CMA takes firm stand on condominium plans
by Don Asoka Wijewardena
Commercial and State banks and all developers have already been advised
by the Condominium Management Authority (CMA) to strictly adhere to the set
rules and regulations of registered condominium plans in their transactions
with condominium stakeholders, said CMA General Manager Athula Wimalaratne
in an interview with the "Sunday Observer".
Wimalaratne said that in accordance with the Apartment Ownership
(Amendment) Act No 39 of 2003 CMA had been empowered to issue provisional
condominium certification which was mandatory for developers for provisional
condominium plan registration.
He said that some developers were in the habit of deceiving buyers of
housing units as developers would sell housing units even before the
construction was completed.
Developers were paid down payments, advances and even full payment by
prospective buyers and when the construction was completed the facilities
promised in the housing plan were omitted without the knowledge of the
buyer.
Wimalaratne said that commercial banks, state banks and lending
institutions too had been used to release funds or provide financial
assistance to prospective buyers mortgaging the property to be constructed.
He said that CMA had already advised all banks and lending institutions
to demand a registered provisional condominium plan from any developer as
most developers were in the habit of avoiding provisional condominium plan
registration and were trying to go directly for condominium plan
registration after completing the construction.
Regarding the rationale for taking such action,Wimalaratne explained that
CMA,as the regulatory body had found that most developers were not
fulfilling their agreed terms and conditions to prospective buyers and the
buyers had no valid document to justify their claims legally.
"When a buyer registers a condominium plan the developer can change the
agreed terms and conditions. CMA can regulate legal aspects on buyers'
behalf more efficiently and effectively," Wimalaratne said.
The quality and progress of any proposed construction work and any
deviation from originally agreed terms and conditions (between the buyer and
the developer) would be with the approval of CMA.
He also said that most occupants had been living only with sales
agreements and were finding very difficult to obtain deeds from the
developers because some unscrupulous developers had been postponing issuing
deeds due to numerous reasons unacceptable to CMA.
When asked about the legal procedure for any contravention of Apartment
Ownership (Amendment Act No. 39 of 2003,Wimalaratne said that any person who
contravenes the Act would be guilty of an offence and be liable on
conviction after summary trial before a magistrate to a fine not exceeding
Rs. 50,000 and a further fine not exceeding Rs. 1,000 for each day the
offence would continue to be committed after such conviction.
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