CHAPTER II- Ownership, Heritability and Transferability of Apartments, Section 12- Encumbrances against apartments

  1. An apartment owner has the right to create an encumbrance against his apartment and his undivided interest in the common facilities.
  2. If any labour is performed and material furnished for the common areas and facilities by the consent of every apartment owner and duly authorised by the Association of Apartment Owners, a charge or encumbrance may be created.
  3. If a charge or any encumbrance against two or more apartments has become effective, the apartment owners of the separate apartments may remove their apartments and the percentage of undivided interest in the common facilities from the charge or encumbrance. This is after they make their payment of the fractional or proportional amounts attributable to their apartments. On such payment, the apartment and the percentage of undivided interest in the common facilities appurtenant shall be free of the charge or encumbrance so removed.
  4. This partial payment by an apartment owner shall not prevent the person having a charge or any of the encumbrances from enforcing the rights in relation to the amount not so paid, against any owner.
  5. On the payment of the charge by an owner, his apartment and undivided interest in the common facilities shall be declared encumbrance-free.