Condominium Building after 50 Years What Happens ?
Many people is also asking this. when one has purchased a condominium, what will happen to it when 50 years once it's served its purpose and also the area where it stands becomes, well, not such a lot of a true estate hotspot because it is now? after all, buildings and structures are exposed to the weather and they are especially vulnerable - especially once not maintained well to injury and wear and tear.
The condominium's location, a primary predictor of its worth, is additionally a very important factor to its lifespan. What could also be a real estate hotspot now may be a locality of urban decay in 50 years' time. (Though there are exceptions to the current, including Melbourne's Docklands and London's Canary Wharf.) And this is often especially true within the Philippines wherever a neighborhood may chop-chop suffer urban decay downtown Manila's central downtown of Escolta - a active area up till the 1960s - is now a long-forgotten street of bedraggled buildings. Even the Makati central business district, simply somewhat over 40 years previous, is already showing signs of aging.
It's not stunning then that many would-be Filipino homebuyers are hesitant to get condominiums. Among their usual considerations embrace the extent of one's possession into a specific condominium project, who owns the land wherever the building sits, and who decides if and once the building has got to be demolished.
Here we'll address these considerations, which can eventually lead us to the problem of a condominium's lifetime.
1. Condominiums are basically corporations
Although the Condominium Act of 1966 doesn't specifically stipulate this, it's become necessary nowadays as several developers are targeting foreign consumers. Foreigners as we tend to currently are not allowed to have land within the Philippines, however they will put a corporation that owns one, see you later as foreign possession in an exceedingly condominium project doesn't exceed 40 %. Hence, the land on that the condominium sits is in hand by the condominium corporation whose members are the individual unit homeowners (or shareholders). And this brings us to next purpose.
2. what's the Extent of possession in a condominium Project?
Since householders possess solely the precise dwelling (or dwellings) they purchased in an exceedingly condominium project, they are doing not hold the title for the land wherever the building stands, neither do they hold exclusive possession to the condominium's common areas. Instead, individual unit homeowners are shareholders of the condominium corporation.
One unit is equal to one share (that is proportionate to the scale and value of your unit) within the corporation, that is then adequate to a proportionate vote. Say you get one unit into a 100-unit condominium project and every one units are of equal size and worth, there are 99 alternative shareholders into the condominium corporation all of whom a lot of or less have constant stake and ballot power as you are doing.
3. Do Shareholders have to Decide in Unison?
Like a traditional, profit-oriented corporation, there are bound problems among a condominium which will solely be determined through votes by the shareholders. These problems could embrace the mundane, like having the pool retiled or the common areas repainted, to the (literally) groundbreaking, like if and once the building has got to be destroyed. that once more brings us to final crucial question.
4. what's the lifetime of a condominium Building?
Although the law doesn't expressly say that a condominium has a lifetime of solely 50 years, it positively implies thus. consider Section 8c:
" That project has been in existence in excess of 50 years; that it is obsolete and uneconomical, and that condominium owners holding in aggregate more than 50 percent interest in the common areas are opposed to repair or restoration or remodeling or modernizing of the project. "
And if the time comes, shareholders to the condominium corporation will vote to own the building demolished, and that they have 2 choices. Either they sell the land, build some money from the saved scrap from the demolished building, deduct the price of demolition, and divide the issue among the owners; or strike a deal with the first developer or another developer to create a replacement condominium on their land.
5. thus Do all these Mean that you just Shouldn't obtain a Condominium?
Absolutely not. once a person buys a property, he additionally considers the life-style he leads and the problems the purchase solves. possession in the case of a condominium could also be limited compared to a landed property, but it undoubtedly makes up for in terms of convenience, like being near places of work and business areas, an in-city modus vivendi, and therefore the convenience of not having to try to to long commutes a day. As a shareholder, you (and your heirs) additionally get to profit from the sale of the land ought to the condominium corporation decides to try to to so.