50-Year Limit on Condominiums in the Philippines: Myth or Fact?

Is It True That Condos Have a Limit of 50 Years in the Philippines?

Have you heard about the 50-year limit on condominium units in the Philippines? Do you think this is true, and why would condo corporations impose this if it’s true? If you own a condo unit in Manila or Baguio, it’s important to understand the terms and conditions under your contract to clear out vague statements like this. So, let’s find the answer to whether the 50 years expiration is a fact or a myth for condo owners.

Does Condo Ownership Expires After 50 Years?

In the Philippines, a condominium doesn’t automatically disappear or expire after five decades of use. The condo title, share, and ownership remain under the owner’s name and rights. The 50-year limit, therefore, is a myth that is often misconstrued as a corporate rule based on building age. However, it may trigger a demolition memo based on strict legal terms.
Under Republic Act No. 4726 or the Philippine Condominium Act, a condominium building is considered obsolete, therefore becomes subject to selling or demolition, after 50 years under these strict rules:

• The condominium is more than 50 years old.
      
  
• More than half of the total condo owners voted against modernizing, remodeling, or repairing the condominium building.
      
  
• The entire structure is unsafe, uneconomical, and outdated that fixing is no longer a solution.
  

If the building is demolished or sold, unit owners still legally hold a proportional share of the property and will get their rightful share of the total selling price. However, if unit owners agreed to keep the condo building, they must have a higher percentage of vote to renovate, upgrade, or repair the building.

Condo Corporations and Shareholders

After buying your condo unit, you are considered a shareholder in the condo corporation that owns the land. So you have a say in the renewal of the corporate lifespan as long as the building is still safe and repairable. Apparently, the confusion is caused by the old rules that give condo corporations 50 years of life. The corporation, however, can renew its lifespan and get another 50 years through majority of owners’ vote.
According to the Revised Corporation Code, condominium corporations now get perpetual lifespan by default. This means that the 50 years expiration of condo ownership is not true and therefore should not discourage buyers and investors to acquire a condo unit in the Philippines.

Final Thoughts

There’s no such thing as 50 years expiration on condominiums unless otherwise backed by strict legal conditions, including safety concerns. Even if the building is demolished or sold, the corporation still owe you your share of the land. If you’re currently looking for a nice condo unit in Baguio City, visit REALS.PH for our exclusive listings in major locations across the Philippines. You may also send us your inquiries so our trusted real estate agents can give you immediate response through our social media channel and through the website.