What Happens to Your Condominium After 50 Years?
A clear, practical explanation of RA 4726 (Condominium Act) and the 50-year term of condominium corporations under Philippine law
One of the most common concerns among condo owners and buyers is:
“What happens to my condo after 50 years?”
Many assume that condominiums automatically expire or return to the developer once they hit the 50-year mark.
This is one of the biggest misconceptions in Philippine real estate.
Let’s clarify the truth — based on two key laws:
- Republic Act 4726 – The Condominium Act
- Republic Act 11232 – The Revised Corporation Code (RCC)
This article explains what really happens, in clear and simple terms.
First: Condominiums DO NOT Automatically Expire at 50 Years
Your ownership does not disappear after 50 years.
Your unit does not revert to the developer.
You do not lose your rights after a fixed period.
Under RA 4726, a condominium may only be terminated if all of the following conditions are met:
The building is over 50 years old
, AND
It is no longer safe or economically feasible to repair
, AND
More than 50% of unit owners agree to dissolve the condominium project.
Age alone is NOT a basis for termination.
Unit owners—not the developer—decide what happens.
The Real 50-Year Rule: It Refers to the Condominium Corporation’s Term
This is where the confusion comes from.
Under the Revised Corporation Code (RA 11232):
✔ Corporations (including condominium corporations) now have perpetual existence,
unless their Articles of Incorporation specify a shorter term.
Before the RCC, many older condominium corporations were incorporated with:
➤ A fixed 50-year corporate term
This corporate term is separate from the life of the condominium project itself.
So does the condo “expire” when the corporation’s 50-year term ends?
NO.
Instead:
- The condominium corporation may apply for renewal, typically during the 5 years before its expiration date.
- If renewed, the corporation continues — and so does the condominium.
- If not renewed, the condominium corporation may dissolve, but ownership of the land and building remains with the unit owners.
The expiration of the condominium corporation’s term does NOT terminate unit ownership.
The corporation is simply the management body.
Its term can be renewed indefinitely.
So there are TWO separate 50-year concepts:
The 50-Year “Safety & Obsolescence” Rule
(Under RA 4726 – The Condominium Act)
This applies to the building’s physical condition, and termination requires:
- Age (50+ years)
- Structural obsolescence
- Vote of majority of unit owners
If all criteria are met, the property can be sold and proceeds distributed to owners.
The 50-Year Corporate Term Rule
(Older condos only, under pre-RCC corporate terms)
This applies to the condominium corporation, not the building.
- Many older condo corporations originally had 50-year terms.
- Under RA 11232, these can now be renewed or extended to perpetual existence.
Even if the corporation’s term lapses, your unit does NOT expire.
The unit owners simply reorganize or renew the corporate structure.
What Can Actually Happen After 50 Years? (4 Possible Scenarios)
Let’s look at the real outcomes.
Scenario 1: The Building Is Still Safe → Nothing Changes
Most well-maintained condos will continue to operate beyond 50 years.
You can:
- Live in the unit
- Rent it out
- Sell it
- Transfer it to heirs
Nothing terminates automatically.
Scenario 2: The Condominium Corporation Renews Its Term
If the condominium corporation had a 50-year term, the board and unit owners can renew it under the RCC.
This is purely administrative — it does not affect ownership.
Scenario 3: The Building Is Unsafe → Owners May Vote to Dissolve
If engineers deem the structure unfit, owners may vote to:
- Terminate the project
- Sell the land (often to a developer)
- Divide the proceeds among all unit owners
This can be financially beneficial — especially for condos in prime locations.
Scenario 4: Developers Offer a Buyout for Redevelopment
Even before 50 years, many developers offer:
- Cash buyout
- Swap to newer units
- Priority purchase rights in the new development
This commonly happens in:
- Makati CBD
- Ortigas Center
- Mandaluyong
- Manila
- Quezon City
Older condos sit on extremely valuable land.
Common Misconceptions — Corrected
“My condo will vanish after 50 years.”
✔ FALSE. Ownership remains unless the building is structurally obsolete and owners vote to terminate.
“The developer takes back the unit.”
✔ FALSE. Developers have no ownership after turnover.
“I can’t sell a 40–50-year-old condo.”
✔ FALSE. Older condos in prime areas remain in high demand.
“The condo corporation’s expiration means I lose my unit.”
✔ FALSE. Corporate term ≠ Building lifespan.
Should You Worry?
No.
Both laws (RA 4726 and the RCC) are designed to protect property owners.
✔ You do not lose ownership at 50 years
✔ You will receive compensation if the building is dissolved
✔ Termination requires a majority vote
✔ Corporate terms can be renewed
✔ Redevelopment can even be profitable
You remain protected under Philippine law.
Final Thoughts: Your Condominium Is a Long-Term, Legally Protected Asset
Whether for end-use or investment, condo ownership in the Philippines is backed by strong legal protection.
The 50-year rule is not an expiration, but a safety and governance mechanism.
You’re not buying something that disappears —
you’re buying a real property interest supported by law.
FAQ: What Happens to Your Condominium After 50 Years?
Q1: Does a condominium expire after 50 years in the Philippines?
No. A condominium does not automatically expire after 50 years. Under RA 4726 (The Condominium Act), the project can only be terminated if the building is over 50 years old, structurally obsolete, unsafe, and more than 50% of unit owners vote to dissolve it.
Q2: Do unit owners lose ownership when the condo reaches 50 years?
No. Unit owners retain ownership even beyond 50 years. Your condo does not revert to the developer, and ownership does not end due to age alone.
Q3: What is the legal basis for the 50-year rule?
The 50-year rule comes from Section 8 of RA 4726, which states that a condominium may be terminated if it is over 50 years old and considered no longer viable or safe for use, and if a majority of unit owners vote for termination.
Q4: What happens if the building is still safe after 50 years?
If the structure is still sound, the condominium continues to operate normally. Owners may still live in, sell, or lease their units. There is no automatic cancellation.
Q5: What happens to the property if the condominium is terminated?
If the project is terminated under RA 4726, the land and building become common property of the unit owners. The property may be sold, and sale proceeds are distributed to all owners based on their ownership interest.
Q6: What is the 50-year term of a condominium corporation?
Many older condo corporations were incorporated with a 50-year corporate term under older laws. Under the Revised Corporation Code (RA 11232), condominium corporations may now have perpetual existence or renew their corporate term.
Q7: If the condominium corporation’s 50-year term expires, do owners lose their units?
No. The condominium corporation’s term is separate from your property rights. If its corporate term expires, it may be renewed, re-registered, or restructured — but unit ownership remains with the individual owners.
Q8: Can a condominium be redeveloped instead of being dissolved?
Yes. Many old condos undergo redevelopment or buyouts. Developers may offer compensation, relocation, or new units. Redevelopment often happens even before the building reaches 50 years if the land is valuable.
Q9: Can unit owners vote to repair instead of dissolving the condominium?
Yes. Owners may approve building repairs, retrofitting, or upgrades. RA 4726 does not require dissolution at 50 years — it only allows it under certain conditions.
Q10: Will the condo automatically be demolished at 50 years?
No. Demolition requires:
- Structural assessment proving the building is unsafe, and
- A vote of 50% + 1 of all unit owners. Without both, the condominium stays active.
Q11: Why do people think condos “expire” after 50 years?
This misconception comes from:
- The 50-year rule in RA 4726
- Older condominium corporations having 50-year terms In reality, neither causes automatic expiration or loss of ownership.
Q12: Do condo values drop when the building gets older?
Not always. Condos in prime locations (Makati, Ortigas, Manila, QC) often retain or grow in value due to land scarcity. The location usually matters more than the building’s age.
Q13: What should owners do as their condo gets older?
Owners should participate in:
- Annual building inspections
- Reserve fund planning
- Repairs and retrofitting decisions
- Voting on redevelopment proposals These ensure the building remains safe and valuable long-term.
Need guidance about condo ownership, resale, or investing?
Landlord Realty Development is led by:
Rafael Penilla, MBA
Licensed Real Estate Broker
- PRC License No. 0004428
- DHSUD No. NCR-B-6576
📩 Contact us today for expert advice on condominium ownership and long-term investment strategies.
