Quick answer

A condominium association may impose a special assessment only if the charge is authorized by the condominium’s registered Master Deed or Declaration of Restrictions, bylaws, and applicable law—and approved through the procedure those documents require. A large, unpopular, or unexpected assessment is not automatically illegal. It may be challengeable, however, if it funds an unauthorized purpose, was approved without the required board or membership vote, lacks a valid quorum or notice, uses the wrong allocation formula, includes unauthorized interest or penalties, or is enforced without following legal requirements.

Do not simply ignore the bill. Under Section 20 of the Condominium Act, a valid assessment is the obligation of the person who owned the unit when the assessment was made. If properly recorded, the assessment and authorized charges may become a lien on the unit and may eventually be enforced through foreclosure.

The legality of a particular assessment therefore depends mainly on the condominium’s registered governing documents, the resolution and meeting records approving it, its stated purpose and computation, and the steps taken to collect it.

What is a special assessment?

A special assessment is generally a charge imposed in addition to regular condominium dues. It may be used for a major repair, replacement, reconstruction, safety project, capital expenditure, unexpected deficit, tax or lien affecting the common areas, or another expense connected with managing the condominium.

The Condominium Act does not create one universal approval percentage for every special assessment. Instead, Section 9 requires the registered Declaration of Restrictions to establish the management body’s powers and the applicable voting majorities, quorum, notice, meeting, and assessment rules.

The law permits a declaration to provide for reasonable assessments covering authorized expenditures, including:

Insurance for the condominium;
Maintenance, utilities, gardening, and services benefiting common areas;
Necessary personnel and professional services;
Materials and supplies for common areas;
Taxes or assessments affecting the entire project or common areas;
Discharge of liens or encumbrances against the project;
Reconstruction following damage or destruction; and
Other authorized expenditures necessary for condominium management.

Unless the governing documents validly provide a different method, each unit’s share of an authorized expense is assessed in proportion to the owner’s fractional interest in the common areas.

When is a special assessment legally enforceable?

An assessment is on firmer legal ground when all of the following are established:

The proper management body imposed it. The Declaration of Restrictions must identify the authorized management body, such as a condominium corporation, owners’ association, board of governors, or management agent.
The purpose falls within its authority. The expenditure should relate to the purposes allowed by the Condominium Act and the project’s governing documents. For a condominium corporation, its purposes are generally limited to holding and managing the common areas and performing functions necessary, incidental, or convenient to condominium management.
The correct approval process was followed. The board or members must approve the assessment in the manner required by the registered declaration, articles, bylaws, and applicable corporation law. This includes compliance with rules on notice, agenda, quorum, voting threshold, conflicts of interest, and documentation.
The amount and allocation are authorized and reasonable. The association should be able to show the budget, quotations, contracts, engineering reports, calculations, and allocation formula supporting the charge.
Interest, penalties, and legal charges have a contractual basis. Section 20 allows interest, costs, attorney’s fees, and penalties to be included only as the Declaration of Restrictions provides. A billing statement alone does not necessarily create authority for a new penalty.
Collection and lien procedures are followed. An unpaid assessment becomes a statutory lien under Section 20 only when the management body registers a compliant notice of assessment with the Register of Deeds.

The Supreme Court has emphasized that a duly registered Declaration of Restrictions binds unit owners and operates as part of the contractual framework among them. It has also recognized that the management body may enforce house rules and assessment provisions that are authorized by the registered declaration. See BNL Management Corporation v. Uy, G.R. No. 210297, April 3, 2019.

Warning signs that an assessment may be invalid

An assessment deserves closer scrutiny if:

The association cannot identify the provision authorizing the expense or assessment;
The project was charged for work benefiting only a private unit or a limited commercial interest, without a valid basis for charging everyone;
Members were required to approve the project, but no properly called meeting or valid vote occurred;
The notice omitted the assessment from the agenda or was sent too late under the governing documents;
The board lacked a quorum or relied on votes of unauthorized persons;
The resolution states no amount, project, payment schedule, or allocation method;
The charge was divided equally despite documents requiring allocation by fractional interest;
Commercial, parking, storage, or residential units were classified inconsistently with the Master Deed;
The assessment pays for a purpose outside the condominium corporation’s lawful objectives;
The board delegated the decision to a property manager without authority to do so;
The contractor has an undisclosed relationship with a director, officer, developer, or property manager;
The association refuses to provide the resolution, minutes, financial records, or supporting contracts;
The bill includes interest, penalties, collection fees, or attorney’s fees not authorized by the registered declaration;
The association has already collected for the same project or cannot account for an existing reserve fund;
The assessment contradicts an amendment, court order, or earlier binding resolution; or
A notice of lien contains the wrong owner, unit, amount, or authorized charges.

These facts do not automatically invalidate the charge. They identify questions that should be tested against the actual governing documents and records.

Does every special assessment require a vote of all unit owners?

No. There is no nationwide rule that every special assessment must receive a majority, two-thirds, or unanimous vote of all owners.

The governing documents may authorize the board to approve specified expenditures and assessments without a separate membership vote. They may instead require member approval above a peso threshold, for capital projects, or for expenses outside an approved budget. Emergency repairs may also be governed differently.

Section 9 of the Condominium Act makes the registered Declaration of Restrictions central: it must state the management arrangements and may establish the applicable voting majorities, quorum, notice, and assessment rules. The Revised Corporation Code supplies additional corporate rules where applicable, but it does not replace stricter or more specific lawful requirements in the condominium’s governing documents.

The first legal question is therefore not merely, “Did the owners vote?” It is, “Who had authority to approve this particular expenditure, and what procedure did the controlling documents require?”

Documents you should obtain

Ask for complete copies, not selected pages or an informal summary, of:

The registered Master Deed and Declaration of Restrictions, including amendments;
The condominium corporation’s articles of incorporation and current bylaws;
Relevant house rules and board policies;
The board or membership resolution approving the assessment;
Notice, agenda, proof of service, attendance records, proxies, quorum certification, minutes, and voting results;
The approved annual budget and reserve-fund records;
Audited or most recent financial statements;
Engineering, structural, fire-safety, or other technical reports supporting the work;
Bids, quotations, procurement records, contracts, and contractor information;
The assessment computation for every class of unit;
Documents showing each unit’s fractional interest;
Invoices, progress billings, permits, warranties, and proof of payment;
Conflict-of-interest and related-party disclosures;
Your complete statement of account; and
Any notice of assessment or lien registered against your Condominium Certificate of Title.

Under Sections 73 and 74 of the Revised Corporation Code, a member acting in good faith and for a legitimate purpose may inspect and request reproduction of corporate records, subject to lawful conditions. Corporate records include board and membership resolutions, transaction records, minutes, articles, bylaws, and filed reports. The corporation must furnish its most recent financial statement within 10 days after receiving a member’s written request.

Inspection rights are not unlimited. Restrictions may apply to protect personal data, trade secrets, or other confidential information, and the requesting person must be a member of record and act for a legitimate purpose.

How to challenge the assessment step by step

1. Read the billing notice carefully

Identify:

The principal assessment;
Due dates and installment terms;
Interest, penalties, and collection charges;
The stated purpose;
The approval date and approving body;
The allocation formula; and
Any threat involving utilities, access, a lien, or foreclosure.

Do not rely only on statements from guards, building staff, brokers, or informal group chats.

2. Check the registered documents

Compare the assessment with the exact provisions on:

Authorized expenditures;
Board and member powers;
Annual and special assessments;
Reserve funds;
Voting weights;
Notice and quorum;
Emergency expenditures;
Allocation among units;
Penalties and interest; and
Collection remedies.

Obtain a certified or verified copy of the registered declaration and amendments when authenticity or completeness is disputed.

3. Send a written request for records and an itemized explanation

Address the request to the condominium corporation or other named management body, through the corporate secretary and property manager. State that you are the registered owner or authorized representative, identify the unit, describe the records requested, and explain the legitimate purpose—for example, verifying the assessment’s authorization, computation, and use.

Request a written response by a reasonable date. Separately invoke the 10-day period under Section 74 for the most recent financial statement.

4. Make a specific written objection

Avoid a bare statement that the assessment is “illegal.” Identify each disputed point, such as:

No authority under a specified provision;
Missing membership approval;
Defective notice or quorum;
Incorrect fractional interest;
Unsupported project cost;
Unauthorized penalty;
Double billing; or
Conflict of interest.

Ask the association to suspend penalties and enforcement while it reviews the documented dispute. A request for suspension does not itself stop charges from accruing.

5. Consider payment options cautiously

Refusing all payment can expose the unit to additional charges and lien proceedings if the assessment is later upheld. Depending on the facts and advice of counsel, an owner may consider:

Paying the undisputed portion;
Requesting an installment arrangement;
Paying under a clear written protest; or
Seeking prompt judicial relief before enforcement advances.

Payment under protest does not automatically guarantee reimbursement or preserve every remedy. Its effect depends on the claims, documents, and circumstances. Do not deduct or withhold amounts unilaterally without understanding the risk.

6. Use internal remedies where appropriate

The bylaws may provide for reconsideration, mediation, a grievance committee, or presentation of the issue at a special or regular members’ meeting. Follow these processes when they are available and can provide effective relief, but do not let internal discussions cause you to miss a court deadline or foreclosure event.

7. Bring the dispute to the correct forum

A dispute between a condominium corporation and a unit-owner member over the validity or computation of association assessments will commonly be an intra-corporate controversy. The Supreme Court has held that such a case belongs in the Regional Trial Court designated as a Special Commercial Court, rather than an ordinary RTC branch or the former HLURB. See Medical Plaza Makati Condominium Corporation v. Cullen, G.R. No. 181416, November 11, 2013.

Jurisdiction may differ when the core claim is against the project owner or developer—for example, a buyer’s claim involving obligations under the contract of sale, approved plans, license to sell, or Presidential Decree No. 957. Those disputes may fall within the authority now exercised by the Human Settlements Adjudication Commission under the DHSUD Act.

The correct forum depends on the parties, allegations, requested relief, and controlling documents—not merely the label placed on the complaint. Filing in the wrong forum can cause delay or dismissal, so obtain legal advice before commencing a case.

Liens and foreclosure: what an unpaid assessment can lead to

Under Section 20 of the Condominium Act, an assessment made in accordance with a duly registered Declaration of Restrictions is the obligation of the owner when the assessment is made.

The assessment and authorized interest, costs, attorney’s fees, and penalties become a lien when the management body registers a notice of assessment with the Register of Deeds. The notice must state:

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

A properly registered assessment lien generally has priority over liens registered later, subject to real-property-tax liens and any subordination authorized by the Declaration of Restrictions. Once the obligation is paid or otherwise satisfied, the management body must cause the release of the lien to be registered.

The lien may be enforced through judicial or extrajudicial foreclosure in the manner provided for real-property mortgages. However, Section 20 does not by itself supply every authority needed for an extrajudicial sale. The Supreme Court has ruled that evidence of the condominium corporation’s special authority to sell is a precondition to extrajudicial foreclosure. See Legaspi Towers 300, Inc. v. Muer, G.R. No. 248743, September 7, 2022.

An owner also has the applicable right of redemption under the rules governing the kind of foreclosure used. The exact deadlines and procedural rights depend on whether the proceeding is judicial or extrajudicial, the identity of the parties, and the governing foreclosure law. Treat any sheriff’s notice, notice of sale, court summons, or title annotation as urgent.

Can the association cut utilities or restrict access?

An association does not have an unlimited power to use any collection measure it chooses. The legality of restricting services depends on the registered declaration, valid bylaws or house rules, the nature of the service, the procedure followed, and other applicable laws.

The Supreme Court has upheld interruption of utility services in a case where the Master Deed expressly authorized rules for condominium management and the applicable house rule allowed interruption for nonpayment. That decision was document- and fact-specific; it should not be treated as a blanket authority to disconnect every service or obstruct essential, emergency, or legally protected access.

If a threatened restriction creates a fire, medical, security, sanitation, accessibility, or other immediate safety risk, seek urgent legal and government assistance rather than waiting for the billing dispute to be resolved.

Evidence to preserve

Keep both electronic and printed copies of:

Bills, official receipts, bank records, and statements of account;
Emails, letters, notices, and proof of delivery;
Meeting notices, agendas, minutes, ballots, proxies, and resolutions;
Governing documents and certified Registry of Deeds records;
Photographs and videos of the claimed repair or condition;
Engineering reports, permits, bids, contracts, and invoices;
Screenshots of online portals showing charges or access restrictions;
Names, positions, dates, and summaries of relevant conversations;
Notices from lawyers, collection agencies, the Register of Deeds, courts, or sheriffs; and
Your written objections and the association’s responses.

Record facts lawfully. Do not secretly record private communications without first obtaining advice on applicable privacy and evidentiary rules.

Common mistakes to avoid

Assuming that “special” means voluntary;
Challenging the assessment without reading the registered declaration;
Believing that owner approval is always required;
Treating a property manager’s explanation as the corporate resolution itself;
Ignoring valid regular dues while disputing only the special assessment;
Selling the unit without addressing a disputed balance or title annotation;
Waiting for foreclosure before consulting counsel;
Relying exclusively on verbal assurances;
Accusing officers of fraud without evidence;
Filing with the SEC merely because the entity is a corporation;
Filing with DHSUD or HSAC without determining whether the case is actually a buyer-versus-developer dispute; and
Assuming that a defective assessment can never be corrected and validly reimposed.

When legal help is urgent

Consult a Philippine lawyer promptly if:

A notice of assessment has been annotated on the condominium title;
You receive a demand threatening foreclosure;
A petition for judicial foreclosure or other court pleading is served;
A sheriff or notary issues a notice of extrajudicial sale;
The unit is already being advertised for auction;
The association threatens to cut electricity, water, elevator access, or essential security access;
The assessment is large enough to threaten your home, business, or financing;
You are about to sell, refinance, or transfer the unit;
The governing documents are inconsistent or appear to have been amended improperly;
Records suggest self-dealing, falsified minutes, diverted funds, or fabricated expenses; or
A limitation, appeal, redemption, or court-response period may be running.

A lawyer may need to evaluate declaratory or injunctive relief, an accounting, nullification of corporate action, damages, inspection remedies, or defenses to collection or foreclosure. Availability depends on the evidence and procedural posture.

Frequently asked questions

Can I refuse to pay because I did not attend the meeting?

Not necessarily. A valid corporate decision can bind absent or dissenting owners if the authorized body acted within its powers and complied with the governing notice, quorum, and voting rules.

Is an assessment invalid because owners did not personally approve it?

Not automatically. The board may already have authority under the registered declaration or bylaws. Member approval is necessary only when the governing documents or applicable law require it for that action.

Can the association divide the amount equally among all units?

Only if the controlling documents lawfully authorize that allocation. Section 9 of the Condominium Act uses fractional interests in the common areas as the default basis unless otherwise provided.

May the association impose interest and attorney’s fees?

Only to the extent authorized by the Declaration of Restrictions and applicable law. The amounts may still be challenged if improperly approved, computed, unsupported, or legally excessive.

Does a billing statement automatically create a lien?

No. Section 20 requires the management body to register a compliant notice of assessment with the proper Register of Deeds before the statutory assessment lien arises.

Can the association foreclose immediately after annotating a lien?

No. Annotation and foreclosure are distinct steps. The association must follow the governing judicial or extrajudicial foreclosure procedure. For extrajudicial foreclosure, the Supreme Court requires evidence of special authority to sell.

Who owes an assessment after a unit is sold?

Section 20 places the obligation on the owner at the time the assessment was made. A registered lien may nevertheless affect the unit and a later transaction. The deed of sale, disclosures, clearance documents, lien status, and allocation between buyer and seller should all be reviewed.

Can a tenant challenge the assessment?

The primary statutory obligation ordinarily rests on the unit owner. A tenant’s rights depend on the lease, the governing rules, and the action taken against the tenant. The registered owner should usually make the corporate-record request and formal objection unless the tenant has proper written authority.

Must the association refund an assessment if the project costs less than expected?

That depends on the resolution, governing documents, accounting treatment, and any lawful decision to retain the balance as a reserve or apply it to related authorized costs. Owners may request a complete accounting; a surplus is not automatically refundable without examining those documents.

Where can I verify the governing rules?

Check the unit’s Condominium Certificate of Title and obtain the registered Master Deed, Declaration of Restrictions, and amendments from the Registry of Deeds. Corporate filings and records may also be obtained from the condominium corporation and, where appropriate, the Securities and Exchange Commission.

Official legal references

General-information disclaimer

This article provides general Philippine legal information, not legal advice or a prediction of any case’s outcome. Condominium disputes are highly document- and fact-dependent. Have a qualified Philippine lawyer review the registered governing documents, assessment records, title annotations, and notices relevant to your unit. Laws and official sources were checked as of September 5, 2026.