Condominium Act 1986

PART I
INTERPRETATION AND APPLI CATION

1 Short title

2 Interpretation

3 Application of this Act

PART II
ESTABLISHMENT OF CONDO MINIUMS

4 Basic requirements for condominiums under this Act

5 Procedure for incorporat ing a condominium under this Act

6 Requirements for condo minium plan

7 Registration of condo minium plan

8 Incorporation of condo minium

9 Legal capacity etc of cor poration

10 Boundaries of condo minium units

11 Statutory easements

PART III
MANAGEMENT AND ADMINIS TRATION

12 Management and control

13 Duties of corporation

14 Powers of corporation

15 Board of management

16 Statutory meeting

17 Annual general meeting

18 Bye-laws

19 Restriction on bye-laws

20 Enforcement of bye-laws

21 Voting rights

22 Voting where owner inca pable

23 Administrative expenses

24 Interest on outstanding accounts

25 Recovery of money

26 Investments

27 Information on request

28 Insurance

29 Copies of insurance poli cies

30 Disposal of common prop erty

31 Exclusive use areas

32 Covenants benefiting con dominium parcel

33 Covenants burdening condominium parcel

34 Rental of residential units

35 Corporation may give owner's tenant notice to quit

36 Enforcement of section 35

37 Court order to tenant to quit

38 By-law authority required for action under section 34, 35 or 37

39 Schemes for repair of damage to condominium building

PART IV
SUPERVISION AND TERMINA TION

40 Appointment of adminis trator

41 Termination of condo minium status

42 Effect of termination of condominium status

43 Disposal of land

44 Dissolution of a corpora tion

PART V
LAND TAXATION

45 Supply of information to land taxation authorities

46 Units, but not common property, subject to land taxation

PART VI
CONTROL OF DEVELOPERS

47 Supply of documents by developer to corporation

48 Sale of residential units by developer

49 Supply of information by developer to purchasers

50 Certain payments to be held in trust

51 Limit on security deposit

52 Management agreements

PART VII
MISCELLANEOUS

54 Registration under this Act

55 Corporation's register of owners

56 Right of entry

57 Service on a corporation

58 Service by a corporation

59 Change of registered ad dress

60 Fees for documents

61 Offences

62 Punishment of offences

63 Regulations

64 Application of Develop ment and Planning Act 1974

65 Investigation of affairs of a corporation

66 Application of this Act to existing condominiums

67 Commencement [omitted]

SCHEDULE

STANDARD CORPORATION BY-LAWS

[17 July 1986]

[preamble and words of enactment omitted]

PART I

INTERPRETATION AND APPLICATION

Short title

1 This Act may be cited as the Condominium Act 1986.

Interpretation

2 (1) In this Act unless the context otherwise requires�

"board" means the board of management of a corporation as pro vided for in section 15;

"building" means one or more buildings on the same condo minium parcel;

"bye-law" means one of the bye-laws of a corporation as amended from time to time, and includes a bye-law passed in substitution for a former bye-law;

"common property" means so much of a condominium parcel as is not comprised in a unit;

"condominium" has the meaning assigned to it in subsection (2);

"condominium parcel" means the land comprised in a condo minium plan;

"condominium plan" means a plan that complies with section 6;

"contribution" means a contribution levied pursuant to section 23(1)(c);

"corporation" means a condominium incorporated pursuant to section 8;

"counsel" means a barrister and attorney;

"court" means �

(a) in section 20, the relevant court;

(b) in sections 22, 36, 37 and 38, a magistrate's court;

"developer" means a person who is proposing to present, or has presented, a condominium plan to the Registrar for registra tion, as the context may require;

"functions" includes powers and duties;

"land" includes �

(a) land covered with water;

(b) all things growing on land;

(d) interests in land;

"land taxation" means the imposition and collection under the authority of an Act of taxes, rates or charges in respect of the ownership or occupation of land;

"land taxation Act" means an Act providing for land taxation;

"land taxation authority", in relation to any land in a condo minium parcel, means the person or body having land taxa tion powers in relation to that land;

"lease" includes tenancy;

"manage" includes maintain, and grammatical variations shall be construed accordingly;

"management agreement" means an agreement entered into by a corporation governing the general management, administra tion and control of �

(a) the real and personal property of the corporation that is associated with the residential units; and

(b) the common property so associated;

"the Minister" means the Minister responsible for Housing;

"own" means own in fee simple;

"owner" means owner of a unit;

"prescribed" means prescribed by regulation;

"purchase agreement" means an agreement between a developer and another person by which the latter purchases from the developer a residential unit or a proposed residential unit, or acquires from him a right to purchase such a unit;

"recreational agreement" means an agreement entered into by a corporation that �

(a) allows persons other than the owners to use recreational facilities that are located on the common property; or

(b) allows the owners to use recreational facilities that are not located on the common property;

"register" means to record in an official register in accordance with section 54 and the regulations, and "registration" has a corresponding meaning;

"Registrar" means the Chief Surveyor of the Department of Works and Engineering or such other public officer as the Governor may by notice published in the Gazette designate to be the Registrar;

"regulation" means a regulation made under section 63;

"residential" means used or intended to be used for residential purposes;

"special resolution", in relation to a corporation, means a resolu tion�

(a) passed at a duly convened meeting of the corporation by a majority of not less than 75% of all the persons enti tled to exercise the powers of voting conferred by this Act or the bye-laws; or

(b) signed by not less than 75% of all the persons who, at a duly convened meeting of the corporation, would be en titled to exercise the powers of voting conferred by this Act or the bylaws;

"title", in relation to a thing, means the right of a person, or, as the case may be, the rights of all persons, to that thing;

"transfer" includes convey, and the noun "transfer" includes con veyance;

"unit" means a space that is situated within a building and that is described in a condominium plan;

"unit factor", in relation to a unit forming part of a condominium, is the mathematical expression, called for by section 6(g), that denotes the proportionate interest of the owner of that unit in the condominium.

(2) For the purposes of this Act "condominium" means a scheme for the sharing of land whereby the land is divided into individ ual parts and common parts so that �

(a) the individual parts are capable of being enjoyed sepa rately; and

(b) persons having rights in individual parts can enjoy the common parts in common with other persons having rights in other individual parts.

Application of this Act

3 Subject to section 66, this Act applies to condominiums in re spect of which the requirements of section 4 are satisfied, but not to condominiums of any other kind.

PART II

ESTABLISHMENT OF CONDOMINIUMS

Basic requirements for condominiums under this Act

4 (1) Only a person who owns land may organize it as a condo minium under this Act.

(2) A condominium cannot be incorporated under this Act un less the Registrar is satisfied that 51 per cent or more of the net internal floor area of the building is calculated to provide for people residential accommodation which they own.

(3) In subsection (2), "net internal floor area" means the floor area of all the enclosed parts of the building, leaving out of account common property other than that which is used exclusively for purposes ancillary to residential accommodation.

Procedure for incorporating a condominium under this Act

5 (1) Land may be organized as a condominium under this Act if a condominium plan relating to the land is registered.

(2) A person desiring to organize land as a condominium under this Act shall make application for the incorporation of the condominium by presenting a condominium plan to the Registrar for registration.

Requirements for condominium plan

6 Subject to section 6A, every plan presented to the Registrar for registration as a con dominium plan shall �

(a) have a heading describing the plan as a condominium plan;

(b) delineate the external surface boundaries of the condo minium parcel and the location of the building in rela tion to them;

(c) show all particulars necessary to enable the title to the land that is to form the condominium parcel to be iden tified;

(d) include a drawing illustrating the units and distin guishing them by numbers or other symbols;

(e) define the boundaries of each unit;

(f) show the floor area of each unit;

(g) have a schedule showing the basis on which unit factors are established for the units and specifying the unit factor for each unit;

(h) show the address which will be the registered address of the condominium corporation when constituted;

(i) contain any other prescribed features;

(j) be accompanied by a certificate from the Director of Planning that planning permission has been granted as required by section 64(1);

(k) be accompanied by the prescribed professional certifi cates; and

(l) be signed by the developer.

[section 6 amended by 1998 : 40 effective 21 July 1998]

Condominium plans submitted for registration by Bermuda Housing Corporation

6A (1) Notwithstanding section 6 or any other provision of this Act, in the case of a scheduled plan submitted to the Registrar by the Bermuda Housing Corporation for registration as a condominium plan, the plan shall, in addition to the matters specified in section 6, delineate the boundaries of the land to be disposed of with each unit and for the purposes of this section "unit" shall be deemed to include such land.

(2) In this section�

(a) "the Bermuda Housing Corporation" means the Corporation continued under section 4 of the Bermuda Housing Act 1980 [title 29 item 1]; and

(b) "scheduled plan" means a plan showing land specified in Schedule II to this Act or any part thereof.

[section 6A inserted by 1998 : 40 effective 21 July 1998]

Registration of condominium plan

7 The Registrar may require that a condominium plan presented to him pursuant to section 5(2) be amended so as to comply with the re quirements of this Act and the regulations; and, where the Registrar is satisfied that those requirements have been complied with in relation to such a plan, he shall retain and register the condominium plan (duly amended in any case where amendment was in his opinion required).

Incorporation of condominium

8 (1) Upon the registration of a condominium plan under section 7, the following have effect �

(a) there is established a condominium corporation (in this Act referred to as "a corporation" or "the corporation", as the case may require), in respect of the condominium;

(b) the common property of the condominium parcel vests in the corporation;

(c) each unit of the condominium becomes real property vested in the developer and, subject to anything to the contrary in this Act or in the condominium plan or the bye-laws, may be owned, used and enjoyed, and be transferred, mortgaged, leased and otherwise disposed of or dealt with, and be acquired, in all respects as real property.

(2) The establishment of a corporation in relation to a condo-

Boundaries of condominium units

10 (1) Unless a condominium plan provides otherwise, where �

(a) a boundary of a unit is described by reference to a floor, wall or ceiling; or

(b) a wall located within a unit is a load-bearing wall

the only portion of that floor, wall or ceiling, as the case may be, that forms part of the unit is the finishing material that is in the interior of that unit, including any lath and plaster, panelling, gypsum board, flooring material or covering or any other material that is attached, laid, glued or applied to the floor, wall or ceiling, as the case may be.

(2) Notwithstanding subsection (1), all doors and windows of a unit are part of the unit unless the condominium plan provides other wise.

Statutory easements

11 (1) Upon the incorporation of a condominium, there are implied in respect of each unit shown on the condominium plan�

(a) the following easements, being easements benefiting the unit�

(i) an easement for the subjacent and lateral sup port of the unit by the common property and by every other unit capable of affording the unit such support;

(ii) an easement for the shelter of the unit by the common property and by every other unit capa ble of affording the unit shelter;

(iii) easements for the passage or provision of water, (whether for drinking, draining or any other purpose), sewage, gas, electricity, garbage, artifi cially heated or cooled air and other services, in cluding telephone, radio and television services, through or by means of pipes, wires, cables or ducts for the time being existing, to the extent to which those pipes, wires, cables or ducts are ca pable of being used in connection with the en joyment of the unit;

(b) the following easements, being easements burdening the unit �

(i) an easement for the subjacent and lateral sup port of the common property and every other unit capable of enjoying such support from the unit;

(ii) an easement to provide shelter to the common property and to every other unit capable of en joying shelter from the unit;

(iii) easements for the passage or provision of water (whether for drinking, draining or any other purpose), sewage, gas, electricity, garbage, artifi cially heated or cooled air and other services, in cluding telephone, radio and television services, through or by means of pipes, wires, cables or ducts for the time being existing within the unit to the common property and every other unit capable of enjoying those easements.

(2) Where an easement is implied by subsection (1), the provider of any utility service that serves the condominium parcel or a unit on that parcel is entitled to the benefit of the easement to the extent that use by him of the easement is appropriate to the provision by him of that service, but not to the exclusion of the provider of any other utility service.

(3) For the purposes of subsection (1), there are implied in favour of, and against, units and common property, as the case may be�

(a) all ancillary rights (including the right on behalf of a dominant tenement to enter upon a servient tenement and replace, renew or restore anything on the servient tenement from which the dominant tenement is entitled to benefit); and

(b) all ancillary obligations,

that are reasonably necessary to be enjoyed or suffered if an easement implied by subsection (1) is to be fully operative.

PART III

MANAGEMENT AND ADMINISTRATION

Management and control

12 A corporation is responsible for the management, administration and control of its common property.

Duties of corporation

13 A corporation shall �

(a) keep its common property clean and in a state of good and serviceable repair;

(b) carry out such work as may be ordered or required in respect of the common property by any public officer or public body in the exercise of statutory powers;

(c) do all things reasonably necessary for the enforcement of the obligations, if any, contained in the bye-laws for the management, administration and control of the building.

Powers of corporation

14 A corporation may, in its discretion but subject to any restriction imposed or direction given by a bye-law or at a general meeting of the corporation�

(a) engage and remunerate staff for any purpose relating to the functions of the corporation;

(b) retain and remunerate accountants for the purpose of preparing or auditing the corporation's accounts;

(c) retain as manager, and remunerate, a professional trade or business firm or person to carry out on behalf of the corporation any of the functions of the corporation;

(d) insure and keep insured the building or any part of the building to its reinstatement value against fire and other risks;

(e) establish and maintain lawns, gardens and playgrounds on the common property;

(f) act on behalf of the owners in respect of any other mat ter in which the owners have a joint interest or liability;

(g) acquire personal property to be used �

(i) for the maintenance, repair or replacement of the real or personal property of the corporation or the common property; or

(ii) by owners in connection with their enjoyment of the real and personal property of the corporation or the common property;

(h) borrow money required by the corporation in the per formance of its functions;

(i) secure the repayment of money borrowed by it and of interest on that money by negotiable instrument, by a mortgage of unpaid contributions (whether levied or not), or by a mortgage of any property owned by the condo minium, or by any combination of those means;

(j) grant a lease to an owner under section 31; and

(k) make an agreement with an owner or tenant of a unit for the provision of amenities or services by the corporation to the unit or to the owner or tenant.

Board of management

15 (1) A corporation shall have a board of management, which shall be constituted in accordance with the requirements of the bye-laws.

(2) The functions of a corporation shall, subject to any restric tion imposed or direction given at a general meeting of the corporation, be performed by the board.

(3) All acts done in good faith by a board are, notwithstanding that is afterwards discovered that there was some defect in the election or appointment or continuance in office of any member of the board, as valid as if he had been properly elected or appointed or had properly continued in office.

Statutory meeting

16 Where a condominium has been incorporated, there shall �

(a) within 90 days from the day that 50% of the residential

units are sold; or

(b) within 180 days from the day the first residential unit is sold,

whichever is sooner, be held a meeting of the corporation (to be called "the statutory meeting"), at which a board shall be elected.

Annual general meeting

17 (1) The board shall in each year convene a general meeting of the owners as the annual general meeting of the corporation in addition to any other general meetings of the corporation in that year, and shall refer to the meeting as such in the notices calling it.

(2) Not more than fifteen months shall elapse between the date of one annual general meeting of a corporation and the date of the next.

Bye-laws

18 (1) Every corporation shall have bye-laws regulating the corpo ration, and providing for the management, administration and control of the real and personal property of the corporation and of the units and the common property.

(2) The bye-laws bind the corporation and the owners to the same extent as if the bye-laws had been signed and sealed by the corpo ration and by each owner, and contained covenants on the part of each owner with every other owner and the corporation to observe and per form all the provisions of the bye-laws.

(3) Upon the incorporation of a condominium, the bye-laws of the corporation are those set forth in Schedule I.

(4) A bye-law may be amended, repealed or replaced by a spe cial resolution.

(5) Amendment, appeal or replacement of a bye-law does not take effect until it is registered.

[section 18 amended by 1998 : 40 effective 21 July 1998]

Restriction on bye-laws

19 A bye-law is not competent to prohibit or restrict the devolution of a unit or any transfer, lease, mortgage or other dealing in or with a unit, or to modify or destroy any easement created or implied by this Act.

Enforcement of bye-laws

20 (1) If an owner, tenant or other person living in a residential unit contravenes a bye-law, the corporation may recover from the owner or the tenant or both a penalty of not more than $2000 in respect of that contravention as if it were a civil debt.

(2) In an action under this section for a penalty it is for the corporation to prove that �

(a) the bye-law is valid and the bye-laws make valid provi sion for the penalty; and

(b) the bye-law has been contravened by the person alleged by the corporation to have contravened it.

(3) The court upon the conclusion of the hearing of an action under this section may either �

(a) give judgment against the defendant in the amount sued for, or any such lesser amount as appears to the court proper in the circumstances; or

(b) dismiss the action,

and make such award as to costs as appears to the court proper in the circumstances.

(4) A corporation may not bring an action under this section unless it is authorized by its bye-laws to do so.

(5) For the purposes of an action under this section, a copy of a bylaw that is certified by the Registrar as being a true copy of the bye-law as registered is prima facie proof �

(a) of the contents of the bye-law; and

(b) that the bye-law was properly made.

(6) The bringing of an action against a person under this sec tion does not restrict, limit or derogate from any other remedy that an owner or a corporation may have against that person.

Voting rights

21 (1) When a matter is to be decided by voting, one vote is avail able in right of each unit.

(2) The right to vote in right of a unit is exercisable by the owner unless the unit is mortgaged and a mortgagee is qualified under, and in fact exercises the vote in right of the unit that is conferred by, subsections (3), (4) and (5).

(3) If the holder of a mortgage registered against a unit, being the mortgage ranking first in priority of any mortgage so registered, ("a first mortgagee") gives notice in writing to the corporation that he wishes

to be given notice of all general meetings of the corporation, the corpora tion shall give him the same notice of every such meeting as it is required to give the owner.

(4) If, in relation to a general meeting of a corporation, a first mortgagee�

(a) not fewer than two days before the meeting gives notice in writing to the corporation of his intent to attend the meeting and vote in right of the unit against which his mortgage is registered; and

(b) actually attends the meeting,

then he, and not the owner, may exercise the vote in right of that unit at that meeting.

(5) Where by virtue of a bye-law a resolution of a general meeting may obtained by owners rendering their vote in writing without assembling in a meeting, the rendering of a vote in writing by a first mortgagee pursuant to the bye-law shall count for the purposes of sub section (4) as actual attendance by him at the meeting.

Voting where owner incapable

22 (1) Voting powers conferred by this Act or the bye-laws on an owner may, if he is for any reason unable to exercise control over his property, be exercised by the person who for the time being is authorized by law to exercise that control.

(2) If the court, on application by the corporation or by an owner, is satisfied that there is no person capable, willing or reasonably available to exercise the voting powers in respect of a unit, the court shall appoint such person as the court thinks fit to exercise those voting powers.

(3) On making an appointment under subsection (2), the court may make any order it considers necessary or expedient to give effect to the appointment.

Administrative expenses

23 (1) In addition to its other powers under this Act, the powers of a corporation include the following �

(a) to establish a fund sufficient, in the opinion of the board, to finance administrative expenses, that is to say, expenses incurred for the management, administration and control of the common property, the payment of any premiums of insurance and the discharge of any other obligation of the corporation;

(b) to determine from time to time the amounts to be raised for the purposes mentioned in paragraph (a);

(c) to raise amounts so determined by levying contributions on the owners corresponding to the unit factors for their units;

(d) to recover from an owner as a civil debt any sum of money spent by the corporation pursuant to any enact ment or bye-law in respect of the unit, or in respect of common property that is leased to that owner under section 31.

(2) A contribution levied pursuant to subsection (1)(c) is due and payable on the passing of a resolution to that effect and in accord with the terms of the resolution, and may be recovered as a civil debt by the corporation �

(a) from the person who was the owner at the time when the resolution was passed; and

(b) from the person who was the owner at the time when the action was instituted,

jointly or severally.

(3) A corporation shall, on the application of an owner or a per son authorized in writing by him, certify �

(a) the amount determined as the contribution of the owner pursuant to subsection (1)(c);

(b) the manner in which any such contribution is payable;

(d) the interest, if any, owing on any unpaid balance of any such contribution,

and, in favour of a person dealing with an owner, such a certificate is conclusive proof of any matter properly so certified.

Interest on outstanding accounts

24 The corporation may, if its bye-laws so permit, charge interest on any unpaid balance of a contribution owed to it by an owner under
sec tion 23.

Recovery of money

25 If any interest referred to in section 24, or a deposit referred to in section 34(4), is owing from an owner to a corporation, the corporation may, in addition to any other rights of recovery that it has in law, recover the amount of the interest or deposit in the same manner as it may re cover a contribution under section 23, and for that purpose the amount shall be considered as a contribution under section 23.

Investments

26 A corporation may invest any funds not immediately required by it in investments in which a trustee is permitted by the Trustee Act 1975 [title 26 item 51] to invest trust moneys.

Information on request

27 A corporation shall, within 20 days of receiving from an owner or an intending purchaser or an intending or a registered mortgagee of a unit a written request in that behalf, provide to him such of the following as are mentioned in that request �

(a) a statement setting forth the amount of any contribu tions due and payable in respect of a unit;

(b) the particulars of �

(i) any action commenced against the corporation and served on it;

(ii) any unsatisfied judgment or order for which the corporation is liable; and

(iii) any written demand made on the corporation for an amount in excess of $5000 that, if not met, may result in an action being brought against the corporation;

(d) a copy of the financial statements, if any, relating to the latest financial year of the corporation for which such statements have been prepared;

(e) a copy of the bye-laws of the corporation;

(f) a copy of any minutes of a general meeting of the corpo ration.

Insurance

28 (1) A corporation �

(a) shall place and maintain adequate insurance on the units, other than improvements made to the units by the owners, and the common property against loss resulting from destruction or damage caused by fire, windstorm and any other peril against which the bye-laws require the corporation to maintain such insurance;

(b) shall, if its bye-laws so require, place and maintain in surance on the improvements made to the units by the owners against loss resulting from destruction or dam age caused by fire, windstorm and any other peril against which the bye-laws require the corporation to maintain such insurance; and

(c) may place and maintain insurance on the units and the common property or either of them against perils other than perils against which this Act or the bye-laws re quire the corporation to maintain insurance, and for that purpose the corporation has an insurable interest in the units and the common property.

(2) Any payment by an insurer under a policy of insurance for the destruction of or damage to a unit or the common property shall, notwithstanding the terms of the policy �

(a) be paid to the insurance trustee designated in the bye-laws or, if the bye-laws do not designate an insurance trustee, to the corporation; and

(b) be used forthwith, subject to sections 39, 41 and 42, for the repair or replacement of the insured property that was destroyed or damaged.

Copies of insurance policies

29 A corporation shall, within 20 days of receiving from an owner or an intending purchaser or an intending or a registered mortgagee of a unit a written request in that behalf, provide to him copies of the policies of insurance placed by the corporation.

Disposal of common property

30 A corporation may be authorized by a special resolution to transfer or lease the common property, or part of it.

Exclusive use areas

31 Notwithstanding section 30, a corporation may, if its bye-laws so permit, by a lease grant to one or more owners exclusive possession of an area or areas of the common property.

Covenants benefiting condominium parcel

32 The board of a corporation has power to acquire on behalf of the owners an easement or a restrictive covenant benefiting the condo minium parcel.

Covenants burdening condominium parcel

33 A corporation may be authorized by a special resolution to grant on behalf of the owners an easement or a restrictive covenant burdening the condominium parcel.

Rental of residential units

34 (1) An owner of a residential unit shall not rent out his unit until he has given notice in writing to the corporation of his intention to do so.

(2) A notice given pursuant to subsection (1) shall set forth the address at which the owner may be served with a notice under section 35 or with process under section 36(2) or under section 37(2).

(3) If an owner of a residential unit rents out his unit, it is a condition of the tenancy, notwithstanding anything in the tenancy agreement, that any person living in the unit shall not�

(a) cause damage to the real or personal property of the corporation or the common property; or

(b) contravene the bye-laws.

(4) The corporation may require any owner who rents out his residential unit to pay to and maintain with the corporation a deposit that the corporation may use for�

(a) the repair or replacement of any real or personal prop erty of the corporation or of any common property; and

(b) the maintenance, repair or replacement of any common property that is subject to a lease granted to the owner of the unit under section 31,

that is damaged, destroyed, lost or removed, as the case may be, by a person living in the unit.

(5) A deposit referred to in subsection (4) shall not exceed one twelfth of the value established as the annual rental value of the unit under the Land Valuation and Tax Act 1967 [title 14 item 31].

(6) Within 20 days of the commencement of any tenancy of a residential unit, the owner of the unit shall inform the corporation by notice in writing of the tenant's name.

(7) Within 20 days of the ending of any tenancy of a residential unit, the owner of the unit shall inform the corporation by notice in writing of that fact.

(8) Within 20 days of receiving a notice under subsection (7), a corporation shall, as the case may require, either�

(a) return to an owner the whole of any deposit that he made with the corporation in compliance with a re quirement of the corporation under subsection (4); or

(b) if the corporation has used the deposit for one or more of the purposes specified in subsection (4), deliver to the owner�

(i) a statement accounting for the amount used; and

(ii) the unused balance, if any, of the deposit; or

(c) if the corporation is entitled to make use of the deposit for one or more of those purposes but is unable to de termine the amount of it that it will need, deliver to the owner an estimate of that amount and, within 60 days of so delivering that estimate, deliver to him�

(i) a final statement accounting for the amount used; and

(ii) the unused balance, if any, of the deposit.

Corporation may give owner's tenant notice to quit

35 (1) A corporation may give a tenant renting a residential unit notice under this section to quit the unit if a person living in the unit

(a) causes damage, other than normal wear and tear, to the

real or personal property of the corporation or to the common property; or

(b) contravenes a bye-law.

(2) Where a corporation gives a tenant notice under this sec tion�

(a) the tenant shall give up possession of the unit; and

(b) notwithstanding anything to the contrary in the Rent In creases (Domestic Premises) Control Act 1978 [title 29 item 3] or in the tenancy agreement between the tenant and his landlord, the tenancy agreement terminates,

on the last day of the month immediately following the month in which the notice is served on the tenant.

(3) A notice given under this section shall be served on the ten ant and the landlord.

Enforcement of section 35

36 (1) If a tenant to whom notice to quit a unit has been given un der section 35 does not give up possession of the unit, the corporation may apply to the court under this section for an order under subsection (4).

(2) Notice of an application to the court under this section must be served on the tenant and the landlord not fewer than three days, excluding any Saturday or public holiday, before the day appointed by the court for the hearing of the application.

(3) An application to the court under this section shall be sup ported by an affidavit sworn on behalf of the corporation �

(a) establishing service of the notice to quit under section 35;

(b) stating the reasons for the giving of the notice;

(d) stating any other relevant facts.

(4) On hearing an application under this section, the court, if satisfied as to the facts presented by the corporation, may by order �

(a) require the tenant to give up possession of the unit;

(b) fix a day on which he shall do so; and

(5) Where an order made under subsection (4) fixes a day for a tenant to give up possession of a unit, his tenancy terminates on that day notwithstanding anything to the contrary in the Rent Increases (Domestic Premises) Control Act 1978 [title 29 item 3] or in his tenancy agreement with the landlord.

Court order to tenant to quit

37 (1) If a corporation considers that a person living in a residen tial unit that is being rented �

(a) is a danger to, or is intimidating, persons in occupation of other units on the condominium parcel; or

(b) has caused or is causing damage, other than normal wear and tear, to the real or personal property of the corporation, or to the common property,

the corporation may, whether or not the tenant of the unit has been given notice by the corporation under section 35, or by the landlord un der the tenancy agreement, to quit the unit, apply to the court under this section for an order under subsection (4).

(2) Notice of an application by the corporation to the court un der this section must be served on the tenant and the landlord not fewer than three days, excluding any Saturday or public holiday, before the day appointed by the court for the hearing of the application.

(3) An application under this section shall be supported by an affidavit sworn on behalf of the corporation �

(a) setting forth particulars of the danger to, or intimidation of, persons, or the damage to property, alleged; and

(b) stating any other relevant facts.

(4) On hearing an application under this section, the court, if satisfied that danger to, or intimidation of, persons or damage to prop erty, being danger, intimidation or damage of a kind mentioned in sub section (1), has occurred and that there are grounds for believing that further such danger, intimidation or damage may occur if the tenant is permitted to remain in possession of the unit, may by order �

(a) require the tenant to give up possession of the unit;

(b) fix the day on which he shall do so; and

(5) Where an order made under subsection (4) fixes a day for a tenant to give up possession of a unit, his tenancy terminates on that day notwithstanding anything to the contrary in his tenancy agreement with the landlord.

By-law authority required for action under section 34, 35 or 37

38 (1) A corporation shall not �

(a) impose or collect deposits under section 34; or

(b) give notices to quit under section 35; or

unless the corporation's bye-laws so permit.

(2) For the purposes of subsection (1), permission granted by bylaws may be either general or specific.

Schemes for repair of damage to condominium building

39 (1) Where a building has been damaged but the condominium status of the condominium parcel to which the building belongs is not to be terminated, an interested party may apply to the court under this section for the court to approve a scheme.

(2) In this section �

"interested party" means the corporation or an owner or a regis tered mortgagee;

"scheme" means a plan prepared by an interested party for the repair of damage to a building, and for the distribution of the cost of the repair among persons affected.

(3) On an application to the court under this section the court may by order approve a scheme, which may include provisions �

(a) for the reinstatement of the building in whole or in part;

(b) for the transfer of interests of owners of units that have been damaged or destroyed to other owners, taking unit factors into account.

(4) In the exercise of its powers under subsection (3), the court may include in a scheme such provisions as it considers necessary or expedient for giving effect to the purposes of the scheme, including pro visions�

(a) directing the application of insurance moneys paid or payable to the corporation;

(b) directing the payment of money by the corporation or the owners or one or more of them;

(d) imposing terms and conditions on persons affected by the scheme.

(5) An insurer who has effected insurance against damage to or destruction of the whole or part of a building which will be affected by a scheme has the right to appear in person or by counsel on an application to the court under this section.

PART IV

SUPERVISION AND TERMINATION

Appointment of administrator

40 (1) An interested party may apply to the court under this sec tion for the court to appoint an administrator to exercise functions of the corporation in accordance with subsection (5).

(2) In this section "interested party" means the corporation or an owner or a registered mortgagee or the Minister.

(3) On an application to the court under this section the court may appoint an administrator for an indefinite period or for a fixed pe riod on such terms and conditions as to remuneration or otherwise as the court thinks fit.

(4) The remuneration and expenses of an administrator ap pointed under this section are administrative expenses within section 23.

(5) An administrator has, to the exclusion of the board and the corporation, those functions of the corporation that the court vests in him.

(6) An administrator may delegate any of the functions so vested in him.

(7) The court may, on the application of an interested party or the administrator, remove or replace the administrator.

Termination of condominium status

41 (1) An interested party may apply to the court under this sec tion for the court to terminate the condominium status of a condo minium parcel.

(2) In this section "interested party" means the corporation or an owner or a registered mortgagee or the Minister.

(3) On an application to the court under this section, the court, if it is satisfied that, having regard to the rights and interests of �

(a) the owners as a whole; and

(b) any other person appearing to the court to have an in terest in the condominium parcel or any part of it ("an affected person"),

it is just and equitable that the condominium status of the condominium parcel should be terminated, may make a declaration to that effect.

(4) In a declaration that it makes under subsection (3) the court may include such conditions and give such directions, including directions for the payment of money, as the court thinks fit for the pur pose of adjusting the effect of the declaration �

(a) as between the corporation and the owners; or

(b) as amongst the owners; or

(5) In addition to any interested party, the following have the right to appear in person or by counsel on an application to the court under this section�

(a) an affected person;

(b) an insurer who has effected insurance against damage or destruction of the whole or part of a building on the condominium parcel.

Effect of termination of condominium status

42 (1) On the condominium status of a condominium parcel being terminated, the corporation shall forthwith give the Registrar notice in writing in the prescribed form of the termination.

(2) On receipt of a notice given under subsection (1), the Reg istrar shall make a memorandum in the prescribed form on the condo minium plan in respect of the notice, and the owners of the units in the condominium parcel are thereupon entitled to the condominium parcel as tenants in common in shares corresponding to the unit factors for their units, but subject to the effect of any declaration made by the court under section 41(3).

Disposal of land

43 (1) Where the condominium status of a condominium parcel has been terminated and it is desired that the corporation should have power to dispose of land that formed part of the condominium parcel immediately before the termination of its condominium status, the court, if it is satisfied that every person having an interest in that land has con sented in writing to the release of that interest, may by order authorize and empower the corporation to make the appropriate transfer of that land.

(2) A transfer executed in accordance with subsection (1) is valid and effective without execution by any person having such an in terest in the land as is mentioned in that subsection; and the receipt of the corporation for the consideration given for the transfer is a sufficient discharge of, and exonerates, all persons taking under the transfer from any responsibility for the application of the consideration expressed to have been so received.

Dissolution of a corporation

44 (1) An interested party may apply to the court under this sec tion for the court to order the winding-up and dissolution of a corpora tion in relation to the condominium status of whose condominium parcel a declaration has been made under section 41.

(2) In subsection (1) "interested party" means the corporation or a member of the corporation or the Minister or a person appointed as administrator under section 40 to exercise functions of the corporation.

(3) On an application to the court under this section concern ing a condominium, the court may, if it thinks fit, by order appoint a liq uidator of the corporation, and give directions for the winding-up by him of the corporation's affairs.

(4) The law and practice governing the winding-up by the court, and the dissolution, of a local company under the Companies Act 1981 [title 17 item 5] apply in relation to the winding-up of the affairs and the dissolution of a corporation under subsection (3) mutatis mutandis as they apply in relation to such a company; and for the
purposes of the application of that law and practice to a corporation �

(a) a reference to a director of a company shall be deemed to be a reference to a member of the corporation's board; and

(b) a reference to a member of a company shall be deemed to be a reference to an owner.

PART V

LAND TAXATION

Supply of information to land taxation authorities

45 (1) Not later than 28 days after the incorporation of a condo minium, the corporation shall furnish to the land taxation authority 2 copies of the condominium plan, certified in the prescribed manner.

(2) For purposes of land taxation, in relation to a condominium parcel or part of one �

(a) the particulars shown on a certified copy of a condo minium plan furnished pursuant to subsection (1) are conclusive proof of those particulars; and

(b) the production by a land taxation authority of what pur ports to be a certified copy of a condominium plan fur nished pursuant to subsection (1) is prima facie proof that it is the certified copy so furnished.

(3) Where a corporation leases land to an owner under section 31, it shall within 28 days of the execution of the lease furnish to the land taxation authority the prescribed particulars of the lease.

Units, but not common property, subject to land taxation

46 Notwithstanding section 8(1)(b), for land taxation purposes�

(a) common property is not a separate parcel of land;

(b) a corporation's ownership of common property shall be disregarded; and

(c) each unit shall be treated on the basis that the unit, and the interest in common property belonging to the unit, together constitute a single parcel of land.

PART VI

CONTROL OF DEVELOPERS

Supply of documents by developer to corporation

47 (1) Where a condominium has been incorporated on the appli cation of a developer, he shall, within one year (or such longer period as the Registrar may in any particular case in writing allow) after the date of the incorporation, provide to the corporation the original or a copy of the following documents, in so far as they relate to the condominium par cel�

(a) all warranties and guarantees on the real and personal property of the corporation and the common property and the units;

(b) the�

(i) structural, electrical, mechanical and architec tural working drawings and specifications; and

(ii) as-built drawings,

that exist for the common property;

(c) the plans that exist showing the location of underground utility services, sewer pipes and cable television lines lo cated on the common property;

(d) all written agreements to which the corporation is a party;

(e) all certificates, approvals and permits issued by any public authority.

(2) A corporation may at any time before it receives a copy of a document under subsection (1) make to the developer a request in writ ing for a copy of that document, and the developer shall, within 20 days of receiving that request, provide to the corporation without charge a copy of that document if the document is in his possession or power.

Sale of residential units by developer

48 (1) A developer shall not sell or agree to sell a residential unit or a proposed residential unit to a purchaser unless he has available for the purchaser at the developer's place of business, and actually provides to the purchaser, at a charge, if any, no greater than the prescribed charge if the purchaser so requests, a copy of �

(a) the purchase agreement;

(b) the bye-laws or proposed bye-laws;

(d) any recreational agreement or proposed recreational agreement;

(e) the condominium plan or the proposed condominium plan;

(f) in relation to any mortgage that affects, or any proposed mortgage that will affect, the title to the unit or proposed unit (being in either case a mortgage offered or arranged by the developer), either �

(i) a copy of the mortgage; or

(ii) a notice setting forth the information specified in subsection (2).

(2) The information referred to in subsection (1)(f)(ii) is the fol lowing �

(a) the maximum principal amount available under the mortgage;

(b) the maximum payment (calculated on a monthly basis) that may be paid under the mortgage;

(d) the term;

(e) the interest rate or the formula, if any, for determining the interest rate;

(f) the prepayment privileges, if any.

(3) Every purchaser of a residential unit has the right, without incurring any liability for doing so, by notice in writing to the developer to rescind the purchase agreement within 10 days from the date the pur chase agreement was executed.

(4) If a purchase agreement is rescinded under subsection (3), the developer shall, within 10 days of receiving the purchaser's notice re scinding the agreement, return to the purchaser all money that was paid by the purchaser in respect of the purchase.

Supply of information by developer to purchasers

49 Every developer who enters into a purchase agreement shall in clude in the agreement the following �

(a) a statement that is at least as prominent as the rest of the contents of the agreement, and that is printed in red ink on the outside front cover or on the first page of the agreement, in the following terms �

"Section 48 of the Condominium Act 1986 confers upon the purchaser the right to obtain certain documents and information of vital importance for this agreement.";

(b) a description, drawing or photograph showing �

(i) the interior finishing of all major improvements to the common property located within a build ing;

(ii) the recreational facilities, equipment and other amenities to be used by the persons living in the residential units;

(iii) the equipment to be used for the maintenance of the common property;

(iv) the location of roadways, walkways, fences, parking areas and recreational facilities;

(v) the landscaping; and

(vi) the exterior finishing of the building,

as they will exist when the developer has fulfilled his obligations under the purchase agreement;

(d) the basis on which unit factors are established for all units (whether residential or not), and the unit factor for the unit.

Certain payments to be held in trust

50 (1) Subject to subsection (7), there shall be held in trust, in the manner specified in subsection (2), all money, other than money paid by way of rent or security deposit, paid by a purchaser under a purchase
agreement; and

(a) if the improvements to the residential unit and the common property are substantially completed, that money may be paid to the developer upon the purchaser receiving title to the unit;

(b) if the improvements to the residential unit are substan tially completed but the improvements to the common property are not substantially completed �

(i) not more than 50% of that money less the inter est earned on it may be paid to the developer upon the purchaser receiving title to the unit; and

(ii) on the improvements to the common property being substantially completed, the balance of that money and all the interest earned on the total amount held in trust in respect of that pur chase agreement may be paid to the developer.

(2) A developer who receives money that is required by subsec tion (1) to be held in trust shall forthwith deposit the money in an inter est-bearing trust account maintained by a licensed bank in Bermuda,

(3) A bank where money is deposited under subsection (2) shall keep it on deposit in Bermuda, and shall not pay it out to a developer ex cept in accordance with a statement in writing from the Registrar certi fying that the relevant requirements of subsections (1) and (6) have been satisfied.

(4) If, where money is being held in trust pursuant to subsec tion (1), a purchaser takes possession of the unit or occupies it before re ceiving title to the unit, the interest earned on that money from the day the purchaser's possession or occupation of the unit commences to the day he receives title to the unit shall be applied against the purchase price.

(5) Subject to subsection (4), a developer is entitled to the in terest earned on money held in trust pursuant to subsection (1).

(6) For the purposes of this section, improvements to a unit or the common property, as the case may be, are deemed to be substan tially completed when the improvements are ready for use, or are being used, for the purpose intended.

(7) Subsections (1) to (6) do not apply in respect of money paid to a developer under a purchase agreement if that money is held under the provisions of a scheme approved by the Minister that provides for the receipt, handling and disbursing of that money, or indemnifies against loss of that money, or both.

Limit on security deposit

51 If a purchaser of a residential unit, before receiving title to the unit, rents that unit from the developer, the amount that the developer may charge the purchaser as a security deposit in respect of the unit shall not exceed one month's rent charged for the unit or, in the case of premises to which the Rent Increases (Domestic Premises) Control Act 1978 [title 29 item 3] applies, the limit prescribed that Act.

Management agreements

52 (1) Subject to subsection (2), a corporation may, notwith standing anything contained in a developer's management agreement, terminate a developer's management agreement without cause at any time after the board of the corporation is comprised of persons who were elected to the board after the majority of the residential units were owned by persons other than the developer.

(2) A developer's management agreement �

(a) may not be terminated under subsection (1) until 2 years have elapsed from the day that the agreement was entered into except where the agreement permits termi nation at an earlier date; and

(b) may only be terminated under subsection (1) on the cor poration giving 60 days notice in writing to the other party to the agreement of the corporation's intention to terminate the agreement;

and the corporation is not liable to any other party to the agreement by reason only of the agreement being terminated under this section.

(3) In this section "developer's management agreement" means a management agreement that was entered into by a corporation at a time when its board was comprised of persons who were elected to the board at a time when the majority of residential units were owned by the developer.

(4) This section does not derogate from any other rights that a corporation may have to terminate a developer's management agreement.

Bermuda Consolidated Legislation

Condominium Act 1986