With the current population out burst with in Kampala, Uganda’s capital, much consideration has to be put once one thinks of living around the ‘city of opportunities.’
In Uganda, once you’re looking to buy a home, there are plenty of choices available. One of them is a condominium—a multi-unit property that is divided and sold into individual units. Compared with a single-family dwelling, ownership in a condominium includes partial ownership in shared “common property.” This aspect of a condo represents unique challenges for buyers.
Many prospective first-time home-owners are appreciating the need to consider purchasing a condominium as opposed to a fully-fledged stand-alone house. For an average middle-class consumer, the idea of paying for a separate ownership of individual units in a multiple unit building is a natural step up from the grueling monthly rent payments that majority have to endure in their early professional life.
Indeed, there is an intuitive advantage in paying for an apartment that you will eventually own, instead of incessantly paying for residence in an apartment until you find a place of your own.
As such, investors, in their attempt to satisfy the demand for residential apartments have begun to tailor their offerings to the reality that most people would rather own the apartment than rent it. It is therefore pertinent to understand the legal prerequisites for condominium property development straight from the genesis of a project.
Condominiums come in many forms—townhouses, apartments, and even small homes within a larger development or neighborhood setting. Before purchasing a condo, it is advisable to request and read all the rules of the condominium complex. Many condominiums offer amenities like swimming pools, clubhouses, tennis courts, and golf courses.
The development and ownership of condominiums is governed by the Condominium Property Act, 2001 and the regulations thereunder. As with most other construction projects, the Act requires a proprietor or developer of an existing or planned building to submit to the registrar of titles a condominium plan conforming to certain requirements.
This plan is effectively what permits the division of a building on a piece of land (called a parcel) into condominium units each of which will have their own separate titles. The plan, which may be wholesome or phased, must meet the requirements under Section 9 of the Act.
Description of boundaries
Key to note under that provision, besides the requirements for delineation and particularisation of the boundaries of each unit, is the requirement that the plan is accompanied by certificates set out under Section 10. These crucial certificates include that of a registered surveyor, that of the local authority, and that of a registered architect.
The surveyor’s certificate shows that the planned structure is within the external surface boundaries of the piece of land on which the units are to be developed. The local authority in this case refers to the district, urban or local physical planning committees, as the case may be, whose roles, as specified under the Physical Planning Act, 2010 (as amended in 2020) include the approval of development applications relating to various real estate developments.
The local authority’s certificate is meant to confirm that the plan has met all the laws regulating building construction and accordingly been approved by the physical planning authorities. The architect’s certificate on the other hand is required where there is already a building in place that is sought to be divided into condominium units. This certificate serves the purpose of ensuring that the units indicated in the condominium plan correlate with the existing structure.
Discernibly, the law requires that before developing condominium property, one must have complied with the physical planning legal and regulatory framework. It is thus crucial that the developer, even when acquiring a parcel for eventual development, ascertains that the physical planning laws and regulations were duly complied with. Failure to ascertain that, exposes the developer to a risk of having a parcel which will be denied approval by the physical planning committee for infractions of a previous owner/developer.
Parcels under leasehold
Notably, condominium property arises from existing registered land, and the law accords it rights equivalent to those enjoyed by any other title holder under the Registration of Titles Act, Cap 230. This mundane fact carries an implication that both developers, owners and financiers must be alive to, especially when it concerns units arising from a parcel that was under the leasehold tenure.
The uniqueness of leasehold property is that after the expiration of the lease, ownership reverts to the lessor. The effect is that where condominium units are derived from a parcel under leasehold tenure, the reversionary interest therein lies with whoever leased that property.
This is a very important fact to disclose to people purchasing condominium property since in such a case, they may find themselves dispossessed in a manner they did not envisage. As Maya Angelou remarked, “the ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” Developers and purchasers alike should thus be keen not to create a home where the owner will be “questioned” some twenty or fifty years later.
Know What the Condo Includes
This may sound like a silly tip, but it’s important to know exactly what the condo includes. When purchasing your first condo, make sure you find out if the condo includes a reserved parking spot or additional storage! Does the condo community offer additional parking for your guests who visit you? Is the parking spot in a covered garage?
It’s important you know that the parking spaces and/or additional storage areas are going to be available at the time of closing before you purchase the condo! The last thing you want to find out is you have no where to park your car a week prior to closing.
Pros and cons of living in a condo
If you’re thinking of buying a condo, it’s important to weigh the benefits and challenges so your decision suits your lifestyle and budget. Here are some top things to consider.
Pros
- Lower-maintenance living: Since most, if not all, exterior maintenance on condos is handled by the HOA, condos are best for buyers who don’t want the higher maintenance (responsibility) of owning their own house, such as mowing their lawn, fixing a leaky roof, etc.
- Sense of security: Some condo communities have security staff, and the entrances are more difficult to access from the outside than single-family homes or townhomes. Many single people do not like living alone, and condo living makes them feel safer. Depending on the building, you might have secure entrances and parking, a doorman or concierge and other amenities that increase security and safety. This can also be a perk if you work odd hours or travel frequently.
- Opportunities to be social: Some HOAs organize social events like pool parties, barbecues and doggy playdates. In addition, because you see your neighbors in passing, you’re more likely than not to meet them in person. Condos are a great place to meet people since you are close to your neighbors, and this can provide a great sense of community.
- Affordability: Because condos tend to be more compact and require less land than single-family homes, they can be a more affordable way to own property. Property taxes tend to be lower as well. For some first-time buyers, condos make ideal starter homes precisely because they don’t have the upkeep and maintenance of a detached home, but you can still reap the benefits of ownership and building equity.
- Amenities: Depending on the condo community, you may have access to top-notch amenities like a grilling area, business center, pool, dog park, covered parking, clubhouse and more, and the cost of enjoying these perks is shared among all residents.
Cons
- HOA rules: One of the biggest complaints about living in a condo community is that HOA rules can be restrictive, providing guidance on everything from trash pickup and noise to what types of items may be stored on your patio and how many pets you can have. One should read the covenants and bylaws before buying a condo to make sure the rules won’t be a problem to one and your lifestyle.
- Investment risk: Condos can be a riskier investment because you are sharing ownership with other people in the building. If one person forecloses or short-sells their condo, it can take a toll on your value since you’re in the same complex.
- Lack of privacy: Because condos share common areas like the lobby, hallways, outdoor patios and amenities, a condo might not be for you if you value your privacy. The shared space also comes with noise issues. For example, if your upstairs neighbor wakes up early for work, those footsteps might drag you out of bed, too. If you want more seclusion or you entertain frequently, for example, a townhouse might be a better option.
- Limited outdoor space: Condos usually maximize real estate by building up, which often means there is limited outdoor or green space. If you’re the kind of person who needs to park work vehicles at home or needs a lot of outdoor space for your work or pleasure, a condo may not be for you.
- Rising HOA fees: HOA fees generally go up over time to address maintenance costs and any added amenities. It’s important to factor the cost of HOA fees into your homebuying budget, especially in more expensive housing markets. Keep in mind, too, that condo associations can enact special assessments on all homeowners for unexpected expenses or even new amenities.
- Restrictive rental policies: When you buy into a shared building, you commit to following the rules, which can prohibit how many units can be rented at any given time. Many condominiums don’t allow owners to rent their units after they purchase, so if you’re buying for an investment property make sure and check the rental regulations.
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