2-2 Condominium Concepts

1%

*Income payments* to a REIT, for example, rentals, shall be subject to a lower *creditable withholding tax* of

Units will be sold to foreigners

A *condominium corporation* must be organized for the condominium project if

30% interest (in the common areas)

A *partition by sale* may be made provided that damage or destruction to the project has rendered *one-half or more of the units therein untenantable* and that condominium owners with common interest are opposed to repair is more than

90%

A REIT must distribute annually to its shareholders its distributable income to the extent of at least

40%

A REIT which owns land can only have foreign ownership up to

50% (up to 5 years, then +5% for every additional year; max. 90%) - (Maceda Law)

A buyer failed to pay his installment payments after paying 4 years for a 1 bedroom residential condominium unit on a 10 year installment payment. What will be his percentage refund under the Maceda law

To paint the exterior walls of the unit

A condo unit owner does not have the following right - (a. To lease out his unit b. To paint the exterior walls of the unit c. Exclusive easement of the air in the unit d. Use of the common areas)

Hold title to the land of the condominium project

A condominium corporation is important as it will be the management body of the condominium project and more importantly, will also - (a. Collect the dues from the unit owners b. Hold title to the land of the condominium project c. Pay for the realty taxes of the unit owner d. Pay for the insurance of the separate units)

Townhouse project

A developer wants to build townhouses but would like to build a condominium project instead. Such development would be called

General common area

A part of the condominium project which are not subject to the exclusive use of any one or group of owners - (a. Common areas b. General common area c. Limited common areas d. Divided common area)

P 3,199,200 (for "other residential dwellings") - (P 2.5 M - old threshold)

A person who buys two 1-bedroom condominium units adjacent to each other within a 12-month period this year shall be subject to VAT if the total exceeds

Simple majority of the registered owners

A residential condominium corporation shall not during its existence, sell or otherwise dispose of the common areas owned or held by it in the condominium project unless authorized by the affirmative vote of a

columbarium

A structure, either freestanding or part of another building, containing niches for the inurnment of cremated human remains

To pay for share in insurance of the condo project

A unit owner does not have the following right as a condominium unit owner - (a. To lease the unit b. To pay for share in insurance of the condo project c. To sell the condominium unit d. To mortgage his own unit)

Equal share

Absent any provision in the Master Deed, the share of unit owners in the common areas shall be

Certificate of management

Allison sold his 1-bedroom condo unit to a buyer. To register the sale, he must get from the condominium corporation this document

Factory plot

An allocated lot in an industrial subdivision is also referred to as

Perpetual care fund

An amount collected by the developer of a columbarium project for the maintenance and upkeep of the project separate from the contract

Comply with use restrictions

An obligation to the condominium corporation of a unit owner - (a. Comply with use restrictions b. Sell the unit c. Repair the unit d. Pay the realty taxes on his unit)

Ossuary

As defined in the rules of HLURB, it means an interment space for the bones of the deceased

On the taxes on his unit

As owner of a condominium unit, the owner would be liable to pay real estate taxes

Condominium Certificate of Title

As proof of ownership of a condominium unit, the owner would have the best proof as

10%

Cash or property dividends paid by a REIT shall be subject to a final tax of

Give due notice to the developer

Condario wanted to stop payment of his monthly amortizations for a studio condo unit since the project has not been completed but it is required that he must

1000 sq. m. (750 sq. m. - old) - (HLURB BR No. 853, s. 2010)

For a *farmlot subdivision*, the minimum lot area for a farmlot is

1000 sq. m. (750 sq. m. - old)

For a farmlot subdivision, the rules provide that a farmlot should have a minimum size of

A notice of assessment is registered with the Register of Deeds

If a unit owner has unpaid assessments, the notice of assessment will be considered a lien on the condominium unit if

Master Deed

If one wanted to find out what his interest or share is in the common areas, it may be found in the following document

Master Deed

In buying a condominium unit, it is highly recommended that the buyer get this most important document to have full knowledge of the project

Condominium Act

In case of a buyer on financing of a residential condominium unit who now owns the unit, the primary law that the buyer must refer to as owner should be

City engineer

In case of any amendment, the approved amendment of the condominium in Baguio City shall be submitted for approval to the HLURB and the

Provision for Management body of the project

In general, it is not considered part of the Master Deed of a condominium project - (a. Land on where the project is located b. Number of buildings and stories per building c. Provision for Management body of the project d. Extent of share in the common areas)

P 300,000,000 (cash &/or property)

In order for the investor group of Mr. Ang to form a REIT, it must have a minimum paid-up capital of

REIT - Real Estate Investment Trust

It is a stock corporation established under the Corporation Code of the Philippines and those promulgated by the Commission principally for the purpose of owning income-generating real estate assets

Temporary license to sell

It is issued by the HLURB in order that the developer of a condominium project may start selling units, pending other requirements and to assess the market viability of the project

Condominium Unit

It is referred to as the space encompassed by the interior surface of the floor, ceiling, walls, and exterior doors and windows, which is susceptible of independent use and ownership

Condominium unit

It is regarded as an interest in real property consisting of a separate interest in a unit in a building and an undivided interest in common in the land on which it is located and in other common areas

Inurnment

It means the placing of cremated remains in an urn in a columbarium

Fund Manager

It refers to the person responsible for the allocation of the deposited property to the allowable investment outlets and selection of income-generating real estate for the REIT

Common Areas (Condominium Structure?)

It refers to the weight bearing walls, columns and beams, stairways, halls, elevators, etc. including the electrical, water and plumbing systems and amenities in a condominium project

amortization interests but excluding delinquency interests, with interest thereon at the legal rate

Louie bought a 2 BR condo unit but after 4 years, the project has not been completed beyond completion date. He may ask for a refund of the total amount paid including

Subscription to shares of stock

Mario wanted to invest in the REIT and he may make an investment in the REIT by way of

25% (restriction on buildable area) - (HLURB BR No. 853, s. 2010)

Mr. Calix bought a farmlot in Batangas where he intends to retire. He may only build on the lot up to a maximum of what percentage of the total lot

Provision for right of first refusal

Mr. Rodson owned a unit in the Triple Tower. He can sell the unit to anybody unless there is

The Condominium Act

Once a buyer is now the owner of a condominium unit, the law more appropriate covering his ownership and rights as a unit owner is - (a. The Condominium Act b. Subdivision and Condominium Buyers' Protective Decree c. The Realty Installment Buyer's Protective Act d. Property Registration Decree)

60% of the units

Ownership of Filipinos in a residential condominium project, if based on number of units, is limited to a minimum of

40% of the units

Ownership of foreigners in a townhouse project located in the city is limited to

500 sq. m.

Per HLURB Administrative Order No. 2, Series of 1992, the minimum plot size for an industrial estate is:

P 10,000,000 (REIT Act of 2009) (P 100,000,000 - IRR REIT)

The *fund manager* of the REIT must have a minimum paid-up capital stock or assigned capital of

Per unit floor area

The ABC Condo Residences, a mixed use condo project, wanted to *amend the master deed*. In such case the majority vote shall be based on

6 months

The HLURB may issue a *temporary license to sell* to a condominium developer which will be valid for

Provision for maintenance and insurance

The Master Deed of a mixed use condominium would not include the following provision - (a. Land on which it is built b. Extent of common area interest c. Provision for maintenance and insurance d. Number of buildings to be built)

Cremains

The ashes resulting from the cremation of a dead body

At least one foreigner owns a unit

The condominium corporation formation is required in case

Coterminus with the life of the project

The condominium corporation has a term of existence under the law for a period up to

Simple majority of the condominium members (50% + 1)

The condominium corporation may also be dissolved in a general or special meeting duly called for the purpose by affirmative vote of

50% of the members

The condominium corporation may be dissolved if the project has been in *existence in excess of 50 years*, that it is obsolete and that members of the corporation are opposed to the repair or restoration or remodeling or modernizing of the project to the extent of more than

HLURB

The condominium corporation may integrate the project with another upon the affirmative vote of a simple majority of the registered owners, subject only to the final approval of

Condominium house rules and regulations

The following is not part of the Master Deed of a condominium project - (a. Amenities and facilities per condo building b. Number of buildings and stories per building c. Condominium house rules and regulations d. Extent of share in the common areas)

Based on the number of bedrooms per unit

The following is not used as a measure of the interest in the common area by a condo unit owner - (a. Equal share b. Based on Floor area of their unit c. Based on value of their unit d. Based on the number of bedrooms per unit)

Subdivision and Condominium Buyers' Protective Decree

The governing law for the protection of buyers who are buying residential condominium units on installment basis is referred to as

25%

The maximum buildable area on a farmlot as per HLURB rules and regulations shall not exceed

1 meter by 2.44 meters (1 m x 2.44 m)

The minimum burial plot size for *ground interment* as per HLURB rules is

4 meters by 5 meters (4 m x 5 m) - (HLURB R&R for Memorial Parks)

The minimum plot size for a *mausoleum* under the rules for memorial parks is

RA 6552 - Realty Installment Buyer Act / Maceda Law

The rights of a buyer of a condominium unit, when he fails to pay the monthly installments under the contract to sell shall be governed by

Limited common area

These are areas allocated to the exclusive use of a condominium unit owner like a parking space

Articles of incorporation of the REIT

Under the REIT law, a "Constitutive Document" means

1,000

Under the REIT law, a REIT must be a public company and to be considered as such, a REIT must have at least how many public shareholders

Property Manager

Under the REIT, it refers to a professional administrator of real properties who is engaged by the RElT to provide property management services, lease management services, marketing services, project management services, including rent collection

Right of first refusal

When it is provided that the unit to be sold must first be offered to the existing unit owners, it is referred to as