Condominium Property



Condominium Property

Condominium Property Act Repealed And Replaced By Apartment Ownership Act 11 of 1973

AN ACT TO PROVIDE FOR THE SUB-DIVISION OF PROPERTIES INTO PARTS THAT ARE TO BE OWNED INDIVIDUALLY AND PARTS THAT ARE TO BE OWNED IN COMMON; TO FACILITATE THE DISPOSITION OF TITLES THERETO; TO PROVIDE FOR THE USE AND MANAGEMENT THEREOF; AND TO PROVIDE FOR OTHER MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO.

Be it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Senate and the House of Representatives of Ceylon in this present Parliament assembled, and by the authority of the same, as follows:

Act Nos,
of
[1st March
, 1970
]
Short title and date of operation.

1. This Act may be cited as the Condominium Property Act, No. 12 of 1970, and shall come into operation on such date (hereinafter referred to as the ” appointed date “) as the Minister may appoint by Order published in the Gazette.

Condominium Plans
Application for registration of Condominium Plans.

2.

(1) Any person claiming to be the owner of any land to which this Act applies may make application to the Registrar of Lands for the registration of a Condominium Plan.

(2) A Condominium Plan shall be an instrument affecting land for the purposes of the Registration of Documents Ordinance.

Requisites for registration of Condominium Plans.

3.

(1) Every application for the registration of a Condominium Plan shall be in the prescribed form and shall

(a) specify the name or assessment number if any and the extent of the land to which title is claimed;

(b) contain a description of the land by reference to its extent, boundaries and situation;

(c) contain particulars of the deeds, instruments or other documents and of other evidence of title relied upon by the applicant in support of his claim;

(d) contain particulars of every encumbrance, Us pendens, seizure, order or decree affecting the land to the knowledge of the applicant or his proctor, if any.

(2) The Condominium Plan shall

(a) delineate the horizontal surface boundaries of the parcel and the location of the building in relation thereto;

(b) include a drawing illustrating the units and distinguishing such units by numbers or other symbols;

(c) define the boundaries of each unit by reference to the floors, walls or ceiling and the approximate floor area of each unit;

(d) have attached to it a schedule with the names and addresses of the designated owners of each unit;

(e) define any portion of the parcel or part of the building not within the unit itself but intended to be used in conjunction with the enjoyment of the unit;

(f) have endorsed upon it a schedule specifying in whole numbers the unit factor for each unit in the parcel;

(g) be signed by the owners of the property;

(h) have endorsed upon it the address at which documents may be served on the body corporate;

(i) have endorsed upon it the name of the scheme and the number of the block, if any;

(j) contain all other particulars and information as may be prescribed by regulation;

(k) be endorsed or accompanied by a certificate of a licensed surveyor that the building shown in the plan is within the external horizontal boundaries of the parcel;

(l) be endorsed or accompanied by a certificate of a chartered architect or chartered civil or structural engineer that the units shown in the plan are the same as those existing on the land;

(m) be endorsed or accompanied by a certificate of the local authority within whose administrative jurisdiction the building comprised in the plan is situated, that the proposed division of the building as illustrated in the plan has been approved by such authority.

Registration of Condominium Plan and appeals against refusal.

4.

(1) Where the Registrar of Lands is satisfied that the application for registration of the Condominium Plan conforms in all respects to the provisions of this Act and the regulations made thereunder and where it appears to him that the applicant is the owner of the land to which this Act applies, he may register the Condominium Plan under the Registration of Documents Ordinance as an instrument affecting land.

(2) Where the Registrar of Lands refuses to register the Condominium Plan, he shall comply with the provisions of section 37 of the Registration of Documents Ordinance.

(3) An appeal shall lie from every order made by the Registrar of Lands refusing registration of a Condominium Plan and the provisions of section 38 of the Registration of Documents Ordinance shall apply in relation to such appeal.

Effect of registration of a Condominium Plan.

5.

(1) Upon registration of a Condominium Plan the building depicted therein shall be deemed to be divided into the units in the manner provided in such plan and all rights, title and interest of the owners of the parcel shall vest in the designated owners of the units.

(2) Notwithstanding anything to the contrary in any other law, but subject to the provisions of this Act, after the registration of a Condominium Plan, any unit depicted therein may be transferred, leased, mortgaged or otherwise dealt with in the same manner and form as any land registered under the Registration of Documents Ordinance.

Shares in common property.

6.

(1) The common property comprised in the registered plan shall be held on the owners of the units as co-owners thereof in shares proportionate to the unit factors of their respective units.

(2) No share in the common property shall be disposed of except as appurtenant to the unit of the owner thereof and any alienation of a unit by an owner shall convey the share of that owner of the common property without express provisions relating thereto.

Title to unit subject to registered interests.

7.

(1) An owner shall hold his unit and his share in the common property subject to any interest affecting the unit or the common property notified on the registered plan.

(2) Except to the extent that any interest notified on a registered plan relates to a particular unit, the owner of a unit shall be only liable in respect of any such interest in proportion to the unit factor for his unit.

(3) Unless otherwise stipulated in the registered plan, the common boundary of any unit with another unit or with common property shall be the centre of the floor, wall or ceiling, as the case may be.

Redivision of unit.

8.

(1) Any owner or owners may, with the approval of the local authority, redivide his or their units by registering a Condominium Plan relating to the unit or units so redivided in the manner provided by this Act for the registration of Condominium Plans.

(2) Except as provided in this section the provisions of this Act relating to Condominium Plans shall apply mutatis mutandis to a redivision under subsection (1).

(3) The owners of units in a Condominium Plan of redivision shall, as from the date of registration of the plan of redivision, be the members of the corporate body constituted under section 11 on the registration of the original plan.

(4) On the registration of a Condominium Plan of redivision, units comprised therein shall be subject to the burden and shall have the benefit of any easements affecting such of the units in the original registered plan as are included in the plan of redivision.

(5) The schedule accompanying a plan of redivision shall apportion among the units the unit factor or factors for such unit or units in the original plan as are included in the redivision.

(6) Before registering a Condominium Plan of redivision, the Registrar of Lands shall amend the original registered plan.

(7) Upon registration of a Condominium Plan of redivision the land comprised therein shall not be dealt with by reference to units in the original plan.

Easements in favour of or against owner.

9. After registration of a Condominium Plan, there shall be implied in respect of each unit shown therein-

(a) in favour of the owner of the unit and as appurtenant thereto-

(i) an easement for the subjacent and lateral support thereof by the common property and by every other unit capable of affording support;

(ii) an easement for the shelter thereof by the common property and by every other unit capable of affording shelter; and

(iii) easements for the passage or provision of water, sewerage, drainage, gas, electricity, garbage, artificially heated or cooled air and other services (including telephone and radio services) through or by means of any pipes, wires, cables or ducts for the time being existing in the parcel to the extent to which those pipes, wires, cables or ducts are capable of being used in connection with the enjoyment of the unit;

(b) as against the owner of the unit, to which his unit shall be subject-

(i) an easement for the subjacent and lateral support of the common property and of every other unit capable of enjoying support;

(ii) an easement to provide shelter to the common property and to every other unit capable of enjoying the shelter; and

(iii) easements for the passage or provision of water, sewerage, drainage, gas, electricity, garbage, artificially heated or cooled air and other services (including telephone and radio services) through or by means of any pipes, wires, cables or ducts for the time being existing within the units, as appurtenant to the common property and also to every other unit capable of enjoying those easements.

Ancillary rights and obligations implied.

10. All ancillary rights and obligations reasonably-necessary to make easements effective shall apply in respect of easements implied by this Act, including the right of an owner of a dominant tenement to enter a servant tenement and replace, renew or restore anything the dominant tenement is entitled to benefit from.

CONDOMINIUM CORPORATION
Owners of units in Condominium Plan to be a body corporate.

11.

(1) Upon registration of a Condominium Plan, the owner or owners of the units in the parcel to which the Condominium Plan applies shall constitute a body corporate under the name and style of ” The Owners: Condominium Plan No.: ………….” (the number to be specified being the number given to the plan upon registration).

(2) Subject to the provisions of this Act, the body corporate shall have a common seal and right to perpetual succession and shall have the right to sue and be sued, and shall be responsible for the enforcement of its by-laws and the control, management and administration of the condominium property.

VOTING RIGHTS, POWERS AND DUTIES OF CORPORATION
Voting rights.

12. The voting rights of the owner of a unit shall be determined by the unit factor for his unit.

Board of Managers.

13. The powers and duties of a body corporate shall, subject to any restriction imposed or direction given at a general meeting, be exercised and performed by a Board of Managers which shall be constituted as provided for in the by-laws of the body corporate.

By-laws.

14.

(1) A building shall be regulated by by-laws made by the body corporate which shall provide for the control, management, administration, use and enjoyment of the units and of the common property, and shall include-

(a) the by-laws set forth in the First Schedule to this Act which shall not be added to, amended or repealed; and

(b) the by-laws set forth in the Second Schedule to this Act which shall not be added to, amended or repealed except by a three-fourths majority of the total number of members of the body corporate.

(2) Subject to the provisions of sub-section (1), until by-laws are made in that behalf, the by-laws set forth in the First Schedule and Second Schedule to this Act shall, as on and after the registration of a Condominium Plan, be in force for all purposes in relation to the parcel and the units and common property therein.

(3) No addition or amendment or repeal of any by-law pursuant to sub-section (2) shall have effect until the body corporate shall have lodged a copy thereof with the Registrar of Lands, and the Registrar of Lands has made reference thereto on the registered plan.

(4) No by-law or addition to or amendment or repeal of any by-law of a body corporate shall operate to prohibit or restrict the devaluation of units or any transfer, lease, mortgage or other dealing therewith or to destroy or modify any easement implied or created by this Act.

(5) The by-laws of a body corporate shall bind the body corporate and the owners to the same extent as if the by-laws had been signed and sealed by the body corporate and by each owner and contained covenants on the part of each owner with every other owner and with the body corporate to observe and perform all the provisions of the by-laws.

(6) A body corporate shall, on the application of an owner or any person authorized in writing by him, make its by-laws available for inspection.

Administrative expenses.

15.

(1) In addition to its other powers under this Act, the powers of a body corporate shall include the following: –

(a) to establish a fund for administrative expenses sufficient, in the opinion of the body corporate, for the control, management and administration of the common property, for the payment of any premium of insurance and for the discharge of any other obligation of the body corporate;

(b) to determine from time to time the amounts to be raised from the owners for the purposes mentioned in paragraph (a);

(c) to recover from any owner of a unit any sum of money due to the body corporate-

(i) for repairs effected or work executed by it or under its direction or any other expenses incurred in the maintenance of a unit;

(ii) for any rates, taxes or charges paid by the body corporate under section 18 (1).

(2) Where any sum of money due to the body corporate under paragraph (c) of sub-section (1) has not been paid by any owner of a unit from whom such sum is due, the Chairman of the Board shall certify in writing the amount which is due from such owner.

(3)

Cap. 101

(a) Upon the production of a certificate issued by the Chairman of the Board under sub-section (2) before any Court of Requests within whose jurisdiction the body corporate is situated, the Court shall direct a writ of execution to be issued to the Fiscal authorizing him and requiring him to seize and sell all or any of the property movable or immovable or such part thereof as may be necessary for the recovery of that sum and the provisions of sections 226 to 297 of the Civil Procedure Code shall, mutatis mutandis, apply to the execution of such writ and to such seizure and sale.

(b) Notwithstanding anything in any other law as to the limitation to the monetary jurisdiction of a Court of Requests any such Court shall be competent to entertain any application under the preceding provisions of this sub-section.

(4) Where the Chairman of the Board issues a certificate under sub-section (2) he shall notify in writing any owner of a unit specified in the certificate that the sum specified in the certificate is payable but the non-receipt of such notice by the owner of any unit shall not invalidate proceedings under this section.

Insurance by body corporate.

16. A body corporate shall insure and keep insured the entire building for the replacement value thereof against risk of fire, civil commotion and riots, and the premium or premier paid by the body corporate shall be recovered from the owners of the building in proportion to their unit factors.

Insurance by owner.

17.

(1) The owner of a unit may effect a policy of insurance in respect of any damage to his unit in a sum equal to the amount secured, at the date of any loss referred to in the policy, by mortgage upon his unit.

(2) Nothing in section 16 or in sub-section (1) shall limit the right of an owner to insure against risks other than damage to his unit.

Recovery of rates, &c.

18.

(1) Where any rates, taxes or charges leviable in respect of any unit by any local authority or public authority are due or payable and the owner has failed to make payment thereof, such authority may serve upon the body corporate a copy of the notice of assessment of such rates, taxes or charges, together with a notice requiring the body corporate to pay such rates, taxes or charges within a specified time from the date of such service.

(2) If, under sub-section (1), a body corporate fails to pay the rates, taxes or charges within the period specified, the local authority or public authority may, without prejudice to its right against any owner, sue the body corporate for the recovery of such rates, taxes or charges as a debt in a court of competent jurisdiction and may exercise any other remedies available to that authority under any other written law, as if the body corporate were the sole owner of the unit and the rates, taxes or charges levied were the rates, taxes or charges applicable to that unit.

Right of entry.

19. Where any public or local authority or any person authorized by such an authority has a statutory right to enter upon any part of a parcel or unit, such authority or person shall be entitled to enter upon any other part of the parcel or other unit to the extent necessary or expedient to enable it or him to exercise its or his statutory powers.

Termination of condominium.

20.

(1) The condominium status of a building may be terminated by an unanimous resolution of the body corporate.

(2) An application to terminate the condominium status of a building may be made to the District Court where the property to which the Condominium Plan relates is situated, by the body corporate or by an owner.

(3) On an application being made under this section, if the Court is satisfied that, having regard to the rights and interests of the owners as a whole, it is just and equitable that the condominium status of the building should be terminated, the Court may make a declaration to that effect subject to such conditions and directions as it may consider necessary.

Effect of termination of condominium.

21.

(1) The Court shall cause a copy of the declaration made under section 20 together with any conditions and directions attached thereto to be transmitted to the Registrar of Lands of the district or each of the districts in which the land or each of the lands to which such declaration relates is situated.

(2) Upon receipt of a notice under sub-section (1), the Registrar of Lands shall make a note thereof on the registered Condominium Plan and the folio related thereto and, upon such note being- made, the owners of the units described in the plan shall be co-owners of the property in proportion to the unit factors of their respective units.

REGULATIONS
Regulations.

22.

(1) The Minister may make regulations in respect of all matters that by this Act are required or permitted to be prescribed or that are necessary or convenient to be prescribed for carrying out or giving effect to the provisions of this Act.

(2) In particular, but without prejudice to the generality of the powers conferred by sub-section (1), the Minister may make regulations in respect of the following matters: –

(a) any matter in respect of which regulations are authorized or required by this Act to be made;

(b) forms to be used for applications made under this Act;

(c) fees for services rendered by any authority under the provisions of this Act;

(d) all other matters connected or incidental to the matters aforesaid.

(3) No regulation made by the Minister shall have effect until it is approved by the Senate and the House of Representatives and notification of such approval is published in the Gazette. Every regulation so approved shall be valid and effectual as though it were herein enacted.

SPECIAL PROVISIONS RELATING TO CERTAIN MATTERS
Special powers of the Commissioner.

23.

(1) Where any property comprised in a registered Condominium Plan is under mortgage to the Commissioner for National Housing (hereinafter referred to as ” the Commissioner “) and the Board of Managers constituted under section 13 persistently refuses or defaults in carrying out such special or general directions that the Commissioner may issue, the Commissioner may dissolve such Board and exercise all or any of the powers that such Board was unable to exercise in respect of the body corporate under the provisions of this Act.

(2) Where any property comprised in a registered Condominium Plan is under mortgage to the Commissioner, no structural alteration shall be effected to such property without the prior approval of the Commissioner.

Delegation of powers, &c, by the Commissioner.

24. The Commissioner may delegate in writing to the Deputy Commissioner or any Assistant Commissioner any of his powers, functions or duties under this Act or any subsidiary written law made or issued thereunder.

Provisions of Partition Act not to apply in certain cases. Cap. 69.

25. The Partition Act shall not apply to any land or building comprised within any registered Condominium Plan and accordingly the provisions of that Act shall be read and construed subject to the provisions of this section.

OFFENCES
Offences.

26.

(1) Every person who contravenes or fails to comply with the provisions of this Act or of any subsidiary written law made or issued thereunder shall be guilty of an offence and be liable on conviction after summary trial before a Magistrate to a fine not exceeding two hundred rupees and if such offence is a continuing offence, to an additional fine of fifty rupees for each day on which the offence is continued after conviction or after written notice of such contravention is served on such person by the Chairman of the Board.

(2) No prosecution for an offence under this Act shall be instituted in any court except with the written sanction of the Chairman of the Board.

Provisions of the act to prevail over other Jaw.

27. The provisions of this Act or of any regulations made thereunder shall have effect notwithstanding anything in any other law, and where there is any conflict or inconsistency between the provisions of this Act and any other law, the provisions of this Act shall prevail over such other law.

Interpretation.

28. In this Act, unless the context otherwise requires-

” Board 3′ means the Board of Managers of a body corporate as provided for in section 13;

” body corporate ” means a body corporate incorporated under section 11;

” building ” means the building or buildings shown in a Condominium Plan;

” by-laws ” mean the by-laws of a body corporate;

” common property ” means so much of the property for the time being comprised in a Condominium Plan as is not comprised in any unit shown in such plan;

” Condominium Plan ” means a plan which conforms to sub-section (2) of section 3 and includes any schedule attached thereto;

” encumbrance “in relation to any land, means-

(i) a mortgage of the land or of any limited interest therein, whether arising by act of parties or by operation of law;

(ii) a lease of the land or interest;

(iii) a servitude or restrictive covenant binding upon the land; and

(iv) an agreement to convey or recovery the land or to mortgage or lease the land;

” land ” includes an allotment of land the boundaries of which have been delineated by a surveyor or any portion of any such allotment divided or capable of being divided from the remainder of such allotment, any plantation on land, any building, house, parts of houses or buildings, flats or any other erection on land, anything attached to the earth or permanently fastened to any other thing attached to the earth and any right or interest in or over land or any benefit to arise out of any land, space or anything or everything on, over or under it;

” land to which this Act applies ” means land which is not held in undivided shares;

” local authority ” means, in relation to a parcel, the local body governing the area in which the parcel is situated;

” owner ” means-

(a) any person whether corporate or un-incorporate or having title to the land whose title is not qualified by the existence in favour of any other person of any other interest whether vested or contingent other than-

(i) an encumbrance, or

(ii) any interest arising by reason only of any lis pendens, or of any seizure under the Civil Procedure Code or of any order or decree which has not been executed;

(b) in relation to any land which is subject to a trust, includes the trustee of the land if, but only if, the trustee is empowered by the instrument creating the trust to sell the land free of the trust and such power of sale is not otherwise restricted, but does not include a person whose title is in any manner whatsoever subject to defeasance;

“parcel” means the land comprised in a Condominium Plan;

” property ” means the land comprised in a Condominium Plan including buildings thereon;

” regulations ” mean the regulations made by the Minister under this Act;

” unanimous resolution ” means a resolution unanimously passed at a duly convened meeting of the body corporate at which all persons entitled to exercise the powers of voting conferred by this Act or the by-laws are present personally or by proxy at the time of the motion;

” unit ” means an area designated as a unit by a Condominium Plan;

” unit factor ” means the unit factor for a unit as specified or apportioned in accordance with paragraph (b) of sub-section (2) of section 3 or sub-section (5) of section 8, as the case may be.