Understanding The Law Relating To Condominium Property in Uganda
A condominium (condo) is a form of real estate ownership in which individuals hold exclusive title to a specific unit (such as an apartment, townhouse, or office space) within a multi-unit development. Shared common areas (e.g., hallways, elevators, swimming pools, gyms, and parking lots) are jointly owned by all unit owners under a condominium association.
Simply, condominium property is that which is owned by an individual. They own a unit(apartment), and this unit is co-owned by many other people, but in the same building.
The term condominium is an invented Latin word because of joining the words ‘con’ and ‘dominium’. From its Latin origin, the term translates as co-ownership. Under condominium, each owner holds title to his/her unit, plus a fractional interest in the common areas of the multi-unit project. Each owner is free to deal in his/her property as he/she wish. For example, one can sell, lease, charge, or mortgage his or her property
The condominium is also defined as a system of separate ownership of individual units in a multiple-unit building, the individual units of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those units.
The above definition is in line with Article 26(1), which provides for the ownership of property either individually or in association with others. Thus, under a Condominium arrangement, a building can be divided into several units individually owned, though the land on which it is established is collectively owned.
In Uganda, the earliest semblance of condominium properties was the Bukoto Brown flats and the Bukoto white flats, which the Uganda National Construction Company constructed in the 1970s. These flats were bought and occupied by residents of Expatriates and other High-Class Natives. Condominium properties that followed Bukoto flats included Wandegeya flats for Makerere University staff, Police Senior Staff Barracks at Nsambya Police Barracks, Nalya Estates, among others.
Salient features of Condominium property.
The key features of the Condominium Property Act are enshrined under the various sections; Division of building into units and registration of condominium properties (Sections 3 – 14); easements (Sections 15 – 19); management and use of condominium property (Sections 20 – 40); dealings relating to units (Sections 41– 44).
The key features are as highlighted hereafter;
a) Division of the Building into Units: This is provided for S. 2 of the Act, and it requires a proprietor or developer to divide the property into two or more units and must have a condominium plan, which shall be in quadruplicate
1. Developer according to S.2 Condominium Property Act is a developer,” means a person who, whether alone or in conjunction with another person, develops, sells or offers for sale to the public, units or proposed units;
presented to the registrar, indicating the number of units into which the building is divided, and if the plan is to be divided into phases, indicate a timetable for the development of various phases.
b) Registration of the Condominium Property:Like stated herein, a condominium status of any building or planned building starts with registration. Before registration, however, one must first obtain approval of the Condominium plan from the relevant local authorities. The considerations for approval differ depending on location but include legitimate architectural drawings and civil structural plans.
Particularly, on registering a condominium plan, the Registrar;
• Shall cancel the certificate of title to the parcel described in the plan, except as to any mines and minerals comprised in it, and
• Shall issue a separate certificate of title for each unit as it is provided for under S.4 of the Act and as described in the plan, and any interests affecting the parcel that are noted on the certificate of title cancelled.
No more than one unit may be included in one certificate of title, and no other land, except the owner’s share in the common property, may be included in the same certificate of title with a unit.
c) Common property:The Registrar, in issuing a certificate of title for a unit, certifies on it the owner’s share in the common property. Common property does not belong to any one instead they are used in common by the owners of the units. In other words, it is equally owned and therefore the owners will use it equally and contribute equally to the maintenance of common property.
The common property in a registered condominium plan belongs to the owners of all the units as tenants in common in shares proportional to the unit factors for their respective units.
2. Building according to S.2 of the Condominium Act ” means (a)any structure, whether of a temporary or permanent nature, and, irrespective of the materials used in its erection, erected or used for or in connection with (i)accommodation or convenience of human beings or animals; (ii)the manufacture, processing, storage or sale of any goods;(iii)the rendering of any service; (iv)the destruction or treatment of refuse or other waste material;(v)the cultivation or growing of any plant or crop.
Except as provided in the Act, a share in the common property shall not be disposed of or become subject to a charge except as appurtenant to the unit of an owner and a disposition of or charge on a unit operates to dispose of or charge that share in the common property without express reference to it. Common elements generally include: walkways, driveways, lawns and gardens, lobbies, elevators, parking areas, recreational facilities, storage areas, laundry rooms, stairways, plumbing, electrical systems, and portions of walls, ceilings, and floors.
NOTE: Parts of the common elements may be designated for the exclusive use of one or more of the individual unit owners, in which case these are called limited common elements (or limited common property). In other words, they are limited to the use of specific owners. Examples would include: parking spaces, roof gardens, balconies, storage lockers, front and back yards
d) Boundaries of the unit: S.11 of the Act provides for the boundaries of the unit and they are described by by reference to the floor or ceiling or where a wall located within a unit is load bearing wall, the only portion of that floor, wall or ceiling as that case maybe that forms part of the unit including any lath and plaster, paneling, gypsum board panels, flooring material that is attached, laid, glued, or applied to the floor, wall or ceiling as the case may be.
Under S.11 (2) of the Act, all doors and windows of a unit are part of the unit unless otherwise provided in the condominium plan.
e) Subdivision of a unit. Under S.7 of the Act, after acquiring a unit, a unit owner who desires to subdivide his or her unit or consolidate two or more units may only subdivide or consolidate after obtaining approval of the local authorities of the area where the condominium is located. After obtaining the approval, he or she is also required to register with the Registrar of Titles a modified condominium plan relating to the unit intended to be subdivided or consolidated.
f) Easements. Easements are provided for under Part III of the Act and sections 15 to 19. They include rights incidental to owners of the common property under section 15(1) (a)-(d), which, among other things, include support, shelter, protection, passage or provision of water, sewerage, drainage, Gas-electricity, garbage, and air. Mulalira Faizal Umar opines that they also include allowing passages that enable ICT and communication like telephone, radio and television services because of the use of digital migration systems that we adopted by Uganda in 2013 like decoder cables and ICT wires, which every unit owner must ensure that his other co-owners is afforded reasonable support to use and enjoy.
In conclusion, the condominium property market in Uganda presents a unique opportunity for both local and foreign investors, driven by urbanization, a growing middle class, and increasing demand for modern housing solutions. As the government continues to promote real estate development and improve infrastructure, condominiums are likely to become a more popular choice for those seeking accessible and affordable living spaces. However, it is essential for prospective buyers and investors to carefully consider factors such as location, legal regulations, and market trends to make informed decisions. Embracing best practices in property management and ensuring compliance with local laws will further enhance the viability and attractiveness of condominium investments in Uganda. Overall, with proper planning and strategic investment, the condominium sector holds the potential to significantly contribute to the country’s economic growth and improve the quality of life for its residents.
