Quick answer

A condominium owner must generally pay association dues and valid special assessments imposed under the condominium’s duly registered Master Deed with Declaration of Restrictions, by-laws, and properly adopted rules. But the management body cannot simply charge any amount it chooses. The assessment must be authorized, calculated using the project’s governing allocation, approved by the proper body, and supported by any notice or procedural requirements in those documents.

An owner may dispute an unauthorized charge, an incorrect allocation, unexplained penalties, duplicate billing, or an assessment imposed without the required approval. A dispute does not automatically suspend the duty to pay, however. Ignoring statements of account can lead to interest, collection costs, an annotated lien, restrictions expressly authorized by the governing documents, and ultimately judicial or—where valid written authority exists—extrajudicial foreclosure.

The decisive question is usually documentary: What do the registered Master Deed and Declaration of Restrictions, the by-laws, the board resolutions, and the owner’s statement of account actually authorize?

Why the Master Deed matters

Under the Condominium Act, Republic Act No. 4726, a condominium includes both the owner’s separate interest in a unit and an appurtenant interest in the land and common areas.

Before selling units, the project owner must register a declaration of restrictions and have it annotated on the title covering the project. These restrictions bind unit owners and ordinarily govern matters such as:

The project’s management body;
Voting rights, quorum, meetings, and notice;
Maintenance, insurance, utilities, personnel, and professional services;
Authorized operating and capital expenditures;
The allocation of regular and special assessments;
Interest, penalties, collection costs, and liens;
Enforcement powers and remedies; and
Procedures for amending the restrictions.

The Supreme Court has characterized the registered Master Deed as part of the contractual arrangement among unit owners, who are co-owners—directly or through a condominium corporation—of the common areas. Purchasing a unit normally binds the buyer to these registered restrictions even if the buyer later says that they were not personally read. See BNL Management Corporation v. Uy, G.R. No. 210297, April 3, 2019.

The documents do not operate in isolation. For a typical condominium corporation, the following hierarchy should be checked:

The Condominium Act and other applicable laws;
The enabling or Master Deed and registered Declaration of Restrictions;
The articles of incorporation;
The by-laws;
Valid board or membership resolutions; and
House rules and administrative policies adopted under authority granted by the higher documents.

Section 10 of the Condominium Act prohibits articles or by-laws inconsistent with the Act, the Master Deed, or the declaration of restrictions. A board resolution or house rule likewise cannot validly create a power that the controlling documents and law do not permit.

When association dues are generally valid

Section 9 of the Condominium Act allows a registered declaration of restrictions to provide for reasonable assessments to meet authorized expenditures. Unless the declaration provides another lawful formula, each unit is assessed separately in proportion to the owner’s fractional interest in the common areas.

Regular dues commonly fund legitimate common expenses, including:

Security, janitorial, maintenance, and administrative personnel;
Common-area electricity, water, repairs, and cleaning;
Elevator, fire-safety, and building-equipment maintenance;
Insurance and professional services;
Taxes or assessments affecting the project or common areas; and
Properly authorized reserve or capital-expenditure funds.

A special assessment may be valid for extraordinary repairs, replacement of major equipment, reconstruction, or an approved improvement if the governing documents authorize the expense and the required board or membership approval was obtained.

An assessment is more likely to be enforceable when the association can show:

A specific source of authority in the registered declaration or by-laws;
Approval by the board or members required by those documents;
Compliance with quorum, voting, notice, and meeting requirements;
A consistent allocation formula;
A clear due date and statement of account; and
A legitimate project or common-area purpose.

There is no single nationwide monthly-dues formula, grace period, late-payment rate, or penalty cap in the Condominium Act. Those matters usually depend on the project’s registered restrictions and valid by-laws or rules, subject to applicable law and judicial review for validity or reasonableness.

Grounds for questioning a charge

An owner may have a substantial basis to dispute all or part of an assessment when, for example:

The expense is outside the purposes authorized by the Master Deed;
The amount was imposed by a manager or officer who lacked authority;
The required board or membership vote was not obtained;
Notice, quorum, or meeting procedures were materially violated;
The owner’s share was calculated using the wrong floor area, participation interest, classification, or allocation formula;
A special assessment was represented as approved when no supporting resolution exists;
Payments or credits were omitted;
Interest or penalties are not authorized by the registered restrictions;
Charges were applied retroactively without a contractual or legal basis;
Attorney’s fees or collection costs were added automatically without the authority or factual basis required for them;
The same expense was billed twice or was already covered by another fund;
The charge is for a private benefit rather than an authorized common expense; or
The collection measure exceeds the remedy permitted by the governing documents.

A poor service experience, dissatisfaction with management, or a pending election dispute does not by itself erase an otherwise valid assessment. In BNL Management, the Supreme Court rejected the owners’ reliance on mere allegations about the validity of the rules and board while enforcing restrictions grounded in the Master Deed.

Conversely, an association cannot cure an unauthorized assessment merely by repeatedly issuing statements of account. The authority, approval, calculation, and supporting records still matter.

Your right to ask for records

If the management body is a condominium corporation, a unit owner is ordinarily also a member or stockholder through ownership of the unit. Section 73 of the Revised Corporation Code, Republic Act No. 11232 provides qualifying stockholders or members with rights to inspect and reproduce corporate records at reasonable hours on business days, subject to the statute’s requirements, legitimate-purpose limitations, confidentiality protections, and procedural rules.

For a dues dispute, request specific records rather than making an indefinite demand for “everything.” Relevant documents may include:

The registered Master Deed and Declaration of Restrictions, including amendments;
The articles of incorporation and current by-laws;
The schedule of appurtenant or fractional interests;
The board or membership resolution approving the assessment;
Meeting notices, attendance records, quorum confirmation, and relevant minutes;
The approved annual budget;
The computation and allocation schedule;
Audited financial statements and applicable auditor’s notes;
The reserve-fund policy and records relevant to the disputed expenditure;
Contracts, invoices, or project documents supporting a special assessment;
Your unit ledger, official receipts, adjustments, and credits; and
The written policy authorizing interest, penalties, collection costs, or service restrictions.

Inspection rights are not unlimited. Personal data, privileged legal communications, trade secrets, and records irrelevant to a legitimate corporate purpose may require redaction or restricted access. State your purpose clearly—for example, verifying the authority and calculation of a specified assessment—and comply with reasonable inspection arrangements.

Do not assume that the Magna Carta for Homeowners and Homeowners’ Associations, Republic Act No. 9904, automatically governs a condominium corporation. A condominium corporation created under the Condominium Act is legally distinct from a homeowners’ association registered under the HOA law. The entity’s registration and governing statute must be verified.

A practical way to dispute the bill

1. Obtain the controlling documents

Secure certified or reliable copies of the Master Deed, Declaration of Restrictions, amendments, by-laws, and your Condominium Certificate of Title. Check the title annotations and, if necessary, request records from the Registry of Deeds.

Do not rely only on a building handbook or a summary given at turnover.

2. Reconstruct the account

Prepare a month-by-month table showing:

Amount billed;
Due date;
Payment made;
Official-receipt number;
Credit or adjustment;
Interest or penalty;
Special assessment; and
Amount actually disputed.

Compare the association’s computation with the allocation stated in the Master Deed. Keep regular dues separate from utilities, parking charges, penalties, and special assessments.

3. Identify the exact defect

A useful objection states precisely what is wrong. Examples include:

“The Master Deed allocates common expenses according to a 1.35% appurtenant interest, but the statement uses 1.80%.”
“The by-laws require membership approval for this capital expenditure, but no approving resolution was provided.”
“The ledger omitted Official Receipt No. ___ dated ___.”
“Please identify the registered provision authorizing the stated monthly interest and attorney’s fees.”

A general accusation that the dues are “unfair” is harder to evaluate and resolve.

4. Send a written dispute and demand for clarification

Address the letter to the condominium corporation or other named management body—not only to individual building staff. Include:

Your name, unit number, and contact details;
The disputed billing periods and charges;
The undisputed amount, if any;
The governing provisions on which you rely;
Copies of receipts and other proof;
A focused request for records;
A request for a corrected statement or written explanation; and
A reasonable response date.

Send it through a channel that produces proof of receipt. Preserve the complete email thread, courier receipt, receiving copy, or portal acknowledgment.

5. Consider paying the undisputed amount

Withholding the entire bill can increase exposure even when only one charge is contested. Where appropriate, tender the undisputed portion and state in writing which amount remains disputed.

If you decide to pay the disputed amount to prevent escalating penalties or an imminent enforcement measure, ask a lawyer whether payment should be expressly made under protest and how to preserve a claim for reimbursement. Avoid writing admissions that the entire assessment is valid unless that is your intention.

6. Use the internal remedy

Follow any grievance, reconsideration, hearing, or appeal procedure in the Master Deed and by-laws. Attend the meeting, submit documents on time, and ask that your objection and the board’s decision be recorded in the minutes.

Internal review does not necessarily stop a statutory, contractual, foreclosure, or court deadline. Obtain legal advice if an external deadline may be running.

7. Escalate to the correct forum

Jurisdiction depends on the parties and the real nature of the claim:

A buyer’s claim against a developer for an unsound real-estate business practice, refund, or performance of obligations arising from the sale or development of a condominium may fall within the original jurisdiction of a Regional Adjudicator of the Human Settlements Adjudication Commission under Republic Act No. 11201.
Certain disputes involving common areas also fall within HSAC’s statutory jurisdiction.
A genuine intra-corporate controversy involving a condominium corporation, its members, directors, elections, or internal corporate rights may belong in the Regional Trial Court designated as a Special Commercial Court. The Supreme Court has distinguished condominium corporations from homeowners’ associations for jurisdictional purposes in Medical Plaza Makati Condominium Corporation v. Cullen, G.R. No. 181416, November 11, 2013.
An ordinary collection, damages, injunction, or foreclosure action may belong in a court, depending on its allegations, relief sought, property involved, and applicable jurisdictional rules.

The caption placed on a complaint does not control jurisdiction; its material allegations and requested relief do. Filing in the wrong forum can consume valuable time. Have counsel identify the proper remedy before filing, especially if a lien, utility restriction, sale, or foreclosure is threatened.

What happens when dues remain unpaid

Personal obligation

Under Section 20 of the Condominium Act, an assessment made in accordance with a duly registered declaration of restrictions is the obligation of the person who owns the unit when the assessment is made.

This makes the assessment date and ownership history important. In a sale, inheritance, tax sale, or foreclosure, determine who owned the unit during each billing period and whether any registered lien follows the property.

Interest, penalties, and collection costs

The assessment may carry interest, penalties, collection expenses, and attorney’s fees when these are provided for in the declaration of restrictions and are otherwise legally recoverable. The association should identify the provision and show the computation.

A billing entry labeled “attorney’s fees” is not automatically conclusive. The contractual authority, reasonableness, actual circumstances, and—if litigated—the court’s power to determine recoverable fees remain relevant.

Registered assessment lien

The unpaid amount does not become the statutory Section 20 lien merely because it appears on an internal ledger. The management body must cause a notice of assessment to be registered with the Registry of Deeds. The notice must state:

The assessment and authorized additional charges;
A description of the unit;
The registered owner’s name; and
The signature of an authorized representative.

Once properly registered, the lien is superior to liens registered afterward, except real-property-tax liens and any liens to which it is subordinated under the declaration. Upon full payment or other satisfaction, the management body must cause the release of the lien to be registered.

A buyer should therefore obtain an updated title and examine annotations rather than relying exclusively on a seller’s representation that dues are settled. In Goldland Tower Condominium Corporation v. Lim, G.R. No. 268143, August 12, 2024, the Supreme Court recognized that a duly annotated assessment lien can remain attached to the property despite a change in ownership.

Collection suit or judicial foreclosure

The management body may pursue an ordinary collection action or, when the statutory and documentary requirements are met, judicial foreclosure under Rule 68 of the Rules of Court.

A prior demand letter is often important for proving default, interest, and procedural fairness. However, the Supreme Court explained in Goldland Tower that Article 1169 of the Civil Code allows either judicial or extrajudicial demand; filing an action can itself constitute judicial demand unless a law or contract requires an earlier step.

Extrajudicial foreclosure

Section 20 permits enforcement of a valid assessment lien in the manner provided for judicial or extrajudicial foreclosure of real property. It does not, by itself, give the management body authority to sell an owner’s unit extrajudicially.

The Supreme Court has held that extrajudicial foreclosure requires evidence of a written special authority or power to sell. That authority may be contained in the declaration of restrictions or by-laws, but general language allowing the association to “use remedies provided by law” is not necessarily enough. Without the required authority, the association may have to use an ordinary collection case or judicial foreclosure. See Brouwer v. Spouses Arboleda, G.R. No. 248743, September 7, 2022 and First Marbella Condominium Association, Inc. v. Gatmaytan, G.R. No. 163196, July 4, 2008.

Even where authority exists, the association must comply with governing foreclosure law and rules, including applicable filing, notice, posting, publication, sale, registration, and redemption requirements. A defect in one requirement can materially affect the sale’s validity. Do not wait until auction day to obtain counsel.

Restrictions on services or facilities

An association may attempt to restrict access to amenities or interrupt association-controlled services for delinquency. Such action is not automatically valid in every project. Its legality depends on the Master Deed, valid rules, the nature of the service, contractual arrangements, and compliance with applicable law.

In BNL Management, the Supreme Court upheld utility interruption where the registered Master Deed authorized building rules and the applicable rules expressly permitted interruption for nonpayment. That decision should not be read as a universal license to disconnect every service in every condominium. Verify the precise authority and circumstances, particularly where safety, habitability, individually contracted utilities, tenants, or vulnerable occupants are involved.

Evidence to preserve

Keep both electronic and paper copies of:

Your title, deed of sale, turnover documents, and ownership dates;
The Master Deed, Declaration of Restrictions, amendments, and by-laws;
All statements of account and unit-ledger versions;
Official receipts, deposit slips, bank records, and payment confirmations;
Budgets, financial statements, audit reports, and assessment computations;
Notices and minutes relating to the assessment;
Board and membership resolutions;
Contracts, quotations, invoices, and photographs relevant to a special project;
Emails, letters, text messages, and portal communications;
Proof that your dispute or payment was received;
Demand letters, lien notices, Registry of Deeds annotations, and foreclosure papers;
Notices of utility or amenity restrictions; and
Records of any resulting loss or expense.

Save original files and full message headers when possible. Do not alter screenshots or discard envelopes showing when a formal notice was received.

Common mistakes

Stopping all payments without a plan

A disputed special assessment does not necessarily invalidate regular dues. Nonpayment can cause the uncontested balance to grow and weaken an owner’s practical position.

Relying on an oral complaint

A conversation with an administrator may not prove what was disputed or when notice was given. Confirm discussions in writing.

Challenging the amount without reading the documents

The association’s authority may be in the registered Declaration of Restrictions, while the calculation procedure may be in the by-laws. Both sides should work from the complete, current versions.

Assuming every owner pays equally

The Condominium Act’s default is proportional assessment based on fractional interest, unless the declaration validly provides otherwise. Equal billing is not automatically correct—or incorrect—without checking the project documents.

Confusing an internal balance with an annotated lien

A statement of account and a Registry of Deeds notice of assessment are different. Section 20 specifies what must be registered for the statutory lien and its priority.

Assuming an annotated lien automatically permits an auction

A lien does not dispense with the separate requirements for foreclosure. Extrajudicial foreclosure, in particular, requires adequate written authority to sell and compliance with the governing procedure.

Ignoring notices because negotiations are ongoing

Unless there is a written standstill agreement or lawful order, settlement discussions may not stop penalties, litigation, foreclosure steps, or response deadlines.

Filing in the wrong agency or court

Condominium disputes can involve real-estate regulation, corporate law, contracts, property liens, or foreclosure. The correct forum turns on the parties, allegations, and relief—not merely the word “condominium.”

When legal help is urgent

Consult a Philippine lawyer immediately if:

A notice of assessment has been or is about to be annotated on the title;
You receive a demand threatening foreclosure;
A petition, summons, sheriff’s notice, notice of sale, or certificate of sale is served;
Posting or publication of an auction has begun;
Utilities or access essential to safety or occupancy are threatened;
The association refuses payment of the undisputed amount;
A buyer, bank, tenant, or prospective sale is affected by the dispute;
The unit changed owners while arrears were outstanding;
The dispute involves a large special assessment or suspected misuse of funds;
Corporate records are being withheld despite a proper inspection demand; or
A filing, appeal, redemption, or procedural deadline may expire.

Foreclosure and redemption periods are procedure-specific and fact-sensitive. Determine the applicable deadline from the actual papers and governing law; do not rely on an informal statement that an owner always has a fixed number of months or years.

Frequently asked questions

Can I refuse to pay because the building is poorly managed?

Not automatically. Poor management may support a records demand, corporate remedy, damages claim, or challenge to a particular unauthorized expenditure, but it does not ordinarily cancel assessments validly imposed under the Master Deed. Identify and document the specific breach and obtain advice before withholding payment.

Must the association show how dues were computed?

The association should be able to identify the authority, applicable allocation, approved amount, and ledger entries supporting its demand. A qualifying member of a condominium corporation may also invoke applicable corporate inspection rights for a legitimate purpose, subject to statutory limitations.

Can the board increase dues without a vote of all owners?

Possibly. The answer depends on which body the Master Deed and by-laws authorize to set regular assessments, the required vote and quorum, and whether the increase falls within that authority. Unanimous owner approval is not a universal requirement, but neither can the board disregard a required membership vote.

Are special assessments automatically valid if the board approves them?

No. Board approval is enough only if the governing documents give the board that authority and the assessment concerns an authorized expenditure. Required notice, quorum, voting, allocation, and documentation must also be observed.

Can penalties be imposed if the Master Deed does not mention them?

Section 20 recognizes interest, costs, attorney’s fees, and penalties as may be provided in the declaration of restrictions. If the claimed charge appears only in a later policy, ask the association to identify the Master Deed provision authorizing the board to adopt it and verify whether the rule was validly approved and applied.

Can an owner sell a unit with unpaid dues?

A sale may be possible, but unpaid assessments and an annotated lien can affect closing, the buyer, and title. The parties should obtain a current statement of account, examine the title, allocate responsibility in writing, and ensure that any paid lien is formally released at the Registry of Deeds.

Does a new owner inherit the former owner’s unpaid dues?

Personal liability for an assessment initially rests on the owner when it was made. But a duly registered assessment lien attaches to the unit and may survive a transfer. The deed, title annotations, sale terms, dates of assessment, and manner of acquisition must all be examined.

Can the association foreclose without first suing me?

Only if extrajudicial foreclosure is supported by adequate written authority to sell and all legal and procedural requirements are satisfied. Section 20 alone is insufficient. Without that authority, the association may pursue collection or judicial foreclosure instead.

Where can I verify the governing law or seek official guidance?

Start with the Condominium Act, the Revised Corporation Code, and Republic Act No. 11201 establishing DHSUD and HSAC. For developer-regulation concerns and buyer remedies, consult the Department of Human Settlements and Urban Development and the Human Settlements Adjudication Commission. Case-specific questions about title annotations may also require records from the appropriate Registry of Deeds.

Bottom line

Owners are bound by lawful assessments grounded in the registered Master Deed, but they are entitled to verify the authority, approval, allocation, and computation behind the bill. The safest response is usually to obtain the governing documents, reconcile the ledger, dispute specific errors in writing, preserve the evidence, and address any undisputed balance. Once a lien or foreclosure notice appears, the matter should be treated as urgent.

This article provides general Philippine legal information, not legal advice or an attorney-client opinion. Rights and remedies depend on the project documents, title annotations, parties, notices, and procedural history. Laws and official sources were checked as of September 5, 2026.