Module Name

Law of Property .
Lesson-2

Prepared by

Mahesh Devinda Abeynayake

LL.B (Hons) , LL.M (Colombo), M. Phil (Moratuwa)

Attorney-at-Law & Notary Public

Senior Lecturer

University of Moratuwa

Condominium Property Law

You are aware that in recent apartment buildings are increasing and becoming popular. More property
developers are investing in condominium construction and a large number of people are also interest in
purchasing apartments in these condominiums and changing their life style.

What are the legal implications of the growing number of these condominiums?

This week learning outcomes

This module has been specially designed with the following outcomes

At the end of this lesson you would be able to describe some fundamentals relating to the condominium
property law .

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  To differentiate and explain main areas of Condominium Property Law
 To explain and apply the different condominium legislation that are currently in force in Sri
Lanka
 To apply the above legislation and advise customers or clients or organizations on action needed
with regard to condominium property .

Study and learning activities

1. Read the lesson note .Read the additional resource give above –After completing your reading
check your understanding by answering the self assessment questions.

2. Submit the required report given in the assignment

Self assessment questions

1. List the provisions in various legislation related to Condominium property in Sri Lanka ?

2. How to register condominium property under the Sri Lankan property Law .

Condominium Property Law

Introduction

The term “ Condominium” if often used to refer to the apartment unit it self in place of the
term” apartment”. This clearly signifies ownership of the property. Often, it consists of units in a

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multi- unit dwelling (i.e. apartment) where the unit is individually owned and the common areas
like hallways and recreational facilities are jointly owned by all the unit owners in the building.

Legislation related to the Condominium Property Law of Sri Lanka

Condominium Property Act No. 12 of 1970 was effected to multi storied properties. This Act was
repealed and the Apartment Ownership Act. No. 11 of 1973 has been introduced for the Condominium
Property. This is a law to provide for the registration of multi-storied property. “The division there of into
independent units with common elements appurtenant thereto, to enable the separate ownership of and
disposition of title to, such units and to provide for matters connected therewith or incidental thereto.”
This Act came in to effected on the 20th of March 1973.

Section 2 of this Act stated that the Apartment Ownership Act shall apply to property comprising land
with a building or buildings or more than one storey and having more than one independent units of
residential or non-residential accommodation.

Registration of the Condominium Property .

Section 3 of this Act stated that any person claiming to be an owner of any Condominium Property may
make application to the Registrar of Lands where it is situated for the registration of a plan of the
Condominium Property.

Every application for the registration of condominium plan shall be accompanied by two copies of the
plan one marked Original and the other marked Duplicate.

The condominium plan shall comprise a survey plan which shall be prepared and drawn by a Licensed
Surveyor and shall;

a) Demarcate the horizontal surface boundaries of the land and the location of the building in
relation thereto.

b) Identify the units into which the building is divided and distinguish such units by assessment
numbers, unit numbers or other symbols.

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 c) Specify the floor area of each unit and define the boundaries of each unit by reference to floors,
walls, ceiling or roof, the common boundary of any unit with another unit or with the common
elements being the centre of the floor wall or ceiling as the case may be.

d) Define the common elements of the Condominium Property

e) Bear an endorsement by the Licensed Surveyor preparing it to the effect that the building shown
in the plan is within the external horizontal boundaries of the land.

f) Have attached to it a certificate of a qualified civil or structural engineer to the effect that the
units shown therein are the same as those existing on the land.

Section 5 of this Act sated that a Condominium Declaration in the prescribed form which shall be made
by the applicant and attested form which shall be made by the applicant and attested by the Notary Public
and shall contain;

a) A description by reference to the survey plan of the land on which the building is located and to
which the title is claimed and the particulars of the property according to section 13 of
Registration of Documents Ordinance.( e.g. describe the property such as situated province ,
district, extent, boundaries etc.)

b) The name and address of the owner or owners of the condominium property

c) The particulars of deeds and other evidence of title relied upon by the applicant in support of the
claim to title.

d) The prior registration of the property

e) The particulars of every encumbrance affecting the land

f) The description of the building stating the number of stories and basements and the number of
units.

g) The number or other symbol identifying each unit, and a statement of is location and other
particulars of each unit.

h) A description of the common elements of the condominium property

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A Condominium Plan tendered for registration shall be accompanied by a certificate from the local
authority ( Municipal Council or Urban Council or Pradeshiya Sabah) to the effect that the division
of the building into units as illustrated, in accordance with its by laws and regulations.

Upon registration of a condominium plan the building depicted therein shall be deemed to be divided
intro the units identified therein and each such unit shall be deemed to have appurtenant thereto in
undivided shares such proportion of the land and other common elements defined in the Condominium
Plan as the floor area of the unit bears to the aggregate floor area of all the units comprised in the plan.

Upon registration of a condominium plan each unit depicted therein together with the common elements
appurtenant thereto shall be deemed to be absolutely owned by the person or persons described in the plan
as the owner or owners of the condominium property without prejudice to the right of any other person to
obtain monetary compensation for any loss suffered as a result of any interest he had in the condominium
property before such registration being adversely affected.

Section 10 of this Act stated that - No person acquiring an interest in any unit of a registered
Condominium Property on a deed or instrumental shall be entitle to such interest unless such deed is
registered in the register of Condominium Property.

Section 12 mentioned that - Any owner of unit of a registered Condominium Property may, with the
approval of the local authority, re-divide or amalgamate his units by registering a plan of re-division of
amalgamation relating to such units in the manner provided by this law for the registration of
Condominium Plans.

The owners of all the units of a registered Condominium Property shall insure and keep insured the
building in such property against Loss or damage by fire, civil commotion and riot and such other hazards
as shall be prescribed and the premium for such insurance shall be shared by all the owners of the
Condominium Property in proportion to their respective interests. This section is amended by Apartment
Ownership (Amendment) Act of 1982 and appointed a board of Common Elements.

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Section 20 stated that the District Court of the judicial district in which a registered Condominium
Property is situated may by declaration to that effect terminate the condominium status of such property
due to any of the following circumstances;

a) Where an application is made for termination to a Court by the owner or owners of all the units of
the Condominium Property

b) Where an application is made for such termination to a court by the owner of any unit in the
condominium Property consequent to the building not being repaired or reconstructed within a
reasonable time after there has been a total or substantial damage to or destruction of, the building
or part thereof.

c) Where in the event of the building having become obsolete, the owners of not less than seventy
five percent of the number of units agree not to renovate the building and make an application for
a termination to the Court.

Now, let us discuss common elements of the condominium property.

Common Elements

Section 26 of this Act stated that Common elements of a condominium property means so much of
the condominium Property as is not comprised in any in therein and includes;

1. The land on which the building stands including the roads and accesses drains and ditches lanes,
gardens, parks, playgrounds, and other open spaces appurtenant to the condominium Property

2. The foundation columns girders beams supports main walls and roof of the building

3. The halls, corridors, lobbies, stairs ,stairways ,fire escapes and entrances and exits of the building

4. The basements yards gardens parking areas and storage spaces of the Condominium Property

5. The premises for the lodging of persons in charge of the property including caretakers and
watchers

6. Installation for central services such as electricity telephone, radio, re-diffusion air-conditioning
garbage disposal and incineration

7. The lifts escalators tanks pumps motors fans compressors ducts and in general all apparatus and
installations existing for common use.

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 8.

Condominium Management Authority(CMA) of Sri Lanka as a

Common Amenities Board(CAB) was established as per Common Amenities law No. 10 of 1973 for the
control, management, maintenance, and administration of the common amenities and common elements
of units of accommodation; basically in Housing Scheme’s owned National Housing Development
Authority (NHDA).

CAB was a very efficient organization for the control, management, maintenance and administration of
the common amenities and common elements of units of accommodation as per Apartment Ownership
Act(Amendment) No. 45 of 1982 and CAB played a vital role in encouraging unit owners in their
Management corporations and activities.

With the dawn of the millennium the Condominium Industry becomes a booming Industry in the national
market and more and more Developers and Investors started to get in to this lucrative business. By that
time there was no proper statutory body to regulate the industry activities and to accommodate industry
demands.

According to the Common Amenities Board(Amendment) Act No. 24 of 2003 CAB was converted to
Condominium Management Authority (CMA) for the control, management, maintenance, and
administration of the condominium property, and semi condominium property

As per Apartment Ownership (Amendment) Act No. 39 of 2003 CMA was empowered to regulate the
entire condominium activities.

This was the main achievement of this organization (CMA)during the past decade. With this new
amendment of that Act, CMA is in apposition to meet the Industry requirements of the National Housing
development more efficiently and effectively.

Some of the key functions of CMA are listed as follows.

1. Issuing of certificates to Condominium Developers

2. Formulation of Re-developments activities.

3. Activating management corporation

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 4. Public awareness programme on Condominium Management

5. Setting up of new standards and implementing all Condominium issues and regulations.

6. Dispute resolutions in condominiums.

7. Promoting condominium developments and assisting stake holders

8. Maintaining some of National Housing development Authority(NHDA) Housing Schemes (on

Summary
Condominium property consists of units in a multi- unit dwelling where the unit is individually
owned and the common areas like hallways and recreational facilities are jointly owned by all
the unit owners in the building. Apartment Ownership Act No. 11 of 1973 has been introduced for
the Condominium Property. This is a law to provide for the registration of multi-storied property. Owner
of any Condominium Property may make application to the Registrar of Lands where it is situated for the
registration of a plan of the Condominium Property.

The condominium plan shall comprise a survey plan which shall be prepared and drawn by a Licensed
Surveyor .A Condominium Plan tendered for registration shall be accompanied by a certificate from the
local authority .Any owner of unit of a registered Condominium Property may, with the approval of the
local authority, re-divide or amalgamate his units by registering a plan of re-division of amalgamation
relating to such units in the manner provided by this law for the registration of Condominium Plans.

With the dawn of the millennium the Condominium Industry becomes a booming Industry in the national
market and more and more Developers and Investors started to get in to this lucrative business. According
to the Common Amenities Board(Amendment) Act No. 24 of 2003 Common Amenities Board was
converted to Condominium Management Authority (CMA) for the control, management, maintenance,
and administration of the condominium property, and semi condominium property. As per Apartment
Ownership (Amendment) Act No. 39 of 2003 CMA was empowered to regulate the entire condominium
activities.

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