A. BACKGROUND
Sectional titles are ownership documentations in respect of the separate ownership of units within a development comprising town houses or apartment building.
Ownership of sectional titles is governed by the Sectional Properties Act, No.21 of 2020 (the “Sectional Properties Act”) and the Sectional Properties Regulations, 2021 (the “Sectional Properties Regulations”). The Sectional Act and the Sectional Regulations set out the process for issuance of sectional titles.
The objective of the Sectional Properties Act is 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 and to provide for the use and management of the units and common property.
Sectional titles can only be issued upon registration of sectional plans.
B. PREPARATION AND REGISTRATION OF SECTIONAL PLANS AND UNITS
(1) What is a Sectional Plan?
A Sectional Plan displays the layout/outline of buildings of an existing or proposed building.
Section 4 of the Sectional Properties Act provides that an existing structure may be designated a building containing a unit or part of a unit divided into two or more units by the registration of a sectional plan.
(2) Who prepares a Sectional Plan?
A sectional plan is to be prepared by a licensed surveyor from a building plan that has been approved by the County Government. Prior to preparation of a sectional plan, the applicant must provide proof of ownership of the land or unit from which a sectional plan is to be prepared.
Building plans are prepared by architects and presented for approval at the relevant county government. This was the procedure before the Sectional Properties Act came into force. The procedure is still applicable only that the approved building plans form the basis for preparation of a sectional plan.
(3) What are the Requirements for a Sectional Plan?
Section 9 of the Sectional Properties Act provides that every plan presented for registration as a sectional plan shall:-
(i) be described in the heading of the plan as a sectional plan;
(ii) be geo-referenced;
(iii) identify the title to the parcel;
(iv) include a drawing illustrating the units and distinguishing the units by numbers or other symbols;
(v) show the approximate floor area of each unit;
(vi) have endorsed on it a schedule specifying in whole numbers the unit factor for each unit in the parcel;
(vii) be signed by the proprietor, signed and sealed by the office or authority responsible for survey;
(viii) address of the Corporation;
(ix) clearly indicate the user of the unit; and
(x) describe two or more units in it.
It is important to also note that the sectional plan should be endorsed by the following: –
(i) a surveyor stating that the structure shown on the plan is within the external surface boundaries of the parcel which is the subject of the plan and whether easements have been granted;
(ii) a certificate from the County Government stating that the proposed division of the structure has been approved by the County Government;
(iii) the owner of the property; and
(iv) land administration officer confirming that rent has been apportioned to each unit on the sectional plan.
(4) What are the Documents Required for Registration of a Sectional Plan?
An application for registration of a sectional plan shall be made in Form LR19 and shall be accompanied by the following documents: –
(i) The Rent Apportionment Form being, Form SP1;
(ii) Site and Location Sectional Plan being, Form SP2;
(iii) A certificate from the County Government stating that the proposed division of the structure has been approved by the County Government;
(iv) Original certificate of title or lease in respect of the parcel; and
(v) Application for Registration of a Corporation being, Form SP7 and a list of the persons who are the owners of the units in the parcel which shall be updated from time to time on need basis.
C. ISSUANCE OF SECTIONAL TITLES
Upon the Registrar confirming that the sectional plan and all the accompanying documentation are in order, the Registrar shall: –
(i) register the sectional plan in Form SP8 for freehold and Form SP9 for leasehold property; and
(ii) register the Corporation and issue a certificate of registration in Form SP10.
On registration of the sectional plans, the Registrar shall close the register of the parcel described in it and shall open new unit registers in Form SP11 for freehold and SP12 for leasehold.
The Registrar shall thereafter issue a certificate of title in Form SP13 or certificate of lease in Form SP14. The certificate of ownership of a unit will also indicate the owners proportionate share in the common property.
Within 21 days from the registration of the Sectional Plan, the Registrar shall submit a copy to the County Government to apportion the rates payable by each unit owner.
D. TO DO CHECKLIST FOR DEVELOPERS
(i) Engage an Architect to prepare the building plans.
(ii) Register the Plan with the relevant County Government.
(iii) Engage the Surveyor to prepare the Sectional Plan.
(iv) Obtain approval of the Sectional Plan from the County Government.
(v) Engage a Lawyer to prepare the Sectional Properties Act and Sectional Properties Regulations Compliant Agreement for Sale, By-laws, Management Agreement and Recreational Agreements for the development.
Engaging an advocate will help with verifying that the due process for preparation of the plans has been followed. They will also assist with the process of registration and obtaining sectional as well as conversion of long term leases to sectional units.
E. CONCLUSION
At CM Advocates LLP, we are dedicated to helping developers ensure compliance with the Sectional Properties Laws and for purchasers to obtain sectional titles. We work closely with surveyors who provide timely, cost-effective and efficient service delivery to our clients.
We are well equipped to assist with the process of obtaining the sectional titles or conversion of long term leases to sectional units.
Contact us via the contact details set out below.
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