APARTMENT OWNERSHIP

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15.

(1) The owners of all the parcels may by unanimous resolution at a meeting convened by the management corporation direct the corporation

(a) to execute on their behalf a grant of servitude or a restrictive covenant burdening the Condominium Property; or

(b) to accept on their behalf a grant of servitude or a restrictive covenant benefiting the Condominium Property.

(2) The management corporation, if it is satisfied that the resolution was duly passed, and that all persons having registered interests in the Condominium Property have consented in writing to the manner of creating those interests in respect of the Condominium property comprised in the proposed disposition, shall execute the appropriate instrument and that instrument shall be valid and effective without any execution by any person having an interest in the Condominium Property, and the receipt of the management corporation for moneys payable to the management corporation under the instrument shall be a sufficient discharge, and shall exonerate the person taking under the instrument from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

(3) Every instrument creating the servitude or restrictive covenant lodged for registration shall be endorsed with or accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and the certificate shall in favour of a purchaser and the Registrar, be conclusive evidence of the facts stated therein.

(4) The Registrar shall register the instrument creating the servitude or restrictive covenant by noting it on the registered Condominium Plan.

Transfer of part of common elements.

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16.

(1) The owners of all the parcels may by a special resolution at a meeting convened by the management corporation direct the management corporation to transfer a part of the common elements.

(2) The management corporation, if it is satisfied that the resolution was duly passed, and that all persons (other than the owners of all the parcels) having registered interests in the Condominium Property have consented in writing to the release of those interests in respect of the Condominium Property comprised in the proposed transfer, and that the authority for the time being responsible for the approval of plans for the subdivision or amalgamation of any land and the Registrar have consented in writing to the proposed transfer so far as it affects subdivision and amalgamation of the land comprised therein, shall execute the appropriate instrument and such instrument shall be valid and effective without execution by any person having an interest in the common elements, and the receipt of the management corporation for any moneys payable to the management corporation under the instrument shall be a sufficient discharge, and shall exonerate the purchaser from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

(3) Every instrument of such transfer lodged for registration shall be endorsed with or accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and the certificate in favour of the purchaser and the Registrar shall be conclusive evidence of the facts stated therein.

(4) Upon registration of the transfer by the Registrar the part of the common elements transferred shall be free from such subsisting servitudes created or implied under this Law and the Registrar shall

(a) enter a memorial of the transfer on the folio of the land register comprising the Condominium Property; and

(b) amend the registered Condominium Plan in such manner as the Registrar may think fit so as to show thereon the part of the common elements which has been transferred.

Transfer of lands and parcels.

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17.

(1) The owners of all the parcels may by special resolution at a meeting convened by the management corporation direct the management corporation to accept a transfer

(a) of any land or part thereof, free from any encumbrances except those created by statute and subsisting servitudes so that such land or part thereof shall form part of the common elements in favour of all the owners of the parcels; or

(b) of any parcel, including the undivided share in the common elements appurtenant to that parcel, free from any encumbrances except those created by statute and subsisting servitudes so that such parcel shall form part of the common elements in favour of the owners of the other parcels shown in the same registered Condominium Plan.

(2) The transfer lodged for registration shall contain a request to the Registrar that such land or part thereof, or the parcel transferred, as the case may be, be included as part of the common elements.

(3) Upon registration of such transfer the Registrar shall

(a) enter a memorial of the transfer on the folio of the land register and the registered Condominium Plan comprising the Condominium Property; and

(b) amend the registered Condominium Plan in such manner as the Registrar may think fit so as to show thereon the transferred land or part thereof or the parcel transferred as forming part of the common elements, and in the case where the parcel is transferred, to delete the share value of that parcel shown on the registered Condominium Plan and decrease the total number of share value equal to the aggregate share entitlement by amending such aggregate number shown on the registered Condominium Plan and

(c) upon such amendment being made, notify the management corporation of the aggregate share entitlement and the consequent share entitlement of each owner of a parcel.

(4) The registered transfer shall have the following effect:

(a) the owners of all the parcels shall hold the common elements (including the transferred land or parcel) as tenants in common proportional to their respective share value shown on the Condominium Plan amended pursuant to subsection (3), and for the same term and tenure and subject to the same covenants, conditions and encumbrances which the owner of all the parcels held immediately prior to the registration of the transfer, and where any parcel is then subject to a registered mortgage, charge, lease or sub-lease, or any other encumbrances, the undivided share in the transferred land or transferred parcel forming the additional common elements held by the owner of the said parcel shall in all respects be subject to the same mortgage, charge, lease or sub-lease or any other encumbrances without any further assurance; and

(b) the transferred land or part thereof, or the transferred parcel, as the case may be, shall form part of the common elements and the provisions of this Law applicable to common elements as varied by this section shall apply to such transferred land or parcel.

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(5) The provisions in sections 40, 41, 42, 43,44, 45, 46, 47, 48 and 49 of the Registration of Title Act, No. 21 of 1998 shall apply, mutatis mutandis, in relation to the execution of any instrument and for the registration of such instruments.

Amalgamation of common elements, &c.

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18.

(1) Where there are two or more management corporations established upon the registration of separate Condominium Plans by the Registrar, the owners of all parcels being members of those management corporations (hereinafter in this section referred to as ” the transferor management corporations”) may by their respective special resolutions at the meetings convened by the transferor management corporations direct that for the purpose of amalgamating the common elements within the Condominium Property which are of the same tenure and held by them as tenants in common in undivided shares the relevant transferor management corporations shall execute an instrument of transfer of the common elements of those Condominium Properties so that such common elements shall become vested as common elements in all the owners of the parcels as tenants in common in so far as those transfers affect the common elements, and upon registration of the instrument of transfer such common elements shall be amalgamated and held in the shares proportionate to their respective share parcels subject to the same covenants, conditions and encumbrances, and for the same term and tenure then held by the owners of all the parcels in respect of their respective parcels prior to the date of the registration of the transfer by the Registrar.

(2) Such transfer shall show the undivided proportionate share to be held by each owner of a parcel named therein and shall be executed by the relevant transferor management corporations.

(3) The procedure laid down in subsections (2), (3) and (4) of section 16 shall apply, mutatis mutandis, to the transferor management corporations and the owners of all the parcels of the Condominium Properties to be amalgamated under this section.

(4) Upon the amalgamation of the common elements pursuant to the registration of the transfer by the Registrar

(a) the transferor management corporations shall be amalgamated into a single management corporation (hereinafter in this section called ” the transferee management corporation “) which shall be responsible for all matters relating to the management of the subdivided buildings and the common elements relating thereto;

(b) all the members of the transferor management corporations shall be the members of the transferee management corporation;

(c) all the members of the management councils of the transferor management corporations shall, until a new management council is elected for the transferee management corporation, be deemed to be the members of the management council of the transferee management corporation;

(d) all the properties of the transferor management corporations shall be deemed to be transferred to and vest in, and all the liabilities of the transferor management corporations shall be transferred to and become the liabilities of, the transferee management corporation; and

(e) all legal proceedings pending by or against the transferor management corporations may be continued by or against the transferee management corporation.

(5) in this section

(a) ” liabilities ” includes duties; and

(b) ” properties ” includes rights and powers of every description.

Application to court.

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19.

(1) Notwithstanding the provisions of sections 16, 17 and 18, the Condominium Management Authority or an owner of a condominium parcel may make an application to the District Court of the district in which the registered Condominium Property is situated (hereafter in this section, section 20 E, section 20 M and section 20 Q referred to as ” the court”) for an order to direct the management corporation or management corporations to

(a) transfer a part of the common elements; or

(b) accept a transfer of any land or part thereof or any parcel so that the land or part thereof or parcel shall form part of the common elements; or

(2) When an application has been made to the court pursuant to subsection (1), the court, on being satisfied that it is impracticable to convene a meeting to pass a special resolution and that having regard to the rights and interests of the owners of all the parcels and the persons having registered interests in the common elements as a whole it is just and equitable that

(a) the transfer of the part of the common elements should be made; or

(b) any land or part thereof or parcel should form part of the common elements or (c) the common elements of two or more management corporations should be amalgamated, may make an order directing the management corporation or management corporations to transfer such part of the common elements, accept the transfer of the land or part thereof or parcel, or execute an instrument of transfer of two or more Condominium Properties so that such Condominium Properties shall become vested as one Condominium Property in the owners of all the parcels as tenants in common in so far as those Condominium Properties affect the common elements, as the case may be, and lodge the transfer with the Registrar.

(3) Every instrument of such transfer or acceptance of a transfer lodged for registration shall be accompanied with a certified true copy of the order of court directing such transfer or acceptance of a transfer.

(4) Upon the registration of the transfer by the Registrar

(a) in the case of a disposition of all or part of the common elements, the owners of all the parcels and other persons having registered interests in the common elements shall be bound to accept the terms of the order of the court and the provisions of subsection (4) of section 16 shall apply mutatis mutandis to such transfer;

(b) in the case of any addition to the common elements, the provisions of subsections (3) and (4) of section 17 shall apply mutatis mutandis to such transfer; and

(c) in the case of the amalgamation of the common elements of two or more management corporations, the provisions of subsection (4) of section 16 and subsections (2), (4) and (5) of section 18 shall apply mutatis mutandis to such amalgamation.

Unity of seisin.

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20. Unity of seisin in two or more parcels shall not destroy servitudes or restrictions implied or created by this Law, but on the cessation of such unity they shall continue in full force and effect as if the seizing had never been united.

Share parcels.

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20A.

(1) The share value of each parcel (except in the case of an accessory parcel where no share value shall be allotted) shown in every plan lodged for registration as a Condominium Plan shall be taken as share parcels.

(2) The determine- share parcels shall

(a) the voting rights of the owners of all the parcels;

(b) the quantum of the undivided share of each owner of a parcel in the common elements, and

(c) the proportion payable by each owner of a parcel of contributions levied by the management corporation pursuant to section 20H.

Constitution of management corporations, &c.

20B.

(1) The owners of the condominium parcels shall, by virtue of this Law, upon registration of the Condominium Plan or the Semi Condominium plan be a body corporate with perpetual succession and a common seal and shall be called ‘ the management corporation “.

(2) The management corporation may

(a) sue and be sued on any contract made by it;

(b) sue and be sued in respect of any matter affecting the common elements; and

(c) be sued in respect of any matter connected with the Condominium Property of the Semi Condominium Property for which the owners of all the condominium parcels are jointly liable.

(3) Immediately after the establishment of the management corporation by virtue of the operation of this Law the Condominium Management Authority shall subject to the provisions in the First Schedule to this Law, summon, not later than three months from the date of such establishment, the first annual general meeting of the management corporation and elect the first council, and such council shall cease to hold office at the next annual general meeting. Upon the elections of the first council, subject to the provisions in the First Schedule, the council shall perform the duties and exercise the powers of the management corporation and conduct the business of the management corporation on its behalf.

(4) The provisions of the First Schedule to this Law shall have effect in relation to the management corporation and its council,

(5) If the management corporation makes default in complying with any requirements of, or duties imposed upon it by, any of the provisions of the First Schedule to this Law the management corporation and every member of its council, or every owner of a condominium parcels, who is knowingly a party to the breach or default, shall be guilty of an offence under this Law.

(6) Any member of the management council and any owner of a condominium parcels who makes default in complying with any of the provisions of the First Schedule to this Law or makes default in complying with any requirements of, or duties imposed upon it by, any of the provisions of the First Schedule to this Law shall be guilty of an offence under this Law.

(7) In this section ” owners of all the Condominium parcels includes the persons entitled to the condominium Property or the Semi Condominium Property upon destruction of the subdivided building pursuant to section 20Q.

(8) The management corporation of the registered semi condominium property shall, continue to function as the management corporation of the registered condominium property, immediately after the conversion of such Semi Condominium Property into a Condominium Property, upon registration of such Condominium Property by the Registrar.

Duties, & c, of management corporations.

20C.

(1) The duties of the management corporation shall include the following:

(a) to manage and properly maintain the common elements and keep them in a state of good and serviceable repair;

(b) unless otherwise directed by unanimous resolution, to insure and keep insured the subdivided building to the replacement value thereof against fire and such other risks as may be prescribed under this Law;

(d) to insure against such other risks as the owners of all the condominium parcels may by special resolution direct.;

(e) to forthwith apply insurance moneys received by it in respect of damage to the subdivided building in rebuilding and reinstating it so far as it may be lawful to do so;

(f) to pay premiums on any policy of insurance effected by it;

(g) to comply with any notice or order made by any Government, public or statuary authority requiring the abatement of any nuisance on the common elements or ordering repairs or other work to be done in respect of the common elements or any building or other improvement on the Condominium Property or Semi Condominium Property” ; ;

(gg) to comply with any notice or order made by any government, public authority requiring the removal of any unauthorized constructions effected to any Condominium Property or Semi Condominium Property in contravention of the approved building plan, and to request and to assist the Condominium Management Authority or the Urban Development Authority or the local authority for such removal ;

(h) to comply with any such notice or order as is referred to in paragraph (g) given or made in respect of any of the condominium parcels, if the owner of a condominium parcel fails to do so within a reasonable time:

and (1) to pay the rent (if any) on the land on which the subdivided building is erected-

(2) The powers of the management corporation shall include the following:

(a) to take lawful steps to recover from any owner of a condominium parcel any sum expended by the management corporation in respect of that owner’s condominium parcel in complying with any such notice or order as is referred to in paragraph (h) of subsection (1);

(aa) to contract with the National Water Supply and Drainage Board, the Ceylon Electricity Board, any local authority, any other authority or any other licensee for the supply water, electricity and other utilities for all condominium parcels of the building and to provide such services to all owners of the Condominium parcels, on recovery of service charges, and monthly charges for such consumptions ;

(bb) to take every step to recover the monthly charges, for the consumption of water, electricity and other utilities provided by the National water Supply and Drainage Board, the Ceylon Electricity Board, any local authority any other authority or licensee by way of discontinuance of individual connections for water or electricity or other utilities and to continue the discontinuance of such supply to such condominium parcel, until the respective charges are being paid to the management corporation by the respective owner or owners of the condominium parcel or parcels;

(b) to purchase, hire or otherwise acquire movable property for use by the owners of all the condominium parcels in connection with their enjoyment of the common elements;

(bb) to levy a monthly contribution on the owners of all the condominium parcels in proportion to the share parcels of their respective condominium parcels for the purposes mentioned in section 20H and to recover such contribution from the owners of all the condominium parcels.

(d) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid contributions to the management fund, whether already levied or not; and

(e) to take lawful steps necessary for the performance of its duties under this Law and for the enforcement of the by-laws set out in the Second Schedule to this Law.

(f) to take every steps to prevent and to remove all unauthorized constructions effected to the Condominium Property or Semi Condominium Property in contrary to the approved building plan and to request or assist the Condominium Management Authority or the Urban Development Authority or any local authority to remove such unauthorized constructions.

(4) A policy of insurance taken out by the management corporation under this section in respect of the subdivided building shall not be liable to be brought into contribution with any other policy of insurance, except another policy taken out under this section in respect of the same subdivided building.

(5) Where the management corporation performs any repairs, work or act (whether or not the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order), and the repairs, work or act were or was wholly or substantially the liability or the responsibility of the owner of a condominium parcel only or wholly or substantially for the benefit of some of the condominium parcels only or wholly or substantially the liability or the responsibility of the owners of some of the condominium parcels only, any money expended by the management corporation in performing the repairs, work or act shall

(a) in the case where the repairs, work or act were or was wholly or substantially the liability or the responsibility of the owner of a condominium parcel only, be recoverable by the management corporation in an action in any court of competent jurisdiction as a debt due to it jointly and severally from (i) the relevant owner of the condominium parcel at the time when the repairs, work or act were or was performed ; and (ii) the relevant owner of the condominium parcel at the time when the action was commenced; or

(b) in the case where the repairs, work or act were or was wholly or substantially for the benefit of some of the condominium parcels only or wholly or substantially the liability or the responsibility of the owners of some of the condominium parcels only, be recoverable by the management corporation in an action in any court of competent jurisdiction as a debt due to it jointly and severally from

(i) the relevant owner of each of such Condominium Property or Semi Condominium Property at the time when the repairs, work or act were or was performed; and

(ii) the relevant owner, of each of such condominium parcels at the time when the action was commenced, the amount payable by any owner and former owner in respect of any condominium parcel being not more than the proportion of the debt which the share condominium parcel of the condominium parcel then bears to the aggregate share condominium parcels of all those condominium parcels.

(6) An owner of a condominium parcel who is not the owner of the condominium parcel at the time when the repairs, work or act referred to in subsection (5) were or was performed shall not be liable to pay to the management corporation any amount due under that subsection if he has, at any time on or within twenty-one days before the date he acquired the title or interest in the condominium parcel, made a requisition in writing to the management corporation to inquire about the amount (if any) recoverable by the management corporation under that subsection in respect of the condominium parcel and the management corporation has

(a) certified that no amount is then recoverable by the management corporation in respect of the condominium parcel pursuant to subsection (5); or

(b) not given a reply to the requisition at any time within fourteen days of the date of the service of the requisition, and where the management corporation has certified that any amount is due under subsection (5), the liability of such owner shall be limited to the amount so certified.

(7) Where the management corporation incurs any expenditure or performs any repairs, work or act (whether or not the expenditure was incurred or the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order) and the expenditure or the repairs, work or act were or was rendered necessary by reason of any willful or negligent act or omission on the part of, or breach of any provision of its by-laws by any person or his tenant, lessee, licensee or invitee, the amount of that expenditure of any money expended by it in performing the repairs, work or act shall be recoverable by it from that person as a debt in an action in any court of competent jurisdiction.

(8) The generality of this section shall not be prejudiced by any other provisions of this Law conferring a power or imposing a duty on the management corporation.

Policies of insurance.

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20D.

(1) Notwithstanding any existing policy of insurance effected on a subdivided building the owner of a condominium parcel may effect a policy of insurance in respect of damage to his condominium parcel in a sum equal to the amount secured by a subsisting mortgage thereon and owing as at the date of the damage or loss caused to the condominium parcel.

(2) Where any such policy of insurance is in force

(a) payment shall be made by the insurer under the policy to the registered mortgagees in order of their respective priorities, subject to the terms and conditions of the policy;

(b) subject to the terms and conditions of the policy, the insurer shall be liable to pay thereunder

(i) the value stated in the policy;

(ii) the amount of the damage or loss; or

(iii) the amount sufficient, at the date of the damage or loss, to discharge the mortgage charged upon the condominium parcel, whichever is the least amount;

condominium parcel

(c) where the amount so paid equals the amounts necessary to discharge a mortgage charged upon the condominium parcel the insurer shall be entitled to a transfer of the mortgage ; and

(d) where the amount so paid by the insurance is less than the amount necessary to discharge a mortgage charged upon the condominium parcel the insurer shall be entitled to secure the amount so paid on terms and conditions agreed upon as provided in subsection (3) or, failing agreement, on the same terms and conditions as those contained in the mortgage.

(3) For the purposes of paragraph (d) of subsection (2) any insurer and mortgagee may at any time, whether before or after a policy of insurance has been effected by the owner of a condominium parcel, agree upon the terms and conditions of the sub mortgage.

(4) Nothing in this section shall limit the right of the owner of a condominium parcel to insure against risks other than damage to his condominium parcel.

(5) The policy of insurance authorized by this section and taken out by the owner of a condominium parcel in respect of damage to his condominium parcel shall not be liable to be brought into contribution with any other policy of insurance save another policy taken out under this section in respect of damage to the same condominium parcel.

(6) The provisions of this section shall apply not withstanding the provisions of any law relating to insurance.

Appointment of administrator by court.

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20E.

(1) The court on the application of the Condominium Management Authority or the Management Corporation, the owner of a condominium parcel or any other person or body having a registered interest in a condominium parcel may appoint an administrator for the management corporation for a fixed or indefinite period and on such terms and conditions as to remuneration or otherwise as the court thinks fit.

(2) The remuneration and expenses of the administrator shall be charged upon the management fund of the management corporation.

(3) The administrator, to the exclusion of the management corporation, shall have the power and shall perform the duties of the management corporation, or such of them as the court may order:

Provided that the provisions of this subsection shall not prevent an application by the management corporation under subsection (4) for the removal or replacement of the administrator.

(4) The court on the application of the administrator or any person or body entitled to apply under subsection (1) may remove or replace the administrator.

(5) An administrator when appointed shall forthwith lodge with the Registrar and the Common Amenities Board an office copy of the order of court making his appointment.

(6) Where an order of court for removal or replacement of an administrator has been granted to any person, such person shall forthwith lodge with the Registrar and the Common Amenities Board an office copy of such removal or replacement.

(7) On any application made under this section the court may make such order for the payment of costs as it thinks fit.

Common Amenities Board to perform duties of management corporation until administrator is appointed.

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20F.

(1) W h e r e the Common Amenities Board is satisfied that the management corporation is not carrying out its duties or performing its business satisfactorily and is of the opinion that certain duties must be carried out urgently or immediate action must be taken with respect to matters of concern to the management corporation and the owners of all the condominium parcels, the Common Amenities Board shall have the power and may perform the duties of the management corporation until such time an administrator is appointed under section 20E.

(2) The expenses incurred by the Common Amenities Board for and on behalf of the management corporation shall be a charge upon the management fund of the management corporation.

(3) When the Common Amenities Board has exercised the powers conferred upon it under this section it shall as soon as possible notify the management corporation concerned or every member thereof or the person responsible for the management of the subdivided building and the common elements.

By-laws for regulating the control, management, &c, of subdivided buildings.

20G.

(1) Every subdivided building shown in a Condominium Plan or in a Semi Condominium Plan shall be regulated by by-laws which shall provide for the control, management, administration, use and enjoyment of the condominium parcels and the common elements.

(2) The by-laws shall include the by-laws set out in Second Schedule to this Law which shall not be amended or replaced by the management corporation.

(3) The by-laws set out in the Second Schedule to this Law, shall, with effect from the registration of Condominium Plan or a Semi condominium Plan, be in force for all purposes in relation to every sub-divided building.

(4) The management corporation may, subject to the provisions of this Law and any other written law by special resolution make additional by-laws, not inconsistent with the by-laws set out in the Second Schedule to this law, for safety and security measures, details of any common property of which the use is restricted, the keeping of pets, parking, floor coverings, garbage disposal, behavior, architectural and landscaping guidelines to be observed by the owners of the Condominium Parcels, and any other matters necessary for the efficient management of the Condominium Property and common elements of the Condominium Property or Semi Condominium Property of the relevant registered Condominium Plan or registered Semi Condominium Plan.

(5) The by-laws for the time being in force in respect of the subdivided buildings shall bind the management corporation and the owners of all the condominium parcels to the same extent as if they constituted properly executed agreements

(a) keep a record of the by-laws in force from time to time; and

(b) on receipt of an application in writing made by the owner of a condominium parcel or by a person duly authorized to apply on behalf of the owner of a condominium parcel for a copy of the by-laws in force, supply to such owner or duly authorized person at a reasonable cost a copy of the by-laws; and

(c) on the application of any person who satisfies the Condominium Management Authority, or the management corporation that he has a proper interest in so applying, make available for inspection the bylaws.

(6) The management corporation and the Condominium Management Authority shall

(a) keep a record of the by- laws in force from time to time;

(b) on receipt of an application in writing made by the owner of a unit or by a person duly authorized to apply on behalf of the owner of a suit for a copy of the by-laws in force, supply to such owner or duly authorized person at a reasonable cost a copy of the by-laws.; and

(c) on the application of any person who satisfies the management corporation that he has a proper interest in so applying, make available for inspection the by-laws.

(7) No by-law shall be capable of operating

(a) to prohibit or restrict the assurance of any condominium parcel; or

(b) to destroy or modify any servitude expressly or impliedly created by or under this Law.

(8) A copy of every by-law made by the management corporation and every modification or amendment of any by-law for the time being in force, certified as a true copy under the seal of the management corporation, shall be lodged by the management corporation with the Common Amenities Board.

(9) The Condominium Management Authority or the management corporation or any owner of a condominium parcel shall be entitled to apply to the Court

(a) for an order to enforce the performance of or to restrain the breach of any by-law by; or

(b) to recover damages for any loss or injury to any person or property arising out of the breach of any by-law from any person bound to comply therewith, the Condominium Management Authority or the management corporation or the administrator, and the court may make such order against any such person, the management corporation or the members of its council, or the administrator, as the court thinks fit.

(10) Every owner or occupier of a unit who commits a breach of any of the by-laws in the Second Schedule to this Law or makes default in complying with the provisions of the said by-laws, and every owner of a condominium parcel who is knowingly a party to the breach or default, shall be guilty of an offence under this Law.

Establishment of management fund

20H.

(1) The management corporation shall establish a fund for administrative expenses to which the following shall be credited:

(a) the contribution levied or, by the corporation and paid by, the owners for payment into the fund ;

(b) fines, interests, penal charges, premiums reconnection charges, and deposits levied by the corporation, and paid by the owners for payment in to the fund ;

(d) all such sums of money as may be received by the corporation in the exercise, discharge and performance of its powers, functions and duties;

(e) all such sums of money as may be received by the corporation by way of loans, donations, gifts or grants from any sources whatsoever, whether in or outside in Sri Lanka.

“(1A) There shall be paid out of the management fund of the corporation all such sums of money required to defray any expenditure incurred by the corporation in the exercise, discharge and performance of its powers, functions and duties, subject to the limitation specified in this Law:

(2) The management corporation may by a unanimous resolution or by a general resolution and with the concurrence of the Condominium Management Authority, invest as it thinks fit any moneys of the management fund :

Provided, however such resolution and concurrence shall not be required for the investment in any fixed deposit account with a licensed commercial bank, in any Treasury Bill, in the State Mortgage and Investments Bank or the Housing Development and Finance Corporation (Bank).”.

(3) For the purposes of establishing and maintaining the management fund, the management corporation for the purposes mentioned in subsection (1) may, at a general meeting

(a) determine from time to time the amounts to be raised as contributions ;

(b) raise the amounts so determined by levying contributions on the owners of all the condominium parcels in proportion to the share parcels of their respective condominium parcels ;

(d) determine the amount of deposit or penal charges or reconnection charges, in the event of disconnection of services such as water, electricity or other utilities provided to the respective condominium parcels and payable by the owner of such condominium parcels.”;

(3A) The management corporation shall establish a sinking Fund, (hereinafter referred to as the sinking Fund) as part of the management fund for the emergency expenses of any major repair to the common elements or discharge any other similar obligation of the corporation and shall

(a) from time to time at any general meeting determine the amounts to be set aside to the sinking fund ;

(b) not proceed to incur any expenditure out of the sinking fund unless a special resolution or a general resolution with the concurrence of the Condominium Management Authority, has been passed as regards the specified amount to be incurred as expenditure.

(4) On application by or on behalf of a person who is the owner of a condominium parcel or by or on behalf of a prospective purchaser of a condominium parcel that is offered for sale or by or on behalf of the mortgagee or prospective mortgagee of a condominium parcel, the management corporation shall issue to that person a certificate certifying

(a) the amount determined pursuant to subsection (3) as the contributions of that owner;

(b) the time and manner of payment of the amount determined by it pursuant to that subsection;

(d) the amount (if any) then recoverable by the management corporation in respect of the condominium parcel pursuant to subsection (5) of section 20c;

(e) the Slim or the respective sums standing to the credit of the fund or funds kept and maintained by the management corporation pursuant to subsection (1), and the amount or respective amounts out of that fund or those funds committed or earmarked for any expenses already incurred by the management corporation; and

(f) whether or not the management corporation has incurred any expenditure or performed or is about to perform any repairs, work or act in respect of which a liability is likely to be incurred by the owner or a condominium parcel under any provision of this Law and, if so, the estimated amount of the expenditure or the general nature of the repairs, work or act, and as against the management corporation and in favour of any person (including the member) relying in good faith on such certificate, that certificate shall be conclusive evidence of the matters certified therein.

(5) Any contribution levied under subsection (3) in respect of a condominium parcel shall be due and payable on the passing of a resolution to that effect by the management corporation, and in accordance with the terms of that resolution, and may be recovered as a civil debt from the owner of, or his successor in title to, the condominium parcel.

(6) For the purposes of subsection (5) ” owner of a condominium parcel includes the person for the time being receiving the rent of the condominium parcel whether as agent or trustee or as receiver, and who would receive the same if the condominium parcel were let to a tenant.

Recovery of contributions.

20J.

(1) Where

(a) any contribution has been levied under subsection (3) of section 20H in respect of a condominium parcel; or

(b) any amount is recoverable by the management corporation in respect of a condominium parcel pursuant to subsection (5) of section 20C, and such contribution or amount remains unpaid on the expiry of a period of fourteen days after the management corporation has sent a written demand for the contribution or amount, that contribution or amount including any interest due thereon (if any) shall constitute a first charge on the condominium parcel in favour of the management corporation.

(2)The management corporation shall, subject to the provisions of subsection (3), have the power of sale and all other powers relating or incidental thereto as if such management corporation was a registered mortgagee and the amount of contribution due (including any interest thereon) shall be subject to all statutory rights and charges of any Government or statuary authority over the condominium parcel and to all encumbrances registered or notified prior to the date of lodgment of the said instrument of charge.

(3)The management corporation shall not proceed under subsection (2) to sell the condominium parcel unless

(a) a special resolution has been passed by the management corporation to have the condominium parcel sold ;

(b) a notice of the intended sale has been published once in one or more daily newspapers;

(c) during the period of six weeks after the date of such publication no payment has been made for the amount of contribution including interest thereon due and the cost of publication specified in paragraph (b) as well as any other necessary incidental charges; and

(d) there is no legal action pending in court to restrain the management corporation from proceeding with the sale.

(4) Where a transfer of any condominium parcel has been made by the management corporation in the exercise of its power of sale as a charge pursuant to the provisions of subsection (3) and lodged with the Registrar for registration

(a) such transfer shall not be accepted for registration unless there has been lodged with the Registrar

(i) a certified true copy of the special resolution of the management corporation authorizing the exercise of its power of sale with the seal of the management corporation affixed thereto in the presence of two members of the council of the management corporation;

(ii) a copy each of the notice of the publication specified in paragraph (b) of subsection (3); and

(iii) a statutory declaration made by two members of the council of the management corporation referred to in sub-paragraph (i) of this paragraph jointly stating that the contribution and interest due thereon including all necessary incidental charges have not been paid and that there is no legal action pending in court to restrain the management corporation from proceeding with the sale of the condominium parcel; and

(b) neither the purchaser of the condominium parcel from the management corporation nor the Registrar shall be concerned to enquire into the regularity or validity of the sale or transfer.

(5) Where the management corporation has wrongfully or otherwise exercised its power of sale in contravention of the provisions of this section every member of the council of the management corporation present when the special resolution was passed or in whose presence the seal of the management corporation was affixed to the certified true copy of the special resolution passed and lodged with the transfer pursuant to subsection (4) of this section shall be guilty of an offence under this Law.

(6) The condominium parcel shall, upon payment of the amount of contribution due including all interest thereon and any necessary incidental charges, be discharged by the management corporation upon the receipt of such payment.

(6A) Notwithstanding any thing to the contrary in this Law or any other written law, the management corporation shall have the power to disconnect the supply of services such as water services electricity or any other utilities provided to the individual condominium parcel through the management corporation, by the National Water Supply and Drainage Board, the Ceylon Electricity Board, any local authority any other authority or licensee, if the owner of the condominium parcel fails to pay any of the amounts demanded as per the provisions specified in section 20H of this Act, by the management corporation. The management corporation shall not proceed to disconnect such supply, unless

(a) a resolution is specially passed approving the discontinuance of such service ;

(b) fourteen days notice of the intended discontinuance along with the copy of the resolution so passed is sent by registered mail to the owner of the particular condominium parcel.

(7) The provisions of this section shall be without prejudice to the rights and powers conferred on the management corporation by subsection (5) of section 20C or subsections (5) and (6) of section 20H to recover the contribution or amount due and all interest thereon including any legal costs and incidental charges necessarily incurred for the recovery of such contribution or amount in respect of any condominium parcel as a civil debt from the owner of, or his successor in title to, the condominium parcel.

(8) In this section ” Government or statutory authority” shall include any person, corporation or body, authorized or empowered by any written law to attach, sell or acquire land compulsorily.

Liability of members of management corporation.

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20K.

(1) The payment of any amount lawfully incurred by the management corporation in the course of the exercise of any of its powers or functions or the carrying out its duties or obligations shall, by virtue of this section, be guaranteed by the persons who, for the time being and from .time to time, are the members of the management corporation, the member who is or the members who are the owner or owners of each condominium parcel being liable under such guarantee only for such proportion of the money so incurred as the share parcel of that condominium parcel bears to the aggregate share parcel of all the condominium parcel.

(2) Where

(a) by reason of any liability of a member or former member of the management corporation under subsection (1) that member or former member has, in respect of any matter, been obliged to pay, and paid, more than the proportion for which he was liable in respect of that matter under subsection (3) of section 20H ; and

(b) any other member or members of the management corporation has or have not discharged or fully discharged his or their liability under that subsection in respect of that same matter,

the member or former member referred to in paragraph (a) of this subsection shall be entitled to recover from the member or members referred to in paragraph (b) of this subsection in any court of competent Jurisdiction, as a debt due to him from that member or those members, an amount not exceeding the amount by which the aggregate amount paid by him in respect of that matter exceeded the amount of the proportion for which he was liable in respect of that matter under subsection (3) of section 20H, but no member referred to in paragraph (h) of this subsection shall be held liable to pay under this subsection more than the amount remaining undischarged of his liability in respect of that matter under subsection (3) of section 20H.

Powers of voting of owners unable to control his property.

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20L.

(1) Where the owner of a condominium parcel is for any reason unable to control his property, the powers of voting conferred on him by the First Schedule to this Law shall be exercisable by the person who is for the time being authorized by law to control that property.

(2) Where the owner’s interest is subject to one or more registered mortgages, the powers of voting conferred on him by the First Schedule to this Law

(a) shall, in any case where an unanimous resolution is required, be exercised by the mortgagee first entitled in priority either personally or by proxy unless such mortgagee has at any time prior to the general meeting given notice in writing to the condominium management authority or management corporation that he does not intend to exercise the said powers of voting;

(b) in any other case, may be exercised by the owner unless the mortgagee first entitled in priority has at any time prior to the general meeting given written notice to the management corporation of his intention to exercise the said powers of voting and in such event the powers of voting shall be exercised by the mortgagee when the mortgagee is present personally or by proxy at the general meeting and if the mortgagee or his proxy is not present at the general meeting, then the powers of voting may subject to the provisions of paragraph (c) be exercised by the owner;

(c) in any case where the mortgagee first entitled in any priority does not wish to exercise his powers of voting, the registered mortgagee entitled next in priority or his proxy may exercise the powers of voting conferred upon the mortgagee first entitled in priority and if the registered mortgagee entitled next in priority or his proxy is not present at the said general meeting then such powers of voting may be exercised by the owner.

(3) A registered mortgagee shall not be entitled to exercise his powers of voting conferred by subsection (2) unless he has notified his interest to the management corporation.

Power of court to appoint Public. Trustee to exercise voting powers in certain cases.

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20M. Where the court, on the application of the Condominium Management Authority or the management corporation or the owner of a condominium parcel, is satisfied that there is no person or body able to vote in respect of a condominium parcel, the court

(a) shall, in cases where an unanimous resolution is required by this Law; and

(b) may, in any other case, appoint the Public Trustee or some other fit and proper person or body for the purpose of exercising such of the powers of voting attached to the condominium parcel under this Law as the court may determine.

Service of notice and documents.

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20N.

(1) The management corporation shall at or near the front building alignment of the Condominium Property or Semi Condominium Property

(a) cause to be continuously displayed a notice showing the name of the management corporation and the address for service of documents shown on the registered Condominium plan or Registered Semi Condominium Plan; and

(b) where the address for service of documents shown on the registered Semi Condominium Plan is the postal address of the building erected within the Condominium Property or Semi Condominium Property, cause to be continuously available a receptacle suitable for purposes of postal delivery with the name of the management corporation clearly shown thereon.

(2) Where the address for service of documents is altered the Condominium Management Authority or the management corporation shall forthwith notify the Registrar and the Common Amenities Board of the alteration, and the Registrar shall amend the registered Semi Condominium Plan accordingly.

(3) A document may be served on the management corporation by sending it by registered post addressed to the, management corporation at the address shown on the registered Semi Condominium Plan or any amendment thereto.

(4) Any notice sent by registered post to the last recorded address of the management corporation shall be deemed to be duly served on the management corporation at the time when a letter would in the ordinary course of post be delivered, and notwithstanding the fact that the letter may be returned through the post office undelivered.

(5) For the purposes of this section ” document ” includes summons, notice, order and other legal process.

Procedure when subdivided building is damaged.

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20P. Where a subdivided building shown in a “Condominium Plan” or in a “Semi Condominium Plans damaged but is not totally destroyed the management corporation shall in the following priority:

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(a) notify the Condominium Management Authority and the insurer immediately and reinstate the damaged portion of the subdivided building and provide a scheme for the continued use of the subdivided building in whole or in part subject to the supervision of the Condominium Management Authority

(b) apply the insurance moneys received by the management corporation in respect of damage to the subdivided building towards the scheme of reinstatement and continued use of the subdivided building referred to in paragraph (a);

(c) direct the payment of the insurance moneys received by the management corporation to the owners of the condominium parcels or some or one or more of them whose condominium parcels were damaged or destroyed.

Destruction of subdivided buildings.

20Q.

(1) For the purposes of his Law, a subdivided building shown in a Condominium Plan or Semi Condominium Plan shall be deemed to be destroyed when the owners of all the condominium parcels by unanimous resolution resolve that the subdivided building be destroyed.

(2) Upon destruction of the subdivided building the management corporation shall forth with lodge with the Registrar and the Condominium Management Authority a notice of its destruction.

(3) On receipt of that notice the Registrar shall enter a notification of the destruction of the subdivided building and a memorial of the vesting of the ‘Condominium Property or Semi Condominium Property in the owners as tenants in common in the registered Condominium Plan or Semi Condominium Plan and in the volume and folio of the land register comprising the ‘Condominium Property or Semi Condominium Property.

(4) Upon the entry of that memorial

(a) each owner shall cease to be the owner of the parcel and shall be entitled to the ‘Condominium Property or Semi Condominium Property as a tenant in common with the other owners in the shares proportional to his share condominium parcels and for the same term and tenure held by him in respect of his parcel;

(b) any subsisting encumbrance registered against his parcel shall be an encumbrance on his share in the land comprising the ‘Condominium Property or Semi Condominium Property, and a memorial or notification of the encumbrance entered in the volume and folio of the land register comprising that land shall bear the same date as the date of registration of that encumbrance against his parcel; and

(c) all statutory servitudes implied under this Law shall cease to affect the land comprising the ‘Condominium Property or Semi Condominium Property or any part thereof.

(5) The former owners may by unanimous resolution direct the management corporation to transfer the ‘Condominium Property or Semi Condominium Property or any part thereof.

(6) The management corporation, if it is satisfied that the resolution was duly passed and that all persons having registered interests in the ‘Condominium Property or Semi Condominium Property have consented in writing to the release of their respective interests in the land comprising the ‘Condominium Property or Semi Condominium Property or any part thereof, intended to be transferred, shall execute the appropriate transfer, and the transfer shall be valid and effective without execution by any person having a registered interest in the ‘Condominium Property or Semi Condominium Property, and the receipt of the management corporation for any moneys payable to the management corporation under the transfer shall be a sufficient discharge, and shall exonerate the person taking under the transfer from seeing to the application or being answerable for any loss or misapplication of the moneys expressed to have been so received.

(7) A transfer executed by the management corporation pursuant to the last preceding subsection shall not be accepted for registration unless accompanied by a certificate under the seal of the management corporation that the resolution was duly passed and that all necessary consents were given, and such a certificate shall, in favour of a purchaser of the ‘Condominium Property or Semi Condominium Property and in favour of the Registrar, be conclusive evidence of the facts stated therein.

(8) When land or any part thereof is transferred by a former owner or the management corporation after a notice of destruction of the subdivided building has been lodged with the Registrar

(a) the former owner, if he is transferring, shall surrender to the Registrar his title deeds relating to his parcel;

(b) the management corporation, if it is transferring on behalf of all the former owners, shall surrender to the Registrar on behalf of all the former owners their title deeds; and

(c) The Registrar on receipt of the Condominium Title certificates relating to the condominium parcel or condominium parcels, as the case may be shall cancel the Condominium Title certificates make the necessary entries in the registers of Condominium Parcels of the Condominium Property or Semi Condominium Property, and thereafter the transferee shall deal with the land parcel in accordance with the provisions of the Registration of Title Act. No. 21 of 1998.

(9) Notwithstanding the termination of a subdivision under this section the relevant record of the subsidiary register of ‘Condominium Property or Semi Condominium Property may be used in evidence as a record of matters relating to the subdivision before its termination so long as the management corporation continues in existence.

(10) Where a transfer of the Condominium Property or Semi Condominium Property pursuant to subsection (5) has been lodged with and registered by the Registrar, the management corporation shall continue in existence for the purpose of winding up its affairs subject to the supervision of the Condominium Management Authority.

(11) The court may, on the application of the Condominium Management Authority or the Management Corporation or its administrator, a former owner or a former mortgagee, by order 1 make provision for the winding up of the affairs of the management corporation and for the appointment of a liquidator to carry out the winding up.

(12) Unless and until a liquidator is appointed by court for the purpose of carrying out the winding up of the affairs of the management corporation, the Council of the management corporation, shall continue to perform the management corporations’ business for the purpose of winding up its affairs, subject to the supervision of the Condominium Management Authority. On the appointment of a liquidator all the powers of the council of the management corporation shall cease and the liquidator shall have the power to carry on the management corporations’ business for the purpose of winding up its affairs subject to the supervision of the Condominium Management Authority.

(13) On the management corporation being wound up

(a) every former owner shall be liable to contribute to the assets of the management corporation to an amount sufficient for the payment of its debts and liabilities and the costs, charges and expenses of the winding up ; and

(b) the assets of the management corporation, if any, shall be distributed among the former owners, in the same proportion as the proportion of contribution which such former owners would have been liable for in accordance with section 20A.

(14) The court may on an application by the Condominium Management Authority, a former owner, a former mortgagee or the liquidator and on being satisfied that the affairs of the management corporation have been wound up make an Order that the liquidator be released and that the management corporation be dissolved and on lodgment of such Order for registration under this Law, the Registrar shall then register and cancel the records in the title register in respect of condominium parcels of the condominium property or semi condominium property, and shall notify such cancellation to the Condominium Management Authority.

(15) In this section

(a) ” former mortgagee ” means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, was the registered mortgagee of a parcel, forming part of the subdivided building;

(b) ” former owner ” means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, was the owner of a parcel, forming part of the subdivided building.

Offences and penalties.

21.

(1) Every person who contravenes of fails (o comply with any provision of this Law or any regulation made thereunder or any order or direction lawfully given under this Law shall be guilty of an offence under this Law.

(2) Every person who is guilty of an offence under this Law shall on conviction after summary trial before a Magistrate be liable to imprisonment of either description for a period not exceeding six months or a fine not exceeding one thousand rupees or to both such imprisonment and fine and if such offence is a continuing offence to an additional fine of one hundred rupees for each day on which the offence is continued after conviction.

(3) Notwithstanding anything to the contrary in any other law. every offence under this Law shall be a cognizable offence within the meaning and for the purposes of the Code of Criminal Procedure Act.

(4) Where an offence under this Law is committed by a body of persons, whether corporate or unincorporate, every person who at the time of the commission of the offence was a director, general manager, secretary or other similar officer of such body of persons shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of that offence as he ought to have exercised having regard to the nature of his functions and in all the circumstances.

Provisions of Partition Law not to apply in certain cases.

23.* The Partition Law shall not apply to any land or building comprised in any registered Condominium Plan. (*Section 22, repealing the Condominium Property Act, No. 12 of 1970, is omitted from this Edition.)

Regulations.

24.

(1) The Minister may make regulations for the purpose of carrying out or giving effect to the principles and provisions of this Law.

(2) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation;

(3) Every regulation made by the Minister shall, as soon as convenient after its publication in the Gazette, be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of disapproval, but without prejudice to any thing previously done thereunder.

(4) Notification of the date on which any regulation made by the Minister is so deemed to be rescinded shall be published in the Gazette.

(5) Any regulation made by the Minister shall when approved by Parliament be as valid and effectual as if it were herein enacted. Notification of such approval shall be published in the Gazette.

This Law to prevail over other law.

25. The provisions of this Law shall have effect notwithstanding anything to the contrary contained in any other written law, and where there is any conflict or inconsistency between the provisions of this Law and such other law the provisions of this Law shall prevail over such other law.

Interpretation.

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26. In this Law, unless the context otherwise requires-

” building ” includes any building partially completed or, where applicable, any building to be erected within a storey shown or specified in any Condominium Plan or Semi Condominium Plan or in the Provisional Condominium Plan for approval to the authority for the time being responsible for granting such approval;

” accessory unit ” means a unit intended for separate ownership and was with any other specified unit or units for any purpose;

” assurance ” includes any transfer, lease, charge, mortgage or any other application for vesting made under this Law;

“accessory parcel” means a parcel intended for separate ownership and was with any other specified condominium parcel or condominium parcels for any purpose ;

“Condominium Management Authority” means the Condominium Management Authority established under the Condominium Management Authority Law, No 10 of 1973

” common elements ”

(a) in relation to any Condominium Property or semi Condominium Property or Provisional Condominium Property which is comprised in any plan approved by the authority for the time being responsible for the approval of such plan, means so much of the land parcel for the time being not comprised in any condominium parcel shown in a Condominium Plan or Semi Condominium or Provisional Condominium Plan; and

(b) unless otherwise described specifically as comprised in any condominium parcel in a Condominium Plan or Semi Condominium or Provisional Condominium Plan and shown as capable of being comprised in such condominium parcel includes ;

(i) foundations, columns, gardens and external beams, supports, main walls, roofs, walls, lobbies, corridors, stairs, stairways, fire escapes, entrances, exits of the building or buildings;

(ii) car parks, recreational or community facilities, gardens, parking areas, roofs and storage spaces;

(iii) central and appurtenant installations for services such as power, light, gas, hot and cold water, heating, refrigeration and air-conditioning, telephone, radio, re diffusion, garbage disposal and incinerators;

(iv) escalators, lifts, tanks, pumps, motors, fans, compressors, ducts and in general all apparatus and installations existing for common use;

(v) premises for use by security guards, caretakers and watchmen;

(vi) all facilities described as common elements in any plan for a condominium development approved by the authority for the time being responsible for such approval, and all facilities which may be shown in a legend of a Condominium Plan or Semi Condominium or Provisional Condominium Plan as common elements; and

(vii) all other parts of the land parcel not comprised m any condominium parcel necessary or convenient to the existence and maintenance and for the reasonable common use and safety of the common elements including the roads and access drains and ditches, lanes, parks, playgrounds and other open spaces appurtenant to the Condominium Property or semi Condominium Property or Provisional Condominium Property;

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” Condominium Plan ” means a plan of a Condominium Property ;

(a) is described in the title or heading thereto as Condominium Plan ;

(b) indicates the whole or any part of the land parcel comprised therein a completed building as being divided into two or more stores and is divided into two or more condominium parcels or any building having only one storey also be capable of being subdivided into parcels ; and

“condominium parcel” means a defined space which is shown as an independent parcel on a condominium plan or semi condominium plan or provisional condominium plan and which is designed for independent use consisting of one or more rooms whether occupying the entirety or part of one or more storeys in a building of more than one storey and which is shown as a separate condominium parcel ;

“encumbrance ” includes-

(i) a mortgage of the land or of any limited interest therein, whether arising by act of parties or by operation of law;

(ii) a lease of the land or any interest therein;

(iii) a servitude or restrictive covenant binding upon the land; and

(iv) an agreement to convey or re-convey the land or mortgage or lease the land ;

“land parcel” includes land parcel of any tenure, any building or parts thereof, so much of the air space above the surface as may be reasonable used or enjoyed by any owner, and all substances under the surface, (excluding minerals within the meaning of the Mines and Minerals Law, No. 4 of 1973) whether or not held apart from the surface and any estate or interest therein ;

” local authority”, in relation to a Condominium Property, or Semi Condominium Property or Provisional Condominium Property, means the local body of the area in which that Property is situated or any other authority empowered by law to approve building plans or whose approval for the construction of any building in that area is required by law;

“management corporation” in relation to any one or more completed subdivided buildings shown in a condominium plan or any one or more partly completed buildings shown in a semi condominium plan, means the management corporation established for those buildings;

“Plan of redivision or amalgamation” means a Plan of redivision or amalgamation referred to in section 12;

“prescribed” means prescribed by regulation made under this Law;

‘”Provisional Condominium Plan” means a Plan of “Provisional Condominium Property” which”

(a) is described in the title or heading thereto as Provisional Condominium Plan ;

(b) indicates the whole or any part of the land parcel , and the building proposed to be erected, and shall be capable of being sub-divided into parcels ;

(c) contains the particulars set out in section 5A ; “prospective purchaser” means a person who is a party to an agreement for sale agreeing to purchase a condominium parcel or provisional condominium parcel, from the owner of the Condominium Property or Semi Condominium Property or Provisional Condominium Property ;

(a) “recognised financial institution” means any ”licensed commercial bank” or a “licensed specialised bank” within the meaning of the Banking Act , No. 30 of 1988 ; or

(b) any finance company registered under the Finance Companies Act, No. 78 of 1988 ; or

(d) the National Housing Development Authority established by Act , No. 17 of 1979 ; or

(e) any bank established by or under any law.

“Registrar” means the Registrar of Titles appointed under the Registration of Title Act, No. 21 of 1998 and having jurisdiction over the registration district in which the Condominium Property or Semi Condominium Property or Provisional Condominium Property is situated ;

“Semi Condominium Plan” means a plan of a partly completed Condominium Property Which :

(a) is described in the title or heading thereto as Semi condominium Plan ;

(b) shows the whole or any part of the land parcel comprised therein a partly completed building having one storey capable of being subdivided into two or more condominium parcels with provisions for future construction of two or more storeys or partly completed building having one storey capable of being sub-divided into parcels ;

(d) has more than one completed condominium parcels and such condominium parcels are fit for human habitation ;

“share parcel” in respect of a condominium parcel means the share parcels determined for that condominium parcel according to its share value and shown as such in the Schedule endorsed on the Condominium Plan or Semi Condominium Plan or Provisional Condominium Plan ;

” special resolution” means a resolution passed at a meeting of the management corporation, of which at least fourteen days’ notice specifying the proposed special resolution has been given, by those persons entitled to exercise the powers of voting conferred by or under this Law either personally or by proxy who are together entitled to, or represent those entitled to, not less than three-quarters of the share units and who together constitute or represent those constituting not less than three-quarters of the membership;

” storey ” means any part of land consisting of a space of any shape below, on, or above the surface of the land parcel, or partly below and partly above the surface of the land parcel, the dimensions of which are delineated;

” subdivided building ” means any one or more buildings comprised in a Condominium Plan or Semi Condominium Plan or Provisional Condominium Plan approved by the local authority;

” unanimous resolution” means a resolution unanimously passed at a duly convened meeting of the management corporation at which all persons entitled to exercise the powers of voting conferred by or under this law are present either personally or by proxy at the time of motion ;