TITLES FOR APARTMENTS & STRATA LOTS

This area of law is governed by The Registration (Strata Titles) Act. What the legislation in a
nutshell provides is that the owner of a strata lot/apartment owns not only his particular unit, he
also owns an undivided share in the common property in the complex.
Section 2 of the Registration (Strata Titles) Act.
“Common Property” means, in relation to any strata plan, so much of the land which such plan
relates as is for the time being not included in any strata lot contained in such plan.
Common property is essentially things like the stairs in the complex, the parking area, the pool
and corridor etc.
BOUNDARIES
Boundaries are essentially defined by physical features.
Section 7 (3) of the Registration (Strata Titles) Act
7. (3) The common boundary of any two strata lots or of a strata lot and common
property shall, unless otherwise specified in the relevant strata plan, be the centre
of the floor, wall or ceiling between such strata lots or between such strata lot and
common property as the case may be.
EASEMENTS
The Registration (Strata Titles) Act essentially provides that automatically the proprietor of a
Strata lot is entitled to the right to have his unit supported by the rest of the building and by the
common property.
He is also automatically entitled to the right for the passage to his unit of services (such as gas,
water, electricity) through other units in the complex and through the common property.
Section 8 of the Registration (Strata Titles) Act
8. (1) In respect of every strata lot there shall be implied-
(a) in favour of the proprietor thereof, and as appurtenant thereto –
(i) an easement for the subjacent and lateral support thereof, by the
common property and by every other strata lot capable of affording
support thereto;
(ii) easements 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 in the land to which the relevant
registered strata plan relates, to the extent to which such pipes,
 wires, cables or ducts are capable of being used in connection with
the enjoyment of such strata lot;
(b) as against the proprietor thereof and to which it shall be subject –
(i) an easement for the subjacent and lateral support of the common
property and of every other strata lot capable of enjoying support
from such strata lot;
(ii) easements 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 such strata lot, as appurtenant to
the common property and to every other strata lot capable of
enjoying such easements.
(2) The proprietor of a strata lot shall be entitled to have his strata lot sheltered by all
such parts of the building as are capable of affording shelter thereto.
(3) The right created by subsection (2) shall be an easement to which the aforesaid
parts of the building shall be subject and such easement shall entitle the proprietor
of the dominant tenement to enter on the servient tenement to replace, renew or
restore any shelter.
(4) All ancillary rights and obligations reasonably necessary to make easements
effective shall apply in relation to easements implied or created by this section.
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As such, the proprietor cannot do anything to their walls or floors or whatever the case may be
that would interfere with the easements.
LEGAL STRUCTURE
In order for a registered proprietor to divide his property into strata lots, he will need to have a
licensed land surveyor prepare a strata plan and then have same registered with the Registrar of
Titles.
Section 3 (1) of the Registration (Strata Titles) Act
3. (1) Land under the operation of the Registration of Titles Act may be subdivided into
strata lots in accordance with a strata plan registered by the Registrar of Titles in
the manner provided by or under this Act.
See Section 7 of the Registration (Strata Titles) Act for what needs to be included in the
strata plan.
 PART A: FORMATION OF STRATA CORPORATION

Once the strata plan and description of the proprietors of all the units automatically become a
body corporate with perpetual succession, capable of suing and being sued in its own name.
Section 4 of the Registration (Strata Titles) Act
4. (1) The proprietors of all the strata lots contained in any strata plan shall, upon
registration of the strata plan, become a body corporate (hereafter referred to as
“the corporation") under the name "The Proprietors, Strata Plan No. “(With the
appropriate number of the strata plan inserted in the blank space).
(2) The corporation shall have perpetual succession and a common seal and be
capable of suing and being sued in its name.
(3) The provisions of any enactment providing for the incorporation, regulation and
winding-up of companies shall not apply to the corporation.
(4) The corporation shall within ninety days after becoming a body corporate make
an application to the Commission for registration under this Act and pay the
prescribed fee.
MAIN DUTIES OF THE STRATA CORPORATION
1. Insure the building to the replacement value
2. To repair and maintain the common property
3. Establish a fund for administrative expenses to cover the costs of maintaining the
common property, the payment of insurance premiums etc.
4. Raise the money for this aforementioned fund by levying contributions on the
proprietors.
MANAGEMENT OF THE COMPLEX THROUGH THE CORPORATION AND BY LAWS
There are essentially two means of managing the complex:
1. The strata corporation
2. By laws
BY LAWS
These govern the essential laws of the corporation. These include provisions that provides for
how meetings are called, how voting takes place, how the board of the corporation is elected and
how resolutions are passed. It also governs the restrictions on how owners of units in the
complex can use and enjoy their units and the common property. See: Section 9 of the
Registration (Strata Titles) Act
 PART B: UNIT ENTITLEMENTS

The Act requires that each unit in a complex must have a unit entitlement allocated to it. The unit
entitlement may be based on the size of the unit (i.e. the square footage vis-à-vis the aggregate
square footage of all the units in the complex)
Unit entitlement may also be based on the value of the unit (i.e. the value of the unit vis-à-vis the
aggregate value of all the units in the complex)
WHY IS IT IMPORTANT?
1. It assesses each owner’s proportion of the common expenses (insurance, maintenance)
2. It assesses each owner’s undivided share of the common property
3. It assesses each owner’s share of the property tax payable by him regarding his unit.
See: Section 7 (4) of the Registration (Strata Titles) Act

PART C: OWNERSHIP OF COMMON PROPERTY

The unit owners own the common property as tenants in common in shares proportional to the
unit entitlements attached to their apartment.
Section 10 of the Registration (Strata Titles) Act
10. (1) The common property shall be held by the proprietors as tenants in common in
shares proportional to the unit entitlement of their respective strata lots.
(2) The Registrar of Titles shall, in making out a certificate of title for any strata lot,
certify therein the proprietor's share in the common property.
(3) Save as is provided in this Act, no share in the common property shall be disposed
of except as appurtenant to a strata lot and any assurance of a strata lot shall
operate to assure the share of the disposing party in the common property without
express reference thereto.

PART D: TERMINATION OF CORPORATION

Section 14 of the Registration (Strata Titles) Act

14. (1) Where the building is destroyed –
(a) the corporation shall forthwith lodge with the Registrar of Titles, in such
form as may be prescribed, a notification of such destruction;
(b) the Registrar of Titles shall, upon receipt of such notification, make, in
such form as may be prescribed, an entry thereof on the registered strata
plan; and thereafter
(c) the proprietors of all the strata lots contained in such strata plan shall be
entitled to the parcel as tenants in common in shares proportional to the
unit entitlement of their respective strata lots and the provisions of
sections 11 and 12 shall apply in relation to the transfer or lease of the
 parcel and to the creation of any easement or restrictive covenant
burdening or benefitting it.
(2)
For the purposes of this Act the building referred to in subsection (1) is destroyed
(a) when the proprietors by unanimous resolution so resolve; or
(b) when the court is satisfied that having regard to the rights and interests of
the proprietors as a whole it is just and equitable that such building shall
be deemed to have been destroyed and makes a declaration to that effect.
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Where the building is destroyed the Corporation is required to give notice of same to the
Registrar of Titles and the Registrar on receipt of same makes the appropriate entry on the
registered plan.
Destruction effectively terminates the subdivision effected by the strata plan and the proprietors
become entitled to the property as tenants in common in shares that are proportionate to the unit
entitlements of their respective lots.

PART E: SALE AGREEMENTS

When you are acting for a purchaser of a strata lot, the sale agreement needs to provide that the
vendor is obliged to provide the purchaser not only with evidence of up to date payment of
property taxes and water rates in relation to the unit but also with evidence that:
i. There is no outstanding maintenance contributions due in relation to the particular
unit being purchased;
ii. Whether the corporation has effected insurance coverage on the entire complex and
whether the premiums paid in relation to the policy have been paid are up to date
Prior to entering the contract, the Purchaser should inquire as to:
i. What are the common facilities?
ii. The content of the by-laws; i.e. what is allowed and what is not allowed
iii. What is the unit entitlement allocation for the apartment (just look at the title)
iv. What is the present maintenance fee payable?
v. Has the corporation effected insurance on the complex?
An attorney should also be in position to advise his client as to the peculiarities of apartment
living:
i. The by-laws limiting what you can and cannot do
ii. Easements as listed above
iii. Maintenance and consequence of non-payment
 PART F: OUTSTANDING MAINTENANCE

1. Power of Sale
Outstanding maintenance is deemed to be a charge on the apartment and the Act allows for the
Corporation to exercise a power of sale to recover the amounts outstanding.
The procedure to effect same is found in Section 5A – 5E of the Act
2. Possession of Apartment
The corporation can apply to the Court for an order for possession of the apartment. This is used
by the corporation where the proprietor cannot be located and the corporation wishes to rent the
apartment to recover the outstanding maintenance
The procedure to effect same is found in Section 5G and 5H

PART G: OTHER PROVISIONS

1. The obligation of all strata corporations to register with the commission (Section 4 (4))
2. The obligation of all strata corporations to file with the Commission audited financial
statements and a report of its activities during each financial year (Section 4(7))
3. The power of the commission to carry out an audit of the accounts and records of the
Corporation (Section 4C)
4. The power of the corporation to charge interest on outstanding maintenance
5. See Section 15A which establishes a Strata Appeals Tribunal where aggrieved persons by
a decision of the Corporation may appeal.