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In their recent update, they shed light on the Sectional Properties Act, 2020 ("the Act") and the Sectional Properties Regulations, 2021 ("the Regulations"). The Act pertains to the division of buildings into residential or commercial units, owned by individual owners, along with the common property shared by all unit owners in the building. It requires the registration of a sectional plan and the formation of a Corporation responsible for the control, management, and administration of the units and common property.

The Regulations operationalize the Act and cover areas such as registering a sectional plan, conversion of long-term leases, exemptions from conversion, and prescribed forms for registration. The Act is applicable to parcels of land with freehold or leasehold titles, having a minimum of 2 units in a building.

Developers must provide specified documents to purchasers, and existing structures may be designated as buildings with units through the registration of a sectional plan. The Act also addresses the conversion of long-term sub-leases to sectional units, with certain exemptions for specific types of leases.

Registering a sectional plan has various effects, including the closure of the register for the building's land and the opening of separate registers for each unit. Each unit will have its own title and will be liable for rates and ground rent assessment.

A.B. Patel & Patel LLP is committed to providing expertise and guidance in navigating the intricacies of the Sectional Properties Act and Regulations, ensuring clients' compliance and protecting their interests.