July 22, 2019
SEC-OGC OPINION NO. 26-19
RE: RIGHT TO LEASE OF A NON-STOCK, NON-PROFIT CONDOMINIUM CORPORATION
Atty. Ireneo J. Marasigan
8th Floor, PDCP Bank Center Building
V.A. Rufino corner Leviste Street
Salcedo Village, Makati City
Atty. Marasigan :
This refers to your letter dated 22 October 2018 requesting an opinion on: (1) the legal right of Kensington Place Condominium Corporation (Kensington) to lease its newly-owned unit pursuant to its objectives; and (2) whether the act of leasing the unit and other similarly foreclosed units in the future is deemed as doing business, in violation of its registration as a non-stock and non-profit corporation. HTcADC
You stated that Kensington is a non-stock, non-profit condominium corporation incorporated on 20 June 2006 with SEC Registration No. CN200609494. On 03 July 2014, Kensington filed with the Regional Trial Court (RTC) an action for Judicial Foreclosure of Mortgage against the unit owners of Unit 8-K due to delinquency in payment of association dues and other defaulted assessments. On 23 June 2016, a decision was rendered in favor of Kensington, which became final and executory on 17 May 2017....
