CONDOMINIUMS IN SRI LANKACONDOMINIUMS IN SRI LANKAUnder the Under the

Apartment Ownership Law Apartment Ownership Law No. 11 of 1973 and its No. 11 of 1973 and its

amendments amendments

What is the Roman What is the Roman Dutch Law concept of Dutch Law concept of

Ownership?Ownership? Immovable properties governed by Roman Immovable properties governed by Roman

Dutch Law in Sri LankaDutch Law in Sri Lanka According to Roman Dutch Law, a ‘Building According to Roman Dutch Law, a ‘Building

goes with the land’goes with the land’ This is changed in respect of apartments in This is changed in respect of apartments in

multi-storey buildings by subsequent multi-storey buildings by subsequent legislation, namely by the Apartment legislation, namely by the Apartment Ownership LawOwnership Law

Legislation introduces a new concept of Legislation introduces a new concept of ownershipownership

A new conceptA new conceptof ownership of immovable of ownership of immovable

property property Ownership of horizontal layers of Ownership of horizontal layers of

landland

LegislationLegislation Condominium Property Act No. 12 of 1970 - Condominium Property Act No. 12 of 1970 -

repealedrepealed The Apartment Ownership Law No. 11 of The Apartment Ownership Law No. 11 of

19731973 (“Apartment Ownership Law”) This Act (“Apartment Ownership Law”) This Act was subsequently amended by the following was subsequently amended by the following legislation: legislation:

Apartment Ownership (Amendment) Act No. Apartment Ownership (Amendment) Act No. 45 of 198245 of 1982

Apartment Ownership (Special Provisions) Apartment Ownership (Special Provisions) Act No. 4 of 1999Act No. 4 of 1999

Apartment Ownership (Special Provisions) Apartment Ownership (Special Provisions) Act No. 27 of 2002Act No. 27 of 2002

Apartment Ownership (Amendment) Act No. Apartment Ownership (Amendment) Act No. 39 of 200339 of 2003

What is a Condominium?What is a Condominium? Definition - Sec 41(6) of Act No. Definition - Sec 41(6) of Act No.

39 of 200339 of 2003 A Condominium has six (6) sidesA Condominium has six (6) sides

Boundaries: Boundaries: North……North…… South……South…… East……..East…….. West……..West…….. Zenith…..Zenith….. Nadir……Nadir……

Defined spaceDefined space in ain a plan of plan of subdivisionsubdivision

Shown as aShown as a separate condominium separate condominium parcelparcel

Provisional Condominium PlanProvisional Condominium Plan Semi Condominium PlanSemi Condominium Plan Condominium PlanCondominium Plan

Designed for independent useDesigned for independent use In a building of more than one storeyIn a building of more than one storey Divided into one or more roomsDivided into one or more rooms Sometimes with accessory unitsSometimes with accessory units Direct exit to a road or to a common area Direct exit to a road or to a common area

leading to a roadleading to a road

Servitudes in Condominium Servitudes in Condominium PropertiesProperties

What are the servitudes attached to What are the servitudes attached to Condominium Properties? Condominium Properties? (Sec. 13 of Law No. (Sec. 13 of Law No. 11 of 1973 as amended )11 of 1973 as amended )

Right to light, air, support, shelter, Right to light, air, support, shelter, access, passage of water, electricity, access, passage of water, electricity, cooled air, drainage, etc.,cooled air, drainage, etc.,

Common Elements Common Elements of a Condominium Propertyof a Condominium Property

Corridors

Swimming PoolLift

s Garden

Garden

All areas which All areas which do not form part of any do not form part of any condominium unitcondominium unit in a Condominium in a Condominium Property Property

Which are described as Common Elements Which are described as Common Elements and shown in a Plan of subdivisionand shown in a Plan of subdivision

Corridors

‘‘Common Elements’ Common Elements’ (Sec. 26 of Act No. 11 of 1973 (Sec. 26 of Act No. 11 of 1973

as amended by Act No. 45 of 1982)as amended by Act No. 45 of 1982)

foundations, columns, gardens, external foundations, columns, gardens, external beams, supports, main walls, roofs, walls, beams, supports, main walls, roofs, walls, lobbies, corridors, stairs, stairways, fire lobbies, corridors, stairs, stairways, fire escapes, entrances, exits of the building or escapes, entrances, exits of the building or buildings;buildings;

car parks, recreational or community car parks, recreational or community facilities, parking areas, storage spaces;facilities, parking areas, storage spaces;

central and appurtenant installations for central and appurtenant installations for services such as power, light, gas, hot and services such as power, light, gas, hot and cold water, heating, refrigeration and air cold water, heating, refrigeration and air conditioning, telephone, radio, garbage conditioning, telephone, radio, garbage disposal and incinerators;disposal and incinerators;

lifts, escalators, tanks, pumps, motors, fans, lifts, escalators, tanks, pumps, motors, fans, compressors, ducts and in general all compressors, ducts and in general all apparatus and installations existing for apparatus and installations existing for common use; common use;

premises for use by security guards, premises for use by security guards, caretakers and watchmen;caretakers and watchmen;

all facilities all facilities described as common described as common elements in any plan for a condominium elements in any plan for a condominium developmentdevelopment approved by the authority approved by the authority responsible for such approval and all facilities responsible for such approval and all facilities which may be shown in the legend of any which may be shown in the legend of any plan as common elements;plan as common elements;

allall other parts of the land not other parts of the land not comprised in any unitcomprised in any unit necessary or necessary or convenient to the existence and convenient to the existence and maintenance and for the reasonable maintenance and for the reasonable common use and safety of the common common use and safety of the common elements including elements including the roads and the roads and access drains and ditches, lanes parks, access drains and ditches, lanes parks, playgrounds, and other open spacesplaygrounds, and other open spaces connected with the condominium connected with the condominium property. property.

Common ElementsCommon Elements and Share Values and Share Values

Who owns Common Elements?Who owns Common Elements? - All Owners of Condominium Units- All Owners of Condominium Units - On the basis of the share values assigned - On the basis of the share values assigned

to each unitto each unit What are Share Values and why are they What are Share Values and why are they

important?important? - to determine extent of ownership of - to determine extent of ownership of

common elementscommon elements - to fix the Contribution payable by each unit- to fix the Contribution payable by each unit - to divide the land component in a cessation - to divide the land component in a cessation

of a condominium property.of a condominium property.

ContributionsContributionsSec. 28 (3) Act No. 39 0f 2003Sec. 28 (3) Act No. 39 0f 2003

‘‘Contributions’ are levied from Contributions’ are levied from Owners :Owners :

- to cover expenses related to - to cover expenses related to maintenance of the condominium maintenance of the condominium property to be credited to a property to be credited to a Management FundManagement Fund

- to create a Sinking Fund for - to create a Sinking Fund for future repairs and major renovations future repairs and major renovations of the Condominium Propertyof the Condominium Property

Two types of Ownership Two types of Ownership

Freehold – Freehold – Condominium unitCondominium unit

Ownership in Common – Ownership in Common – Common Common ElementsElements

Condominium PropertyCondominium PropertySec. 3(a) of Act No. 39 of 2003Sec. 3(a) of Act No. 39 of 2003

Condominium Property:Condominium Property: A Building constructed on a single A Building constructed on a single

land with defined boundaries.land with defined boundaries. The building can be divided into The building can be divided into

separate units otherwise known as separate units otherwise known as “condominium parcels”“condominium parcels”

Each condominium parcel can be Each condominium parcel can be sold, leased or mortgaged as any sold, leased or mortgaged as any other free hold property.other free hold property.

Provisional Condominium PropertyProvisional Condominium Property

Sec. 3 (b)Sec. 3 (b) A Provisional Condominium Property A Provisional Condominium Property

is a ‘condominium property which is is a ‘condominium property which is to be constructed’ and to be constructed’ and

is a non-existent building seen only is a non-existent building seen only on a Provisional Condominium Plan on a Provisional Condominium Plan

Semi Condominium PropertySemi Condominium PropertySec. 3(c) of Act No. 39 of 2003Sec. 3(c) of Act No. 39 of 2003

Semi Condominium Property”, has Semi Condominium Property”, has the following features:the following features:

A partly erected building on a single A partly erected building on a single land with defined boundaries; land with defined boundaries;

the building consists of more than the building consists of more than one condominium parcel; andone condominium parcel; and

each condominium parcel is fit for each condominium parcel is fit for human habitation.human habitation.

Creation of Creation of condominiumscondominiums

Deed of Declaration registered under the Deed of Declaration registered under the Registration of Documents OrdinanceRegistration of Documents Ordinance

Filed by the Owner of the landFiled by the Owner of the land Documents filed with a Deed of Documents filed with a Deed of

DeclarationDeclaration Registration under the Registration under the Registration of Registration of

Title ActTitle Act No. 21 of 1998 (Sec. 15 of Act No. 21 of 1998 (Sec. 15 of Act No. 39 of 2003)No. 39 of 2003)

Excludes:Excludes: Properties situated in Districts Properties situated in Districts which are not covered by the Registration which are not covered by the Registration of Title Act. of Title Act.

Mandatory RegistrationMandatory RegistrationSec. 4 of the Act No. 39 of 2003Sec. 4 of the Act No. 39 of 2003

If an agreement to sell has taken If an agreement to sell has taken place prior to the registration of place prior to the registration of the Condominium Propertythe Condominium Property – –

- The application for registration of - The application for registration of the Condominium Property should the Condominium Property should be submitted within 18 months from be submitted within 18 months from the date of the first sale or the the date of the first sale or the agreement to sell; or agreement to sell; or

- within 3 months of completion of - within 3 months of completion of the building, whichever occurs first. the building, whichever occurs first.

If the sale occurs after the If the sale occurs after the completion of the buildingcompletion of the building - the - the application for registration should application for registration should be submitted within 6 months from be submitted within 6 months from the date of completion of the the date of completion of the building building

Condominium Management Authority Condominium Management Authority and the and the

‘CMA Certificate’‘CMA Certificate’ Condominium Management Authority Condominium Management Authority

regulates standards of condominium regulates standards of condominium properties properties

It was established under the Common It was established under the Common Amenities Board Act No. 24 of 2003Amenities Board Act No. 24 of 2003

A Certificate from the General Manager A Certificate from the General Manager of the Condominium Management of the Condominium Management Authority is mandatory for registration Authority is mandatory for registration of any condominium project after the of any condominium project after the enactment of Act No. 39 of 2003. enactment of Act No. 39 of 2003.

CMA Certificate CMA Certificate

certifies that: certifies that: the common amenities provided for the the common amenities provided for the

welfare and benefit of the occupants of welfare and benefit of the occupants of the condominiums are satisfactory; and the condominiums are satisfactory; and

arrangements made as regards the arrangements made as regards the control, administration, maintenance control, administration, maintenance and management of the common and management of the common elements are satisfactory.elements are satisfactory.

EncumbrancesEncumbrances recognized by the Act recognized by the Act

Mortgages registered on the land prior to Mortgages registered on the land prior to the registration of the Plan of Subdivisionthe registration of the Plan of Subdivision

Mortgages registered on the land after the Mortgages registered on the land after the registration of the Plan of Subdivision registration of the Plan of Subdivision securing the land as collateral for securing the land as collateral for construction of the condominium property.construction of the condominium property.

Agreements of Sale for individual provisional Agreements of Sale for individual provisional condominium parcels which have been condominium parcels which have been registered at the respective Land Registry.registered at the respective Land Registry.

Establishing title to unitsEstablishing title to units

- - Separate ownership of unitSeparate ownership of unit

Creation of Management Creation of Management Corporation Condominium Plan Corporation Condominium Plan No….No….

- All unit owners as All unit owners as

MembersMembers

Effect of RegistrationEffect of Registration

Upon the registration of the Plan of Upon the registration of the Plan of subdivision mortgages registered on subdivision mortgages registered on the land will extend to each the land will extend to each condominium parcel forming part of condominium parcel forming part of the subdivided building. the subdivided building.

Upon the registration of the Semi Upon the registration of the Semi Condominium Plan or the Condominium Plan or the Condominium Plan, each subdivided Condominium Plan, each subdivided building, shall be deemed to have building, shall be deemed to have been divided into the segments been divided into the segments (condominium parcels and common (condominium parcels and common elements) as reflected in the elements) as reflected in the registered Planregistered Plan

the owner of each the owner of each condominium condominium unitunit will become the “ will become the “absolute absolute ownerowner” of the respective ” of the respective condominium unit condominium unit and and

the the percentage of common percentage of common elementselements or share value registered or share value registered against such condominium unit against such condominium unit

subject to any encumbrances subject to any encumbrances registered on the propertyregistered on the property. .

Management CorporationManagement Corporation

Sec. 20B of Act No. 45 of 1982Sec. 20B of Act No. 45 of 1982 Upon the registration of the Deed of Declaration Upon the registration of the Deed of Declaration

and the plan of the subdivided property at the and the plan of the subdivided property at the respective Land Registry, a body corporate respective Land Registry, a body corporate referred to as a Management Corporation comes referred to as a Management Corporation comes into existence into existence

having its own common seal and the power to sue having its own common seal and the power to sue and be sued under its name. and be sued under its name.

All owners of condominium parcels become a All owners of condominium parcels become a body corporate with perpetual succession under body corporate with perpetual succession under the provisions of the Apartment Ownership Law. the provisions of the Apartment Ownership Law.

Duties and Responsibilities of the MCDuties and Responsibilities of the MC

- main duty is to maintain, administer and - main duty is to maintain, administer and manage the Common Elementsmanage the Common Elements

Management is through a Council of the Management is through a Council of the Management CorporationManagement Corporation

Can create its own By-laws which are not in Can create its own By-laws which are not in conflict with the statutory By-laws – 2conflict with the statutory By-laws – 2ndnd Schedule of the ActSchedule of the Act

Constitution of the MC – 1Constitution of the MC – 1stst Schedule of the Schedule of the ActAct