Uhuru Signs Law on Ownership of Houses
President Uhuru Kenyatta has signed into law the Sectional Properties Act, 2019 which will provide clear guidance on sectional ownership of property.
According to a statement from State House, the Sectional Properties Act, 2019 provides for the division of buildings into units to be owned by individual proprietors.
The new law will safeguard the rights of apartment owners against unscrupulous real estate companies as well as define what the developers and owners are entitled to in an apartment estate.
Appartments under the affordable housing project located at Park Road, Ngara in Nairobi.
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An example would be the affordable housing scheme launched by President Kenyatta which allows people to own different sections of the same building.
The government announced that it would soon be allocating the 1,370 units at the Park Road Affordable Housing Programme in Ngara.
“These are the apartments where you find that someone has bought a one-bedroomed house on the first floor while another buyer occupies a two bedroomed house on the third floor.
“Ultimately all the houses in the same building will belong to different people and the new law will help manage that,” a law researcher who spoke to Kenyans.co.ke defined.
It gives owners of sectional properties more powers and ownership in the use of the property.
Upon registration of the sectional property plan, the register of the parcel described in the plan is closed.
A separate register for each unit is opened and a title deed issued in respect of each housing unit.
As such, every level of such a building is considered an independent parcel of land.
The move will go a long way in solving house ownership wrangles in Kenya.
www.kenyans.co.ke
Sectional Properties Act No.21 of 1987
The registration of sectional property in Kenya is governed by the Sectional Properties Act No. 21 of 1987 and the corresponding regulations (Legal Notice No. 159 of 1991).
The Act only applies in respect of land held on freehold title or on a leasehold title where the unexpired residue of the term is not less than forty-five years.
The main aim of the Act has been to facilitate the subdivision of land and buildings comprising a development where
a) Each individual property consists of a unit.
b) an undivided share in the common property.
The Sectional Properties creates a form of composite ownership namely:
Under the Act, a threefold legal relationship is created once a unit is registered in the name of an owner being:
The Sectional Properties Bill 2019
The Bill which is currently in parliament, if enacted, will repeal the current law, the Sectional Properties Act, 1987.
– The formulation of the Sectional Properties Bill 2019 is informed by the fact that the current law is not responsive to emerging market needs such as the growing demand for affordable housing, mixed-use, and master-planned communities as well as efficient mortgage transactions.
– The Bill simplifies the process of registering sectional properties and creates an enabling environment for investors and property owners.
Objectives of the Bill
The Principal object of the Bill 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, to provide for the use and management of the units and common property and address the contemporary challenges associated with ownership of property in a sectional property environment.
The Sectional Properties Bill 2018 seeks to;
Here is a copy of the Sectional Properties Bill 2019.
SectionalPropertiesBill_2019
pmlegalke.wordpress.com
- By Denis Mwangi on 11 December 2020 - 4:06 pm
President Uhuru Kenyatta signing the CRA bill at State House on October 8, 2020.
PSCU
President Uhuru Kenyatta has signed into law the Sectional Properties Act, 2019 which will provide clear guidance on sectional ownership of property.
According to a statement from State House, the Sectional Properties Act, 2019 provides for the division of buildings into units to be owned by individual proprietors.
The new law will safeguard the rights of apartment owners against unscrupulous real estate companies as well as define what the developers and owners are entitled to in an apartment estate.
Appartments under the affordable housing project located at Park Road, Ngara in Nairobi.
An example would be the affordable housing scheme launched by President Kenyatta which allows people to own different sections of the same building.
The government announced that it would soon be allocating the 1,370 units at the Park Road Affordable Housing Programme in Ngara.
“These are the apartments where you find that someone has bought a one-bedroomed house on the first floor while another buyer occupies a two bedroomed house on the third floor.
“Ultimately all the houses in the same building will belong to different people and the new law will help manage that,” a law researcher who spoke to Kenyans.co.ke defined.
It gives owners of sectional properties more powers and ownership in the use of the property.
Upon registration of the sectional property plan, the register of the parcel described in the plan is closed.
A separate register for each unit is opened and a title deed issued in respect of each housing unit.
As such, every level of such a building is considered an independent parcel of land.
The move will go a long way in solving house ownership wrangles in Kenya.
Uhuru Signs Law on Ownership of Houses
In the new law, every level is considered an independent parcel of land. The move will go a long way in solving house ownership wrangles in Kenya.
www.kenyans.co.ke
Sectional Properties Act No.21 of 1987
The registration of sectional property in Kenya is governed by the Sectional Properties Act No. 21 of 1987 and the corresponding regulations (Legal Notice No. 159 of 1991).
The Act only applies in respect of land held on freehold title or on a leasehold title where the unexpired residue of the term is not less than forty-five years.
The main aim of the Act has been to facilitate the subdivision of land and buildings comprising a development where
a) Each individual property consists of a unit.
b) an undivided share in the common property.
The Sectional Properties creates a form of composite ownership namely:
- proprietor (title) of a unit coupled with;
- joint ownership (tenancy) in the common property and;
- an association, the body corporate (management corporation) consisting of all the registered owners as members.
Under the Act, a threefold legal relationship is created once a unit is registered in the name of an owner being:
- Such a person becomes owner of his Unit;
- joint owner (tenant) of the common property in undivided shares and;
- a member of the management structure, the body corporate (Management Corporation).
The Sectional Properties Bill 2019
The Bill which is currently in parliament, if enacted, will repeal the current law, the Sectional Properties Act, 1987.
– The formulation of the Sectional Properties Bill 2019 is informed by the fact that the current law is not responsive to emerging market needs such as the growing demand for affordable housing, mixed-use, and master-planned communities as well as efficient mortgage transactions.
– The Bill simplifies the process of registering sectional properties and creates an enabling environment for investors and property owners.
Objectives of the Bill
The Principal object of the Bill 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, to provide for the use and management of the units and common property and address the contemporary challenges associated with ownership of property in a sectional property environment.
The Sectional Properties Bill 2018 seeks to;
- vest reversionary interest on individual unit owners, previously the Company had the 1st rights to the reversionary interest whereby the company was at liberty to apply for renewal of the lease. Currently as the Bill proposes individual unit owners will renew their own leases as the reversionary interest vests on them as end purchasers. A Further look at the proposal by the Bill, it is clear that Management companies will not take on this task as before. This provision will in effect expedite the process of applying for, processing the extension and renewal without applying through the Corporation and management companies.
- Guarantee rights of property owners by conferring absolute rights to them. Previously, absolute rights were vested on the Management Company. If absolute rights are conferred on individual or property owners, then it means management companies have little roles as the absolute rights were the main foundation of management companies which in the current provisions of the Bill have been taken away from it.
- The proposed law will enhance revenue collection since each unit will be assessed separately for purposes of payment of ground rent and rates. Previously, ground rent and rates payable by individual unit holders were payable as service charge payable to the management Company or Corporation and apportioned to all other unit holders. With the new changes the government will benefit more in terms of revenue collection and also open an avenue for checks on defaulters since with individual assessment and payment it is very easy for both the Ministry of Lands and Kenya Revenue Authority (KRA) to follow up on defaulting unit holders and by this way, revenue collection will be enhanced.
- The Bill also provides for the closure of the mother title or head lease to prevent mischief by property developers. Closure of the mother title means each unit holder will have his/her own title not dependent on the mother lease. The Management Companies now will have less control in terms of renewal of the leases unlike previous control where unit holders were at the mercy of property developers who sought to hold on to ownership arbitrarily even after selling off the units to end purchasers. This will have the effect of vesting absolute rights on the individual unit owners as they can then deal in the property only in such manner as they wish to as opposed to being at the mercy of developers.
Here is a copy of the Sectional Properties Bill 2019.
SectionalPropertiesBill_2019
A REVIEW OF THE SECTIONAL PROPERTIES BILL 2019.
Article by Polycarp Moriasi On the 21st of February 2019 the Kenyan Media Houses reported that the Kenyan Cabinet Chaired by H.E President Uhuru Kenyatta held a meeting at State House and among ot…
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