AFTER YEARS of persistent appeals from owners of strata properties for changes to the Strata Titles Act, parliamentarians will in September continue debate on amendments to the legislation with a view to passing the bill into law.

Delinquent owners of strata lots who refuse to pay maintenance contributions and are reluctant to settle insurance costs will face stringent action under the proposed law.

The Registration (Strata Titles) Act will be amended to allow a power of sale to be exercised by a strata corporation for non-payment of contributions to the corporation by a proprietor, and to provide for the application of proceeds of such sale.

Prime Minister Bruce Golding, who piloted the bill in Parliament recently, said there were onerous provisions in the current law which made it impossible for corporations to function.

Under the existing law, the prime minister said if the majority of strata owners supported a proposal to amend the by-laws governing the strata corporation, one dissenting member could prevent that move.

Combined wisdom

Golding told his colleagues in Parliament that the bill benefited from extensive consultations with industry players, lawyers, developers and mortgage lenders. "What we have presented to Parliament represents the combined wisdom of all these critical players," said the prime minister.

An important provision of the bill is the establishment of a commission of strata corporation.

"Strata Corporations are no longer going to be left on their own to do as they like within both the limitations of the by-laws and the ambiguity of the by-laws," Golding added.

edmond.campbell@gleanerjm.com

Below are the reasons for amending the Registration (Strata) Titles Act along with the objects of those changes.

Memorandum of Objects and Reasons

The rapid increase in strata proprietorship has brought with it problems concomitant with this form of property ownership. Representation by owners of strata lots, especially on matters relating to delinquency in the payment of maintenance contributions, insurance coverage and the application of requirements for decisions by unanimous resolutions, has led to the Government's decision to amend the Registration (Strata Titles) Act in order to address these concerns.

Consequently, this bill seeks to amend the Registration (Strata Titles) Act:

(a) To establish a commission of strata corporations and to specify the duties of that commission;

(b) To provide for the keeping of a Register of Strata Corporations;

(c) To provide for the application of fees collected by the commission to its administrative expenses;

(d) To provide for the mandatory registration of each corporation with the commission;

(e) To mandate the submission of annual financial statements and reports by each corporation;

(f) To provide that where a corporation defaults on payment of premium on a policy of insurance which lapses or is cancelled, the corporation shall inform the proprietors and mortgagees, if any, of this fact;

(g) To create an implied covenant between a proprietor and a corporation that the proprietor or his heirs will pay any outstanding charges owed to the corporation prior to a transfer;

(h) To provide the procedure to be followed where a proprietor fails, neglects or refuses to pay contributions to the corporation;

(i) To allow a power of sale to be exercised by a strata corporation for non-payment of contributions to the corporation by a proprietor, and to provide for the application of proceeds of such sale;

(j) To provide that the commission may request:

(i) a copy of the by-laws of the corporation; and

(ii) an address for service for each proprietor;

(k) To establish a strata appeals tribunal.