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Atty. Renato L. Liboro

SEC Opinion • Securities and Exchange Commission • Opinions • Jan 10, 1994

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January 10, 1994 Atty. Renato L. Liboro Avalon Condominium, 10/F Ortigas Ave., San Juan Metro Manila S i r : This refers to your letter of December 6, 1993, requesting opinion on the following queries: (1) May an alleged purchaser of a unit in the condominium, who merely possesses a document of sale of the unit owner but has not submitted the same for approval by the corporation's Board of Directors and much less presented the same for registration to/with the Register of Deeds for the cancellation of the existing Condominium Certificate of Title and the issuance of a corresponding new Condominium Certificate of Title in the alleged purchaser's name, be considered legally as a unit-owner and member of the corporation? (2) Where a unit has been registered and the corresponding Condominium Certificate of Title issued solely in the name of the husband and his civil status defined as married to his wife, and not jointly in their names as spouses, may the wife properly claim the unit as automatically being a conjugal property and on the sole basis of such claim be considered legally as a unit-owner and member of the corporation? cdlex The Supreme Court, in the case entitled Sunset View Condominium vs. Campos, Jr., G.R. Nos. 52361 and 52524, April 27, 1981, ruled that ownership in a condominium corporation is conferred only full payment of the purchase price of the unit, and consequently are members of the condominium corporation, a portion of which reads 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." Furthermore, P.D. No. 957 (Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties For Violations Thereof), provides: "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) Thus, membership, in a condominium corporation is evidenced by a Title issued upon full payment of the unit. Accordingly, only those persons under whose names the Condominium Certificate of Titles (CCTs) are issued are considered as the members of the condominium corporation. A person who has purchased a unit in a condominium and who desires to be recognized as a unit-owner and a member of a condominium corporation must secure a standing by having the transfer registered in the Register of Deeds. An unregistered transferee cannot enjoy the status of a unit-owner and member of a condominium corporation. Relative to your second query, under Articles 74 and 75 of the Family Code, spouses are given the freedom to choose which property regime may govern them during the marriage. The Law provides: "ARTICLE 74. The property relations between husband and wife shall be governed in the following order: 1. By marriage settlements executed before the marriage; 2. By the provisions of this Code; and 3. By the local customs." "ARTICLE 75. The future spouse may, in the marriage settlements, agree upon the regime of absolute community, conjugal partnership of gains, complete separation of property, or any other regime. In the absence of marriage settlements, or when the regime agreed upon is void, the system of absolute community of property as established in this Code shall govern ." (Emphasis supplied) Thus, unless a different system of property relations is agreed upon by the spouses, the property relations between the husband and the wife shall be governed by the system of absolute community of property. Assuming, therefore, that the husband and wife failed to agree on what property regime to adopt, the condominium unit may be deemed as community property and shall be governed by the rules on "co-ownership" pursuant to Article 90 of the Family Code which provides: "SECTION 90 * . The provisions on co-ownership shall apply to the absolute community of property between the spouses in all matters not provided for in this Chapter." (Emphasis supplied) Accordingly, the spouses, who are co-owners of a condominium unit, shall be recorded as one member. However, if the condominium unit is, among the excluded properties under Section * 92 of the Family Code or where the spouses have chosen a different marriage settlement other than the system of absolute community property, the law on co-ownership shall not apply. cdlex When doubtful, and in order to determine true ownership of the condominium unit, the corporation may inquire into the property regime governing the marriage. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman * Copied verbatim from documents obtained directly from the Securities and Exchange Commission .

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