Sectional Properties Act

Section 1. Short title Section This Act may be cited as the Sectional Properties Act.

Section 2. Application Section This Act shall apply only in respect of land held on freehold title or on a leasehold title where the unexpired residue of the term is not less than twenty-one years and there is an intention to confer ownership.

Section 3. Interpretation Section the movable and immovable property of the Corporation associated with the units; and

Section 4. Sub-division of buildings into units Section 4(1) An existing structure may be designated a building containing a unit or part of a unit or divided into two or more units by the registration of a sectional plan prepared, by a surveyor, from a building plan that has been approved by a county government. Section 4(2) A surveyor shall not prepare a sectional plan unless he is presented with proof of ownership of the parcel or unit to which the sectional plan shall apply. Section 4(3) A sectional plan shall be accompanied by an application for registration by the corporation and a list of the persons who are the owners of the units in the parcel which shall be updated from time to time on need basis. Section 4(4)(a) describes two or more units in it; and Section 4(4)(b) is presented for registration in quadruplicate. Section 4(5) For the purposes of the Land Registration Act (Cap. 300), a sectional plan shall be deemed on registration to be embodied in the register.

Section 5. Registration of sectional plans Section 5(1)(a) close the register of the parcel described in it; and Section 5(1)(b) open a separate register for each unit described in the plan; and Section 5(1)(c) on payment of the prescribed fee, issue, in respect of each unit of the sectional property, a certificate of title if the property is freehold or a certificate of lease if the property is leasehold and shall include its proportionate share in the common property. Section 5(2) Any interests affecting the parcel which are noted on the register closed under subsection (1)(a) shall be endorsed on the registers opened under subsection (1)(b) and on the title deed for sectional property issued under subsection (1)(c). Section 5(3) No more than one unit may be referred to in one register and no other land, except the share in the common property apportioned to the owner of that unit in accordance with section 6(2) may be referred to in the same register. Section 5(4)(a) the register of the unit opened under subsection (1)(b); and Section 5(4)(b) the title deed for sectional property issued in respect of the unit under subsection (1)(c). Section 5(5) Notwithstanding any other writte...

Section 6. Certificate to indicate share in common property Section 6(1) The Registrar shall, on opening a register for a unit under section 5 (1), include in that register the share in the common property apportioned to the owner of that unit under subsection (2) of this section, and shall include that share in the common property on a title deed for sectional property issued in respect of the unit under section 5 (1) (c). Section 6(2) The common property comprised in a registered sectional plan shall be held by the owners of all the units as tenants in common in shares proportional to the unit factors for their respective units. Section 6(3) Where the same person is the owner of all the units, subsection (2) shall apply as if there were different owners for each of the units.

Section 7. Incidental rights of owners of common property, etc. Section 7(1) The common property and each unit on a sectional plan shall, by virtue of this section, have as appurtenant thereto all such rights of support, shelter and protection, and for the passage or provision of water, sewerage, drainage, gas, electricity, garbage, air and all other services of whatsoever nature (including telephone, radio and television services) over the parcel and every structure thereon as may from time to time be necessary for the reasonable use or enjoyment of the common property or unit. Section 7(2) The common property and each unit on a sectional plan shall, by virtue of this section, have as appurtenant thereto a right to the full, free and uninterrupted access and use of light to or for any windows, doors or other apertures existing at the date of the registration of the sectional plan and enjoyed at that date. Section 7(3) The rights created by this section shall carry with them all ancillary rights necessary to make them effective as if they were easements. Section 7(4) Nothing in this section shall affect any parcel other than the parcel to which the sectional plan relates.

Section 8. Liability of owner of a unit Section Except to the extent that an interest endorsed on a sectional plan relates to a particular unit, the owner of a unit shall only be liable in respect of an interest endorsed on the sectional plan in proportion to the unit factor for his unit.

Section 9. Requirements of sectional plans Section 9(1)(a) be described in the heading of the plan as a sectional plan; Section 9(1)(b) be geo-referenced; Section 9(1)(c) bear a statement containing those particulars as may be necessary to identify the title to the parcel; Section 9(1)(d) include a drawing illustrating the units and distinguishing the units by numbers or other symbols; Section 9(1)(e) show the approximate floor area of each unit; Section 9(1)(f) have endorsed on it a schedule specifying in whole numbers the unit factor for each unit in the parcel; Section 9(1)(g) be signed by the proprietor; Section 9(1)(h) be signed and sealed by the office or authority responsible for survey; Section 9(1)(i) have endorsed on it the address at which documents may be served on the Corporation concerned in accordance with section 54 ; Section 9(1)(j) clearly indicate the user of the unit; and Section 9(1)(k) contain any other particulars prescribed in the regulations. Section 9(2) The Registrar shall, within twenty-one days from the day a sectional plan is registered, submit to the county government of the area in which the parcel is located, a copy of the registered sectional plan.

Section 10. Boundaries of sectional units Section 10(1)(a) a boundary of a unit is described by reference to a floor, wall or ceiling; or Section 10(1)(b) a wall located within a unit is a load bearing wall, Section 10(2) Notwithstanding subsection (1), all doors and windows of a unit are part of the unit unless otherwise stipulated in the sectional plan.

Section 11. Certificates to accompany sectional plans Section 11(1)(a) a surveyor stating that the structure shown on the plan is within the external surface boundaries of the parcel which is the subject of the plan, and if gutterings project beyond those external boundaries, that an appropriate easement has been granted as an appurtenance of the parcel; and Section 11(1)(b) a certificate from the county government stating that the proposed division of the structure as illustrated on the plan has been approved by the county government. Section 11(2) A surveyor shall apply for an endorsement by a county government under subsection (1) (b), in the prescribed form, to the County Executive Committee Member responsible for approval of buildings. Section 11(3) Where the plan presented for registration as a sectional plan is in respect of a building containing units, it shall, in addition to the certificate required under subsection (1), be endorsed by a surveyor or such other person as shall be approved by the Director of Survey stating that the units shown on the plan correlate with the existing structure. Section 11(4)(a) the development scheme, development control by-law, zoning by-la...

Section 12. Application for sub-division etc., of a unit Section 12(1) Any proprietor may, with the approval of the county government, sub-divide or consolidate his unit by registering a sectional plan relating to the unit intended to be so sub-divided or consolidated in the manner provided by this Act for the registration of sectional plans. Section 12(2) Except as provided in this section the provisions of this Act relating to sectional plans apply with all necessary modifications to a sub-division or consolidation of units. Section 12(3) On the registration of a sectional plan of sub-division or consolidation, units comprising the sectional plan are subject to the burden and have the benefit of any easements affecting those units in the original sectional plan which are included in the sectional plan of sub-division or consolidation. Section 12(4) The schedule endorsed on a sectional plan of sub-division or consolidation as required by section 9 (1) shall apportion among the units the unit factor or factors for the unit or units in the original sectional plan that are included in the sub-division or consolidation. Section 12(5) Before registering a proposed sectional plan of sub...

Section 13. Conversion to units Section 13(1)(a) rented for residential or commercial purposes to a tenant who is not a party to a purchase agreement; and Section 13(1)(b) not included in a sectional plan, Section 13(2) All long term sub-leases that are intended to confer ownership of an apartment, flat, maisonette, town house or an office that were registered before the commencement of this Act shall be reviewed to conform to section 54 (5) of the Land Registration Act (Cap. 300) within a period of two years of the commencement of this Act. Section 13(3) An owner who had already paid stamp duty for a sub-lease shall not be required to pay stamp duty during its revision under subsection (2). Section 13(4) A developer, a management company or an owner of a unit may initiate the conversion required under subsection (2). Section 13(5) The Registrar shall dispense with the production of the original title pursuant to section 31 of the Land Registration Act (Cap. 300) if the developer is not willing or is unavailable to surrender the title to the parcel for the purposes of conversion. Section 13(6) The Registrar shall register a restriction against the title of the parcel to prevent any...

Section 14. Easements in favour of the owner Section in favour of the owner of the unit and as appurtenant to the unit, an easement for the subjacent and lateral support of the unit by the common property and by every other unit capable of affording support;

Section 15. Easements against the owner Section 15(1)(a) as against the owner of the unit, an easement, to which the unit is subject, for the subjacent and lateral support of the common property and of every other unit capable of enjoying support; Section 15(1)(b) as against the owner of the unit, an easement, to which the unit is subject, to provide shelter to the common property and to every other unit capable of enjoying shelter; and Section 15(1)(c) as against the owner of the unit, an easement, to which the unit is subject, for the passage or provision of water, sewerage, drainage, gas, electricity, garbage, artificially heated or cooled air and other services including telephone, radio and television services through or by means of any pipes, wires, cables or ducts for the time being existing within the unit as appurtenant to the common property and also to every other unit capable of enjoying those easements. Section 15(2) When an easement is implied by this section, the owner of any utility service providing a service to the parcel, or to any unit on it, is entitled to the benefit of any of those easements that are appropriate to the proper provision of that service, but no...

Section 16. Easements or restrictions exist without mention Section 16(1)(a) without any memorial or notification on that part of the register constituting titles to the dominant or servient tenements; and Section 16(1)(b) without any express indication of those tenements. Section 16(2) All ancillary rights and obligations reasonably necessary to make easements effectively apply in respect of easements implied by this Act, including the right of an owner of dominant tenement to enter a servient tenement and replace, renew or restore anything the dominant tenement is entitled to benefit from.

Section 17. Establishment of a Corporation Section 17(1) On the registration of a sectional plan, there shall be constituted a Corporation under the name "The Owners, Sectional Plan No. (the number to be specified being the number given to the plan on registration)". Section 17(2) The Registrar shall issue a certificate of registration of the corporation. Section 17(3)(a) who are the owners of units in the parcel to which the sectional plan relates; or Section 17(3)(b) who are entitled to the parcel when the sectional arrangement is terminated under this Act. Section 17(4) The Corporation shall have perpetual succession and a common seal. Section 17(5) The Corporation shall be regulated in accordance with this Act and the bylaws specified in the regulations shall subject thereto, have effect in relation to the corporation and its board. Section 17(6) The provisions of the Companies Act (Cap. 486) shall not apply to the Corporation.

Section 18. Actions by or against the Corporation Section 18(1) The Corporation shall be capable of suing and being sued in its corporate name subject to section 21 , and of doing anything that a body corporate may do. Section 18(2) Without restricting the generality of subsection (1), the Corporation may sue for and in respect of damage or injury to the common property caused by any person, whether that person is the proprietor of a unit or not.

Section 19. Liability in tort Section 19(1) Where any proceedings are brought under the Occupiers Liability Act (Cap 34) or in tort or in respect of an alleged breach of any statutory duty and it is required by law that proceedings be brought against the owner or occupier of any particular parcel of land or premises, the provisions of this section shall apply notwithstanding any Act or rule of law to the contrary. Section 19(2)(a) the common property and each of the units shall be separate premises; and Section 19(2)(b) where the proceedings are brought in respect of the common property, the Corporation shall be deemed to be the owner and occupier of the common property and any judgment which may be awarded to the plaintiff shall be entered against the Corporation accordingly: Section 19(3) The amount of any judgment (including costs) given jointly and severally as provided in subsection (2) may be recovered as a debt by the Corporation from the proprietor or proprietors against whom judgment is given in an action in any court of competent jurisdiction. Section 19(4) Where the defendant in any proceedings to which this section applies is the Corporation, the proprietors of the unit...

Section 20. Duties of the Corporation Section 20(1)(a) subject to this Act, carry out any duties imposed on it by the by-laws; Section 20(1)(b) unless by unanimous resolution all the proprietors otherwise resolve, insure and keep insured buildings and other improvements on the parcel against fire; Section 20(1)(c) effect such other insurance as it is required by law to effect or as it may consider expedient; Section 20(1)(d) pay the premiums in respect of any policies of insurance effected by it; Section 20(1)(e) keep the common property in a state of good repair; Section 20(1)(f) comply with any notice or order duly served on it by the county government or public body requiring repairs to, or work to be performed in respect of, the land or any building or improvements thereon; Section 20(1)(g) subject to this Act, control, manage, and administer the common property and do all things reasonably necessary for the enforcement of the by-laws; Section 20(1)(h) do all things reasonably necessary for the enforcement of any lease or licence under which the land is held; Section 20(1)(i) do all things reasonably necessary for the enforcement of any contract of insurance entered into by it...

Section 21. Powers of the Corporation Section Subject to this Act, the Corporation shall have all such powers as are reasonably necessary to enable it to carry out the duties imposed on it by this Act and by the by-laws: Provided that the Corporation shall not have power to carry on any trading activities.

Section 22. Disposition and dealings affecting the common property Section 22(1) Any disposition and dealing affecting the common property or land that is to become part of the common property shall be executed in accordance with Land Registration Act (Cap. 300) and approved by a unanimous resolution of the Corporation. Section 22(2) A certificate under the common seal of the Corporation that any such approval has been given shall be sufficient evidence of the approval in the absence of proof to the contrary. Section 22(3) There shall be no disposition or dealing affecting the common property until a meeting of the corporation is held in accordance with section 27 .

Section 23. Registration of transfers of common property Section 23(1) Every memorandum of transfer of the whole or any part or parts of the common property shall, in addition to any plan that the Registrar may require to be deposited under section 4 , be accompanied by a sectional plan which shall be in substitution for and shall be deposited under the same number as the existing sectional plan, and shall show the effect of the transfer to the satisfaction of the Registrar. Section 23(2) Where any unit is subject to any existing registered charge, lease, or sublease, the Registrar shall not register any transfer of the whole or any part or parts of the common property until there has been produced to him a consent in writing by every registered chargee, lessee, and sub-lessee to the release of his interest in the land comprised in the transfer; and upon registration of the transfer each such consent shall operate as a discharge of the charge or a surrender of the lease or sublease, as to the land comprised in the transfer, as the case may be. Section 23(3)(a) causing an appropriate memorial relating to the transfer to be noted on the new unit plan and on the supplementary record s...

Section 24. Voting rights Section 24(1) The voting rights of the owner of a unit shall be determined by the unit factor for his unit. Section 24(2)(a) if a unanimous resolution is required, may not be exercised by the owner, but is exercisable by the registered chargee first entitled in priority; and Section 24(2)(b) in other cases, is exercisable by the chargee first entitled in priority and may not be exercised by the owner if the chargee is present personally or by proxy. Section 24(3) Subsection (2) does not apply unless the chargee has given written notice of his charge to the Corporation. Section 24(4) An owner or chargee, as the case may be, may exercise his right to vote personally or by proxy.

Section 25. Voting where owner incapable Section 25(1)(a) in the case of an owner who is a minor, by the guardian of his estate or, if no guardian has been appointed, by the Public Trustee; or Section 25(1)(b) in the case of an owner who is for any reason unable to exercise control over his property, by the person who for the time being is authorized by law to exercise control over that property. Section 25(2)(a) shall in cases when a unanimous resolution is required by this Act; and Section 25(2)(b) may, in its discretion, in any other case, appoint the Public Trustee or such other person as the Court determines for the purpose of exercising the powers of voting under this Act and the by-laws. Section 25(3) On making an appointment under this section, the Court may make any order it considers necessary or expedient to give effect to the appointment.

Section 26. Board of management Section 26(1) A Corporation shall have a board of management that shall be constituted as provided by the by-laws of the Corporation. Section 26(2) A Corporation shall, within fifteen days of a person becoming or ceasing to be a member of the board, file at the land registry a notice in the prescribed form stating the name and address of that person and the day that the person became or ceased to be, as the case may be, a member of the board. Section 26(3) The powers and duties of a Corporation shall, subject to any restriction imposed or direction given at a general meeting, be exercised and performed by the board of the Corporation. Section 26(4) All acts done in good faith by a board are, notwithstanding that it is afterwards discovered that there was some defect in the election or appointment or continuance in office of any member of the board, as valid as if the member had been properly elected or appointed or had properly continued in office.

Section 27. Convening of meetings of the Corporation Section ninety days from the day that fifty percent of the units are sold; or

Section 28. Annual meeting Section 28(1) The board shall, once every year, convene an annual general meeting of the owners. Section 28(2) An annual general meeting of the owners shall be convened by the board within fifteen months of the conclusion of the immediately preceding annual general meeting.

Section 29. By-laws of the Corporation Section 29(1) The Corporation may make by-laws to provide for the control, management and administration of the units, the movable and immovable property of the Corporation and the common property and for establishment of a Committee. Section 29(2) Notwithstanding subsection (1), on first registration, the by-laws specified in the regulations shall be the by-laws of the Corporation. Section 29(3) Any by-law may be amended, repealed or replaced by a special resolution. Section 29(4)(a) the Corporation has filed a copy of it with the Registrar; and Section 29(4)(b) the Registrar has made a memorandum of the filing on the sectional plan. Section 29(5) No by-law shall operate to prohibit or restrict the devolution of units or any transfer, lease or other dealing with them or to destroy or modify an easement implied or created by this Act. Section 29(6) The by-laws bind the Corporation and the owners to the same extent as if the by-laws had been signed and sealed by the Corporation and by each owner and contained covenants on the part of each owner with every other owner and with the Corporation to observe and perform all the provisions of the by-l...

Section 30. Enforcement of by-laws Section 30(1) If an owner contravenes any of the by-laws, a corporation or an aggrieved owner may refer the dispute to the Committee provided for under section 20 and 30 . Section 30(2) A corporation or an aggrieved owner shall, when referring a dispute to the Committee under subsection (1), specify the by-laws that were contravened by the owner. Section 30(3) On hearing a dispute referred to it in accordance with subsection (1), the Committee shall determine the dispute and make a finding and order which shall be in writing and signed by the members of the Committee. Section 30(4) A Corporation shall not commence an action under this section unless it is authorized by the by-laws to do so. Section 30(5) Referral of a dispute to a Committee under this section shall not restrict or derogate the referee from a remedy that an owner or the corporation may have against the disputing person. Section 30(6) In the event of non-compliance with an order of a Committee the aggrieved party may apply to the Court to enforce the order of the Committee. Section 30(7) If a party is dissatisfied with the determination of a Committee under this section, the party m...

Section 31. Administrative expenses Section 31(1) In addition to other powers under this Act, the Corporation shall have the power to recover, from an owner, by an action in debt, any sum of money spent by the Corporation in execution of its duties as stipulated in section 20 . Section 31(2)(a) from the person who was the owner at the time when the resolution was passed; and Section 31(2)(b) from the person who was the owner at the time when the action was instituted, both jointly and severally. Section 31(3)(a) the amount of any contribution determined as the contribution of the owner; Section 31(3)(b) the manner in which the contribution is payable; Section 31(3)(c) the extent to which the contribution has been paid by the owner; and Section 31(3)(d) the interest owing, if any, on any unpaid balance of a contribution, and, in favour of a person dealing with that owner the certificate is conclusive proof of the matter certified in it. Section 31(4) A Corporation may register a caution against the title to an owner's unit for the amount of a contribution levied on the owner but unpaid by him. Section 31(5) On the registration of the caution under subsection (4) the Corporation has...

Section 32. Interest on outstanding account Section The Corporation may, if permitted to do so by the by-laws, charge interest at a rate to be set out in the by-laws on any unpaid balance of a contribution owing to it by an owner.

Section 33. Recovery of money Section If any interest referred to in section 32 or a deposit is owing by an owner to a Corporation, the Corporation may, in addition to any rights of recovery that it has in law, recover that amount in the same manner as a contribution under section 31 .

Section 34. Recovery of costs Section If a Corporation registers a caution against the title to a unit under section 31 (4), it may recover from the owner of the unit the cost incurred in preparing and registering the caution and in discharging the caution.

Section 35. Investments Section Subject to section 32 , a Corporation may invest any funds not immediately required by it only in those investments in which a trustee may invest under the Trustee Act (Cap. 167) and is endorsed by a special resolution.

Section 36. Information on request Section 36(1)(a) a statement setting forth the amount of any contributions due and payable in respect of a unit; Section 36(1)(b) any action commenced against the Corporation and served on the Corporation; Section 36(1)(b)(i) any action commenced against the Corporation and served on the Corporation; Section 36(1)(b)(ii) any unsatisfied judgment or order for which the Corporation is liable; and Section 36(1)(b)(iii) a written demand made on the Corporation for an amount in excess of five thousand shillings that, if not met, may result in an action being brought against the Corporation; Section 36(1)(c) the particulars of or a copy of any subsisting recreational agreement; Section 36(1)(d) the particulars of or a copy of any subsisting management agreement; Section 36(1)(e) a copy of the budget, if any, of the Corporation; Section 36(1)(f) a copy of the financial statement, if any, of the Corporation; Section 36(1)(g) a copy of the by-laws of the Corporation; Section 36(1)(h) a copy of any minutes of proceedings of a general meeting of the Corporation or of the board of management. Section 36(2) Where a request is made under subsection (1) and the...

Section 37. Handing over of documents Section 37(1)(a) all warranties and guarantees on the movable and immovable property of the Corporation and the common property for which the Corporation is responsible; Section 37(1)(b) structural, electrical, mechanical and architectural working drawings and specification; and Section 37(1)(b)(i) structural, electrical, mechanical and architectural working drawings and specification; and Section 37(1)(b)(ii) built drawings which exist for the common property for which the Corporation is responsible; Section 37(1)(c) the plans that exist showing the location of underground utility services and sewer pipes; Section 37(1)(d) all written agreements to which the Corporation is a party; Section 37(1)(e) all certificates, approvals and permits issued by a county government, the Government or an agent of the Government which relate to any property for which the Corporation is responsible. Section 37(2) A Corporation may, at any time before it receives a document under subsection (1), make a written request to the owner of the land referred to in subsection (1) for a copy of that document and that person shall, within twenty days receiving that reques...

Section 38. Insurance Section 38(1)(a) loss resulting from destruction or damage caused by fire and such other perils as are specified in the by-laws; and Section 38(1)(a)(i) loss resulting from destruction or damage caused by fire and such other perils as are specified in the by-laws; and Section 38(1)(a)(ii) damages awarded against the developer, the owner of a unit or the Corporation in an action for occupier's liability; and Section 38(1)(b) may insure the units and the common property or either of them against additional perils other than those specified in the Act or the by-laws, and for that purpose the developer has an insurable interest in the units and the common property. Section 38(2)(a) loss resulting from destruction or damage caused by fire and such other perils as are specified in the by-laws; and Section 38(2)(a)(i) loss resulting from destruction or damage caused by fire and such other perils as are specified in the by-laws; and Section 38(2)(a)(ii) damages awarded against the owner of a unit or the body corporate in an action for occupier's liability; and Section 38(2)(b) may place insurance on the units and the common property or either of them against additiona...

Section 39. Copies of insurance policies Section A Corporation shall, within twenty days of receiving a request in writing from an owner or a person authorized in writing by an owner or the chargee of a unit, provide to the person making the request, subject to the payment of such charge as is prescribed in the by-laws, copies of the policies of insurance placed by the developer or the Corporation.

Section 40. Exclusive use areas Section A Corporation, by a unanimous resolution, may, if its by-laws permit, grant a lease to an owner of a unit permitting that owner to exercise exclusive use in respect of an area or areas of the common property.

Section 41. Covenants benefiting parcel Section By a unanimous resolution a Corporation may be directed to accept on behalf of the owners a grant of easement or a restrictive covenant benefiting the parcel.

Section 42. Procedure for granting restrictive covenants Section 42(1) By a unanimous resolution a Corporation may be directed to execute on behalf of the owners a grant of easement or a restrictive covenant burdening the parcel. Section 42(2)(a) all persons having interests in the parcel; and Section 42(2)(b) all other persons having interests, other than statutory interests, that have been notified to the Corporation, have consented in writing to the release of those interests in respect of the land comprised in the proposed disposition, Section 42(3) An instrument granting an easement or covenant executed in accordance with subsection (2) is valid and effective without execution by any person having an interest in the parcel, and the receipt of the Corporation is a sufficient discharge of and exonerates all persons taking under the instrument from any responsibility for the application of the money expressed to have been so received. Section 42(4) The Registrar shall not register an instrument granting an easement or covenant authorized under this section unless it has been endorsed and is accompanied by, a certificate under the seal of the Corporation stating that the unanimous...

Section 43. Sale of units Section 43(1)(a) the purchase agreement; Section 43(1)(b) the by-laws or proposed by-laws; Section 43(1)(c) the management agreement or proposed management agreement, if any; Section 43(1)(d) the recreational agreement or proposed recreational agreement, if any; Section 43(1)(e) the lease or title of the parcel on which the unit is located or the certificate of title or the certificate of lease in respect of the unit; Section 43(1)(f) any charge that affects or proposed charge that will affect the title to the unit or proposed unit or, in respect of that charge or proposed charge a notice prescribed under subsection (2); and Section 43(1)(g) the sectional plan or proposed sectional plan. Section 43(2)(a) the maximum principal amount available under the charge; Section 43(2)(b) the maximum monthly payment that may be paid under the charge; Section 43(2)(c) the amortization period; Section 43(2)(d) the term; Section 43(2)(e) the interest rate or the formula, if any, for determining the interest rate; and Section 43(2)(f) the prepayment privileges, if any.

Section 44. Management agreement Section 44(1) A Corporation may contract a management agreement when its board is comprised of persons who were elected to the board while the majority of units were owned by the developer. Section 44(2) Subject to subsection (3), a Corporation may terminate a management agreement contracted by the Corporation at any time after its board is comprised of persons who were elected to the board after the majority of the units were owned by persons other than a developer. Section 44(3)(a) may not be terminated under subsection (2) without cause until two years have elapsed from the day that the agreement was entered into, except when the agreement permits termination at an earlier date; and Section 44(3)(b) may only be terminated under subsection (2) on the Corporation giving sixty days' written notice to the other party to the agreement of its intention to terminate the agreement, and the Corporation is not liable to the other party to the agreement by reason only of the agreement being terminated under this section.

Section 45. Renting of units Section 45(1) An owner of a unit shall not rent his unit until he has given written notice to the Corporation of his intention to rent the unit, setting forth the address at which he may be served with a notice given by the Corporation under section 46 . Section 45(2) The owner of a unit shall give an undertaking to the Corporation to be liable for any damage caused by the tenant. Section 45(3) The owner of a unit shall give the Corporation written notice of the name of the tenant residing in the unit within twenty days from the commencement of the tenancy. Section 45(4) Within twenty days of ceasing to rent his unit, the owner shall give the Corporation written notice that his unit is no longer rented.

Section 46. Notice to give up possession Section 46(1) If a tenant occupying a unit causes the contravention or contravenes the by-laws, the corporation shall give notice to the owner of the unit to take necessary action immediately. Section 46(2) If an owner fails to take necessary action within the time specified in the notice, the Corporation shall give the tenant a notice to vacate the premises. Section 46(3) If a tenant refuses to vacate, the Corporation shall take necessary action against the tenant.

Section 47. Termination of sectional property Section unanimous resolution;

Section 48. Effect of termination of sectional property Section 48(1) On the sectional status of the building being terminated under section 47 , the Corporation shall forthwith file with the Registrar a notice of the termination in the prescribed form. Section 48(2) On the receipt of a notice referred to in subsection (1) the Registrar shall make a notification in respect of the notice on the sectional plan in the manner prescribed by the regulations and on the notification being made, the owners of the units in the plan are entitled to the parcel as tenants in common in shares proportional to the unit factors of their respective units.

Section 49. Sale of sectional property Section 49(1) When the sectional status of a building is being terminated, the Corporation may, by a unanimous resolution, be directed to transfer the parcel or any part of it. Section 49(2) When the board is satisfied that the unanimous resolution was properly passed, the transfer shall be executed in accordance to Land Registration Act (Cap. 300). Section 49(3)(a) unless an amended cadastral map and plan of the parcel is submitted; Section 49(3)(b) unless the transfer it is endorsed with or is accompanied by a certificate under the seal of the Corporation that the unanimous resolution was properly passed and that all necessary consents were given; and Section 49(3)(c) until the notification required by section 48 has been made on the sectional plan. Section 49(4)(a) close the registers relating to the units and open a new register; and Section 49(4)(b) register the transfer in accordance with Land Registration Act (Cap. 300).

Section 50. Dissolution of Corporation Section 50(1) The corporation shall stand dissolved upon the termination of the sectional property. Section 50(2) By the same or subsequent order the Court may declare the Corporation dissolved on a date specified in the order.