Owning a condominium unit is quite different than owning a house and lot. Knowing these differences should be among the things you should consider before deciding which type of real estate to buy.
Right To Own
It is a known fact that land ownership in the Philippines is generally restricted to Filipino Citizens. This is the biggest hurdle a foreigner should think about when buying a house and lot unit. To make things simple, a foreigner usually puts the land title in the name of a Filipino (or a Filipina) espouse or trusted friend, or a girlfriend. It is easy to see how this leads to complications when conflicts arise in the relation between the foreigner and the Filipina.
On the other hand, owning a condominium unit is valid legally for any foreigner. Perhaps, this makes condominium the only sensible option for a foreigner to buy a real estate in the Philippines. If you can afford it and you wanted a place in the Philippine Islands, go condo.
Extent of Ownership
When you own a house and lot, you also own the following:
- anything on top of the land, including the air space, the trees, the stones
- the house interiors and the exteriors
- everything under the land including any mineral deposits
- anything produced from the use of the land including the fruits of the tree, etc
That’s a lot of things to own. This could be the reason why Louis J. Glickman has said, “The best investment on earth is earth.”
In a condominium, you only own the interiors of your unit and all things contained therein. Everything else is jointly owned by you and other condominium shareholders. The land on which the condominium project stands is titled to the Condominium Corporation.
Evidence of Ownership
You know that you are an owner in fee simple of a piece of land if you have a Transfer Certificate of Title. For a condo unit, your ownership is evidenced by Condominium Certificate of Title.
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