Water is an essential element of life and resource in the environment. In fact, protruding from the basic tenet that water is a vital part of human existence that the Supreme Court has introduced the concept of Public Trust Doctrine. Water is not a mere commodity for sale and consumption; rather, it is a natural asset to be protected and conserved by the State. No less than the Constitution itself has stated that all natural resources are owned by the State, and the exploration, development, and utilization of natural resources shall be under its full control and supervision.

By analogy, the same can be said in a Philippine condominium setting. Water is not just a commodity; it is essential and indispensable. Without it, a condominium unit becomes practically uninhabitable. Several news has sparked an interest with several condominium unit owners, wherein it was reported that a condominium association of a condominium building has cut-off the utility connection, including water, of their unit owners, due to the latter’s non-payment of the association dues and other expenses on time. Since it has been established that water is indispensable, cutting off someone’s water disconnection raises serious legal implications and liability. Thus, this Article focuses on the right of condominium corporations to cut-off a defaulting unit owner’s water connection and the best ways to approach it if you are confronted with the same problem.

Condominium Corporations; rights and powers and the governing law

At the outset, it must be recognized that Republic Act No. 4276, or the Condominium Act, is the governing law with respect to condominiums. It is also this same law which sanctions the creation of the condominium corporation, which is especially formed for the purpose of holding title to the common area, in which the holders of separate interests shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units. It is under this same law that the rights and obligations of the condominium unit owners and condominium corporation are set forth.

Under Section 9 of said law, the owner of the condominium shall register a declaration of restrictions to be annotated to the certificate of title of land included within the project. The declaration of restrictions provides for, among others, the management of the project. These restrictions are imposed for the “common interest and safety of the occupants” therein which at times may curtail the exercise of ownership. Among those which may be included in the restrictions are the powers of the management body, including power to enforce its provisions, and provisions for maintenance, utility, gardening and other services benefiting the common areas. 

In connection thereto, Section 10 of the same states that whenever the common areas in a condominium project are held by a condominium corporation, such corporation shall constitute the management body of the project. The corporate purposes of such a corporation shall be limited to the holding of the common areas, either in ownership or any other interest in real property recognized by law, to the management of the project, and to such other purposes as may be necessary, incidental or convenient to the accomplishment of said purposes.

With that, however, it is crystal clear that the law did not expressly grant condominium corporations the right to cut-off a unit owner’s water connection due to non-payment of dues; it is insufficient. It is thus imperative for us to analyze jurisprudence wherein the Supreme Court upheld the condominium corporation’s act of cutting off a defaulting unit owner’s utility disconnection.

BNL Management Corporation and David v. Uy, et al. case

In this 2019 case, BNL Management Corporation is the owner of 6 condominium units and three parking spaces at Imperial Bayfront Tower Condominium. It withheld the payment of association dues, allegedly due to concerns regarding building maintenance, security, and parking space issues. Even after several notices from the Imperial Bayfront Tower Condominium Association, it failed to pay said dues. Thus, the Association was constrained to disconnect the lighting facilities in BNL’s units.

When the case reached the Supreme Court, It denied BNL’s petition, on the ground that it is bound by the House Rules and Regulations issued by the Association. The Supreme Court, speaking through Justice Leonen, ruled that when BNL bought the condominium units from Imperial Bayfront, they were bound by the terms and conditions of the declaration of restrictions attached to the Master Deed. As the Court of Appeals found, the Master Deed expressly allows its condominium association to subject its owners, purchasers, tenants, and lessees to rules and regulations for “the efficient and mutually beneficial management and operation of the project.” These were the House Rules and Regulations, which vested in the Association the power to interrupt utility services in case of nonpayment of association dues.

Since the House Rules specifically provided that non-payment of Association Dues, deposits for utilities and capital expenditures and other special assessments promulgated by the association shall empower the association to limit or totally out the services and/or utilities to delinquent unit owner/tenant, BNL cannot feign ignorance and insist that the Rules cannot apply to them.

Conclusion

From the said discussion, it is evident that a condominium corporation does not have an ipso facto power to disconnect a defaulting unit owner’s utility just by reason of its failure to pay the association dues. Reference should first be made as to whether a declaration of restrictions have been registered by the owner of the project, and whether said declaration expressly allows its condominium association to subject its owners, purchasers, tenants, and lessees to rules and regulations for management and operation of the project, which includes the imposition of penalty of utility disconnection in the event of non-payment of dues.

Thus, if you are a condominium owner, it is necessary to exercise your due diligence by asking for a copy of your condominium’s master deed, the deed of declarations, the Association’s house rules and regulations, and other rules and regulations formulated by it which may be in the form or Board Resolution, among others. It must be noted that the powers of a Condominium Corporation are limited by R.A. 4726 and its Declaration of Restrictions. Any misstep thereto, such as trampling a unit owner’s constitutional right to due process of law, may subject the Corporation and/or its Board of Trustees to possible civil, criminal, and administrative liability.

^1. Maynilad Water Services, Inc. v. The Secretary of Department of Environment and Natural Resources, G.R. No. 202897, 6 August 2019.
^2. Limson v. Wack Wack Condominium Corporation.