Maria Santos
Philippine Real Estate Legal Consultant
The Philippine Condominium Act (Republic Act 4726) is the foundational legal framework governing condominium ownership in the Philippines. For investors purchasing units in Boracay, understanding this law is not optional.
The Foreign Ownership Cap Explained
The most critical provision for foreign investors is the 40% foreign ownership limit. Under the Condominium Act (as interpreted alongside the Philippine Constitution's prohibition on foreign land ownership), no more than 40% of the total floor area of a condominium project may be owned by non-Filipino citizens or non-Filipino corporations. The remaining 60% must be owned by Filipino citizens or corporations that are at least 60% Filipino-owned. In popular Boracay developments, the foreign allocation can fill quickly during the pre-selling phase.
The Condominium Corporation
Every legally constituted condominium development in the Philippines has a condominium corporation — an SEC-registered entity formed by the unit owners collectively. The condominium corporation owns and manages the common areas and collects monthly maintenance dues from unit owners to fund these operations. Each unit owner is automatically a member of the condominium corporation and has voting rights proportional to their unit's interest in the corporation.
Title: CCT vs. TCT
Condominium units in the Philippines are evidenced by a Condominium Certificate of Title (CCT), not a TCT (Transfer Certificate of Title). The CCT is issued by the Registry of Deeds in the province where the condominium is located (for Boracay, this is Kalibo, Aklan). The CCT confirms ownership of the individual unit and the proportionate interest in the common areas. For foreign buyers, the CCT is the ultimate proof of ownership.
Buyer Protections Under Philippine Law
In addition to the Condominium Act, Boracay condo buyers are protected by: the Maceda Law (RA 6552) for installment purchase rights, the DHSUD's regulatory oversight of developer compliance, and the general consumer protection provisions of Philippine civil and commercial law. Understanding these protections before signing any developer contract allows buyers to negotiate from a position of legal awareness.
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