One of the series of lectures of the Post Attorney Diploma in Conveyancing and Real Property Rights conducted by the Institute of Advanced Legal Studies affiliated to the Sri Lanka Law College (2019 - 2020)

1. CONDOMINIUM PROPERTY LAW
For the Post Attorney Diploma in “Conveyancing and Real Property Rights”
conducted by the Institute of Advanced Legal Studies affiliated to the Sri Lanka Law College (2019 – 2020)
- Presented by Ajithaa Edirimane, LLB (Colombo) MLB (Hamburg)
Attorney-at-Law & Notary Public
No part of this slide presentation shall be
extracted, copied or used without Ajithaa
Edirimane’s permission

2. 05/10/2019 (11.15 – 1.15) CREATION OF A
CONDOMINIUM PROPERTY
 11.15 – 12. 15
 Investigating Title
 Developer’s Role and problems faced by Developers
 Approval process and UDA Regulations in brief
 12.15 – 1.15
 Deed of Declaration
 Registration at the Land Registry and Registration at the Title Registry
 Effects of Registration
 Sales Agreements – restrictive clauses
 Questions

3. IDENTIFYING A BLOCK OF LAND
METHODS OF ACQUISTION OF LAND FOR
PROPERTY DEVELOPMENT
Use own funds
This Photo by Unknown Author is licensed under CC
BY-SA-NC
This Photo by Unknown Author is licensed under CC BY
Use
borrowed
funds
Enter into a Joint
Venture with the
Owner of the Land
Bank checks title 1.Joint Venture Agreement, OR
2. Incorporation of company with owner
and developer as shareholders
Purchaser
checks title
Developer’s role and legal issues

4. INVESTIGATING TITLE – LAND PURCHASE
Lawyer/ Notary representing the Developer attends to-
 Checking the ‘title’ and ‘plan’ - to confirm ownership and boundary
 checking for encumbrances and restrictions on the property
 making sure property rates, electricity and water consumption charges are paid to
the appropriate party
 Checking environmental risks – from coastal, river or surface water flooding
 arranging an assessment for stamp duty payment, obtaining an opinion and the
payment of stamp duty
 liaising with financiers to secure funding, if and when necessary.
 preparation of legal documents
 arranging and attending to final settlement and execution of deeds.

5. Identify land
- Type of project
- Suitable for the
Zone
-Apply for PPC
(Sec 8J UDA Law )
Collect relevant
documents
- From Seller
- From local
authority
Purchase
land
- Deed of
Transfer
Application for
Building Permit to
Local Authority
- Submit Building
Plan
- Submit all
clearances and
certificates
SELECTING CONTRACTOR
(CIDA grading CS2, C1, C2)

6. PROPERTY DEVELOPMENT -
APPLICATION FOR DEVELOPMENT PERMIT UNDER SEC. 9(A) OF THE UDA
AMENDMENT ACT NO. 4 OF 1982:
DOCUMENTS REQUESTED -

7.  S
1. Ownership Certificate / Confirmation, boundary confirmation obtained within the last 03 months.
2. Clearance regarding the underground storm water and sewer system obtained within the last 02
years from Water Supply and Drainage Section of the local authority
3. Clearance regarding the underground water lines from Water Supply and Drainage Board
4. Street line & Building line certificate issued after 2009.
5. Clearance for low lands, canals & drainage reservations.
6. Coast Conservation Clearance from Coast Conservation Authority – if the site is within 300 meters
of the vegetation line of a coastal zone
7. Civil Aviation Authority Clearance from Civil Aviation Authority
8. Central Environmental Authority Clearance from Central Environmental Authority
9. Condominium Management Authority Clearance.
10. Clearance for historic and architecturally valuable buildings
11. National Building Research Organization Clearance if within a hazard zone as identified by NBRO
SOME OF THE CLEARANCES AND CERTIFICATES REQUESTED

8.  A letter of Indemnity from the owner / developer indemnifying the
local authority, against any damages to adjacent structures
movable and immovable property due to the proposed
construction.
 Letter of undertaking from the owner / developer regarding the
submission of an Insurance Policy one week prior to
commencement of construction work.
 A separate parking diagram if the number of parking exceeds 03
parking bays.
 Traffic Impact Assessment (TIA) report.
 In the case of installation of air-conditioning, mechanical
ventilation or fire protection system in a building, a certificate from
a qualified person.
 An affidavit from the applicant owner certifying that all the
documents submitted by the owner / developer along with the
application are true and accurate.

9. APPLICATION FOR CERTIFICATE OF CONFORMITY
(COC)
When the building has been completed an application is made
to the relevant authority for the Certificate of Conformity (COC)
with the following documents –
1. Copy of the Development Permit
2. Copy of the Approved Building Plan
3. Copy of Approved Survey Plan
4. Recommendations and Certificates obtained from
various authorities as required under the PPC
5. Letters from professionals (i.e. Architect, Civil / Structural
Engineer, etc)
6. Ceylon Electricity Board Certificate
7. National Water Supply & Drainage Board Certificate
COC GIVEN WHEN
COMPLETED IN
ACCORDANCE WITH
THE APPROVED
BUILDING PLAN
COC IS NECESSARY FOR OCCUPATION OF
THE BUILDING – CCDP 2008
REGULATION 21
(FAILURE IS AN OFFENCE
UNDER SEC. 8K OF THE UDA LAW
PUBLIC BUILDING CERTIFICATE IF MORE THAN 200 OCCUPANTS

10. CHALLENGERS FACED BY HIGH RISE PROPERTY
DEVELOPERS
Echelon Magazine 11 July ‘18

11. REGISTRATION AND CREATION OF
CONDOMINIUMS
SEC. 5 OF ACT NO. 39 0F 2003
INCORPORATING SEC. 3A (REGISTRATION OF A CONDOMINIUM PLAN) SEC 3B
(REGISTRATION OF A PROVISIONAL CONDOMINIUM PLAN) AND SEC 3C
(REGISTRATION OF A SEMI CONDOMINIUM PLAN)
Application filed under the signature of the Owner of the
land -
 Deed of Declaration in triplicate registered under the Registration of
Title Act or Registration of Documents Ordinance
 The Provisional / Semi or Condominium Plan, as appropriate with
description of unit and share values assigned to each unit.
Originals of
all
documents
need to be
submitted in
one set

12. SOME OF THE DOCUMENTS REQUIRED TO REGISTER A
CONDOMINIUM PROPERTY
 The Building Plan approved by the Planning Authority
 Condominium Plan (Provisional, Semi or completed)
 The Certificate of Title relating to the land (if the RTA applies to the land in question)
 The written consent of everyone who has an interest on the land (i.e. mortgagee,
lessee, holder of a lien over the land, etc.
 If there is a mortgage over the land, details of the mortgage, name of the finance
institution, amount secured against each parcel / unit depicted in the Provisional /
Semi / Condominium Plan
 CMA Certificate issued by the Condominium Management Authority certifying that
provision made for common amenities is satisfactory and provision made for
management of Common Elements is satisfactory.
 A financial report confirming the cost of construction verified by a qualified quantity
surveyor
 Implementation plan of the construction of the building
 In the case of Semi / completed Condominium properties the Certificate of
Conformity by the relevant authority
 In the case of Semi / completed Condominium properties a certificate from a
qualified surveyor confirming that the completed building corresponds with the
approved plan
 In the case of Semi / completed Condominium properties the reference No. of the
registered Provisional Condominium Property
 Declaration by the Applicant

13.  DEED OF DECLARATION
 NO:
 Declaration under section 5 (1) (ii) of the Apartment Ownership Law No. 11 of 1973 as amended by Apartment Ownership (Amendment) Act
no. 45 of 1982 and Act No. 39 of 2003
 We,…………………………..Limited of ………………………in the Democratic Socialist Republic of Sri Lanka , the owner of the Condominium
Property herein described hereby declare under Section 5 (1) (ii) of the Apartment Ownership Law No. 11 of 1973 as amended by Apartment
Ownership Act No. 45 of 1982 and Act No. 39 of 2003 (hereinafter called “the Apartment Ownership Law”) as follows:-
 SITUATION OF LAND:
 An allotment of land marked Lot…..of the land called …………………situated along………..Mawatha in ………………Municipal Council in the
District of ……………….., in the village of ………. …………………together with a ………………. storey building thereon bounded on the
North…………………………………East………………………South……………………………………….West………………containing in extent
……………………according to Condominium Plan No………………………. dated…………….made by…………………………. Licensed
Surveyor and Leveler.
 NAME & ADDRESS OF OWNER OF CONDOMINIUM PROPERTY:
 CLAIM TO TITLE :
We, ……………………………………. Limited claim title as the absolute owner of the property (i.e the land together with everything
standing thereon as described herein) under and by virtue of Deed of Transfer……………………………….dated………………………attested
by ………………Notary Public and registered at the ……………….. Land Registry under title Division/Volume/Folio ………………….
 PRIOR REGISTRATION :
The property is registered at the …………………. Land Registry in …………………….. and the encumbrances attached to the same (i.e.
Mortgages and Leases) in connected Volumes/folios under provisions of the Registration of Documents Ordinance.
 ENCUMBRANCES:
 The property is subject to the following Mortgages and Leases as at the date of this instrument:

14. CONDOMINIUM PLAN
 The Condominium Plan shall comprise –
 (i) A survey plan or plans which shall be prepared and drawn by a licensed surveyor
 (a) delineate the external surface boundaries and boundary marks of the proposed Condominium Property
 (b) specify the division, volume and folio in which the Condominium Property is registered and the surveyed area
thereof;
 (c) include a vertical section of each subdivided building showing
 (i). the floors and ceilings of each story; and
 (ii). the height of each storey
 (d) include a description, as well as the vertical section and dimensions, of each building or parts thereof
proposed to be erected within the Condominium Property
 (e) delineate, each proposed parcel and define the boundaries thereof by reference to floors and walls showing
the horizontal dimensions.
 (f) show the approximate floor area of each parcel;
 (g) define the common elements of the Condominium Property;
 (h) bear an endorsement by the person preparing it to the effect that the building shown in the
Condominium Plan is within the external horizontal boundaries of the Condominium property; and
 (i) have attached to it a certificate of a qualified architect or a qualified civil or structural engineer to the
effect that the parcels shown therein are the same as those existing on the Condominium Property;

19. Under
Title
Registration

21. - divided into units as described in the provisional condominium plan and along with the
percentage of common elements
- held by the owner of a unit as an absolute owner of the same.
- Mortgages registered on the land before and during construction of the building will
extend to each and every unit thus registered.
- individual agreements of sale executed with prospective purchasers will become
encumbrances on the absolute ownership of the provisional condominium property.
- The owner (of land / developer) will not have a right to sell, lease, rent or dispose
the land parcel other than by way of mortgage until the property is registered as a
semi or completed condominium property, subject to the right of a mortgagee of
the land to sell and recover its dues.
Effect of registration of the Provisional Condominium Plan
(Sec. 14 of Act No. 39 of 2003 added as Sec.9A of the
principle act)
Does this
prevent lending
institutions from
registering
Tripartite
Agreements on
Provisional
units?

22. EFFECT OF REGISTRATION OF THE CONDOMINIUM
OR SEMI CONDOMINIUM PLAN (SEC. 13 OF ACT NO. 39
OF 2003 AMENDS SEC. 9 OF THE PRINCIPLE ACT)
 Condominium or Semi Condominium Property will become divided into the
condominium units as described in the respective plan of subdivision.
 Mortgages registered on the land before and during construction of the building will
extend to each and every unit thus registered.
 The common elements of the property will be vested with each unit owner based on
the share value assigned to the unit, as tenants in common.
 The owner of each condominium unit along with the percentage of common
elements, will become the absolute owner of the same and will have the right to
sell, lease, mortgage or dispose such unit as freehold property in the same
manner as disposing land subject to any encumbrances registered on the property.

23.  Safeguarding rights of a prospective purchaser of a unit in a
building under construction (not registered):
Addressing potential risks–
 Check title of land.
 Check Street Line & Building Line Certificate, Ownership Certificate,
 Check the reputation of the Contractor and Developer. (In Sri Lanka there is no statutory
requirement for the Developer to have a license unlike in Singapore).
 Is there adequate insurance cover? (i.e. Title Insurance for defective owner’s title, Insurance
cover for other potential risks)
 Ensure Building Permit has been obtained (Building Plan is approved). (e.g. in the District of
Colombo, in accordance with City of Colombo Development Plan, prepared under the Planning
and Building Regulations gazette 1597/8 of 2009 issued in term of Section 21 of Urban
Development Authority Law.).–
 Has allocation been made for the requisite no. of car parking slots corresponding to the units?

24.  Check whether there are any encumbrances not registered. If uncertain, obtain Affidavit
from Owner
 Check the terms and conditions of any Agreement pursuant to which the Developer has
agreed to develop the property. (i.e. Owner of land imposing condition that a certain
percentage of sale price of all units to be paid to Owner to agree to execute Deeds of
Transfer)
 Check whether the Access Road permitted to be used for the property has no
restrictions of use (not a private road)
 Check whether the Developer has retained Common Areas for his private use.


25. SALES AGREEMENT - CLAUSES