Sectional Titles 1

(Published 8th November, 2024)

Act

No. 27 of 2024

I assent

DR. LAZARUS MCCARTHY CHAKWERA

PRESIDENT
4th November, 2024

ARRANGEMENT OF SECTIONS
SECTION

PART I—PRELIMINARY
1. Short title and commencement
2. Interpretation

PART II—REGISTRATION OF SECTIONAL PLANS AND UNITS

3. Sub-division of buildings into units
4. Registration of sectional plans
5. Certificate to indicate share in common property.
6. Incidental rights of owners of common property, etc.
7. Liability of owner of a unit
8. Requirements for registration of sectional plans
9. Boundaries of units
10. Certificates to accompany sectional plans
11. Application for subdivision, etc.; of a unit
12. Conversion to units
13. Easements in favour of the owner
14. Easements against the owner
15. Easements or restrictions exist without mention

PART III—ESTABLISHMENT OF ASSOCIATIONS

16. Establishment of an Association
17. Documents to be provided to an Association on registration
2 Sectional Titles No. 27

SECTION

18. Powers of an Association

19. Actions by or against an Association
20. Duties of an Association
21. Liability in tort
22. Dealings affecting the common property
23. Registration of transfers of common property
24. Voting rights
25. Voting where owner incapable of voting
26. Board of management
27. Convening of meetings of an Association
28. Annual meeting
29. Appointment of institutional manager
30. By-laws of an Association
31. Control and management
32. Interest on outstanding account
33. Recovery of money owing
34. Recovery of costs
35. Investments
36. Information on request
37. Insurance
38. Copies of insurance policies
39. Disposition of common property
40. Exclusive use areas
41. Covenants benefitting parcel
42. Procedure for granting restrictive covenants
PART IV—SALE AND RENTAL OF UNITS
43. Sale of a unit
44. Contents of purchase agreement
45. Payment held in trust
46. Limit on security deposit
47. Management agreements
48. Rental of residential units
49. Notice to give up possession
50. Application for order to give up possession.
PART V__TERMINATION OF SECTIONAL TITLE AND SECTIONAL
PROPERTY STATUS
51. Termination of sectional title
52. Termination of sectional property status
No. 27 Sectional Titles 3

SECTION
53. Effect of termination of sectional property status
54. Settlement scheme
55. Transfer of property
56. Dissolution of an Association
PART VI—MISCELLANEOUS
57. Copies of sectional plan to assessing authority
58. Assessment and taxation
59. Applications to Court
60. Right of entry
61. Service of documents and notices
62. Service of notices
63. Change of address for service
64. Fees for documents
65. Writ of execution
66. Offences and penalties
67. Waiver, release, etc.
68. Regulations

An Act to provide for the division of buildings into units to be

owned by individual proprietors and common property to be
owned by proprietors of the units as tenants in common; to
provide for the use and management of the units and common
property; and for matters incidental thereto or connected
therewith

PART I__PRELIMINARY
1.__This Act may be cited as the Sectional Titles Act, 2024, and Short title and
shall come into operation on such date as the Minister may appoint commence-
ment
by notice published in the Gazette.
2.__(1) In this Act, unless the context otherwise requires__ Interpretation
“Association” means the body corporate established under
section 16;
“board of management” means a board of management an
Association referred to in section 26;
“building” means one or more structures on the same parcel;
“by-laws”, in relation to an Association, means the by-laws of
the Association as amended from time to time, and includes by-
laws made in substitution for them;
4 Sectional Titles No. 27

“common property” means so much of a parcel as is not

comprised in a unit shown in a sectional plan, and includes the
physical ground on which the building stands, the walls and
fencing, the outside of the building, the roofs, the walkways,
staircases, stores, garages, parking, pool and garden machinery
rooms, lifts, and meter rooms that service the building and
owners of the individual units;
“Court” means the High Court of Malawi;
“developer” means a person registered under the Real Estate
28 of 2024 Management Act, 2024 as a real estate developer and who,
whether alone or in conjunction with another person, sells or
offers for sale to the public units or proposed units that have not
previously been sold to the public;
“landlord” means the owner of a unit that is being rented and
includes a person acting on behalf of the owner;
“local government authority” means a local government
Cap. 22:01 authority duly constituted under the Local Government Act;
“management agreement” means an agreement entered into by
an Association with unit owners for the general control,
management and administration of__
(a) the movable and immovable property of an Association
associated with the residential units; and
(b) the common property associated with the residential
units;
“owner” means the registered owner of__
(a) the freehold estate in a unit;
(b) the leasehold estate in a unit; or
(c) the customary estate in a unit;
“parcel” means the land comprised in a sectional plan;
“proprietor” means__
(a) in relation to land or a lease, the person named in the
register as the proprietor thereof; and
(b) in relation to any unit, the person or persons registered as
proprietors of an estate in the unit;
“purchase agreement” means an agreement with a developer
whereby a person purchases a unit or proposed unit or acquires a
right to purchase a unit or proposed unit;
No. 27 Sectional Titles 5

“recreational agreement” means an agreement entered into by

an Association that allows__
(a) persons, other than the owners, to use recreational
facilities located on the common property; or
(b) the owners to use recreational facilities not located on the
common property;
“Registrar” means a registrar appointed under the Registered
Land Act; Cap. 58:04

“residential unit” means a unit used or intended to be used for

residential purposes;
“responsible authority” has the meaning ascribed it under the
Physical Planning Act; Cap. 23:01

“sectional plan” means a plan registered in a land registry

which complies with section 8, and includes a plan of a sub-
division registered under section 11;
“sectional property status” means the status of a building that
has fulfilled the conditions of a sectional title;
sectional title” means the separate ownership of a unit within a
building;
“sectional title document” means a document indicating title to
a unit which is registerable under the Registered Land Act; Cap. 58:04

“special resolution” means a resolution__

(a) passed at a properly convened meeting of an Association
by a majority of not less than seventy-five per centum of all the
persons entitled to exercise the voting powers conferred by this
Act or the by-laws, and representing not less than seventy-five
per centum of the total unit factors for all the units; or
(b) signed by not less than seventy-five per centum of all the
persons who, at a properly convened meeting of an
Association, would be entitled to exercise the voting powers
conferred by this Act or the by-laws, and representing not less
than seventy-five per centum of all the total unit factors for all
the units;
“unanimous resolution” means a resolution__
(a) passed unanimously at a properly convened meeting of
an Association by all the persons entitled to exercise the voting
powers conferred by this Act or the by-laws, and representing
the total units; or
6 Sectional Titles No. 27

(b) signed by all persons who, at a properly convened

meeting of an Association, would be entitled to exercise the
voting powers conferred by this Act or the by-laws, and
representing the total units;
“unit” means a space that is situated within a building and
described in a sectional plan by reference to floors, walls and
ceilings within the building together its proportion of the
common property; and
“unit factor”, in relation to a unit, means the unit factor
determined for that unit as shown in the schedule of unit factors
endorsed on a sectional plan registered by the Registrar.
(2) For the purposes of this Act, the terms “easement”, “registry”
and “the register” shall have the meaning assigned to those terms
Cap. 58:04 under the Registered Land Act.

PART II__REGISTRATION OF SECTIONAL PLANS AND UNITS

Subdivision 3.__(1) An existing or planned structure may be designated a
of buildings building containing a unit or part of a unit or divided into two or
into units
more units by the registration of a sectional plan under this Act.
(2) The Registrar shall not register a sectional plan unless__
(a) the sectional plan describes two or more units in it; and
(b) the sectional plan is presented for registration in
quadruplicate.
(3) A sectional plan, together with the interest attached to it, shall
Cap. 58:04 be registered under the Registered Land Act.
Registration of 4.__(1) On the registration of a sectional plan, the Registrar
sectional plans shall __
(a) close the register of the parcel described in it; and
(b) open a separate register for each unit described in the plan;
and
(c) on the payment of the prescribed fee, issue certificate of
land or lease for sectional property in respect of each unit.
(2) Where a certificate was already issued, the registered owner
shall surrender the certificate to the Registrar.
(3) Any interest affecting the parcels which are noted on the
register closed under subsection (1) (a) shall be endorsed, on the
registers opened under subsection (1) (b) and on the certificate of
land or lease for sectional property issued under subsection (1) (c).
No. 27 Sectional Titles 7

(4) No more than one unit may be referred to in one register and
no other unit, except the share in the common property apportioned
to the owner of that unit in accordance with section 5 (2), may be
referred to in the same register.
(5) Any interest affecting an individual unit which is part of a
sectional plan registered under section 3 (1), and which is not
endorsed pursuant to subsection (3) of this section, shall be
endorsed on__
(a) the register of the unit opened under paragraph (b) of
subsection (1); and
(b) the land certificate or certificate of lease for sectional
property issued in respect of the unit under subsection (1) (c).
(6) Notwithstanding any other written law, where a sectional plan
is registered under this Act, the title to a unit comprised in the plan
shall, with effect from the date of the registration of the sectional
plan, be deemed to be issued under the Registered Land Act. Cap 58:04

(7) After a register for a unit is opened pursuant to subsection (1)

the unit may devolve or be transferred, leased, charged or otherwise
dealt with in the same manner and form as land held under the
Registered Land Act, and the provisions of that Act shall apply to Cap 58:04
those dealings in so far as those provisions do not conflict with this
Act.
5.__(1) The Registrar, on opening a register for a unit under Certificate to
indicate share
section 4 (1), shall include in that register the share in the common in common
property apportioned to the owner of that unit under subsection (2), property
and shall include the share in the common property on a certificate
of land or lease for sectional property issued in respect of the unit
under section 4 (1) (c).
(2) The common property comprised in a registered sectional
plan shall be held by the owners of all the units as tenants in
common in shares proportional to the unit factors for their
respective units.
(3) Except as provided in this Act, a share in the common
property shall not be disposed or become subject to a charge, except
as appurtenant to the unit of an owner, and where a chargee
exercises a power of sale on the unit, the sale shall operate to
dispose of or charge that share in the common property without
express reference to it.
8 Sectional Titles No. 27

(4) Where the same person is the owner of all the units,
subsection (2) shall apply as if there were different owners for each
of the units.
Incidental 6.__(1) The common property and each unit on a sectional plan
rights of
owners of
shall have, as appurtenant thereto__
common (a) all such rights of support, shelter and protection, and for the
property, etc.
passage or provision of water, sewerage, drainage, electricity,
garbage, air and all other services of whatsoever nature,
including telephone, radio and television services, over the parcel
and every structure thereon as may, from time to time, be
necessary for the reasonable use or enjoyment of the common
property or unit; and
(b) a right to the full, free and uninterrupted access and use of
light to or for any windows, doors or other apertures existing at
the date of the registration of the sectional plan and enjoyed at
that date.
(2) The rights created by this section shall carry with them all
ancillary rights necessary to make them effective as if they are
easements.
(3) Nothing in this section shall affect any parcel other than the
parcel to which the sectional plan relates.
Liability of 7. Except to the extent that an interest endorsed on a sectional
owner of a plan relates to a particular unit, the owner of a unit shall only be
unit
liable in respect of an interest endorsed on the sectional plan in
proportion to the unit factor for the unit.
Requirements 8.__(1) Every sectional plan presented for registration under this
for Act shall__
registration of
sectional (a) be described in the heading of the plan as a sectional plan;
plans
(b) delineate the external surface boundaries of the parcel, and
the location of the building in relation to the parcel;
(c) bear a statement containing those particulars as may be
necessary to identify the title to the parcel;
(d) include a drawing illustrating the units, and distinguishing
the units by numbers or other symbols;
(e) define the boundaries of each unit;
(f) show the floor area of each unit;
(g) be georeferenced;
(h) have endorsed on it a schedule specifying in whole
numbers the unit factor for each unit in the parcel;
No. 27 Sectional Titles 9

(i) have endorsed on it the address at which documents may be

served on the Association concerned in accordance with section
61; and
(j) contain any other particulars prescribed by the regulations.
(2) Where a sectional plan presented for registration includes
residential units, the plan shall, in addition to meeting the
requirements of subsection (1), delineate to the satisfaction of the
Surveyor General, the boundaries of the areas that are, or may be,
leased to an owner of a residential unit in accordance with section
48.
(3) Every sectional plan presented for registration under this
section shall be accompanied by proof of insurance place in respect
of the parcel.
(4) The Registrar shall, within twenty-one days from the date a
sectional plan is registered, submit to the local government
authority of the area in which the building is located, a copy of the
registered sectional plan.
9. Unless otherwise stipulated in the sectional plan__ Boundaries of
units
(a) a boundary of a unit shall be described by reference to a
floor, wall and ceiling; and
(b) all doors and windows of a unit are part of the unit.
10.__(1) Every sectional plan presented for registration shall be Certificates to
endorsed with, or accompanied by__ accompany
sectional
(a) a certificate of a surveyor as defined under the Land Survey plans
Act stating that the structure shown on the plan is within the Cap. 59:03
external surface boundaries of the parcel which is the subject of
the plan, and if guttering project beyond those external
boundaries, that an appropriate easement has been granted as an
appurtenance of the parcel; and
(b) a certificate of a responsible authority as defined under the
Physical Planning Act stating that the proposed division of the Cap. 23:01
structure as illustrated on the plan has been approved by the
responsible authority.
(2) Where the sectional plan presented for registration is in
respect of building containing units, it shall, in addition to the
certificate required under subsection (1), be endorsed with, or
accompanied by, a certificate of a surveyor as defined under the
Land Survey Act, or such other person as shall be approved by the Cap. 59:03
Surveyor General, stating that the units shown on the plan correlate
with the existing structure.
10 Sectional Titles No. 27

(3) Where an application is made for a certificate under

subsection (1) (b), the responsible authority__
(a) may, with respect to a structure that was constructed prior
to the commencement of this Act, or for which the building
permit was issued prior to the commencement of this Act,
prohibit the issue of the certificate, if it considers it proper to do
so; and
(b) shall, with respect to a structure for which a building permit
was issued on, or after, the commencement of this Act, direct the
issue of the certificate, if it is satisfied that the structure conforms
to__
(i) the development plan, development control by-law,
zoning by-law or land use by-law, as the case may be; and
(ii) any permit issued under that scheme or by-law that
existed at the time the building permit was issued.
Application for 11.__(1) Any proprietor may, with the approval of the responsible
subdivision,
etc.; of a unit
authority, subdivide or consolidate a unit by registering a sectional
plan relating to the unit intended to be so subdivided or consolidated
in the manner provided by this Act for the registration of sectional
plans.
(2) A responsible authority shall not approve subdivision or
consolidation of a unit unless the application meets the requirements
prescribed by the Minister.
(3) On the registration of a sectional plan of subdivision or
consolidation, units comprising the sectional plan are subject to the
obligations, and have the benefit of, any easements affecting those
units in the original sectional plan which are included in the
sectional plan of subdivision or consolidation.
(4) The schedule endorsed on a sectional plan of sub-division or
consolidation as required by section 8 (1) shall apportion among the
units the unit factor or factors for the unit or units in the original
sectional plan that are included in the subdivision or consolidation.
(5) Before registering a proposed sectional plan of sub-division or
consolidation the Surveyor General shall amend the original
Cap. 59:03 sectional plan in accordance with the Land Survey Act.
(6) On registration of a sectional plan of subdivision or
consolidation the land comprised in it shall not be dealt with by
reference to units in the original sectional plan.
(7) Except as provided in this section the provisions of this Act
relating to sectional plans apply with all necessary modifications to
a sub-division or consolidation of units.
No. 27 Sectional Titles 11

12. Where a building contains premises that are not included in Conversion to
a sectional plan, the owner of those premises, or a person acting on units
behalf of the owner, shall not sell those premises as a residential unit
until the sectional plan that includes those premises is registered at
a registry.
13. After the registration of a sectional plan, there is implied in Easements in
respect of each unit shown on the sectional plan in favour of the favour of the
owner of the unit, and as appurtenant to the unit__
owner

(a) an easement for the subjacent and lateral support of the unit
by the common property, and by every other unit capable of
affording support;
(b) an easement for the shelter of the unit by the common
property, and by every other unit capable of affording shelter; and
(c) an easement for the passage or provision of water,
sewerage, drainage, gas, electricity, garbage, artificially heated or
cooled air and other services, including telephone, radio and
television 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.
14.__(1) After the registration of a sectional plan, there is implied Easements
in respect of each unit shown on the sectional plan as against the against the
owner of the unit, an easement, to which the unit is subject__
owner

(a) for the subjacent and lateral support of the common

property, and of every other unit capable of enjoying support;
(b) to provide shelter to the common property, and to every
other unit capable of enjoying shelter; and
(c) for the passage or provision of water, sewerage, drainage,
gas, electricity, garbage, artificially heated or cooled air and other
services, including telephone, radio and television services
through, or by means of any pipes, wires, cables or ducts for the
time being existing within the unit, as appurtenant to the common
property, and also to every other unit capable of enjoying those
easements.
(2) Where an easement is implied under this section, the owner of
any utility service providing a service to the parcel, or to any unit on
it, is entitled to the benefit of any of those easements that are
appropriate to the proper provision of that service, but not to the
exclusion of the owner of any other utility service.
15.__(1) The easements or restrictions as to user implied or Easement or
created by this Act or by-laws take effect, and are enforceable__ restrictions
exist without
(a) without any notification on that part of the register mention
constituting titles to the dominant or servient tenements; and
12 Sectional Titles No. 27

(b) without any express indication of those tenements.

(2) The easements and restrictions referred to in subsection (1)
include all ancillary rights and obligations reasonably necessary to
make easements apply effectively in respect of easements implied
under this Act, and the right of an owner of a dominant tenement to
enter a servient tenement, and to replace, renew or restore anything
the dominant tenement is entitled to benefit from.

PART III__ESTABLISHMENT OF ASSOCIATIONS

Establishment 16.__(1) On the registration of a sectional plan there shall be
of an constituted an Association under the name “The Owners, Sectional
Association
Plan No. ............... (the number to be specified being the number
given to the plan of registration)” (in this Act otherwise referred to
as an “ Association”) .
(2) An Association shall consist of all persons who are__
(a) the owners of units in the parcel to which the sectional plan
relates; or
(b) entitled to the parcel when the sectional arrangement is
terminated under this Act.
(3) An Association shall have perpetual succession and a common
seal.
(4) An Association shall be regulated in accordance with this Act,
and subject to this Act, its by-laws.
Documents to 17.__(1) The owner of the land at the time a sectional plan is
be provided an registered shall, without charge, provide to an Association, not later
Association
than one hundred and eighty days from the day the sectional plan is
registered, the original or a copy of the following documents__
(a) all warranties and guarantees on the movable and
immovable property of the Association, and the common
property for which the Association is responsible;
(b) the structural, electrical, mechanical and architectural
documents required working drawings and specification, and as
built drawings, which exist for the common property for which
the Association is responsible;
(c) the plans that exist showing the location of underground
utility services and sewer pipes;
(d) all written agreements to which the Association is a party;
(e) all certificates, approvals and permits issued by a local
authority, the Government or an agent of the Government which
relate to any property for which the Association is responsible.
No. 27 Sectional Titles 13

(2) An Association may, at any time before it receives a document

under subsection (1), make a written request to the owner of the land
referred to in subsection (1) for a copy of the document, and the
owner shall, within twenty-one days of receiving that request,
provide to the Association without charge a copy of the document if
the document is in the possession of the owner.
18. Subject to this Act, an Association shall have all such powers Powers of an
as are reasonably necessary to enable it to carry out the duties Association
imposed on it under this Act and its by-laws:
Provided that an Association shall not have power to carry on any
trading activities.
19.__(1) An Association shall be capable of suing and being sued Actions by or
in its corporate name and, subject to section 18, of doing anything against an
Association
that a body corporate may do.
(2) Without restricting the generality of subsection (1), an
Association may sue for and in respect of damage or injury to the
common property caused by any person, whether that person is the
proprietor of a unit or not.
20.__(1) An Association shall, subject to this Act, carry out any Duties of an
duty imposed on it under this Act or its bylaws. Association

(2) Without derogating from the generality of subsection (1), an

Association shall__
(a) insure and keep insured buildings and other improvements
on the parcel against loss resulting from destruction or damage
caused by fire, and such other perils as are specified in the by-
laws;
(b) effect such other insurance as it is required by law to effect,
or as it may consider expedient;
(c) pay the premiums in respect of any policies of insurance
effected by it;
(d) do all things reasonably necessary for the enforcement of
any contract of insurance entered into by it under this section;
(e) keep the common property in a state of good repair;
(f) comply with any notice or order duly served on it by any
competent local authority or public body requiring repairs to, or
work to be performed in respect of, the parcel or any building or
improvements thereon;
(g) control, manage, and administer the common property, and
do all things reasonably necessary for the enforcement of the by-
laws; and
14 Sectional Titles No. 27

(h) do all things reasonably necessary for the enforcement of

any lease or licence under which the parcel is held.
(3) An Association shall__
(a) establish and maintain a fund for administrative expenses
sufficient, in the opinion of the Association for the control,
management, and administration of the common property, and for
the payment of any insurance premiums, rent, and the discharge
of any other obligation of the Association; and
(b) determine from time to time the amounts to be paid for the
purposes aforesaid; and
(c) raise amounts so determined by levying contributions on
the proprietors in proportion to the unit entitlement of their
respective units.
(4) An Association may, pursuant to a resolution of the
proprietors, distribute any money or personal property in its
possession and surplus to its current requirements among
the proprietors for the time being according to their unit
entitlements.
(5) For the purposes of effecting any policy of insurance under
subsection (2), an Association shall be deemed to have an insurable
interest on all the buildings and other improvements on the parcel.
(6) Any policy of insurance authorized by this section and
effected by an Association in respect of any buildings or other
improvements on the parcel shall not be liable to be brought into
contribution with any other policy, save another policy authorized
by this section in respect of the same buildings or improvements.
Liability in 21.__(1) Where any proceedings are commenced in tort, or in
tort respect of an alleged breach of any statutory duty, and it is required
by law that proceedings be brought against the owner or occupier of
any particular parcel or premises, the provisions of this section shall
apply, notwithstanding any other written law to the contrary.
(2) For the purposes of any proceedings to which this section
applies__
(a) the common property and each of the units shall be separate
premises; and
(b) where the proceedings are brought in respect of the
common property, an Association shall be deemed to be the
owner and occupier of the common property, and any judgment
which may be awarded to the plaintiff shall be entered against the
Association accordingly:
No. 27 Sectional Titles 15

Provided that, where the cause of action arose for negligence or

unauthorized act or omission of one or more of the proprietors or
former proprietors, an Association may join that proprietor or those
proprietors as co-defendants, and judgment may be given against
the Association and the proprietor or proprietors, jointly and
severally.
(3) The amount of any judgment, including costs, given jointly
and severally as provided in subsection (2) may be recovered as a
debt by an Association from the proprietor or proprietors against
whom judgment is given in an action in any Court of competent
jurisdiction.
(4) Where the defendant in any proceedings to which this section
applies is an Association, the proprietors of the units at the time
when judgment is entered shall be deemed to have guaranteed to the
plaintiff the payment by the Association of the full amount awarded
by way of judgment.
(5) Where an Association in a general meeting so resolves, any
sum payable by it in accordance with the provisions of this section
may be paid out of any general fund established by it.
22.__(1) Any instrument evidencing any transfer, lease, grant of Dealings
easement, or other dealing affecting the common property, or parcel affecting the
common
that is to become part of the common property, may be executed by property
an Association, if the transfer, lease, grant, or dealing has been
approved by unanimous resolution of the Association.
(2) A certificate of an Association that any approval referred to in
subsection (1) has been given shall be sufficient evidence of the
approval in the absence of proof to the contrary.
23.__(1) Every transfer of the whole, or any part of the common Registration
property shall, in addition to any plan that the Registrar may require of transfers of
common
to be deposited under section 3, be accompanied by a sectional plan property
which shall be in substitution for, and shall be deposited under the
same number as, the existing sectional plan, and shall show the
effect of the transfer to the satisfaction of the Registrar.
(2) Where any unit is subject to any existing registered charge,
lease, or sublease, the Registrar shall not register any transfer of the
whole, or any part, of the common property until there has been
produced to the Registrar a consent in writing by every registered
chargee, lessee, or sublessee to the release of the interest in the land
comprised in the transfer; and upon registration of the transfer each
such consent shall operate as a discharge of the charge, or a
surrender of the lease or sublease, as to the land comprised in the
transfer, as the case may be.
16 Sectional Titles No. 27

(3) The Registrar shall register any transfer to which subsection

(1) refers by__
(a) causing the transfer to be noted on the new unit plan and on
the supplementary record sheet; and
(b) issuing in the name of the transferee a certificate of land or
lease for sectional property for the land transferred free from any
incidental rights existing over the land by virtue of any written
law.
Voting Rights 24.__(1) The voting rights of the owner of a unit shall be
determined by the unit factor for the unit.
(2) Where an interest of the owner of a unit is subject to a
registered charge, a power of voting conferred on an owner by this
Act or by-laws__
(a) if a unanimous resolution is required, may not be exercised
by the owner of the unit, but is exercisable by the registered
chargee first entitled in priority; and
(b) in other cases, is exercisable by the chargee first entitled in
priority, and may not be exercised by the owner of the unit where
the chargee is present personally or by proxy.
(3) Subsection (2) does not apply unless the chargee has given
written notice of the charge to an Association.
(4) An owner of the unit or chargee, as the case may be, may
exercise his right to vote personally or by proxy.
Voting where 25.__(1) Where an owner of a unit is incapable of voting, any
owner powers of voting conferred by this Act, or by-laws, may be
incapable of
voting exercised__
(a) in the case of an owner who is a minor, by the guardian of
his estate, or if no guardian has been appointed, by the person
who is for the time being authorized by law to exercise control
over that property; or
(b) in the case of an owner who is for any reason unable to
exercise control over the property, by the person who is for the
time being authorized by law to exercise control over that
property.
(2) Where the Court, on application an Association or by an
owner, is satisfied that there is no person capable, willing or
reasonably available to vote in respect of a unit, the Court__
(a) shall in cases when a unanimous resolution is required by
this Act; and
No. 27 Sectional Titles 17

(b) may, in its discretion, in any other case,

appoint such other person as the Court determines for the purpose
of exercising the powers of voting under this Act or the by-laws.
(3) The Court may, when making an appointment under
subsection (2), make any other order it considers necessary or
expedient to give effect to the appointment.
26.__(1) An Association shall have a board of management (in Board of
this Act otherwise referred to as the “board of management”) which management
shall be constituted as provided by the by-laws of the Association.
(2) An Association shall, within fifteen days of a person
becoming or ceasing to be a member of the board of management,
file at the land registry a notice, in the prescribed form, stating the
name and address of that person, and the day that the person
became, or ceased to be, as the case may be, a member of the board.
(3) The powers and duties of an Association shall, subject to any
restriction imposed, or direction given at a general meeting of the
Association, be exercised and performed by the board of the
management.
(4) All acts done in good faith by a board of management are,
notwithstanding that it is afterwards discovered that there was some
defect in the election or appointment or continuance in office of any
member of the board, as valid as if the member had been properly
elected or appointed or had properly continued in office.
27. A developer who registers a sectional plan shall__ Convening of
meetings of
(a) within ninety days from the day that fifty percent of the an
residential units are sold; or Association

(b) within one hundred and eight days from the day that the
first residential unit is sold,
whichever is sooner, convene a meeting of the Association at
which a board of management shall be elected.
28.__(1) A board of management shall, once every year, convene Annual
an annual general meeting of the owners. meetings

(2) An annual general meeting of the owners shall be convened

by the board of management within fifteen months of the conclusion
of the immediately preceding annual general meeting.
29.__(1) A board of management may appoint an institutional Appointment
manager for the management of the units, the movable and of an
institutional
immovable property of an Association and the common property. manager
18 Sectional Titles No. 27

(2) An institutional manager shall perform such functions as may

be delegated to him by the board of management.
(3) The institutional manager shall be paid such remuneration as
may be specified in the by-laws.
(4) Where an institutional manager relinquishes his appointment
for whatever reason the board of management shall appoint another
institutional manager within twenty-one days.
(5) A local government authority, a judgment creditor of an
Association for an amount of not less than K5,000,000 or any owner
or person having a registered interest in or over the units comprised
in a sectional plan, may apply to Court for the appointment of an
institutional manager to replace an institutional manager appointed
by the board of management under this section.
(6) An institutional manager appointed by the Court under
subsection (5) shall hold office for a period determined by the
Court; and the dismissal of an institutional manager by the Court
terminates any contract between the Association and the
institutional manager.
By-laws of an 30.__(1) An Association may make by-laws to provide for the
Association control, management and administration of the units, the movable
and immovable property of the Association and the common
property.
(2) Any by-laws of an Association made pursuant to subsection
(1) do not take effect until__
(a) the Association has filed a copy thereof with the Registrar;
and
(b) the Registrar has made a memorandum of the filing on the
sectional plan.
(3) An Association may, by a special resolution, amend, repeal or
replace any by-laws.
(4) An amendment, repeal or replacement of by-laws do not take
effect until__
(a) the Association has filed a copy of it with the Registrar; and
(b) the Registrar has made a memorandum of the filing on the
sectional plan.
(5) No by-laws shall operate to prohibit or restrict the alteration
of a unit, or the transfer, lease or other dealing with the unit, or to
destroy or modify an easement implied or created by this Act.
No. 27 Sectional Titles 19

(6) The by-laws bind an Association and the owners to the same
extent as if the by-laws had been signed and sealed by the
Association and by each owner, and contained covenants on the part
of each owner with every other owner and with the Association to
observe and perform all the provisions of the by-laws.
(7) By-laws made by an Association under subsection (1) shall
have no force or effect to the extent to which it purports to prohibit
or restrict__
(a) the keeping on a unit of a dog used as a guide by a
completely blind owner, occupier or resident of the unit; or
(b) the use of a dog as a guide on a unit or common property
by a completely or partially blind person.
(8) An Association is responsible for the enforcement of its by-
laws.
(9) Where an owner or tenant residing in a residential unit
contravenes a by-law, the Association may impose on the owner or
tenant a penalty of not more than K500,000 in respect of a
contravention.
31.__(1) An Association is responsible for the control, Control and
management and administration of its movable and immovable management
property and the common property.
(2) Without derogating from the generality of subsection (1), the
duties of an Association include__
(a) keeping in a state of good and serviceable repair and
properly maintain the movable and immovable property of the
Association and the common property;
(b) complying with notices or orders by any local authority or
public authority requiring repairs to or work to be done in respect
of the parcel; and
(c) paying such charges or rates as may be levied against the
property.
(3) An Association may by a special resolution acquire or dispose
of an interest in immovable property.
(4) An Association may recover from an owner, by an action in
debt, any sum of money spent by the Association__
(a) pursuant to a by-law; or
(b) as required by a local authority or other public authority, in
respect of the unit or common property that is leased to that
owner under section 48.
20 Sectional Titles No. 27

(5) An Association may recover, by an action for debt, as

provided in section 19 (2), any contribution levied that is due and
payable on the passing of a resolution to that effect and in
accordance with the terms of the resolution, from the person who
was the owner at the time when__
(a) the resolution was passed; and
(b) the action was instituted, both jointly and severally.
(6) An Association shall, in relation to the contribution referred to
subsection (5), on the application of an owner or a person authorized
in writing by the owner, certify__
(a) the amount of any contribution of the owner;
(b) the manner in which the contribution is payable;
(c) the extent to which the contribution has been paid by the
owner; and
(d) the interest owing, if any, on any unpaid balance of a
contribution,
and in favour of a person dealing with that owner the certificate
is conclusive proof of the matter so certified.
(7) An Association may register a caution against the title to an
owner’s unit for the amount of a contribution levied on the owner
but unpaid by him.
(8) On the registration of the caution under subsection (7) the
Association has a charge against the unit equal to the unpaid
contribution.
(9) A charge under subsection (7) has the same priority from the
date of registration of the caution as a charge under the Registered
Cap. 58:04 Land Act.
(10) Where an Association has registered a caution under
subsection (7), the Association shall, on the payment to it of the
amount of the unpaid contribution, withdraw the caution.
(11) An Association may delegate any or all of its functions under
this section to an institutional manager, and shall provide such
assistance as is necessary to the institutional manager to perform
such delegated functions.
Interest on 32. An Association may, if permitted to do so by the by-laws,
outstanding charge interest at a rate to be set out in the by-laws on any unpaid
account
balance of a contribution owing to it by an owner.
No. 27 Sectional Titles 21

33. Where any interest referred to in section 32, or a deposit Recovery of

referred to in section 48 (3), is owing by an owner to an Association, money owing
the Association may, in addition to any rights of recovery that the
Association has in law, recover that amount in the same manner as
the recovery of a contribution under section 31.
34. Where an Association registers a caution against the title to a Recovery of
unit under section 31 (7), an Association may recover from the costs
owner of the unit the cost incurred in preparing and registering the
caution and in discharging the caution.
35. An Association may invest any funds not immediately Investments
required by it only in those investments in which a trustee may
invest under the Trustee Act. Cap. 5:02

36.__(1) An Association or institutional manager shall, on the Information

written request of an owner, a purchaser or chargee of a unit, within on request
twenty-one days of receiving the request, provide the person
making the request, any of the following information as requested
by that person__
(a) a statement setting forth the amount of any contribution due
and payable in respect of a unit;
(b) the particulars of__
(i) any action commenced against, and served on, the
Association;
(ii) any unsatisfied judgment or order for which the
Association is liable; and
(iii) a written demand made on the Association for an
amount in excess of K500,000 that, if not met, may result in an
action being brought against the Association;
(c) the particulars of, or a copy of, any subsisting recreational
agreement;
(d) the particulars of or a copy of any subsisting management
agreement;
(e) a copy of the budget of the Association;
(f) a copy of the financial statement of the Association;
(g) a copy of the by-laws of the Association; and
(h) a copy of any minutes of proceedings of a general meeting
of the Association or of the board of management.
(2) Where a request is made under subsection (1) and the
Association or institutional manager fails to comply with the
request, the aggrieved person may seek an order of the Court that
the Association or the institutional manager, as the case may be,
comply with such request.
22 Sectional Titles No. 27

(3) Where an aggrieved person commences proceedings pursuant

to subsection (2), a Court may make an order against the
Association or the institutional manager, as the case may be, that it
comply with subsection (1), and the Court may also__
(a) award a penalty against the Association or the institutional
manager of a sum not exceeding K100,000 per day for each day
exceeding twenty-one days after a request was properly made under
subsection (1); and
(b) make such award as to costs as seems appropriate in the
circumstances.
Insurance 37.__(1) Where a sectional plan has not been registered prior to
the sale of any units, the developer__
(a) shall place insurance on the units, and the common property
against__
(i) loss resulting from destruction or damage caused by fire,
and such other perils as are specified in the by-laws; and
(ii) damages awarded against the developer, the owner of a
unit or the Association in an action for occupier’s liability; and
(b) may place insurance on the units and the common property
or either of them against additional perils other than those
specified in the Act or the by-laws; and for that purpose, the
developer has an insurable interest in the units and the common
property.
(2) Upon the registration of the sectional plan, the insurable
interest in the units and the common property passes to the
Association, and if no insurance on the units and common property
has been effected under subsection (1), the Association__
(a) shall place insurance on the units and the common property
against__
(i) loss resulting from destruction or damage caused by fire,
and such other perils as are specified in the by-laws; and
(ii) damages awarded against the owner of a unit or the body
corporate in an action for occupier’s liability; and
(b) may place insurance on the units and the common property
or either of them against additional perils other than those
specified in the Act or the by-laws.
(3) An Association shall, subject to subsection (4), maintain such
insurance on the units and common property as has been placed
under subsections (1) or (2).
No. 27 Sectional Titles 23

(4) Upon the appointment of an institutional manager as provided

under this Act, the duty to maintain insurance under the terms of
subsection (3) devolves upon the institutional manager.
(5) In complying with subsections (1) or (2) the developer or
an Association, as the case may be, must place insurance which
provides that upon__
(a) the insured property being destroyed or damaged; and
(b) that property being replaced or repaired,
no deduction shall be made from the settlement for depreciation
of the property.
(6) Where insurance has been placed under subsection (1) (b) or
(2) (b), such insurance may be continued by an Association unless
it is prohibited from doing so by a resolution passed at a properly
convened meeting of the Association.
(7) Any payment by an insurer under a policy of insurance for
destruction of or damage to a unit or the common property shall,
notwithstanding the terms of the policy__
(a) be paid to the insurance trustee designated in the by-laws,
or where the by-laws do not designate an insurance trustee, to the
Association; and
(b) subject to sections 54 (3), be used forthwith, for the repair
or replacement of the insured property which was destroyed or
damaged.
(8) Notwithstanding the Insurance Act, or any other policy of Cap. 47:01
insurance, where insurance is placed by both a developer or an
Association, and an owner against the loss resulting from
destruction of or damage to the units or the common property__
(a) the insurance placed by the developer or the Association is
deemed to be first loss insurance; and
(b) the insurance placed by the owner of the unit in respect of
the same property which is insured by the developer or the
Association is deemed to be excess insurance.
(9) A developer, an Association or institutional manager that fails
to comply with this section commits an offence, and shall, upon
conviction, be liable to a fine of K10,000,000, and to imprisonment
for five years.
38. An Association or an institutional manager shall, within Copies of
twenty-one days of receiving a request in writing from an owner or insurance
policies
a person authorized in writing by an owner, or the chargee of a unit,
provide to the person making the request, subject to the payment of
24 Sectional Titles No. 27

such fee as is prescribed in the by-laws, copies of the policies of

insurance placed by the developer or the Association.
Disposition of 39.__(1) An Association may, by a unanimous resolution, transfer
common or lease the common property or any part thereof, or may grant an
property
easement on the whole or part of the common property:
Provided that no part of the common property may be transferred
or leased, where such part of the common property is used for
personal access to one or more units.
(2) Where the board of management is satisfied that the
unanimous resolution was properly passed and that all persons
having registered interests in the parcel and all other persons having
interests, other than statutory interests, notified to an Association
have__
(a) in the case of either a transfer, consented in writing to the
release of those interests in respect of the land comprised in the
proposed transfer; or
(b) in the case of a lease, approved in writing of the execution
of the proposed lease,
the Association shall execute the appropriate transfer or lease.
(3) A transfer or lease executed in accordance with subsection (2)
is valid and effective without execution by any person having an
interest in the common property, and the receipt of an Association
of the purchase money, rent, premiums or other money payable to
the Association under the terms of the transfer or lease is a sufficient
discharge of, and exonerates the persons taking under the transfer or
the lease from, any responsibility for the application of the money
expressed to have been so received.
(4) The Registrar shall not register a transfer or lease authorized
under this section unless it has endorsed on it, or is accompanied by
a certificate of an Association stating that -
(a) the unanimous resolution was properly passed;
(b) the transfer or lease conforms with the terms of it; and
(c) all necessary consents were given.
(5) The certificate referred to in subsection (4) is__
(a) in favour of a purchaser or lessee of the common property,
or party to it; and
(b) in favour of the Registrar,
conclusive proof of the facts stated in the certificate.
No. 27 Sectional Titles 25

(6) On the filing for registration of a transfer or lease of common

property, the Registrar shall register the transfer or lease in
accordance with the Registered Land Act. Cap. 58:04

40. An Association may, if its by-laws permit it to do so, grant a Exclusive use
lease to an owner of a residential unit permitting that owner to areas
exercise exclusive possession in respect of an area or areas of the
common property.
41. An Association may, by a unanimous resolution, accept, on Covenants
behalf of the owners, a grant of easement or a restrictive covenant benefiting
parcel
benefiting a parcel.
42.__(1) An Association may, by a unanimous resolution, Procedure for
execute, on behalf of the owners, a grant of easement or a restrictive granting
restrictive
covenant on the parcel. covenant
(2) Where a board of management is satisfied that a unanimous
resolution was properly passed and that all persons having interests
in the parcel and all other persons having interests, other than
statutory interests, that have been notified to an Association, have
consented in writing to the release of those interests in respect of the
land comprised in the proposed disposition, the Association shall
execute the appropriate instrument to grant the easement or
restrictive covenant.
(3) An instrument granting an easement or restrictive covenant
executed in accordance with subsection (2) is valid and effective
without execution by any person having an interest in the parcel,
and the receipt of an Association of any moneys payable to the
Association under the terms of the grant of easement or restrictive
covenant is a sufficient discharge of, and exonerates all persons
taking under the instrument from, any responsibility for the
application of the moneys expressed to have been so received.
(4) The Registrar shall not register an instrument granting an
easement or restrictive covenant authorized under this section
unless it has endorsed on it, or is accompanied by, a certificate of an
Association stating that the unanimous resolution was properly
passed, and that all necessary consents were given.
(5) The certificate referred to in subsection (4) in favour of a
person dealing with an Association under this section shall be
conclusive proof of the facts stated in the certificate.
(6) The Registrar shall register the instrument granting the
easement or restrictive covenant by noting it on the sectional plan in
the prescribed manner.
26 Sectional Titles No. 27

PART IV__SALE AND RENTAL OF UNITS

Sale of a unit 43.__(1) A developer shall not sell or agree to sell a unit or
proposed unit, unless there has been delivered to a purchaser a copy
of__
(a) the proposed purchase agreement;
(b) the by-laws or proposed by-laws;
(c) any management agreement, or proposed management
agreement;
(d) any recreational agreement or proposed recreational
agreement;
(e) if the parcel on which the unit is located is held under a
lease, the lease of the parcel;
(f) the certificate of sectional property in respect of the unit, or
proposed unit, which has been, or will be, issued under section 4
(1) (c);
(g) any charge that affects, or proposed charge that will affect,
the title to the unit or proposed unit or, in respect of that charge
or proposed charge a notice prescribed under subsection (2); and
(h) the sectional plan or proposed sectional plan.
(2) A developer shall deliver to the purchaser in respect of a
charge, or proposed charge, a written notice stating__
(a) the maximum principal amount available under the charge;
(b) the maximum monthly payment that may be paid under the
charge;
(c) the amortization;
(d) the term of the charge;
(e) the interest rate or the formula, if any, for determining the
interest rate; and
(f) the pre-payment privileges, if any.
(3) Subject to subsection (4), a purchaser under this section may,
without incurring any liability for doing so, rescind the purchase
agreement within ten days from the date the purchase agreement
was executed by the parties.
(4) A purchaser may not rescind the purchase agreement under
subsection (3) if all the documents required to be delivered to the
purchaser under subsection (2) have been delivered to the purchaser
not less than ten days prior to the execution of the purchase
agreement by the parties.
No. 27 Sectional Titles 27

(5) Where a purchase agreement is rescinded under subsection

(3), the developer shall, within ten days from the receipt of a written
notice of the rescission by the purchaser, return to the purchaser all
of the money paid in respect of the purchase of the unit.
(6) A purchaser shall not resell a unit until the property is fully
developed, and a certificate of occupation is issued.
44. A developer who enters into a purchase agreement shall Contents of
include in the agreement the following__ purchase
agreement
(a) a notification that is at least as prominent as the rest of the
contents of the agreement, and that is printed in red ink on the
outside front cover or on the first page of the agreement stating as
follows__
“The purchaser may, without incurring any liability for
doing so, rescind this agreement within ten days of its
execution by the parties to it, unless all of the documents
required to be delivered to the purchaser under section 43 have
been delivered to the purchaser not less than ten days prior to
the execution of this agreement by the parties to it.”
(b) a description, drawing or photograph showing__
(i) the interior finishing of all major improvements to the
common property located within a building;
(ii) the recreational facilities, equipment and other amenities
to be used by the person residing in the residential units;
(iii) the equipment to be used for the maintenance of the
common property;
(iv) the location of roadways, walkways, fences, paving
areas and recreational facilities;
(v) the landscaping; and
(vi) the exterior finishing of the building as it will exist when
the developer has fulfilled his obligations under the agreement;
(c) the amount or estimated amount of the monthly unit
contributions in respect of a residential unit; and
(d) the unit factor of the unit, and the basis of unit factor
apportionment for all units comprised in the sectional plan.
45.__(1) A developer, or a person acting on behalf of the Payment held
developer, shall hold in trust all the money paid by a purchaser in trust
under a purchase agreement, other than rents, security deposits or
mortgage advances, and__
(a) if the improvements to the unit and the common property
are substantially completed, the money may be paid to the
developer on delivery of the title documents to the purchaser; or
28 Sectional Titles No. 27

(b) if the improvements to the unit are substantially completed,

but the improvements to the common property are not
substantially completed__
(i) not more than fifty percent of that money less the interest
earned on it may be paid to the developer on delivery of the
title document to the purchaser; and
(ii) on the improvements to the common property being
substantially completed, the balance of that money, and all the
interest earned on the total amount held in trust in respect of
that purchase agreement, may be paid to the developer.
(2) The developer, or a person acting on behalf of the developer,
who receives money that is to be held in trust under subsection (1),
shall forthwith deposit the money into an interest earning trust
account maintained in a financial institution licensed under the
Cap. 44:01 Banking Act.
(3) Where money is being held in trust under subsection (1), and
the purchaser of the unit takes possession of, or occupies the unit
prior to receiving the title document, the interest earned on that
money from the day the purchaser takes possession or occupies the
unit to the day the purchaser receives the title document shall be
applied against the purchase price of the unit.
(4) Subject to section (3), the developer is entitled to the interest
earned on money held in trust under this section.
(5) For the purposes of this section, improvements to the unit or
the common property, as the case may be, are deemed to be
substantially completed when the improvements are ready for use or
are being used for the purpose intended.
(6) The provisions of this section shall not apply if the purchaser
does not perform the obligations of the purchaser under the
purchase agreement.
Limit on 46. Where a purchaser of a unit prior to receiving title to the unit,
security rents that unit from the developer, the amount that the developer
deposit
may charge the purchaser as a security deposit in respect of the unit
shall not exceed one month’s rent charged for the unit.
Developer’s 47.__(1) Subject to subsection (2), an Association may,
management notwithstanding anything contained in a developer’s management
agreements
agreement or a collateral agreement, terminate a developer’s
management agreement at any time after its board of management
is comprised of persons who were elected to the board after the
majority of the units were owned by persons other than a developer.
(2) A developer’s management agreement__
No. 27 Sectional Titles 29

(a) may not be terminated under subsection (1) without

reasonable cause until two years have elapsed from the day that
the agreement was entered into, except when the agreement
permits termination at an earlier date; and
(b) may only be terminated under subsection (1) on an
Association giving sixty days’ written notice to the developer of
its intention to terminate the agreement, and the Association is not
liable to the developer by reason only of the agreement being
terminated under this section.
(3) For purposes this section “developer’s management
agreement” means a management agreement that was entered into
by an Association at time when its board of management was
comprised of persons who were elected to the board while the
majority of units were owned by a developer.
48.__(1) An owner of a residential unit shall not rent out the unit Rental of
without giving an Association written notice of intention to rent out residential
the unit, setting forth__
units

(a) the address at which the owner may be served with a notice
given by the Association under section 49 or an order referred to
in section 50; and
(b) the amount of rent to be charged for the unit.
(2) Where the owner of a residential unit rents [out] the unit, it
shall be a condition of that tenancy that, notwithstanding anything
in the tenancy agreement, the persons residing in the unit shall not -
(a) cause damage to the movable or immovable property of an
Association or the common property; or
(b) contravene the by-laws.
(3) An Association may require an owner who rents out a
residential unit to pay to, and maintain with the Association, a
deposit, not exceeding one month’s rent, that the Association may
use for__
(a) the repair or replacement of the movable and immovable
property of the Association, or of the common property; and
(b) the maintenance, repair or replacement of any common
property that is subject to a lease granted to the owner of the unit
under section 39,
that is damaged, destroyed, lost or removed, as the case may be,
by a person residing in the rented unit.
(4) Where owner of a residential unit rents out the unit, the owner
shall, within twenty-one days from the commencement of the
tenancy, give an Association written notice of the name of the tenant
residing in the unit.
30 Sectional Titles No. 27

(5) Where the owner of a residential unit ceases to rent [out] the
unit, the owner shall, within twenty-one days of ceasing to rent his
unit, give an Association written notice that the unit is no longer
rented out.
(6) An Association shall, within twenty-one days of receiving a
written notice under subsection (5)__
(a) return to the owner the deposit referred to in subsection (3);
(b) if the Association has made use of the deposit for one or
more of the purposes referred to under subsection (3), deliver to
the owner__
(i) a statement of account showing the amount used; and
(ii) the balance of the deposit not used, if any; or
(c) if the Association is entitled to make use of the deposit,
deliver to the owner an estimated statement of account showing
the amount it intends to use, and within sixty days after delivering
to the owner the estimated statement of account, deliver to the
owner__
(i) a final statement of account showing the amount used;
and
(ii) the balance of the deposit not used, if any.
Notice to give __
49. (1) An Association may give a tenant renting a residential
up possession unit notice to give up possession of that unit, if the tenant residing
in the unit__
(a) causes damage, other than normal wear and tear, to the
movable or immovable property of the Association or to the
common property; or
(b) contravenes a by-law.
(2) Where an Association gives a tenant a notice under subsection
(1)__
(a) the tenant shall give up possession of the residential unit;
and
(b) notwithstanding any written law or anything contained in
the tenancy agreement between the tenant and the landlord, the
tenancy agreement terminates on the last day of the month
immediately following the month in which the notice is served on
the tenant.
(3) A notice given under subsection (1) shall be served on the
tenant and the landlord.
Application 50.__(1) Where a tenant is given notice under section 49 (1) to
for order to give up residential unit and does not give up possession, an
give up
possession Association or the landlord, as the case may be, may make an
application to the Court for an order requiring the tenant to give up
possession of the unit.
No. 27 Sectional Titles 31

(2) The application to the Court under subsection (1) shall be

supported by an affidavit__
(a) indicating service of the notice under section 49 to give up
possession;
(b) stating the reasons for giving the tenant a notice to give up
possession;
(c) stating the failure of the tenant to give up possession and
the reasons given, if any, for that failure; and
(d) stating any other relevant facts.
(3) The Court may, on hearing an application made under this
section, order the tenant to give up possession of the residential unit
by a date specified in the order, and may make any other order that
it considers proper in the circumstances.
(4) Where an Association is granted an order under subsection
(3), it shall serve a copy of that order on the tenant and the landlord.
(4) Where a landlord is granted an order under subsection (3), it
shall serve a copy of that order on the tenant.

PART V__TERMINATION OF SECTIONAL TITLE AND SECTIONAL

PROPERTY STATUS
51. The owners of a sectional title of a building may terminate Termination
their sectional title by a unanimous resolution. of sectional
title
52.__(1) Where, in accordance with section 51, the sectional title Termination
of a building is terminated, the sectional property status of a of sectional
property
building shall be terminated by a unanimous resolution of the status
owners.
(2) Where the sectional property status of a building is not
terminated in accordance with subsection (1), an Association, an
owner, a registered chargee of a unit or a purchaser under an
agreement for sale of a unit, may make an application to the Court
for the termination of the sectional status of a building.
(3) The Court may, on an application under subsection (2),
terminate the sectional property status of the building, if the Court
is satisfied that having regard to the rights and interests of the
owners as a whole, or the registered chargee or purchaser under
agreement for sale of units, it is just and equitable to do so.
(4) Where the sectional property status of a building is terminated
pursuant to subsection (3), the Court may, by order, impose any
conditions and give any directions, including directions for the
payment of money, that the Court thinks fit for the purpose of
adjusting, as between an Association and the owners, and as
32 Sectional Titles No. 27

amongst the owners themselves, the effect of terminating the

sectional property status of the building.
(5) Where an application to terminate the sectional property
status of a building is made under subsection (3), an insurer who has
effected insurance on the building, or a part of it, being insurance
against destruction of units or damage to the building, has the right
to appear in person or by agent or by a legal practitioner.
Effect of 53.__(1) Where the sectional property status of the building is
termination terminated under section 52, an Association shall forthwith file with
of sectional
property the Registrar a notice of the termination in the prescribed form.
status
(2) The Registrar shall, on the receipt of a notice referred to in
subsection (1), make a notification in respect of the notice on the
sectional plan in the prescribed manner, and on the notification
being made, the owners of the units in the plan are entitled to the
parcel as tenants in common in shares proportional to the unit
factors of their respective units.
Settlement 54.__(1) Where a building is damaged but the sectional property
of scheme status is not terminated pursuant to section 52 or 55, an Association,
an owner, a registered chargee of a unit or a purchaser under an
agreement for sale of a unit may make an application to the Court to
settle a scheme in accordance with subsection (2).
(2) Where on an application is made under subsection (1), the
Court may, by order settle a scheme, including provisions for__
(a) the reinstatement in whole or in part of the building; and
(b) the transfer of the interests of owners of units that have
been wholly or partially destroyed to the other owners in
proportion to their unit factors.
(3) The Court may, in the exercise of the powers conferred by
subsection (2), make such further orders as it considers necessary or
expedient for giving effect to the scheme, including orders__
(a) directing the application of insurance money received by an
Association in respect of damage to the building;
(b) directing payment of money by an Association or by the
owners or by one or more of them;
(c) directing such amendment of the sectional plan, as the
Court thinks fit, so as to include in the common property any
accretion to the property; and
(d) imposing any terms and conditions as the Court thinks fit.
No. 27 Sectional Titles 33

(4) Where an application to settle a scheme is made under

subsection (2), an insurer who has effected insurance on the
building, or any part of it, being insurance against destruction of
units or damage to the building, has the right to appear in person or
by agent or a legal practitioner.
55.__(1) Where the sectional property status of a building is Transfer of
terminated an Association may, by a unanimous resolution, transfer property
the parcel or any part of it.
(2) When the board of management is satisfied that the
unanimous resolution was properly passed, and that__
(a) all persons having registered interests in the parcel; and
(b) all other persons having interests, other than statutory
interests, which have been notified to the Association, have
consented in writing to the release of the interests in respect of the
land comprised in the proposed disposition,
the Association shall execute the appropriate transfer.
(3) A transfer executed pursuant to subsection (2) is valid and
effective, without execution by any person having an interest in the
parcel, and the receipt of an Association of the purchase money or
other moneys payable to the Association under terms of the transfer
is sufficient discharge of, and exonerates the person taking under the
transfer from, any responsibility for the application of the money
expressed to have been received.
(4) The Registrar shall not register a transfer executed pursuant to
this section__
(a) unless the transferor has endorsed on it, or is accompanied
by, a certificate under the seal of the Association that the
unanimous resolution was properly passed, and that all necessary
consents were given; and
(b) until the notification required by section 23 has been made
on the sectional plan.
(5) A certificate issued pursuant to subsection (4)__
(a) in favour of a purchaser of the parcel; and
(b) in favour of the Registrar,
is conclusive proof of the facts stated in the certificate.
(6) Where a parcel is transferred by an Association pursuant to
this section, the Registrar__
(a) shall close the registers relating to the units, and reopen the
register closed under section 4 (1); and
(b) shall register the transfer.
34 Sectional Titles No. 27

Dissolution 56.__(1) An Association may be dissolved by unanimous

of an resolution of the owners.
Association
(2) The Court may, on an application by an Association, a
member of the Association, or an institutional manager__
(a) order the winding up of the affairs of an Association; and
(b) by the same or subsequent order, declare an Association
dissolved on a date specified in the order.

PART VI__MISCELLANEOUS
Copies of 57.__(1) An Association shall, within twenty-eight days after the
sectional plan registration of a sectional plan or an amendment thereto, furnish to
to assessing
authority the local government authority two copies of the sectional plan or
an amendment thereto, and all certified endorsements thereon, as
prescribed by the regulations.
(2) For all purposes in relation to the making, levying,
imposition, assessment or recovery of rates, charges or taxes in
relation to a parcel or a part of it__
(a) the particulars shown on the certified copy of the sectional
plan or any amendment thereto furnished pursuant to subsection (1)
are conclusive proof of those particulars; and
(b) the production by an assessing authority of what purports to
be a certified copy of a sectional plan or an amendment thereto
furnished pursuant to subsection (1) is prima-facie proof that it is a
certified copy so furnished.
(3) An Association that fails to comply with subsection (1),
commits an offence and shall, on conviction, be liable to__
(a) a fine of K5,000,000; and
(b) where the offence continues, a fine of K100,000 for each day
the Association fails to comply.
Assessment 58. For the purposes of assessment of rates by a local
and taxation government authority__
(a) each unit and the share in the common property appurtenant
to it constitutes a separate parcel of land and improvements; and
(b) the common property does not constitute a separate parcel
of land or improvements.
Applications 59.__(1) An application to the Court under this Act shall be__
to Court
(a) by petition; and
(b) served on the persons whom the Court directs.
No. 27 Sectional Titles 35

(2) The Court may direct the trial of an issue, and may give any
directions as to all matters, including filing of pleadings, that appear
necessary and proper for the final hearing of the application.
(3) The Court may, from time to time, vary any order made under
this section.
60. Where a local government authority or public authority, or a Right of
person authorized by either of them, has a statutory power to enter entry
on a parcel or any part of a parcel, the authority or person authorized
by the authority is entitled to enter on a parcel or any other part of
the parcel to the extent necessary or expedient to enable the
authority or authorized person to exercise a statutory power.
61.__(1) Any document, including any written notice or request, Service of
required to be served on an Association under this Act may be notices
served on the Association__
(a) by leaving it at or by sending it by registered post__
(i) to the address shown on the sectional plan; or
(ii) if a change of address for service has been filed under
section 63 (2), to the address for service shown on the latest
notice filed; or
(b) by personal service on a member of the board of
management.
(2) For the purposes of this section “document” includes a
summons, notice, tax notice, order and other legal process.
62.__(1) Any notice required to be served by an Association on Service of
an owner of a residential unit under this Act may be served by documents
and notice
personal service at, or by registered post sent to, the address given
to the Association under section 48.
(2) Any notice required to be served by an Association on a tenant
under this Act may be serve__
(a) by personal service; or
(b) if the tenant cannot be served personally by reason of his
absence from the premises or by reason of his evading service__
(i) by giving it to an adult person who is residing with the
tenant;
(ii) by posting it up in a conspicuous place on some part of
the premises; or
(iii) by sending it by registered post to the tenant at the
address where he resides.
63.__(1) An Association may by resolution of the board of Change of
management change its address for service. address for
service
36 Sectional Titles No. 27

(2) A change in the address for service referred to in subsection

(1) does not take effect until a notice of the change of address, in the
prescribed form, is filed with the Registrar.
Fees for 64. An Association may charge any person a reasonable fee to
documents compensate it for the expenses it incurs in producing and providing
a document required under this Act.
Writ of 65. If a judgment is obtained against an Association, a writ of
execution execution in respect of the judgment may be registered against the
sectional plan.
Offences and 66.__Any person who fails to comply with any provision of this
penalty Act for which no penalty has been prescribed commits an offence
and shall, on conviction, liable to__
(a) in case of an individual, a fine of K5,000,000, and to
imprisonment of two years; or
(b) in the case of body corporate or partnership, to a fine of
K10,000,000.
Waiver 67.__(1) This Act applies notwithstanding any agreement to the
release, etc. contrary and any waiver or release given of the rights, benefits or
protections provided by or under this Act shall be void.
(2) A remedy that a purchaser of a residential unit has under this
Act is in addition to any other rights or remedies that the purchaser
has at law.
(3) A purchase agreement may be enforced by a purchaser
notwithstanding that the developer failed to comply with this Act.
Regulations 68.__(1) The Minister may make regulations for the better
carrying out into effect of the provisions of this Act.
(2) Without derogation from the generality of subsection (1), the
Minister may make regulations__
(a) in respect of forms to be used for the purposes of this Act
including the form of certificates of title to units;
(b) respecting the manner of registering sectional plans;
(c) prescribing the fees to be paid for any process, procedure or
function required or permitted to be done under this Act;
(d) prescribing the form of by-laws that may be adopted by an
Association; and
(e) concerning all matters that by this Act are required or be
permitted to be prescribed or that are necessary or convenient to
be prescribed for carrying out or giving effect to this Act.
No. 27 Sectional Titles 37

(3) Notwithstanding the provisions of section 21 (e) of the

General Interpretation Act, regulations made under subsection (1)
may provide for offences the contravention of which may impose a
penalty of__
(a) in case of an individual, to a fine of K1,000,000, and
imprisonment of twelve months; or
(b) in the case of body corporate, a fine of K5,000,000.

Passed in Parliament this sixteenth day of September, two thousand and

twenty-four.
FIONA KALEMBA
Clerk of Parliament