The 50-Year Rule of Condominiums under RA 4726: What Happens When Your Condo Turns Half a Century Old?

The Myth That Refuses to Die

If you’ve ever heard someone, say, “Condos expire after 50 years,” you’re not alone. It’s one of the most common misconceptions in Philippine real estate — and it’s been passed around for decades.

Here’s the truth:

The 50-year rule under the RA 4726 Condominium Act doesn’t mean your condo automatically expires after half a century.

It simply gives the unit owners a choice — a legal window to decide, together, what to do with the property once it’s considered old or no longer practical to maintain.

This 50-year rule is clearly defined under the RA 4726 Condominium Act, which lays down the legal framework for condominium ownership, renewal, and redevelopment in the Philippines.

Section 8 of the RA 4726 Condominium Act – The Real 50-Year Rule

Section 8 of the RA 4726 Condominium Act explains that a condominium project can only be dissolved after fifty years if it has become obsolete and uneconomical to repair, and if a majority of unit owners agree to sell. It says that if a condominium project has been in existence for more than 50 years and is found to be obsolete and uneconomical to repair, then owners holding a majority interest can agree to sell the entire property.

In short, the 50-year mark doesn’t trigger automatic demolition. It simply opens a collective decision point for all unit owners:

“Do we keep it, fix it, or sell it?”

What “Obsolete and Uneconomical” Actually Means

A building becomes obsolete when it’s no longer fit for modern living — maybe the structure’s outdated, maintenance costs keep climbing, or safety standards have changed.

It becomes uneconomical to repair when fixing it costs more than rebuilding it from scratch.

Both conditions must exist before the owners can legally vote to dissolve the condominium corporation and sell the property.

When the Time Comes: Two Roads Ahead

Once the building hits the 50-year mark and meets those conditions, the owners usually have two options:

1. Rebuild or Redevelop

If the majority believe the property still has potential, they can choose to redevelop it.This is where joint venture agreements (JVAs) with developers come in — owners partner with a builder to reconstruct a new, modern high-rise. In return, they get new units or shares in the project.

2. Sell and Distribute the Proceeds

If the majority votes to sell, the condominium corporation is dissolved, and the land and structure are sold as one property. The proceeds are then divided among the unit owners based on their percentage interest in the common areas, as stated in the master deed. Individual unit titles are cancelled, and the buyer (often a developer) gets a new consolidated land title.

🚫 What the 50-Year Rule Doesn’t Mean

Let’s clear up the big misconceptions:

• ❌ It’s not automatic. Your condo doesn’t vanish the day it turns 50.

• ❌ It’s not a forced sale. Unless the required vote happens, nothing changes.

• ❌ It’s not controlled by the developer. The power lies with the owners through their condominium corporation.

So yes — you can absolutely live in, rent out, or pass on a condo that’s 60 years old, as long as it remains safe and well-maintained.

A Real-World Scenario

Imagine a condominium built in 1975.Fast-forward to 2025 — it’s now 50 years old. Engineers declare that the building’s structure is outdated and costly to repair. A vote is held among the owners.

If a majority (or whatever threshold the master deed sets) agrees to sell, the property is dissolved and sold to a developer. Owners each receive their fair share of the proceeds.

If the owners choose instead to redevelop, they can enter into a joint venture — turning the old lot into a brand-new tower while keeping a stake in it.

Key Takeaways for Unit Owners

• The 50-year rule gives a choice, not a deadline.

• A building must be both obsolete and uneconomical to repair before a vote can even happen.

• Majority approval is required to sell or dissolve.

• DHSUD (formerly HLURB) oversees the process and ensures compliance.

• Proceeds or replacement units belong to the owners in proportion to their share in the common areas.

Overall, the RA 4726 Condominium Act guides every owner on how to manage, redevelop, or sell their property once it reaches the 50-year mark.

The Big Picture

The RA 4726 Condominium Act isn’t about taking something away — it’s about empowering unit owners to decide together when a property’s life cycle has run its course. Under the RA 4726 Condominium Act, communities are given a legal path toward renewal and redevelopment, not expiration.

So next time someone says, “Your condo expires after 50 years,” you can smile and tell them: “No, it doesn’t expire — we just get to choose what happens next.”

Author’s Note

Written by Cris Rosales Jr., founder of A Little Bit of Everything in Life — a space where real estate insight meets everyday wisdom. Cris simplifies Philippine property laws and investment concepts for readers who want to make smarter, better-informed decisions about the homes they live in and the assets they build.