16-2008 the unit titles act, cap. 416 (1)

8/3/2019 16-2008 the Unit Titles Act, Cap. 416 (1)

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THE UNIT TITLES ACT, 2008ARRANGEMENT OF SECTIONS

PART IPRELIMINARY PROVISIONS

ection Title1. Short title and commencement.2. Application.3. Interpretation.

PART IICREATION AND REGISTRATION OF UNITS

4. Creation afunits.5. Description of unit property.6. Fractional shares. , .7. Procurement ofplauning consent.8. Registration of units.9. Entering of separate interest ofunits in the Register.10. Common property.11. Recording ofunits and issuance of certificate of title.12. Subdivision of units.13. Change of use of units.14. Unit plan to conform to certain requirements.15. Unit plan to be accompanied by certificates.16. Boundaries of units.17. Conversion ofpremises to units.18. Copies of unit plan for assessing taxes rates, etc.

PART IIIPROPRJETARY RJ:GIfTS AND OBLIGATIONSOF Co.oWNERS

19. By-laws.20. Rights and obligations of cwners.21. Incidental rights of owners of common property.22. Easements in favour afunit owner.23. Implied easements, ancillary rights and obligations.24. Exclusive use of areas.25. Covenants benefiting common property.26. Procedure for granting restrictive covenant.27. Liability ofunit owner.


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2 No. 16 Unit rUles

PART IVDISPOSITION

2008

28. Disposition.29. Sale ofunits by a developer.30. Sale by unit owner or chargee.31. Lease ofunits by owner.32. Inheritaoce.33. Mortgage.34. Protection ofmortgagee.

PART VMANAGEMENT OF THE UNIT PROPERTY

35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.

Establishment of an association.Legal status of the association.Developer to provide docwnents to the association.Representation ofmembers of the association.Company-owned units and authorization of representatives.Functions of the association.Management and investment ofmoneys of the association.Dealings affecting common property.Registration of transfers ofcommon property.Voting rights.Voting where an owner ofunit is incapable.Meetings of the association.Formation ofmanagement Committee.Annual general meeting.Appointment ofmanaging agent.By laws of the Association.Establishment of the association register.Information for inclusion in the-association register.Access to the association register.Disclosure of infonnation.Service ofdocuments.Change of address for service.Borrowing powers.General funds.Contributions to general funds.


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No. 16 Unit Titles 2008 3

60. Sinking Funds.61. Annual payments in the sinking Funds.62. Discounts and interest on amounts owing.63. Recovery of amounts owing.64. Liability of co-own. . . .65. Habitual offenders.66. Offences and penalties.

PART VIDISPUTE REsOLlmON AND ENFORCEMENTMECHANISM

67. Dispute resolutions.68. Suits for and against the association.69. Mediation.70. Litigation.71. Appointment of administrator.

PART VIITERMINATION OF THE UNIT STA1t)S

72. Application to terminate unit statu73. Dissolution of the association.74. Application for disposition ofassets. '.75. Notice oftennination of unit status.76. Transfer ofparts of common property.77. New plan required.78. Registration of transfers.79. Winding-up order.

PART VIIIGENERAL PROVISIONS

80. Taxes, rates. charges. etc.gI. Insurance ofcommon property.82. Transformation ofexisting houses.83. Regulations.


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No. 16 Unit Titles

THE UNITED REPUBLIC OF TANZANIA

2008 5

No. 16 OF 2008I ASSENT.

.PresidenJ

AD A.t to provide for lbe management of lbe division ofbuildings into unitsIu.te.... blocks and sections owned individuallyof eo-owned and use ofdesignated areas; to provide for issuance ofeertlfieate of unit titles for lbe individual owne...hip of tbe units,cluste... or section. of lbe building, management and resolution ofdisputes arising from lbe use of .ommon property; to provide foruse of common property by oeeupien other than o'Wnen and toprovide for related matten.

ENACTED by Parliament of the United Republi. ofTanzaniaPART I

PRELIMINARY PROVISIONS

I. Thi.A.t may be .ited as the Unit Titles Act, 2008and shall come into operation on such date as the Ministermay. by notice published in the Gazelle. appuint.2. This Act shall apply to Mainland Tanzania3. In this Act unless the context otherwise requires-"administrator" means an Administrator referred tounder section 72;uassociation" means an association established undersection 35;"cluster(s)"means group ofhouses for residential orbusiness purposes closed together;"Committee" means aManagement Committee of the

Short title"'"__ tAppI icltion


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6 No. 16 Unit Titles 2008

"common area for restricted use" means a commonarea used by one or several co-owners;"common property" means whole or a portion ofproperty that is owned by all owners for their commonuse before or after a units plan is registered, andcommon area shall have the same meaning;"co-owners" means owners ofunits of real property inwhich certain parts of the property are owned incommon;"developer" means a person who on the date theapplication is made to the Registrar for registration ofunits plan is registered in the Register as owner of theunits as shown on the plan;"fractional share" means a division of common areasinto fractions belonging to one or several co-owners,who owns undivided right of ownership in the areaequal to the relative size of ones fractional share;"managing agent" means an agent referred to undersection 49;"Minister" means the Minister responsible for housingmatters;"owner" means an owner of a unit registered underunits plan in accordance with this Act;"Phased Unit Plan" means a unit plan registered insuccessive phases under section 5;"property" means a unit property as provided forunder this Act;"Register" means a register referred under section9(1);"Registrar" means a Registrar of titles as defined Cap ..334under the Land Registration Act;"special resolution" means a resolution of anassociation passed by a majority of the members ofthe association;"unit factor" means a proportional share of a commonarea as detennined by the ownership of individualunits in the unit property;"unit plan" means a plan referred to under section5(2);"unit title" shall have a meaning ascribed to it undersection 5(1);"unit" means a portion of property which is owned by aspecific owner or co-owned for exCIWlivc use by owners.


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No. 16 Unit Titles

PART IICREATION AND REGISTRATION OF UNITS

2008 7

4..(1) Unit property shall be created when certain units ofreal property are owned by co-owners for their exclusive useand certain portions of the same property are held in coownership for cornmon use.(2) A proprietor or developer of an existing orplanned building may divide the building into two or moreunits by registering a Unit plan to the registrar in accordancewith this Act.

(3) The unit plan shall be presented for registration inquadruplicate and shall indicate the number ofunits intowhich the building is divided.(4) The developer in depositing a unit plan with theRegistrar under subsection (2) may indicate whether unit planshall be developed at once or in successive phases.

(5) Where the developer deposits a phased unit plan inaccordance with subsection (2) and (4), he shall indicate atime-table for the development of the various phases.5.-(1) For the purpose of this Act, a unit property shallinclude a single building or several buildings comprising ofsections ofunified site together with the land on which theyare located and all real rights existing in their favour.

(2) The unit property may be in the form of high risestructures or in rows or terraces. or in buildings in a clusterform.

6.-(1) Ownership of the common areas of the propertyshall be divided into fractions belonging to one or several coowners, and every co-owner shall hold an undivided right ofownership in the common areas equal to the relative size ofhis fractional share.

(2) The relative size of each of the fractional shareswith reference to the aggregate of all the fractional sharesshall be determined as the quotient of the physical area of theco-owner's unit divided by the aggregate physical area of allunits of the property and the sum of all fractional share shallequal one a rounding for minor discrepancies.

Creacionof units

DclcripliOllofurdt,ropo",

Fractional,h_


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(3) The common areas of the property shall include-(a) the land, yards, verandas or balconies,

parks and gardens, access ways, stairwaysand elevators, passageways and halls,common service areas, parking and storageareas, basements, fOWldations and mainwalls of properties;

(b) common equipment and apparatus, such asthe central heating and air--conditioningsystems and the piping and wiring; and(c) partitions or walls that are not section of

the foundations and main walls ofabuilding but which separate a unit from acommon area or from another unit.(4) Each unit of the property shall constitute a distinctobject of real property and may be alienated by the owner inwhole or in part, and these shall include, in each case, thefractional share appurtenant to the unit, as well as the right touse the appurtenant restricted common areas, where

applicable.(5) The fractional share appurtenant to a unit may notbe- o _ ,(a) alienated separately from the unit or be theobject of an action in partition; and(b) distinct objects real property for the purposes ofreal property assessment and taxation.(6) Alienation of a divided section of a unit shall haveno legal effect unless the by law of co-ownership and the plan

of the property have been altered prior to the alienation so asto create anew fractional share, describe it, give it a separateproperty number and record the alterations made to theboundaries between contiguous units.(7) The by laws regarding the common areas shallalso apply to common areas for restricted use.7. A developer or proprietor for aunit developmentshall procure planning and building permit consent fromappropriate local government authority as provided for underPart IV of the Urban Planning Act, 2007.

Procurementofphnning~ 1 A < lNo.6of2007


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8.-(1) The Registrar shall, upon an application forregistration of a Unit plan where appropriate:(a) close the part of the Register relating to theconnnon property described in the plan; and(b) open a separate part for each unit described inthe plan, and shall upon the payment of theprescribed fee, issue a certificate of title in

respect of the unit.9.-(1) The provisions of the Land Registration Actrelating to registration techniques, procedures and practices

shall, unless otherwise provided in this Act, apply to theregistration of land dealing with units under this Act.(2) A certificate of title issued in respect ofa unitcomprised in a Unit plan registered under this Act shall, uponregistration of the plan, be deemed to have been issued underthe Land Registration Act.(3) A proprietor ofa unit in respect ofwhich part ofthe Register is opened under section 9 may, subject to thisAct, sell, transfer, lease, charge, or otherwise deal with thatunit in the same manner and fonn as land held under the LandRegistration Act.(4) The common property included in a Unit planpursuant to which titles have heen issued shall.he held by theunit owners as tenants in common, in shares proportional tothe fractional shares of their respective units.(5) A share in the common property mentioned insubsection (1) shall be shown on any title issued, inaccordance with the Land Registration Act.(6) Except as provided for in this Act, a share in thecommon property shan not he disposed ofor become subjectto any charge unless it belongs to the unit of an owner.(7) Subject to subsection (6), any disposition of, orcharge on a lUlit shall operate to dispose of, or charge theshare in the common property without express reference to it.

10.-(1) Any interests affecting the common propertieswhich were entered on the part of the Register closed undersection 8 shan he endorsed on the parts opened under thesection and on the certificates of title issued under that sectionto the extent of the unit factor.

Registrationof units

Enteringof separateinterest ofunits in IheregisterCap. 334

Cap. 334

Cap. 334


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10 No. 16 Unit Titles zoos

(2) Any interest affecting a unit comprised in a unit planregistered under section 8 but not endorsed on a separate partof the Register shall be endorsed on a separate part of theRegister of the unit opened Wlder section 8 and on thecertificate of title issued in respect of that unit.

11.-(1) The Registrar shall, upon opening a separate partof the Register for aunit lIDder section 8, record in that partthe unit factor, and"shall record the unit factor on thecertificate of title issued in respect of the unit.(2) The common property comprised in a registeredunit plan shall be held by the owners of all the units as coowners in shares proportional to the unit factor for theirrespective Wlits.

(3) Subsection (2) of this section shall apply as ifthere were different owners for each of the units where, priorto the sale, the developer is the owner of all the units.(4) A share in the co.!""'on property shall not, subjectto this Act, be disposed ofor become subject to a chargeexcept as appurtenant to the unit of an owner.11.-(1) A proprietor of a unit may, in accordance with thisAct, and with the approval ofa local authority, wbere theproposed changes may have major impact to the co-owners orneighbourhood, subdivide or consolidate his unit byregistering with the Registrar a Unit plan relating to the unitintended to be subdividedor consolidated(2) Except as provided in this section, the provisions

of this Act relating to Unit plans shall apply with all necessarymodifications to a sub-divisioD or consolidation ofunits.(3) A unit comprised in a Unit plan of sub-division orconsolidation shall, upon the registration of a Unit plan ofsub-division or consolidation, be subject to the burden andhave the benefit of any easements that affect units in theoriginal Unit plan.(4) There shall be indicated in the schedoleaccompanying aUnit plan of subdivision or consolidation. theapportionment among the units and the unit factor for the writor units in the original Unit plan.(5) The Registrar shall, before accepting to register aproposed Unit plan of subdivision or consolidation, amend theoriginal unit plan in accordance with regulations made under

-funitsandiswIncc of-ftltle.Subdivisionofunits


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No.1' Unit Titles 2008 II

13.-(1) An owner ofa unit shall not change the use ofhisunit unless-(a) the association has, by special approval,consented to the change ofuse; and(b) where it affects the proposed scheme, theplanning and local authorities have approved thechange ofuse.(2) An owner of a unit shall, where the change ofuse

ofa unit under this section results in modifications to the unitplan. submit 10 the Registrar a modified unit plan.(3) The Registrar shall, on receipt of a modified unitplan under subsection (2), append the unit plan as an aIUlexureto the unit plan of the unit property registered under section 8.

14.-(1) The Registrar shall not register a unit plan as aunit plan unless-(a) the plan, in its heading, is described as a unit plan;(b) thcre is indicated in the plan, a delineation of theexternal surface boundaries of the common propertyand the location of the building in relatio!,1 to them;(c) the plan includes a drawing illustrating the units anddistinguishing the units by numbers or other symbols;(d) the boundaries of each unit are clearly defined in theplan;(e) the approximate floor area of each unit is clearlyshown in the plan;(f) the plan is accompanied by a schedule specifying inwhole numbers the unit factor for each unit in thecommon property;(g) the plan in accompanied by a statement containing'such particulars as are necessary to identify the title tothe common property;(h) the plan is accompanied by the certificates referred tosection 15;(i) the plan is signed by the proprietor or developer;

Change,r=of unib:

Unit plan toconfonn tocertainrequirements


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J2 No. 16 Unit Titles 2008

(j) the plan contains the address at which documents areto be served on the relevant association in accordancewith this Act; and(1


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No. 16 Unit Titles

(a) may, in respect of a building or stroctureconstructed before the commencement of thisAct, or for which a building permit was issuedprior to the commencement of this Act, refuse toissue a certificate if the building or structure doesnot confOnD with this Act; and(b) shalI, in respect of a building or strocture forwhich a building pennit was issued on or afterthe commencement of this Act, issue thecertificate if it is satisfied that the building orstructure conforms with any relevant law.

2008 13

16.-(1) Unless otherwise provided in the unit plan-(a) a boundary ofa unit is described byreference to a floor, wallar ceiling; or(b) where awall located within a unit is a loadbearing wall, the only portion of that floor,wall or ceiling, as the case may be, that

fOnDS part of the unit, including any lathand plaster, paneling, gypswn concretepanels, flooring material or coverings orany other material that is attached, laid,glued or applied to the floor, wall orceiling, as the case may be.

(2) Norwithstanding subsection (I), all doors andwindows ofa unit shall be part of the unit unless otherwiseprovided in the Unit plan.17. Where a building contains premises that are-

(a) rented to a tenant who is not aparty to a saleagreement; and(b) not included in a unit plan,the owner of the premises or a person acting on his behalfshall not sell the premises until the unit plan which includesthe premises registered in accordance with this Act.

18.-(1) An association shall, within twenty eight daysat1er the registration of a unit plan or amendment to the plan,furnish a rating authority with two copies of the unit plancertified by the registrar;

Boundariesof units

Conversionofpmnises10 units

Copies of unitplan forassessing taxes,,.""


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14 No. 16 Unit Titl 2008

(2) For purposes of assessing,levying or recovery ofrate, charges or taxation in relation to the property or a part ofit, the particulars shown on the certified copies of the unit planfurnished under sub-section (I), shall be conclusive proofofthe particulars.

PARTDIPROPRIETARY RIGHTS ANDOaUOATIONS OF CO-OWNERS

19.-(1) The by-laws ofthe association of co-owners,made under section 50, shall contain by laws on theenjoyment, use and upkeep of the private and common areas.including the operation and administration of the coownership and dispute settlement.(2) The by laws under subsection (1) shall also dealwith the procedure of assessment and collection ofcontributions to common expenses.

20.-(1) Subject to the provisions ofthis Act and the bylaws made under this part, each co-owner shall have a right(a) to use his unit and the common areas for his ownneeds as well as for the needs of his family andhousehold;(b) without the approval of the association or anyother co-owner, to transfer his unit to any otherperson by sale, lease, gift, bequest, devise,pledge or mortgage or any other mannerpennitted by law;(c) to participate in the management of theassociation in accordance with the provisions ofthe by-laws;(d) to elect and be elected to the Association'sGoverning Committees;.and(e) to have and exercise other rights that do notcontradict the provision of this Act and any otherwritten law.(2) Each co-owner shall be obliged-(a) to observe the by laws; and(b) to contribute to costs ofmaintaining andoperating the property, including thecontingency fund. in proportion to hisfractional share.

By-laws

Rights andobligations Iof co-owners


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(3) The co-owners who use common areas forrestricted use shall contribute to the costs resulting from thoseportions.

.. (4) No co-owner shall not even in his unit, interferewith the carrying out ofwork required for the conservation ofthe property approved by the association or ofurgent work.(5) A co-.owner who suffers prejudice by the carryingout ofwork, through a pennanent diminution in the value ofhis unit, a grave disturbance or deterioration ofenjoyment,even if temporary, shall be entitled to compensation from-

(a) the association, if the association orderedthe work; or(b) ifit did not, from the co-owners who didthe work.

21.-(1) The owner ofa common property and each unitcomprised in a registered unit plan shall have as appwtenantto it, such rights of-(a) support, shelter and protection;(b) passage or provision ofwater, sewage, d.rainage, gas,

electricity, telecommunication, garbage and air; and(c) any other service ofwhatever nature, over thecommon property and every structure on it as may benecessary for the reasonable use or enjoyment of thecommon property or unit.

(2) The owner of a common property and each unitcomprised in a Unit plan shall have as appurtenant to it-(a) a right to full, free and uninterrupted access; and(b) use of light through or from any windows, doors

or other apertures existing at the date ofregistration of the Unit.

(3) The rights created by this section shall carry withthem all ancillary rights necessary to make them effective as ifthey were easements.(4) Nothing in this section shall affect any commonproperty other than the common property to which the unitplan relates.

Incidentalrights ofowners of~ proP"'>


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22.-(1) After the registration ofa uni1 plan, there shall beimplied in favour of each unit shown on the plan and asappurtenant of the unit-(a) an easement of the subjacent and lateral support oftheunit by the common property and by every other unitcapable of affording support;(b) an easement for the shelter of the unit by the commonproperty and by every other unit capable of affordingshelter;(c) for the passage or provision ofwater. sewerage,drainage, gas, electricity, garbage, artificially heated orcooled air and other services including telephone,radio and television services through or by means ofany pipes, wires, cables or ducts for the time beingexisting within the unit as appurtenant to the common

property and also to every other unit capable ofenjoying those easements; and(d) and any other such-rights as provided for under theLand Act.(2) Where an easement is implied by this section, theowner of any utility service providing a service to thecornmon property or to any unit on it, shall be entitled to thebenefit of any of the easements which are appropriate to the'provision of the services, but not to the exclusion of the owner

of any other utility service.23.-(1) Easements or restrictions to ancillary rights andobligations to use implied or created by this Act or by by-lawsshall take effect and be enforceable without any memorialnotification on the parts of the Register constituting titles tothe dominant or servient tenements.(2) All ancillary rights and obligations reasonablynecessary to make easements effective shall apply in respect

of easements implied by this Act, including the right of anowner of a dominant tenement to enter a servient tenementand replace, renew or restore anything from which thedominant tenement is entitled to benefit.

24. An association may, if its by laws permit, grant alease to any owner pennitting the owner exclusive use of apart of the common property.

E""" " , .in favourof unit.""",

Cap. 113

Impliedeasements,ancillary,rights andobligations

Exclusive" " .f"""


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No. 16 Unit Titles Z008 17

25. An association may, by a special resolution, accept agrant ofeasement or a restrictive covenant benefiting thecorninon property.26.-(1) An association may, by a special resolution, accept

a grant of easement or a restrictive covenant burdening thecommon property.(2) Where a special resolution bas been passed and allpersons having registered interests have consented in writing,the association shall execute the appropriate instrument togrant the easement or covenant.(3) An instrument granting an easement or covenantexecuted in accordance with subsection (2) and a receiptissued by the association for the moneys paid shall be

sufficient proofof the validity of the transaction, receipt of themoneys and discharge of all persons from taking anyresponsibility for the application of the moneys expressed.(4) The Registrar shall not register an instrumentgranting an easement or covenant authorized under this

section unless it is accompanied by copies of the resolutionand consent referred to in subsection (2).27. The owner of a unit shall be liable in respect of aninterest entered on the Unit plan in proporiion to the unitfactor for his unit.

PAT IVDISPOSITION

28.-(1) Subject to the provisions regarding the dispositionsaffecting land under the Land Act, each unit of the propertyconstitutes a distinct object of real property and may be thesubject'ofdisposition by the owner in whole or in part.

(2) The disposition under suhsection ( I) shall includesale, mortgage, transfer, grant, partition, exchange. lease,assign, surrender or disclaimer, creation ofan easement, ausufructuary right or any other servitude or interesl in a rightof occupancy, and in each case, the fractional shareappurtenant to the unit, as well as the right to use theappurtenant restricted common areas, wltere applicable.

Covenantsbenefiting"""""'"ropmyProcedure'0


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29.-(1) A developer shall not sell a unit or proposed unitunless he has delivered to the purchaser a copy of-(a) the sale agreement which shall contain the matters setout in the First Schedule to this Act;(b) the existing or proposed by laws;(c) the existing or proposed management agreement;(d) the existing or proposed recreational agreement;(e) the lease of the common property, if the commonproperty on which the unit is located is held under alease; ,

(I) a certificate of title in respect of the unit or proposedunit;(g) any charge or proposed charge which may affect thetile of the unit; and(h) the Unit plan.(2) A developer shall deliver to the purchaser inrespect of a charge or proposed charge, awritten noticeindicating-

(a) the maximum principal amount under the charge;(b) the maximum monthly payment, if any;(c) the amortization period;(d) the grace period, if any;(e) the pre-payments terms, if any; and(t) the interest rate or the formula, if any, for determiningthe interest rate.(3) Subject to subsection (4), a purchaser of a unit

from a developer may, without incurring any liability fordong so, rescind the sale agreement within ten days afterthe date of its execution.(4) A purchaser may not rescind the sale agreementunder subsection (3), if all documents required to bedelivered to the purchaser under subsection (I) have beendelivered to him not less than ten days before the

execution of the sale agreement by the parties to it.

Sale of unitsby.developer


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No. 16 Unit Titles 2008 19.

(5) Where a sale agreement is rescinded undersubsection (3), the developer sball, within ten days fromreceipt ofwritten notice of the rescission, return to thepurchaser all the money paid in respect of the purchase ofthe unit.

3 0 . ~ ( l ) A coowner or any other personwho is not adeveloper shall, prior to completion of the sale ofhisunits, furnish to a pW'Chaser:(a) copies of the by law;(b) the Association's current budget and financial

statement;(c) a certificate containiug a statement of theamount ofassessments for common expensesagainst the unit; and(d) the amount of any unpaid common expensecurrently due and payable with respect to theunit, and of any other fees or charges payableby the CO-O\Vller of the unit.(2) The association shall provide the documenls andcertificate required under subsection (1) w i ten days ofrequest from a co-owner or such other person, subject toreasonable payment for the costs of repro.duction.(3) A person who acquires a unit, by whatever means.including the exercise of a mortgage right, shall be boundto pay all common expenses due in respect of that unit at

the time of the acquisition; and a purchaser of a unit shallnot be liable for any common expenses, assessments orfees in excess of the amounts shown in the sale certificateof the association prepared in accordancewith the Act.

31.-(1) The association may require an owner whorents his unit to pay to, and maintain with the Association,a deposit which the association may use for-(a) repair or replacement of the property of theAssociation; and

Sale by unitowner or,h_


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(b) maintenance, repair or replacement of any' proper!)'which is subject to a lease granted to the owner ofthe unit under this Act which is damaged,destroy'ed, lost or removed, as the case may' be, by.a person occupying the unit.(2) The owner of a unit shall, within seven day.s aftera tenant begins to rent his m r i ~ give the association noticein writing stating the name of the tenant occupying hisunit and such other particulars as provided in the by laws.(3) The owner of a unit shall, within seven day.s aftera tenant ceases to rent his unit, give the association noticein writing stating that his unit is no longer being rented.(4) An association shall, within twent)' day.s afterreceiving a written notice under subsection (3)-(a) a return the deposit referre


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34.-(1) The association may enter into agreements withmortgagees holding mortgages on any writ by which theassociation agrees 10-

No. 16 Unit Titles 2008 2\-f mortgagee(a) give written notice to the mortgagee of any stage offacts or occurrence which actually or potentiallyaffects adversely the physical or financial condition ofthe property;(b) give written notice of any delinquency in the payment

of common expense by the co-owner ofa unit onwhich the creditor holds a mortgage, or any intentionof the association to enforce its claim to collectcommon expenses against a unit;(c) not to amend any material provision of the by-lawwithout the consent of the mortgagees holdingmortgages on the units;(d) not to take specified actions concerning the propertywithout the approval of the mortgagees holdingmortgages on the units, including and withoutlimitation;(i) conveying or encumbering any of the commonareas;(ii) tennination of the co-ownership; or(iii) pledge or assignment of the future il!come orreceivables of the Association.

(e) upon the request of any mortgagees, to provide a copyof the current financial statements of the Association;or(f) such other matters on which the association andmortgage creditors may agree and which do notcontradict this Act.

(2) Agreements for the benefit ofmortgagees may heincluded in the by-laws in which case, they shall constitutecontractual obligations of the association toward any presentor future mortgagee holding a mortgage on any unit.

(3) Upon acquiring ownership of a writ throughenforcement of its rights under a mortgage, a mortgagee shallsucceed to all rights and obligations ofa coowner.


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22 No. 16 Unit Titles

PART VMANAGEMENT OF TIlE UNIT PROPERTY

2008

35.-(1) There shall be established an association whichshall be body corporate and be given a plan number by theRegistrar.(2) The number to be included in the name of anassociation shall be a number allorted to the units plan by theRegistrar on its registration.(3) Five or more owners of the unit properties mayform an association whose management shall be as provided

fur in this Act.(4) Where there are less than five owners ofa unitproperty the owners shall register to the Registrar by laws onthe use of the common areas and management of the Unit.(5) The Registrar shall have powers to registerassociations under this Act.

36.-(I) An association-(a) shall have perpetual succession; and(b) shall have a common seal; and(c) may sue and be sued in its association name.

(2) The association shall have a common seal whichshall be kept by the Secretary of the association and shallbe authenticated by the signature of a Chainnan or anyother member authorized in writing by the Committee andthe Secretary.37.-(1) A developer shall, within six months after the dateon which the unit plan is r e g i ~ provide the Association.free ofcharge, with documents provided hereunder-(a) all warranties and guarantees on the property of theassociation;(b) struetoral, electrical, mechanical and architectural

EstablishmentofMAssociation

Co'".....

of"'"associalion

-o provid


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No. 16 Unit Titles zoos 23

(d) plan showing the location ofunderground utilityservices and sewer pipes;(e) all agreements to which the association is a party, witha local authority, planning authority, the Governmentor an agent of the government which relate to theproperty of the association; and(f) any other relevant docmnents.

(2) Notwithstanding subsection (I), the associationmay. at any time before it receives a document undersubsection (I), require the developer to provide theassociation with any of the documents specified in subsection(I), and the developer shall provide the document wilhin aperiod of twenty one days, if the document is in hispossession.

38.-( I) This section sball apply if a unit is owned by twoor more persons whether as joint tenants or co-owners.(2) The owners of the unit sball, by a notice in writingto the association, authorize an individual to represent them astheir agent for the purpose of this Act.(3) The unit owner's representative shall be one oftbe

owners. .(4) The Companies Act and the Societies Act shall, for thepurpose oflhis Act not apply.

(5) Where a company is a co-owner oftbe unit, thecompany's own representative may also be authorized as theunit owners' representative.(6) The notice of authorization shall-

(a) be given to the association within fourteendays after the lodgment for registration of theinstrument under which the unit first becomesowned by two or more people;

(b) include the full name and a physical address ofthe representative; and(c) be signed by eacb owner of the unit.

~ t l I t i O J lormembcrsof""lIS5OCilltion

ClIpS,212and 311


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(8) The notice of change of authorization shallinclude the full name and a physical address of the newrepresentative; and be signed by each owner of the unit.(9) The unit owner's representative may change theaddress by a notice in writing to the association of the change.(10) The notice ofchange of address shall be sigoed bythe representative.(II) This section may be enforced in the same way as

an Article of the Association of the company.39.-1(1) This sectioo shall apply if a company is theowner or a co-owner ofa unit.

(2) The company shall, by a notice in writing to theassociation, authorize an individual to !cpresent it as its agentfor the purpose of this Act.

(3) The company's representative shall be an officeror an employee of, or any other person appointed by thecompany.(4) The notice of authorization shall-

(a) be given to the association within fourteendays after the lodgment for registration of theinstrument under which the companybecomes an owner or co-owner of the unit;and(b) include the full name and a physical addressof the representative; and(c) be sigoed by the company.

(5) The company may change its representative by anotice in writing to the association.(6) The notice of change of authorization shall

Comp*"yownolunits Uldauthorization0'~ t a t i v c s


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(7) The company's representative may change theaddress by notice in writing to the association oC the change.(8) the notice under subsection (7) sball be signed bythe representative40.-(1) The functions oCthe association sball be(a) to manage the common property;(b) to keep the common property in a state oCgood repair;(c) to establisb and maintain a fund Coradministrative expenses sufficient, in theopinion of the association, for the control,management .and administration of thecommon property, and Cor the payment oCany insurance premiums, rent and thedischarge of any other obligation of the

association;(d) to determine from time to time the amountsto be paid Cor the purposes oCparagraph (c);(e) to raise amount detennined under paragraph(d) by levying contributions on the propertiesin proportion to unit entitlement of theirrespective units;(I) to insure and keep insured buildings andother improvements on the common propertyagainst fire;(g) to effect such other insurance as required bythis Act, or as it may consider expedient;(h) to pay the premiums in respect oC anypolicies oC insurance effected by it;

(i) to do all things reasonably necessary Cor theenforcement ofany contract of insuranceentered into by it under this section;Gl to comply with any notice or order dulyserved on it by any competent localauthority, planning authority or publicauthority requires to, or work to be

FWletionsof theassociation


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26 No. 16 Unit Titles

(I) to do all things reasonably necessary for theenforcement ofany lease or licence underwhich the land is held;(m)carry out any duties imposed on it by its bylaws made under this Act

2008

(2) The association shall be responsible for enforcementof its by laws and the control, management and administrationof its movable and immovable property and the cornmonproperty.

(3) Without prejudice to subsection (I), the duties ofassociation shall include-(a) to keep in a state ofgood and serviceablerepairs and properly maintain, the movable andimmovable property of the association and thecommon property;(b) to company with notices or orders from anylocal authority, plllJ:llling authority or public

utility authority reqUiring repairs to, or work tobe done in respect of the common property.(4) an association may by special resolution, acquire ordispose of an interest in immovable property.(5) The functions of the association shall, subject to anyrestriction imposed or direction given at a general meeting, be

exercised and performed by the Committee.(6) In addition to the functions specific in subsection

(I), the Committee shall hear complaints from aggrievedmembers of the Association.(7) The associationmay. in accordance with theresolution of owners, distribute any surplus money or other

movable property in its possession and SUIplus to its currentrequirement among the owners according to their unitentitlement41. Notwithstanding subsection (7) of section 40, anassociation may invest any funds not immediately required by

Man&gementand investmentofmoneys ofthe association


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42.-(1) Any instrument evidencing any transfer, lease,grant ofeasement or other dealing affecting common propertyor land that is to become part ofthe common property, may beexecuted by an association, if the t r a n s f e r ~ lease. grant ordealitlgs has beco approved by a specia1 resolution of theAssociation.

(2) A certificate under the Seal of the association slatingthat approval has been given shall be sufficient evidence ofthe approval unless the contrary is proved.(3) The association may, by a special resolution,transfer or lease the common property or any part of it, orgrant an easement on the whole or part: of the commonproperty.(4) No part of the common propertymay be transferredor leased where that part of the common property is used asaccess by persons to one or more units.(5) Where the Committee is satisfied that a specialresolution under subsection (3) was properly passed and thatall persons having registered interest, other than statutory

interests notified to the Association-(a) have, in case of either a transfer or lease, consentedin writing to the release of the interests in respect ofthe land comprise in the proposed transfer; or,(b) have, in the case ofa lease, approved in writing theexecution of the proposed lease, shall execute theappropriate transfer or lease.(6) The transfer or lease executed in accordance withsubsection (3) shall only be valid if-(a) the transfer or lease is valid and effective withoutexecution by any person having an interest in thecommon property; and.


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(b) the receipt by the association of the purcbasemoney, rent, premiums or other money payable tothe association under the tenns of the transfer orlease is 8 sufficient discharge of, and exoneratesthe persons taking onder the transfer or lease fromany responsibility for the application for themoney expressed to have been so received.

(7) The Registrar sban not register a transfer or leaseauthorized under this section unless it is accompanied by acertificate under the Seal of the association to the effect that-(a) the special resolution was properly passed;(b) the transfer or lease conforms with the terms of thetransfer or lease; and(c) all necessary consent were given.(8) The certificate referred to in subsection (7) in favour

ofa pmchaser or lessee of the common property or party to itand endorsed by the Registraf".hall be conclusive proofof thefacts state in the certificate.

43.-(1) An instrument of transfer of any part of thecommon property shall, in addition to any plan that theRegistrar may require to be deposited under this A c beaccompanied by a revised unit plan under the same number.

(2) Where any unit is subject to any existingregistered charge, lease or sublease, the Registtar shall notregister any transfer of the whole or any part or parts of thecommon property until there has been produced to hhn aconsent in writing by every registered chargee which consentshall not be unreasonably withheld, and the lessee and sublessee have been notified.

(3) The Registrar shall register any transfer to whichsubsection (I) refers by-

(a) causing an appropriate record relating to thetransfer to be noted on the revised unit plan andon the relevant part of the Register; and

Registrationof trlInsfersofcommonpropa1y


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44.-(1) The voting rights of the owner ofa unit shallbe determined by the unit fuctor of the unit. (2) Where an owner's interest is subject to aregistered charge, a power ofvoting conferred on any ownerby this Act or by the by-Iaws-

(a) sball, where a special resolution is required, beexercised by the registered chargee first entitledin priority; and(b) in any other case, be exercised by the chargee inpriority ifhe is present or by proxy.

(3) A chargee shall, upon registration of a charge, notifythe association in writing of the charge.(4) A chargee whose charge is entered on the part of theRegister in accordance with subsection (I) of seetion 5, shall

notify the association of the existence of the charge withinthree months after the coming into force.(5) An association shall give notice ofany meeting toevery chargee who has given notice of the charged lUldersubsection (3) and (4).(6) Subsection (2) shall not apply unless the chargee has

given written notice afhis charge to the association.(7) An owner or chargee, as the case may be, mayexercise his right to vote personally or by proxy.45.-(1) In the case of an owner who for any reason isunable to exercise control over his property. any power ofvoting conferred to him by this Act or regulations may,

subject to subsection (2), be exercised, by the guardian or alegal representative.(2) Where the court, on application by the association orby an owner is satisfied that there is no person capable,

willing or a available to vote in respect ofa unit, the court

Voting......

Voting wherean owner ofW'Iitisincapable:


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30N. . 16 Unit Titles 2008 .

(3) Upon making an appointment under subsection (2)the court may make an order if it considers necessary orexpedient to give effect to the appointment

46. Where a developer registers a Unit plan, he shall-(a) within ninety days after the day that fiftypercent of the Wlits are sold; or(b) within one hundred and eighty days afterthe day that the first unit is sold.

Whichever is sooner, convene ameeting of theassociation at which a Conunittee shall be elected.

47.-(1) There shall be, in respect of every association, amanagement Committee elected in accordance with the by-laws.(2) An association shall, within fifteen days after aperson becomes or ceases to be amember of the Committee,file at the Land Registry, a notice in the prescribed formstating the name and address of that person, and the day onwhich that person became or ceased to be a member of theConunittee, as the case may be.(3) All acts done in good faith by the Committee shall,

notwithstanding that any defect in the election or- continuancein office of the Committee or any of its members had beenproperly elected orappointed or continued in office. be valid.~ . - ( I ) A Conunittee shall, once in each year, convenean annual general meeting of the owners.(2) The first annual general meeting of the owners shall

be called within three months after the election of theCommittee.(3) The annual general meeting of the owners shall beconvened by the Conunittee within fifteen months after theconclusion of the immediately preceding annual general

Meetingsof""associlllion

Formation of-'~

"......"'".eeting


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49.-(1) The Committee shall, within tw


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32 No. 16 Un;t Tilles 2008

51.-( I) An association shall establish and maintain aregister that includes-(a) the infonnation mentioned in subsection (2) for eachunit; and(b) the infonnation mentioned in subsection (3).(2) The association shall record on the associationregister the information for each unit as provided hereunder:(a) i f the unit is owned by one person, the full name and

an address of the unit owner;(b) if the unit is owned by two or more people, the fullname and address of the unit owners' representativeand each co-owner;(e) if the unit owner, or one or more co-owners of theunit, is a company, the full name and address afthecompany's representative;(d) if a mortgagee voting'notice has been given for theunit, the full name and address of the mortgagee'srepresentative;(e) if notified to the association, the full name and anaddress of anyone else with an interest in the unittogether with particulars of the interest;(I) the full name of the occupier of the unit, including

the owner or any co-owner. if the o w n ~ or co-owneroccupies the unit.(3) In addition to paragraph (a) to (I) of subsection (2),the association shall record on its register-(a) the full names of the current members;(b) if notified to the association, the full name and an

address of anyone with an easement over thecommon property together with particulars of theeasement.(4) The association register may in addition to hardcopies be kept in electronic fonn.

Establishment0'''''ssocillion, . . ; -


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52.-(1) A unit owner shall give the association a noticein writing of the particulars of any of the events specifiedhereunder within fuurteen days after the event happens-(a) the owner agreeing to transfer the lease of the unit

to someone else;(b) the lodgment for registnrtion, by the unit owner, ofthe instnunent under which the personbecame the

owner;(e) a change in the owner's name arhis address;(d) a change ofoccupancy of the unit; or(e) a vacancy in occupancy of the unit that is expectedto be longer than a continuous period of thirtydays.(2) Subsection (I) may be enforced in the same way asan article of the Association.(3) A person other than a unit owner, may give the

association a notice in writing of the particulars of the eventsprovided hereunder:(a) the person agreeing to transfer an interesi in the lease

ofa unit or the common property to someone else;(b) the lodgment for registration, by the person, of aninstrument under which the acquires an interestin a unit or the common property;

(c) the person acquiring an interest in a unit or thecommon property other than a registered interest;(d) if the person has an interest in a unit or the commonproperty, a change in the full name or address ofthe

person; or(e) a change in the nature of an interest held by the personin a unit or the common property, including theperson's ceasing to have the interest

53.-(1) Upon request by an eligible person for a unit orthe common property, the association shall allow the person,within fourteen days after the request is received, to inspect,and take a copy in the case of-

Informationfor inclusionin dlclSSOCiation.,.;""


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(a) a request by an eligible person for a u n i ~ theinformation on the association register about the unitand any easements with which the common propertyis benefited or burdened; or(b) a request by an eligible person for the commonproperty, the infonnation on the ~ o registerabout any casements with which the commonproperty is benefited or burdened.

(2) The association register shalI be kept in such a statethat ensures that aperson who is entitled to inspect theregister shall not have access to any other information theperson is not entitled to inspect.

54.-(1) Upon request by an eligible person for a unit orthe conunon property the association shall, free or charge.allow the person to inspect and take a copy ofdOGlllDentsprovided hereunderwithin fQ\U!een days after the1equest isreceived-(a) any current insurance policy or policies taken outby the association;(b) the receipts fur all premiumspaid undercurrentpolicies taken out by the Association; and(c) the part of the minutes ofany annual generalmeeting of tile association that records anyexemption resolution on building insurance

requirements.(2) On request by an eligible person for a unit or thecommon property. the association shall, :free ofcharge, givethe person full names and addresses of its current executivemembers within fourteen days after the request is received.55.-( I) A document may be served to the association by

registered mail or by delivering it at the registered physicaladdress or by personal service on a member of the Committeeor a management agent.

(2) A service by association on an owner ofa unit maybe effected by-

Serviceof_.


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(a) personal service;(b) leaving it with an adult personwho normally residesin the unit;(c) fixing it on conspicuous paIl of the unit; or(d) registered mail or any other means prescribed by by-laws of the association.56.-(1) An association may, by a resolution of theCommittee change its address for service.(2) A change made under subsection ( I) sball not take

effect until a notice of cbange is filed with the Registrar in theprescribe fonn.57.-(1) An association may, if authorized by a specialresolution-(a) borrow amounts required for the exercise of itsfunctions; and(b) secure the repayment ofamounts borrowed by it and

the payment of interest on amounts borrowed by it.58.-(1) An association sball establish a fund for thegeneral administration of the association.(2) Notwithstanding subsection (I), an association may,be special resolution, establisbother funds fur any particularpurposes.(3) The purposes for whicb a special purpose fund maybe used may only be changed by special resolution of theassociation.(4) A payment or transfer out of the administrative fundor a special purpose fund may only bemade for a purpose forwhich the fund may be used, unless the association decides

utberwise by special resolution.(5) At each annnal general meeting of an association,

the association shall, by special resolution, approve a budgetfor the administrative fund and each special purpose fund forthe financial year in which the meeting is held.

Borrowing"""'"


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(6) The general funds budget shall state Ibe totalamounts estimated to be paid into and out of the association'sgeneral funds in Ibe financial year in which Ibe annual generalmeeting is held.59.-(1) An associationmay, from time to time,determine the amount required by way of contributions fromits members for the association's general funds(2) The general funds contribotion payable for each unitshall be-(a) Ibe proportioual share for Ibe unit oflbe total generalfunds contributions; or(b) a proportion of Ibe total general funds contributionsworked out in accordance with amethod set out in aspecial resolution.(3) A resolution under paragraph (b) of subsection (2)

may provide Ibat only stated unit owners shall be required topay a particular contribution or a contribution ofparticularkind.(4) A resolution under paragraph (b) ofsubsection (2)may only be amended or revoked by special resolution.(5) An association shall give notice ofa determination

of general funds contribution to each unit owner.(6) The notice shall include-

(a) Ibe general funds contribution payable for Ibeunit;

(b) the general funds contributions payable foreach other unit;(c) Ibe general funds contribution is required, Ibeproportion of the contribution to be paid intoeach fund, and Ibe total amount to be paidinto each fund;(d) Ibe proportion of Ibe total general funds

Contributions..

"""""'"


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(I) if the contribution is payable by installments,the dates when the installments are payable;(g) how the contribution may be paid;(h) details of any discount for early paymentunder section 62; and(i) details of interest payable for late paymentunder section 62.(7) A general fund contribution shall be payable by aunit owner-(a) ifpaid in full, on the date stated in the notice; or(b) ifpayable by insrallments, on the dates stated in the

.notice.6O.-(1) An association shall establishand maintain afund under this section to be known as the sinking fund,unless there are only two or three units in the units plan andthe association has passed a resolution deciding that it shallnot establish or continue to maintain a sinking fund(2) Payments into the sinking fund may only be made-

(a) in accordance with this Act;(b) by transfer from the administrative fund inaccordance with an ordinary (CSOlution; or(c) by transfer from a special purpose fund, inaccordance with the purpose of the fund or aspecial resolution.

(3) An association may only make payments from itssinking fund for the-(a) the painting or repainting ofany building or any

part ofa building that forms part of the commonproperty;(b) the acquisition, renewal or replacement ofpropertythat it holds;(c) the renewal, replacement or repair of fixtures andfittings that are part of the common property;

SinkingF"""


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(e) for any purpose that relates to a defined part ofabuilding; and(I) for any maintenance that is authorized by a specialresolution of theAssociation.(4) An association may only make a transfer from itssinking fund to a general fund if it is passed by theCommittee.61.-(1) An associatiou shall deposit into its sinking fundeach financial year an amount raised by contributions of theunit share of the members of the association equal to fivepercentum of the general funds budget expenditure.(2) An association may, by special resolution at itsannual general meeting, decide to vary the relevant percentagereferred to in subsection (1).(3) In this section-

(a) "unit share", of general funds budgetexpenditure, means the following proportion ofthe expenditure:5% x unit entitlement of all members unitstotal unit entitlement(b) "general funds budget expenditure for afinancial year", means the estimate in thegeueral funds budget for the year, as approvedby the annual general meeting, of the totalamount to be paid out of the association'sgeneral funds in the year excluding transfersinto the sinking fund.(4) The sinking fund contribution payable for each unitfor a financial year and for phased staged development shall

AM."paymentsin the:SinkingFunds


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No.16 Umfllt les 2008 39

(a) the amount is paid to the association before thedate it becomes payable; or(b) for contributions payable by installments, if thecontribution is paid in full on or before the datespecified in the notice for payment in full, or if thecontributions are paid in another way stated in theresolution.(2) Where an amount owing to an association by a unitowner is not paid on or before the ~ t it becomes payable,unless otherwise decided by special resolution, the amountshall bear simple interest until paid at-

(a) an annuai rate ofnot less than the prevailingmarket lending rate;(b) an annual rare of less than the prevailing marketlending rate, ifdecided by special resolution; or(c) an annual rate ofmore than the prevailing marketlending rate, if decided by special resolution(3) Interest on an amount owing to the associationshall fonn part of the fund into which the amount is payable.63.-(1) Where an amount owing to an association isnot paid on or before the date it is payable, the associationmay recover the amount as a debt from the unit owner,together with interest as provided for under section 62.(2) Where the ownership of a unit changes after anamount owing to the association becomes payable, the owner

at the time the amount became payable and each subsequentowner shall be liable both separately and together for theamount, together with interest as provided for under section62.

64.-{I) This section shall apply if-(a) a unit is owned by two or more people whetheras joint tenants or tenants in common; and(b) an amount is recoverable by the association

from the unit owners.

""""'"f........

wiog

liabilityof~


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40 No. 16 Unit Titles ZOO8

(3) Each unit owner shall be liable for a part oftheamount proportional to the value of the owner's interest in theunit.(4) Where any co-owner pays a part of the amount thatismore than the owner's proportional liability. the owner mayrecover the excess from the other owners.65.-(1) The association may refer to a court the case ofan owner or tenant ofa unit who habitually breaches the bylaws.(2) For the purposes of this section, an owner ortenant ofunit shall be deemed to be a habitual offender ifhehas breached the by-laws three or more times within aperiod

of one month.(3) The court may, upon hearing a case referred to itunder this section, impose a !IDe as may be prescribed in theregulations. -66. Any person who contravenes any of theprovisions of this Act commits an offence and shall onconviction be liable to a fine not exceeding five millionshilling or to imprisonment for a tenn not exceeding two

years.

PART VIDISPUTES REsoLLmONS67.-(1) Notwithstanding the provisions regarding thedisputes arising resolution or litigation affecting land UDderthe provisions of the Land Act, dispute under this Act sball bedetermined as provided in the Part.68. The association may sue or be sued in respect ofany matter relating to the common property. common assets,by-laws or involving an act or omission of the association.69. Any dispute among the members of theasS(. iation in respect ofany matters relating to the association

-esolutionsClpJI3Suits for""'......,I


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70. Notwithstanding the provisions of section 69,where mediation has failed, the aggrieved party may lodge hiscase to the High Court Land Division or to the DistrictHousing or Land Tribunal where there is no High Court LandDivisi'on for detennination.

71.-{1) The association, an owner, tenant, mortgageeor other person having an interest in a unit, may apply to thecourt for the appointment of an administrator to exercise thepowers and perfonn the duties of the association.(2) The court may appoin1 an administrator if, in thecourt's opinion, the appointment ofan administrator is in thebest interest of the association.(3) The court may-

(a) appoint the administrator for an indefiniteor set period;(b) set the administrator's remuneration;(c) order the administrator to exercise orperform some or all of the powers andduties of the association; and(d) relieve the association of some or all of

its powers and duties.(4) The remuneration and expenses of the

administrator shall be paid by the association.(5) The Administrator may delegate any ofhispowers. (6) Upon application of the administrator or a personreferred to in subsection (1), the court may remove or replacethe administrator or vary an order under this section

PART VIITERMINATIONOF UNIT STATUS

72.-(1) An association, may apply to the court to

Litigation

Appointmentofadministrator

Applicationto_


41/46


building or land, if it is satisfied !bat it is just andequitable to do so, baving regard to the rightsand interests of the owners as a whole; and(b) for the purpose ofadjusting the effect of theorder as between the corporation, the owners andthe holders of registered interests based onmortgages and as amongst the ownersthemselves, impose any conditions and give anydirections, including directions for the payment

ofmoneys, that it considers appropriate.

(3) An insurer who bas affected insurance on thebuilding or land or any part of it against destruction ofunits ordamage to the building or land may appear in person or byagent or counsel on an application pursuant to this section.73. On the tennination of the unit status ofa building orland pursuant to section 72, the association shall be dissolved.74.-(1) Upon tennination of the unit status under section73, an owner or a holder ofa registered interest based on amortgage may make an application to the court for an orderdirecting the disposition of the assets of the corporation.(2) Subject to subsection (I), the court may make anyorder in respect of the disposition of the assets that itconsiders to be fair and equitable.75.-{ I) On the tennination of the unit status of thebuilding or common property pursuant to section 71, theassociation shall immediately-(a) file a notice of the termination ofunit status in theprescribed manner with the Registrar; and(b) apply to register an interest based on the notice

against the titles issued pursuant to the unit plan.(2) The owners of the units in a unit plan pursuant towhich titles have issued sball be entitled to the commonproperty as tenants in common in shares proportional to theunit factors of their respective units when an interest is

Dissolution orlISSOCilllion

Application fordisposition or"""

Notice: ortermination0'unit status


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No. 16 Unit 11t1es 2008 43

property may by submitted to the Registrar in the prescribedmanner.(


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77. Before a transfer referred to in section 76, theRegistrar may, ifhe considers necessary, require a new unitplan or an amended plan be submitted and be approved.78.-(1) A transfer executed pursuant to section 76 shallnot be submitted for registration unless-(a) the transfer is accompanies by a certificate under the

seal of the association stating that the resolution wasproperry passed and all necessary consentswereobtained; and(b) the interest based on the notice required by section75 has been registered against the titles.

(2) The certificate mentioned in subsection (1) shall beconclusive proofof the facts stated in it in favour ofapurchaser of the common property.(3) Where the commen property is transferred pursuantto section 76, the Registrar shall take necessary steps to give

effect to the transfer.79.-(1) On the application by an association, anymember ofan association or an administrator appointedpursuant to section 71, the court may make an order providingfor the winding-up of the affiIirs of the association.(2) By the same or a subsequent order, the court may

declare the association dissolved on and from a day specifiedin the order.PARTVUGENERAL POVISIONS

80.-(1) For purposes ofassessing rates by any relevantauthority, each unit and common property sbaIl constitut


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81.-(1) The association shall, on its own and on behalfof the OWDelS, obtain and maintain an insurance policycovering the unit and common properties.

(2) The insurance provided for under subsection (I)shall cover ordinary risks, namely-(a) fire;(b) theft;(c) explosions;(d) water escapes; and(e) vandalism and malicious acts, as provided for in therelevant laws;(3) Notwithstanding !he provisions of this section, theinsurance policy under subsection (1) shall not cover-(a) improvements made by a co-owner to his units;(b) damages caused by faulty, improper material orworkmanship.(4) The insurance policy provided for under subsection(1) shall have a clause which prohibits the insurer to terminatethe insurance contract unless a two months notice is given toan association.(5) The amount insured under subsection (1) shall coverthe replacement cost of the property damaged as provided forunder the relevant policy.(6) The amount received under subsection (5) shall beused by the association to repair or replace the damaged unitsor common property. or to offset the cost incurred by theassociation if the association paid for the repair orreplacement(7) The insurance policy provided for under this Partshall not exclude a right of the owner to insure against-(a) loss ofdamaged to the owner's unit; or


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40 "0. Ib umt liIJes 2008(8) The association shall, in addition to an insuranceunder subsection (I), obtain and ntaintain-(a) an insurance against its liability arising from breachofduty as occupier ofcommon property or land thatthe association holds as an asset;(b) an insurance against liability arising from theownership and use ofvarious machineries and otherequipment.

(9) An insurer under the insurance policy requiredunder this Part shall provide to the association with suehcertificates, policies and any other relevant documentsdeclaring the coverage carned by the association on behalfofthe owners.(10) Where a lessee or an owner or any other personresiding in the owner's unit witli the permission or knowledge

of the owner, damages the u n i ~ the amount ofrepairing andthe deductible limit of the insurance policy obtained by theass


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(g) procedures to be followed by an owner ontermination of insurance;(b) offences and penalties under this Act;(i) contribution by owners onmaintenance ofcommon property;0) common propertieswbieb can be 1IllJlSferable;(1

16-2008 the unit titles act, cap. 416 (1)

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