17/02/2023
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One of the oldest buildings in Makati is Insular Life. It stood the test of time for the past 59 years. It still exist today because itโs well maintained and managed. That's why when making a condo investment, always check the track record of their property management.
๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐
๐๐๐ ๐๐ ๐๐๐๐๐?
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 condoโs lifespan, then you can breathe a sigh of relief now because your unit wonโt be taken away from you after 50 years.
๐๐ฃ๐ ๐ค๐ ๐ฉ๐๐ ๐ข๐ค๐จ๐ฉ ๐๐ค๐ข๐ข๐ค๐ฃ ๐ข๐ฎ๐ฉ๐๐จ ๐จ๐ช๐ง๐ง๐ค๐ช๐ฃ๐๐๐ฃ๐ ๐๐ช๐ฎ๐๐ฃ๐ ๐๐ค๐ฃ๐๐ค๐จ ๐๐จ ๐ฉ๐๐๐ฉ ๐๐ซ๐๐ง๐ฎ ๐๐ค๐ฃ๐๐ค๐ข๐๐ฃ๐๐ช๐ข ๐๐ฃ ๐ฉ๐๐ ๐๐๐๐ก๐๐ฅ๐ฅ๐๐ฃ๐๐จ ๐ค๐ฃ๐ก๐ฎ ๐๐๐จ ๐ ๐ก๐๐๐๐จ๐ฅ๐๐ฃ ๐ค๐ 50 ๐ฎ๐๐๐ง๐จ. 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 ๐พ๐ค๐ฃ๐๐ค๐ข๐๐ฃ๐๐ช๐ข ๐ผ๐๐ฉ ๐ค๐ ๐ฉ๐๐ ๐๐๐๐ก๐๐ฅ๐ฅ๐๐ฃ๐๐จ, reveals that several factors dictate what the fate of your unit will be after 50 years.
Letโs end all speculations, once and for all. Here are three facts about a condominiumโs lifespan derived from RA 4726:
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๐๐๐ #๐: ๐๐ก๐๐ง ๐ฒ๐จ๐ฎ ๐๐ฎ๐ฒ ๐ ๐๐จ๐ง๐๐จ๐ฆ๐ข๐ง๐ข๐ฎ๐ฆ ๐ฎ๐ง๐ข๐ญ, ๐ฒ๐จ๐ฎ ๐๐๐๐จ๐ฆ๐ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐ ๐๐จ๐ซ๐ฉ๐จ๐ซ๐๐ญ๐ข๐จ๐ง.
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. Itโs 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 itโs a collective decision of more than 50% of homeowners at the very least, not just one individual deciding on everything.
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๐๐๐ #๐: ๐ ๐๐จ๐ซ๐ฉ๐จ๐ซ๐๐ญ๐ข๐จ๐งโ๐ฌ ๐ฅ๐ข๐๐๐ฌ๐ฉ๐๐ง ๐ข๐ฌ ๐๐ ๐ฒ๐๐๐ซ๐ฌ, ๐๐ฎ๐ญ ๐ข๐ญ ๐๐๐ง ๐๐ ๐ซ๐๐ง๐๐ฐ๐๐.
Your condominium doesnโt 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.
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๐๐๐ #๐: ๐๐ก๐ซ๐๐ ๐๐๐๐ญ๐จ๐ซ๐ฌ ๐ง๐๐๐ ๐ญ๐จ ๐๐ ๐๐ฎ๐ฅ๐๐ข๐ฅ๐ฅ๐๐ ๐ญ๐จ ๐๐๐๐ฅ๐๐ซ๐ ๐ ๐๐จ๐ง๐๐จ๐ฆ๐ข๐ง๐ข๐ฎ๐ฆ ๐ฎ๐ง๐ข๐ง๐ก๐๐๐ข๐ญ๐๐๐ฅ๐.
Hereโs what the law says exactly about your condominiumโs future after 50 years:
โThat 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.โ
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.
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It should exist for at least 50 years.
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It should already be obsolete and uneconomical.
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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 doesnโt necessarily have to be obsolete and uneconomical. Itโs on a case-by-case basis. A majority of todayโs condominium developers construct condos using high quality and durable materials so that they wonโt give in to ordinary wear and tear. ๐ผ๐๐ซ๐๐ฃ๐๐๐ ๐ฉ๐๐๐๐ฃ๐ค๐ก๐ค๐๐๐๐จ ๐๐ง๐ ๐๐ฃ๐๐ง๐๐๐จ๐๐ฃ๐๐ก๐ฎ ๐ฅ๐ช๐ฉ ๐ฉ๐ค ๐ช๐จ๐, ๐จ๐ค ๐ข๐ค๐๐๐ง๐ฃ ๐๐ค๐ฃ๐๐ค๐จ ๐ฌ๐๐ก๐ก ๐ก๐๐ ๐๐ก๐ฎ ๐จ๐ฉ๐๐ก๐ก ๐๐ ๐๐ฃ ๐๐ค๐ค๐ ๐จ๐๐๐ฅ๐ ๐๐ซ๐๐ฃ ๐๐๐ฉ๐๐ง 50 ๐ฎ๐๐๐ง๐จ.
And as previously mentioned, youโre a shareholder of your condominium corporation. Your voteโand other shareholdersโ votes as wellโmatter. If only less than 50% of homeowners vote to demolish the building, then demolition wonโt 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, youโre ๐ฆ๐ฏ๐ต๐ช๐ต๐ญ๐ฆ๐ฅ ๐ต๐ฐ ๐จ๐ฆ๐ต ๐ข ๐ด๐ฉ๐ข๐ณ๐ฆ ๐ฐ๐ง ๐ต๐ฉ๐ฆ ๐ด๐ข๐ญ๐ฆ. Imagine the price of that land after so many years!
So, if this 50-year fallacy is the only thing thatโs holding you back from investing in a condominium unit, then reading this should ease your fears and apprehensions.
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