Question: A difficult lessor is asking me to pay for insurances and Real Property Tax (RPT) for the common area of a condo that I am renting. Is this normal practice according to Philippine law?
Answer:
What does Philippine Law Say About Lessor and Lessee Responsibilities?
Under the Philippine Civil Code, the lessor is generally responsible for the payment of annual Real Property Taxes and other charges that may be imposed upon the property. The law doesn't explicitly require the lessee to pay for insurances or Real Property Tax (RPT) unless otherwise stipulated in a lease agreement.
Can the Lessor Pass on the Cost of Insurances and RPT to the Lessee?
In a private contractual agreement like a lease, parties are free to stipulate clauses as they deem fit, provided these clauses are not contrary to law, morals, good customs, public order, or public policy. Therefore, the lessor may stipulate that the lessee will cover the cost of insurances and RPT for the common area, but this must be clearly outlined in the lease agreement and agreed upon by both parties.
What Constitutes a 'Common Area' in a Condominium Setting?
Common areas in a condominium generally refer to spaces like hallways, lobbies, and amenities that are shared among unit owners. Typically, the maintenance of these common areas, including insurance and RPT, is managed by the condominium corporation and funded by association dues collected from unit owners, not individual lessees.
What Should I Do if This Clause Is Not in My Lease Agreement?
If there is no provision in your lease agreement stating that you should cover the costs for insurances and RPT for the common areas, then you are generally not obligated to do so. You may wish to consult a lawyer to review your lease agreement to confirm that you're not required to cover these costs.
Is it Common Practice to Charge the Lessee for Common Area Costs?
While practices can vary, it is not commonly considered standard practice in the Philippines for lessors to pass on the cost of insurances and RPT for common areas to lessees, unless explicitly stated in the lease agreement.
What Can I Do If My Lessor Insists on Charging Me?
If your lessor insists on charging you for these costs despite no provision in the lease agreement, you may seek legal advice on how to proceed. This could involve mediation, arbitration, or legal action if necessary.
Conclusion:
In the Philippine context, lessors generally cover costs like insurances and RPT for properties they lease out. While lease agreements can vary, charging a lessee for these costs related to common areas is not standard practice and should be clearly stipulated in the lease agreement to be enforceable.