The Law Reform Commission is embarking upon the second stage of its review of the Strata Titles Registration Law (2005 Revision).
The commission is reviewing and updating its first bill drafted in 2011, and is looking at outstanding issues not addressed in the first bill. The end result will be a “second bill covering all areas of strata regulation (incorporating the provisions in the first bill)”, according to commission Director Cheryl Neblett.
Attorney David Ritch, of the firm Ritch & Conolly, is assisting the commission with the consultation process, after which the second bill will be submitted for public discussion. The first bill was never officially brought before the Legislative Assembly for consideration.
Mrs. Neblett said the second bill will cover, among other things, the following areas: the need to change or create new basic definitions in the law (such as ‘proprietor’, ‘strata lot’, ‘developer’, etc.); subdivisions into strata lots and common property; strata lot boundaries; strata plan requirements; creating leasehold strata lots; restricting use of parcels; strata lot consolidation; converting strata lots into common property; unit entitlement of strata lots; strata plan registration; support and services; ancillary rights; common property ownership; common property transferral or leasing; creation of easements and covenants; reform of provisions dealing with phased development; leasehold strata provisions; and vacant land strata provisions.
Additionally, the following provisions, which were included in the first stage of the review, are being revisited pursuant to comments received from the public: incorporation of proprietors; duties of corporations; books of account; preparation of financial statements; levy of contributions on proprietors; powers of corporations; service of documents on corporations; bye-laws generally; supply of information and certificates by corporations; functions of executive committees; performance of functions in the absence of executive committees or quorums; restrictions on powers of expenditure; insurance generally; termination of strata schemes; and, potentially, resolution of strata disputes.
“The above list is not a comprehensive list and is subject to change as the consultation is ongoing,” Mrs. Neblett said.
In January 2009, the commission invited members of the public to submit comments on strata regulation or concerns that have arisen with the law. That resulted in a discussion paper and the first draft bill, made public in April 2011.
According to the discussion paper, several local attorneys recommended, “the law was in need of a comprehensive overhaul”, with most recommending that the law follow strata legislation of New South Wales, Australia. The current strata legislation in the Cayman Islands is based on 1961 strata law of New South Wales, which has evolved over the decades. “The Strata Titles Registration Law of the Cayman Islands is therefore years behind its original model and it is accepted that comprehensive reform is needed,” according to the paper.
Appointed in April 2009, a subcommittee on strata reform worked on a draft of the bill until October 2010. However, a consensus could not be reached on some aspects of the legislation. In December 2010, the commission determined to carry out the review in two phases.
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