IN the past, people strive to own a home to free themselves from the hassle and burden of paying monthly rent. However, in the advent of subdivision and condominium developments, gone were the days when purchasing your own residential unit will mean an end of monthly payments. Nowadays, every square inch of your precious home is assessed in order to contribute to a common fund for the common benefit. I guess this is the modern concept of bayanihan among neighbors. The only difference is there is one “property manager” who is tasked to collect the dues to defray all the community expenses.
Subdivision and condominium developers cannot be faulted for collecting association dues from the homeowners. Just like taxation, which is the lifeblood of the government, association dues are the lifeblood of a homeowner’s association to ensure the maintenance of the building, the roads and the community amenities.
Don’t fret though, because there are certain laws that aim to protect homebuyers from unscrupulous practices of developers. One of these is Presidential Decree (PD) 957, Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for Violations Thereof. Section 27 of the said law specifically provides that “[n]o owner or developer shall levy upon any lot or buyer a fee for an alleged community benefit.
“Fees to finance services for common comfort, security and sanitation may be collected only by a properly organized homeowners association and only with the consent of a majority of the homeowners actually residing in the subdivision or condominium project.”
Thus, dues for the common benefit may only be collected only by a properly organized homeowners association and only with the consent of a majority of the homeowners actually residing in the subdivision or condominium project. What will happen, however, if the homeowners fail to organize a homeowner’s association?
Instructively, Section 30 of PD 957 puts the burden on the owner or developer of a subdivision project or condominium project to initiate the organization of a homeowners association among the buyers and residents of the projects for the purpose of promoting and protecting their mutual interest and assist in their community development.
Thus, until and unless there is a properly organized homeowners and majority of its actual residents consented to the assessment and collection of association dues, no developer or subdivision owner shall collect and assess association dues, lest they be charged with unjust enrichment. In the case of Filinvest Land Inc., vs. Abdul Backy (GR 174715, October 11, 2012) the Honorable Supreme Court held that the principle of unjust enrichment essentially contemplates payment when there is no duty to pay, and the person who receives the payment has no right to receive it.
While it may be a little taxing and burdensome to comply with the above requirements, it is still a law that needs to be complied with. On this note, be reminded of the penal clause provided under Section 39 of PD 957, which provides for a fine of not more than P20,000 and/or imprisonment of not more than 10 years for violations of this particular law. You have been warned.
For comments, you may e-mail
lpkapunan@kapunanlaw.com.
2 comments
Mgandang araw Atty Kapunan.sa condominium po ba kapag monthly ka ngbbyad ng association dues,pwede po ba sila humingi ng extra charges para elevator expenses kahit wla silang bnibgay na financial report sa homeowners?
Dear Atty. Kapunan,
I am a lot owner inside a subdivision in Quezon City. The homeowners association is made by voluntary homeowners wherein they requires me to pay monthly dues for an idle lot which i personally think and believes that the impost amount is not fair and just. I just want to ask is there a proper/legal formulation in computating monthly dues for a subdivision based on Philippine Law on idle lot property ?
Thank you for your assistance. God Bless!
Sincerely,
Charmaine Herrera