MULTI-STORY BUILDING TITLE OWNERSHIP
It is critical to consider the legal implications of any real estate development before proceeding. Any type of real estate transaction should be approached with consideration for the legal ramifications.
Understanding the optimal balance to be struck between the competing interests of developers and off-takers is essential.
Recognizing the significance of regulation as well as the limitations of regulation. The government should refrain from attempting to regulate everything.
The question of whether a strata title is appropriate under the law. Titles should be scrutinized more rigorously by the government. The title of the paper is a source of concern for off-takers. In multistory buildings, the problem is the title you get from a flat or condominium. Is it a sublease or a deed of assignment? If it were a sublease, then it means the developers still have a title over the property which is a risk. Government should look into this to give off-taker reassurance.
In this form of development, there is the issue of shared places. They are often dealt with on a contractual basis. In light of the potential threat that the developer may still be in control of the head title, should it be allowed to contract or should the state intervene and establish a certain presumption of shared ownership?
- Joint ownership of common areas, with a distinction between the common areas themselves and the building structure itself. In this domain of shared areas, there should be some limited kind of statutory innovation to protect those who take advantage of the situation. The Government should take this into consideration.
- We advised that, once the development is complete, the developer should submit the original head title deed with the appropriate state government agency. Because the document in the possession of the developer allows the developer to use it as leverage or for any other purpose. There are instances in which all of the properties are owned by a single individual who holds all of the titles. As a result, we expect the government to operate in this area with minimum oversight and regulatory intervention.
- Insurance after the project is completed is an issue that needs to be addressed. When it comes to a multi-story building, who owns the insurable interest? These are the concerns that need to be addressed in order to move forward. Generally speaking, insurance can be obtained at any stage of real estate development, and it is permissible to do so in accordance with Sections 64 and 65 of the Insurance Act of 2003 – all public structures and all buildings under construction with more than two stories are required to be insured. Insurance is available to assist with every stage of the change in the value of real estate. There is insurance support available throughout the value chain of the real estate sector, and it can be taken advantage of.
Off-takers of multi-story or high-rise buildings should ask the right questions about the type of title they receive from the property of their interest.
At Fine and Country, we specialize in transaction management and advisory in the luxury real estate space. Contact us today to be of service.
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