As Unit Owners become automatic share holders of the Condominium Corporation, the Corporation has the privilege of being offered and informed of potential lease or sale of any of the units before it is presented to the general public. The Right of First Refusal is a provision in the MDDR to address this privilege. Specifically Articles 2.15, 2.16, 2.17 of the MDDR governs the Lease and Resale of each of the units in the Townhouse. Highlights of which are as follows:
- “No sale, transfer, assignment, conveyance or disposition shall be made contrary to the provisions of Republic Act No. 4726, as amended and other applicable laws and to the regulations that the Condominium Corporation may validly promulgate from time to time. No transfer or conveyance of the Unit shall be valid if the concomitant transfer of the Condominium Unit shall breach the nationality requirement imposed by law on a corporation owning private land in the Philippines…” (Article 2.15)
- “In the event that a Condominium Unit Owner (the “Selling Owner”) desires to sell or dispose of his/her/its Condominium Unit, the Selling Owner shall be obliged to give prior written notice to the Condominium Corporation and the other Condominium Unit Owners (the “Non-Selling Owners”) of the gross selling price and the other terms and conditions for the sale (the “Selling Notice”). The Condominium Corporation and any of the Non-Selling Owners shall have the right to purchase the Condominium Unit of the Selling Owner on a first-come-first-serve basis within three (3) consecutive months from and after the date of receipt of the Selling Notice by the Condominium Corporation (the “Right of First Refusal”).”
- The Right of First Refusal shall be exercised by giving the Selling Owner a written acceptance of the gross selling price and the other terms and conditions stated in the Selling Notice. Upon receipt by the Selling Owner of the written acceptance, and provided that Article 2.15 hereof, and the relevant provisions of the Condominium Act are duly complied with, a Deed of Absolute Sale of the Condominium Unit shall be executed by the Selling Owner and the buyer.
- If the Right of First Refusal is not exercised after the lapse of three (3) consecutive months from and after the date of receipt by the Condominium Corporation of the Selling Notice, or if the Right of First Refusal is waived in writing by the Condominium Corporation and all of the Non-Selling Owners, the Selling Owner shall be free to sell the Condominium Unit to any third party purchaser in accordance with the terms of (i) the Selling Notice, (ii) Article 2.15 hereof, and (iii) the relevant provisions of the Condominium Act. If a Deed of Absolute Sale of the Condominium Unit is not executed by the Selling Owner and a third party purchaser within [six (6)] consecutive months from and after the lapse, or written wavier of, the Right of First Refusal, the Right of First Refusal of the Condominium Corporation and the Non-Selling Owners shall be restored for another three-month period.
- Any sale of a Condominium Unit that does not strictly comply with the Right of First Refusal under this Article 2.16 shall be void.” (Article 2.16)
- “The Owner shall have the right to lease or encumber its Unit, subject to any applicable agreement between an Owner and the Declarant, and to the following requirements: (i) the Owner shall submit to the Condominium Corporation the deed evidencing such lease or encumbrance within five (5) days from the execution of the deed; and (ii) no lessee shall be allowed to sublease the Unit or any portion thereof. Notice shall also be given by the Unit Owner to the Condominium Corporation of every suit or other proceedings which may affect the title to his Unit or rights within five (5) days after the Unit Owner receives knowledge thereof.
- The lease of the Unit or the constitution of an encumbrance thereon shall not release the Owner from its obligations under this MDDR.
- Any lease on any Unit shall provide that the Lessee and all occupants of the leased Unit shall be bound by the terms of this MDDR, the By-Laws, and the rules of the Condominium Corporation”. (Article 2.17)
- The horizontal extent of each Condominium Unit shall be determined (i) from and including the front and rear doors and the interior surface of the wall separating the Condominium Unit from a Common area, and (ii) from the centerline of a wall and door separating the Unit from another Unit.
- The vertical extent of the Condominium Unit shall be determined from the top of the firewall to the base of the ground floor.
- The open area in front of the Unit bounded by the Planting Strip and the back up to the firewall shall also be considered part of each Condominium Unit. Such area in front is designed for a lawn or garden and must not be enclosed with a fence. Only end units of clusters are allowed to enclose their sides with a fence of a suitable height and material. Specifically, such fences must aesthetically complement the prevailing architectural design and shall not exceed two (2) meters from the adjoining road curb level and shall be made of steel or iron grilles, decorative blocks, wire mesh or non-solid fence material anchored or fixed to the top of a maximum 60 centimeter high solid zocallo wall and subject to the approval of the Declarant. Cyclone wire is not allowed as a material in the construction of such fence or wall. Fences on the front of all units are not allowed. Unit Owners of Inner Units may enclose only with a fence the open potion at the back of their units.
