CONDOMINIUM MANAGEMENT AUTHORITY LAW

Arrangement of Sections

1. Short title.

2. Condominium Management Authority.

3. Authority to be a body corporate.

4. Application of Law.

5. Objects of the Authority.

6. Powers of Authority.

7. Authority to take over the control of the common amenities and common elements of the Condominium Property.

8. Board of Management.

9. Inquiry into the activities of the management corporation.

9A. Demolition of unauthorised construction.

9B. Complaints by a purchaser as regards the common amenities provided by the registered owner.

9C. Monitoring the progress of the construction of the building shown in the registered provisional condominium plan.

9D. Vesting of land parcel of a defaulting owner.

10. Acquisition of immovable property under the Land Acquisition Act.

10A. State property both movable and immovable to be made available to the Authority.

10B. Acquisition of Condominium Property for condominium development project.

10C. Right of alienation of land, flat, house or other living accommodation.

11. Officers and servants of the Authority deemed to be State officers.

12. The Authority deemed to be a scheduled institution within the meaning of the Bribery Act.

13. Seal of the Authority.

14. Agent of the Authority.

15. Certificate from the General Manager.

15A. Recovery of money due to the Authority.

15B. Recovery of sums liable to be paid to the Authority by a person out of the Remuneration of such person.

15C. Signature of documents by General Manager on behalf of the Authority.

16. Disputes to be referred to the Authority.

17. General Manager of the Authority.

17A. Appointment of officers and servants.

18. Fund of the Authority.

19. Grant to the Authority from the Consolidated Fund.

19A. Borrowing powers of the Authority.

20. Government guarantee.

20A. Protection for action subject to Article 126 of the Constitution.

21. Application of the provisions of the Finance Act, No. 38 of 1971.

22. Financial year.

23. Powers of the Minister in relation to the Authority.

24. Regulations.

25. Offences and penalties.

26. This Law to prevail over other written law.

27. Interpretation.

SCHEDULE

10 of 1973,

46 of 1982,

24 of 2003.

A LAW to provide for the establishment of a public authority known as the Condominium Management Authority for the Control, Management, Maintenance and Administration of the Condominium Property, Semi Condominium Property and Provisional Condominium Property and for the provision of common amenities thereto, and for matters connected therewith or incidental thereto.

[Am by s 2 of Act 24 of 2003.]

[Date of Commencement: 20th March, 1973]

1. Short title.

This Law may be cited as the Condominium Management Authority Law.

[S 1 am by s 3 of Act 24 of 2003.]

2. Condominium Management Authority.

There shall be established a public authority which shall be called the Condominium Management Authority (hereinafter referred to as "the Authority”), and which shall consist of the persons who are for the time being members of the Authority under section 8.

[S 2 am by s 3 of Act 24 of 2003.]

3. Authority to be a body corporate.

The Authority shall by the name assigned to it by section 2 be a body corporate and shall have perpetual succession and a common seal and may sue and be sued in such name.

4. Application of Law.

This Law shall apply to any building or buildings having two or more stories on alienated land, held as one land parcel capable of being subdivided into parcels, and to any building or buildings having only one storey on the same land capable of being subdivided into parcels, (hereinafter referred to as "Condominium Property”), any building proposed to be or in the process of being erected on alienated land, held as one land parcel and which shall be capable of being subdivided into parcels (hereinafter referred to as ”Provisional Condominium Property”) and any partly completed building in which there are more than one completed condominium parcels fit for human habitation shown in the registered Provisional Condominium Plan (hereinafter referred to as "Semi Condominium Property”).

[S 4 subs by s 4 of Act 24 of 2003.]

5. Objects of the Authority.

The objects of the Authority shall be to—

(a) control, manages, maintain and administer the condominium parcels, the common elements and the common amenities of the Condominium Property or Semi Condominium Property;

(b) ensure that the common elements and the Common Amenities of the Condominium Property or Semi Condominium Property are property maintained in good order and that periodic-repairs are being earned out in order to maintain such property in good and serviceable order, and to assist the management corporation or the owner or owners or occupiers to carry out such activities or to be directly involved with such activities in the event of the management corporation or owner or owners or occupiers failing to carry out such activities;

(c) ensure that all buildings comprising such condominium parcels are insured against risk of fire, civil commotion and riot or to insure or keep insured, if so requested by the management corporation or by the owners, and to recover such premium or charges from the management corporation or the owners as the case may be;

(d) remove all such unauthorised constructions erected or carried out by the respective owners or occupiers of such condominium parcels or by any person, contrary to the registered condominium plan of the Condominium Property or the registered semi condominium plan of the semi Condominium Property;

(e) ensure that the management corporation of the Condominium Property or semi Condominium Property are property functioning and to manage and administer the activities of such management corporation;

(f) assist the management corporation or the owner or owners or occupiers of the condominium parcels, of the Condominium Property or semi Condominium Property in providing the services such as water, sewerage, drainage, gas, electricity, garbage disposal, air conditioning, telephone, radio and red fusion services to the owner or owners or occupiers of the condominium parcels of such Condominium Property or semi Condominium Property;

(g) assist the management corporation to establish and maintain for use by owners or occupiers of such condominium parcels, facilities such as roads, access ways, lawns, gardens, parks, playgrounds and other open spaces, of to be directly involved with such activities in the event of the management corporation failing to establish and maintain such facilities;

(h) transfer to the local authority the maintenance of roads, access ways, lawns, gardens, parks, playgrounds and other open spaces for the use by owners or occupiers of the condominium parcels of the Condominium Property or semi Condominium Property;

(i) provide maintenance and repair services to such condominium parcels of the Condominium Property or semi Condominium Property at the request of the Management Corporation or owners or occupiers thereof;

(j) monitor the progress of the construction of the registered provisional Condominium Property in order to ensure that the interests of the stakeholders are protected and to intervene wherever necessary to protect such interests;

(k) formulate and submit condominium redevelopment programmes including capital investment plans to the Minister for approval by the Government;

(l) call upon the National Housing Development Authority or the Urban Development Authority or any local authority or any government agency or any private sector developer, to undertake the implementation of such condominium re-development projects, or to undertake the execution of the condominium redevelopment projects, of such programme as may be approved by the Government;

(m) undertake the completion of any condominium building shown in the registered semi condominium plan or provisional condominium plan, in the event of any owner failing to complete such project;

(n) develop or re-develop land for carrying out of any of the objects of the Authority; and

(o) do all such other acts as may be necessary or conducive to the attainment of any or all of the above objects.

[S 5 subs by s 5 of Act 24 of 2003.]

6. Powers of Authority.

For the proper carrying out of its objects the Authority shall exercise any one or more of the following powers—

(a) acquire by way of acquisition, vesting, grant or purchasing, or to receive by way of gift or otherwise any immovable or movable property and hold, manage, sell, surrender, exchange, lease or otherwise dispose of such property;

(b) receive donations and bequests from any source whether local or foreign;

(c) borrow moneys required by it for the discharge of the functions:

(d) charge rent for any land parcel or buildings or Condominium Property let by the Authority:

(e) levy fees or charges, for any services rendered by the Authority under this Law or any other written Law;

(f) recover any premium from owners in proportion to their interests in the condominium parcels;

(g) recover from any person including an owner, expenses incurred in making good any damage caused by him to the common amenities or common elements of the condominium parcels;

(gg) to undertake construction work on behalf of the State or any local authority;

(h) provide to any condominium parcel, any services including its refurbishment, repair, and maintenance at the request of the Management Corporation or owner or occupier of the condominium parcel and levy charges therefor;

(i) undertake construction work;

(j) enter, either by itself or by its duly-authorised agents, at all reasonable times, any condominium parcel for the purpose of inspecting, repairing, or renewing pipes, wires, cables and ducts which also serve other condominium parcels or the common elements of the condominium parcels or for the purpose of maintaining, renewing, refurbishing, or repairing the condominium parcel or the common amenities or the common elements, of the Condominium Property or for the purpose of removing or demolishing unauthorised constructions of the Condominium Property or semi Condominium Property or for the purpose of ensuring that any relevant statutory requirements are being complied with, or in the exercise of any of the powers, referred to in this section;

(k) enter either by itself or by its duly authorised agents at all reasonable times, any land parcel of the provisional Condominium Property for the purpose of inspecting and reviewing the progress of the construction of the building shown in the registered provisional condominium plan;

(l) Enter into such contracts and to make such arrangements as are reasonably required for the purpose of carrying out any of the objects of the Authority;

(m) resolve disputes between the management corporation and the owner or owners, and occupier, or owner and purchaser, or owner and mortgagee, or mortgagee and prospective purchaser or mortgagor and mortgagee of the condominium parcels of the Condominium Property, or semi Condominium Property, or registered Provisional Condominium Property;

(n) employ such officers and servants as may be necessary to carry out the work of the Authority and exercise disciplinary control over its officers and servants:

(o) make rules for the administration of the affairs of the Authority; and

(p) do all things which in the opinion of the Authority, are necessary to facilitate the carrying out of its objects.

[S 6 subs by s 6 of Act 24 of 2003.]

7. Authority to take over the control of the common amenities and common elements of the Condominium Property.

Notwithstanding anything to the contrary law, the Authority may, on a directive made by the Minister or on a request made by all owner or the owners of all the condominium parcels, or by the management corporation, or by the local authority, or any other public corporation as the case may be, where the Authority is satisfied that the owner or owners or the management corporation, are incapable of property controlling, maintaining, managing and administering the common elements or common amenities of the condominium parcels of the Condominium Property or semi Condominium Property, undertake to control, maintain, manage and administer of the common elements and common amenities, until such time the management corporation is capable of controlling, maintaining, managing and administering such common elements and common amenities of the Condominium Property or semi Condominium Property.

[S 7 subs by s 7 of Act 24 of 2003.]

8. Board of Management.

(1) The management and administration of the affairs of the Authority shall be vested in a Board of Management (hereinafter referred to as "the Board”) which shall consist of—

(a) the following ex-officio members namely—

(i) the General Manager of the National Housing Development Authority established under the National Housing Development Authority Act, No. 17 of 1979;

(ii) the Director-General of the Urban Development Authority established under the Urban Development Authority Law, No. 41 of 1978;

(iii) The Director-General of the Public Utilities Commission of Sri Lanka established by the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002;

(iv) the General Manager of the National Water Supply and Drainage Board established under the National Water Supply and Drainage Board Law, No. 2 of 1974;

(v) the Municipal Commissioners of Municipal Councils of Colombo, Kotte, Dehiwela Mount Lavinia and Moratuwa, respectively;

(vi) the General Manager of the Authority who shall be the Secretary of the Board appointed interims of section 17;

(b) six persons to be appointed by the Minister (hereinafter referred to as the "appointed members”) in the following manner—

(i) the representative of the Secretary to the Ministry of the Minister in charge of the subject of Finance;

(ii) a representative of the Home Mortgage Lenders Association;

(iii) a representative of the Private Sector Developers Association;

(iv) a representative of the management corporation;

(v) a representative of the Ceylon Chamber of Commerce;

(vi) a person having experience in the area of Condominium Property management, who shall be the Chairman.

(2) A person shall be disqualified from being appointed or from continuing as a member of the Board—

(a) if he is or becomes a member of Parliament, a Provincial Council or any local authority;

(b) if he is not or ceases to be a citizen of Sri Lanka.

(3) The appointed members shall subject to the provisions of subsections (5) and (7) hold office for a term of three years, and shall be eligible for reappointment.

(4) The Minister may remove Coin office the Chairman or any member—

(a) if he becomes subject to any disqualifications specified in subsection (2);

(b) if he becomes incapable of performing his duties owing to physical disability or unsoundness of mind; or

(c) if he does any act or thing which, in the opinion of the Minister is likely to bring the Authority to disrepute.

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