NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE 
S- Nn. 2726
^ ’''lEiffuroft'-f - : r* ■ '
24 JUL 10 P12 '53
•tfiv’cD St;
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
LOWERING THE PERCENTAGE REQUIREMENT FOR THE VOLUNTARY 
DISSOLUTION OF CONDOMINIUM CORPORATIONS FOR CONDEMNED 
PROJECTS AND PROJECTS IN EXISTENCE FOR MORE THAN THIRTY (30) 
YEARS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 4726, 
OTHERWISE KNOWN AS "THE CONDOMINIUM ACT"
EXPLANATORY NOTE
Republic Act No. 4726, otherwise known as "The Condominium Act" was 
signed into law on June 18, 1966. It was amended by Republic Act No. 7899 on 
February 23, 1995. The said laws govern the establishment and development of 
condominium projects in the country to ensure the safety and viability of the 
structure and define the rights and responsibilities of both the management and the 
unit owners. Hence, the condominium projects in the country, whether built for 
residential, commercial, or industrial use, continue to promote efficiency, 
accessibility, safety, security and even business opportunities.
However, just like any other infrastructure, condominiums are also subject to 
wear and tear, as well as to damages due to man-made and natural calamities. 
Moreover, the continually evolving requirements and lifestyle of our people require 
the redesigning and restructuring of certain existing condominiums to be able to 
respond to the demands of the times while ensuring strength and safety.


Unfortunately, the current legal and regulatory restrictions make it nearly 
impossible to redevelop and rehabilitate a condominium project. For one, the voting 
requirements for the redevelopment of condominiums prove to be unreasonable 
because in order for a condominium corporation to be dissolved and its properties 
sold for redevelopment purposes. Republic Act No. 4726 currentiy requires 
unanimous vote of all shareholders or members of the condominium corporation - 
for the dissolution of the said corporation.
These requirements must be relaxed in order to facilitate the desire of the 
condominium corporation stakeholders or members to improve their property, 
investment, and overall quality of life. It will also attract more investments in 
condominium redevelopment, improve the overall safety of metropolitan areas from 
natural disasters, and facilitate the corporate dissolution of condominium 
corporations. Japan and Singapore, in fact, have enacted laws similar to this 
proposed amendment.
The "Condominium Redeveiopment Act" seeks to lessen the vote 
requirements for the dissolution of a condominium corporation. Among the primary 
amendments that the measure proposes is to reduce the voting requirement for the 
dissolution of a condominium corporation from the current seventy percent (70%) to 
a simple majority for projects that have been condemned or expropriated, or 
projects that are no longer viable. Moreover, for projects that have been in 
existence for thirty (30) to fifty (50) years, it proposes to reduce from the current 
one hundred percent (100%) to two-thirds of the stockholders or members the 
voting requirement for the dissolution of a condominium corporation. Meanwhile, 
for projects that have been in existence for fifty (50) years or more, the voting 
requirement is proposed to be reduced from one hundred percent (100%) to a 
simpie majority.


This measure was approved by the House of Representatives on Third 
Reading.
In view of the foregoing, the immediate passage of this bill is highly 
recommended.
INGGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
SENATE
S. No. 2726
.'I ■ . i
’ ■'■gJffltP 0{ f'f •
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
LOWERING THE PERCENTAGE REQUIREMENT FOR THE VOLUNTARY 
DISSOLUTION OF CONDOMINIUM CORPORATIONS FOR CONDEMNED 
PROJECTS AND PROJECTS IN EXISTENCE FOR MORE THAN THIRTY (30) 
YEARS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 4726, 
OTHERWISE KNOWN AS "THE CONDOMINIUM ACT"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the '‘'Condominium
2 
Redevelopment Acf.
3 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 
establish livable communities that provide equitable, inclusive, and resilient
5 
opportunities for the improvement of human well-being while contributing to the
6 
economic vitality of the community.
7 
It is likewise the policy of the State to ensure the safety and integrity of
8 
existing and future condominium developments to protect the public against hazards
9 
of aged buildings that pose threats to the owners and the general public.
10 
To this end, the State shall establish rules for the proper maintenance, repair,
11 
reconstruction, and redevelopment of condominium projects, ensuring that the
12 
property rights of units owners are respected while addressing the needs of the
13 
community and improving the overall quality of life of Filipinos.


1 
Sec. 3. Scope. - This Act shall cover all condominium projects as defined in
2 
Republic Act No. 4726, otherwise known as "The Condominium Act", which as now
3 
in existence, under construction, or which may be constructed hereinafter.
4 
Sec. 4. Section 13 paragraph (d) of Republic Act No. 4726 is hereby
5 
amended to read as follows:
6 
"Sec. 4. X X X
7 
"The enabling or master deed may be amended or revoked
8 
THROUGH A SPECIAL POWER GRANTED BY THE
9 
REGISTERED OWNERS, OR upon registration of an instrument
10 
executed by a simple majority of the registered owners of the
11 
property: Provided, That in a condominium project [exelusivefy] for
12 
[either] residential, [er] commercial, OR MIXED use, simple
13 
majority shall be on a per unit of ownership basis, OR [and that in
14 
the-case-of-mixed use, simple majority shall bo] on a floor area of
15 
ownership basis, AS DETERMINED IN THE MASTER DEED:
16 
Provided, further, That prior notifications to all registered owners
17 
are done: Provided, finaiiy. That any amendment or revocation
18 
already decided by a simple majority of all registered owners shall
19 
be submitted to the [Housing and Land-Use-Regulatory-Board]
20 
DEPARTMENT OF HUMAN SETTLEMENTS AND URBAN
21 
DEVELOPMENT and the city/municipal engineer for approval
22 
before it can be registered. Until registration of a revocation, the
23 
provisions of this Act shall continue to apply to such property."
24 
Sec. 5. Section 6 of Republic Act No. 4726 is hereby further amended to read
25 
as follows:
26 
"Sec. 6. Unless otherwise expressly provided in the enabling
27 
or master deed or the declaration of restrictions, the incidents of a
28 
condominium grant are as follows:
29 
"(a) The boundary of the unit granted are the interior
30 
surfaces of the perimeter walls, floors, ceilings, windows and doors
31 
thereof. The following are not part of the unit bearing walls,
32 
columns, floors, roofs, foundations and other common structural


1 
elements of the building: lobbies, stairways, hallways, and other
2 
areas of common use, elevator equipment and shafts, central
3 
hearing, central refrigeration and central air-conditioning
4 
equipment, reservoirs, tanks, pumps and other central services and
5 
facilities, pipes, ducts, flues, chutes, conduits, wires and other
6 
utility installations, wherever located, except the outlets thereof,
7 
when located within the unit. UNIT AREAS WRITTEN ON ALL
8 
CONDOMINIUM CERTIFICATES OF TITLE SHALL BE
9 
DEEMED TO BE PRECEDED BY 'APPROXIMATELY' AND
10 
FOLLOWED BY 'SQUARE METERS, MORE OR LESS'.''
11 
"X X X."
12 
Sec. 6. Section 9 of Republic Act No. 4726 is hereby amended to read as
13 
follows:
14 
"Sec. 9. X X X.
15 
"Such declaration of restrictions, among other things, may
16 
also provide:
17 
"(a) As to any such management body:
18 
"x X X
19 
"(8) For entry by its officers, [and] THE DEVELOPER,
20 
THEIR agents AND REPRESENTATIVES into any unit DURING
21 
EMERGENCY SITUATIONS WHERE THERE IS DANGER OF
22 
DAMAGE TO LIFE OR PROPERTY, when necessary in connection
23 
with the maintenance or construction for which such body is
24 
responsible, OR FOR MAINTENANCE AND REPAIRS RELATIVE
25 
TO COMMON AREAS AND OTHER CONDOMINIUM UNITS
26 
ARE CONCERNED, AND THE MANAGEMENT BODY OR
27 
DEVELOPER AND THEIR RESPECTIVE AUTHORIZED
28 
REPRESENTATIVES SHALL NOT, BY REASON THEREOF, BE
29 
LIABLE FOR TRESPASS FOR SUCH ENTRY. IN THE EVENT
30 
ENTRY IS NOT GRANTED DESPITE REASONABLE NOTICE
31 
GIVEN THE PREVAILING CIRCUMSTANCES, SUCH
32 
CONDOMINIUM UNIT OWNER SHALL BE DEEMED AS


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HAVING ACTED IN BAD FAITH AND SHALL BE 
RESPONSIBLE FOR ALL DAMAGES WHICH MAY BE 
REASONABLY ATTRIBUTED TO NOT HAVING ALLOWED 
ENTRY FOR THE PREVENTION OF DAMAGE OR 
PERFORMANCE OF MAINTENANCE, CONSTRUCTION AND 
REPAIR WORKS."
Sec. 7. Section 10 of Republic Act No. 4726 is hereby amended to read as
follows:
"Sec. 10. Whenever the common areas in a condominium 
project are [i^eld] 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 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 BY THE MEMBERSHIP OR 
STOCKHOLDING OF THE COMMON AREAS OF THE PROJECT, 
WHETHER WHOLLY OR PARTIALLY, MAY BE ASSESSED BY 
THE CONDOMINIUM CORPORATION UPON 
INCORPORATION FOR 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 PROVIDED 
OTHERWISE IN THE BY-LAWS, QUORUM FOR MEETING 
PURPOSES SHALL BE DETERMINED BY THE SIMPLE 
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


1 
non-stock corporation, regardless of whether it is a stock or non-
2 
stock corporation, shall not be transferable separately from the
3 
condominium unit of which it is an appurtenance. When a member
4 
or stockholder ceases to own 
a unit in the project in which the
5 
condominium corporation owns or holds the common areas, he/she
6 
shall automatically cease to be a member or stockholder of the
7 
condominium corporation. UNLESS PROVIDED OTHERWISE IN
8 
THE ARTICLES OF INCORPORATION AND 
BY-LAWS,
9 
JURIDICAL UNIT OWNERS MAY NAME, CONSTITUTE AND
10 
APPOINT AN ATTORNEY-IN-FACT WHO SHALL REPRESENT
11 
THE SAME IN THE CONDOMINIUM CORPORATION AND
12 
WHO MAY LIKEWISE RUN FOR AND BE ELECTED AND
13 
APPOINTED TO THE BOARD OR ANY OFFICERSHIP
14 
POSITION: PROVIDED, THAT SUCH ATTORNEY-IN-FACT
15 
WILL NOT CAUSE THE 
ALIEN INTEREST IN SUCH
16 
CORPORATION TO EXCEED THE LIMITS IMPOSED BY
17 
EXISTING LAWS."
18 
Sec. 8. Section 13 of Republic Act No. 4726 is hereby amended to read as
19 
follows:
20 
"Sec. 13. Until the enabling or the master deed of the
21 
project in which the condominium corporation owns or holds the
22 
common area is revoked, the corporation shall not be voluntarily
23 
dissolved through an action for dissolution under Rule 104 of the
24 
Rules of Court except upon a showing:
25 
"x X X
26 
"(d) That the project or a material part thereof has been
27 
condemned or expropriated and that the project is no longer viable,
28 
[or that the members holding in aggregate more than seventy
29 
pefccnt4ritercst in the corporation, if non-stock, or the stockholders
30 
repFCScnting more than seventy percent of the capital stock
31 
entitled—to- vote,—if—a—stock corporation,] OR THAT THE
32 
CONDOMINIUM OWNERS, BY A VOTE OF A MAJORITY


1 
(50% PLUS 1) OF THE STOCKHOLDERS OR MEMNERS
2 
THEREOF AT A GENERAL OR SPECIAL MEETING DULY
3 
CALLED FOR THE PURPOSE, are opposed to the continuation of
4 
the condominium regime after expropriation or condemnation of a
5 
material portion thereof; or
6 
"x X X."
7 
Sec. 9. Section 14 of Republic Act No. 4726 is hereby amended to read as
8 
follows:
9 
"Sec. 14. The condominium corporation may also be
10 
dissolved by [by the affirmative- vote of all the stockholder or
11 
members thereof at a general or-spccial meeting duly called for the
12 
purposoi-P/TOwt/c^ That all the requirements of Section sixty-two of
13 
the Corporation Law are complied with.] IN THE FOLLOWING
14 
MANNER:
15 
"(A) IF THE PROJECT HAS BEEN IN EXISTENCE FOR
16 
THIRTY (30) YEARS OR MORE BUT LESS THAN FIFTY (50)
17 
YEARS, BY THE AFFIRMATIVE VOTE OF 2/3 OF THE
18 
STOCKHOLDERS OR MEMBERS THEREOF AT A GENERAL OR
19 
SPECIAL MEETING DULY CALLED FOR THE PURPOSE:
20 
PROVIDED, THAT ALL THE REQUIREMENTS OF TITLE XIV
21 
OF THE REVISED CORPORATION CODE OF THE
22 
PHILIPPINES ARE COMPLIED WITH.
23 
"FOR PURPOSES OF THIS SECTION, THE VOTES OF
24 
EACH UNIT OWNER SHALL BE DETERMINED AND IN
25 
ACCORDANCE WITH SECTION 4 ABOVE."
26 
Sec. 10. Section 15 of Republic Act No. 4726 is hereby amended to read as
27 
follows:
28 
"Sec. 15. Unless otherwise provide for in the declaration of
29 
restrictions upon voluntary dissolution of a condominium
30 
corporation in accordance with the provisions of Sections thirteen
31 
and fourteen of this Act, the corporation shall be deemed to hold a
32 
power of attorney from all the members or stockholders to sell and


1 
dispose of their separate interests in the project and liquidation of
2 
the corporation shall be effected by a sale of the entire project as if
3 
the corporation owned the whole thereof, subject to the rights of
4 
the corporate and of individual condominium creditors. A
5 
MEMBER OF STOCKHOLDER SHALL BE ENTITLED TO AN
6 
ADVANCED PAYMENT OF THEIR PRO RATA SHARE FROM
7 
THE PROCEEDS OF THE SALE OF THE ENTIRE PROJECT
8 
BASED ON AN AGREED VALUATION BETWEEN THE
9 
CONDOMINIUM CORPORATION AND THE BUYER OF THE
10 
PROJECT. SUCH ADVANCED PAYMENT SHALL BE
11 
DEDUCTED FROM THE FINAL AMOUNT TO BE PAID TO THE
12 
MEMBER OR STOCKHOLDER.
13 
Sec. 11. Section 16 of Republic Act No. 4726 is hereby further amended to
14 
read as follows:
15 
"Sec. 16. A condominium corporation shall not, during its
16 
existence, sell, exchange, [lease], or otherwise dispose of the
17 
common areas owned or held by it in the condominium project
18 
unless authorized by the affirmative vote of a simple majority of
19 
the registered owners: Provided, That prior notifications to all
20 
registered owners are done: Provided, further, That the
21 
condominium corporation may expand or integrate the project with
22 
another upon the affirmative vote of a simple majority of the
23 
registered owners, subject only to the final approval of the
24 
[Housing--and Land -Use-Rcgulatory-Board] DEPARTMENT OF
25 
HUMAN SETTLEMENTS AND URBAN DEVELOPMENT, THE
26 
CONDOMINIUM CORPORATION MAY LEASE A PORTION OF
27 
THE COMMON AREAS OWNED OR HELD BY IT IN THE
28 
CONDOMINIUM PROJECT: PROVIDED, THAT SUCH DOES
29 
NOT INTERFERE WITH THE OPERATIONS AND SAFETY OF
30 
THE COMMUNITY AS WELL AS WITH THE USE THEREOF BY
31 
THE UNIT OWNERS, AND ALL NET RENTAL INCOME


1 
THEREOF INURE TO THE BENEFIT OF THE MEMBERS OR
2 
STOCKHOLDERS, AS THE CASE MAY BE."
3 
Sec. 12. Section 148 of Republic Act No. 4726 is hereby amended to read as
4 
follows:
5 
"Sec. 18. Upon registration of an instrument conveying a
6 
condominium, the Register of Deeds shall, upon payment of the
7 
proper fees, enter [and- -annotate] the conveyance [on-- the
8 
certificate of title covering-the land-included within the-projeet] and
9 
the transferee shall be entitled to the issuance of a "condominium
10 
owner's" copy [of the pertinent portion of such certificate of title].
11 
Said "condominium owner's" copy need to reproduce the ownership
12 
status or series of transactions in force or annotated with respect
13 
to other condominiums in the project. A copy of the description of
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the land, a brief description of the condominium conveyed, name
15 
and personal circumstances of the condominium owner would be
16 
sufficient for purposes of the "condominium owner's" copy of the
17 
certificate of title. No conveyance of condominiums or part thereof,
18 
subsequent to the original conveyance thereof from the owner of
19 
the project, shall be registered unless accompanied by a certificate
20 
of the management body of the project that such conveyance is in
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accordance with the provisions of the declaration of restrictions of
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such project AND THERE ARE NO OUTSTANDING
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CONDOMINIUM DUES OR ARREARS OWED FROM SUCH
24 
UNIT.
25 
"In cases of condominium projects registered under the
26 
provisions of the Spanish Mortgage Law or Act 3344, as amended,
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the registration of the deed of conveyance or a condominium shall
28 
be sufficient if the Register of Deeds shall keep the original or
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signed copy thereof, together with the certificate of the
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management body of the project, and return a copy of the deed of
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conveyance to the condominium owner duly acknowledged and
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stamped by the Register of Deeds in the same manner as in the
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case of registration of conveyances of real property under said
2 
laws."
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Sec. 13. Implementing Rules and Regulations. — The Department of Human
4 
Settlements and 
Urban Development and the Human Settlements Adjudication
5 
Commission shall promulgate within six (6) months from the effectivity of this Act
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the rules and regulations to implement the provisions of this Act.
7 
Sec. 14. Separability Clause. - If any provision or part hereof is held invalid
8 
or unconstitutional, the remainder of the law or the provision or part not otherwise
9 
affected shall remain valid and subsisting.
10 
Sec. 15. Repealing Clause. - Any law, presidential decree or issuance,
11 
executive order, letter of instruction, administrative order, rule, or regulation
12 
contrary to or inconsistent with the provisions of this Act are hereby repealed,
13 
modified, or amended accordingly.
14 
Sec. 16. Effectivity. - This Act shall take effect fifteen (15) days after its
15 
publication in the Official Gazette or in at least two (2) newspapers of general
16 
circulation.
Approved,