Condominium Property in Uganda - GP 1

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Condominium Property in Uganda

Section 1 of the Condominium Property Act 2001 defines Condominium to mean a


system of separate ownership of individual units in a multiple-unit building, the individual
units of which are designated for separate ownership and the remainder of which is
designated for common ownership solely by the owners of those units.

In other wards Condominium is a form of property ownership involving multiple unit


dwellings where a person owns his or her individual unit, but the common areas are
owned in common and all members share in the costs and maintenance of those
common areas. For example, maintenance of buildings roof, hallways, elevators, drive
way, landscaping, pools, fitness center and other amenities.

The term Condominium is an invented Latin word as a result of joining two ‘con’ and
‘dominium’ from its Latin origin the term can be loosely translated as co-ownership. The
plural of the term either Condominiums or Condominium depending on the writer.

This kind of property are similar to apartments but independently sellable, owned and
considered as real estate. The main difference in Condos and regular single homes is
that there is no individual ownership f a plot of land hence all land in Condominium
project is owned in common by all homeowners.

Ownership of property is individual and each owner holds title to his or her individual
unit plus functional interest in the common areas of a multi-unit project. Each owner
pays taxes on his or her property and is free to sell or lease it.

The exterior walls and roof are insured by the Corporation, Management Board and
Managing Agent while all interior walls and items are insured by the unit owner.

Examples of Condominiums in Uganda include;

Bugolobi Flats, Bukoto Flats, Several Flats in Nalya, Lubowa on Entebbe road and
many other areas in and around Kampala.

Condos/Condominiums in Uganda are regulated by the Condominium Property Act.


No. 4 of 2001 enacted on 23 rd February 2001, Condominium Property Regulations
enacted on 26th April 2002, Other general laws on land and Taxation.
The purpose of the Condominiums Act and Regulations is to;

 To provide for the division of buildings into units and common property.
 To provide for individual ownership of those units by issuance of certificates of
title in relation too the units as tenants in common.
 To provide for the use and management of the units and common property and
for the connected matters.

PROCEDURE FOR REGISTRATIOON OF CONDOMINIUM PROPERTIES

Section 2 of the Condominium Property Act provide for the meaning of the
condominium plan as a plan registered in accordance with this Act and includes a
phased condominium plan.

1. The condominium plan shall be presented to the Registrar for registration in


quadruplicate and shall indicate the number of units into which the building is
divided. Section 3(2) of the CPA 2001.
2. The developer in depositing a plan with the Registrar under subsection (1) may
indicate whether the plan will be developed at once or in successive phases.
Section 3(3) of the CPA 2001.
3. Where a plan is to be developed in phases, it shall be known as a phased
condominium plan. Section 3(4) of the CPA 2001.
4. Where the developer deposits a phased condominium plan in accordance with
subsections (1) and (3), the developer shall indicate a timetable for the
development of the various phases. S.3(5) CPA 2001.

Section 10 CPA 2001, Provides that the Registrar shall not register a plan as
condominium plan unless;

a) that plan in its heading is described as a condominium plan,


b) there is indicated in that plan, a delineation of describes external surface
boundaries of the parcel and location of the building in relation to them,
c) the plan includes a drawing illustrating the units and distinguishing the units by
numbers or other symbols,
d) the boundaries of each unit are clearly defined in the plan,
e) the approximate floor area of each unit is clearly shown in the plan,
f) the plan is accompanied by a schedule specifying in whole numbers the unit
factor for each unit in the parcel,
g) the plan is accompanied by a statement containing such particulars as are
necessary to identify the title to the parcel,
h) the plan is accompanied by the certificates referred to in Section 11,
i) the plan is a proprietor,
j) the plan contains the address at which documents are to be served on the
relevant corporation in accordance with section 54 and
k) the plan contains any other particulars prescribed by or under regulations.

Section 10 (2) provides that in the case of a condominium plan that includes residential
units, there shall be indicated in that plan, in addition to conforming to the requirements
specified in subsection (1) and the satisfaction of the Registrar, a delineation of the
boundaries of the areas that are to be leased under section 5 (3).

Further section 11 (1) – 3 (b) provides that a condominium plan should be


accompanied by certificates: the condominium plan should be accompanied by a
certificate of a registered surveyor to the effect that the structure shown on the plan is
within the external surface boundaries of the parcel or land which is the subject of the
plan and if there are projections beyond those external boundaries, that an appropriate
easement has been granted as an appurtenance of the parcel, and a certificate of a
local authority to the effect that the plan has been approved by the local authority in
accordance with any enactment regulating building construction.

5. Section 4 of the CPA 2001, provides for registration of condominium


property once all requirements are satisfied. Subsection (1). The Registrar
shall upon an application for registration of a condominium plan, close the part of
the Register relating to the parcel described in the plan, and open a separate part
for each unit described in the plan, and shall, upon the payment of the prescribed
fee, issue a certificate of title in respect of the unit.
6. Subsection (2) The Registrar shall preserve the closed part of the Register
referred to in subsection (1).
SALIENT FEATURES OF THE CONDOMINIUM LAW

1. Division of building into units. Section 3, requires a proprietor or developer of


Condominium property to divide the property into units and must have a
Condominium plan which shall be presented for registration in quadruplicate and
shall indicate the number of units into which the building is divided and if the plan
is to be developed in phases, the developer shall indicate a time table for
development of the various phases.

2. Creation of title for each unit. Section 4 of the Condominium Act provides
that every purchaser of Condominium Property be issued with a certificate of title
for the unit purchased accompanied with the respective Condominium Plan and
sale agreement because it is upon this sale that the transfer is affected in the
purchaser’s names.

3. Common Property. Section 7 provides for common property which does not
belong to any specific unit and which is used in common by the owners of the
units and includes land on which the property is situated, support structures,
infrastructure and services. In other wards this is property/common area that is
shared by the unit holders and tenants share this property in equal proportion
and therefore the parties shall use this common property equally and also
contribute equally for the maintenance of common property.

4. Boundaries of the unit. Section 12 provides for boundaries of the unit as


described by reference to the floor or ceiling or where a wall located within a unit
is load bearing wall, the only portion of that floor, wall or ceiling as that case
maybe that forms part of the unit, the boundary shall be the finishing material that
is inn the interior of that unit including any lath and plaster, paneling, gypsum
board panels, flooring material or coverings or any other material that is attached,
laid, glued, or applied to the floor, wall or ceiling as the case maybe.

5. Rights of owners of common property. Section 15 provides for the rights of


common property to include support, shelter and protection. Passage or
provision of water, drainage, gas, electricity, garbage and air, passage or
provision of telephone, radio and television services and other service of
whatever nature. Each unit holder shall have a right to full, free and uninterrupted
access and use of light through or from any windows, doors or other apertures
existing at the date of registration of condominium plan.

6. Liability of the unit owner. Section 19 provides that the owner of a unit shall
only be liable in respect of any interest entered on the condominium plan in
proportion to the unit factor for his or her unit.

7. Management and use of Condominium Property. Section 20 provides for the


establishment of a corporation which is responsible for the enforcement of its bye
laws and the control, management and administration of its movable and
immovable property and the common property. This Corporation shall have
perpetual succession a common seal and shall sue or be sued in its corporate
names.

It is important to note that the Companies Act shall not apply to this kind of
Corporation.

ADVANTAGES OF CONDOMINIUMS

 Better land utilization


 Price competitiveness
 Built in amenities and convenient locations and designs
 Condominium ownership appeals to active young singles, couples without
children and pre-retirement couples or singles.

DIS-ADVANTAGES OF CONDOMINIUMS

 One could be paying for maintenance and operation of amenities that he or


she has no desire or intention to use. For example, swimming pool,
recreational center, gyming amongst others.
 Flexibility may be affected if circumstances require that the condominium
be sold in a limited time. Yet Condominiums generally sell more slowly than
single-family houses.
 People live closer thereby potentially creating problems from time to time.
Frequent problem areas include the five ‘P’s that is to say pets, parking,
personality, parties and people.
 Management of Condominium council is by volunteers, who may or may
not have the appropriate abilities, skills and personality.
 There is possible apathy of owners so that it is always the same people
who are able and willing to serve on Council.
 Some elected council behaves in an autocratic fashion
 Mix between living in a single-family house and in a landlord-tenant
relationship. This could cause conflict and frustration depending on people’s
needs, expectations and past housing experience.

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