Condominium Property Act, 2001

The Act's short title is the Condominium Property Act, 2001.

Provides interpretation and definitions of terms used in the Act.

The Registrar must not register a plan as a condominium plan unless the plan meets a list of specified requirements (heading, boundary delineation, drawings, unit boundaries and areas, unit factors schedule, title particulars, certificates in section 11, proprietor's signature, service address under section 54, prescribed particulars, and for residential units a delineation of leased areas under section 5(3)).

The local authority may refuse to issue a certificate for certain older or non-conforming buildings, and shall issue a certificate for buildings with permits issued on or after commencement if satisfied they conform with existing law.

The boundaries of a condominium unit are described by reference to the floor, wall or ceiling; for load-bearing walls the unit boundary is the interior finishing material; and all doors and windows are part of the unit unless the condominium plan says otherwise.

If a building contains premises that are rented to a tenant who is not a party to a sale agreement and are not included in a condominium plan.

A corporation must, within twenty eight days after registration of a condominium plan or its amendment, give a rating authority two copies of the condominium plan certified by the Registrar.

A proprietor or developer may divide a building into two or more units by registering a condominium plan with the Registrar; the developer may indicate phased development and must indicate a timetable for phases.

The Registrar must, on application for registration of a condominium plan, close the Register part for the parcel and open separate parts for each unit; on payment of the prescribed fee the Registrar must issue a certificate of title for a unit; the Registrar must preserve the closed part.

A proprietor of a unit may, subject to this Act and where part of the Register is opened under section 4, sell, transfer, lease, charge or otherwise deal with that unit in the same manner and form as land held under the Registration of Titles Act.

Interests affecting the parcel entered on the part of the register closed under section 4 must be endorsed on the separate parts opened under that section and on the certificates of title issued under that section to the extent of the unit factor; interests affecting a unit in a condominium plan registered under section 4 but not endorsed on the separate part must be endorsed on the separate part of the Register for that unit and on the certificate of title for that unit.

The Registrar must record the unit factor in the Register and on the unit's certificate; owners hold common property as tenants in common in shares proportional to unit factors.

A proprietor may subdivide or consolidate a unit by registering a condominium plan with the Registrar, with local authority approval; the Registrar must amend the original plan before registering a subdivision or consolidation; units in the new plan are subject to burdens and benefits of easements from the original plan.

Unit owners must not change the use of their unit unless the condominium corporation unanimously consents and planning and local authorities approve; if the change requires modifications to the condominium plan the owner must submit a modified plan to the Registrar, who must append it as an annex.

Owners of common property and each unit in a registered condominium plan are entitled to listed appurtenant rights (services and protections) and an uninterrupted right to light; those rights include ancillary rights to make them effective, and the section only applies to the parcel covered by the condominium plan.

After registration of a condominium plan, the owner of each unit is entitled to easements of support, shelter and for services appurtenant to the unit.

Owners of utility services that provide service to the parcel or any unit are entitled to benefit from easements in the unit when needed to properly provide that service, but not to the exclusion of other utility owners.

Ancillary rights and obligations necessary to make easements effective apply to easements implied by this Act, including a dominant owner’s right to enter a servient tenement to repair or replace items benefiting the dominant tenement.

A unit owner is liable only for interests entered on the condominium plan and only in proportion to that unit's unit factor.

Upon registration of a condominium plan a corporation is constituted for the building; the corporation consists of unit owners, has perpetual succession and a common seal, may sue and be sued in its corporate name; the Secretary must keep custody of the seal; the common seal must be authenticated by the chairperson or an authorised member and the Secretary; the Companies Act does not apply to such a corporation.

A corporation must manage and maintain common property, establish and fund administration, insure buildings, comply with authorities' repair orders, submit alteration plans to the registrar, and generally carry out duties through its board; it may acquire immovable property by special resolution and distribute surplus funds to proprietors; it must not engage in trading.

Corporations may, by unanimous resolution, transfer, lease or grant easements over common property and may execute instruments evidencing such dealings; the Registrar must not register such transfers or leases unless accompanied by a corporation's certificate under its seal.

The Registrar must register transfers of common property by noting a memorial on the revised unit plan and issuing a certificate of title; the Registrar must not register such transfers if the unit is subject to a registered charge, lease or sublease until written consent from each registered chargee, lessee and sub-lessee is produced.

Chargees must notify the corporation when a charge is registered, certain chargees must notify within three months of entry on the Register, corporations must notify chargees of meetings, specified chargees exercise voting rights in priority, and owners or chargees may vote personally or by proxy.

If no one is able, willing or available to vote for a unit, the court (on application by the corporation or an owner) may or must appoint a person to exercise voting powers; where a unanimous resolution is required the court shall appoint, and in other cases it may do so. The court may also make orders to give effect to such appointments.

Every corporation must have a management board elected according to the rules, and a corporation must file at the Land Registry within fifteen days when a person becomes or ceases to be a board member; acts done in good faith by a board remain valid despite later-discovered defects.

When a developer registers a condominium plan, the developer must convene meetings of the corporation within either 90 days after fifty percent of the units are sold or 180 days after the first unit is sold.

The board must convene an annual general meeting of owners once each year, and must convene an annual general meeting within fifteen months after the previous one.

The board must appoint a managing agent within twenty‑eight days of its election; the Minister must set qualifications by regulation; a managing agent must perform delegated functions; if a managing agent relinquishes office the board must appoint a replacement within twenty days of that relinquishment.

A corporation must make rules for managing units and corporate property; each owner must observe and perform the provisions of those rules.

If an owner or tenant breaches condominium rules they must pay a fine prescribed by the rules; the board may refer unpaid fines to court; fines are civil penalties and the corporation may sue to recover them; specified persons may appeal and an authorised agent may advise on the fine amount.

Managing agents must refer to court owners or tenants who habitually breach the rules; a habitual offender is someone who breaches the rules three or more times within one month; the court may impose a punitive fine as prescribed in the regulations.

A corporation may recover unpaid contributions by action for debt, certify contribution details on application, present and register charges against a unit for unpaid contributions, withdraw the charge on payment, and may delegate functions to the managing agent.

A corporation may charge interest at a rate set out in the rules if permitted to do so by its rules.

A corporation may invest any funds not immediately required by it, subject to the Public Trustee Act and notwithstanding section 21.

Management agents (and corporations where stated) must provide specified condominium information on written request and payment, and must provide insurance policy copies on request; requests must be complied with within twenty one days; aggrieved persons may refer failures to the board.

A developer must provide the corporation, free of charge, with specified documents within six months after the condominium plan is registered; if requested earlier the developer must provide a specified document within twenty one days if it is in the developer's possession.

A corporation may grant a lease to a unit owner allowing exclusive use of part(s) of the common property if the corporation's rules permit.

A corporation may, by a unanimous resolution, accept a grant of easement or a restrictive covenant benefiting the parcel.

Corporation may grant an easement or restrictive covenant by unanimous resolution; if unanimous resolution and written consents from registered interest holders exist the corporation must execute the instrument; such instrument and a receipt suffice as proof and discharge and exonerate persons taking under it; Registrar must not register such instrument unless accompanied by copies of the resolution and consent.

Developers must deliver specified documents and notices to purchasers before selling units; purchasers may rescind within ten days unless documents were given at least ten days before signing; if rescinded the developer must refund all money within ten days of written notice.

A developer (or person acting for the developer) must hold purchasers' payments in trust and immediately deposit them in an interest‑earning trust account licensed under the Financial Institutions Statute 1993 or insure the amount; the developer may be paid parts of the money when works are substantially completed under specified conditions, and (except as subsection (2) provides) the developer is entitled to interest earned.

A corporation may terminate a developer’s management agreement after most units are owned by non-developers; either party may terminate for good cause; termination requires sixty days' written notice to the other party.

Owners must notify the corporation within seven days when a tenant starts or stops renting; the corporation may require and hold a deposit from renting owners and must provide statements and return unused balances within set timeframes.

When two or more corporations use shared facilities they must share the expenses for maintaining them; if one corporation fails to pay, the others may recover the money by court proceedings.

Owners of units at the time judgment is entered are deemed to have guaranteed payment by the corporation; the corporation may join owners as co‑defendants and may recover any jointly awarded amounts as a debt from unit owners.

A court may order a settlement on application and may make orders (such as reinstatement, transfer of interests, directing insurance money or payments, amending the plan, imposing terms) to give effect to the scheme; certain parties may apply and an insurer with relevant insurance has the right to appear.

Termination of condominium status: termination may occur by unanimous resolution; specified parties may apply to a court to terminate; the court may declare termination if it is just and equitable and may impose conditions; an insurer may appear on an application.

When condominium status is terminated the corporation must immediately file a prescribed notice with the Registrar; upon the Registrar's notification unit owners become tenants in common in shares proportional to unit factors; if termination is by unanimous resolution the corporation must dispose of the property by sale or transfer but must not do so unless persons with registered interests have consented in writing or discharged their interests; the Registrar must close and re-open the relevant registers.

A court may, on application by the corporation, an owner of a unit, or a managing agent, order the winding up of the corporation.

Owners of units and the corporation are each liable for rates, charges or taxes levied by a rating authority on their respective property or common property.

Describes permissible methods for serving documents both by a corporation on an owner of a unit and for serving a document on a corporation.

A corporation may change its address for service by a resolution of the board; that change does not take effect until a notice of change of address is filed with the Registrar in the prescribed form.

A person who fails to comply with section 37, 41(4) or 42(1) commits an offence and is liable on conviction to a fine not exceeding one hundred currency points.

Waivers or releases of rights under the Act are void; purchasers retain remedies under the Act in addition to other remedies; purchasers may enforce sale agreements even if the developer failed to comply with the Act.

The Minister may, by statutory instrument, make regulations to carry this Act into effect and may prescribe forms, registration procedures, fees, practice and procedure, and penalties including fines up to 100 currency points and an additional fine up to 5 currency points per day.

The Minister may amend the Schedules to this Act by statutory instrument with the approval of Cabinet.