Buying a Philippine Condominium: Legal Checks Before Signing the Deed
A condominium purchase involves more than agreeing on the unit price. The buyer acquires a separate interest in the unit together with rights connected to the common areas, as defined by the Condominium Act and the project’s master deed. The legal review should therefore address the unit, the building, the landholding arrangement, and the seller’s authority to convey.
Identify exactly what is being sold
The Condominium Act defines a condominium as a separate interest in a unit and an undivided interest in common areas, directly or indirectly. The master deed and plans identify the project, unit, common areas, and restrictions. A buyer should compare these documents with the title, reservation or contract to sell, deed, parking allocation, and physical unit.
Check title and obligations
Before payment, counsel should examine the condominium certificate of title, registered liens or notices, the seller’s identity and authority, tax declarations, association dues, and any unpaid charges. For a resale, the parties should confirm whether the seller’s bank loan, mortgage, or other encumbrance must be discharged at closing.
Foreign buyers require a separate ownership review
Section 5 of the Condominium Act links a unit transfer to the corresponding interest in common areas or condominium corporation. It restricts transfers where ownership of the common areas or the resulting foreign interest would exceed applicable nationality limits. The buyer’s citizenship and the project’s current ownership structure must therefore be assessed before a foreign purchaser commits funds.
Document the closing and registration path
The agreement should allocate taxes, fees, documentary delivery, turnover, defect obligations, and the timing of payment against transfer. BIR and Registry of Deeds requirements must be planned so the buyer can obtain a properly registered title. For due diligence on a property or real estate transaction, contact Cedeño Law Office.
This article provides general information, not an opinion on a particular unit or buyer. Review the current title, project documents, and applicable law before signing.