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GOLDCREST REALTY CORPORATION v. CYPRESS GARDENS CONDOMINIUM CORPORATION

FACTS:

Petitioner Goldcrest Realty Corporation developed Cypress Gardens, a ten-storey building, and executed a Master Deed and Declaration of Restrictions incorporating respondent Cypress Gardens Condominium Corporation to manage the condominium project. Goldcrest retained ownership of the penthouse unit while Cypress held title to the common areas. In 1995, management was turned over to Cypress. It was discovered that Goldcrest encroached upon and occupied certain common areas. A complaint was filed by Cypress against Goldcrest, seeking to compel it to vacate the encroached areas and remove the structures built thereon. Goldcrest argued that it was granted exclusive use of the roof deck's limited common area, and the structures were built for privacy and security. Encroachments and unauthorized structures were confirmed in two ocular inspections. The HLURB Arbiter ruled in favor of Cypress, but the HLURB Special Division modified the decision. Cypress appealed to the Office of the President, but the appeal was dismissed.

ISSUES:

  1. Whether Goldcrest Realty Corporation (Goldcrest) encroached upon and occupied certain common areas belonging to Cypress Gardens Condominium Corporation (Cypress).

  2. Whether Goldcrest has the right to use the limited common area on the roof deck of the condominium project.

RULING:

  1. Goldcrest was found to have encroached upon and occupied certain common areas belonging to Cypress. The court ordered Goldcrest to remove the questioned structures and vacate the roof deck's common areas. Goldcrest was also required to pay an administrative fine for constructing a second penthouse and making an unauthorized alteration of the condominium plan.

  2. The HLURB Special Division held that only Goldcrest has the right to use the limited common area on the roof deck. Therefore, Cypress has no cause of action regarding the use of the roof deck's limited common area.

PRINCIPLES:

  • Encroachment on common areas of a condominium project is a violation of the rights of other unit owners and can be subjected to appropriate legal remedies.

  • Limited common areas in a condominium project may be exclusively used by certain unit owners if provided for in the condominium's Master Deed.

  • Unauthorized alteration and construction of structures on common areas of a condominium project can be subject to fines and penalties.