DUBAI: One thing that has been causing reluctance among first-time condo-buyers, especially the overseas Filipino workers (OFWs), is the apparent misunderstanding that a unit’s life – or for that matter, the building housing all units – is just 50 years.
Pursuitofpassion.ph, a life hacks portal, busts this myth, clearing the confusion by bringing up salient provisions of Republic Act 4726, enacted on June 18, 1966 and which governs the creation and administration of condominiums.
“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,” said an article published on the portal.
But a close study of the Republic Act 4726, also known as the Condominium Act of the Philippines, reveals that several factors actually dictate the fate of your unit after 50 years, it said.
• For one, the condominium being a corporate entity that owns the land where it is makes you a unit homeowner in a set up similar to homeowners’ associations in subdivisions.
As homeowers – or shareholders for that matter – possess rights and voting power they can vote to, say, repaint common areas, change the swimming pool tiles and so on.
“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,” according to the portal.
• Another salient point, which is more important, is that the corporation managing the condominium has a 50-year life, according to existing laws.
“However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point,” said the portal.
• Perhaps the question is what happens when the condominium has become obsolete and uneconomic to maintain after 50 years?
Citing the law, the portal said the condominium may only be declared uninhabitable and demolished on three factors: It should exist for at least 50 years; it should already be obsolete and uneconomical; and 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,” said the portal.
Moreover it argued that as “advanced technologies are increasingly put to use, modern condos will likely still be in good shape even after 50 years.”
Lastly, demolishing the condo entails majority vote soiIf only less than 50% of homeowners go for it, 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,” the portal said.
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