CHAPTER
139
LAW OF PROPERTY AND CONVEYANCING (CONDOMINIUM) |
ARRANGEMENT OF
SECTIONS |
SECTION |
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Effect of registration of Declaration. |
Incidents of unit ownership. |
Contents of deeds of unit. |
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Operation of the property by a body corporate. |
Duties and powers of body corporate. |
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The recovery of contributions. |
Liability of unit owners. |
Joint and several liability of grantor or
grantee for unpaid contributions. |
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Disposal of interest in common property. |
Compliance with byelaws, convenants,
restrictions, etc. |
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Power of unit owner to insure. |
Repair or reconstruction of building. |
Appointment of an administrator. |
Copies of Declaration and byelaws to be open for
inspection. |
Service of documents on the body corporate. |
Service of documents by the body corporate. |
Removal of property from the Act and proceedings
for partition. |
Validation of past transactions: indemnity. |
SCHEDULE - Byelaws. |
CHAPTER 139 |
LAW OF PROPERTY
AND CONVEYANCING (CONDOMINIUM) |
An Act to
provide for the ownership in fee simple of units in multi-unit buildings. | 30 of 1965
17 of 1969 |
[Assent 5th August,
1965]
[Commencement 1st April, 1967] |
1. This Act may be cited as the Law of Property and
Conveyancing (Condominium) Act. | Short title. |
2. This Act shall apply only to property as hereinafter
defined which is expressly made subject to the provisions of this Act by a
Declaration in the manner hereinafter provided. | Application of Act. |
3. In this Act unless the context otherwise requires- | Interpretation. |
"body
corporate" means the body corporate referred to in section 13 of this Act; |
"building"
means a multi-unit building or buildings comprising part of the property which
is or is to be included in a Declaration; |
"byelaws"
means the relevant byelaws which regulate the operation of a property and
includes the provisions of the articles of association of a company registered
under the
Companies Act to the extent that they relate to the operation of such property; |
"common
expenses" means- |
(a) all sums
lawfully levied against unit owners by the body corporate; |
(b) the
expenses of the operation of the property; |
(c) other
expenses agreed upon as common expenses by the body corporate; |
(d) expenses
declared to be common expenses by the provisions of this Act or by the
Declaration or the byelaws; |
"common
property" means so much of the property which, upon the recording of a
Declaration, is not contained within the boundaries of any unit; |
"Declaration"
means the instrument by which property is subjected to the provisions of this
Act and includes such instruments as may from time to time lawfully amend such
Declaration; |
"mortgage"
includes a charge for securing money or money's worth; |
"operation of
the property" means the control, management and administration of the
property including the maintenance, repair, replacement and improvement of the
common property; |
"property"
means land owned in fee simple to which a Declaration relates upon which or
upon part of which there is erected or there is in the course of erection a
building designed for internal subdivision as a multi-unit building together
with all other structures, installations, fixtures, easements, rights and
appurtenances belonging to or enjoyed with such land and building; |
"Registry"
means the Registry of Records of The Bahamas; |
"relevant"
in relation to a Declaration or byelaws means the Declaration or the byelaws
applicable to any property, building, unit or unit owner as the case may be; |
"special
resolution" means a resolution of which at least seven days prior notice
is given and which is passed at a duly convened general meeting of the body
corporate by a majority of not less than three-fourths of the total unit
entitlement and not less than three-fourths of all the persons entitled to
exercise the powers of voting conferred upon unit owners by or under this Act
present personally or by proxy at the time of the passing of the resolution; |
"unanimous
resolution" means a resolution of which at least fourteen days prior
notice is given and which is unanimously passed at a duly convened general
meeting of the body corporate whereat all persons entitled to exercise the
powers of voting conferred upon unit owners by or under this Act are present
personally or by proxy at the time of the passing of the resolution; |
"unit"
means a part of the property to which a Declaration relates intended for any
type of independent use and which includes one or more floors or parts thereof
in a building and which has direct access to a street or to common property
leading to a street and may include any appurtenance such as a balcony, terrace
or patio or any other structure such as a garage, store or parking place which
may be situated in some other part of the property; |
"unit
entitlement" means the unit entitlement of any unit fixed in accordance
with the provisions of section 4(4) of this Act for the purposes mentioned in
section 7(4) of this Act; |
"unit
owner" means the owner in fee simple of any unit and includes any person
entitled by or under this Act to exercise any powers of a unit owner. |
4. (1) A Declaration for the purposes of this Act shall
comprise an instrument (which may be in several parts and have annexed thereto
such drawings, plans and schedules as may be deemed necessary or convenient)
duly executed under seal by the person or persons having the legal and
equitable title in fee simple absolute to the property to which the Declaration
relates and shall contain the following particulars- | Contents of Declaration. |
(a) a statement
of the interests which the person or persons executing the instrument have in
the property and his or their intention by virtue of such Declaration to
subject the property to which it relates to the provisions of this Act; |
(b) a
description of the property sufficient to identify it and its location
precisely; |
(c) a
description of the building including its location in relation to the property,
the number of storeys, basements, cellars and units and the principal materials
of which it is or is to be constructed; |
(d) the
distinguishing number or other symbol, the location, approximate floor area,
limits, boundaries and any other data necessary for the proper identification
of each unit; |
(e) the
drawings and plans of the building in accordance with the provisions of section
5 of this Act; |
(f) a
statement of the covenants, conditions and restrictions covering the use,
occupancy and transfer of the several units; |
(g) a Schedule
prescribing the unit entitlement of each unit on a basis prescribed by
subsection (4) of this section; |
(h) a
description of the common property; |
(i) the style
and title of the body corporate referred to in section 13 of this Act and, if
it is a company registered under the Companies Act, a copy of its memorandum and articles of
Association; |
(j) the
byelaws applicable to the property; |
(k) any other
matters (not inconsistent with the provisions of this Act) in connection with
the property which the person or persons executing the Declaration may deem
desirable to prescribe; |
(l) the
methods consistent with this Act to be observed and the conditions to be
fulfilled for the amendment of the Declaration by the unit owners. |
(2)
No such Declaration or any amendment thereof shall be valid or in any way
affect the property to which it relates unless and until it is lodged for
record in the registry. A fee of one hundred dollars shall be payable for
recording any Declaration and a fee of twenty dollars for recording any
amendment thereof. |
(3) Insofar as it
is practicable to do so the limits and boundaries of each unit in the building
shall be defined by reference to floors, walls and ceilings and, unless the
Declaration otherwise provides, the common boundary of any unit with another
unit or with the common property shall be the centre of the floor, wall or
ceiling. |
(4) The unit
entitlement of a unit shall be expressed in the Declaration as a fraction or
percentage and shall be fixed either- |
(a) as the
approximate proportion that the estimated value of the unit at the date of the
Declaration bears to the then aggregate estimated value of all the units taken
together; or |
(b) as the
approximate proportion that the floor area of the unit at the date of the
Declaration bears to the then aggregate floor area of all the units taken
together, |
but such
proportion shall reflect any substantially exclusive advantages that may be
enjoyed by one or more unit owners but not all unit owners in a part or parts
of the common property. |
5. (1) As a part of every Declaration there shall be a
complete set of drawings and plans of each floor, basement and cellar of the
building showing the layout, locations, designations and approximate dimensions
of the units which shall be accompanied by a certificate of a recognised
architect certifying that such drawings and plans are accurate copies of the
drawings and plans of the building as approved by such proper authority as has
power to approve plans for the construction of buildings. | Drawings and plans. |
(2) The
certificate referred to in subsection (1) of this section shall also include a
statement that the drawings and plans accurately depict the building as erected
and completed unless at the date of the recording of the Declaration the
building is not complete in which event such statement shall be lodged for
record in the registry upon the completion of the building and before the first
conveyance of any unit in the building under the provisions of this Act. |
(3) An architect
shall be deemed to be recognised within the meaning of this section if he is in
possession of such professional qualifications as may from time to time be
approved by the Minister of Works for the purposes of this section. |
6. (1) Upon the lodgement for recording of a
Declaration under the provisions of section 4 of this Act, the property to
which the Declaration relates shall thereupon be deemed to be divided in such
number of separate parcels of land (in this Act defined as "units")
each having such limits and boundaries as are described in the Declaration and
such parts of the property not included within the limits and boundaries of
units shall be deemed to be common property for the purposes of this Act which
shall be held in undivided shares by all the unit owners in accordance with
section 7(1) of this Act. | Effect of registration of Declaration. |
(2)
Where before the first conveyance of any unit there is in being any mortgage or
charge affecting such unit, then either- |
(a) before the
making of such first conveyance- |
(i) every
such mortgage or charge shall be paid and satisfied; or |
(ii) the
unit shall be released from the mortgage or charge by a valid instrument of
release duly lodged for record in the registry; or |
(b) upon the
making of such first conveyance the mortgagees or chargees shall join therein, |
and if any
first conveyance of a unit is made without the provisions of this subsection having
been complied with then such conveyance shall be void and of no effect. |
(3) Subject to the
provisions of this Act each unit together with the undivided share in the
common property held therewith shall for all purposes constitute an estate in
real property which, subject to the provisions of this Act, may devolve or be
conveyed, leased, mortgaged or otherwise dealt with in the same manner and form
as land. |
(4) When recorded
a Declaration shall be binding on all owners of units in the building to which
the Declaration relates and shall constitute constructive notice to subsequent
purchasers and all other persons. |
7. (1) The undivided share of each unit owner in the
common property shall be in the same proportion as his unit entitlement and
shall be held by him as a tenant in common with all other persons who are for
the time being unit owners in the building to which the Declaration relates. | Incidents of unit ownership. |
(2) No share in
the common property shall be disposed of except as appurtenant to the unit to
which it relates and any assurance of a unit shall operate to assure the share
of the disposing party in the common property without express reference
thereto. |
(3) Save as is
otherwise provided by section 31 of this Act, no unit owner or any other person
shall be entitled to bring any action for partition or the division of any part
of or interest in the common property. |
(4) The unit
entitlement of any unit shall determine the quantum of the undivided share in
the common property appertaining to each unit and, unless the Declaration or
the byelaws otherwise provide- |
(a) the voting
rights of the unit owner; and |
(b) the
proportion of the common expenses payable from time to time as contributions by
each unit owner. |
(5) The unit
entitlement shall have a permanent character and shall not be varied unless all
the unit owners affected consent thereto, such consent being given in the
manner prescribed by the relevant Declaration. |
(6) Unless other
provision to the contrary is contained in the relevant Declaration, no unit
owner shall be entitled to subdivide his unit. |
(7) It is hereby
declared that no right to dower shall accrue from the ownership in fee simple
of any unit under the provisions of this Act or of the share in the common
property appertaining to such unit. |
8. Every deed relating to a unit executed after the
date of the recording of the relevant Declaration shall include the following
particulars- | Contents of deeds of unit. |
(a) a
description of the property including the volume and page wherein the
Declaration is recorded in the registry; |
(b) the unit
number or symbol of the unit and any other data necessary for its proper
identification; |
(c) a statement
as to the user of the unit and any covenants, conditions and restrictions
relating thereto; |
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(e) any further
details which the grantor or grantee may deem desirable to set forth consistent
with the Declaration and the provisions of this Act. |
9. In respect of each unit there shall be implied- | Support. |
(a) in favour
of the owner of such unit and as appurtenant thereto, an easement for the
subjacent and lateral support thereof by the common property and by every other
unit capable of affording support; |
(b) as against
the owner of such unit and to which the same shall be subject, an easement for
the subjacent and lateral support of the common property and of every other
unit capable of enjoying support. |
10. (1) Every unit owner shall be entitled to have his
unit sheltered by all such parts of the building as are capable of affording
shelter. | Shelter. |
(2) The right
created by this section shall be an easement to which all such of the said
parts as are capable of affording shelter shall be subject. |
(3) The easement
for shelter created by this section shall entitle the owner of the dominant
tenement to enter on the servient tenement to replace, renew or restore any
shelter: |
Provided that save
in the case of emergency, a person shall not exercise the right conferred by
this subsection except after due notice to the owner of the servient tenement
and at reasonable times during the hours of daylight. |
11. In respect of each unit there shall be implied- | Services. |
(a) in favour
of the owner of such unit and as appurtenant thereto, easements for the passage
or provision of water, sewage, 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 property to the extent to which
those pipes, wires, cables or ducts are capable of being used in connection
with the enjoyment of such unit; |
(b) as against
the owner of such unit and to which the same shall be subject, easements for
the passage of provision of water, sewage, 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 unit as appurtenant to the
common property and also to every other unit capable of enjoying such
easements. |
12. All ancillary rights and obligations reasonably
necessary to make easements effective shall apply in respect of any easement
implied or created by this Act. | Ancillary rights. |
13. (1) The operation of the property shall be vested
in a body corporate constituted in the manner provided by this section and such
body corporate shall have the powers and duties prescribed by this Act and the
relevant byelaws. | Operation of the property by a body corporate. |
(2) Where a
company has been incorporated under the Companies Act to operate a
property to which a Declaration relates and provision is made for every owner
for the time being of a unit in such property to be ipso facto a member
of such company as of right, such company shall, if the Declaration so
provides, be deemed to be a body corporate for the purposes of this Act. In any
other case as from the date of the recording of a Declaration all the owners
from time to time of the units in the property to which the Declaration relates
shall constitute a body corporate by virtue of this Act under such style and
title as is prescribed in the Declaration. |
(3) A body
corporate constituted under this Act shall be a non-profit making body which
shall have perpetual succession and a common seal, shall be capable of suing
and being sued in its corporate name and shall have powers and duties as are
prescribed by this Act or contained in byelaws for the time being in force. |
(4) In particular
the body corporate may- |
(a) sue and be
sued on any contract made by it; |
(b) sue any
person for and in respect of any damage or injury to the common property
whether or not the person sued is a unit owner; and |
(c) sue in
respect of any matter connected with the property for which the unit owners are
jointly liable. |
14. (1) The duties of the body corporate shall include
the following- | Duties and powers of body corporate. |
(a) to operate
the property for the benefit of all unit owners and to be responsible for the
enforcement of the byelaws; |
(b) to keep the
common property in a state of good and serviceable repair; |
(c) to insure
and keep insured the building (in respect of which the body corporate shall be
deemed to have an insurable interest) to the replacement value thereof against
fire, hurricane and seawave unless the unit owners by unanimous resolution
otherwise decide; |
(d) to insure
against such other risks as the unit owners may by special resolution determine
for which purpose the body corporate shall be deemed to have an insurable
interest; |
(e) to comply
with notices or orders issued by any competent public authority requiring
repairs to or work to be done in respect of the property or the building; |
(f) to carry out
the directions of the unit owners expressed by resolution or otherwise as may
be prescribed by the Declaration or the byelaws, and |
(g) to
carry out any other duties which may be prescribed by the Declaration of the
byelaws. |
(2) The powers of
the body corporate shall include the following- |
(a) to
establish funds for administrative expenses sufficient in the opinion of the
body corporate for the operation of the property, for the payment of any
premiums of insurance, for the establishment of reserves for capital
improvements or renewals of common property and the discharge of any other
obligations of the body corporate; |
(b) to
determine from time to time amounts of money to be raised for the purposes
aforesaid; |
(c) to raise
the amounts of money so determined by levying contributions on the unit owners
in proportion to the unit entitlement of their respective units; |
(d) to recover
from any unit owner any sum of money expended by the body corporate for repairs
or work done by it or at its direction in complying with any notice or order
issued by a competent public authority in respect of any part of the property
comprising the unit of any unit owner; |
(e) to employ
such staff as may be deemed necessary to carry out its duties; |
(f) to
receive the proceeds of any insurance taken out by the body corporate against
the loss or damage of the building in trust for the unit owners in proportion
to their respective interests and, subject to the provisions of section 31 of
this Act, to apply the same for the repair or reconstruction of the building,
and |
(g) to
exercise any other powers as may be conferred upon the body corporate by the
Declaration or the byelaws. |
(3) All
agreements, decisions and determinations lawfully made by the body corporate in
accordance with this Act, the relevant Declaration and byelaws shall be deemed
to be binding on all unit owners. |
15. (1) Subject to the provisions of this Act, the
byelaws shall among other things provide for the following matters- | Contents of byelaws. |
(a) the
nomination and election of a board of management; |
(b) the method
of removal from office of members of such board; |
(c) the powers
and duties of such board; |
(d) the method
of calling meetings of unit owners; |
(e) the fixing
of a quorum; |
(f) the
percentages of votes consistent with the provisions of this Act which shall be
necessary to adopt decisions binding on all unit owners; |
(g) the
operation of the property; and |
(h) the
determination and collection of common expenses. |
(2) The byelaws
may among other things provide for the formulation and enforcement of such
restrictions on and requirements respecting the use and maintenance of units
and the use of all common property, not set forth in the Declaration, as are
designed to prevent unreasonable interference with the use of their respective
units and of the common property by the several unit owners. Such byelaws may
restrict the user of certain parts of the common property exclusively to
certain units. |
(3) Byelaws shall
not be added to, amended or repealed except by special resolution and any such
addition, amendment or repeal shall not come into operation unless and until
lodged for record in the registry as an amendment of the relevant Declaration. |
(4) Save as may
otherwise be specifically provided by the byelaws contained in a Declaration,
the byelaws set out in the Schedule to this Act shall be in force as
regards the property to which such Declaration relates. |
16. (1) Any powers of voting conferred by or under
this Act may be exercised- | Voting rights. |
(a) in the case
of a unit owner who is an infant, by his guardian; and |
(b) in the case
of a unit owner who is for any reason unable to control his property, by the
person for the time being authorised by law to control that property. |
(2) Where on the
application of the body corporate or any unit owner the Supreme Court is
satisfied that there is no person able or that no person can be traced who is
able to vote in respect of a unit, the court- |
(a) shall, in
cases where a unanimous resolution is required by or under this Act; and |
(b) may, in its
discretion, in any other case, |
appoint the
Registrar of the Supreme Court or some other fit and proper person for the
purposes of exercising such powers of voting under this Act as the court shall
determine. |
(3) Where a unit
is subject to a mortgage which has been recorded in the registry and notice in
writing thereof has been given to the body corporate, the power of voting
conferred upon the unit owner of such unit by or under this Act may be
exercised by the mortgagee first in priority and shall not be exercised by the
unit owner unless such mortgagee has by notice in writing to the body corporate
waived the right conferred on him by this subsection. Such mortgagee may at any
time by further notice in writing to the body corporate revoke such waiver of
his right under this subsection. |
17. (1) The body corporate shall keep detailed and
accurate records in chronological order of the receipts and expenditures
arising from the operation of the property. Such records and any vouchers
authorising any payments shall be available for inspection by any unit owner at
all reasonable times. | Accounts. |
(2) Annual
accounts duly audited by a qualified auditor shall be rendered by the body
corporate to all unit owners at least once in every year. |
18. (1) Any contribution levied by the body corporate
on any unit owner shall be due and payable by the unit owner seven clear days
after the service of a notice in writing of the levying of such contribution. | The recovery of contributions. |
(2) Any
contribution which has not been paid by a unit owner upon its becoming due may
be recovered as a debt by the body corporate by action in a court of competent
jurisdiction and any such action shall be maintainable without prejudice to the
rights conferred upon the body corporate by section 21 of this Act. |
(3) A unit owner
shall not have power to exempt himself from his liability to make contributions
to the body corporate by waiver of the use or enjoyment of any of the common
property or by the abandonment of his unit. |
19. A unit owner shall have no personal liability for
the acts or omissions of the body corporate and his liability for the common
expenses shall be limited to the amounts of the contributions from time to time
levied upon him. | Liability of unit owners. |
20. (1) Upon the execution of any conveyance of a
unit, the grantee shall be jointly and severally liable with the grantor for
all unpaid contributions due by the latter to the body corporate up to the date
of the conveyance without prejudice to the grantee's right to recover from the
grantor any amounts paid by the grantee therefor. | Joint and several liability of grantor or grantee for
unpaid contributions. |
(2) For the
purposes of this section the body corporate shall be bound on the application
of any unit owner or any person authorised in writing by him to certify- |
(a) the amount
of any contribution which on the date of such certificate is due and payable by
such unit owner; |
(b) the time
within which such contribution is payable; |
(c) the extent
(if any) to which any such contribution has been paid by the unit owner, |
and any such
certificate shall be conclusive in favour of such person. |
21. (1) Any unpaid contribution due from the owner of
any unit together with interest thereon at such rate as may be prescribed by
byelaws, shall constitute a charge upon such unit with effect from the date on
which such contribution became payable and shall rank prior to all other
encumbrances on the unit except any charge under section 25(1) of the Real
Property Tax Act or any Act amending or replacing the same. | Charge on the unit. |
(2) The charge on
a unit in pursuance of subsection (1) of this section shall not become
effective until a notice in writing under the common seal of the body corporate
is lodged for record in the registry stating- |
(a) the name of
the body corporate and the address of the property; |
(b) the volume
and page of the record of the relevant Declaration; |
(c) the name of
the owner of the unit and the unit designation; and |
(d) the amount
due and the date on which it was payable. |
(3)
Such charge shall continue in force until all sums secured thereby with
interest thereon shall have been fully paid or until the expiration of six
years from the date on which the contribution was levied (or the last payment
(if any) on account of such contribution was made) whichever first occurs. Upon
such payment the unit owner shall be entitled on demand to the body corporate
to a certificate under its common seal that the amount due has been paid and on
lodging such certificate for record at the registry and the payment of a fee of
four dollars such charge shall thereupon be satisfied. |
(4) The body
corporate shall have the same powers of sale for the purpose of enforcing the
charge created by subsection (1) of this section as a mortgagee under the
provisions of the Conveyancing and Law of Property Act. |
22. (1) The owners of all units may by unanimous
resolution at a meeting convened by the body corporate for the purpose direct
the body corporate- | Disposal or interest in common property. |
(a) to convey
or lease on their behalf common property or any part thereof; |
(b) to execute
on their behalf a grant of easement or restrictive covenant burdening the
property; and |
(c) to accept
on their behalf a grant of easement or a restrictive covenant benefiting the
property. |
(2) The body
corporate, if it is satisfied that such resolution is duly passed and that all
parties having an interest in the property of which the body corporate has
notice have consented in writing to the release of their interests in respect
of the land in the proposed conveyance, lease or covenant, shall execute the
appropriate conveyance, lease or covenant and the said conveyance, lease or
covenant shall be valid and effective without execution by any person having an
interest in the property or the common property, and the receipt of the body
corporate for any purchase money, rent, premium or any other money payable
shall be a sufficient discharge and shall exonerate all persons taking under
the conveyance, lease or covenant as the case may be from any responsibility
for the application of the moneys expressed to have been so received. |
(3) Any such
conveyance, lease or covenant lodged for record in the Registry shall be
endorsed with or accompanied by a certificate under the seal of the body
corporate that the resolution was duly passed and that the conveyance, lease or
covenant conforms with the terms thereof and that all necessary consents were
given and in favour of purchasers or any other persons dealing with the body
corporate pursuant to this section such certificate shall be conclusive
evidence of the facts stated therein. |
(4) The Registrar-General
shall cause the record of any instrument executed under the provisions of this
section to be noted upon the Declaration relating to the property affected by
the instrument. |
23. (1) Every unit owner, his tenants, the employees
of such owners and tenants and any other person who in any manner uses the
property shall be subject to and shall comply with any byelaws in force
relating to the orderly conduct and proper use of such property. | Compliance with byelaws, covenants, restrictions etc. |
(2) Every unit
owner and any person deriving any interest in the unit or the common property
appertaining thereto from such unit owner shall strictly comply with the
covenants, conditions and restrictions set forth in the relevant Declaration or
byelaws or in any deed of title relating to the unit and all such covenants,
conditions and restrictions shall run with and bind the land. |
(3) Action to
enforce the provisions of this section shall be maintainable by the body
corporate acting on behalf of the unit owners or by an aggrieved unit owner. |
(4) In any action
arising from the breach by any person of the byelaws or any such covenants,
conditions or restrictions the court may, in addition to giving equitable
relief by way of an injunction or otherwise, award damages against such person
or empower the body corporate to take such steps to remedy the breach as the
court thinks just and to recover any expenses so incurred from such person. In
case of flagrant or repeated failure by any person to comply with the
requirements of this section, the court may order such person to give
sufficient security with or without surety or sureties for his future
compliance with the byelaws or the said covenants, conditions or restrictions
as the case may be. |
24. (1) Where the body corporate insures the building
in pursuance of paragraph (c) of section 14(1) the following provisions of this
section shall apply notwithstanding any other law relating to insurance for the
time being in force [i]*. | Insurance. |
(2) The body
corporate shall give written notice of any insurance effected by it on the
building and any change therein or termination thereof to each unit owner and,
on the written request of any unit owner or mortgagee of a unit, shall produce
for inspection by such owner or mortgagee or any person authorised in writing
by such owner or mortgagee the policy or policies of insurance effected by the
body corporate and the receipt or receipts for the last premium or premiums
paid in respect thereof. |
(3) The policy of
insurance taken out by the body corporate in respect of the building as
aforesaid shall not be liable to be brought into contribution with any other
policy of insurance save another policy authorised under the provisions of
paragraph (c) of section 14(1) of this Act in respect of the same building. |
25. [ii]*
(1) Where a building is insured to its replacement value, a unit owner may
effect a policy of insurance in respect of any damage to his unit in a sum
equal to the amount secured, at the date of any loss referred to in such
policy, by any mortgages charged upon his unit. Where any such policy of
insurance is in force- | Power of unit owner to insure. |
(a) payment
shall be made by the insurer under such policy to the mortgagees whose
interests are noted thereon in order of their respective priorities, subject to
the terms and conditions of the policy; |
(b) subject to
the terms and conditions of such policy, the insurer shall be liable to pay
thereunder- |
(i) the
value stated in such policy; or |
(ii) the
amount of the loss; or |
(iii) the
amount sufficient at the date of the loss to discharge any mortgages charged
upon the unit, |
whichever
is the least amount; |
(c) where the
amount so paid by the insurer equals the amount necessary to discharge a
mortgage charged upon the unit, the insurer shall be entitled to an assignment
of that mortgage; |
(d) where the
amount so paid by the insurer is less than the amount necessary to discharge a
mortgage charged upon the unit, the insurer shall be entitled to a submortgage
of such mortgage to secure the amount so paid on terms and conditions agreed
upon as provided in subsection (3) of this section, or, failing agreement, on
the same terms and conditions as those contained in the mortgage made by the
unit owner. |
(2) (a) Where a
building is uninsured, or has been insured to less than its replacement value,
a unit owner may- |
(i) effect a
policy of insurance in respect of any damage to his unit in a sum equal to the
replacement value of his unit less a sum representing the amount to which his
unit is insured under any policy of insurance effected on the building; |
(ii) notwithstanding
any existing policies, effect a policy of insurance in respect of any damage to
his unit in a sum equal to the amount secured, at the date of any loss referred
to in such last-mentioned policy, by any mortgages charged upon his unit and
the provisions of paragraphs (a), (b), (c) and (d) of subsection (1) of this
section shall apply in respect of any payment pursuant to such last-mentioned
policy. |
(b) For the
purposes of this subsection, the amount to which a unit is insured under a
policy of insurance effected in respect of the building shall be determined by
multiplying the value stated in such policy by the unit entitlement of the unit
and dividing the product so obtained by the sum of the unit entitlement of all
units. |
(3) For the
purposes of paragraph (d) of subsection (1) and subparagraph (ii) of paragraph
(a) of subsection (2) of this section, any insurer and any mortgagee or
mortgagees may at any time, whether before or after a policy of insurance has
been effected by a unit owner, agree upon the terms and conditions of the submortgage. |
(4) Nothing in
this section shall limit the right of a unit owner to insure against risks
other than damage to his unit. |
(5) Any policy of
insurance authorised by this section and taken out by a unit owner in respect
of damage to his unit shall not be liable to be brought into contribution with
any other policy of insurance save another policy authorised by this section and
taken out in respect of damage to the same unit. |
(6) This section
shall apply notwithstanding the provisions of any other law relating to
insurance. |
26. (1) It shall be the duty of the body corporate
promptly to repair or reconstruct the building where it has sustained damage
which- | Repair or reconstruction of building. |
(a) renders
less than seventy-five per cent of the accommodation in the building unfit for
occupation; or |
(b) is in
excess of that prescribed by paragraph (a) and within sixty days of the event
causing the damage ninety per cent or more in number of the unit owners have
resolved that the building shall be reconstructed. |
(2) The proceeds
of insurance (if any) shall be used for the purpose of the repair or reconstruction
of the building under this section and any deficiency shall constitute common
expenses within the meaning of this Act. |
(3)
Where in pursuance of subsection (1) of this section it becomes the duty of a
body corporate to repair or reconstruct the building, the body corporate shall,
without undue delay, draw up a scheme for the purpose and if such scheme
(either in its original or amended form) is approved by special resolution, it
shall be binding on the body corporate and all unit owners. Where such a scheme
is not so approved, it shall be the duty of the body corporate to file a scheme
in the Supreme Court which may, after hearing any objections on behalf of
individual unit owners, settle a scheme which, having regard to the rights and
interests of unit owners generally, appears just and equitable for the repair
or reconstruction of a damaged building under this section. Such scheme may
include provisions for- |
(a) permitting
any unit owner whose unit has been damaged and who does not agree to
participate in the scheme to convey his unit and his interest in the common
property to the other unit owners on the payment of such compensation as the
court thinks just; |
(b) the
reinstatement of part only of the building; and |
(c) the conveyance
of the interests of some unit owners to other unit owners in proportion to
their unit entitlement. |
(4) In the
exercise of its powers under subsection (3) the court may make such orders as
it deems necessary or expedient for giving effect to the scheme including
orders- |
(a) directing
how insurance moneys received in respect of damage to the building shall be
applied; |
(b) directing
such consequential amendments of the Declaration and byelaws relating to the
building as the court deems necessary; and |
(c) imposing
such terms and conditions as it thinks fit. |
(5) Where an
application to the court is made under this section, any insurer who has
effected insurance on the building or any part thereof (being insurance against
damage to the building) shall have the right to appear in person or by counsel. |
(6) On any
application under this section the court may make such order for the payment of
costs as it thinks fit. |
27. (1) The body corporate or any judgment creditor of
the body corporate or any person having an interest in any unit may apply to
the Supreme Court for the appointment of an administrator or administrators for
the operation of the property. | Appointment of an administrator. |
(2) The court may
in its discretion on cause shown, appoint an administrator or administrators
for an indefinite or a fixed period on such terms and conditions as to
remuneration or otherwise as the court thinks fit. The remuneration and
expenses of any such administrator shall form part of the common expenses
within the meaning of this Act. |
(3) The
administrator or administrators shall, to the exclusion of the body corporate,
have the powers and duties of the body corporate or such of those powers and
duties as the court shall order and the administrator or administrators may
delegate any of the powers so vested in him or them as the case may be. |
(4) The court may
in its discretion on the application of an administrator or any person referred
to in subsection (1) of this section, remove or replace an administrator. |
(5) On any
application made under this section the court may make such order for the
payment of costs as it thinks fit. |
28. A body corporate shall keep true copies of the
Declaration and byelaws and all amendments thereto and shall make such copies
available for inspection at convenient hours by any unit owner, mortgagee or
other interested party or by any person duly authorised in writing by any of
them. | Copies of Declaration and byelaws to be open for
inspection. |
29. (1) Every body corporate shall nominate a person
to receive the service of summonses, notices or other processes and the name
and place of residence or business (which shall not be located more than twenty
miles from the building for the operation of which the body corporate is
responsible) of such person shall from time to time as occasion may require- | Service of documents on the body corporate. |
(a) be
exhibited on a notice board to be placed in a prominent position on or near the
front of the building; and |
(b) be
lodged for record at the registry upon the payment of a fee of four dollars;
and |
(c) be
published in the Gazette. |
(2) Unless the
body corporate maintains an office in such building, it shall cause to be
provided and fixed at or near the front of the building a receptacle suitable
for the purpose of receiving articles by post and on such receptacle the name
of the body corporate shall be clearly designated. |
(3) Any summons,
notice or other process may be served on the body corporate or the board of
management thereof by post enclosed in a prepaid registered wrapper addressed
to such body corporate or board, as the case may be, at the address of the
person nominated to receive such processes or by placing it in the receptacle
referred to in subsection (2) of this section. |
30. (1) Every unit owner, any mortgagee of a unit or
other person having an interest in any unit shall register with the body
corporate an address for the service of notices upon him and, unless the person
concerned resides permanently in the building, such address shall be one which
is not within the building. | Service of documents by the body corporate. |
(2) Any notice
given under this Act by a body corporate or board of management shall be sent
by post in a prepaid registered wrapper addressed to the person for whom it is
intended at the address registered by him with the body corporate under the
provisions of subsection (1) of this section. |
(3) When any such
notice is sent from The Bahamas to an address in another country it shall be
sent by prepaid registered air mail. |
(4) Any notice
sent by post in the manner prescribed by this section shall be deemed to be
served on the person to whom it is addressed on the seventh day after the day
on which the wrapper containing the same is posted. |
31. (1) A property to which a Declaration refers may
be removed from the provisions of this Act by an order of the Supreme Court
where on the application of any interested party the court is satisfied that- | Removal of property from the Act and proceedings for
partition. |
(a) unit owners
have so resolved by a resolution passed by ninety per centum or more in number
of the unit owners and that all mortgagees of the units have by instrument
under seal either consented thereto or agreed that their several mortgages be transferred
to the percentage of the undivided interest of the several unit owners in the
property as hereinafter provided; or |
(b) the
building has been destroyed or damaged and is not to be reconstructed or
repaired in pursuance of Section 26 of this Act; or |
(c) circumstances
have arisen that, having regard to the rights and interests of the unit owners
as a whole, it is just and equitable to remove the property from the provisions
of this Act. |
(2) For the
purposes of this section an interested party shall be deemed to be the body
corporate, a unit owner or a mortgagee of a unit. |
(3) Upon the
making of an order by the Supreme Court under the provisions of this section,
the property to which the order relates shall be deemed to be owned in common
by all the unit owners and such undivided share in the property shall accrue to
each unit owner in the same proportion as the unit entitlement which such owner
previously had in the common property. |
(4) Where an order
has been made under subsection (1) of this section, a majority in number of the
unit owners in the property may apply to the court either- |
(a) to
apportion so much of the property as remains among the unit owners in
proportion to their former unit entitlement and to direct the body corporate to
effect the necessary transfers of title; or |
(b) to order
that so much of the property as remains shall be sold and that the net proceeds
of any such sale together with the proceeds (if any) of insurance policies
shall constitute one fund to be divided among all the unit owners in proportion
to their respective unit entitlements, |
and the
court may, if it considers it is equitable and just to do so, proceed
accordingly and make such orders and give such directions in respect thereof as
the court thinks fit. |
(5)
Where an order has been made under subsection (1) of this section the court may
appoint a liquidator and give directions for the winding-up of the affairs of
any body corporate which has been constituted under the provisions of this Act
as if it were a company being wound up by the court under the
Companies Act. In any such winding-up no unit owner shall be liable to
contribute to the assets of the body corporate a sum exceeding forty dollars.
By a subsequent order the court may declare the body corporate to be dissolved
as from a date to be specified in the order. |
(6) In any
proceedings under this section the court may make such order for the payment of
costs as it thinks fit. |
32. Where at any time before the 28th day of July,
1969, any first conveyance of a unit was made or executed in contravention of
the provisions of subsection (2) of section 6 of this Act as in force
immediately prior to that date but so that if the Law of Property and
Conveyancing (Condominium) (Amendment) Act, 1969, had been at that time in
force no such contravention would have been made, then every such conveyance as
aforesaid is hereby declared, notwithstanding anything to the contrary in this
Act as so in force, to have been made in conformity with the requirements of
the said subsection, and any person liable to be legally proceeded against, and
any interest liable to be impugned, on the ground that any conveyance so made
or executed was void or of no effect, is hereby freed, acquitted, discharged
and indemnified as well against the Queen's Most Excellent Majesty, Her Heirs
and Successors as against all persons whatsoever from or in respect of such
liability. | Validation of past transactions: indemnity. |
SCHEDULE (Section 15(4)) |
BYELAWS |
1. (1) The
powers and duties of the body corporate shall, subject to any restriction
imposed or direction given at a general meeting, be exercised and performed by
the Board of the body corporate. | Board of the body corporate. |
(2) The Board
shall consist of not less than three nor more than seven unit owners and shall
be elected at each annual general meeting: |
Provided that
where there are not more than three unit owners, the Board shall consist of all
unit owners. |
(3) Except where
the Board consists of all the unit owners, the body corporate may by resolution
at an extraordinary general meeting remove any member of the Board before the
expiration of his term of office and appoint another unit owner in his place to
hold office until the next annual general meeting. |
(4) Any casual
vacancy on the Board may be filled by the remaining members of the Board. |
(5) Except where
there is only one unit owner, a quorum of the Board shall be two, where the
Board consists of four or less members; three, where it consists of five or six
members: and four, where it consists of seven members. |
(6) The Board may
appoint persons who are unit owners (whether or not members of the Board) to
hold such offices and to perform such functions as the Board may from time to
time determine. |
2. (1) At
the commencement of each meeting the Board shall elect a chairman for the meeting,
who shall have a casting as well as an original vote, and if any chairman so
elected shall vacate the chair during the course of a meeting the Board shall
choose in his stead another chairman who shall have the same rights of voting. | Meetings of the Board. |
(2) At meetings of
the Board all matters shall be determined by simple majority vote. |
(3) All acts done
in good faith by the Board shall, notwithstanding it be afterwards discovered
that there was some defect in the appointment or continuance in office of any
member of the Board or some technical irregularity in the Board's proceedings,
be as valid as if such member had been duly appointed or had duly continued in
office or as if the proceedings were regular. |
3. (1) A
general meeting of unit owners shall be held within three months after lodging
the Declaration for record. | General meetings. |
(2) Subsequent
general meetings shall be held once in each year provided that not more than
fifteen months shall elapse between the date of one annual general meeting and
that of the next. |
(3) All general
meetings other than the annual general meeting shall be called extraordinary
general meetings. |
(4) The Board may,
whenever it thinks fit and shall upon a requisition in writing made by unit
owners entitled to twenty-five per centum of the total unit entitlement of the
units, convene an extraordinary general meeting, |
(5) Seven day's
notice of every general meeting specifying the place, the date and the hour of
meeting and in case of special business the general nature of such business
shall be given to all unit owners and registered first mortgagees who have
notified their interests to the body corporate, but accidental omission to give
such notice to any unit owner or to any registered first mortgagee or
non-receipt of such notice by any unit owner or registered first mortgagee
shall not invalidate any proceedings at any such meeting. |
(6) Unless it be
otherwise resolved by special resolution all general meetings of the unit
owners shall be held on the property. |
(7) Any resolution
in writing in one or more parts signed by all unit owners shall be as valid and
effectual as if it had been passed at a meeting of the members duly called and
constituted. |
4. (1) Save
as in these byelaws otherwise provided, no business shall be transacted at any
general meeting unless a quorum of persons entitled to vote is present in
person or by proxy at the time when the meeting proceeds to business. One-half
of the persons entitled to vote present in person or by proxy shall constitute
a quorum. | Proceedings at general meetings. |
(2) If within
one-half hour from the time appointed for a general meeting a quorum is not
present, the meeting shall stand adjourned to the same day in the next week at
the same place and time, and, if at the adjourned meeting a quorum is not
present within one-half hour from the time appointed for the meeting, the
persons entitled to vote in person or by proxy shall be a quorum. |
(3) At the
commencement of a general meeting, a chairman of the meeting shall be elected. |
5. (1) At
any general meeting a resolution by the vote of the meeting shall be decided on
a show of hands unless a poll is demanded by any unit owner present in person
or by proxy. Unless a poll be so demanded a declaration by the chairman that a
resolution has on the show of hands been carried shall be conclusive evidence
of the fact without proof of the number or proportion of votes recorded in
favour of or against such resolution. A demand for a poll may be withdrawn. | Voting at general meeting. |
(2) A poll if demanded
shall be taken in such manner as the chairman thinks fit and the result of the
poll shall be deemed to be the resolution of the meeting at which such poll was
demanded. |
(3) In the case of
equality in the votes whether on a show of hands or on a poll the chairman of
the meeting shall be entitled to a casting vote in addition to his original
vote. |
6. (1) On a
show of hands each unit owner shall have one vote; on a poll the votes of unit
owners shall correspond with the unit entitlement of their respective units. | Votes of unit owners. |
(2) On a show of
hands or on a poll votes may be given either personally or by proxy. |
(3) An instrument
appointing a proxy shall be in writing under the hand of the appointer or his
attorney, and may be either general or for a particular meeting. A proxy need
not be a unit owner. |
(4) Except in
cases where by or under this Act a unanimous resolution is required, no unit
owner shall be entitled to vote at any general meeting unless all contributions
payable in respect of his unit have been duly paid. |
(5) Co-unit owners
may vote by proxy jointly appointed by them, and in the absence of such proxy
shall not be entitled to vote on a show of hands, except when the unanimous
resolution of unit owners is required by this Act; but any co-unit owner may
demand a poll. On any poll each co-unit owner shall be entitled to such part of
the vote applicable to a unit as is proportionate to his interest in the unit.
The joint proxy (if any) on a poll shall have a vote proportionate to the
interests in the unit of such of the co-unit owners as do not vole personally
or by individual proxy. |
7. The body
corporate may- | Further powers of body corporate. |
(a) purchase,
hire or otherwise acquire personal property for use by unit owners in
connection with their enjoyment of common property; |
(b) borrow on a
short term basis any moneys required by it in the performance of its duties or
the exercise of its powers; and |
(c) invest as
it may determine any moneys in the fund for administrative expenses. |
8. A unit
owner shall- | Duties of a unit owner. |
(a) permit the
body corporate and its agents, at all reasonable times on notice (except in
case of emergency when no notice shall be required), to enter his unit for the
purpose of inspecting the same and maintaining, repairing or renewing pipes,
wires, cables and ducts for the time being existing in the unit and capable of
being used in connection with the enjoyment of any other unit or common
property, or for the purpose of maintaining, repairing or renewing common
property, or for the purpose of ensuring that these byelaws are being observed; |
(b) forthwith
carry out all work that may be ordered by any competent public authority in
respect of his unit other than such work as may be for the benefit of the
building generally and pay all rates, taxes, charges, outgoings and assessments
that may be payable in respect of his unit; |
(c) repair and
maintain his unit and keep the same in a slate of good repair, reasonable wear
and tear, damage by fire, hurricane, seawave, force majeur or act of God
excepted; |
(d) use and
enjoy the common property in such a manner as not unreasonably to interfere
with the use and enjoyment thereof by other unit owners or their families,
visitors or employees; |
(e) not use his
unit or permit the same to be used in such manner or for such purpose as shall
cause a nuisance or hazard to any occupier of a unit (whether a unit owner or
not) or the family of such occupier; and |
(f) notify the
body corporate forthwith upon any change of ownership or of any mortgage or
other dealing in connection with his unit. |
9. The body
corporate shall have a common seal which shall at no time be used except by
authority of the Board previously given and in the presence of the members of
the Board or at least two members thereof, who shall sign every instrument to
which the seal is affixed: | Common seal. |
Provided that
where there is only one member of the body corporate his signature shall be
sufficient for the purpose of this clause. |
10. The
byelaws in the Schedule to this Act may be amended by special resolution of the
body corporate, and not otherwise. | Amendment of byelaws. |