14/07/2024
Real Estate Fact:
𝐖𝐇𝐀𝐓 𝐇𝐀𝐏𝐏𝐄𝐍𝐒 𝐓𝐎 𝐘𝐎𝐔𝐑 𝐂𝐎𝐍𝐃𝐎 𝐀𝐅𝐓𝐄𝐑 𝟓𝟎 𝐘𝐄𝐀𝐑𝐒?
Is it true that your condominium's lifespan is set at 50 years? Learn the truth behind this statement to help you decide on whether or not to buy your own condo unit?
Planning to buy a condominium unit? Having some reservations at first is normal. But if one of the things bothering you is your condo’s lifespan, then you can breathe a sigh of relief now because your unit won’t be taken away from you after 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.
But a close reading of the Republic Act 4726, also known as the 𝘾𝙤𝙣𝙙𝙤𝙢𝙞𝙣𝙞𝙪𝙢 𝘼𝙘𝙩 𝙤𝙛 𝙩𝙝𝙚 𝙋𝙝𝙞𝙡𝙞𝙥𝙥𝙞𝙣𝙚𝙨, reveals that several factors dictate what the fate of your unit will be after 50 years.
Let’s end all speculations, once and for all. Here are three facts about a condominium’s lifespan derived from RA 4726:
𝐅𝐀𝐂𝐓 #𝟏: 𝐖𝐡𝐞𝐧 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. It’s the same as having a homeowners association in landed housing developments.
Shareholders possess the same right and voting power as other unit owners or shareholders. 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. Remember that it’s a collective decision of more than 50% of homeowners at the very least, not just one individual deciding on everything.
𝐅𝐀𝐂𝐓 #𝟐: 𝐀 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧’𝐬 𝐥𝐢𝐟𝐞𝐬𝐩𝐚𝐧 𝐢𝐬 𝟓𝟎 𝐲𝐞𝐚𝐫𝐬, 𝐛𝐮𝐭 𝐢𝐭 𝐜𝐚𝐧 𝐛𝐞 𝐫𝐞𝐧𝐞𝐰𝐞𝐝.
Your condominium doesn’t have a lifespan, but the corporation managing it has one. In the Philippines, 50 years is the lifespan of all companies and corporations, big or small.
However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point.
𝐅𝐀𝐂𝐓 #𝟑: 𝐓𝐡𝐫𝐞𝐞 𝐟𝐚𝐜𝐭𝐨𝐫𝐬 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐟𝐮𝐥𝐟𝐢𝐥𝐥𝐞𝐝 𝐭𝐨 𝐝𝐞𝐜𝐥𝐚𝐫𝐞 𝐚 𝐜𝐨𝐧𝐝𝐨𝐦𝐢𝐧𝐢𝐮𝐦 𝐮𝐧𝐢𝐧𝐡𝐚𝐛𝐢𝐭𝐚𝐛𝐥𝐞.
Here’s what the law says exactly about your condominium’s future after 50 years:
“That project has been in existence in excess of 50 years; that it is obsolete and uneconomic, and that condominium owners holding in aggregate more than fifty percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project.”
Many people believe that this clause already implies that a condominium has a set lifespan of 50 years, but carefully reading it shows that the condominium should fulfill three requirements to be declared uninhabitable.
✅ It should exist for at least 50 years.
✅ It should already be obsolete and uneconomical.
✅ 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. It’s on a case-by-case basis. A majority of today’s condominium developers construct condos using high quality and durable materials so that they won’t give in to ordinary wear and tear. 𝘼𝙙𝙫𝙖𝙣𝙘𝙚𝙙 𝙩𝙚𝙘𝙝𝙣𝙤𝙡𝙤𝙜𝙞𝙚𝙨 𝙖𝙧𝙚 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙞𝙣𝙜𝙡𝙮 𝙥𝙪𝙩 𝙩𝙤 𝙪𝙨𝙚, 𝙨𝙤 𝙢𝙤𝙙𝙚𝙧𝙣 𝙘𝙤𝙣𝙙𝙤𝙨 𝙬𝙞𝙡𝙡 𝙡𝙞𝙠𝙚𝙡𝙮 𝙨𝙩𝙞𝙡𝙡 𝙗𝙚 𝙞𝙣 𝙜𝙤𝙤𝙙 𝙨𝙝𝙖𝙥𝙚 𝙚𝙫𝙚𝙣 𝙖𝙛𝙩𝙚𝙧 50 𝙮𝙚𝙖𝙧𝙨.
And as previously mentioned, you’re a shareholder of your condominium corporation. Your vote—and other shareholders’ votes as well—matter. If only less than 50% of homeowners vote to demolish the building, then demolition won’t push through.
And even if your condo corporation decides to push through with the demolition, this usually means that the property will be sold first to another land developer. As a condo owner, you’re 𝘦𝘯𝘵𝘪𝘵𝘭𝘦𝘥 𝘵𝘰 𝘨𝘦𝘵 𝘢 𝘴𝘩𝘢𝘳𝘦 𝘰𝘧 𝘵𝘩𝘦 𝘴𝘢𝘭𝘦. Imagine the price of that land after so many 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. 𝙄𝙣𝙫𝙚𝙨𝙩 𝙞𝙣 𝙮𝙤𝙪𝙧 𝙙𝙧𝙚𝙖𝙢 𝙘𝙤𝙣𝙙𝙤 𝙞𝙣 𝙩𝙝𝙚 𝙋𝙝𝙞𝙡𝙞𝙥𝙥𝙞𝙣𝙚𝙨 𝙩𝙤𝙙𝙖𝙮 𝙖𝙣𝙙 𝙩𝙖𝙠𝙚 𝙖𝙙𝙫𝙖𝙣𝙩𝙖𝙜𝙚 𝙤𝙛 𝙩𝙝𝙚 𝙥𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙧𝙚𝙩𝙪𝙧𝙣𝙨 𝙘𝙤𝙢𝙞𝙣𝙜 𝙮𝙤𝙪𝙧 𝙬𝙖𝙮.
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