Every unit owner of a condominium has the obligation to pay for the monthly dues imposed upon by the association of the condominium building. These fees are collected for the continuous improvements and maintenance of the facilities and amenities enjoyed by all the tenants of the condominium building. However, there are times where some unit owners incur delays in payment of their condominium dues.
How then may the management collect the payments from them?
One of the ways that The Condominium Act states is by annotating a notice of lien in the title of the condominium of the member who is a delinquent in their payments. This may be a course of action that the association may impose when continuous delay in the payment of condominium dues have been done by the member, and the corresponding fees have ballooned into an exorbitant amount already.
Section 20 of The Condominium Act states that, “an assessment upon any condominium made in accordance with a duly registered declaration of restrictions shall be an obligation of the owner thereof at the time the assessment is made. The amount of any such assessments plus any other charges thereon, such as interests, costs (including attorney’s fees) and penalties, as such may be provided for in the declaration of restrictions, shall be and become a lien upon the condominium assessed when the management body causes a notice of assessment to be registered with the Register of Deeds of the city or province where such condominium project is located. The notice shall state the amount of such assessment and such other charges thereon a may be authorized by the declaration of restrictions, a description of the condominium, unit against which same has been assessed, and the name of the registered owner thereof. Such notice shall be signed by an authorized representative of the management body or as otherwise provided in the declaration of restrictions. Upon payment of said assessment and charges or other satisfaction thereof, the management body shall cause to be registered a release of the lien.”
What is the nature of the lien annotated to the condominium title?
Section 20 provides that, “Such lien shall be superior to all other liens registered subsequent to the registration of said notice of assessment except real property tax liens and except that the declaration of restrictions may provide for the subordination thereof to any other liens and encumbrances. Such liens may be enforced in the same manner provided for by law for the judicial or extrajudicial foreclosure of mortgages of real property. Unless otherwise provided for in the declaration of restrictions, the management body shall have power to bid at foreclosure sale.”
Does the delinquent member have any recourse? Section 20 states that “The condominium owner shall have the same right of redemption as in cases of judicial or extrajudicial foreclosure of mortgages.”
Need further information and assistance regarding annotation of delinquent condo dues in the Philippines? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+632) 8478 5826 or send an email to [email protected] for more information.