Sectional Property Ownership in Kenya- Duties of an Owner

In Kenya, the concept of sectional property ownership is governed by the Sectional Properties Act of 2020 (the Act), which repealed the Sectional Properties Act of 1987. This legal framework is specifically designed to regulate the division of buildings into units that are owned by individual proprietors, alongside undivided shares in the land where the building is situated.

The Act provides a contemporary approach to the ownership and management of apartment buildings and other developments where multiple parties hold individual ownership of units within a larger property. Key provisions include the requirement for developers to convert existing leases into sectional titles for units sold, as outlined in sections 4 and 5, which mandate the conversion of property rights from the leasehold system to sectional titles, ensuring clearer ownership structures. Additionally, the Act, under section 54, establishes the responsibilities and rights of the management corporation, a body formed by the proprietors of the units, to manage the common property areas, enforce by-laws, and manage funds for property maintenance and improvement. The Act thus provides a legal basis for the partition of buildings into units for individual ownership, while ensuring the collective management of shared spaces, thereby modernising property ownership in Kenya to better reflect the needs of multi-dwelling unit developments.

As mentioned above, the Act sets the legal framework for the relationship between individual unit owners, their tenants, and the management corporation, a collective body responsible for the property’s overall management. Sectional properties offer a blend of individual ownership and communal living, necessitating a well-structured management system to oversee shared spaces and enforce community regulations.

The Role of the Corporation and Owner Obligations

1. Management of Common Areas: The corporation, as established under Section 31 of the Act in Kenya, is responsible for managing, controlling, and administering common areas such as gardens, pools, and other communal facilities. This includes maintenance of these areas, enforcement of property rules, and ensuring a conducive living environment. Their effective management significantly influences the property’s value and quality of life for residents.

2. Notification of Leasing: Property owners who lease out their units are obligated to inform the corporation about the lease. This is crucial for maintaining an accurate register of occupants, which helps in managing security and accountability, ensuring the smooth operation of the property, and supporting the corporation in maintaining high living standards.

3. Ensuring Tenant Compliance with Rules: Owners must ensure that their tenants adhere to the rules set by the corporation. This includes rules about noise control, use of shared amenities, and preserving aesthetic appeal. Owners are responsible for communicating these rules to their tenants and enforcing them to prevent disputes and maintain community harmony.

4. Maintenance of Individual Units: While the corporation handles the upkeep of common areas, the responsibility for maintaining the interior of a unit lies with the owner. Owners must manage internal issues like water leaks to prevent damage that could affect the wider property and incur significant costs.

5. Financial Contributions for Maintenance and Services: Owners are required to make regular financial contributions towards the maintenance and improvement of the property. These dues are crucial for the ongoing upkeep of the property, and failure to meet these obligations can result in legal consequences.

6. Insurance Requirements: The Act specifies that owners must have comprehensive insurance coverage for both individual units and common areas, in alignment with the corporation’s policies. This helps protect against potential liabilities.

7. Conflict Resolution: In disputes involving tenants, owners should act as mediators. This duty involves using a diplomatic approach and a deep understanding of the property’s rules to reconcile tenant interests with community standards.

8. Screening and Selection of Tenants: While owners have the freedom to choose their tenants, cooperation with the corporation during this process ensures that the tenants meet the community’s living standards and contribute to community harmony.

9. Effective Communication with of the Corporation: Owners must maintain open communication with the corporation, reporting any changes within their units and maintenance issues promptly. This fosters a transparent and trustful relationship that benefits the entire community.

Legal Implications and the Importance of Compliance

Within the legislative framework of the Act, property owners are mandated to fulfil specific responsibilities regarding the upkeep and management of their units and the communal areas of the property. The Act explicitly outlines the duties of owners and vests the management corporation with the power to enforce compliance with these responsibilities. Specifically, owners who neglect their duties as stipulated under sections related to the maintenance of units, financial contributions, insurance requirements, and adherence to community rules and regulations, expose themselves to potential legal and financial consequences. The corporation, empowered by the Act (though the Act itself does not detail specific fines or legal actions, it grants the corporation authority to ensure compliance), can levy fines or initiate legal proceedings against non-compliant owners to uphold the integrity and safety of the property.

This enforcement mechanism underscores the critical importance of understanding and actively engaging with the responsibilities laid out in the Act. It is not merely about fostering a positive community environment; compliance with these legal obligations is essential to avoid adverse outcomes. The Act serves as a cornerstone for the governance of sectional properties, ensuring that the collective interests of the community are protected and that individual owners are held accountable for their roles in maintaining the property’s standards and value. Therefore, adherence to the provisions of the Sectional Properties Act, 2020, is a fundamental aspect of ownership within sectional properties, emphasizing the legal implications of failing to meet these obligations and highlighting the necessity for all owners to be informed and vigilant in their compliance efforts.

Top of Form

Conclusion: The Integral Role of Owners in Sectional Properties

In Kenya, the rise of urbanisation has significantly impacted the structure and dynamics of city living, leading to an increased prevalence of sectional properties as a solution to housing needs in densely populated areas. The ownership and subsequent rental of such properties come with an array of responsibilities outlined under the Act. It provides a legal framework that governs the ownership, management, and administration of sectional properties, ensuring that individual owners and renters contribute to the creation and maintenance of a cooperative community.

The Act places a strong emphasis on the obligations of property owners, which include but are not limited to:-

1. The maintenance of their individual units;

2. Adherence to financial commitments such as regular dues for the upkeep of common areas;

3. Ensuring proper insurance coverage; and

4. Abiding by the rules and regulations set forth by the management corporation for the welfare of the community.

The role of sectional property owners in the context of Kenya’s urban development is pivotal. As cities continue to grow and evolve, the sustainability of communal living spaces hinges on the active participation and compliance of these owners with legal and communal obligations. Understanding and fulfilling these duties not only aligns with the legal requirements of the Act but also contributes significantly to the overall success and sustainability of communal living. This is particularly important in Kenya’s changing urban landscape, where sectional properties represent a key component of urban housing strategies, aimed at accommodating the growing population while promoting a cohesive community ethos.

Thus, the responsibilities of owning and renting out a sectional property in Kenya extend beyond the mere transactional aspects of property management. They embody a commitment to the collective well-being of the community and the sustainable development of urban living spaces, as guided by the principles and regulations of the Act. This legal and communal framework is essential for navigating the complexities of urban living, ensuring that sectional properties remain viable, desirable, and harmonious places to live.

Disclaimer:-

Please note that the information provided in this article is for general informational purposes only and should not be construed as legal advice. It is always advisable to consult with a qualified legal professional to discuss your specific circumstances and obtain tailored legal counsel.