Master Deed Rules if legal Not the current edict

Master Deed Rules, if legal, Not the current edict

The Master Deed which may be amended, cannot be changed by a rule created by unelected Directors assigned to a committee.  The circular at bottom needs to be compared word for word to the Master Deed and evaluated.  Section 7 a and b are the sections pertaining the new edict.  It is always best to start from the source and then compare to the distorted version.

from the Soho Central Condominium Corporation Master Deed:

Section 7.  DISPOSITION, MORTGAGE AND/OR LEASE OF UNITS

a)  The Units may be acquired and leased or disposed of subject to the provisions of Republic Act No. 4726, otherwise known as the Condominium Act and other applicable laws and regulations that the Condominium Corporation shall validly promulgate, from time to time.  No transfer or conveyance of a Unit shall be valid if the concomitant transfer of the pertinent membership in the Condominium Corporation will cause the alien interest in such Corporation to exceed the limits imposed by existing laws;

b)  Except in case of transfer by hereditary succession, no Unit owner or purchaser may effectively transfer, sell or dispose of his Unit to any person or entity without first offering the same to the existing Unit owners and purchasers of the project through the Condominium Corporation.  The Unit owner or purchaser intending to sell or dispose of his Unit shall give to the Condominium Corporation a written notice of such intention, including therein the price and such terms and conditions of the sale.  Within (5) days from receipt of the notice, the Condominium Corporation shall furnish a copy thereof to all existing Unit owners/purchasers.  Any Unit owners interested in purchasing the Unit under the terms as provided in the notice shall, within ten (10) days from his receipt of the notice, tender his written acceptance thereof to the Condominium Corporation.  In case there are two (2) or more Unit owners/purchasers who tendered their acceptance, the selling Unit owner/purchasers shall have the option to choose the buyer from among those who tendered their acceptance.

If within the ten (10) day period as provided, the Condominium Corporation fails to receive any acceptance from any of the Unit owners/purchasers, the selling Unit owner/purchaser may proceed to offer his Unit to any person or entity under the same price, terms and conditions as contained in the notice or even better.  The same procedure shall be observed in the event the selling Unit owner/purchaser is unable to sell his Unit and is forced to offer the same at a lower price and/or substantially modified terms and conditions.

The foregoing provision on transfer or sale of Unit shall not be applicable to the transfer and sale of Units by the DECLARANTS."

You will note changes in the edict below from the wording in the Master Deed above.  To start, Number 1 has changed "written notice" to "formal written offer."  This is not appropriate to change wording from such an important document.  They then compound this problem by stating that the offer be submitted to the "Property Management Office (PMO)."  The Master Deed states that the notice be given to the "Condominium Corporation."

Number 2 violates the Master Deed which states "Within (5) days from receipt of the notice, the Condominium Corporation shall furnish a copy thereof to all existing Unit owners/purchasers."  The limitation placed in the edict is contrary to the Master Deed.

Number 3 also has a violation of the Master Deed.  The Master Deed states "Any Unit owners interested in purchasing the Unit under the terms as provided in the notice shall, within ten (10) days from his receipt of the notice, tender his written acceptance thereof to the Condominium Corporation."  No mention is made as in the edict "...or at price, terms or conditions better than those stated in the written offer..."  I would also exercise extreme caution with their use of the word "compelled" when the Master Deed uses words such as "intending" and "tender."  It is not wise to be legally creative in such matters.

Number 4 also changes the manner upon which the Unit Owner may make a decision.  The Master Deed states "... the selling Unit owner/purchasers shall have the option to choose the buyer from among those who tendered their acceptance."  This is changed in the edict to "... it is the prerogative of the selling unit owner to select between or among said interested unit owners."

Number 5 contains several problems.  Besides the change of wording from "... fails to receive any acceptance from any of the Unit owners/purchasers ..." in the Master Deed to "... no unit owner signifies his intention to purchase the unit offered for sale ..." in the edict, the ten (10) days waiting period in the Master Deed shall be "receipt of the notice" and has nothing to do with a bulletin board but does make specific mention to the "furnish (of) a copy thereof to all existing Unit owners/purchasers."  No certification from the PMO is required or stated in the Master Deed.  What is stated in the Master Deed to this respect may be read above in the second paragraph under b).

Number 6 uses the "formal" wording contrary to "written notice."  There is also the obvious and another curious change.  The Master Deed states "The same procedure shall be observed in the event the selling Unit owner/purchaser is unable to sell his Unit and is forced to offer the same at a lower price and/or substantially modified terms and conditions."  The edict deletes the phrase " substantially modified" before terms or conditions.

This edict is not information or guidance acceptable when compared to the Master Deed.

(Click here for a .pdf of the edict above.)

Further to the comments above, there are some additional concerns such as Unit Owners who sold units since turnover but never followed the Master Deed or told to.  Why was this ignored by all those individuals and entities managing the SCCC?  In fact, could not those now selling sue all those involved since they are now compelled to do what others did not and now suffer?  Could not any Unit Owner sue since the Master Deed was ignored?  True, the clause in the Master Deed is not even enforceable but I will leave that for the Annual Meeting or government hearing or court where I would explain the serious problem with the requirement.

What of a member of the Board who was selling their unit at one time?  Was that transaction ever made known according to the Master Deed?  I had been told someone who is either a friend or friendly with a Director has just sold a unit before this edict.  Could that not be brought up in various venues?

The Master Deed was not given to all buyers!  This requirement was not in the contract to sell!  So why were the documents kept from buyers?  Armando Ang, author of Guide to Homeownership, is correct.

 

Are all Unit Owners who sold since turnover now liable to being sued?  Do the current Unit Owners from such sales really own their units?