This document summarizes key parts of an Ethiopian proclamation related to condominiums. It defines important terms like "condominium", "common elements", and "unit owners association". It outlines the scope of the proclamation as applying to Addis Ababa and Dire Dawa. It also summarizes the registration process for condominiums, including submitting a declaration, description, by-laws and rules to the registrar for approval and registration, and being issued a certificate of registration.
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FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
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9thYear No.95
ADDIS ABABA-II'" September, 2003
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CONTENTS
Proclamation No. 370/2003
Condominium Proclamation Page 2395
PART ONE
Ii' h'T"C C"h
GfNERAL
1) Short Title
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PROCLAMATION NO. 370/3003
CONDOMINIUM PROCLAMATION
WHEREAS, it is deemed necessary to implement other
alternatives of urban land use in addition to plots basis urban
land use to narrow the imbalance between the demand for any
supply of housing;
WHEREAS, is recognized that the allocation of urban
land to a high rise or a row of houses condominium building
will contribute to maintain the beauty of the urban areas and to
the improvement of urban land use and supply of housing
through making great number of people benefit and com-
monly hold a small size of urban land;
WHEREAS, it is essential to the development of
condominium to create favorable conditions, to private
developers and co-operatives, which have a major con-
tributions towards the development of condominium and also
to purchase of units and to all others, which have a right,
related to the condominium;
NOW, THEREFORE, in accordance with Article 55
Sub Article (1) of the Federal Democratic Republic of
Ethiopia it is here by proclaimed as follows: .
'1;Jt"", ;JltllJ ;r.Uf'~' 'ii'i'.i!
Negarit G.P.O.Box 80,001
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2) Definition
In this Proclamation:-
1) "Condominium" means a building for residential or
other purpose with five or more separately owned
units and common elements, in a high-rise building
or in a row of houses, and includes the land holding
of the building,
2) "Common elements" means all that are part of the
condominium except the units,
3) "Common expense" means any expense related to
the performance of the objectives and duties of unit
owners associationand any expenses specified as
common expenses in this proclamation or in a
declaration,
4) "Common surplus" means the excess of all receipts
of the owners association over the expenses of the
association,
5) "Declarant" means anyone who registers a building
under Art. 3 of this proclamation,
6) "Declaration" means an instrument that describes
the rights and obligation of the unit owners
assocation and of each unit owner and includes any
amendments thereto,
7) "Description" means an instrument that specifies
the name and location of the condominium, the
boundaries of units and of common elements, and
includes all amendments thereto,
8) "Limited common elements" means common
elements designated for the exclusive use of only one
or some of the units,
9) "Unit owners Association" means an assocation of
unit owners instituted under this proclamation,
10) "Person" means natural or legal person,
11) "Registrar" means an office assigned to register a
condominium in accordance with this proclamation,
12) "Unit" means a part of the building consisting one
or more rooms and designated for il specific purpose
in a declaration and description,
Scope of Aplication
This Proclamation shall apply on Addis Ababa and Dire
Dawa City Administration,
PARTTWO
REGISTRATION AND CERTIFICA TE
4. Registration of Condeminium
1) Subject to provisions of this Proclamation, a buil-
ding may be registred as a condominium when the
owners or their agents submit written application
declaring the intention that the building be governed
under this Proclamation together with a declaration;
description, by-laws, and rules.
2) The contents of declaration, description by-laws and
rules shall be determined by the Regulations issued
to implement this Proclamation.
3) The declaration description by laws and rules shall
be approved and registered by the registrar.
5. Certificate of Registration
Certificate of registration shall be issued for thedeclarant
where the building is registered under this Proclamation.
3. ~
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6. Effect of Registration
1) The building together with the land holding and
related rights benefits and obligations shall be
governed by this Proclamation.
2) The building in the description shall be divided into
. units and common elements.
3) A unit owners association shall be instituted as an
independent legal person.
7. Amendment to Declaration Description By-laws and
Rules
1) The amendment of declaration description by-laws
and rules shall be approved by a 2/3rdmajority vote
of unit owners.
2) The amendment of declaration description by-laws
and rules approved by unit owners shall be effective
only upon registration and issuance of certificate
thereof.
PARTTHREE
OWNERSHIP
8. Unit Ownership
1) Subject to this Proclamation a unit owner is entitled
to ownership right upon the unit.
2) A unit of a building registered under this
Proclamation ma):' be subject of any legal transac-
tion.
9. Common Elements
1) Subject to the restrictions in this Proclamation, the
declaration, description by-laws and rules any unit
owner shall have the right to properly use the
common elements.
2) The right to use common elements is undivided and
attached to the unit ownership.
3) The percentage of the undivided share of interest in
the common elements attached to the unit ownership
shall be determined in the declaration.
4) The percentage of the undivided interest in the
common elements shall be a part of the unit
ownership and any legal act on a unit shall also be
effective upon the undivided share of interest.
5) Unless otherwise provided in this Proclamation
common elements are not divisible.
PART FOUR
WVITOWNERSA~OCMTION
10. The Association
The unit owners association is an association established
with a view to obtaining mutual benefits other than
securing or sharing of profits.
11. Objectives
The unit owners association shall have the following
objectives:
1) manage the condominium on behalf of unit owners:
2) ensure the peace and security of residents in the
Condominium;
3) ensure that unit owners, occupiers of units, lessees of
the common elements comply with this
Proclamation, declaration, description, by-laws and
rules;
4) Perform other necessary activities in the interest of
unit owners mutual benefit.
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12. Membership
Every unit owner in a condominium shall be a member of
the respective unit owners association.
13. Powers and Duties of the Association
The unit owners association shall have the following
powers and duties:
1) adopt or amend the declaration description by-laws
and rules.
2) approve budgets and amendments thereto;
3) determine the conditions on the use of common
elements;
4) lease, subject to security and transfer the common
elements;
5) determine fines, fees and contributions;
6) hire, administer fire emloyees;
7) own, subject to security and transfer property;
8) enter into contracts, to sue or be sued.
14. Powers and Duties of the General Meeting
The unit owners general meeting shall have the following
powers and duties:
1) approve the declaration, description and amend-
ments thereto;
2) approve the by-laws and rules, and amendments
thereto;
3) elect and remove members of the board of directors;
4) hear and decide on activity and audit reports of the
association;
-5) decide on amalgamation of the unit owners as-
sociation with other unit owners associations and on
termination of the condominium to be administeredr
this Proclamation.
6) approve the annual plan and budget;
7) Decide on such other matters as may be presented by
the board of directors.
15. Meeting of unit Owners
1) The unit owners association shall hold annual
general meeting.
2) The unit owners association shall hold other
meetings as may be called by the board of directors~
3) A general meeting shall be called by the' borard of
directors where owners of 25% of the units request
for a general meeting.
4) There shall be a quorum in any general meeting
where owners who own 50% +1 (fifty per cent plus
one) and above of the units are present.
5) Unit owners may cast vote personally or by proxy.
6) Unless otherwise provided in this Proclam~tion all
matters proposed for the consideration of the unit
owners at a meeting of owners shall be decided by
majority votes of owners.
16. Board of Directors
1) The board of directors is the managerial organ of unit
owners association.
2) Provided that declarant may assign the first board of
directors, the unit owners shall, from among the unit
owners, elect the directors.
5. 'ut I'ilrfji ~1..MA ~;J~T ;JH.IIJ ~'I'C 1G A.,."'L i +1 Iif1G 'Ha. Federal Negarit Gazeta - No.95 11th
September, 2003-Page 2399
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17. The First Board of Directors
1) The declarant shall designate the first board of
directors after registration of condominium under
this Proclamation.
2) Unit owners may elect additional members to the
first board of directors or elect members for a
succeeding board of directors.
3) The period of election under this Article, and the
transitions of powers between the first board of
directors and the succeeding board of directors shall
be determined by regulations to be issued under this
Proclamation.
18. Powers and Duties of Board of Directors
The board of directors shall have the following powers
and duties:
1) call the unit owners' General meeting under this
Proclamation and keep minutes;
2) prepare amendments for the declaration, description,
by-laws and rules and implement it upon approval;
3) prepare annual plans and the budget and implement
it upon approval;
4) keep the reccords and accounts of the association;
5) implement the decisions of the general meetings of
unit owners;
6) submit reports on the activities of the association to
the general meetings;
7). perform such other duties as may be assigned by the
general meetings.
19. By-laws and Rules
The unit owners association shall have by-laws and rules.
20. Auditor
1) Unit owners association shall have an auditors.
2) The appointment, number, qualification, duties and
dismissal of on auditors shall be determined by
regulation.
PART FIVE
SALE AND LEASE OF A UNIT
21. Sale By the Declarant
1) The declarant may cooclude the contraen of sell of a
unit before or after registration of the building.
2) The declarant shall deliver a disclosure document to
every person who purchases a unit from the declarant
before or after the registration of the building.
3) The contract of sale shall not bind the purschaser
until the decalarant delivers him disclosure
document.
4) A purschaser who received a disclosure document
may, before transfer of ownership, cancel the con-
tract of sale and notify in writing the cancellation of
the contract to the declarant.
5) The declarant shall deliver the purchaser an amended
disclosure document whenever there is a material
change in matters declared in the disclosure
document. The purchaser who received an amended
disclosure or who discovered a material change may
notify in writing the declarant the cancellation of the
contract.
6. .,~. !{j'i.!i~ ~Yu/..A '1:J/.'} :J'LflJ <I:'I'(;:t?; ~"''''L?; ""} Ii!~:i?; 'H". Federal Negarit Gazeta - No. 95 lllh September, 2003-Page 2400
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6) A delcarant who entered into a contract of sale of a
unit before the registration of the building shall
complete construction and register the building
without delay.
22. Lease of a Unit
I) The owner of a unit who leases or renews lease of a
unit shall notify to the unit owners association the
contract thereto, and shall provide a copy of the
contract of lease or renewal.
2) The owner of a unit shall notify the unit owners
association the termination of the contract of lease
and provided the relevant document that evidence
the termination.
3) The owner of a unit who leases a unit shall provide
the lessee with a copy of the delclaration and
description, by-laws and rules of the condominum.
23. Interim Occupancy
The contract of sale of a unit may provide the occupancy
of a unit by the purchaser before registration of the
building and transfer of ownership and may determine
the occupancy fee to be paid by the purchaser and the
duties of the declarant during interim occupancy.
PART SIX
COMMON EXPENSES AND SURPLUS
24. Contribution by Owners
1) Without prejudice to other provisions of this
Proclamation unit owners shall contribute to cover
common expenses in proportion to their undivided
interest in the common elements.
2) Sub Article 1 of this Article shall be applicable even
if, the owner has waived the right to use the common
elements or he has a claim against unit owners
association or the declaration, by-laws and rules
restrict him from using the common elements.
25. The Right to Lien
1) The unit owners' association shall have lien right in
proportion to the unpaid common expense against
the owner's unit and appurtenant common interest.
The amount needed from the unit owner shall
include interest on and expenses due to the delay of
the payment of common expenses.
.
2) The unit owners association must in accordance with
this proclamation obtain a certificate evidencing its
right of lien within three months period, begnining
from the default.
3) A lien right not registered with in the period fixed
under Sub Article 2 of this Article shall have no
effect after the lapse of the three months period.
4) The certificate evidencing the right to lien shall
specify the defaulted amount and the expenses
incumed by the association to recover the payment
from the unit owner.
5) The unit owners association shall give 15 days notice
to the concerned owners before the registration of the
lien.
7. _._-
.,~ ~it!!fli 4..1..&-& '1;,1&:";,Itt.lIJ ~'I'C j~ h"'1
} +'} I~fj~ '}.9". Federal Negarit Gazeta - No. 95 11ch
September, 2003-Page 2401
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6) The unit owners' association shall cause the regis-
tration of payment and give a testimonial to the
owner who paid the defaulted contribution under this
Article.
7) The right to lien of the unit owners association under
this Article shall have priority over registered or not
registered rights except tax and duties of the govern-
ment.
26. Common Surplus
1) The common Surplus obtained by the unit owners
association shall be used to cover common expenses
or shall be deposited in the reserve fund.
2) Common profit shall not be divided among unit
owners except upon the dissolution of the as-
sociation.
27. Repair and Maintenance
1) Repair of damage caused by accident:
(a) The unit owners association shall repair units,
common elements and the assets of the as-
sociation damaged by accident.
(b) Repair of damage caused by accident shall
include repairing and replacing the damaged
part. But it does. not include repairing the
damage caused to improvements made to aunit.
(c) For the purpose of this proclamation im-
provements to a unit shall be determined in
accordance with the standard set in the de-
claration to which a particular unit belong.
(d) Notwithstanding Sub-Article l(b) of this Ar-
ticle, the unit owners association shall have a
responsibility to repair improvements made to a
unit before the registration of the building.
2) Maintenance
(a) The unit owners association shall have a respon-
sibility to maintain common elements.
(b) Each unit owners shall have a responsibility to
maintain the a unit.
(c) Each unit owners shall have a responsibility to
maintain the limited common elelment reserved
for their exclusive use.
(d) The responsibility of maintenance shall mean
wear and tear caused by normal use or old age.
3) Maintenance for the unit of owners
(a) The unit owners association may maintain a
common element or a unit, which a}lnit owner
is responsibl~ but failed to maintain with in a
reasonable period of time.
(b) The cost of the maintenance done under this
Sub Article by the unit owners association shall
be added to the contributions of the defaulting
unit owner to the common expenses.
28. Reserved Fund
1) The unit owners' association shall establish a reserve
fund for repair and maintenance and may use it
where necessary.
2) The unit owners' association shall collect con-
tribution from owners for the reserve fund.
3) The Reserve Fund Under this Article shall be the
property of the unit owners association. And it shall
not be divided among members except under this
proclamation.
8. 1K" Ii'f.iin u.,t.A ~;Jt"', ;JUII') <Il'l'C ~~ b"'L i .,., !itn~ 'J.9". Federal Negarit Gazeta - No. 95 lllb September. 2003-Page 2402
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PART SEVEN
AMALGAMATION OF ASSOCIATION
29. Registration
1) Without prejudice to the provisions of this
proclamation two or more unit owners associations
may amalgamateby registering with the registrar the
Declaration, description, by-laws and rules for the
amalgamated association.
2) The registrar must ensure the decision for amal-
gamation is ratified by 80% of unit owners of each
association and is signed by duly authorized
representatives of each association.
3) The amalgamated declaration, description, by-laws
and rules shall be presented and approved by the
general meeting held to decide on amalgamation.
4) The last year audit report of the amalgamating unit
owners associations shall also be notified to mem-
bers of each association at a meeting mentioned
under Sub Article 3.
30. Effect of Registration
1) The assocaitiols are amalgamated and one amal-
gamated association shall be established.
2) The units and common elelements befor the amal-
gamation association shall be units and common
elements of the amalgamated association.
- 3) the declaration, description, by laws and rules of
each amalgamated association shall cease to apply.
4) Without prejudice to Article 31 of this proclamation,
directors of each amalgamated association shall
togehter constitute the first directors of the amal-
gamated association.
5) The memebers of the amalagmated association shall
designate one or more auditors serving until election
is held under Article 31 of this proclamation.
6) the declaration, description, by laws and rules
approved and registered under Article 29 of this
proclamation shall be the declaration, description, by
laws and rules of the amalgamating association.
7) The rights and duties of the (each) amalgamated
association shall be transferred to the amalgamated
assocaition.
31. EjectIOnof Directors and Auditors
The general meeting of the amalgamated association
shall, with in 90 days of registration of the declaration,
description, by-laws and rules of the amalgamated
association elect members of the board of directors and
designate auditors.
PART EIGHT
TERMINATION OF CONDOMINIUM TO BE
GOVERNED UNDER THIS PROCLAMA TION
Consent of Unit Owners
The association shall notify in writing to the registrar if
80% of the owners vote for termination of the con-
dominium to be governed under this proclamation.
9. 'I~' j{j'i.!!xt &.,Yo/..A ~;Jt,} :J/l.flJ </:1'C :i?; A.,."'L ?; ""} Ii!ti?; '}.9". Federal Negarit Gazeta - No. 95 11
th
September, 2003-Page 2403
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33. Substantial Damage
1) Whenever the board of directors decides there is
substantial damage to the building it must submit the
matter to the general meeting and the later shall
decide on the extent of the damage and whether to
terminate the condominium to be governed by this
proclamation.
2) The board shall notify the registrar if 80% of the
owners vote for termination of the condominium to
be governed by this proclamation in the general
meeting held under Sub Article 1 of this Article.
3) The board must repair the damage if the unit owners
do not vote in favor of the termination of the of the
condabinium to be the governed by this
proclamation by a majority determined by this
Article.
34. Sale
1) If the condominium or part of the common element is
sold, this proclamation shall cease to govern the
respective condominium or common element
thereof.
2) To make a sale under this Article, the association
shall obtain.
(a) 80% vote of unit owners in favor of sale, and
(b) Consent expressed in writing of each unit
owners to whom the limited common elements
are designated where the sale includes limited
common elements.
35. Expropriation for Public Interest
A condominium or a common element expropriated for
public interest shall cease to be governed by this
proclamation.
36. Proceeds and compensation
1) The unit owners shall share the proceeds of sale or
compensation received for condominium or com-
mon elements sold or expropriated under Article 34
and 35 of this proclamation, in the same proportion
to their interest in the common element.
2) Notwithstanding Sub-Article 1 of this Article the
proceeds of sale of limited common elements shall
be divided among owners, to whotn it is designated.
37. Registration
1) The registrar shall examine the notice under Article
32 and Article 33 of this proclamation and shall
register and deliver a certificate.
2) This proclamation and other laws enacted to im-
plement this proclamation shall cases to govern the
condominium up on the delivery of the certificate.
38. Distribution of Assets
When the condominium ceases to be governed by this
proclamation,
1) The asset of the association shall be used to pay the
debts of the association and
2) The remaining shall be divided among the owners in
proportion to their common interest.
10. '/~' !{i'I:!i~!i
t.,yu{..t '1,?{..1. ,?/LfTJ <I:'I'C j?; A'/''''L:r; .,..t Xit!1?; 'HI'" Federal Negarit Gazeta - No.95 II th
September, 2003-Page 2404
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40. Applicability of Co-operative societies Proclamation No.
147/1999
1) The co-operatives proclamation No. 147/98 shall be
applicable on co-operatives established for the pur-
pose of building a condominium.
2) This proclamation shall be applicable on co-
operatives established for the purpose of building a
condominium up on registration under this
proclamation.
41. Registration of the Building
1) The management committee of the co-operative
shall up on completion of construction, register the
building under this proclamation.
2) The management committee, which registers the
building under this Article shall become the first
board of directors and shall have the powers and
duties of the board under this proclamation.
3) The control committee under proclamation No. 147/
98 shall be an auditor under this proclamation.
4) The unit owners may elect a new board of directors
and designate auditor with in 90 days from regis-
tration of the building.
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:,.
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PART NINE
Co-operatives' Condominium
39. Establishment
Co-operatives may be established for the purpose of
building a condominium.
PART TEN
MISCELLANEOUS
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42. Power to issue Regulation
The City Administrator may issue Regulation necessary
for the implementation of this proclamation.
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43. Applicability of Other Laws
1) Articles 1281 to Article 1308 of the 1960 civil code
of Ethiopia shall not be applicable on a con-
dominium governed under this proclamation.
2) Any law, custom or practice shall not be applicable
on matters dealt with under this proclamation.
ner~: fIP/.O'in:" 1.IL
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44. Effective Date
fO'i ~1f'iA::
This Proclamation shall enter into force on date of its
publication in the Negarit Gazeta.
Done at Addis Ababa, this 11thday of September, 2003.
ij~'
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fn..1'f'A'f t..Y..t.flf Jt iJDtllr flf ~T.nf..tI
T ~IL~'}:"
GIRMA WOLDEGIORGIS
PRESIDENT OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA