TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
S. No.
235
Z5 JHi -7 P 2 -02
Introduced by Senator Francis G. Escudero
AN ACT
PROVIDING FOR THE REDEVELOPMENT OF CONDOMINIUMS, AMENDING 
FOR THE PURPOSE REPUBLIC ACT NO. 4726, AS AMENDED, OTHERWISE 
KNOWN AS "THE CONDOMINIUM ACT"
EXPLANATORY NOTE
Condominium properties offer benefits to communities and households in terms 
of economy, efficiency and convenience. Condominium development allows for the 
economic use of land for the construction of housing units and amenities, and allows 
multiple households to share the cost of residential amenities such as gyms, pools, 
landscaping and security services, among others. Condominium developments, 
particularly those constructed in proximity to urban centers or tourist destinations, 
provides families easy access to business districts, schools, hospitals, transportation 
hubs, leisure activities, commercial establishments, and other facilities. These factors 
contribute to the increasing popularity of condominium unit acquisition among 
homeowners and real estate investors alike.
While there is an increasing preference for condominium units, the law that 
regulates the ownership, operation and administration of condominium units, has 
remained relatively unchanged since the iate 1960s when it was enacted. While the 
laws have been put in place to ensure the safety of condominium dwellers and the 
security of condominium ownership, the restrictive provisions of condominium 
regulation make it difficuit to uphold such noble intents of the laws.


Recognizing the wisdom of the bills filed in Congress during the Nineteenth 
Congress, in particular House Bill No. 10173 approved on Third Reading by the House 
of Representatives, and Senate Bill Nos. 2726 and 2697 filed by Sen. Joseph Victor 
Ejercito and Sen. Jinggoy Ejercito Estrada, respectiveiy, this bili iikewise seeks to 
amend a fifty-eight-year-old law, and make the same more responsive to the needs 
and exigencies on condominium ownership, operation, and management. More 
specifically, it aims to rationalize the voting requirements for en bloc condominium 
sale or redevelopment, which would make the same at par with giobal practices, and 
would ensure that unit owners are not bogged down with decrepit or deteriorating 
assets. Additionally, to protect the interests of the unit owners, this bill seeks to ensure 
that maintenance, repairs and other necessary construction works are timely 
performed, that condominium dues remain reasonabie, and that the advanced 
payment of their respective shares in the proceeds of condominium sale are 
immediately extended.
With the intention of ensuring the safety and security of residential properties 
in the country, maximizing land use efficiency particularly in urban areas, stimulating 
economic growth, and improving the overall quality of life of all Filipinos, the swift 
passage of the proposed measure is earnestiy requested.
Respectfully submitted.
FRANCISGTESCUDERO


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JML-7 P 2 -02
SENATE
S. No.
235
Introduced by Senator Francis G. Escudero
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AN ACT
PROVIDING FOR THE REDEVELOPMENT OF CONDOMINIUMS, AMENDING 
FOR THE PURPOSE REPUBLIC ACT NO. 4726, AS AMENDED, OTHERWISE 
KNOWN AS "THE CONDOMINIUM ACT"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Condominium 
Redevelopment Act".
Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to 
establish sustainable communities that are livable and provide equitable, inclusive, 
and resilient opportunities for the improvement of human well-being while contributing 
to the economic vitality of the community.
It is likewise the policy of the State to ensure the safety and integrity of existing 
and future condominium developments to protect the public against hazards of aged 
buildings that pose threats to the owners and the general public.
To this end, the State shall establish rules for the proper maintenance, repair, 
reconstruction, and redevelopment of condominium projects, ensuring that the 
property rights of unit owners are respected while addressing the needs of the 
community and improving the overall quality of life of Filipinos.


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Sec. 3. Scope. - This Act shall cover all condominium projects as defined in
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Republic Act No. 4726, otherwise known as "The Condominium Act, including those
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that are now in existence, that are under construction, or that may be constructed
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hereinafter.
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Sec. 4. Section 4 of Republic Act No. 4726, as amended, is hereby further
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amended to read as follows:
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"SEC. 4. The provisions of this Act shall apply to property divided
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or to be divided into condominiums only if there shall be recorded in the
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Register of Deeds of the province or city in which the property lies and
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duly annotated in the corresponding certificate of title of the land, if the
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latter had been patented or registered under either the Land
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Registration or Cadastral Acts, an enabling or master deed which shall
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contain, among others, the following:
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"X X X.
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"The enabling or master deed may be amended or revoked upon
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registration of an instrument executed by a simple majority of the
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registered owners of the property: Provided,l\\dX. in a condominium
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project [exclusively] for [either] residential, [or] commercial, OR
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MIXED use, simple majority shall be on a per unit of ownership basis,
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[and that in the case of mixed use, simple majority shall be] OR on a
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floor area of ownership basis, AS DETERMINED IN THE MASTER
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DEED: Provided, further, That prior notifications to all registered
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owners are done: and Provided, findiiy, That any amendment or
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revocation already decided by a simple majority of all registered owners
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shall be submitted to the [Housing and Land Use Regulatory Board]
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DEPARTMENT 
OF HUMAN SETTLEMENTS AND URBAN
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DEVELOPMENT and the city/municipal engineer for approval before it
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can be registered. Until registration of a revocation, the provisions of
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this Act shall continue to apply to such property."


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Sec. 5. Section 5 of Republic Act No. 4726 is hereby amended to read as 
follows;
"Sec 5. Any transfer or conveyance of a unit or an apartment, 
office or store or other space therein, shall include the transfer or 
conveyance of the undivided interests in the common areas or, in a 
proper case, the membership or shareholdings in the condominium 
corporation: Provided, however, That where the common areas in the 
condominium project are owned by the owners of separate units as co­
owners thereof, no condominium unit therein shall be conveyed or 
transferred to persons other than Filipino citizens, or corporations at 
least sixty percent of the capital stock of which belong to Filipino citizens, 
except in cases of hereditary succession. Where the common areas in a 
condominium project are held by a corporation, no transfer or 
conveyance of a unit shall be valid if the concomitant transfer of the 
appurtenant membership or stockholding in the corporation will cause 
the alien interest in such corporation to exceed the limits imposed by 
existing laws.
"ANY TRANSFER OR CONVEYANCE OF THE COMMON 
AREAS (I) TO THE CONDOMINIUM CORPORATION OR CO­
OWNERS AND (II) TO THE BUYER OF ALL UNITS OF THE 
PROJECT ON ACCOUNT OF SALE TRANSACTION PRECEDING A 
REDEVELOPMENT, SHALL BE EXEMPT FROM ALL NATIONAL 
AND LOCAL TAXES, INCLUDING INCOME TAX, CAPITAL GAINS 
TAX, VALUE ADDED TAX, AND LOCAL TRANSFER TAX."
Sec. 6. Section 9 of Republic Act No. 4726 is hereby amended to read as
follows:
"Sec. 9. The owner of a project shall, prior to the conveyance of 
any condominium therein, register a declaration of restrictions relating 
to such project, which restrictions shall constitute a lien upon each 
condominium in the project, and shall insure to and bind all 
condominium owners in the project. Such liens, unless otherwise


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provided, may be enforced by any condominium owner in the project or 
by the management body of such project. The Register of Deeds shall 
enter and annotate the declaration of restrictions upon the certificate of 
title covering the land included within the project, if the land is patented 
or registered under the Land Registration or Cadastral Acts.
"X X X.
"Such declaration of restrictions, among other things, may also 
provide:
"(a) As to any such management body:
"(1) X X x;
"x X x;
"(8) For entry by its officers, [and] THE DEVELOPER, 
THEIR agents AND REPRESENTATIVES into any unit 
DURING EMERGENCY SITUATIONS WHERE THERE IS 
REAL DANGER OF DAMAGE TO LIFE OR PROPERTY, OR 
when necessary in connection with the maintenance or 
construction for which such body is responsible. THE 
MANAGEMENT BODY OR DEVELOPER AND THEIR 
RESPECTIVE AUTHORIZED REPRESENTATIVES SHALL 
NOT, SOLELY BY REASON THEREOF, BE LIABLE FOR 
TRESPASS FOR SUCH ENTRY. IN THE EVENT ENTRY IS 
NOT GRANTED DESPITE REASONABLE NOTICE GIVEN TO 
THE CONDOMINIUM UNIT OWNER DUE TO THE 
PREVAILING CIRCUMSTANCES, SUCH CONDOMINIUM 
UNIT OWNER SHALL BE DEEMED TO HAVE ACTED IN BAD 
FAITH AND SHALL BE RESPONSIBLE FOR DAMAGES 
WHICH MAY BE REASONABLY ATTRIBUTED TO THE 
REFUSAL OF ENTRY FOR THE PURPOSE OF PREVENTING 
DAMAGE OR PERFORMING MAINTENANCE, 
CONSTRUCTION AND REPAIR WORKS;


X X X.
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Sec. 7. Section 10 of Republic Act No. 4726 is hereby amended to read as
follows:
"Section 10. Whenever the common areas in a condominium 
project are [held] USED by a condominium corporation, such 
corporation shall constitute the management body of the project. The 
corporate purposes of such a corporation shall be limited to the holding 
of the common areas, either in ownership or any other interest in real 
property recognized by law, to the management of the project, and to 
such other purposes as may be necessary, incidental or convenient to 
the accomplishment of said purposes. CONDOMINIUM DUES BASED 
ON THE ACTUAL USE, ACCESS AND ENJOYMENT OF THE 
COMMON AREAS OF THE PROJECT, WHETHER WHOLLY OR 
PARTIALLY, MAY BE ASSESSED BY THE CONDOMINIUM 
CORPORATION UPON INCORPORATION FOR THE 
MAINTENANCE OF THE COMMON AREAS.
"The articles of incorporation or by-laws of the corporation shall 
not contain any provision contrary to or inconsistent with the provisions 
of this Act, the enabling or master deed, or the declaration of restrictions 
of the project. UNLESS OTHERWISE PROVIDED IN THE BY-LAWS 
OF A CONDOMINIUM CORPORATION, QUORUM FOR CONDUCT 
OF MEETINGS SHALL BE THE MAJORITY OF THE TOTAL 
CONDOMINIUM UNITS HELD BY MEMBERS IN GOOD 
STANDING. Membership in a condominium corporation, regardless of 
whether it is a stock or non-stock corporation, shall not be transferable 
separately from the condominium unit of which it is an appurtenance. 
When a member or stockholder ceases to own a unit in the project in 
which the condominium corporation owns or holds the common areas, 
he shall automatically cease to be a member or stockholder of the 
condominium corporation. UNLESS OTHERWISE PROVIDED IN THE 
ARTICLES OF INCORPORATION AND BY-LAWS OF A


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CONDOMINIUM CORPORATION, JURIDICAL UNIT OWNERS
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MAY NAME, CONSTITUTE AND APPOINT AN ATTORNEY-IN-
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FACT WHO SHALL REPRESENT THE SAME IN THE
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CONDOMINIUM CORPORATION AND WHO MAY LIKEWISE BE
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ELIGIBLE FOR NOMINATION AND ELECTION AS A DIRECTOR
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OR FOR APPOINTMENT TO ANY POSITION: PROVIDED, THAT
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SUCH ATTORNEY-IN-FACT SHALL NOT CAUSE THE FOREIGN
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INTEREST IN SUCH CORPORATION TO EXCEED THE LIMITS
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IMPOSED BY LAW."
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Sec. 8. Section 13 of Republic Act No. 4726 is hereby amended to read as
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follows:
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"Sec. 13. Until the enabling or the master deed of the project in
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which the condominium corporation owns or holds the common area is
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revoked, the corporation shall not be voluntarily dissolved through an
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action for dissolution under Rule 104 of the Rules of Court except upon
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a showing:
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"(a) X X x;
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"x X x;
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"(d) That the project or a material part thereof has been
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condemned or expropriated and that the project is no longer viable, or
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that the members holding in aggregate A MAJORITY [more than
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seventy percent] interest in the corporation, if non-stock, or the
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stockholders representing A MAJORITY [more thon seventy percent]
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of the capital stock entitled to vote, if a stock corporation, are opposed
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to the continuation of the condominium regime after expropriation or
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condemnation of a material portion thereof; or
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"x X X."


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Sec. 9. Section 14 of Republic Act No. 4726 is hereby amended to read as
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follows:
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"Sec. 14. The condominium corporation may also be dissolved by 
the affirmative- vote of [aH] TWO-THIRDS (2/3) OF the stockholders 
or members thereof at a general or-special meeting duly called for the 
purpose: Provided, HOWEVER, That [all the requirements of Section 
sixty two—©f—the—Corporation—Law—are—complied with.] IF THE 
CONDOMINIUM PROJECT HAS BEEN IN EXISTENCE FOR 
THIRTY (30) YEARS OR MORE BUT LESS THAN FIFTY (50) 
YEARS, THE CONDOMINIUM CORPORATION MAY BE 
DISSOLVED BY THE AFFIRMATIVE VOTE OF A MAJORITY OF 
THE STOCKHOLDERS OR MEMBERS THEREOF AT A GENERAL OR 
SPECIAL MEETING DULY CALLED FOR THE PURPOSE: 
PROVIDED, FURTHER, THAT IF THE CONDOMINIUM PROJECT 
HAS BEEN IN EXISTENCE FOR FIFTY (50) YEARS OR MORE, THE 
CONDOMINIUM CORPORATION MAY BE DISSOLVED BY THE 
AFFIRMATIVE VOTE OF ONE-THIRD (1/3) OF THE 
STOCKHOLDERS OR MEMBERS THEREOF AT A GENERAL OR 
SPECIAL MEETING DULY CALLED FOR THE PURPOSE: 
PROVIDED, FINALLY, THAT FOR THE PURPOSES OF THIS 
SECTION, ALL THE REQUIREMENTS FOR CORPORATE 
DISSOLUTION AND LIQUIDATION UNDER TITLE XIV OF THE 
REVISED CORPORATION CODE OF THE PHILIPPINES FOR 
PURPOSES OF THIS SECTION, ARE COMPLIED WITH INSOFAR 
AS THEY ARE APPLICABLE."
Sec. 10. Section 15 of Republic Act No. 4726 is hereby amended to read as
foliows:
"Sec. 15. Unless otherwise provided for in the declaration of 
restrictions upon voluntary dissolution of a condominium corporation in 
accordance with the provisions of Sections thirteen and fourteen of this 
Act, the corporation shali be deemed to hold a power of attorney from


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all the members or stockholders to sell and dispose of their separate
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interests in the project and liquidation of the corporation shall be
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effected by a sale of the entire project as if the corporation owned the
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whole thereof, subject to the rights of the corporate and of individual
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condominium creditors. MEMBERS OR STOCKHOLDERS SHALL BE
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ENTITLED TO AN ADVANCED PAYMENT OF THEIR RESPECTIVE
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PRO RATA SHARES FROM THE PROCEEDS OF THE SALE OF THE
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ENTIRE CONDOMINIUM PROJECT BASED ON THE AGREED
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VALUATION AND TERMS OF PAYMENT BETWEEN THE
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CONDOMINIUM CORPORATION AND THE BUYER OF THE
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PROJECT. SUCH ADVANCED PAYMENT SHALL BE DEDUCTED
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FROM THE FINAL AMOUNT DUE TO ALL MEMBERS AND
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STOCKHOLDERS IN ACCORDANCE WITH THEIR RESPECTIVE
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PRO RA TA SHARES.
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Sec. 11. Section 16 of Republic Act No. 4726, as amended, is hereby further
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amended to read as follows:
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"Sec. 16. A condominium corporation shall not, during its
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existence, sell, exchange, [tease], or otherwise dispose of the common
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areas owned or held by it in the condominium project unless authorized
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by the affirmative vote of a simple majority of the registered owners:
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Provided, That prior notifications to all registered owners are done:
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Provided, further. That the condominium corporation may expand or
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integrate the project with another upon the affirmative vote of a simple
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majority of the registered owners, subject only to the final approval of
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the [Housing and Land Use Regulatory Board] DEPARTMENT OF
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HUMAN SETTLEMENTS AND URBAN DEVELOPMENT.
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"THE CONDOMINIUM CORPORATION MAY LEASE A
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PORTION OF THE COMMON AREAS OWNED OR HELD BY IT IN
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THE CONDOMINIUM PROJECT: PROVIDED, THAT THE LEASE
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THEREOF DOES NOT INTERFERE WITH THE OPERATIONS AND
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SAFETY OF THE COMMUNITY AS WELL AS WITH THE USE


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THEREOF BY THE UNIT OWNERS: PROVIDED, FURTHER, THAT
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ALL NET RENTAL INCOME REALIZED FROM THE LEASE
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THEREOF SHALL INURE TO THE BENEFIT OF THE MEMBERS OR
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STOCKHOLDERS, AS THE CASE MAY BE."
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Sec. 12. Section 18 of Republic Act No. 4726 is hereby amended to read as
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follows:
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"Sec. 18. Upon registration of an instrument conveying a
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condominium, the Register of Deeds shall, upon payment of the proper
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fees, enter [ond annotate] the conveyance [on the cGrtificotG of title
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covering the land included within the project] and the transferee shall
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be entitled to the issuance of a "condominium owner's" copy [of the
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pertinent portion of such certificate of title]. Said "condominium
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owner's" copy need to reproduce the ownership status or series of
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transactions in force or annotated with respect to other condominiums
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in the project. A copy of the description of the land, a brief description
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of the condominium conveyed, name and personal circumstances of the
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condominium owner would be sufficient for purposes of the
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"condominium owner's" copy of the certificate of title. No conveyance of
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condominiums or part thereof, subsequent to the original conveyance
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thereof from the owner of the project, shall be registered unless
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accompanied by a certificate of the management body of the project
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that such conveyance is in accordance with the provisions of the
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declaration of restrictions of such project AND THAT THE
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CONDOMINIUM UNIT HAS NO UNPAID DUES AND ARREARS.
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"In cases of condominium projects registered under the
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provisions of the Spanish Mortgage Law or Act 3344, as amended, the
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registration of the deed of conveyance or a condominium shall be
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sufficient if the Register of Deeds shall keep the original or signed copy
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thereof, together with the certificate of the management body of the
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project, and return a copy of the deed of conveyance to the
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condominium owner duly acknowledged and stamped by the Register of


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Deeds in the same manner as in the case of registration of conveyances
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of real property under said laws."
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Sec. 13. Implementing Rules and Regulations. - Within sixty (60) days from
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the effectivity of this Act, the Department of Human Settlements and Urban
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Development and the Human Settlements Adjudication Commission, in consultation
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with public and private stakeholders concerned, shall promulgate the necessary
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implementing rules and regulations to implement the provision of this Act.
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Sec. 14. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in force and effect.
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Sec. 15. Repealing Clause. - All other laws, acts, presidential decrees, executive
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orders, issuances, presidential proclamations, rules and regulations or parts thereof,
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which are contrary to and inconsistent with any provision of this Act, are hereby
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repealed, amended or modified accordingly.
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Sec. 16. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a national newspaper of general circulation.
Approved,
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