Condo Law

Condo Law

Condo law is one significant aspect that should be looked carefully when one is considering of investing in a condo.

Condo law in the Philippines states that foreign nationals are allowed to purchase condominium units. They are allowed to own Condominium Certificates of Title (CCT). This is duly protected by Philippine Law under Republic Act 4726 otherwise known as “Condominium Act of the Philippines.”

It is also stated in condo law RA 4726, that a condominium unit is sold vis-à-vis the corresponding rights, shares and other interest in the condominium management body or the condominium corporation. It is also stated that nobody can purchase shares in a condominium corporation without actually purchasing a condominium unit.

However, there is a prescribed limitation on this law. Foreigners are only allowed ownership to condominium units up to not more than 40% of the total capital stock of the condominium project. This is specifically stated in Philippine condo law.

You as a foreigner will also need to secure Special Visas to complete ownership and control of a Philippine condo unit. These include a Retirement Visa which may be applied through the Philippine Leisure and Retirement Authority (PLRA) where proposed investments may qualify the applicant for a Philippine Retirement Visa.

There is also a Special Resident Retiree’s Visa (SRRV) which is servicing applicants with on-going or existing investments in the Philippines. The policy has been in place since October 28, 2003. There is a bank deposit requirement in the form of US dollar time deposit to support the SRRV. However, ongoing or pre-existing investments which can be in the form of previously purchased condominium unit, corporation shares of stock, proprietary membership shares and leasehold agreements can be accepted instead of the required US dollar time deposit.

This may look complicated, but I really do suggest that in order to protect your right and privileges as a foreign national buying a condominium unit in the Philippines, you should look into further detail in Philippine condo law.