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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
'22 JUL 12 P4 S6
SENATE
RUCEiVtDf..;.
S.B. No. 41 fi
Introduced by SENATOR IMEE R. MARCOS
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. Mj^COS


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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
v‘:'i1 AOffin" of ;?■ ■ > ! u t>
’22 JUL12 P4 56
SENATE
S.B, No. 416
Rl:CE'• D B'
Introduced by SENATOR IMEE R. MARCOS
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:
SECTION 1. Section 5 of Republic Act No. 4726 otherwise known as "The 
Condominium Act" is hereby amended to read, as follows:
"Section 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 ore owned by the owners of separoto 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 Filipme
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]. PROVIDED THAT, IN INSTANCES 
WHERE THE CONDOMINIUM PROJECT DOES NOT OWN THE 
LAND UPON WHICH THE CONDOMINIUM STRUCTURE IS 
CONSTRUCTED, SUCH AS BY LEASE, SUB-LEASE, USUFRUCT 
OR OTHER ARRANGEMENT, THE FOREIGN NATIONALITY 
RESTRICTION, AS PROVIDED IN THE CONSTITUTION, SHALL 
NOT APPLY TO THE SALE OF THE CONDOMINIUM UNITS OF 
SUCH CONDOOMINIUM PROJECTS. PROVIDED FURTHER


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repealed or modified accordingly.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