One of the requirements to process the Transfer of the Condominium of Title (CCT) is securing a Management Certificate or Certificate of Management (COM) from the Condo Association.
Basically, it is a legal clearance mandated by the Registry of Deeds Office (RDO) for the purpose of verifying any outstanding debts and dues before the Transfer of the Condominium Title and for the purpose of ensuring that the 60% Filipino ownership of the condominium is still intact.
What is a Certificate of Management (COM)
ACertificate of Management (COM)is a legal document duly signed and released by the Condominium Association having jurisdiction over your condo unit. As a seller, the Registry of Deeds Office (RDO) shall require you to obtain a Certificate of Management (COM) that will serve as clearance from the Condominium Administration.
Why is it Important?
As one of the obligations of a condominium unit seller, the acquisition of the Certificate of Management (COM) serves as a significant basis to prove that all outstanding accounts with the Condominium Corporation are already reckoned and paid for before the Transfer of the Certificate of Condominium Title (CCT).
The reason as to why the seller needs to secure a Certificate of Management (COM) is because it will benefit both the seller and the buyer when processing the Transfer of Certificate of Condominium Title (CCT) – this is for their own protection from unsettled incumbrances acquired before the Transfer.
Furthermore, it is a vital factor that both the Condominium Association, the buyer and the seller are aware of any pending or non-exhausted dues before the process of transfer – since the COM verifies the current status of the unit for sale on whether or not it is a Clean Title.
Foremost, this is to note that the issuance of the Certificate of Management (COM) is mandated prior to any conveyance of the condominium or part thereof underSection 18 of the Condominium Act (Republic Act 4726),to wit:
“…Sec. 18.Upon registration of an instrument conveying a condominium, the Register of Deed shall, upon payment of the proper fees, enter and annotate the conveyance on the certificate of title covering the land included within the project and the transferee shall be entitled to the issuance of a “condominium owners” copy of the pertinent portion of such certificate of title. Said “Condominium Owner’s” copy need not reproduce the ownership status of other condominiums in the project. A copy of the description of land, a brief description of the condominium conveyed, name and personal circumstances of the condominium owner would be sufficient for purposes of the “condominium owners” copy of the certificate of title.No conveyance of condominium or part thereof, subsequent to the original conveyance thereof from the owner of the project, shall be registered unless accompanied by a certificate of the management body of the project that such conveyance is in accordance with the provisions of the declaration of restrictions of such project.… “ (Sec. 18, Condominium Act)
Likewise, the COM is necessary since in this document the condominium corporation confirms that the ownership of the condominium corporation is still held by Filipinos who are holding a minimum of 60% of the capital stock of the said corporation. This is based onSection 5 of the Condominium Act (Republic Act 4726):
“…Sec. 5. Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall include the transfer or conveyance of the undivided interests in the common areas or, in a proper case, the membership or shareholdings in the condominium corporation: Provided, however, That where the common areas in the condominium project are owned by the owners of separate units as co-owners thereof,no condominium unit therein shall be conveyed or transferred to persons other than Filipino citizens, or corporations at least sixty percent of the capital stock of which belong to Filipino citizens, except in cases of hereditary succession. Where the common areas in a condominium project are held by a corporation, no transfer or conveyance of a unit shall be valid if the concomitant transfer of the appurtenant membership or stockholding in the corporation will cause the alien interest in such corporation to exceed the limits imposed by existing laws….” (Section 5, Condominium Act)
This is tied to the fact that most condominium corporations own land where the condominium sits, and as such the condominium corporation must be a Filipino corporation able to own land.
How to Secure a Certificate of Management (COM)?
To secure a COM from the Condominium Association or Administration, one must:
(a) Write and submit a written request for the issuance of a Certificate of Management clearance, to be filed with the Administrator of the Condominium Association.
(b) A photocopy of the Deed of Sale of the Condominium Unit – to which the seller must attach to the written request.
The issuance of a Certificate of Management (COM) for the Transfer of Certificate of Condominium Title (CCT) shall only be administered by the Condominium Association or Administration. A verification process shall be done on whether or not the seller has exhausted all dues and unpaid balances attached to the condominium unit for sale.
Need further information and assistance in obtaining Certificate of Management? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+63) 917 149 2337 or send an email to info@filedocsphil.com for more information.
