EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
RECEIVED'd
SENATE
S.B. No. 2508
Introduced by SENATOR IMEE R. MARCO
FILED
March
s
AN ACT AMENDING SECTION 5 OF REPUBLIC ACT NO. 4726 
OTHERWISE KNOWN AS "THE CONDOMINIUM ACT",
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 20, Article II of the 1987 Constitution provides that, "The State 
recognizes the indispensable roie of the private sector, encourages private enterprise, 
and provides incentive to needed investments."
In order to boost the country's economy and promote real estate development. 
Republic Act No. 4726 otherwise known as " The Condominium Act' was passed into 
law to regulate the sale, ownership, and operation of condominiums. It specifies that 
60% of the capital stock should be owned by Filipinos. Such limitation places 
condominium units in the Foreign Investment Negative List (FINL), which is prepared 
by the National Economic and Development Authority (NEDA) every two years, as 
prescribed by R.A. No. 7042 or the "Foreign Investment Act", as amended.
Such limitation on foreign ownership of condominiums acts as a barrier to the 
entry of investments in the country due to the confusion of the presence of 
condominium units on the Foreign Investment Negative List. Given the presence of 
incentives to foreign investors provided in our laws, including the grant of working 
visas to foreign executives and highly technical workers, removing limitations to the 
ownership of condominiums is in line with the current policy thrust of opening up and 
liberalizing our economy to attract more foreign investments, without contravening 
the Constitution.


In view of the foregoing, the approval of this bill is earnestly sought.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
-V HE
■0<r nif ^
S.B. No.
SENATE
2508
Introduced by SENATOR IMEE R. MARCO
RECEIVED
FILED
March
RTTt
AN ACT AMENDING SECTION 5 OF REPUBLIC ACT NO. 4726 
OTHERWISE KNOWN AS "THE CONDOMINIUM ACT"
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Section 5 of Republic Act No. 4726 otherwise known as "The
2 
Condominium Act" is hereby amended to read, as follows:
3 
"Section 5. Any transfer or conveyance of a unit or an apartment,
4 
office or store or other space therein, shall include the transfer or
5 
conveyance of the undivided interests in the common areas or, in a
6 
proper case, the membership or shareholdings in the condominium
7 
corporation[: Provided, however, That where the common areas in the
8 
condominium project are owned by the owners of separate units-as
9 
co-owners thereof, no condominium-uftit therein shall be conveyed or
10 
transferred to persons other than-Filipino citizens, or corporations-at
11 
least sixty-percent-of the capital stock of which belong-to Filipino
12 
citizensT-ex-eept-in-eases of hereditary succession. Where the common
13 
areas in a condominium project are held by a corporation, no transfer
14 
or conveyance of a unit shall be valid if the-eone-omitant transfer of
15 
the-appurt-enant-membership or stockholding in the corpofation will
16 
cause the alien interest in-such corporation -to- exceed the-limits
17 
impesed-by existing laws}. PROVIDED THAT, IN INSTANCES
18 
WHERE THE CONDOMINIUM PROJECT DOES NOT OWN THE
19 
LAND UPON WHICH THE CONDOMINIUM STRUCTURE IS
20 
CONSTRUCTED, SUCH AS BY LEASE, SUB-LEASE, USUFRUCT
21 
OR OTHER ARRANGEMENT, THE FOREIGN NATIONALITY
22 
RESTRICTION, AS PROVIDED IN THE CONSTITUTION, SHALL
23 
NOT APPLY TO THE SALE OF THE CONDOMINIUM UNITS OF
24 
SUCH CONDOMINIUM PROJECTS. PROVIDED FURTHER THAT,
25 
ANY SALE OF SUCH UNITS WOULD BE SUBJECT TO THE TERMS


1 
AND LIMITATIONS OF THE RELEVANT LEASE AGREEMENT
2 
OVER THE LAND, WHICH SHALL BE CLEARLY REFLECTED IN
3 
THE MASTER DEED OF RESTRICTIONS AND ANNOTATED ON
4 
THE LAND TITLE TO ALERT BUYERS.
5 
Sec. 2. Repealing Clause. - All laws, decrees, orders, rules and regulations or
6 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
7 
repealed or modified accordingly.
8 
Sec. 3. Separability Clause. - If any portion or provision of this Act is declared
9 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
10 
remain in force and effect.
11 
Sec. 4. Effectivity. - This Act shall take effect after fifteen (15) days following the
12 
completion of its publication either in the Official Gazette or in a newspaper of general
13 
circulation in the Philippines.
Approved,