Condominium Title in Turks & Caicos 2 - Richard Savory, B.Com, LL.B
Condominium (Latin): joint ownership and control. The following (reprint) is the second in a series of 4 articles on Condominium Title, what it is and how it is structured, provided by Richard Savory, the principal of the law firm Savory & Co. located in the Turks & Caicos Islands.
Creation of Condominium Title
In Turks & Caicos, a condominium is established by the registration of a set of plans, called a strata plan, at the
Land Registry. In the legislation, the units shown in the strata plan are called strata lots and the rest of the
property within the strata plan is known as the common property. On registration, the developer is shown as the
owner of each unit.
Owners’ Corporation
On the registration of a strata plan, a corporation, known as the strata corporation, is automatically created. The
members of the corporation are the unit-owners. The strata corporation is registered as the owner of the common
property, and is responsible for its administration and maintenance. The strata corporation and each of the unit-owners are bound by a set of by-laws which are registered along with the strata plan, and which can be amended by
all, or a specified majority, of unit-owners. Responsibility for the management of the strata corporation is vested in an executive committee appointed in accordance with the by-laws. As members of the strata corporation, unit-owners can convene meetings of the strata corporation to consider matters of importance to the condominium.
Because the developer is the registered owner of the units while they are being sold, it will control the strata
corporation with votes until all or most of the units are sold. Quite often the developer will want to keep control of
the strata corporation, to the exclusion of the unit-owners, for some time after completion. The draft by-laws
provided at the time of sale need to be checked to determine the extent to which and the period for which the
developer will retain control of the strata corporation.
Share of Common Property and Contribution to Expenses
The extent of each unit-owner’s share in the common property, and the extent to which each unit-owner
contributes to the costs incurred by the strata corporation, is determined by the unit entitlement ascribed to each unit. The unit entitlement is, or represents, a percentage fixed by the developer, usually as a function of the floor area of each unit in relation to the total area of all the units. Purchasers should be sure to understand how unit entitlement is defined in relation to the particular development. What should happen after the registration of the strata plan, and annually thereafter, is that the strata corporation meets to determine the estimated costs of administration for the coming year, and to establish a reserve fund to build up over, say, five years to cover major future expenditures such as re-painting or a planned capital improvement. Having determined an overall total, the unit-owner’s monthly contribution should be the percentage of the total that is represented by his unit entitlement.
Particularly at the outset, when the developer is in control of the strata corporation, unit-owners should ensure that they understand how the total which determines their monthly contribution has been calculated.
In the third article featured on Sunday, March 1, 2009, Mr. Savory covers Condominium Management.
Richard Savory is the principal of the law firm Savory & Co., and has been in practice in Turks & Caicos since 1981. He has been closely involved in the drafting of amendments to the “Strata Titles Ordinance” and the regulation made under it. In 1984, he registered the first strata plan in Turks & Caicos. He has also acted as chairman and secretary in various strata corporations and has been legal adviser to developers of strata title developments, to many purchasers of condominium title units, and to the governing bodies responsible for the management of condominiums.
www.savory-co.com
This article on Condominium Title in Turks & Caicos is a reprint and provided to you by Coldwell Banker Real Estate Turks & Caicos, www.coldwellbankertci.com.
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