Condominium Law and Regulations Quiz

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Questions and Answers

What happens to the common areas of a condominium corporation upon its involuntary dissolution?

They are liquidated and distributed to members based on their interests. (correct)

They are sold to the highest bidder.

They remain under the corporation's control until voluntary dissolution.

They are transferred to the corporation's creditors.

Under what condition can a condominium corporation be voluntarily dissolved?

When all members vote in favor of dissolution.

After three years of damage or destruction to the project. (correct)

If the total value of assets drops below a certain threshold.

As soon as the project is damaged by natural disaster.

What is the legal status of a condominium corporation if no provision for corporate life is included in its articles of incorporation?

It must dissolve after a specified time.

It has a limited lifespan determined by law.

It shall have a perpetual existence. (correct)

It cannot exist legally.

Which statement is true regarding the interests of members after a condominium corporation's involuntary dissolution?

Members receive a proportional share of the common areas based on their interest. Signup and view all the answers

What takes precedence in the event of a condominium corporation's dissolution?

The superior rights of the corporation's creditors. Signup and view all the answers

What has caused irreparable injury to purchasers of subdivision houses and condominium units?

The non-fulfilment of contractual duties by salesmen and agents Signup and view all the answers

What necessitated the enactment of laws for the protection of homebuyers?

Incidents of swindling and deceptive practices in real estate sales Signup and view all the answers

What is the primary purpose of PD 957?

To regulate and supervise real estate trade and business Signup and view all the answers

Which organization was granted exclusive jurisdiction to regulate the real estate trade under PD 957?

The Department of Housing and Urban Development (DHSUD) Signup and view all the answers

When were the Revised Implementing Rules and Regulations for PD 957 approved?

2001 Signup and view all the answers

What must a registered owner submit to initiate the approval process for a subdivision project?

Subdivision Plan application Signup and view all the answers

Which body is responsible for issuing a License to Sell for a subdivision or condominium project?

Department of Human Settlements and Urban Development (DHSUD) Signup and view all the answers

What additional requirement does a Condominium Plan have compared to a Subdivision Plan?

Compliance with the National Building Code Signup and view all the answers

Who approves the Subdivision Plan after the local municipality has issued a Development Permit?

DHSUD Signup and view all the answers

What is issued by the DHSUD that certifies the viability of the subdivision or condominium project?

Certificate of Registration Signup and view all the answers

Which of the following is not a requirement for a project to receive a License to Sell?

Compliance with local business regulations Signup and view all the answers

After approval of the Condominium Plan, where must it be submitted for further action?

Register of Deeds Signup and view all the answers

In the approval process for a subdivision project, which document is issued after the Subdivision Plan is approved?

Certificate of Registration Signup and view all the answers

What defines a 'condominium' according to Republic Act No. 4726?

A separate interest in a unit and an undivided interest in common areas. Signup and view all the answers

Under what condition does the Condominium Act apply?

When the enabling or master deed is registered with the registry of property. Signup and view all the answers

What is defined as the 'enabling or master deed' in the context of the Condominium Act?

The instrument required to record the division of property into condominiums. Signup and view all the answers

Which DHSUD Department Order focuses on incentivizing developers in relation to housing development?

DHSUD Department Order No. 2021-004. Signup and view all the answers

What is the time period covered by the National Human Settlements Board Resolution No. 2023-03?

January 1, 2024 to December 31, 2024. Signup and view all the answers

What type of properties does the Condominium Act govern?

Residential, commercial, and industrial buildings. Signup and view all the answers

What does DHSUD Circular No. 2024-005 aim to achieve?

Streamline and standardize housing and real estate development regulations. Signup and view all the answers

What is a common requirement for the registration of condominiums?

The enabling or master deed must be registered. Signup and view all the answers

Under what condition can a buyer claim a full refund of their payments plus interest?

If the developer fails to complete the project within the approved regulation period Signup and view all the answers

Which law grants the right to full refunds under specific conditions?

The Subdivision and Condominium Buyers' Protective Decree (PD 957) Signup and view all the answers

When was the Subdivision and Condominium Buyers' Protective Decree signed into law?

July 12, 1976 Signup and view all the answers

What agency was initially tasked with regulating the real estate trade under PD 957?

Housing and Land Use Regulatory Board (HLURB) Signup and view all the answers

Which presidential decree is aimed at protecting homebuyers from unscrupulous real estate practices?

Presidential Decree No. 957 Signup and view all the answers

What is one of the responsibilities assigned to the DHSUD following RA 11201?

To issue necessary standards and regulations for real estate Signup and view all the answers

What was a primary intention behind the establishment of PD 957?

To strengthen protections for homebuyers Signup and view all the answers

What practices were reported that led to the creation of PD 957?

Developers failing to deliver promised amenities Signup and view all the answers

What condition allows for the dissolution of a condominium corporation if the project has been damaged?

One-half or more of the units are untenantable with opposition to repair from more than 30% of the members. Signup and view all the answers

Which scenario would NOT support the dissolution of a condominium corporation?

The project has been in existence for less than 50 years. Signup and view all the answers

Under what circumstance is a condominium corporation deemed to hold a power of attorney from all its members?

Unless otherwise stated in the Deed of Restrictions. Signup and view all the answers

What percentage of member opposition is required to avoid the continuation of the condominium regime after expropriation?

More than 70% of interest in the common areas. Signup and view all the answers

What constitutes a project being considered for dissolution when a substantial part is condemned?

The project is no longer viable. Signup and view all the answers

What is required for the affirmative vote to voluntarily dissolve a condominium corporation?

A unanimous vote from all shareholders or members. Signup and view all the answers

Which of the following does NOT support the legal conditions for dissolution of a condominium corporation?

The corporation sold several units recently. Signup and view all the answers

What is a potential outcome when more than 50% of condominium owners oppose modernization due to obsolescence?

The corporation can be voluntarily dissolved. Signup and view all the answers

Study Notes

Housing Laws, Rules, and Regulations

DHSUD Department Order No. 2021-004: Aimed at incentivizing developer compliance with the "Balanced Housing Development Program." Amended Sections 4.4 and 11 of HLURB Resolution No. 965, Series of 2017.
DHSUD-NEDA Joint Memorandum Circular No. 2023-003: Adjusted the price ceiling for socialized subdivision and condominium projects in 2023.
National Human Settlements Board (NHSB) Resolution No. 2023-03: Established rent control for the period January 1, 2024 to December 31, 2024.
DHSUD Department Circular No. 2024-005: Codified housing and real estate development regulations and procedures to streamline and standardize practices. Included requirements for homeowners' associations and community development.
Republic Act No. 4726 (Condominium Act): Defines "condominium" as an interest in real property consisting of a separate interest in a unit and an undivided common interest in the land and other common areas of a building.

Condominium Act Application

The Condominium Act only applies if the enabling or master deed is registered with the Registry of Deeds and annotated on the title of the land.
The enabling or master deed is legally required to divide property into condominiums, in accordance with RA 4726.

Contents of an Enabling or Master Deed

Description of the land and the buildings located
Description of the building(s), number of stories, basements, units, and accessories
The description of the common areas and facilities
A statement of the interest acquired by each purchaser

Other Provisions

Amendment or revocation of the enabling deed can be executed by a simple majority of the registered owners, but must be approved by DHSUD and local authorities.
Any conveyance of a unit in a condominium includes the conveyance of the common areas of the complex.
Acts of conveyance or transfer in a condominium that are prohibited by law should specify the common areas in the context of the transfer.
Rights of Condominium Unit Owners: -Absolute ownership of the unit. -Co-ownership of common areas. -Exclusive and non-exclusive easements in the common areas. -Right to participate and vote in HOA meetings -Permission to repaint, etc., the interior of their unit
Obligations of Condo Unit Owners: -Compliance with use restrictions -Priority rights to buy the unit -Payment of dues -Insurance payment -Sharing of common area and land taxes
Kinds of assessments and dues condo owners pay.
Division or partition of the common areas is prohibited, unless certain conditions are met.
Corporate Purposes of a Condo Corporation: -Hold the common areas. -Manage the project. -Other purposes incidental to the above.
Rights of Condo Unit owners: -Absolute ownership of their unit. -Co-ownership of common areas. -Exclusive easements.
Obligations of Condo Owners: -Compliance with use restrictions -Priority rights to buy the unit -Payment of dues -Insurance payment etc
What is included in the computation of condo fees or payments.

Realty Installment Buyer Act (Maceda Law)

Republic Act No. 6552: Protects buyers of real estate on installment payments from onerous or oppressive conditions imposed by developers or sellers.
Applies to purchases of installment payments, including residential condominiums, but excludes properties such as industrial lots, commercial structures or sales to renters.
Defines rights of buyers with less than 2 years of payments and buyers with over 2 years of payments, in event of default.
Explains recourse for sellers if buyers fail to meet their payments.

Subdivision and Condominium Buyers' Protective Decree (PD 957)

Presidential Decree No. 957: Regulates real estate trade and business with focus on protection of homebuyers from deceptive practices by real estate sellers.
Set standards for and governs real estate trade and businesses.

Division or Partition of the Common Areas in a Condominium

Common areas usually remain undivided
A partition is possible, but only in justified circumstances (eg., damage to buildings).

Corporate Purposes of Condominium Corporations

The purpose is limited to -Holding the common areas. -Managing the project. -Incidental or convenient necessities.

Rights of a Condominium Unit Owner

Declaration of Restrictions

A "Declaration of Restrictions" outlines guidelines for the management of a condominium project.

Additional Details

Amendments to the regulations, rules, etc. concerning housing development are given.
Rules on the payment of condo dues are detailed.
Guidelines on evictions and demolition of property.
Procedures for the issuance of licenses and certificates.
The provisions related to penalties for non-compliance with the regulations and rules are clearly stated.
Various relevant laws and regulations for housing developments, including details about relevant articles.
Provisions on various types of housing developments (medium, socialized etc) and the corresponding price ceilings.

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Description

Test your knowledge on the laws and regulations governing condominium corporations. This quiz covers topics such as dissolution, member interests, and the legal framework established for homebuyer protection. Perfect for law students or real estate professionals.