THE UNIT TITLES

FRAMEWORK IN
TANZANIA:
GENERAL CONSIDERATIONS
OF THE UNIT TITLES ACT,
2008 – CAP. 416
[By R.W.Tenga & Sist Joseph,]
A presentation to the REGISTRAR OF TITLES
Officers’ Workshop, Ramada Inn, Dar Es Salaam, 15
March 2010
 2

OVERVIEW
0. DEFINITIONS 5. THE UNIT TITLES
1. BACKGROUND TO ACT, 2008: OVERVIEW
CONDOMINIUM OF PROVISIONS
PROPERTY LAW 6. REGULATIONS
2. THE REFORM PROCESS
7. BY – LAWS
3. THE MORTGAGE
8. CONSEQUENTIAL
FINANCING (SPECIAL
PROVISIONS) ACT, 2008 CONSIDERATIONS
4. THE UNIT TITLES ACT,
2008 : SCHEMATIC
OVERVIEW
0. Definitions
• Condominium
▫ “ownership of one dwelling unit within a multi-
dwelling building, with an undivided ownership
interest in the land and other components of the
building shared in common with other owners of
the dwelling units in the building" . An individual
sectional ownership extends inward from the
interior walls, floors and ceilings. This definition
illustrates a sectional property ownership under
statutory law systems. [Masinde, MSc, 2006]
Definitions (Contn.)
• Condominium (Wikipedia)
▫ A condominium, or condo for short, is a form of
housing tenure. It is the legal term used in the
United States and in most provinces of Canada for a type
of joint ownership of real property in which portions of
the property are commonly owned and other portions are
individually owned. In Australia and the Canadian
province of British Columbia, the legal term for this is
strata title. In Quebec, it is known as syndicates of co-
ownership. In England and Wales the equivalent is
commonhold . Other terms are like Sectional Titles, etc.
Definitions (Contn.)
• Condominium (Legal Consultant)
▫ Divided co-ownership of real property occurs when certain portions
of a real property are owned by specific owners (hereinafter "co-
owners") for their use alone and certain portions of the property are
held in co-ownership by co-owners for their common use.
▫ Those portions of the property that are owned by a specific co-owner
and that are for his use alone are called the units. Those portions of
the property that are owned by all the co-owners and serve their
common use are called the common areas. Some of the common
areas may nevertheless serve the use of only one or several of the co-
owners, and those are called common areas for restricted use. The
rules regarding the common areas also apply to common areas for
restricted use.
Definitions (Contn.)
• Condominium (Tracht, Hofstra LJ, 1999)
▫ In a condominium development, each property owner has an
individual interest in a defined parcel of property, and shares in the
ownership (typically as tenant-in-common) of various common
spaces and facilities. Thus, in a typical multi-unit residential
development, each owner owns an apartment unit plus a
proportionate interest, with all of the other owners, in the common
elements, such as hallways, lobby, elevators and recreational
facilities.
▫ This hybrid form of ownership can be contrasted with a
cooperative, in which a corporation owns the real property, with
each shareholder in the corporation being entitled to a
proprietary lease to a specific apartment.
1. Background to Condominium Property
Law
1.1 Development of Condominium Property in Tanzania
A. THE ENGLISH CONCEPTS OF PROPERTY_ The
Common Law Paradigm
 Reception Clauses
 1st of January 1922 [Cap. 114 – Old], O-in-C 1920, JALO, & JALA.
 Land Act Cap.113
 Ad Coelum Rule
‘cuius est solum eius usque ad coelum et ad inferos’
 ‘quicquid plantatur solo, solo cedit’
Whatever is affixed to the soil belongs to it. Whatever is affixed
to the soil or the realty, thereby becomes a parcel.
 Property as the ‘Res’, ‘Bundle of Entitlements’, etc.
 Background to Condominium Property
Law (Contn..)
1.1 Development of Condominium Property in
Tanzania
B. HISTORY
 R.W. James (1971)
 Condominium ‘Archetypes’ in Ismaili Communities
 Structures based on the Law of Associations
 Scholastica Masinde ‘Establishment & Management
of Sectional Properties in Dar Es Salaam” MSc
Dissetation in Real Estate, UDSM, 2006
Private Sectional Property Owners
Parastatal Sectional Owners (NHC, NSSF, PPF, etc.]
 Background to Condominium Property
Law (Contn..)
1.1 Development of Condominium Property in
Tanzania
C. LAND LAWS
 LAND LAW ACT, CAP.113
Section 22 - Incidences of the Granted Right of Occupancy
Requires GRO to adhere to Registration Statutes
Co-Occupancy Provisions+
No Reference to SUB-TITLES or CONDOMINIUM TITLES
 LAND REGISTRATION ACT, CAP. 334*
Section 53 – No Transfer is registrable unless the division
thereof is made vertically.
 Background to Condominium Property
Law (Contn..)
1.2 The Housing Question as viewed by
GoT (Prf. Nnkya – Director of Housing)
A. Status:
 Majority of Tanzanians have no cash to buy or build a decent home; from
household income it takes 15 – 65 yrs to build a decent urban home in Tanzania.
In Europe it takes 3 yrs.
 Self-help housing in financing, supervision and construction often compromises
quality.
 Poor residential infrastructure
 Lack of social services in residential areas
 Improper location of residences in relation to places of work, shopping and
business
 Background to Condominium Property
Law (Contn..)
1.2 The Housing Question as viewed by
GoT (Prf. Nnkya – Director of Housing)
B. Causes of the Urban Housing problem:
Poor Physical Planning
Legal Barriers (Types of Tenure, Planning Laws, etc.)
No long-term Housing Finance
No real Estate development
Weak Management
Poverty generally.
Urbanization [Muzzini et al ‘The Urban Transition in Tz’ 2008]
 Background to Condominium Property
Law (Contn..)
1.3 The Need for Regulating Condominium
Property & the Housing Question
A. Facilitating Housing Finance
B. Catching Up With 'Archetypes‘
C. Regulating Stakeholders
D. Facilitating Urban Livelihoods
 Prevention of URBAN SPRAWL
 Effective, Speedy & Efficient Exchange of
URBAN HOUSING
 Reduce Urban Mobility Expenses & Costs
2. The Reform Process
2.1 Second Generation Financial Sector
Reforms Program
Major objective to promote mortgage finance.
 Consultant study on the mortgage market under the
Bank of Tanzania, in relation to the Housing Question,
suggests for the amendment the Land Act and
enactment of a Condominium Law
An inter-institutional Task Force identifies the main
bottlenecks as:
Long court procedures in lending cases
Red tape in transfer of mortgage properties
Unbalanced legislation that favors borrowers
2. The Reform Process – Cont….
2.2 PRE-REQUISITES FOR MORTGAGE
FINANCE MARKET FACILITATION
 Amendment of existing laws
 The Land Act
 Amendment of the Land Registration Act
 Amendment of the Civil Procedure Act
 Amendment of the Magistrate Court Act
 Enactment of Condominium Law
 Enactment of statutes on Estate Agents, Valuers and
Property Managers, etc.
 Administrative Actions
 Housing department
 Education on mortgage finance
 Develop regulations on unit titles
2. The Reform Process – Cont….
2.3 DRAFT BILLS, BILLS & ENACTMENT
OF MORTGAGE FINANCE LAW AND
UNIT TITLES BILL
Draft Bills discussed by stakeholders
Refining the Bills by the Ministry of Lands
Drafting the Bills by Attorney General
Discussion and enactment by Parliament
 Assent by the President
2. The Reform Process – Cont….Objectives for
Property Markets’ Legislative Schemes
 to promote and regulate the efficient
working of the property markets;
 to encourage the efficient use of land;
 to encourage developers to invest in
property and avail property to the
market;
 to limit urban sprawl, reduce the cost
of urban living and improve the
environmental conditions in urban
areas;
 to enable Tanzanians, particularly
women, to participate in the
ownership of decent homes;
 to promote the efficient working of
the mortgage market and a vibrant
housing finance system;
 to enable property owners to utilize
property to access facilities from
financial institutions;
 to develop property support services
including estate agents, property,
valuers, managers, architects,
contractors, financiers and lawyers;
 to establish an expeditious system of
property acquisition and transfer;
 to encourage the collection, storage
and dissemination of reliable
information about property markets,
and
 to establish an efficient framework
for regulating and management of
unit titles.
 17

3. THE MORTGAGE FINANCING

(SPECIAL PROVISIONS) ACT 2008

I. Preliminary IV. Amendment of the

provisions, (Ss. 1 – Civil Procedure
2) Act, Cap. 33 (Ss.
22 – 25).
II. Amendment of the
Land Act Cap.113
(Ss. 3 – 19)
III. Amendment of the
Land Registration
Act Cap. 334 (Ss. 20
– 21)
 18

4. THE UNIT TITLES ACT 2008:

SCHEMATIC OVERVIEW

I. Preliminary V. Management of
provisions, unit property,
VI. Dispute resolution
II. Creation and and enforcement
registration of mechanism,
units, VII.Termination of
III. Proprietary rights the unit status,
and,
and obligations of
VIII. General
co-owners,
provisions.
IV. Dispositions ,
Diagram No 1: Operation of the Unit Titles Act 2008

Clients (Potential
Financiers tenants/buyers)
(financial
institutions) MORTGAGE
FINANCING ACT 2008
Unit Associations
Managing
committee
Managing Agent
Intermediaries
*Estates agents Unit Common
*Valuers owners property
*Lawyers
Developers *Architects
(Real estate *Town Planners Unit
construction
companies)

UNIT TITLES ACT

2008

REGISTRAR
DIAGRAM 2: The UNIT TITLES ASSOCIATION – Relationships

Registrar of
Titles

Financial Facilities DEVELOPER

UNIT TITLES
ASSOCIATION

Management
Unit Property Common Property Committee

Managing Agent

Unit Owners
 21

5. THE UNIT TITLES ACT 2008: OVERVIEW

OF PROVISIONS
I. Preliminary V. Management of
provisions, unit property,
VI. Dispute resolution
II. Creation and and enforcement
registration of mechanism,
units, VII.Termination of
III. Proprietary rights the unit status,
and,
and obligations of
VIII. General
co-owners,
provisions.
IV. Dispositions ,
 22

PART 1: PRELIMINARY
PROVISIONS [SS 1 - 3 ]
 23

PART II: CREATION & REGISTRATION OF

UNITS [SS 4 - 18]
 24

PART II: CREATION & REGISTRATION OF UNITS

[SS 4 - 18] (2)
 25

PART III: PROPRIETARY RIGHTS &

OBLIGATIONS OF CO-OWNERS [SS 19 - 27]
 26

PART IV: DISPOSITION [SS. 28 - 34]

 27

PART V: MANAGEMENT OF THE UNIT

PROPERTY [SS. 35 - 66]
 28

PART V: MANAGEMENT OF THE UNIT

PROPERTY [SS. 35 - 66] (2)
 29

PART V: MANAGEMENT OF THE UNIT

PROPERTY [SS. 35 - 66] (3)
 30

PART V: MANAGEMENT OF THE UNIT

PROPERTY [SS. 35 - 66] (4)
 31

PART VI: DISPUTE RESOLUTION &

ENFORCEMENT MECHANISM [SS 67 -
71]
 32

PART VII: TERMINATION OF THE UNIT

STATUS [SS 72 - 79]
 33

PART VIII: GENERAL PROVISIONS [Ss

80 - 83]
 34

SCHEDULE
• Although Reference is made to a
Schedule there is none in the
statute. It is possible to suggest
that it may have referred to
some By-Laws especially those
regarding the facilitative and
superintendence role of the
Registrar.
 35

6. REGULATIONS
• Registration of units • Unit plan to conform to
• Application for certain requirements
• Certificates
registration of units.
accompanying unit plans
• Issuance of a • Registration and
certificate of a unit operation of
title associations.
• Application for • Qualifications of
registration of sub- managing agents of
associations.
division and
• Fees, offenses and
amalgamation penalties
• Change of use of unit
UNIT TITLE REGULATIONS FORMS (UTF) – 1st-13th Schedule to the
UTR, 2009
Form No. Description of the form Made under
Regulation/Section
UTF NO. 1 (1ST SCHEDULE) P. REGISTER OF UNIT (PLAN?) REGULATIONS 3(3) AND 6(1)
311-312
UTF NO. 2 (2ND SCHEDULE) NUMBERING OF THE UNIT REGULATION 3(4)
P. 313 PLAN
UTF NO. 3 APPLICATION FOR REGULATION 4(1)
REGISTRATION OF A UNIT
PLAN
UTF NO. 4 APPLICATION FOR REGULATION 5 (3)
REGISTRATION OF A UNIT
UTF NO. 5 CERTIFICATE OF TITLE (RIGHT REGULATION 6(2)
OF OCCUPANCY)
UTF NO. 6 APPLICATION FOR REGULATION 7(1)
REGISTRATION OF
SUBDIVISION/
AMALGAMATION
UTF NO. 7 CERTIFICATE OF LOCAL REGULATION 7(2)
GOVERNMENT AUTHORITY
FOR SUBDIVISION/
AMALGAMATION
UTF NO. 8 APPLICATION FOR CHANGE REGULATION 8(1)
OF USE OF THE UNIT
UNIT TITLE REGULATIONS FORMS (UTF) – 1st-13th Schedule to the
UTR, 2009….(continued)
Form No. Description of the form Made under
Regulation/Section
UTF No. 9A Certificate of consent for Regulations 8(2)
change of use from association

UTF No. 9B Certificate of consent for Regulations 8(2)

change of use from local
government Authority

UTF No. 10A A. Certificate of registered land Regulations 10(2)

surveyor

UTF No. 10B B. Certificate of a local Regulations 10(2)

government authority

UTF No. 11 Application for Registration of Regulations 13(7)

An Association

UTF No. 12 Certificate of Registration of An Regulations 13(8)

Association
 38

7. BY –LAWS
 PART I: ASSOCIATION OF  PART VI: DISPOSITION
UNIT OWNERS  PART VII: DISPUTE
 PART II: INTERPRETATION SETTLEMENT
 Part III: MEMBERSHIP,  PART VIII: GENERAL
VOTING RIGHTS AND PROVISIONS
MEETINGS  SCHEDULES
 PART IV: OPERATIONS & ▫ FORMS
ADMINISTRATION OF THE ▫ MODEL SALE
ASSOCIATION AGREEMENT
 PART V: ENJOYMENT, USE ▫ MODEL MANAGEMENT
& UPKEEP OF PRIVATE AND AGREEMENT
COMMON PROPERTY
UNIT ASSOCIATION FORMS (AF) – 16th Schedule to the UTR, 2009
Form No. Description of the form Made under
Regulation/Section
AF No. 1 Form of grant of easement Section 26 of the Act
and restrictive covenant by
the association.
AF No. 2 Cancellation of an Easement
AF No. 3 Notice by Unit Owner of a Section 31(2)
Lease
AF No. 4 Notice of Termination of Lease Section 31(3)
by Unit Owner
AF No. 5 Notice of unit owners’ Section 38(2)
representative authorization
AF No. 6 Notice of change of Section 39(7)
authorization of Unit owners’
representative
AF No. 7 Notice of change of address of Section 38 (9)
Unit owners’ representative
AF No. 8 Notice of Company’s Section 39(2)
Representative Authorization
UNIT ASSOCIATION FORMS (AF) – 16th Schedule to the UTR, 2009….
(continued)
Form No. Description of the form Made under
Regulation/Section
AF No. 9 Notice of Change of Section 39(6)
authorisation of
Company’s representative
AF No. 10 Notice of Change of Section 39(7)
Address of Company’s
representative
AF No. 11 Instrument Evidencing Section 43 (1)
Transactions Affecting
Common Property
AF No. 12 Notice by chargee to the Section 44 (3)
association
AF No. 13 Notice by chargee to the Section 44 (3)
association
AF No. 14 Notice of association Section 44 (5)
meetings to chargee
AF No. 14A Notice of association
meetings to Members
AF No. 15 Notice of appointment/ Section 47 (2)
cessation of membership
in management committee
UNIT ASSOCIATION FORMS (AF) – 16th Schedule to the UTR, 2009….
(continued)
Form No. Description of the form Made under
Regulation/Section
AF15A Notice of Proxy Section 44(7)
AF No. 16 Notice of amendment/revocation Section 50 (3)
of by-laws of association
AF No. 17 Association Register Section 51 (1) - (4)
AF No. 18 Notice of unit owner to the Section 52 (1)
association providing information
for inclusion in the Association’s
Register
AF No. 19 Notice of a Person other than a Section 52(3)
Unit owner to the Association
providing information for inclusion
in the Association Register
AF No. 20 Request for access to the Section 53 (1)
Association’s Register
AF No. 21 (18th Schedule) Certificate of association for grant Regulation 17(4)
of Easement/Restrictive
Covenant/Transfer or Sale of
Common Property on Termination
AF No. 22 Notice of Termination of Unit Section 17 (5)
Status
 42

8. Consequential considerations
 THE REGISTRAR’S  THE LAWYER’S TOOLKIT
OVERSIGHT  THE LAW
 TRANSFORMATION OF  LAND ACT CAP. 113
THE PRESENT TITLES –  LAND REGISTRATION ACT,
ESP. CONDOMINIUM CAP. 334
 PLANNING LAWS & LOCAL
‘ARCHETYPES’.
GOVEVERNMENT
 SELLING THE  COMMERCIAL LAW
REGULATORY SCHEME  SKILLS
 THE LACK OF  CONVEYANCING &
REGULATION OF ‘MARKET DRAFTING SKILLS
 NEGOTIATION SKILLS
FACILITATORS’ – THE REAL
 DISPUTE PROCESSING
PROPERTY
 MANAGEMENT SKILLS
PROFESSIONALS
 LEADERSHIP SKILLS &
WORKING WITH TEAMS
THANK YOU FOR YOUR
ATTENTION!