What happens if your condo is destroyed in an earthquake?

When the condominium is declared by the local government as habitable or safe for human use, the homeowners’ association/corporation can decide to repair the destroyed portion of the building, particularly the common areas. The affected condo owner shall repair his/her own condo.

What will happen to a condominium after 50 years?

What protects your ownership of a condo unit is The Condominium Act of the Philippines (Republic Act 4726) passed in 1966. In summary, it stipulates that if a project has been obsolete or uneconomic after 50 years, the majority owners of the common area reserve the right to stop any restoration or remodelling.

How long does a condominium last?

50 years
Most of the new condominium projects today are designed and built with modern techniques and durable materials to endure the ordinary wear and tear of everyday use. Modern condos will likely remain in good shape even after 50 years.

What is the difference condo and townhouse?

A condominium is similar to an apartment in that it’s an individual unit residing in a building or community of buildings. But unlike an apartment, a condo is owned by its resident, not rented from a landlord. A townhouse is an attached home also owned by its resident.

Does HOA cover earthquake damage?

Your earthquake loss isn’t covered by standard condo-unit or HOA insurance. In California, your condo-unit policy does not cover damages from the shaking by an earthquake.

Is earthquake insurance worth it in a condo?

Earthquake insurance can provide financial protection after a quake. A policy is worth the investment if you can’t afford to rebuild or replace your condo or belongings without the help of insurance.

How long can you own a condo unit?

What the law refers to in the 50-year rule is the lifespan of a corporation which is essentially the same to unit owners who make up the condominium project. However, the condominium corporation can actually be renewed for another fifty years so the ownership does not necessarily end.

Do condos lose value?

Yes, condos generally appreciate in value. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. But, if you’re trying to decide between a condo or a house, keep in mind that a single-family home is usually going to grow in value faster than a condo will.

Do you own a condo for life?

Your condominium doesn’t have a lifespan, but the corporation managing it has one. However, the corporation can still be renewed for another 50 years, so your condominium ownership does not necessarily end at that point. Fact #3: Three factors need to be fulfilled to declare a condominium uninhabitable.

Can you modify a townhouse interior?

However, townhouse rules generally do not restrict what changes homeowners can make to the interior of the home, as long as the interior changes do not alter the building’s exterior appearance. Local rules might require inspections or permits before and during the renovation process.

Can condominium owners purchase earthquake insurance for association buildings?

Individual condominium owners are unable to purchase earthquake insurance for association buildings because of the fact that their ownership is an undivided interest rather than fee simple ownership. As such, owners are not legally able to purchase earthquake insurance for the structures.

What happens when a building is destroyed in a condo project?

Borrowed, maybe. An interesting legal point in CA, is when any building in a stricken complex gets destroyed in a condominium project, there becomes a special assessment for whatever the insurance won’t bear. Which would probably be very little. So the board will have the owners vote to pay up, to cover the costs of new construction.

How does condo insurance work when buying a condo?

When you purchase a condo, your mortgage lender will require you to obtain a condo insurance policy that complements the master policy for your building.

What happens to other buildings in the complex?

Other buildings in the complex may not even be damaged, and some units may not be harmed in the slightest, but as a member of the association, you will have to pay the special assessment.