
(CONTRACT OF SALES)
 EXTRA SPECIAL EXTINGUISHMENT OF SALE
Conventional Redemption Legal Redemption
(Arts. 1601-1618) (Arts. 1619-1623)

It is the right which the vendor It is the right to be subrogated, upon

reserves to himself, to reacquire the the same terms and conditions
property sold provided her returns to stipulated in the contract, in the place
the vendee the price of the sale, the of one who acquires a thing by
expenses of the contract, any other purchase or dation in payment, or by
legitimate payments made therefore any other transaction whereby
and the necessary and useful expenses ownership is transmitted by onerous
made on the thing sold, and fulfills title.
other stipulations which may have been
agreed upon.
 Conventional Redemption Legal Redemption
(Arts. 1601-1618) (Arts. 1619-1623)
Nature: Nature:
(a) it is purely contractual because it is a right (a) identical with conventional
created, not by mandate of the law, but by virtue of redemption, except for the source of the
an express contract[Ordoez vs. Villaroman, 78 right conventional redemption arises from
Phil. 116]; the voluntary agreement of the parties; legal
(b) it is an accidental stipulation and, therefore, its redemption proceeds from law;
nullity cannot affect the sale of itself since the latter (b) it is not predicated on proprietary right
might be entered into without said but on a bare statutory privilege to be
stipulation [Alojado vs. Lim Siongco, 51 Phil. 339]; exercised only by the person named in the
(c) it is a real right when registered, because it statute the statute does not make actual
binds third persons [Mortera vs. Martinez, 14 Phil. ownership at the time of sale or redemption
541]; a condition precedent, the right following the
(d) it is a resolutory condition because when person and not the property[Magno vs. Viola
exercised, the right of ownership acquired by the and Sotto, 61 Phil. 80];
vendee is extinguished[Aquino vs. Deal, 63 Phil. 582];
 Conventional Redemption Legal Redemption
(Arts. 1601-1618) (Arts. 1619-1623)
(e) it is potestative because it depends upon the will of the (c) it is in the nature of a mere privilege created partly
vendor; for reason of public policy and partly for the benefit and
(f) it is a power or privilege, not an obligation, that the vendor convenience of the redemptioner to afford him a way out
has reserved for himself [Ocampo vs. Potenciano, CA 48 OG of what might be a disagreeable or inconvenient
2230]; association into which he has been thrust it is intended
(g) it is reserved at the moment of the perfection of the to minimize co-ownership [Basa vs. Aguilar, 117 SCRA
contract for if the right to repurchase is agreed upon afterwards, 128; Tan vs. CA, 172 SCRA 660].
there is only a promise to sell which produces different rights
and effects and is governed by Art. 1479 [Diamante vs. CA, 206
SCRA 52];
(h) the person entitled to exercise the right of redemption
necessarily is theowner of the property sold and not any third
party [Gallar vs. Husain, 20 SCRA 186];
(i) it gives rise to reciprocal obligationthat of returning the
price of sale and other expenses, on the part of the vendor, and
that of delivering the property and executing a deed of sale
therefore, on the part of the vendee [Pandaquilla vs. Gaza, 12
Phil. 663].
SALE ON CREDIT
(CONTRACT OF SALES)
 SALE OF GOODS ON CREDIT WITHOUT AUTHORITY

General rule: The commission agent cannot sell on credit. Should he do so, the principal
may:
(1) Demand from him payment in cash, in which case the commission agent shall be
entitled to any interest or benefit, which may result from such sale [Article 1905]; or
(2) Ratify the sale on credit, in which case the principal will have all the risks
and advantages to him [De Leon (2010)].
Exception: The commission agent can sell on credit with the express or implied consent
of the principal.
 SALE OF GOODS ON CREDIT WITH
AUTHORITY

If the commission agent was authorized to sell on credit and should he so sell on credit, he shall
inform the principal of such sale, with a statement of the names of the buyers.
Should he fail to inform the principal, the sale is deemed to have been made for cash as far as the
principal is concerned. [Article 1906] As such, as to the buyer, the sale may be on credit, but the
principal may demand the payment in cash from the agent.
Should the commission agent receive a guarantee commission (del credere commission) on
a sale, in addition to the ordinary commission, he shall:
(1) Bear the risk of collection; and
(2) Pay the principal the proceeds of the sale on the terms agreed upon with the purchaser.
SALE OF GOODS ON CREDIT WITHOUT AUTHORITY

In case of a sale on credit, the commission agent is obliged to

collect the credits of his principal when they become due and
demandable.
General rule: Failing to so collect, the agent shall be liable for
damages
Exception: He is not liable if he proves that he exercised due
diligence for that purpose.
INSTALLMENT
SALES
(CONTRACT OF SALES)
 RECTO LAW
Applies in cases of:
(a) Sale of movables in installment
i. The rule is intended to apply to sales of movables, the price of which is payable in two or more
installments, but not to straight-term sales where the price is payable in full, after making a down payment
because the law aims to protect improvident buyers who may be tempted to buy beyond their means.
[Levy Hermanos vs. Gervacio, 1939]
(b) Lease of personal property with option to buy
i. When lessor has deprived the lessee of the possession or enjoyment of the thing (Ex.: When lessor files
a complaint for replevin against lessee)
ii. Also applies when seller assigns his credit to someone else
 RECTO LAW
ALTERNATIVE REMEDIES OF THE UNPAID SELLER UNDER RECTO LAW
(a) Specific Performance
(b) Cancellation of sale: If vendee fails to pay 2 or more installments
i. When the seller cancels the sale by repossessing the property sold, he is barred from
exacting payment for its price.
(c) Foreclosure of Chattel Mortgage: If vendee fails to pay 2 or more installments
 RECTO LAW
(c) Foreclosure of Chattel Mortgage
i. If seller chooses this remedy, he shall have no further action to recover any unpaid balance,
and any stipulation to the contrary shall be void.
ii. What Art 1484 (3) prohibits is further action against the purchaser to recover any unpaid balance of the
price; and although this Court has construed the word action to mean any judicial or extrajudicial
proceeding by virtue of which the vendor may lawfully be enabled to exact recovery of the supposed
unsatisfied balance of the purchase price from the purchaser or his privy, there is no occasion at this stage to
apply the restrictive provision of the said article because there has not yet been a foreclosure sale resulting in a
deficiency. The payment of the sum of P1,250 of Sapinoso was a voluntary act on his part and did not result
from a further action instituted by Northern Motors. [Motors vs. Sapinoso, 1970]
 RECTO LAW
(c) Foreclosure of Chattel Mortgage
iii. The purpose of the law is to remedy the abuses committed in foreclosure of chattel
mortgages. It prevents mortgagees from seizing the mortgaged property, buying it at
foreclosure sale for a low price and then bringing the suit against the mortgagor for a
deficiency judgment. The almost invariable result of this procedure was that the mortgagor
found himself minus the property and still owing practically the full amount of his original
indebtedness. [Bachrach Motor Co., Inc. v. Millan, 1935]
iv. Remedies are ALTERNATIVE, not cumulative, i.e. exercise of one bars exercise of
the others. [Nonato vs. IAC, 1985]
 RA 6552: MACEDA LAW
RA 6552: An Act To Provide Protection for Buyers of Real Estate on
Installment Payments
DOES not apply to:
(1) Industrial lots
(2) Commercial buildings
(3) Sale to tenants under Agricultural Reform Code [RA 3844]
 RA 6552: MACEDA LAW
ADDITIONAL REQUIREMENTS FOR A VALID RESCISSION:

(1) If buyer has paid at least 2 years of installments:

(a) Grace period: 1 month per year of installment payments made. BUT buyer may only
avail of it only once in every 5 years
(b) Refund of Cash Surrender Value (CSV): 50% of total amount paid + 5% for every year
after the 1st 5 years of installments
i. BUT not greater than 90% of total amount paid
(c) Notice of cancellation of demand for rescission by notarial act is effective 30 days from
the buyers receipt thereof and upon full payment of CSV
 RA 6552: MACEDA LAW
ADDITIONAL REQUIREMENTS FOR A VALID RESCISSION:

(2) If buyer has paid less than 2 years:

(a) Grace period: at least 60 days
(b) Notice of cancellation or demand for rescission by notarial act, effective 30 days upon
receipt thereof.
(3) Down payments, deposits, or options on the contract shall be included in the total number
of installments made.
(4) Seller may go to court for judicial rescission in lieu of a notarial act of rescission
 RA 6552: MACEDA LAW
ADDITIONAL REQUIREMENTS FOR A VALID RESCISSION:

(5) During the grace period, buyer shall have the right:
(a) To sell or assign his rights, to be evidenced in a notarial instrument.
(b) To update his account.
(c) To pay in advance any installment, or the full unpaid balance of the
price, without any interest.
 P.D. 957. The Law on Sale of Subdivision and
Condominium

DEFINITION OF "SALE" OR "SELL"

(a) 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 project or a condominium unit in a condominium
project.
(b) also include a contract to sell, a contract of purchase and sale, an exchange, 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.
(c) privilege given to a member of a cooperative, corporation, partnership, or any association and/or 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
 P.D. 957. The Law on Sale of Subdivision and
Condominium

DEFINITION OF "BUY" OR "PURCHASE"

(a) 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 project or a
condominium unit in a condominium project.
 P.D. 957. The Law on Sale of Subdivision
and Condominium

REQUIREMENTS FOR OWNERS AND DEVELOPERS

(1) Registration of projects (subdivision/condominium) with the NHA
(2) Registration of the owner
(3) License to sell of owner or dealer with performance bond [PB,
exceptions in Section 7]
 P.D. 957. The Law on Sale of
Subdivision and Condominium
Registration of sale, etc [Section 17, PD 957]
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 Office of the Register of Deeds of the province or city where
the property is situated.
 P.D. 957. The Law on Sale of Subdivision and
Condominium

Non-forfeiture of payments (Section 23, PD 957)

No installment payment made by a buyer in a subdivision or condominium project 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
project 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 amortization interests but excluding delinquency interests, with
interest thereon at the legal rate.
Failure to pay installments [Section 24, PD 957]
The 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 project shall be governed by Republic Act No. 6552 [Maceda Law].
 P.D. 957. The Law on Sale of Subdivision and
Condominium
Issuance of title [Section 25, PD 957]

The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or
unit. No fee, except those required for the registration of the deed of sale in the Registry of Deeds,
shall be collected for the issuance of such title. In 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 six 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.
 R.A. 4726. CONDOMINIUM ACT

DEFINITION OF A CONDOMINIUM
Sec. 2. 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. Title 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 (hereinafter known as the
"condominium corporation") in which the holders of separate interest shall automatically be
members or shareholders, to the exclusion of others, in proportion to the appurtenant interest
of their respective units in the common areas
 R.A. 4726. CONDOMINIUM ACT

DEFINITION OF A CONDOMINIUM
(a)separate interest in a unit in a residential, industrial or commercial building
(b) undivided interest in the land on which the building is located and other common areas
i. common areas may not be partitioned even by judicial decree [Section 7]
(c)title to land and common areas held by condominium corporation - owners of separate
interest are automatically members/shareholders, exclusively.
 R.A. 4726. CONDOMINIUM ACT
TRANSFERS OR CONVEYANCES OF A UNIT OR AN APARTMENT, OFFICE
OR STORE, OR OTHER SPACE THEREIN [SECTION 5, RA 4726]

(a)Transfer or conveyance of a unit or a space therein includes the transfer or conveyance of

the
i. undivided interests in common areas
ii. membership or shareholding in the condominium corporation
(b) Proviso: only Filipino citizens or corporations at least 60% of the capital stock are owned
by Filipino citizens may be the transferee of common areas in cases where the common areas
are owned by the owners of separate units as co-owners (not by condominium corporation)
(c)Exception to proviso: hereditary succession
 R.A. 4726. CONDOMINIUM ACT

RIGHTS OF A CONDOMINIUM UNIT OWNER (ASIDE FROM

RIGHTS ARISING FROM OWNERSHIP) [SECTION 6]
(1) Absolute right to sell or dispose of his condominium unless the master
deed unless there is a right of first refusal in favor of condominium
owners
(2)Exclusive 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
 R.A. 4726. CONDOMINIUM ACT

ASSESSMENT IN ACCORDANCE WITH DECLARATION OF RESTRICTIONS

[SECTION 20] This is the "tax imposition power" of the condominium corporation. If unpaid, the
management body may cause a notice of assessment to be registered with the Register of Deeds,
which may be released only upon payment of the assessed fees. This lien is superior to all other
subsequent liens except real property taxes liens and other liens provided for in the declaration of
restrictions.
HOW LIEN ENFORCED AFTER NON-PAYMENT OF ASSESSED FEES [SECTION 20]
Judicial or extra-judicial foreclosure of real property mortgages, where the management body may bid
unless disallowed by the declaration of restrictions
 R.A. 4726. CONDOMINIUM ACT

SALE, EXCHANGE, LEASE, OR DISPOSITION BY CORPORATION OF THE

COMMON AREAS [SECTION 16] Generally not allowed unless authorized by
affirmative vote of all of the stockholders/members.
STOCKHOLDER/MEMBER DEMANDING PAYMENT FOR SHARES OR
INTEREST AKA APPRAISAL RIGHT [SECTION 17] By-laws of the condominium
corporation shall provide that any shareholder/member demanding payment for his share or
interest must also consent to sell his separate interest in the project to the corporation or
any buyer of the corporation's choice.
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