Buyers of a Condominium/ Subdivision: Basic Guidelines about the Condominiums and Homeowners Monetary Obligations
You’re a Citizen of the Republic of the Philippines and you decided to buy a unit in a condominium. After submitting all the requirement and documents and after paying all required monetary requirements, the property was then turned over to you.
You are now considered as official homeowner.
After few months, you start receiving invoices for the monthly homeowners association dues. You begun questioning the management of the condominium what is it for? Why do you need to pay it? What will happen if you don’t want to pay it?
What is all about the Condominium/ Homeoweners’ Association Dues?
Homeoweners’ Association dues is defined as the fee collected by the association of the homeowners to fund the maintenance and improvements of the property that are under their scope or jurisdiction. This fee is being collected by the association in a monthly basis or annual basis.
The Homeoweners association is a nonstock, nonprofit association legally registered with the Housing and Land Use Regulatory Board (HLURB). In the past, the association is registered unthe Home Insurance Guarantee Corporation(now changed name to Home Guarantee Corporation) or the Securities and Exchange Commission (SEC).
This Homeowners Association is manange and organized by the:
- Owners/ Buyers of a lot in a subdivision/village or other residential real property located within the jurisdiction of the association.
- Awardees, usufructuaries, legal occupants and/or lessees of a housing unit and/or lot in a government socialized or economic housing or relocation project and other urban estates;
- Underprivileged and homeless citizens as defined under existing laws in the process of being accredited as usufructuaries or awardees of ownership rights under the Community Mortgage Program (CMP), Land Tenure Assistance Program (LTAP) and other similar programs in relation to a socialized housing project actually being implemented by the national government or the LGU.
Are these FEES collected by the Association Compulsory/Mandatory or Voluntary?
SECTION 30. Organization of Homeowners Association. - The owner or developer of a subdivision project or condominium project shall initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development.
Therefore, the developer of a condominium or subdivision project is mandated by law to establish a homeowners’ association where the members of the association are coming from the buyers and legal residents of the projects. This make sense for the purpose of promoting and protecting the mutual interest and assist in their community development.”
Pursuant to Sec. 30 of PD 957, developers often include a provision in their contracts of sale that stipulates that the buyer in a condominium or subdivision project automatically becomes a member of the homeowners’ association of the particular project.
Under Section 9, membership in the association is optional, unless otherwise provided in the Contract to Sell, Deed of Sale, or other instruments of conveyance, or annotated in the title of the property.
Homeowners Association Membership is VOLUNTARY as stated under the Republic Act 9904 with exceptions.
By virtue of Section 22(a) of RA 9904, it is unlawful for any person to compel a homeowner to join the association, without prejudice to the exceptions indicated in the said provision.
Therefore, homeowners can opt not to become a member of the association. However, Republic Act 9904, or the Magna Carta for Homeowners and Homeowners’ Association, stipulates that a homeowner will get “the right to enjoy the basic community services and facilities, provided that he/she pays the necessary fees and other pertinent charges.”
Notice the use of the word “provided.” This connotes that as long as you pay association dues, you will be allowed to use the condominium or subdivision’s shared amenities and facilities. But if you don’t, then you can be denied of certain benefits.
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- Tags: Association Dues, CMP, Community Mortgage Program, HLURB, Home Guarantee Corporation, Howowner Association, LTAP, Magna Carta for Homeowners, PD 957, Presidential Decree 957, RA 9904, Republic Act 9904, Resolution No. 877, SEC, Voluntary Homeowners Membership