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Free Legal Advice Philippines » FREE LEGAL ADVICE » PROPERTY » Home Owner Association automatic membership

Home Owner Association automatic membership

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jbayla


Arresto Menor

I am currently working abroad and 5 years ago I bought a lot in a subdivision in Philippines with the help of SPA given to my father in law. I made a one time payment, got the deed of absolute sale and the TCTs already. Just last week I was surprised to receive a letter from HOA of the subdivision informing me that I became a  member automatically and have not paid dues after I owned the lot. I also found that in deed of sale there was a provision for the automatic membership. I would like to ask for legality on this matter considering the regulation indicated in RA 9904 section 12 a which prohibits anybody from forcing the homeowner to be member of association. Can somebody with good knowledge or similar experience share his/her thoughts on this? I will appreciate your reply.



Last edited by jbayla on Tue Jun 30, 2015 5:24 pm; edited 3 times in total (Reason for editing : typo error)

isellnuts


Arresto Menor

jbayla wrote:I am currently working abroad and 5 years ago I bought a lot in a subdivision in Philippines with the help of SPA given to my father in law. I made a one time payment, got the deed of absolute sale and the TCTs already. Just last week I was surprised to receive a letter from HOA of the subdivision informing me that I became a  member automatically and have not paid dues after I owned the lot. I also found that in deed of sale there was a provision for the automatic membership. I would like to ask for legality on this matter considering the regulation indicated in RA 9904 section 12 a which prohibits anybody from forcing the homeowner to be member of association. Can somebody with good knowledge or similar experience share his/her thoughts on this? I will appreciate your reply.

The important thing you must find out is if your HOA was duly registered with the Home and Land Regulatory Board (HLURB). Demand to have a look with certification issued by the HLURB if not your HOA is illegally conducting its business within your village.

Ask to have a copy of your HOA constitution and by-laws every member is entitled to have a copy. Any action undertaken by the HOA board must be presented to the general membership for ratification. Majority of the members must ratify (50%+1) before it becomes effective and implemented.

Read the Implementing Rules and Regulation (IRR) of R.A. No. 9904 for your satisfaction.

RULE 3
MEMBERSHIP IN THE ASSOCIATION
Section 9. Membership. – Unless otherwise provided in the Contract to sell, deed of sale, or other instrument of conveyance, or annotated in the title of the property, membership is optional.

jbayla


Arresto Menor

To: Isellnuts

First, thank you for sharing your thoughts. Those are well noted and appreciated.
I would like to ask just one more question.
It is written on the deed of sale that "from the date of Registration of HOA or the date of contract to sell, the buyer automatically becomes member of the HOA and shall pay the dues and assessments duly levied and impose. In case of non payment, the dues and assessment shall constitute as a lien on the property which lien shall be annotated on the title of the property. The lien may be enforced by seller or the HOA through judicial and/or extra -judicial foreclosure of the property, without prejudice to such other remedies which the seller and the HOA may avail by virtue of this deed or the law. For said purpose, the buyer hereby irrevocably grants the Seller or the HOA special power and authority to extra-judicial foreclose the property"

It was a huge mistake overlooking these conditions in the deed of sale. Hence, my question is there any law that protects the buyer and prevents the seller or HOA from using the special power stated above?

isellnuts


Arresto Menor

jbayla wrote:To: Isellnuts

First, thank you for sharing your thoughts. Those are well noted and appreciated.
I would like to ask just one more question.
It is written on the deed of sale that "from the date of Registration of HOA or the date of contract to sell, the buyer automatically becomes member of the HOA and shall pay the dues and assessments duly levied and impose. In case of non payment, the dues and assessment shall constitute as a lien on the property which lien shall be annotated on the title of the property. The lien may be enforced by seller or the HOA through judicial and/or extra -judicial foreclosure of the property, without prejudice to such other remedies which the seller and the HOA may avail by virtue of this deed or the law. For said purpose, the buyer hereby irrevocably grants the Seller or the HOA special power and authority to extra-judicial foreclose the property"

It was a huge mistake overlooking these conditions in the deed of sale. Hence, my question is there any law that protects the buyer and prevents the seller or HOA from using the special power stated above?

The only laws that protects condominium and subdivision buyers are the Maceda law and PD 957 but they don't deal with arrears of HOA dues.

RULE 9  THE HOMEOWNERS ASSOCIATION

Section 49. Rights and Powers of the Association. – An association shall have the rights and powers:

f. Subject to consultation with and the approval of a simple majority of the association members, acquire, hold, encumber and convey in its own name any right, title to or interest in real or personal property: Provided, that such approval of a simple majority of the association members shall not be required for the acquisition, holding, encumbrance and conveyance of personal properties in amounts not exceeding tenbpercent (10%) of the association's cash holdings for its use in the course of its normal operations;

You can't evade the HOA dues since it is annotated in the contract to sell and in the TCT. HOA is not in the business of foreclosing properties due to non payment of HOA dues the only thing HOA can do is to declare you as delinquent member and as such if you are staying inside the subdivision they won't allow you to bring in your car and other privilege is suspended. In the same manner you can't sell your property unless you pay your HOA dues in full because only then the lien in the TCT will be cleared.

Some subdivision or villages charges HOA monthly due by the area of the lot. Ayala Alabang in muntinlupa charges P23/sqm some as low as P5/sqm. I know a subdivision charges a flat  rate of P200/mo.
it depends where the subdivision is located.

Again, check when was your village HOA registered with the HLURB. The magna carta for Homeowners Associations was signed into law 2010 by GMA and its IRR was promulgated June 2011 only within this time frame your HOA can legally imposed its authority to collect mnthly dues among its members. If your HOA is giving you a hard time better consult an attorney.

This is just my opinion and can never be used as fact in any case.

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