In the Philippines, the purchase of a condominium unit is not just an investment in real estate; it is an entry into a contractual relationship governed by specific statutes and the master deed of the project. A primary concern for any unit owner is the management of association dues and the financial health of the Condominium Corporation. Transparency is guaranteed by law, primarily through the Condominium Act (Republic Act No. 4726) and the Revised Corporation Code (Republic Act No. 11232).

The Legal Basis for Inspection

A Condominium Corporation is, first and foremost, a corporation. Under Section 73 of the Revised Corporation Code, which applies suppletorily to condominium corporations, every director, trustee, shareholder, or member has the right to inspect corporate books and records.

For condominium owners, this right is further reinforced by the principle that the corporation holds the common areas and the funds collected (dues, assessments, and reserves) in trust for the benefit of the unit owners.

Scope of the Right to Inspect

Unit owners are generally entitled to examine a wide range of financial documents, including but not limited to:

Annual Financial Statements: Audited balance sheets and income statements.
Minutes of Meetings: Records of the Board of Directors' meetings where financial resolutions (such as increases in association dues or approval of major repairs) were passed.
Books of Accounts: Ledgers and journals showing the daily inflow and outflow of funds.
Contracts and Vouchers: Agreements with third-party service providers (security, maintenance, utilities) and the corresponding proofs of payment.
Membership Lists: To verify the voting quorum and the standing of other members.

Conditions for the Exercise of the Right

The right to inspect is not absolute and must be exercised within reasonable parameters to ensure that the corporation's operations are not unduly disrupted.

Reasonable Hours: Inspection must take place during business hours on a business day.
Written Demand: The unit owner should submit a formal written request stating the specific records they wish to see and the purpose of the inspection.
Good Faith and Legitimate Purpose: The law requires that the demand be made in good faith and for a "legitimate purpose" related to the owner’s interest as a member of the corporation. Seeking records to harass the board or for a competing business interest may be grounds for denial.
Non-Disclosure: The unit owner is often required to keep the information confidential, especially if it contains sensitive data regarding other unit owners or proprietary business contracts.

Limitations and Privacy Concerns

The Data Privacy Act of 2012 (RA 10173) provides a significant check on the right to inspect. While an owner can see the corporation's financial health, they cannot demand access to the personal information of other owners (such as private contact details or specific personal debt profiles) without a court order or the consent of the data subjects, unless such disclosure is mandated by other laws.

Remedies for Denial of Access

If the Board of Directors or the property management office refuses to allow a unit owner to inspect the books without a valid legal reason, the owner has several points of recourse:

Internal Dispute Resolution: Check the Bylaws for a grievance procedure or mediation within the association.
Human Settlements Adjudication Commission (HSAC): The HSAC (formerly under the HLURB) has jurisdiction over disputes involving condominium corporations and their members. A unit owner can file a verified complaint to compel the board to produce the records.
Criminal and Administrative Liability: Under the Revised Corporation Code, any officer who refuses to allow inspection can be held liable for damages and may face administrative fines. If the refusal is proven to be in bad faith, it may even lead to criminal prosecution.

Conclusion

The right to inspect financial records is a cornerstone of good governance in Philippine condominiums. It serves as a check against mismanagement and ensures that the "community fund" is used solely for the upkeep and enhancement of the property. For unit owners, staying informed is not just a right—it is a responsibility necessary to protect the value of their property and the quality of their living environment.