23/02/2024
What Happens to Your Condo After 50 Years? Is it true that your condominium's lifespan is set at 50 years?
One of the most common myths surrounding buying condos is that every condominium in the Philippines only has a lifespan of 50 years. After that, the building will be demolished, putting your investment to waste.
Let’s take a look at RA 4726:
1️⃣When you buy a condominium unit, you become part of a corporation.
A condominium corporation owns the land where your condominium is built. As a unit homeowner, you can think of yourself as a shareholder of that corporation. You can vote on issues like repainting common areas, changing the swimming pool tiles, or upgrading the facilities in the in-house gym.
Similarly, you can also vote on issues surrounding the fate of your condominium after 50 years.
2️⃣ A corporation’s lifespan is 50 years, but it can be renewed.
YOUR CONDOMINIUM DOES NOT HAVE A LIFE SPAN, but the corporation managing it has one. However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point.
3️⃣ Three factors need to be fulfilled to declare a condominium uninhabitable.
✅ First, it should exist for at least 50 years.
✅ Second, it should already be obsolete and uneconomical.
✅ Third, the owners should be opposed to any repair or restoration that can be done in the condominium.
It means that even if the condominium is already 50 years old, it doesn’t necessarily have to be obsolete and uneconomical.
THE GOOD NEWS is that majority of today’s condominium developers construct condos using high quality and durable materials so modern condos will likely still be in good shape even after 50 years.
So, if this 50-year fallacy is the only thing that’s holding you back from investing in a condominium unit, then reading this should ease your fears and apprehensions.
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