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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE
S. No. 2G97
w of t' ■’ S' ■■■' fU< ’.’P
24 MAY 22 P5 :21
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJEROTO
AN ACT AMENDING REPUBLIC ACT NO. 4726 OTHERWISE KNOWN AS
"THE CONDOMINIUM ACT"
EXPLANATORY NOTE
Since the enactment of Republic Act No. 4726, otherwise known as "The 
Condominium Act", it has for the longest time become not only a regulatory law but 
more importantly, it served as a guide or manual for both developers and unit owners. 
However, as new technologies emerge and our society continues to modernize, the 
updating of laws is not only necessary but also logical. Amendments are periodically 
introduced to some of our laws to enable them to adapt to the changing time and 
needs of our people.
The condominium Act is no different. Adjustments are crucial in these current 
times when living in condominiums have been a popular alternative for most Filipinos. 
Their rights and best interests as clients must be protected at all times. Also, of equal 
importance is seeing to it that developers remain enticed in engaging in the business 
of building condominiums.
Although unit owners and developers are distinct to each other, their concerns 
are not separate. The structures built by the developers are the same buildings that 
unit owners call home. They somehow have had a relationship at some point and time.
The proposed measure intends to simplify the voting requirements for voluntary 
dissolution of condominium corporations. This will enable the expeditious 
redevelopment of old buildings. This will ensure the safety of unit owners from natural 
disasters that have been a constant threat to condominium projects
Secondly, the bill shall empower unit owners and protect their interest through 
more equitable voting rights. Representatives of all unit owners, whether natural or 
juridical persons in the board of directors or trustees of the condominium corporation 
shall be authorized.


Lastly, this proposal aims to achieve efficient service in providing for the proper 
maintenance of common areas. Leasing of portions of such common areas shall also 
be authorized and the income generated from this shall inure to the benefit of unit 
owners.
To safeguard the welfare of all parties involved, this bill seeks to amend the 
Condominium Act to enable it to effectively and efficiently continue to fulfill its goals 
of providing quality life for those living in condominiums.
In view of the foregoing, the immediate passage of this bill is most earnestly
sought.
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
f;';- ’ )\
V of tilf ■¥! r I'tai'W
24 MRY 22 P5 :21
SENATE
S. No. 2G97
rt:-
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT AMENDING 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:
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Section 1. Short Title. - This Act shall be known as the "Condominium
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Redevelopment Act".
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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establish livable communities to provide equitable, inclusive, and resilient
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opportunities for the improvement of human well-being while contributing to the
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economic vitality of the community.
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It is likewise the policy of the State to ensure the safety and integrity of existing
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condominium developments in order to protect the public against hazards of aged
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buildings that pose threats to the protection of owners and the general public.
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Towards this end, the State shall establish rules for the proper construction,
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maintenance, repair, reconstruction and redevelopment of condominium projects,
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ensuring that the property rights of unit owners are respected while addressing the
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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 which are now in existence or which may be constructed
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hereinafter.
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Sec. 4. Section 4, last paragraph, of RA 4726 is hereby amended to read as
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follows:
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"Section 4. xxx


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"The enabling or master deed may be amended or revoked 
THROUGH A SPECIAL POWER GRANTED BY THE REGISTERED 
OWNERS, OR upon registration of an instrument executed by a 
simple majority of the registered owners of the property: Provided, 
That in a condominium project exclusively for either residential, er 
commercial, OR MIXED use, simple majority shall be on a per unit of 
ownership basis, OR and that in the case of mixed use, simple majority 
Ghall be on a floor area of ownership basis, AS DETERMINED IN 
THE MASTER DEED: Provided, further, That prior notifications to all 
registered owners are done: and Provided, finally. That any 
amendment or revocation already decided by a simple majority of all 
registered owners shall be submitted to the Housing and Land Use 
Regulatory Board DEPARTMENT OF HUMAN SETTLEMENTS AND 
URBAN DEVELOPMENT and the city/municipal engineer for 
approval before it can be registered. Until registration of a revocation, 
the provisions of this Act shall continue to apply to such property." 
Sec. 5. Section 5 of RA 4726 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 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.


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ANY TRANSFER OR CONVEYANCE OF THE COMMON AREAS (I)
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TO THE CONDOMINIUM CORPORATION OR CO-OWNERS AND
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(II) TO THE BUYER OF ALL UNITS OF THE PROJECT ON
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ACCOUNT OF SALE TRANSACTION PRECEDING A
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REDEVELOPMENT, SHALL BE EXEMPT FROM ALL NATIONAL
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AND LOCAL TAXES, INCLUDING INCOME TAX, CAPITAL GAINS
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TAX, VALUE ADDED TAX, AND LOCAL TRANSFER TAX."
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Sec. 6. Section 6(a) of RA 4726 is hereby amended to read as follows:
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"Section 6. Unless otherwise expressly provided in the enabling or
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master deed or the declaration of restrictions, the incidents of a
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condominium granted are as follows:
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(a) The boundary of a unit granted are the interior surfaces of the
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perimeter walls, floors, ceilings, windows and doors thereof, xxx
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UNIT AREAS 
WRITTEN ON ALL CONDOMINIUM
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CERTIFICATES OF TITLE SHALL BE DEEMED TO BE
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PRECEDED BY "APPROXIMATELY" AND FOLLOWED BY
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"SQUARE METERS, MORE OR LESS."
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Sec. 7. Section 9, paragraph (a), of RA 4726 is hereby amended to read as
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follows:
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"Section 9. xxx xxx xxx
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Such declaration of restrictions, among other things, may also provide:
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(a) As to any such management body:
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xxx xxx xxx
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(8) For entry by its officers^ afid THE DEVELOPER, THEIR agents
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AND REPRESENTATIVES into any unit DURING EMERGENCY
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SITUATIONS WHERE THERE IS DANGER OF DAMAGE TO LIFE
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OR PROPERTY, when necessary in connection with the maintenance
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or construction for which such body is responsible, OR FOR
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MAINTENANCE AND REPAIRS RELATIVE TO COMMON AREAS
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AND OTHER CONDOMINIUM UNITS ARE CONCERNED, AND
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THE MANAGEMENT BODY AND/OR DEVELOPER AND THEIR


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RESPECTIVE AUTHORIZED REPRESENTATIVES SHALL NOT, 
BY REASON THEREOF, BE LIABLE FOR TRESPASS FOR SUCH 
ENTRY. IN THE EVENT ENTRY IS NOT GRANTED DESPITE 
REASONABLE NOTICE GIVEN THE PREVAILING 
CIRCUMSTANCES, SUCH CONDOMINIUM UNIT OWNER 
SHALL BE DEEMED AS 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. 8. Section 10 of RA 4726 is hereby amended to read as follows:
"Section 10. Whenever the common areas in a condominium 
project are USED field 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 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


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STANDING. Membership in a condominium corporation, regardless
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of whether it is a stock or non-stock corporation, shall not be
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transferable separately from the condominium unit of which it is an
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appurtenance. When a member or stockholder ceases to own a unit in
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the project in which the condominium corporation owns or holds the
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common areas, he shall automatically cease to be a member or
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stockholder of the condominium corporation. UNLESS PROVIDED
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OTHERWISE IN THE ARTICLES OF INCORPORATION AND BY-
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LAWS, JURIDICAL UNIT OWNERS MAY NAME, CONSTITUTE
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AND APPOINT AN ATTORNEY-IN-FACT WHO SHALL
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REPRESENT THE SAME IN THE CONDOMINIUM
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CORPORATION AND WHO MAY LIKEWISE RUN FOR AND BE
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ELECTED AND APPOINTED TO THE BOARD OR ANY
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OFFICERSHIP POSITION; PROVIDED THAT SUCH ATTORNEY-
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IN-FACT WILL NOT CAUSE THE ALIEN INTEREST IN SUCH
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CORPORATION TO EXCEED THE LIMITS IMPOSED BY
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EXISTING LAWS."
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Sec. 9. Section 13, paragraph (d) of RA 4726 is hereby amended to read as
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follows:
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"Section 13. Until the enabling or the master deed of the
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project in which the condominium corporation owns or holds the
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common area is revoked, the corporation shall not be voluntarily
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dissolved through an action for dissolution under Rule 104 of the Rules
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of Court except upon a showing:
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XXX XXX XXX
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d. That the project or a material part thereof has been condemned or
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expropriated and that the project is no longer viable, or that the
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members holding in aggregate more than seventy percent interest in
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the corporation, if non- stock, or the stockholders representing more
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than seventy percent of the capital stock entitled to vote, if a stock
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corporatiOBj OR THAT THE CONDOMINIUM OWNERS, BY A
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VOTE OF A MAJORITY (50% PLUS 1) OF THE STOCKHOLDERS


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OR MEMBERS THEREOF AT A GENERAL OR SPECIAL MEETING 
DULY CALLED FOR THE PURPOSE, are opposed to continuation of 
the condominium regime after expropriation or condemnation of a 
material portion thereof; or"
Sec. 10. Section 14 of RA 4726 is hereby amended to read as follows:
"Section 14. The condominium corporation may also be dissolved 
by the affirmative vote of oil the Gtockholders or members thereof at
a general or special meeting duly called for the purpose: Provided-,
That all the rcquircmonts of Section sixty' two of the Corporation Law
arc compliod with.- IN THE FOLLOWING MANNER:
(a) 
IF THE PROJECT HAS BEEN IN EXISTENCE FOR THIRTY 
(30) YEARS OR MORE BUT LESS THAN FIFTY (50) YEARS, 
BY THE AFFIRMATIVE VOTE OF 2/3 OF THE 
STOCKHOLDERS OR MEMBERS THEREOF AT A GENERAL OR 
SPECIAL MEETING DULY CALLED FOR THE PURPOSE: 
PROVIDED, THAT ALL THE REQUIREMENTS OF TITLE XIV 
OF THE REVISED CORPORATION CODE OF THE 
PHILIPPINES ARE COMPLIED WITH; AND
(b) 
IF THE PROJECT HAS BEEN IN EXISTENCE FOR FIFTY 
(50) YEARS AND ABOVE, BY THE AFFIRMATIVE VOTE OF A 
SIMPLE MAJORITY OF THE STOCKHOLDERS OR MEMBERS 
THEREOF AT A GENERAL OR SPECIAL MEETING DULY 
CALLED FOR THE PURPOSE: PROVIDED, THAT ALL THE 
REQUIREMENTS OF TITLE XIV OF THE REVISED 
CORPORATION CODE OF THE PHILIPPINES.
FOR PURPOSES OF THIS SECTION, THE VOTES OF EACH 
UNIT OWNER SHALL BE DETERMINED AND IN 
ACCORDANCE WITH THE LAST PARAGRAPH OF SECTION 4 
ABOVE."
Sec. 11. Section 15 of RA 4726 is hereby amended to read as follows:
"Section. 15. Unless otherwise provided for in the declaration 
of restrictions upon voluntary dissolution of a condominium


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corporation in accordance with the provisions of Sections thirteen and 
fourteen of this Act, the corporation shall be deemed to hold a power 
of attorney from all the members or stockholders to sell and dispose 
of their separate interests in the project and liquidation of the 
corporation shall be effected by a sale of the entire project as if the 
corporation owned the whole thereof, subject to the rights of the 
corporate and of individual condominium creditors. A MEMBER OR 
STOCKHOLDER SHALL BE ENTITLED TO AN ADVANCED 
PAYMENT OF HIS OR HER PRO RATA SHARE FROM THE 
PROCEEDS OF THE SALE OF THE ENTIRE PROJECT BASED ON 
AN AGREED VALUATION BETWEEN THE CONDOMINIUM 
CORPORATION AND THE BUYER OF THE PROJECT. SUCH 
ADVANCED PAYMENT SHALL BE DEDUCTED FROM THE FINAL 
AMOUNT TO BE PAID TO THE MEMBER OR STOCKHOLDER." 
Sec. 12. Section 16 of RA 4726 is hereby amended to read as follows;
"Section 16. A condominium corporation shall not, during its 
existence, sell, exchange, leaseT-or otherwise dispose of the common 
areas owned or held by it in the condominium project unless 
authorized by the affirmative vote of a simple majority of the 
registered owners: Provided, That prior notifications to all registered 
owners are done: and Provided, further. That the condominium 
corporation may expand or integrate the project with another upon 
the affirmative vote of a simple majority of the registered owners, 
subject only to the final approval of the Housing and Land Use 
Regulatory Board DEPARTMENT OF HUMAN SETTLEMENTS AND 
URBAN DEVELOPMENT. THE CONDOMINIUM CORPORATION 
MAY LEASE A PORTION OF THE COMMON AREAS OWNED OR 
HELD BY IT IN THE CONDOMINIUM PROJECT PROVIDED 
THAT SUCH DOES NOT INTERFERE WITH THE OPERATIONS 
AND SAFETY OF THE COMMUNITY AS WELL AS WITH THE USE 
THEREOF BY THE UNIT OWNERS, AND ALL NET RENTAL


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INCOME THEREOF INURE TO THE BENEFIT OF THE MEMBERS 
OR STOCKHOLDERS, AS THE CASE MAY BE."
Sec. 13. Section 18 of RA 4726 is hereby amended to read as follows:
"Section 18. Upon registration of an instrument conveying a 
condominium, the Register of Deeds shall, upon payment of the proper 
fees, enter and annotate the conveyance on the ccrtificoto of title 
covcring-thc land included within the project and the transferee shall 
be entitled to the issuance of a "condominium owner's" copy of the 
pertinent-portion of such certificate of title. Said "condominium 
owner's" copy need not reproduce the ownership status or series of 
transactions in force or annotated with respect to other condominiums 
in the project. A copy of the description of the land, a brief description 
of the condominium conveyed, name and personal circumstances of 
the condominium owner would be sufficient for purposes of the 
"condominium owner's" copy of the certificate of title. No conveyance 
of condominiums or part thereof, subsequent to the original 
conveyance thereof from the owner of the project, shall be registered 
unless accompanied by a certificate of the management body of the 
project that such conveyance is in accordance with the provisions of 
the declaration of restrictions of such project AND THERE ARE NO 
OUTSTANDING CONDOMINIUM DUES OR AREARS OWED 
FROM SUCH UNIT.
In cases of condominium projects registered under the 
provisions of the Spanish Mortgage Law or Act 3344, as amended, the 
registration of the deed of conveyance of a condominium shall be 
sufficient if the Register of Deeds shall keep the original or signed copy 
thereof, together with the certificate of the management body of the 
project, and return a copy of the deed of conveyance to the 
condominium owner duly acknowledge and stamped by the Register 
of Deeds in the same manner as in the case of registration of 
conveyances of real property under said laws."


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Sec. 14. Implementing Rules and Regulations. The Human Settlements
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Adjudication Commission shall promulgate within six (6) months from the effectivity
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of this Act the implementing rules and regulations.
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Sec. 15. Repealing Clause. - All laws, decrees, orders, rules and regulations or
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other issuances or parts thereof inconsistent with the provisions of this Act are hereby
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repealed or modified accordingly.
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Sec. 16. 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. 17. Effectivity. - This Act shall take effect immediately after its publication
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in the Official Gazette or in a newspaper of general circulation.
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Approved.