Mr. Rodel M. Fucio

July 19, 1989 Mr. Rodel M. Fucio Consolidated Funding Corporation Rm. 505 State Center Bldg., Ortigas Cor. EDSA.., Mandaluyong, Metro Manila Sir : This refers to your letter, dated June 21, 1989, inquiring on whether a member of non-stock, non-profit condominium corporation is entitled to receive a "stock certificate" from the corporation. cdlex The certificate of stock certifies that the person named therein is a holder or owner of a stated number of shares in the corporation. Section 63 of the Corporation Code provides, thus: "SECTION 63. Certificate of stock and transfer of shares . The capital stock of corporations shall be divided into shares for which the certificates signed by the president or vice-president, countersigned by the secretary or assistant secretary, and sealed with the seal of the corporation shall be issued in accordance with the by-laws"....(emphasis supplied). From the foregoing provision, it is clear that only stock corporations can issue stock certificates. Insofar as membership in a non-profit or non-stock corporation, it is usually evidenced by a certificate or policy of some kind issued by the corporation and showing that the person named therein as the holder, is entitled to the rights of membership. (12A Fletcher Ch 58, Sec. 5690). Under Sec. 2 of RA 4726, otherwise known as the Condominium Act, holders of fully paid condominium units are automatically considered as members of the condominium corporation and are entitled to receive a title of the unit upon full payment thereof. PD No. 957 (Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties For Violations Thereof), provides, thus: "SECTION 25. Issuance of Title . The owner or developer shall deliver the title of the lot or unit to the buyer upon full payment of the lot or unit ." ...(emphasis supplied) In Sunset View Condominium vs. Campos Jr. GR # 52361 and GR 52524, April 27, 1981, the Supreme Court ruled as follows: "The private respondents, therefore, who have not fully paid the purchase price of their units and consequently not owners of their units are not members or shareholders of the petitioner condominium corporation." (emphasis supplied). Inasmuch as ownership in condominium corporation is conferred only upon full payment of the purchase price of the unit, it necessarily follows that the purchasers of condominium units who have not yet remitted the full purchase price thereof are not owners of the units, and consequently are not members of the condominium corporation. Accordingly, membership in a condominium corporation is evidenced by a title issued upon full payment of the unit purchased. Please be advised accordingly. Very truly yours, (SGD.) RODOLFO L. SAMARISTA Associate Commissioner