In a previous column, I discussed the potential disadvantages of buying a leasehold property that forms part of a condominium development. For a tenant, those drawbacks may include: Holding a depreciating asset with a finite term in the form of a fixed term lease; Being a party to a badly drafted lease or one which includes unfavourable terms; Being dependent on the landlord to promptly carry out repairs and maintenance and to insure the building of which the property forms part; Mismanagement or lack of management of the maintenance funds results in a lack of money to pay for substantial works required to the building; and An absentee landlord who does not carry out his obligations resulting in the development becoming run down or neglected.

The 1986 Condominium Act ("the Act'') was passed to address some of these concerns and to provide an alternative way of holding units on a condominium development.

A developer must comply with a number of statutory requirements in order to bring a development within the ambit of the Act. A condominium plan outlining the development must be registered with the Department of Works & Engineering.

Once registered, a Condominium Corporation is established that holds the freehold in the land on the development. A board of management elected by the unit owners administers the Corporation. Unit owners have a right to attend any meetings of the Corporation and vote on any issues of concern. The schedule to the Act sets out bye-laws, which can be enforced against the unit owners. In extreme cases a penalty can be levied against an individual owner who contravenes the bye-laws.

Responsibility for maintenance, administration and control of any property that is not sold to the unit owners rests with the Corporation. This may include collective areas and facilities such as communal laundry or parking areas as well as any shared grounds.

The Corporation is obliged to keep these areas clean and in a good state of repair. To do so it may hire staff or sub contractors, borrow money or mortgage its property by way of security.

The Corporation is able to sell the freehold in the individual units to the new owners thereby providing them with greater security and avoiding the need for lengthy and often confusing leases. A purchaser is entitled to see on demand, amongst other things, a purchase agreement, the bye-laws of the Corporation, details of the interior and exterior finish of the buildings on the development, recreati onal facilities, landscaping, and the location of walkways and parking areas.

The Corporation must within 20 days of receiving a request from an owner or intending purchaser of a unit, provide the requested details.

They might include a statement showing the contributions levied on the unit in question, a copy of the current budget and financial statements, a copy of the buildings insurance policy, and a copy of the bye-laws.

The particulars of any action commenced against the Corporation or any unsatisfied judgments or demands made against it may also be requested by an owner or intending purchaser.

Because there are no leases the Act sets out certain statutory rights from which the unit owners benefit. These include a right for each unit to receive services such as water, sewage, gas and electric and to be supported by adjoining units where they share common walls.

The bye-laws set out in the Act also include covenants that the unit owners must comply with, including restrictions on undue noise, obstruction of the common areas, the keeping of pets and so on. The Corporation has power to establish a fund to finance administrative expenses and to levy contributions from the unit owners. It is also obliged to maintain a reserve fund to cover extraordinary expenditure that is not of an annual or recurring nature such as repairs and maintenance and to maintain adequate buildings insurance on the units.

The terms of the Act are backed up by penalties that can be levied on the Corporation.

For example, failure to provide information to unit owners or intending purchasers is an offence under the Act. Any member of the board of management who is knowingly a party to the offence may on conviction receive a fine or imprisonment or both.

For unit owners, owning a condominium on a development set up under the Act has many benefits, including the ability to have the freehold in their unit conveyed to them and to be safeguarded against negligent or unscrupulous landlords by the provisions in the Act.

The work involved in setting up a Condominium Corporation, registering the condominium plan and the penalties that can be imposed in the event of non compliance with the Act, often deters developers from going down this road.

The fact is, however, that the legislation does address many of the current weaknesses of the landlord tenant relationship.

Attorney Martin Mitchell is a member of the Property Department at Appleby Spurling & Kempe. You can write to him with your questions or comments at mmitchell Yask.bm. Copies of Mr. Mitchell's columns can be obtained on the Appleby Spurling & Kempe web site at www.ask.bm.

This column should not be used as a substitute for professional legal advice.

Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.