A Philippine Legal Article

I. Introduction

In the Philippines, the purchase of a condominium unit does not involve only the transfer of the private unit itself. It also carries with it participation in the condominium project’s common areas, shared facilities, and condominium corporation. Because of this, a buyer who acquires a condominium unit becomes subject to the dues, assessments, rules, and obligations imposed by the condominium corporation or homeowners’ association-like governing body of the project.

A recurring legal and practical question is: after the sale of a condominium unit, who pays the condominium corporation dues — the seller or the buyer?

The basic answer is this:

The seller is generally responsible for condominium dues, assessments, penalties, and charges that accrued before the transfer of ownership or before the agreed turnover date, while the buyer is generally responsible for dues and assessments that accrue after ownership, possession, or beneficial use passes to the buyer.

However, the precise answer depends on the deed of sale, the by-laws and house rules of the condominium corporation, the date of turnover or possession, the date of registration of the sale, the date of issuance of the condominium certificate of title, and whether there are unpaid assessments already attached to the unit.

II. Legal Nature of Condominium Corporation Dues

Condominium dues are regular assessments collected by the condominium corporation to fund the maintenance, management, security, insurance, utilities for common areas, repairs, administrative expenses, and other obligations of the condominium project.

They may cover, among others:

Security services;
Janitorial and maintenance services;
Electricity and water for common areas;
Elevator maintenance;
Garbage collection;
Insurance of the building or common areas;
Administrative staff and property management fees;
Repairs and improvements;
Reserve funds;
Real property tax on common areas, where applicable;
Special assessments for major repairs, emergencies, or capital expenditures.

Condominium dues are not ordinary personal debts in the same sense as a private loan. They arise from ownership or beneficial occupancy of a unit in a condominium project and from membership or participation in the condominium corporation.

III. The Condominium Corporation Under Philippine Law

The Philippine Condominium Act, Republic Act No. 4726, recognizes the condominium concept, where a person may own an individual unit and hold an undivided interest in the common areas, either directly or through membership or shareholding in a condominium corporation.

In many Philippine condominium projects, ownership of a unit comes with membership in the condominium corporation. The condominium corporation holds or manages the common areas for the benefit of the unit owners. The corporation, through its board of directors or trustees and property manager, collects dues and assessments from unit owners to maintain the project.

Thus, when a buyer purchases a condominium unit, the buyer does not merely acquire a private physical space. The buyer also becomes bound by the condominium’s master deed, declaration of restrictions, articles of incorporation, by-laws, house rules, and board-approved assessments.

IV. The General Rule: Dues Follow Ownership or Beneficial Use

As between buyer and seller, condominium dues are usually allocated according to the period of ownership, possession, or beneficial use.

1. Seller’s responsibility

The seller should generally pay:

Condominium dues that accrued before the sale;
Unpaid assessments billed before closing;
Penalties, surcharges, and interest caused by late payment before the sale;
Utility charges attributable to the seller’s period of occupancy or control;
Special assessments approved before the sale, unless the deed provides otherwise;
Clearance fees or charges required to obtain condominium corporation clearance, if agreed or customarily required from the seller.

2. Buyer’s responsibility

The buyer should generally pay:

Condominium dues accruing after the sale;
Dues accruing after possession or turnover to the buyer;
Assessments billed after the buyer becomes the registered owner or recognized owner by the condominium corporation;
Charges arising from the buyer’s use, occupancy, tenants, guests, contractors, or renovations;
Special assessments imposed after ownership or possession has passed, unless the deed states otherwise.

The cleanest legal arrangement is to prorate the dues as of a specific date, usually the date of closing, execution of the deed of absolute sale, turnover of possession, or full payment, depending on the transaction documents.

V. The Critical Dates

Disputes often arise because different parties rely on different dates. In condominium transactions, several dates may matter.

1. Date of execution of the deed of sale

This is the date when the seller and buyer sign the deed transferring ownership. Between the parties, this is often treated as the closing date.

If the deed says the buyer assumes condominium dues “from the date of execution,” then the buyer may be liable from that date, even if the title is transferred later.

2. Date of full payment

In installment sales or transactions involving a balance payable after signing, the parties may agree that dues remain with the seller until full payment. This is common where the seller keeps possession or control until the price is fully paid.

3. Date of turnover of possession

This is often the most practical date. The party who has possession or beneficial use of the unit is usually expected to shoulder the carrying costs, including dues.

If the buyer already has the keys, access cards, parking access, authority to renovate, or right to lease the unit, the condominium corporation and the seller may treat the buyer as responsible for dues from turnover.

4. Date of registration with the Registry of Deeds

Registration is important because it affects third persons and the official title record. The buyer becomes the registered owner only after the deed is registered and a new Condominium Certificate of Title is issued in the buyer’s name.

Some condominium corporations will not fully recognize the buyer as the owner until the new title or transfer documents are submitted.

5. Date of recognition by the condominium corporation

The condominium corporation may require submission of documents before updating its records, such as:

Deed of Absolute Sale;
New Condominium Certificate of Title;
Tax declaration;
Valid IDs;
Certificate Authorizing Registration from the Bureau of Internal Revenue;
Clearance from the property management office;
Payment of transfer or administrative fees;
Notarized undertaking by buyer or seller.

Until the corporation updates its records, bills may continue to be issued in the seller’s name, even though the buyer has already taken possession.

This can create confusion, but billing name alone is not always conclusive as between buyer and seller. The deed and actual turnover arrangement remain important.

VI. The Role of the Deed of Sale

The deed of sale is usually the controlling document between buyer and seller. It should clearly state who pays condominium dues before and after closing.

A well-drafted deed should include provisions on:

Whether the seller warrants that all dues are paid up to closing;
The exact cut-off date for dues;
Whether dues will be prorated;
Who pays penalties and interest;
Who pays special assessments already approved but not yet due;
Who pays move-in, transfer, or administrative fees;
Who obtains condominium corporation clearance;
Who pays utilities before and after turnover;
Whether the buyer assumes any known arrears;
Whether part of the purchase price will be withheld until clearances are issued.

A typical clause may state that the seller shall pay all condominium dues, assessments, utilities, taxes, penalties, and charges accruing up to the date of execution or turnover, while the buyer shall pay those accruing thereafter.

Where the deed is silent, disputes become more likely.

VII. Liability to the Condominium Corporation Versus Liability Between Seller and Buyer

It is important to distinguish two relationships:

The relationship between the seller and buyer; and
The relationship between the condominium corporation and the unit owner.

As between seller and buyer, the deed of sale determines who should ultimately bear the expense.

As against the condominium corporation, however, the corporation may look to the unit, the registered owner, or the recognized owner under its by-laws and records for payment of assessments.

This means that even if the seller promised to pay past dues, the buyer may still face practical problems if the dues remain unpaid, such as:

Refusal to issue clearance;
Refusal to process transfer in the condominium corporation’s records;
Denial of move-in permit;
Denial of renovation permit;
Suspension of certain privileges, subject to law and by-laws;
Accumulation of penalties;
Assertion of a lien over the unit;
Legal action for collection.

The buyer’s remedy against the seller may be reimbursement, damages, enforcement of warranties, or withholding under the deed, but the condominium corporation may still insist on settlement before recognizing full privileges.

VIII. Do Unpaid Condominium Dues Attach to the Unit?

In many condominium projects, unpaid dues are treated as charges attached to the unit. The master deed, declaration of restrictions, by-laws, or house rules may provide that assessments constitute a lien or encumbrance on the unit until paid.

This is one of the most important practical points in Philippine condominium transactions.

Even if the buyer personally did not incur the unpaid dues, the condominium corporation may refuse to issue clearances or may assert rights affecting the unit if arrears remain unsettled.

Therefore, a buyer should never rely solely on the seller’s statement that dues are updated. The buyer should require an official written certificate from the condominium corporation or property management office showing that the unit has no outstanding dues, assessments, penalties, utilities, or other charges as of a specific date.

IX. The Importance of a Certificate of No Outstanding Balance

Before closing, the buyer should require the seller to obtain a document from the condominium corporation or property manager, commonly called:

Certificate of No Outstanding Balance;
Certificate of No Delinquency;
Condominium Dues Clearance;
Statement of Account;
Management Clearance;
Certificate of Updated Dues.

This document should ideally state:

The unit number;
The parking slot number, if any;
The name of the registered owner;
The billing period covered;
The amount of unpaid condominium dues, if any;
The amount of unpaid special assessments, if any;
Penalties or interest, if any;
Utility charges, if billed through the corporation;
Move-out or renovation charges, if any;
Confirmation that the account is current up to a stated date.

The date is important. A clearance issued on March 1 may not cover dues billed on March 15 or April 1. The deed should therefore say who pays charges after the clearance date and before turnover.

X. Proration of Condominium Dues

Proration is the fair allocation of dues between seller and buyer based on the number of days each party owned, possessed, or controlled the unit during the billing period.

For example, if monthly condominium dues are ₱9,000 and the sale closes on the 10th day of a 30-day month, the parties may agree that:

Seller pays dues for days 1 to 10;
Buyer pays dues for days 11 to 30.

The parties may instead agree on a different cut-off, such as the date of turnover, full payment, or registration.

Proration should be expressly written into the deed, closing statement, or separate undertaking. Otherwise, the property manager may bill one party for the whole month, leaving the parties to settle the allocation privately.

XI. Special Assessments

Special assessments are separate from regular monthly dues. They are imposed for extraordinary expenses, such as:

Major elevator replacement;
Roof or façade repair;
Waterproofing;
Fire safety upgrades;
Legal expenses;
Insurance deficiency;
Emergency repairs;
Capital improvements;
Replenishment of reserve funds;
Government compliance expenses.

Special assessments can cause disputes because they may be approved before the sale but payable after the sale, or discovered by the buyer only after closing.

A useful legal distinction is:

Assessment approved and billed before closing — usually for the seller, unless buyer assumed it.
Assessment approved before closing but payable after closing — depends on deed language.
Assessment approved after closing but based on pre-closing conditions — often disputed; deed should allocate risk.
Assessment imposed after buyer takes ownership — generally for the buyer.

The safest rule in drafting is to identify all existing, pending, and board-approved special assessments before closing and state who pays them.

XII. Penalties, Interest, and Collection Charges

Condominium corporations commonly impose penalties, interest, surcharges, or collection fees on unpaid dues.

As a matter of fairness, penalties caused by the seller’s failure to pay pre-sale dues should be borne by the seller. Penalties caused by the buyer’s failure to pay post-sale dues should be borne by the buyer.

However, if the buyer closes without checking arrears and the condominium corporation later demands payment, the buyer may have to pay first to protect the unit and then pursue reimbursement from the seller, depending on the deed.

A buyer should therefore require that all penalties and interest be settled before closing, not merely the principal dues.

XIII. Parking Slots and Dues

Many condominium units are sold with parking slots. Parking slots may have separate condominium dues, real property tax, assessments, or maintenance charges.

The buyer should check whether the parking slot is:

Covered by a separate Condominium Certificate of Title;
Merely assigned by contract;
Appurtenant to the unit;
Leased from the developer or condominium corporation;
Subject to separate monthly dues or assessments.

If the sale includes a parking slot, the deed and clearance should expressly include it. A clearance for the residential unit alone may not cover unpaid parking dues.

XIV. Utility Charges Billed Through the Condominium Corporation

Some condominium corporations or property managers bill utilities or related charges, such as:

Water;
Chilled water or air-conditioning charges;
Generator charges;
LPG or gas;
Cable or internet infrastructure charges;
Garbage fees;
Septic or wastewater charges;
Common-area electricity allocation;
Individual submeter charges.

These should also be allocated between seller and buyer. Meter readings should be taken on the turnover date. The deed should state that the seller pays all consumption before turnover and the buyer pays all consumption after turnover.

XV. Real Property Tax and Condominium Dues

Real property tax is different from condominium dues. Real property tax is imposed by the local government, while condominium dues are imposed by the condominium corporation.

However, condominium corporations may collect from unit owners their proportionate share in real property tax on common areas or other common property. This may appear as part of dues or as a separate assessment.

As between seller and buyer, real property tax is usually prorated based on the closing date unless otherwise agreed. The same logic may apply to common-area tax assessments billed through the condominium corporation.

XVI. The Buyer’s Due Diligence Checklist

Before buying a condominium unit, the buyer should obtain and review the following:

Latest Statement of Account from the condominium corporation;
Certificate of No Outstanding Balance;
List of pending or approved special assessments;
Copy of the condominium corporation’s by-laws;
House rules and regulations;
Master deed and declaration of restrictions;
Board resolutions affecting dues or assessments, where available;
Current monthly dues rate;
Parking dues, if applicable;
Utility billing arrangements;
Move-in fees;
Transfer fees;
Renovation bond and contractor rules;
Insurance assessments;
Reserve fund requirements;
Penalties and interest policy;
Rules on leasing, pets, short-term rentals, commercial use, and occupants;
Any pending collection case involving the unit;
Any notice of lien, delinquency, or restriction;
Confirmation that the seller is recognized as the owner in the corporation’s records.

This due diligence is especially important in secondary market sales, foreclosures, estate sales, and sales by absentee owners.

XVII. Seller’s Warranties

A seller should ideally warrant in the deed that:

The seller has paid all condominium dues up to the agreed cut-off date;
There are no unpaid assessments, penalties, or charges except those disclosed;
There are no pending collection cases involving the unit;
There are no liens or claims by the condominium corporation, except those disclosed;
The seller will indemnify the buyer for undisclosed pre-closing obligations;
The seller will cooperate in securing clearances and transfer of records.

A buyer should avoid vague clauses such as “the buyer accepts the property as is” unless the buyer has already verified the financial standing of the unit with the property management office. An “as is” clause may be used by the seller to argue that the buyer accepted the risk of unpaid charges.

XVIII. Buyer’s Assumption of Dues

A buyer may validly assume unpaid condominium dues if this is expressly agreed. This may happen when:

The purchase price is discounted because of arrears;
The seller lacks funds to settle dues before closing;
The buyer wants to close quickly;
The condominium corporation requires immediate payment before move-in;
The buyer purchases the unit through foreclosure or auction.

If the buyer assumes arrears, the agreement should clearly state:

The exact amount assumed;
The billing period covered;
Whether penalties are included;
Whether special assessments are included;
Whether the assumed amount will be deducted from the purchase price;
Whether the buyer pays directly to the condominium corporation;
Whether the seller remains liable for undisclosed amounts.

Without a clear assumption clause, the seller should not assume that the buyer has taken over past dues merely because the buyer purchased the unit.

XIX. Foreclosed Condominium Units

Foreclosed condominium units require special caution. Banks and other sellers of foreclosed properties often sell on an “as is, where is” basis. This may mean the buyer assumes the risk of unpaid condominium dues, taxes, occupants, physical defects, and documentation issues.

In foreclosed units, the buyer should verify:

Whether the bank paid condominium dues during its ownership;
Whether the previous owner had arrears before foreclosure;
Whether the condominium corporation recognizes the foreclosure buyer;
Whether there is a lien or pending case;
Whether penalties have accumulated;
Whether the unit is occupied;
Whether move-in or renovation will be blocked until arrears are settled.

A buyer of a foreclosed condominium unit should not rely only on the bank’s title. The condominium corporation’s account records are equally important for practical possession and use.

XX. Sale by Developer Versus Resale by Private Owner

1. Developer sale

In a sale by the developer, the contract to sell or deed of sale usually states when the buyer starts paying association dues or condominium dues. This is often tied to:

Turnover date;
Notice of turnover;
Deemed acceptance of the unit;
Completion of construction;
Availability of the unit for occupancy;
Execution of deed of sale;
Full payment.

Developers commonly require buyers to pay dues from the date the unit is made available for turnover, even if the buyer delays acceptance. The enforceability of this arrangement depends on the contract, notices, and circumstances.

2. Resale by private owner

In a resale, the issue is usually between seller and buyer. The seller is expected to settle dues up to the agreed cut-off date and obtain clearance. The buyer takes over from the agreed date.

Private resales should always include a clear closing statement showing the allocation of dues, taxes, utilities, and assessments.

XXI. Turnover Without Title Transfer

Sometimes a buyer takes possession before the title is transferred. This may happen because title transfer takes weeks or months due to BIR processing, Registry of Deeds registration, local tax clearances, or bank financing.

In such cases, the buyer may already be responsible for dues if the deed or turnover document says so. The condominium corporation may still bill the seller as the registered owner, but the seller may seek reimbursement from the buyer for post-turnover charges.

The practical solution is for the parties to notify the property management office in writing and provide the deed or turnover agreement, so that billing can be addressed properly.

XXII. Delayed Transfer of Condominium Corporation Records

Even after the deed is signed, the condominium corporation may delay updating its records until all requirements are submitted. During this period:

Bills may remain in the seller’s name;
The buyer may be unable to vote in condominium corporation matters;
The buyer may have difficulty securing permits;
The seller may continue receiving notices;
Disputes may arise over who should communicate with management.

The buyer should complete the transfer requirements promptly. The seller should cooperate by signing forms, issuing authorizations, and providing documents required under the by-laws.

XXIII. Rights of the Condominium Corporation for Non-Payment

Depending on the by-laws, master deed, and applicable law, the condominium corporation may have remedies for unpaid dues, including:

Sending demand letters;
Imposing penalties and interest;
Suspending certain privileges, subject to legal limits;
Denying non-essential permits or services;
Filing a collection case;
Asserting a lien if authorized by the governing documents;
Participating in legal remedies affecting the unit;
Refusing clearance for sale or transfer until payment.

The corporation should still act within the law, its by-laws, and principles of due process. It should not impose arbitrary, excessive, discriminatory, or unlawful measures.

XXIV. Can the Condominium Corporation Refuse to Recognize the Buyer?

The condominium corporation may require documentary compliance before recognizing a buyer in its records. This is common and generally reasonable.

It may require:

Proof of sale;
Proof of title transfer;
Payment of transfer fees;
Settlement of arrears;
Submission of information sheets;
Compliance with house rules;
Board approval where required by governing documents.

However, the corporation should not unreasonably withhold recognition when the buyer has validly acquired the unit and complied with legitimate requirements.

If arrears exist, the corporation may insist on payment or settlement before issuing clearance or updating privileges, especially if the by-laws make dues a charge against the unit.

XXV. Can the Buyer Refuse to Pay Past Dues?

As against the seller, the buyer may refuse to bear past dues unless the buyer expressly assumed them.

As against the condominium corporation, the matter is more practical and document-dependent. If the unpaid dues are treated as a lien or charge on the unit under the condominium documents, the buyer may have to resolve the arrears to obtain full recognition, clearance, or use of facilities.

The buyer may then pursue reimbursement from the seller if the seller warranted that dues were paid or agreed to shoulder pre-closing obligations.

Thus, a buyer’s strongest protection is not refusal after the fact, but due diligence before closing.

XXVI. Can the Seller Be Sued After the Sale?

Yes. If the seller agreed to pay pre-closing dues and failed to do so, the buyer may sue or claim reimbursement, depending on the amount and circumstances.

Possible causes of action include:

Breach of contract;
Enforcement of warranties;
Reimbursement;
Damages;
Misrepresentation, if the seller falsely claimed that dues were paid;
Specific performance, if the seller undertook to secure clearance.

The condominium corporation may also pursue the person recognized as liable under its records and by-laws, which may include the seller for periods before transfer.

XXVII. Effect of “As Is, Where Is” Clauses

An “as is, where is” clause generally means the buyer accepts the property in its existing condition. In real estate transactions, this may cover physical condition, occupancy, title issues disclosed or discoverable, and sometimes unpaid charges.

However, such a clause does not automatically excuse fraud, bad faith, or express warranties. If the seller specifically warranted that condominium dues were fully paid, the seller may still be liable even if the deed also contains general “as is” language.

The safer approach is to avoid relying on general clauses. The deed should expressly state whether the buyer is assuming unpaid condominium dues.

XXVIII. Condominium Dues During the Period Between Contract to Sell and Deed of Sale

In some transactions, the buyer signs a contract to sell first and receives the deed of absolute sale only after full payment.

During this interim period, responsibility for dues depends on the contract.

Common arrangements include:

Buyer pays dues from turnover, even before title transfer;
Seller pays dues until full payment;
Developer or seller pays dues until notice of turnover;
Buyer pays dues once the unit is ready for occupancy;
Dues are included in amortization or separately billed.

The contract to sell must be reviewed carefully. Buyers often assume that no dues are payable until title transfer, but many contracts impose dues earlier, especially upon turnover or deemed acceptance.

XXIX. Dues and Leased Condominium Units

If the unit is leased after purchase, the condominium corporation usually continues to treat the owner as primarily responsible for dues, even if the lease contract requires the tenant to pay them.

As between owner and tenant, the lease may provide that the tenant pays condominium dues. But as against the condominium corporation, the owner normally remains responsible because dues arise from ownership.

Thus, a buyer who leases out the unit should not assume that non-payment by the tenant excuses the owner. The owner may pay the dues and recover from the tenant under the lease.

XXX. Dues, Membership Rights, and Voting

The buyer’s obligation to pay dues is connected with the buyer’s rights in the condominium corporation.

A recognized owner or member may have rights such as:

Voting in membership meetings;
Receiving notices;
Inspecting certain corporate records, subject to law;
Using common facilities;
Participating in governance;
Being elected to the board, if qualified;
Receiving updates on assessments and projects.

However, delinquency may affect some privileges, subject to the by-laws and applicable law. For example, a delinquent member may be barred from certain privileges or may face restrictions consistent with the condominium documents.

XXXI. Prescriptive Periods and Collection

Claims for unpaid condominium dues are generally treated as civil obligations. The applicable prescriptive period may depend on the nature of the obligation, whether it is based on a written contract, by-laws, account statement, assessment, or other source.

A condominium corporation should not sleep on its rights. It should issue timely billings, statements, and demand letters. Unit owners should also dispute questionable charges promptly and in writing.

Silence or delay may complicate proof, but it does not automatically erase valid obligations unless prescription, waiver, laches, payment, settlement, or other defenses apply.

XXXII. Disputing Condominium Dues

A buyer or owner who disputes dues should avoid simply ignoring the billing. The better approach is to:

Request a detailed statement of account;
Ask for the board resolution or basis of the assessment;
Review the by-laws and master deed;
Confirm the billing period;
Separate pre-sale from post-sale charges;
Pay undisputed amounts;
Put objections in writing;
Ask for a meeting with the property manager or board;
Preserve receipts, emails, notices, and turnover documents;
Consider mediation or legal action if necessary.

Non-payment of all charges, including undisputed ones, may expose the owner to penalties and enforcement action.

XXXIII. Common Dispute Scenarios

1. Seller says dues were paid, but buyer later receives arrears

The buyer should request the statement of account and compare it with the deed. If the arrears cover the seller’s period, the buyer may demand payment or reimbursement from the seller.

2. Property manager refuses move-in because of seller’s unpaid dues

The buyer may need to settle the amount to proceed, especially if the corporation treats the charges as attached to the unit. The buyer may then seek reimbursement from the seller.

3. Dues were billed after sale but covered a period before sale

Responsibility should follow the period covered, unless the deed says otherwise. If the billing covers pre-sale occupancy, seller should generally pay.

4. Special assessment was approved before sale but collected after sale

This depends heavily on the deed. If silent, the parties may dispute whether liability attaches upon approval, billing, due date, or ownership at collection date.

5. Buyer delays title transfer and seller continues receiving bills

If the buyer already took possession and agreed to pay dues from turnover, the buyer should pay even if bills remain in the seller’s name.

6. Seller remains in possession after deed of sale

If the seller continues occupying the unit after sale, the seller may be responsible for dues during continued occupancy, unless the parties agreed otherwise.

7. Buyer buys through bank financing and closing is delayed

The parties should specify who pays dues during the delay. Usually, the seller pays until turnover or full payment, but this should be written.

XXXIV. Practical Allocation Rules

The following practical rules are commonly used:

Situation	Usual Responsible Party
Dues before sale or turnover	Seller
Dues after sale or turnover	Buyer
Penalties caused by seller’s late payment	Seller
Penalties caused by buyer’s late payment	Buyer
Utilities before turnover	Seller
Utilities after turnover	Buyer
Special assessment approved and due before sale	Seller
Special assessment imposed after sale	Buyer
Transfer fee charged by condominium corporation	Depends on agreement
Move-in fee	Usually buyer
Move-out fee	Usually seller or outgoing occupant
Renovation bond after buyer takes possession	Buyer
Clearance for sale	Usually seller, unless agreed otherwise
Undisclosed arrears	Usually seller, subject to proof and deed terms

These are practical norms, not automatic rules in every case. The deed, by-laws, and facts remain controlling.

XXXV. Recommended Contract Clauses

A condominium sale should include clauses similar to the following concepts:

1. Seller’s obligation clause

The seller shall pay all condominium dues, assessments, utilities, penalties, charges, and other obligations relating to the unit and parking slot accruing up to the agreed cut-off date.

2. Buyer’s obligation clause

The buyer shall pay all condominium dues, assessments, utilities, and charges accruing after the agreed cut-off date.

3. Proration clause

Regular dues, real property taxes, and similar recurring charges shall be prorated as of the date of turnover or closing.

4. Special assessment clause

All special assessments approved, billed, or due before closing shall be for the account of the seller, while those approved after closing shall be for the account of the buyer, unless specifically listed otherwise.

5. Warranty clause

The seller warrants that there are no unpaid condominium dues, assessments, penalties, utilities, liens, or claims affecting the unit, except those expressly disclosed in writing.

6. Indemnity clause

The seller shall indemnify and hold the buyer free from any pre-closing condominium obligations, including penalties and legal costs arising from non-payment.

7. Clearance clause

The seller shall secure and deliver a certificate of no outstanding balance from the condominium corporation or property manager before closing.

8. Holdback clause

A portion of the purchase price may be withheld until all condominium clearances and account statements are obtained.

XXXVI. Best Practices for Buyers

A buyer should:

Require a current statement of account;
Require a certificate of no outstanding balance;
Verify directly with the property management office;
Check whether there are special assessments;
Ask whether there are pending increases in dues;
Confirm whether the parking slot has separate dues;
Review the master deed, by-laws, and house rules;
Include express clauses in the deed;
Withhold part of the price if clearance is pending;
Take meter readings on turnover;
Notify the condominium corporation of the sale;
Transfer records promptly;
Keep all receipts and clearances.

The buyer should not release the full purchase price without confirming the status of dues, unless the buyer knowingly assumes the risk.

XXXVII. Best Practices for Sellers

A seller should:

Settle all dues before listing or closing;
Obtain a certificate of no outstanding balance;
Disclose special assessments;
Provide copies of recent billing statements;
Clarify the cut-off date in the deed;
Pay move-out fees or charges caused by the seller;
Cooperate with the buyer’s transfer requirements;
Keep proof of payment;
Notify the property manager of the sale;
Avoid broad promises unless all accounts are verified.

A seller who fails to settle dues may delay the sale, reduce buyer confidence, or face claims after closing.

XXXVIII. Best Practices for Condominium Corporations

A condominium corporation or property manager should:

Maintain accurate account records;
Issue clear statements of account;
Identify charges by billing period;
Separate regular dues, penalties, utilities, and special assessments;
Provide written clearances when appropriate;
State the validity period of clearances;
Update ownership records upon proper documentation;
Notify both buyer and seller of pending requirements;
Enforce dues uniformly;
Avoid arbitrary denial of rights beyond what the by-laws allow.

Clear documentation reduces disputes and improves collectability.

XXXIX. Who Pays If the Deed Is Silent?

If the deed is silent, the likely approach is to allocate dues based on fairness, ownership, possession, and the period when the charges accrued.

Generally:

Charges that accrued before the buyer acquired ownership or possession should be for the seller.
Charges that accrued after the buyer acquired ownership or possession should be for the buyer.
Charges tied to the seller’s occupancy or use should be for the seller.
Charges tied to the buyer’s occupancy or use should be for the buyer.
Ambiguous special assessments may require interpretation of the by-laws, board resolution, billing date, due date, and sale documents.

Where the condominium corporation’s documents make unpaid dues a lien or charge on the unit, the buyer may have to deal with the corporation first and pursue the seller later.

XL. Remedies of the Buyer

If the buyer discovers unpaid pre-sale condominium dues after purchase, possible remedies include:

Demand letter to seller;
Reimbursement claim;
Enforcement of deed warranties;
Claim against escrow or holdback, if any;
Small claims action, if within jurisdictional limits and appropriate;
Ordinary civil action for breach of contract or damages;
Complaint based on fraud or misrepresentation, if supported by facts;
Negotiated settlement;
Payment under protest to the condominium corporation, followed by recovery from seller.

The buyer should preserve evidence, including the deed, statement of account, clearance, receipts, emails, turnover documents, and demand letters.

XLI. Remedies of the Seller

If the buyer agreed to pay dues after turnover but failed to do so, and the condominium corporation continues billing the seller, the seller may:

Demand reimbursement from the buyer;
Notify the condominium corporation of the sale and turnover;
Provide documents showing buyer’s assumption;
Pay to avoid penalties and seek recovery;
Enforce the deed or turnover agreement;
Claim damages if the buyer’s non-payment caused loss.

The seller should not assume that the property manager automatically knows or recognizes the buyer. Formal written notice is important.

XLII. Remedies of the Condominium Corporation

The condominium corporation may:

Bill the owner or recognized account holder;
Issue demand letters;
Impose penalties authorized by the governing documents;
Require settlement before issuance of clearance;
File collection proceedings;
Assert rights over the unit if a lien is authorized;
Enforce reasonable restrictions under the by-laws;
Require compliance before transfer of records.

The corporation should make sure that the assessment is validly imposed, properly documented, uniformly enforced, and supported by the condominium documents.

XLIII. Key Distinctions

1. Ownership is not always the same as possession

A buyer may own the unit but not yet possess it, or may possess it before title transfer. The deed should resolve who pays during this transition.

2. Billing name is not always conclusive

The bill may remain in the seller’s name even after the buyer has assumed dues. Conversely, the buyer may be billed for amounts that actually accrued during the seller’s period.

3. Clearance is not permanent unless stated

A clearance is valid only as of its stated date. New charges may accrue after the clearance date.

4. Regular dues differ from special assessments

Special assessments require special attention because they may arise from board action taken before closing but payable afterward.

5. Personal liability differs from unit-based burden

The seller may be personally liable under the deed, but the buyer may still need to clear the unit’s account with the condominium corporation.

XLIV. Sample Legal Analysis

Suppose Seller sells a condominium unit to Buyer on June 15. Monthly dues are ₱10,000. Seller has unpaid dues from March, April, and May. June dues are unpaid. Buyer takes possession on June 16.

Unless the deed says otherwise:

Seller should pay March, April, and May dues.
June dues should be prorated.
Seller should pay June 1 to 15.
Buyer should pay June 16 to 30.
Seller should pay penalties caused by non-payment before June 16.
Buyer should pay dues from July onward.
If the condominium corporation refuses move-in because March to May dues are unpaid, Buyer may need to settle the arrears to proceed, then seek reimbursement from Seller.

This example shows why a certificate of no outstanding balance and a clear proration clause are essential.

XLV. Conclusion

In Philippine condominium transactions, the party who pays condominium corporation dues after purchase depends primarily on the parties’ agreement, the date of turnover or ownership transfer, and the condominium corporation’s governing documents.

The ordinary rule is straightforward: the seller pays dues and assessments that accrued before the sale or turnover, and the buyer pays those that accrue afterward. But complications arise when there are unpaid arrears, special assessments, delayed title transfers, unclear turnover dates, or condominium by-laws that treat unpaid dues as a lien or charge on the unit.

For buyers, the most important protection is due diligence before closing: obtain a written statement of account, require a certificate of no outstanding balance, check for special assessments, and include clear contractual clauses. For sellers, the best protection is to settle all dues, disclose all charges, and clearly define the cut-off date. For condominium corporations, accurate records and consistent enforcement are essential.

The legal and practical lesson is simple: condominium dues should never be treated as an afterthought in a condominium sale. They are part of the financial burden of ownership, and unresolved dues can delay transfer, impair possession, restrict privileges, and lead to litigation.