Sectional Properties Act, 2020

Background

The Sectional Properties law seeks to sub-divide buildings into units to be owned by individual proprietors and common property to be owned jointly by the proprietors as tenants in common.

The Sectional Properties Act [Hereinafter referred to as “the SPA Act”] to provide for the division of buildings into units owned by individual proprietors and common property to be owned by proprietors of all the proprietors as the Tenants in Common.

The SPA applies to Land held under Freehold Title or Leasehold Title where the unexpired residue of the Term is not less than 21 Years

Compliance with the Kenyan Data Protection Act is mandatory and all organizations as listed below and any company collecting any personal data must comply:

Background

A Sectional Plan shall be accompanied by an application for registration by the corporation and a list of the persons who are the Owners of the Property

Section 4 [4] of the Sectional Properties Act, 2020 provides that the Registrar shall not register a Sectional Plan unless the Sectional Plan:

  1. Described two or more units in it; and
  2. Presented for registration in quadruplicate.

On registration of a sectional plan the registrar shall –

  1. close the register of the parcel described in it;
  2. open a separate register for each unit described in the plan
  3. On Payment of the prescribed fee, issue u respect of each unit of the Sectional Property, a certificate of title or certificate of lease
  4. Any interests affecting the parcel which are noted on the Register such as Charges, Leases etc. closed under the Act shall be endorsed on the register opened under the Sectional Property Act

After the register for a Unit is opened pursuant to the Act, all dealings and dispositions regarding the Unit shall be done in accordance on the Act.

 

The Registrar shall also open a register for the Shares apportioned to each Unit Owner and the Common Property shall be comprised in the Sectional Plan and the Common Property 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.

 

The Common Property and each Unit on a Sectional Plan shall, virtue have as appurtenant thereto all such rights of support, shelter and protection, and for the passage or provision of water, sewerage, drainage, gas, electricity, garbage, air and all other services of whatsoever nature [including telephone, radio and television services] over the property

Establishment of a Corporation

“On registration of a Sectional Plan, there shall be constituted a Corporation with the name “The Owners Sectional Plan No [the number to be specified being the number given to the plan on registration]” and which shall contain the following information:

  1. The names of the Owners of the Units in the parcel to which the Sectional Plan relates;
  2. The details of the persons entitled to the parcel when the Sectional Arrangement is terminated under the Act
  3. The Corporation shall have perpetual succession and a common seal
  4. The Corporation would be governed in accordance with the Agreement provided under the Sectional Properties Regulations, 2021.
  5. The Corporation shall be responsible for all matters the Management Company was previously responsible for save for payment of statutory outgoings such as Land Rates and Land Rent [which shall be payable] by the respective owners of the Units
  6. The Corporation shall also establish an internal dispute resolution committee which shall be responsible for dealing with any disputes that may arise.
  7. The Voting rights of each owner of the Corporation shall correspond to the Unit Factors the Unit Owners own over the parcel of Land PROVIDED if any of the Sectional Titles are Charged, the right of such an owner in the Unit will first be exercised by the Chargee rather than the Owner
  8. The Corporation shall have a Board Management that shall be constituted as provided by the By-Laws of the Corporation and the Board is required to meet once every year for an Annual General Meeting
  9. The Corporation By-Laws shall provide for the control, management and administration of the conclusion of the immediately preceding year.

 

Requirements Sectional Properties

The Owner of each unit shall be liable in respect of the Interest on the Sectional Plan in proportion to the Unit Factor;

 

Every plan presented for registration of a sectional plan under the Act shall;

 

  1. be described in the heading of the plan as a Sectional Plan;
  2. be geo-referenced;
  3. bear a statement containing those particulars where necessary to identify the title of the Parcel;
  4. Include a drawing illustrating the Units a and distinguishing the Units by numbers or other symbols;
  5. Show the approximate floor area of each unit in the parcel;
  6. be signed the proprietor;
  7. be signed and sealed by the office or authority responsible for survey;
  8. have endorsed on it the address at which documents may be served on the Corporation;
  9. clearly indicate the user of the Unit; and
  10. contain any other particulars prescribed in the regulations

The Registrar shall, within [21] days from the Sectional Plan is registered, submit to the County government of the area in which the parcel is located, a copy of the registered sectional plan for approval by the County.

 

Upon receipt of the Application for endorsement, the county government shall within 30 days if satisfied that the structure has conformed to:

  1. the development scheme, development control by law, zoning by law or land use by law as the case may be;
  2. any permit issued under that scheme or by-law that existed at the time the building permit was issued.

An Owner who has already paid stamp duty for a sub-lease shall not be required to pay any stamp duty during the conversion process.

 

All Long-term sub-leases that are intended to confer ownership of an Apartment, flat, maisonette, town house or an office that were registered before the commencement of the SPA Act, shall within a period of [2] years be registered in accordance with the Act.

For any questions on the above do not hesitate to contact us on [email protected]