THE Senate has approved on third and final reading a bill that will allow the redevelopment of condominium units in the Philippines.
Eighteen senators voted for the passage of Senate Bill 2420, or the proposed Condominium Redevelopment Act on Tuesday.
The measure seeks to amend Republic Act 4726, or the nearly 60-year-old Condominium Act, and establish updated rules for the maintenance, repair, reconstruction, redevelopment and dissolution of condominium projects.
“Currently, a unanimous vote from every unit owner is required, which we know is impossible. This bill aims to change that,” Sen. Francis Escudero said during his sponsorship of the bill on Aug. 25.
The bill also aims to promote the redevelopment of condominiums by exempting conveyance of common areas to condominium corporations from all national and local taxes.
Under the measure, condominiums under 30 years old would require approval from unit owners in good standing before its corporation is dissolved, while condominiums aged 30 to 50 years old require the approval of two-thirds of stakeholders.
For condominiums aged 50 years old and above, a condominium corporation may be dissolved with affirmative votes by a majority of the stakeholders.
The bill also allows amendments or revocation of a condominium’s enabling or master deed through a simple majority of registered owners, subject to prior notification and approval by the Department of Human Settlements and Urban Development (DHSUD) and the concerned city or municipal engineer before registration.
It also introduces safeguards for buyers when the actual floor area of a completed unit differs from the approved floor plan.
Allowable deviations range from 6 percent for units measuring up to 60 square meters to 2 percent for units exceeding 500 square meters.
Buyers may invoke remedies available under existing laws when the reduction exceeds the prescribed limit.
Developers would likewise be required to apply for a Certificate of Completion from the DHSUD, which would have 90 days upon receipt of a complete application to inspect the project.
The condominium corporation or co-owners would then accept the conveyance of common areas without prejudice to their right to require developers to address defects covered by the applicable warranty.
The proposed law would apply to existing condominium projects, those under construction and future developments.
