Introduction

In the Philippine real estate landscape, condominiums represent a significant portion of urban housing and commercial developments. Governed primarily by Republic Act No. 4726, otherwise known as the Condominium Act of 1966, as amended, condominium ownership involves individual titles for private units and shared ownership of common areas. Association dues, also referred to as condominium dues or assessments, are mandatory contributions from unit owners to fund the maintenance, repair, and operation of these common areas and facilities. This article explores the intricacies of association dues in the context of multiple titles—situations where a single individual or entity holds ownership over more than one condominium unit within the same project. It delves into legal frameworks, computation methods, obligations, enforcement mechanisms, and related considerations, all within the Philippine legal context.

Legal Framework Governing Condominium Association Dues

The Condominium Act (RA 4726) establishes the foundational rules for condominium corporations and their operations. Under Section 9 of the Act, each condominium unit owner automatically becomes a member of the condominium corporation upon acquiring title to a unit. This membership entails rights and obligations, including the payment of dues.

Key provisions include:

Master Deed and Declaration of Restrictions: These documents, registered with the Register of Deeds, outline the project's structure, including the allocation of shares in common areas (often expressed as a percentage interest or "participation quota"). Dues are typically based on this allocation.
By-Laws of the Condominium Corporation: As per Section 10 of RA 4726, the by-laws govern the administration, including the assessment and collection of dues. They must comply with the Corporation Code (Batas Pambansa Blg. 68) and relevant regulations from the Housing and Land Use Regulatory Board (HLURB), now part of the Department of Human Settlements and Urban Development (DHSUD).
Republic Act No. 9904 (Magna Carta for Homeowners and Homeowners' Associations): While primarily for subdivisions, certain principles apply analogously to condominiums, emphasizing fair assessment and transparency in dues.
Civil Code Provisions: Articles 488 to 491 on co-ownership apply to common areas, reinforcing that expenses are shared proportionally.

In cases of multiple titles, the law treats each unit as a separate ownership interest. Thus, dues are assessed per unit, not per owner, unless the by-laws specify otherwise.

Computation and Assessment of Dues for Multiple Titles

Association dues are calculated based on the unit's proportionate share in the common areas, as defined in the Master Deed. Common formulas include:

Area-Based Allocation: Dues = (Unit Floor Area / Total Floor Area of All Units) × Total Budgeted Expenses.
Value-Based Allocation: Based on the appraised value or purchase price of the unit relative to the whole project.
Equal Sharing for Certain Expenses: Some by-laws may impose flat fees for specific services (e.g., security or utilities), but this must be equitable.

For owners with multiple titles:

Cumulative Assessment: If an owner holds titles to, say, three units with shares of 1%, 1.5%, and 2% respectively, their total dues would be the sum of dues for each unit (e.g., 4.5% of total expenses).
No Automatic Discounts: Philippine law does not mandate discounts for multiple-unit owners. However, by-laws may allow for negotiated adjustments if the owner demonstrates reduced usage or other justifications, subject to board approval.
Special Assessments: For extraordinary expenses (e.g., major repairs), these are levied similarly, per unit share. Under Section 20 of RA 4726, such assessments require majority approval in a members' meeting.
Inflation and Adjustments: Dues can be adjusted annually based on inflation or increased costs, as per by-laws, but must follow due process, including notice to owners.

Taxes and other fees, such as real property tax (RPT) under the Local Government Code (RA 7160), are separate from dues and assessed per title by local government units (LGUs).

Obligations of Owners with Multiple Titles

Owners of multiple units bear amplified responsibilities:

Timely Payment: Dues are typically due monthly or quarterly. Late payments incur penalties, interest (often 2-3% per month), and potential liens on the units, as per by-laws and Section 20 of RA 4726.
Voting Rights: Each unit grants one vote (or proportional votes based on share), so multiple-title owners have greater influence in association meetings.
Liability for Common Areas: Co-ownership implies joint liability for damages or negligence in common areas, potentially higher for those with larger cumulative shares.
Rental Scenarios: If units are rented out, the owner remains primarily liable for dues, though lease agreements can pass the cost to tenants. Under the Rent Control Act (RA 9653), dues are considered part of rent.

Failure to pay dues can lead to:

Suspension of Privileges: Loss of access to amenities like pools or gyms.
Legal Action: The association can file for collection in court, including foreclosure of the lien on the unit title(s).

Enforcement and Dispute Resolution

Enforcement mechanisms include:

Internal Remedies: Associations must provide notice and a hearing before imposing penalties, aligning with due process under the Philippine Constitution.
HLURB/DHSUD Jurisdiction: Disputes over dues, including unfair assessments for multiple titles, fall under DHSUD's quasi-judicial powers. Owners can file complaints for violations of RA 4726 or by-laws.
Court Actions: For larger disputes, civil courts handle cases under the Rules of Court, potentially leading to judgments for payment or injunctions.
Alternative Dispute Resolution (ADR): By-laws may require mediation or arbitration before litigation, as encouraged by RA 9285 (ADR Act).

Common disputes for multiple-title owners include allegations of over-assessment or discrimination, resolved by reviewing the Master Deed and financial audits.

Special Considerations

Corporate Ownership: If multiple titles are held by a corporation, dues are treated as business expenses, deductible under the Tax Code (RA 8424, as amended by TRAIN Law).
Inheritance and Succession: Upon death, multiple titles pass to heirs, who inherit dues obligations proportionally under the Civil Code's succession rules.
Condominium Conversion: For older buildings converted to condominiums under PD 957 (Subdivision and Condominium Buyers' Protective Decree), dues structures must be retrofitted, potentially affecting multiple-title holders.
Insurance: Associations maintain master policies for common areas, funded by dues. Multiple-unit owners may need separate insurance for their units.
Pandemic and Force Majeure: During events like COVID-19, associations may waive or defer dues under force majeure clauses, as seen in DHSUD advisories.
Sustainability and Green Initiatives: Modern by-laws may allocate dues for eco-friendly upgrades, impacting assessments.

Conclusion

Association dues for multiple titles in Philippine condominiums embody the principle of equitable contribution to shared resources. While the system promotes fairness through proportional sharing, it places a heavier burden on owners with larger holdings. Prospective buyers should scrutinize the Master Deed, by-laws, and financial statements. For existing owners, active participation in the association ensures transparent and reasonable dues management. Legal advice from a Philippine-barred attorney is recommended for complex scenarios to navigate this regulated domain effectively.