An Overview Of Strata Titles And Homeowners' Association Ownership

• Published date: 10 June 2022
• Subject Matter: Real Estate and Construction, Construction & Planning, Real Estate
• Law Firm: Coriats Trust Company Limited
• Author: Mr Christopher Smith (Griffiths & Partners)

Introduction

If you are looking at purchasing a condominium, apartment, or villa within a development/complex (as opposed to a standalone house or villa) in the Turks and Caicos Islands ('TCI'), title to the property will either be what is known as a 'strata title' or will be part of a Homeowners' Association. This article aims to give you a brief introduction/overview to strata titles and Homeowners' Associations and how they operate.

Strata Titles

A strata scheme must be used where there is more than one condominium or apartment in the same building but can also be used for a villa development.

At the outset of a development, the developer will obtain planning permission to carry out the development and the subsequent subdivision of property into individual lots and common property.

Lots are the units (condos, apartments or villas etc.) or any other areas owned by owners which form part of the lot e.g., car spaces, garages, docks, storerooms etc. and each is shown on the title as being owned by a lot owner.

Common property is defined as all areas of the development which are not contained in any current strata lot(s), such as common stairwells, driveways, visitor parking, roofs, paths, gardens, main gates, garbage areas, exterior walls and windows, balconies, lifts, etc, as well as recreational facilities such as gym, sauna, spa, swimming pool, tennis court, meeting room, golf course, etc.

A registered surveyor draws up a Strata Plan of subdivision showing which parts of the scheme will be individually owned lots, with the remaining parts being common property. All lots are allocated a unit entitlement and the original schedule of unit entitlements is shown on the Strata Plan and on the title to the common property. The unit entitlement will determine the proportion of the common expenses which the unit is responsible for, as well as its proportion of the overall voting rights of the Strata Corporation. The larger a unit, the larger its assessments liability and its voting rights.

This plan is then submitted to the local planning authority for approval. When approved by the local authority the Strata Plan is registered at the Land Registry. Following successful registration, title registers are created for each lot and one for the common property.

Once a Strata Plan is registered, a strata scheme comes into existence and a statutory strata corporation is automatically formed by operation of law. This legal entity will then bear the name "The...