Padcom Condominium Corporation v. Ortigas Center Association

Summary

PADCOM Condominium Corporation challenged its obligation to pay membership dues to Ortigas Center Association based on an automatic membership clause annotated on its property title. The clause originated from the original land sale in 1974 and was carried over when PADCOM acquired the property in 1975. The Regional Trial Court initially dismissed the Association's collection suit, but the Court of Appeals reversed, ordering payment of P639,961.47 in arrears plus attorney's fees. The Supreme Court affirmed, ruling that under the Torrens system and PD 1529, annotated liens bind property owners regardless of ownership changes. The Court applied Civil Code provisions on contracts binding successors-in-interest and quasi-contract principles, rejecting PADCOM's freedom of association defense since it voluntarily purchased property with known conditions. The decision establishes that property owners cannot escape validly annotated obligations through ownership transfers.