TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No.
25 AUG-5 P3:44
RnCEiViD B'.,
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 currently 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 
simple majority.


In view of the foregoing, the immediate passage of this bill is highly 
recommended.
Y EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 922
»U ■ >.
of 
:p
25 AUG-5 P3:44
Ri;ChT'‘-.0d'.
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:
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Section 1. Short Title. - This Act shall be known as the '"'Condominium
2 
Redevelopment Act.
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.
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To this end, the State shall establish rules for the proper maintenance, repair,
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reconstruction, and redevelopment of condominium projects, ensuring that the
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property rights of units owners are respected while addressing the needs of the
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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", which as now
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in existence, under construction, or which may be constructed hereinafter.
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Sec. 4. Section 13 paragraph (d) of Republic Act No. 4726 is hereby
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amended to read as follows;
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"Sec. 13. X X X
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"The enabling or master deed may be amended or
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revoked THROUGH A SPECIAL POWER GRANTED BY
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THE REGISTERED OWNERS, OR upon registration of an
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instrument executed by a simple majority of the registered
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owners of the property: Provided, That in a condominium
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project [exclusively] for [either] residential, [or]
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commercial, OR MIXED use, simple majority shall be on a
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per unit of ownership basis, OR [and that in the case of
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mixed use, simple majority shall be] on a floor area of
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ownership basis, AS DETERMINED IN THE MASTER
17 
DEED: Provided, further, That prior notifications to all
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registered owners are done: Provided, finaiiy. That any
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amendment or revocation already decided by a simple
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majority of all registered owners shall be submitted to the
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[Housing and Land Use Regulatory Board] DEPARTMENT
22 
OF HUMAN SETTLEMENTS AND URBAN
23 
DEVELOPMENT and the city/municipal engineer for
24 
approval before it can be registered. Until registration of a
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revocation, the provisions of this Act shall continue to apply
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to such property."
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Sec. 5. Section 6 of Republic Act No. 4726 is hereby further amended to read
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as follows:
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"Sec. 6. Unless otherwise expressly provided in the
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enabling or master deed or the declaration of restrictions,
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the incidents of a condominium grant are as follows:


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"(a) The boundary of the unit granted are the interior 
surfaces of the perimeter walls, floors, ceilings, windows and 
doors thereof. The following are not part of the unit bearing 
walls, columns, floors, roofs, foundations and other common 
structural elements of the building: lobbies, stairways, 
hallways, and other areas of common use, elevator 
equipment and shafts, central hearing, central refrigeration 
and central air-conditioning equipment, reservoirs, 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. UNIT AREAS WRITTEN ON ALL 
CONDOMINIUM CERTIFICATES OF TITLE SHALL BE 
DEEMED TO BE PRECEDED BY 'APPROXIMATELY' AND 
FOLLOWED BY'SQUARE METERS, MORE OR LESS'."
"X X X."
Sec. 6. Section 9 of Republic Act No. 4726 is hereby amended to read as
follows:
"Sec. 9. X X X.
"Such declaration of restrictions, among other things, 
may also provide:
"(a) As to any such management body:
"x X X
"(8) For entry by its officers, [aed] THE
DEVELOPER, THEIR agents AND REPRESENTATIVES 
into any unit DURING EMERGENCY SITUATIONS 
WHERE THERE IS DANGER OF DAMAGE TO LIFE OR 
PROPERTY, when necessary in connection with the 
maintenance or construction for which such body is 
responsible, OR FOR MAINTENANCE AND REPAIRS 
RELATIVE TO COMMON AREAS AND OTHER 
CONDOMINIUM UNITS ARE CONCERNED, AND THE


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MANAGEMENT BODY OR DEVELOPER AND THEIR
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RESPECTIVE AUTHORIZED REPRESENTATIVES SHALL
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NOT, BY REASON THEREOF, BE LIABLE FOR
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TRESPASS FOR SUCH ENTRY. IN THE EVENT ENTRY
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IS NOT GRANTED DESPITE REASONABLE NOTICE
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GIVEN THE PREVAILING CIRCUMSTANCES, SUCH
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CONDOMINIUM UNIT OWNER SHALL BE DEEMED AS
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HAVING ACTED IN BAD FAITH AND SHALL BE
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RESPONSIBLE FOR ALL DAMAGES WHICH MAY BE
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REASONABLY ATTRIBUTED TO NOT HAVING
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ALLOWED ENTRY FOR THE PREVENTION OF DAMAGE
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OR PERFORMANCE OF MAINTENANCE,
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CONSTRUCTION AND REPAIR WORKS."
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Sec. 7. Section 10 of Republic Act No. 4726 is hereby amended to read as
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follows:
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"Sec. 10. Whenever the common areas in a
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condominium project are [fteld] USED by a condominium
18 
corporation, such corporation shall constitute the
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management body of the project. The corporate purposes
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of such a corporation shall be limited the holding of the
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common areas, either in ownership or any other interest in
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real property recognized by law, to the management of the
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project, and to such other purposes as may be necessary
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incidental or convenient to the accomplishment of said
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purposes. CONDOMINIUM DUES BASED ON THE
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ACTUAL USE, ACCESS AND ENJOYMENT BY THE
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MEMBERSHIP OR STOCKHOLDING OF THE COMMON
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AREAS OF THE PROJECT, WHETHER WHOLLY OR
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PARTIALLY, MAY BE ASSESSED BY THE
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CONDOMINIUM 
CORPORATION 
UPON
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INCORPORATION FOR MAINTENANCE OF THE
32 
COMMON AREAS.


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"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 non-stock 
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/she shall automatically cease to be a 
member or stockholder of the condominium corporation.
UNLESS PROVIDED OTHERWISE IN THE ARTICLES 
OF INCORPORATION AND BY-LAWS, JURIDICAL 
UNIT OWNERS MAY NAME, CONSTITUTE AND 
APPOINT AN ATTORNEY-IN-FACT WHO SHALL 
REPRESENT THE SAME IN THE CONDOMINIUM 
CORPORATION AND WHO MAY LIKEWISE RUN FOR 
AND BE ELECTED AND APPOINTED TO THE BOARD 
OR ANY OFFICERSHIP POSITION: PROVIDED, THAT 
SUCH ATTORNEY-IN-FACT WILL NOT CAUSE THE 
ALIEN INTEREST IN SUCH CORPORATION TO EXCEED 
THE LIMITS IMPOSED BY EXISTING LAWS."
Sec. 8. Section 13 of Republic Act No. 4726 is hereby amended to read as
follows:
"Sec. 13. Until the enabling or the master deed of the 
project in which the condominium corporation owns or holds


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the common area is revoked, the corporation shall not be 
voluntarily dissolved through an action for dissolution under 
Rule 104 of the Rules of Court except upon a showing:
"X X X
"(d) That the project or a material part thereof has 
been condemned or expropriated and that the project is no 
longer viable, [or that the members holding in aggregate 
more than seventy percent interest in the corporation, if
non-stock, or -the stockholders -representing - more than
seventy percent- of the-capital stock entitled to vote, if a
stock corporation,] OR THAT THE CONDOMINIUM 
OWNERS, BY A VOTE OF A MAJORITY (50% PLUS 1)
OF THE STOCKHOLDERS OR MEMBERS THEREOF AT A 
GENERAL OR SPECIAL MEETING DULY CALLED FOR 
THE PURPOSE, are opposed to the continuation of the 
condominium regime after expropriation or condemnation of 
a material portion thereof; or
"X X X."
Sec. 9. Section 14 of Republic Act No. 4726 is hereby amended to read as
follows:
"Sec. 14. The condominium corporation may also be 
dissolved by [by the affirmative vote of all the stockholder or 
members thereof at a general or special meeting duly called
for the purpose: Provided, That all the requirements of
Section sixty-two of-the Corporation Law are complied 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


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REQUIREMENTS OF TITLE XIV OF THE REVISED
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CORPORATION CODE OF THE PHILIPPINES ARE
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COMPLIED WITH.
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"FOR PURPOSES OF THIS SECTION, THE VOTES
5 
OF EACH UNIT OWNER SHALL BE DETERMINED AND
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IN ACCORDANCE WITH SECTION 4 ABOVE."
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Sec. 10. Section 15 of Republic Act No. 4726 is hereby amended to read as
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follows:
9 
"Sec. 15. Unless otherwise provide for in the
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declaration of restrictions upon voluntary dissolution of a
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condominium corporation in accordance with the provisions
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of Sections thirteen and fourteen of this Act, the corporation
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shall be deemed to hold a power of attorney from all the
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members or stockholders to sell and dispose of their
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separate interests in the project and liquidation of the
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corporation shall be effected by a sale of the entire project
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as if the corporation owned the whole thereof, subject to the
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rights of the corporate and of individual condominium
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creditors. A MEMBER OF STOCKHOLDER SHALL BE
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ENTITLED TO AN ADVANCED PAYMENT OF THEIR
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PRO RATA SHARE FROM THE PROCEEDS OF THE SALE
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OF THE ENTIRE PROJECT BASED ON AN AGREED
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VALUATION BETWEEN THE CONDOMINIUM
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CORPORATION AND THE BUYER OF THE PROJECT.
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SUCH ADVANCED PAYMENT SHALL BE DEDUCTED
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FROM THE FINAL AMOUNT TO BE PAID TO THE
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MEMBER OR STOCKHOLDER."
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Sec. 11. Section 16 of Republic Act No. 4726 is hereby further amended to
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read as follows:
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"Sec. 16. A condominium corporation shall not, during
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its existence, sell, exchange, [lease], or otherwise dispose of
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the common areas owned or held by it in the condominium


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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: 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 
Beard] 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 INCOME THEREOF INURE TO THE BENEFIT 
OF THE MEMBERS OR STOCKHOLDERS, AS THE CASE 
MAY BE."
Sec. 12. Section 18 of Republic Act No. 4726 is hereby amended to read as
foliows:
"Sec. 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 certificate of title covering the 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 to 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


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personal circumstances of the condominium owner would be
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sufficient for purposes of the "condominium owner's" copy of
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the certificate of titie. No conveyance of condominiums or
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part thereof, subsequent to the original conveyance thereof
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from the owner of the project, shall be registered unless
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accompanied by a certificate of the management body of the
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project that such conveyance is in accordance with the
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provisions of the declaration of restrictions of such project
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AND THERE ARE NO OUTSTANDING CONDOMINIUM
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DUES OR ARREARS OWED FROM SUCH UNIT.
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"In cases of condominium projects registered under
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the provisions of the Spanish Mortgage Law or Act 3344, as
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amended, the registration of the deed of conveyance or a
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condominium shall be sufficient if the Register of Deeds shall
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keep the original or signed copy thereof, together with the
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certificate of the management body of the project, and
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return a copy of the deed of conveyance to the
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condominium owner duly acknowledged and stamped by the
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Register of Deeds in the same manner as in the case of
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registration of conveyances of real property under said
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laws."
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Sec. 13. Implementing Rules and Regulations. - The Department of Human
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Settlements and Urban Development and the Human Settlements Adjudication
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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.
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Sec. 14. Separability Clause. - If any provision or part hereof is held invalid
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or unconstitutional, the remainder of the law or the provision or part not otherwise
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affected shall remain valid and subsisting.
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Sec. 15. Repealing Clause. - Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative order, rule, or regulation
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contrary to or inconsistent with the provisions of this Act are hereby repealed,
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modified, or amended 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 at least two (2) newspapers of general
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circulation.
Approved,
10