Sn 1 EP 12: SECTIONAL PROPERTIES ACT, 2020 – Everything You Wanted to Know
Sectional Properties Act, 2020 is the law that was enacted for the administration of sectional properties in Kenya. If you intend to buy or own sectional property in Kenya such as an apartment, flat, maisonette or townhouse in a gated development, commercial office or any other property that subsists as a unit within another building or that represents a share or section of a larger property, then it would be ideal to have some basic knowledge before making the purchase.
In December 2020, the current law passed replacing the Sectional Properties Act 1987. The law was enacted in principle to align the legal administration of sectional properties with the Land Act and Land Registration Act, 2012 and with the Constitution of Kenya, 2010 following the repeal of several land administration laws.
For instance, following the process of devolution, the approvals for sectional properties fell under the purview of the municipalities and local authorities, whereas today, that mandate falls to the country governments. Their registration previously fell under the Registered Land Act which was repealed and replaced by the Land Registration Act of 2012
The Act applies to leasehold properties with unexpired residue terms of not less than 21 years and requires conversion of all long-term sub-leases intended to confer ownership of apartments, flats, maisonettes, townhouses, villas, go-downs or offices to conform to the Sectional Properties Act, 2020 and the Land Registration Act, 2012.
In this episode, Monica Mwangi, an advocate of the High Court of Kenya, and I begin by discussing what sectional properties are, and thereafter understanding the fundamental differences between the two laws (Sectional Properties Act (No. 21 of 2020) and Sectional Properties Act 1987).
We also discuss the changes that the new regime of law makes to the administration of sectional properties and how that affects property investors. One of those changes is that unlike in the past when long-term leases were issued, now, a certificate of title (if the property is freehold) or a certificate of lease (if the property is leasehold) is issued.
We also delve into the motivations behind enacting the new law, underscoring the major changes it makes to address the glaring gaps that were not addressed under the Sectional Properties Act 1987.
It is well worth noting that at the time of its enactment, the Act was widely embraced as a welcome change to the administration of sectional properties because of the protections it offered property investors with units in such buildings.
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Sn 1 EP 12: SECTIONAL PROPERTIES ACT, 2020 – Everything You Wanted to Know
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