14'" CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
s.B.N~. '787 
Introduced by Senator Fbmon Bong Revilla, Jr. 
EXPLANATORY NOTE 
Condominiums became popular and were developed to accommodate urban living 
in areas in which the cost of land was high and building a single-detached house seemed 
economically impossible. Build-To-Own is the latest concept in property develnpment 
.), 
that has piqued the interest of hopeful homeowners 
Condominiums are located in business districts and accessibility to one's place of 
work is a common criterion in opting to live in one. They are usually high-rise, although 
a row of houses can also be a condomininm. The condominium association in which all 
unit owners automatically become members manages the operation and management of 
the common spaces and utilities. 
The government has been encouraging private sector investments by creating 
business centers such as economic zones, industrial estates, and export processing zones, 
among others. 
This bill seeks to amend RA 4627 otherwise known as the Condominium Act as 
amended by FL4 7899, to include industrial estate in the definition of the Condominium, 
It basically expand the definition of condominium to include multiple units in a 
horizontal building such as pre-built standard factory buildings and community facilities 
within the industrial estates and economic zones, and consequently allows foreign 
investors to hold condominium certificates of title in their name. 
In view of the foregoing, the immediate passage of this bill is highly 
recommended. 


14fh CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPTNES 
) 
First Regular Session 
) 
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SENATE 
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Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
MODIFYING THE DEFINITION OF A CONDOMINIUM UNIT, AMENDING 
FOR THE PURPOSE REPUBLIC ACT NUMBERED FOUR THOUSAND SEVEN 
HUNDRED TWENTY-SIX, AS AMENDED, OTHERWISE KNOWN AS THE 
CONDOMINIUM ACT, TO APPLY TO INDUSTFUAL ESTATES AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of the Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 2 of the Republic Act No. 4726, as amended, entitled “An 
Act to Define Condominium, Establish Requirements for its Creation and Govern its 
Incidents,” hereinafier referred to as the Act, is hereby amended and read a follows: 
Section 2. A condominium is an interest in real property consisting of a separate 
interest in a unit in a residential, industrial or commercial building OR 
INDUSTRIAL ESTATE and an undivided interest in common areas of the 
building OR INDUSTRIAL ESTATE. A condominium may include, in addition, 
a separate interest in other portions of such real property. Tide to the common 
areas, including the land, or the appurtenant interest in such areas, may be held by 
a corporation specially formed for the purpose, hereinafter known as the 
“condominium corporation,” I which the holders of the separate interests shall 
automatically be embers or shareholders, to the exclusion of others, in proportion 
to the appurtenant interest of their respective units in the common areas.” 
“The real rights n condominium may be ownership or any other interest in 
real property recognized by law, on property in the Civil Code and other pertinent 
laws.” 
SECTION 2. Subsections (b) and (c) of Section 3 of the Act also amended to read 
as follows: 
“ (b) “ Unit” means a part of the condominium project intended for any 
type of independent use of ownership, including one or more room or spaces 
located in one or more floors ( or part or parts of floors) in a building or buildings 
and such accessories as may be appended thereto: PROVIBED, THAT IN THE 


CASE OF INDUSTRIAL ESTATES, THE BUILDINGS, PLANTS, 
HOUSES, RECREATIONAL FACILITIES AND FACTORIES IN A 
CONDOMINIUM PROJECT SHALL BE CONSIDERED AS SEPARATE 
UNITS AS HEREIN DEFINED.” 
“(c) “Project” means the entire parcel of real property divided into 
condominium UNITS, including all structures thereon: PROVIDED, THAT IN 
THE CASE OF AN INDUSTRIAL ESTATE, PROJECT REFERS TO A TRACT 
OF LAND SUBDIVIDED AND DEVELOPED ACCORDING TO A 
COMPREHENSIVE 
PLAN 
UNDER 
A 
UNIFIED 
CONTINUOUS 
MANAGEMENT 
AND 
WITH 
PROVISIONS 
FOR 
BASIC 
STANDARD FACORY BUILDING AND COMMUNITY FACILITIES FOR 
THE USE OF TJ3JZ COMMUITY OF INDUSTRIES.” 
SECTION 3. A new subsection, subsection (Q, 
is hereby inserted after Section 3 
INFRASTRUCTURE AND UTILITIES WITH OR WITHOUT PRE-BUILT 
of the Act and shall read as follows: 
“(F) “INDUSTRIAL ESTATE “MEANS A LARGE AND SUITABLE 
TRACT OF LAND WHICH HAS BEEN SUBDIVIDED AND DEVELOPED 
PRIMARILY FOR TEE USE OF A COMMUNITY OF INDUSTRIES 
WHICH MAY ICLUDE PROVISIONS FOR STAFF HOUSING AND 
RECREATIONAL FACILITIES PROVIDED WITH ROADS, WATER 
SUPPLY FACILITIES, ELECTRICAL FACIITIES, COMMUNICATION 
FACIITIES, SEWERAGE AND DRAINAGE SYSTEMS, AND THER 
INFRASTRUCTURES. THE ESTATE SRALL BE SO PLANNED BASED 
ON SOUND PLANNING PRINCIPLES AS TO PROVJDE GOOD 
LAYOUT AND JUDICIOUS ALLOCATION OF AREAS. INDUSTRIAL 
ESTATES MAY ALSO INCLUDE SCIENCE AND TECHNOLOGY 
PARKS.” 
SECTION 4. Subsections (a), (b) and (c) of Section 6 of the Act are hereby 
amended to read as follows: 
“(a) The boundary of the unit granted are the interior surfaces of the perimeter 
walls, floors, ceilings, windows and doors thereof: PROVIDED, THAT IN 
THE CASE OF AN INDUSTRIAL ESTATE, THE WHOLE BUILDINGS, 
PLANTS OR FACTORIES IN A CONDOMINIUM PROJECT MAY BE 
CONSIDERED AS SEPARATE UNITS DEFINED UNDER SECTION 3 
HEREOF. 
“(b) THE BOUNDARY OF A UNIT SHALL NCLUDE THE OUTER 
SURFACES OF THE PERIMETER WALLS OR FENCES, EXCEPT IN 
CONDOMINIUM PROJECTS LOCATED INSIDE THE INDUSTRIAL 
ESTATES. The following are not part of the unit bearing walls, columns, floors, 
roof, foundations and other common structural elements of the buildings, lobbies, 
hallways, and other areas of common use, elevator equipment and shafts, central 
refrigeration and central air conditioning equipment, reservoir, tanks, pumps and 
other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and 
other utility installations, wherever located, except the outlets thereof when 
located within the unit.” 
“(c) Each condominium owner shall have the exclusive right to paint, repaint, tile, 
wax, paper or otherwise refinish and decorate the inner surfaces of the walls, 
ceilings, floors, windows and doors bounding his on unit: PROVIDED, 
HOWEVER, THAT IN THE CASE OF A CONDOMINIUM UNIT AN 


INDUSTRIAL ESTATE SUCH RGHT MAY BE EXERCISED OVER THE 
EXTERNAL SURFACES OF THE SAID UNIT.” 
SECTION 5. Section 11 of the Act is hereby amended to read as follows: 
“Section 11. THE DESIGN STANDARDS OF A CONDOMINIUM 
PROJECT SHALL BE REGULATED BY THE HOUSING AND LAND USE 
REGULATORY BOARD (HLURB): PROVIDED, THAT THE PROJECTS 
LOCATED IN AN ECOZONE SHALL BE REGULATED BY THE PHILIPPINE 
ECONOMIC ZONE AUTHORITY (PEZA), WITHOUT PREJUDICE TO THE 
AUTHORITY OF THE SECURITIES AND EXCHANGE COMMISSION 
CORPORATION IN ACCORDANCE TH THE PROVISIONS OF THE 
CORPORATION CODE. The term of the said corporation shall be coterminous with 
the duration of the condominium projects, the provisions of the Corporation law to the 
contrary notwithstanding.” 
SECTION 6. Section 12 of the Act is hereby amended to read as follows: 
Section 12. [In case of involuntary dissolution of a condominium 
corporation for any of the causes by the law, the common areas owned or 
held by the corporation shall, by way of liquidation, be transferred pro- 
indiviso and in proportion to their interest in corporation to the members 
or stockholders thereof, subject to the superior rights of the corporation 
creditors. Such transfer or conveyance shall be deemed to be a liquidation 
of the interest of such members or stockholders in the corporation. After 
such transfer or conveyance, the provisions of this Act governing 
undivided co-ownership of, or undivided interest in, the common areas in 
the condominium projects shall fully apply.] THE DISSOLUTION OF 
THE CONDOMINlOM CORPORATION IN ANY MANNER AND 
FOR ANY OF THE CONDOMINIUM CORPORATION IN ANY 
MANNER AND FOR ANY OF THE CAUSES PROVIDED BY LAW 
SHALL BE GOVERNED BY THE PROVISIONS OF THE TITLE 
XlV OF THE CORPORATION CODE.” 
SECTION 7. A new section, Section 25, is hereby instead after Section 24 of the 
Act shall read as follows” 
“SECTION 25. THEBUILDING AND DESIGN STANDARDS FOR THE 
CONDOMINIUM PROJECTS SHALL BE 
BASED 
ON 
SOUND 
PLANNING RINCIPES AS TO PROVIDE GOOD AYOUT AND 
JUDICIOUS 
LLOCATION 
OF 
AREAS 
AMONG 
OTHERS, 
ACCESSIBILITY REATURES OR DISABLED PERSONS PURSUANT TO 
BATAS PAMBANSA BILANG 344 OF 1984. THE DESIGN STANDARDS 
FOR CONDOMINIUM PROJECTS SHALL, INCLUDE A SYSTEM OF 
LAND UTILIZATION SPECIFIED IN TE FRAiMEWORK PLAN SET BY 
THE HOOUSWG AND LAND USE BGULATORY BOARD (HLURB) 
AND OTHER EXISTING LAWS. THE EXISTING LAWS ON BALANCED 
HOUSING DEVELOPMENT AND OPEN SPAES SHALL APPL ON 
ECOZONES.” 
SECTION 8. Sections of the Act subsequent to the new Section 25 are hereby 
renumbered accordingly. 
SECTION 9. Separability Clause - if any provision of this Act is held 
unconstitutional or invalid, all other provisions not affected thereby shall remain valid. 


SECTION 10. Effectivity - This Act shall take effect fifteen (15) days following 
its publication in the OMicial Gazette or in at least two (2) newspapers of general 
circulation whichever comes first. 
Approved,