alawa - condo & other re concepts

7/23/2019 ALAWA - Condo & Other RE Concepts

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CONDOMINIUM CONCEPT AND OTHERCONDOMINIUM CONCEPT AND OTHER

TYPES OF REAL ESTATE HOLDINGSTYPES OF REAL ESTATE HOLDINGS

Comprehensive Real Estate Seminar andComprehensive Real Estate Seminar andReview (CRESAR for PRC LicensureReview (CRESAR for PRC Licensure

Exam)Exam)Phela Grande Hotel General Santos Cit!Phela Grande Hotel General Santos Cit!"arch #$ %$"arch #$ %$

PRC Licensed Lecturer'Realtor ARTURO M. LAWA, C.P.V.Realtor ARTURO M. LAWA, C.P.V.

PRC RE Appraier No. !!!!"#$PRC RE Appraier No. !!!!"#$

PRC RE %ro&er No.!!!"!!'PRC RE %ro&er No.!!!"!!'


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I()eti(* i( Real Etate Even though changes in the economy have increased risk or

lowered returns, the investment market continues to deviseinnovative and attractive investment strategies.

These developments make it important for real estate licensees tohave an elementary and up-to-date knowledge of real estateinvestment.

Even the average homebuyer wants assurance that a residentialpurchase is a good investment out of a hard-earned savings.

Therefore, a competent investment advisor should always besought to give experts advice to an investors specic needs.


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For+ o Real Etate I()et+e(t

Direct Ownership both individuals !natural" andcorporations !#uridical" may own real estate directly andmanage it for appreciation or to benet for cash $ow!income".

%roperty held for appreciation is generally expected&

-to increase in value while it is owned and

-to show prot when it is sold.

Income property property held for recurring income aswell as a potential prot upon its sale ! ex. rentalproperties".


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A-)a(ta*e 'erves as ination hedes $uctuation of real estate

values resulting to investments failing to produce returnsgreater than the rate of in$ation, yet many (Einvestments have shown above-average rates of returns,generally greater than the prevailing interest ratescharge by mortgage lenders.

The investors can use the leveraeof borrowed moneyto nance a (E purchase and feel relatively sure that, ifheld long enough, the asset will yield more money thanit cost to nance the purchase.

(E o)ers investors reater controlover theirinvestments than do other options, such as stocks,

bonds or other securities. (E investors also receive certain tax *ene+t like

investments within %E*+, tax incentives granted bys.


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Dia-)a(ta*e

(E is not hihl! li,uidover a short period of time Li,uidit! refers to how /uickly an asset may beconverted into cash. nlike listed stocks, only a call tostockbroker when funds are needed.

(E investor may have to sell the property at asubstantially lower price than desired to ensure as ,uic-sale.

(E investment is expensive. arge amounts of capitalare usually re/uired.

0nvestment decision is di.cultand must be based oncareful studies of experts.

0nvestor can rarely sit idly by and watch his money grow,it re,uires active manaement *! himself or

professionalpropert! manaer. Ex. 1ow much rent tobe charged2 how should repairs 3 tenant grievances behandled.


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CONDOMINIUM CONCEPT

AS REAL ESTATE INVESTMENT


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- (eference materials exist and support that4ondominium ownership originated underancient (oman aw2 and under that law,4ondominium means 5607T 687E('10%.

- 0n the modern concepts, #oint-ownershipapplies only to 469967 +(E+'

- The hori:ontal or air-space are ownedindividually in ;EE-'09%E.


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0n the


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CRITERIA O CONDOMINIUM SITE

- 4onforming to 4omprehensive and se %lan, *oning

6rdinance, 7ational Fuilding 4ode2- %rivacy, order, health and safety of residents are not#eopardi:ed2

- 6pen spaces are provided like courts, yards, setbacks,parking spaces, light wells, uncovered driveways,

access roads, bu)er strips, parks and playgrounds.- Easement for utilities such as drainage, water supply,

power lines, etc.


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WELLPLANNED AREAS

- 9ust consider ventilation, sunlight and land

characteristics2 - 7o development allowed within Am mandatory

easement on both sides of fault lines identied by

%10G64' !7H(94 F( 7o. A="

SITE PRESERVATION/ALTERATION

- Slope& nish grade must have slope that channelrainwater to street drains and prevent erosion of thesite or ad#oining sites

- Preer)atio( o Site Aet. Trees with caliperdiameter of ==@mm. %reserve topsoil in open areas.round cover comply with HE7( standards.


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RECREATIONAL AREAS

- %arks and playground must be provided !exclusive ofparking, easement, etc."2

- 9inimum area for single parkIplayground is A@s/.m.2

- 7ot re/uired if condo is not more than @@m from apublicly accessible parkIplayground2

- Tennis courts and swimming pool are optional2

SPACE ALLOCATION

- 'hall provide for living, dining, kitchen, sleeping, toiletand bath, laundryIdrying and storage according toFuilding 4ode.


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PAR0ING SPACE RE1UIREMENTS

- %rovide on-site and o)-site parking in accordance to the

Fuilding 4ode 2 - +dditional parking if re/uired by 6rdinance of .

ACCESS ROADS

- 9in m for ma#or and minor (68s2

- 9in Jm for carriageway 2

- 9in =m for sidewalks and planting strips2

- 9in


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%ASIC FACILITIES AND SERVICES

- 'ervice +rea !aundryIHrying +rea"

- 8ater supply, power, sewerage, drainage- (eservoirI8ater Tank

- 9echanical E/uipmentI'ervice +reas like elevators

- (efuse 4ollectionIHisposal

- ;ire 'afety ;acilities

FLOOR AREA RE1UIREMENTS OF SINGLE OCCUPANCYUNITS

- 9inimum ;+ is


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FLOOR AREA RE1UIREMENTS OF FAMILY DWELLINGUNITS

- 9inimum ;+ is ?J s/.m. for open market condo pro#ects2

- 9inimum ;+ is == s/.m. for medium cost condo pro#ects.

VARIANCES

- Gariations from design standards is allowed if&

- ocation is uni/ue and di)erent and owners cannot

obtain reasonable return on the condo pro#ects2- 1ardship is not self-created2

- %roposed variance to existing permanent structure isnecessary to permit a reasonable use2

- Gariance will not a)ect essential character of the location2

- Gariance will not give rise to unauthori:ed reclassicationof approved subdivision or condo plan.


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REPU%LIC ACT NO. #'"2REPU%LIC ACT NO. #'"2

AN ACTAN ACT

TO DEFINE CONDOMINIUM, ESTA%LISH RE1UIREMENTSTO DEFINE CONDOMINIUM, ESTA%LISH RE1UIREMENTSFOR ITS CREATION AND GOVERN ITS INCIDENTSFOR ITS CREATION AND GOVERN ITS INCIDENTS

De3laratio(De3laratio(4

/0he real riht in Condominium ma! *! ownership or

an! interest in real propert! reconi1ed *! law onpropert! in the Civil Code and other pertinent laws23


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SALIENT POINTS OF THE LAWSALIENT POINTS OF THE LAW


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Co(-o+i(i5+Co(-o+i(i5+ !. contogether K dominiumrule " isan interest in real property consisting of a separateinterests in a unit in a residential, industrial or commercialbuilding or in industrial estate. +n undivided interests incommon, directly and indirectly, in the land, or theappurtenant interest of their respective units in the

common areas.U(itU(it - means a part of the condominium pro#ect

intended for any type of independent use or ownership,including one or more rooms or spaces located in one ormore $oors !or parts of $oors" in a building or buildingsand such accessories as may be appended thereto2provided, that in the case of an industrial estate whereinthe condominium pro#ect consists of several buildings,plants and factories may, by themselves, be consideredseparately as individual units as herein dened.

Pro6e3tPro6e3t - means the entire parcel of real propertydivided or to be divided in condominiums, including allstructures thereon.


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I(-5trial Etate - means a certain tract of land whichis subdivided and developed primarily for industrialpurposes and which usually includes provisions for basicinfrastructure facilities and common services such as roads,water, electricity, drainage and waste disposal system.

Co++o( area- means the entire pro#ect except allunits separately granted or held or reserved.

To -i)i-e real propert7- means to divide theownership thereof or other interests therein by conveyingone or more condominium therein but less than the wholethereof.


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T8i A3t 8all appl7 to propert7 -i)i-e- or to 9e-i)i-e- i(to 3o(-o+i(i5+ o(l7 i t8ere 8all 9ere3or-e- i( t8e Re*iter o Dee-, a(- -5l7a((otate- i( t8e 3orrepo(-i(* Certi:3ate o Titleo t8e la(-, i t8e latter 8a- 9ee( pate(te- orre*itere- 5(-er eit8er t8e La(- Re*itratio( orCa-atral A3t, a(- to*et8er ;it8 t8e e(a9li(* orMater Dee-.


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A. + certicate of the registered owner of the property thatthey consent to the registration of the Heed2

J. %lans to be appended to the 9aster Heed as integral partsthereof&

a. 'urvey %lan of the land included in the pro#ect2b. Hiagrammatic ;loor %lans of each building unit, its

relative location and approximate dimensions.

D. +ny reasonable restriction not contrary to law, morals, orpublic policy regarding the right of any condominium

owner to alienate or dispose of his condominium.


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'ec. C. The enabling or 9aster Heed may be amended orrevoked upon registration of an instrument executed by asimple ma#ority of the registered owners of the property&

- 0n a condominium pro#ect exclusively for either residentialor commercial use, simple ma#ority shall be on per unit ofownership basis.

- 0n the case of mixed use, simple ma#ority shall be on a$oor area of ownership basis.


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- %rior notications to all registered owners shall be submittedto the 1(F and the cityImunicipal engineer for approvalbefore it can be registered by the (6H2

- ntil registration of a revocation, the provisions of this +ctshall continue to apply to such property.


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- +ny transfer of a unit or an apartment, oLce or store orother space therein, shall include the conveyance of thecommon areas or in a proper case, the membership or shareholdings in the condominium corporation.

- 8here the common areas in the condominium pro#ect areheld by the owners of separate units as co-owners hereof,no condominium unit shall be transferred to persons otherthan ;ilipino citi:ens or corporation at least J@M of thecapital stock belong to ;ilipino citi:ens, except in cases ofhereditary succession.

- 8here the common areas in a condominium pro#ect areheld by a corporation, no transfer of a unit shall be valid ifthe concomitant transfer of the appurtenant membership orstockholding in the corporation will cause the alien interestto exceed the limits imposed by existing laws.


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?. The following are not part of the unit& load *earinwalls columns oors roofs foundations and othercommon structural elements of the *uildins4 lo**iesstairwa!s hall wa!s and other areas of common useelevator e,uipment and shafts central heatin centralrefrieration and central air conditionin e,uipment

reservoir tan-s pumps and other central services andfacilities pipes ducts ues chutes conduits wiresand other utilit! installations wherever located exceptthe outlets thereof when located within the unit2

C. There shall pass with the unit, as an appurtenant thereof,an exclusive easement for the use of the air space

encompasses by the boundaries of the unit as it exists at anyparticular time and as the unit may lawfully be altered orreconstructed from time to time.


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A. nless otherwise provided, the common areas areheld in common *! the holders of units in e,ualshare one for each unit4

J. + non6exclusive easement for inress eress andsupport through the common areas in appurtenant to

each unit and the common areas are sub#ect to sucheasement2

D. Each condominium owner shall have theexclusiveriht to paint, repaint, tile, wax, paper or otherwiserenish and decorate the inner surfaces of the walls,ceilings, $oors, windows and doors hounding his own unit&provided, that in the case of an industrial estatecondominium unit, such right may be exercised over theexternal surfaces of the said unit2


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. Each condominium owner shall have the exclusiveriht to mortae plede or encum*er hiscondominium and to have the same appraisedindependentl! of the other condominium owner2

>. Each condominium owner has also the a*solute rihtto sell or dispose of his condominium unless the 9asterHeed contains a re/uirements that the property be rsto)ered to the condominium owners within a reasonableperiod of time before the same is o)ered to outsideparties2


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-The owner of a pro#ect shall, prior to the conveyance of anycondominium therein, re*iter a De3laratio( ore*iter a De3laratio( o

Retri3tio(Retri3tio(, which restrictions shall ensure to bind allcondominium owners in the pro#ect , such liens, unlessotherwise, provided, may be enforced by the condominium

owner or by the 9anagement 4orporation.

-The Re*iter o Dee-Re*iter o Dee-shall enter and annotate theHeclaration of (estrictions, upon the 4erticate of Titlecovering the land included within the property.


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a. +s to 9anagement Fody !4ondominium 4orporation"&For the power thereof, including power to enforce the

provisions of the Declarations of Restrictions;For the maintenance of insurance policies insuring

condominium owners against loss by the, casualty,

liability, workmen's compensation and other insurablerisks and for bonding of the members of anymanagement body;

rovisions for maintenance, utility, gardening and otherservices bene!ting the common areas for the operationsof the building, and legal, accounting and other

professional and technical services;For purchase of materials, supplies and the like needed

by the common areas;


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For payment of ta"es and special assessment whichwould be a lien upon the entire pro#ect or commonareas, for discharge of any encumbrance leviedagainst the entire pro#ect of the common areas;

$he manner for delegation of its powers; For reconstruction of any portion or portions of anydamage to or destruction of the pro#ect;

For entry by its o%cers and agents into any unit whennecessary in connection with the maintenance orconstruction for which such body is responsible;

For a power of attorney to the management body to sell

the entire pro#ect for the bene!t of all of the ownersthereof when partition of the pro#ect may be authori&edunder ection ( of this )ct, which said power shall bebinding upon all of the condominium owners regardlessor whether they assume the obligations of therestrictions or not


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b" The manner and procedure for amending such restrictions,provided, that the vote of not less than a ma#ority in interest ofthe owners is obtained2

c" ;or independent audit of the accounts of the 9anagement Fody2

d" ;or reasonable assessments to meet authori:ed expenditures,each unit to be assessed separately for its share of expenses inproportion to its ownerNs fractional interest in any common areas2

e" ;or the subordination of the liens securing such assessments to

other lien either generally or specically described2

f" ;or conditions upon which partition of the pro#ect anddissolution of the condominium corporation may be made. 'uchright to partition or dissolution may be conditioned upon failure ofthe condominium owners to rebuild within a certain period or uponspecied percentage of damage to the building, or upon a decisionof an arbitration, or upon any other reasonable condition.


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-4ommon areas in a condominium pro#ect are held by acondominium corporation which shall constitute the9anagement Fody of the pro#ect.

-The +rticles of 0ncorporation or Fy-aws of the corporationshall not contain any provision contrary to the provision of

this +ct, the enabling or 9aster Heed, or the Heclaration of(estrictions of the pro#ect.

-9embership in a condominium corporation regardless ofstock or non-stock corporation, shall not be transferableseparately from the condominium unit.

-8hen a memberIstockholder ceases to own a unit in the

pro#ect in which the condominium corporation owns or holdsthe common area, he shall automatically cease to be amemberIstockholder of the condominium corporation.


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-The registration and regulation of a condominium corporationshall be vested with the HLUR%HLUR%and the term of the saidcorporation shall be co-terminuous with the duration of thesubdivision pro#ects, the provision of the Corporatio( Co-eCorporatio( Co-eto the contrary notwithstanding.

-The dissolution of the condominium corporation in anymanner and any of the causes provided by law shall begoverned by the provisions of the Corporatio( Co-eCorporatio( Co-e.


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* $he damage or destruction to the pro#ect has rendered onehalf or more of the units therein untenable and that morethan + percent of the member of the corporation entitled tovote, if a stock corporation, are opposed to the repair orreconstruction of the pro#ect; or

* $hat the pro#ect has been in e"istence in e"cess of -years, that it is obsolete and uneconomical and that morethan - percent of the members of the corporation if non*stock or stockholders representing more than - percent of

the capital stock entitled to vote, if a stock corporation, areopposed to the repair or restoration or remodeling ormoderni&ing of the pro#ect; or


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* $hat pro#ect or material part thereof has beencondemned or e"propriated and that the pro#ect is nolonger viable or that the members holding in aggregatemore than . percent interest in the corporation if non*stock, or the stockholders representing more than .percent of the capital stock entitled to vote, if a stockcorporation, are opposed to the continuation of the

condominium regime after e"propriation or condemnationof a material portion thereof; or

* $hat the conditions for such a dissolution set forth in theDeclaration of Restrictions of the pro#ect in which thecorporation, are opposed to the continuation of thecondominium regime after e"propriation or condemnationof a material portion thereof; or


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=. The condominium corporation may also be dissolved by thea.rmative vote of all the stoc-holders or mem*ersthereof at a eneral or special meetin dul! calledfor such purpose& %rovided that all the re/uirements ofthe 4orporation aw are complied with.

?. nless otherwise provided for in the Heclaration of(estrictions, upon voluntary dissolution of a condominiumcorporation in accordance with the provisions of 'ection


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?. That a stockholder or member shall not *e entitled todemand pa!ment of his shares or interest in those caseswhere such right is granted under the 4orporation awunless the consent to sell his separate interest in the

pro5ect to the corporation or to any purchaser of thecorporationNs choice who shall also buy from the corporationthe dissenting member or stockholderNs interest. 0n case ofdisagreement as to price, the procedure set forth in theappropriate provisions of the 4orporation aw for valuation ofshares shall be allowed.

C. The corporation shall have two years within which to pay forthe shares or furnish a purchaser of its choice from the timeof award. +ll expenses incurred in the li/uidation of interest ofthe dissenting member or stockholder shall be borne by him.


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- pon registration of an instrument, theRe*iter o Dee-Re*iter o Dee-shall enter and annotate the conveyance on the 4erticateof Title covering the land included within the pro#ect and thetransferee shall be entitled to the issuance of the ownersOcopy of such 4ondominium 4erticate of Title.

- + copy of the description of land, a brief description ofcondominium conveyed, name and personal circumstancesof the condominium owner would be suLcient for purposesof the Ocondominium ownersO copy of the 4erticate of Title.

- 8here the enabling or 9aster Heed provides that the landincluded within a condominium pro#ect are to be owned in

common by the condominium owners therein, the Re*iterRe*itero Dee-o Dee- may at the re/uest of all the condominium ownersand upon surrender of all their condominium ownerNs copies,cancel the 4erticate of Title of the property and issue a newone in the name of said condominium owners as pro-indivisoco-owners thereof.


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- 8henever real property has been divided intocondominiums, each unit shall be separately assessed,for purposes of real property taxation and other taxpurposes to the owners thereof and tax on each suchcondominium unit.

- The assessment upon any condominium shall be anobligation of the owner thereof at the time theassessment is made.

- The amount of assessment plus any other charges,interest, costs !including attorneyNs fee" and penalties,as such may be provided for in the Heclaration of(estrictions, shall become a lien upon the condominiumto be registered with the (egister of Heed.


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DISA%LED PERSONS ACCESSI%ILITY FEATURES

-The building and design standards for condominium pro#ectsto be promulgated by 1(F shall provide for, amongothers, accessibility features for disabled persons pursuantto Fatas %ambansa Filang ?CC of >C.

APPROVAL OF THIS ACT

-This act shall take e)ect upon its approval.

-Hate +pproved& 5une


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6T1E( (E+ E'T+TE 07GE'T9E7T'6T1E( (E+ E'T+TE 07GE'T9E7T'


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". Real Etate I()et+e(tS7(-i3ate

?. Real Etate Mort*a*eI()et+e(t

Co(-5it =REMIC>


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Real Etate I()et+e(t Tr5t=REIT>


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@ REPU%LIC ACT No. $B2

AN ACT PROVIDING THE LEGAL FRAMEWOR0 FOR REAL ESTATEINVESTMENT TRUST AND FOR OTHER PURPOSES

/e it enacted by the enate and 0ouse of Representatives of the hilippines in1ongress assembled2

ARTICLE I- GENERAL PROVISIONS

SECTION


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Real Estate


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+ (eal Estate 0nvestment 'yndicate is a business venture in whichpeople pool their resources to own or develop a particular piece ofproperty.

!'yndicate an association of individuals united to negotiatebusiness 8ebster"

+ structure that permits people with only modest capital to investin large-scale operations.

Typical syndicate pro#ects include #oint-venture high-rise apartmentbuilding and shopping centers. !ex. F4H+ 5Gs"

'yndicate members reali:e some prot from rents collected in the

investment.The main return usually comes when the syndicate sells theproperty.


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Le*al For+ o 7(-i3ateparti3ipatio( o +e+9er4

Tenants in common or #oint tenants in holding properties2Garious kinds of #oint ventures, partnership, corporate and trust

ownership options2%rivate syndication generally involves a small group of closely

associated or experienced investors2%ublic syndication involves a much larger group of investorswho may not be knowledgeable about real estate as an

investment.'E4 registration is always necessary for #uridical personality.


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For+ o S7(-i3ate' General Partnership is a form of syndication where all

members of the group share e/ually in the managerialdecisions, prots and losses involved with the investment. +certain member !or members" is designated as a 0rusteeforthe group to hold title to the property and maintains it in the

syndicates name. Limited Partnership one party !or parties" usually a

developer or real estate broker, organi:es, operates andholds responsibility for the entire syndicate. This person iscalled a eneral partner.The other members called thelimited partnersare merely investors, they have no voicein the organi:ation and direction of the operation.


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+ (eal Estate 9ortgage 0nvestment 4onduit has complex/ualication, transfer and li/uidation rules.

(E904 must satisfy the asset test.The asset test re/uiresthat after a start-up period, almost all assets must be/ualied mortgages and permitted investments2

0nvestors interests may consist of only one or more classes ofreular interestand a single class of residual interests.

1olders of reular interestsreceive interest or similarpayments based on either a xed rate or a variable rate.

1olders of residual interestsreceive distributions !if any" ona pro-rata basis.


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alawa - condo & other re concepts

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