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{
    "id": 960799,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/960799/?format=api",
    "text_counter": 351,
    "type": "speech",
    "speaker_name": "Funyula, ODM",
    "speaker_title": "(Dr.) Wilberforce Oundo",
    "speaker": {
        "id": 13331,
        "legal_name": "Wilberforce Ojiambo Oundo",
        "slug": "wilberforce-ojiambo-oundo-2"
    },
    "content": " Thank you Hon. Temporary Deputy Speaker for this opportunity to contribute on the Bill on sectional properties. For record purposes, this Act is an update or upgrade to the existing Sectional Properties Act. I suppose this upgrade is as a result of the intention to align it to the new constitutional dispensation and to take account of the emerging challenges in the registration of partial or fractional interests. The import of this Bill is to introduce a second legislation in respect of registration of properties. The principal or the main Act that registers properties or recognises rights and properties of the Land Act (No. 6) of 2012... Therefore, the Sectional Properties Act becomes the second principal Act under which a property right and interest can be registered. All registration of land is under the main Land Registration Act (No.3) of 2012. The Sectional Properties Act has a very short history in this country but a long history elsewhere in the world. For many years, because we had a lot of land, the issue of flats, the so-called apartments, was not a common factor. Even when it became a common factor, because of the complex nature of registration of properties under the old or the existing Sectional Properties Act, many developers or sellers avoided registering their properties under this legislation. They opted to go for sub-leases under the Law of Contract or any other arrangement. Most of the sectional properties that had been registered under the Sectional Properties Act are those developed by the National Housing Corporation (NHC) and Government-related bodies. The way this Bill is crafted, it offers simpler ways; it is less complicated. We hope that all other developers will be encouraged. I think, at the point we will be making the relevant amendments in the Committee of the whole House, we will need to discuss and agree, with the Chair of the Departmental Committee on Lands and related subjects, to find ways of tightening this Act. That is so that we make it compulsory that one cannot register sub-leases but register the so-called sub-leases under the Sectional Properties Act. The issue of security of title and security of tenure becomes critical for any purchaser or any aspiring owner of a property. If you purchase a property that does not confer to you adequate rights and interest, that property causes insecurity. It might not be a good security for collateral or financial purposes. So, consequently, the real property sector has continuously developed land right regimes that confer adequate and safe titles. I reckon that the Sectional Properties Act will, indeed, confer adequate rights and interest on the property that can be used for collateral and other financial or economic activities. However, looking through the Act, there are some omissions that are either by design or lack of understanding about how the issues operate. We need to highlight that at the moment. A good example is on the issue of the corporation. It is inconceivable that you can talk of a corporation that has shareholders, one that has share capital, a corporation that collects funds on regular basis and that undertakes specific functions yet say the corporation will be registered by the Registrar of Title or Registrar of Lands. The Registrar of Lands can never register a company. A corporation, whichever way you look at it, is a company. Worse enough, under Clause 17(6), the drafters of the Bill purport to insulate the corporation from the operations of the Companies Act. We will consider that at the most opportune time, based on the experience we have. I declare my interest that I have administered or been in relation to property and related fields for over 25 years. So, I have a host of experience based on practice. I will discuss with the Chair to see how we can make it complaint with the operations of the Companies Act. That is so that it becomes easier and better to run. There are very many cases of these corporations or in the The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}