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OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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CONTENTS

Proclamation No. 370/2003Condominium Proclamation Page 2395

PART ONE

Ii' h'T"C C"hGfNERAL

1) Short Titlef,tJ h'P~ "fJ\. :'-V-k1 ~~t-"lf Jt 'fPht-rt1lf ~Tl1lLh This Proclamation may be cited as the' 'Condominiumf;Jt- ih1K n.+ 111\n.+~"" h'P~ ck1'C rf(f/litfj~" Proclamation No. 370/2003""-111\0lLl11+h f,rl\/At:

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PROCLAMATION NO. 370/3003CONDOMINIUM PROCLAMATION

WHEREAS, it is deemed necessary to implement otheralternatives of urban land use in addition to plots basis urbanland use to narrow the imbalance between the demand for anysupply of housing;

WHEREAS, is recognized that the allocation of urbanland to a high rise or a row of houses condominium buildingwill contribute to maintain the beauty of the urban areas and tothe improvement of urban land use and supply of housingthrough making great number of people benefit and com-monly hold a small size of urban land;

WHEREAS, it is essential to the development ofcondominium to create favorable conditions, to privatedevelopers and co-operatives, which have a major con-tributions towards the development of condominium and alsoto purchase of units and to all others, which have a right,related to the condominium;

NOW, THEREFORE, in accordance with Article 55Sub Article (1) of the Federal Democratic Republic ofEthiopia it is here by proclaimed as follows: .

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Negarit G.P.O.Box 80,001

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2) DefinitionIn this Proclamation:-1) "Condominium" means a building for residential or

other purpose with five or more separately ownedunits and common elements, in a high-rise buildingor in a row of houses, and includes the land holdingof the building,

2) "Common elements" means all that are part of thecondominium except the units,

3) "Common expense" means any expense related tothe performance of the objectives and duties of unitowners associationand any expenses specified ascommon expenses in this proclamation or in adeclaration,

4) "Common surplus" means the excess of all receiptsof the owners association over the expenses of theassociation,

5) "Declarant" means anyone who registers a buildingunder Art. 3 of this proclamation,

6) "Declaration" means an instrument that describesthe rights and obligation of the unit ownersassocation and of each unit owner and includes anyamendments thereto,

7) "Description" means an instrument that specifiesthe name and location of the condominium, theboundaries of units and of common elements, andincludes all amendments thereto,

8) "Limited common elements" means commonelements designated for the exclusive use of only oneor some of the units,

9) "Unit owners Association" means an assocation ofunit owners instituted under this proclamation,

10) "Person" means natural or legal person,11) "Registrar" means an office assigned to register a

condominium in accordance with this proclamation,12) "Unit" means a part of the building consisting one

or more rooms and designated for il specific purposein a declaration and description,

Scope of AplicationThis Proclamation shall apply on Addis Ababa and DireDawa City Administration,

PARTTWO

REGISTRATION AND CERTIFICA TE

4. Registration of Condeminium1) Subject to provisions of this Proclamation, a buil-

ding may be registred as a condominium when theowners or their agents submit written applicationdeclaring the intention that the building be governedunder this Proclamation together with a declaration;description, by-laws, and rules.

2) The contents of declaration, description by-laws andrules shall be determined by the Regulations issuedto implement this Proclamation.

3) The declaration description by laws and rules shallbe approved and registered by the registrar.

5. Certificate of Registration

Certificate of registration shall be issued for thedeclarantwhere the building is registered under this Proclamation.

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6. Effect of Registration1) The building together with the land holding and

related rights benefits and obligations shall begoverned by this Proclamation.

2) The building in the description shall be divided into. units and common elements.

3) A unit owners association shall be instituted as anindependent legal person.

7. Amendment to Declaration Description By-laws andRules1) The amendment of declaration description by-laws

and rules shall be approved by a 2/3rdmajority voteof unit owners.

2) The amendment of declaration description by-lawsand rules approved by unit owners shall be effectiveonly upon registration and issuance of certificatethereof.

PARTTHREEOWNERSHIP

8. Unit Ownership1) Subject to this Proclamation a unit owner is entitled

to ownership right upon the unit.2) A unit of a building registered under this

Proclamation ma):' be subject of any legal transac-tion.

9. Common Elements1) Subject to the restrictions in this Proclamation, the

declaration, description by-laws and rules any unitowner shall have the right to properly use thecommon elements.

2) The right to use common elements is undivided andattached to the unit ownership.

3) The percentage of the undivided share of interest inthe common elements attached to the unit ownershipshall be determined in the declaration.

4) The percentage of the undivided interest in thecommon elements shall be a part of the unitownership and any legal act on a unit shall also beeffective upon the undivided share of interest.

5) Unless otherwise provided in this Proclamationcommon elements are not divisible.

PART FOURWVITOWNERSA~OCMTION

10. The AssociationThe unit owners association is an association establishedwith a view to obtaining mutual benefits other thansecuring or sharing of profits.

11. ObjectivesThe unit owners association shall have the followingobjectives:1) manage the condominium on behalf of unit owners:2) ensure the peace and security of residents in the

Condominium;3) ensure that unit owners, occupiers of units, lessees of

the common elements comply with thisProclamation, declaration, description, by-laws andrules;

4) Perform other necessary activities in the interest ofunit owners mutual benefit.

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12. MembershipEvery unit owner in a condominium shall be a member ofthe respective unit owners association.

13. Powers and Duties of the Association

The unit owners association shall have the followingpowers and duties:1) adopt or amend the declaration description by-laws

and rules.2) approve budgets and amendments thereto;3) determine the conditions on the use of common

elements;4) lease, subject to security and transfer the common

elements;5) determine fines, fees and contributions;6) hire, administer fire emloyees;7) own, subject to security and transfer property;8) enter into contracts, to sue or be sued.

14. Powers and Duties of the General Meeting

The unit owners general meeting shall have the followingpowers and duties:1) approve the declaration, description and amend-

ments thereto;2) approve the by-laws and rules, and amendments

thereto;3) elect and remove members of the board of directors;4) hear and decide on activity and audit reports of the

association;-5) decide on amalgamation of the unit owners as-

sociation with other unit owners associations and ontermination of the condominium to be administeredrthis Proclamation.

6) approve the annual plan and budget;7) Decide on such other matters as may be presented by

the board of directors.

15. Meeting of unit Owners

1) The unit owners association shall hold annualgeneral meeting.

2) The unit owners association shall hold othermeetings as may be called by the board of directors~

3) A general meeting shall be called by the' borard ofdirectors where owners of 25% of the units requestfor a general meeting.

4) There shall be a quorum in any general meetingwhere owners who own 50% + 1 (fifty per cent plusone) and above of the units are present.

5) Unit owners may cast vote personally or by proxy.6) Unless otherwise provided in this Proclam~tion all

matters proposed for the consideration of the unitowners at a meeting of owners shall be decided bymajority votes of owners.

16. Board of Directors

1) The board of directors is the managerial organ of unitowners association.

2) Provided that declarant may assign the first board ofdirectors, the unit owners shall, from among the unitowners, elect the directors.

'ut I'ilrfji ~1..MA ~;J~T ;JH.IIJ ~'I'C 1G A.,."'L i +1 Iif1G 'Ha. Federal Negarit Gazeta - No. 95 11th September, 2003-Page 2399

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17. The First Board of Directors

1) The declarant shall designate the first board ofdirectors after registration of condominium underthis Proclamation.

2) Unit owners may elect additional members to thefirst board of directors or elect members for asucceeding board of directors.

3) The period of election under this Article, and thetransitions of powers between the first board ofdirectors and the succeeding board of directors shallbe determined by regulations to be issued under thisProclamation.

18. Powers and Duties of Board of Directors

The board of directors shall have the following powersand duties:1) call the unit owners' General meeting under this

Proclamation and keep minutes;2) prepare amendments for the declaration, description,

by-laws and rules and implement it upon approval;3) prepare annual plans and the budget and implement

it upon approval;4) keep the reccords and accounts of the association;5) implement the decisions of the general meetings of

unit owners;6) submit reports on the activities of the association to

the general meetings;7). perform such other duties as may be assigned by the

general meetings.

19. By-laws and Rules

The unit owners association shall have by-laws and rules.

20. Auditor

1) Unit owners association shall have an auditors.2) The appointment, number, qualification, duties and

dismissal of on auditors shall be determined byregulation.

PART FIVESALE AND LEASE OF A UNIT

21. Sale By the Declarant

1) The declarant may cooclude the contraen of sell of aunit before or after registration of the building.

2) The declarant shall deliver a disclosure document toevery person who purchases a unit from the declarantbefore or after the registration of the building.

3) The contract of sale shall not bind the purschaseruntil the decalarant delivers him disclosuredocument.

4) A purschaser who received a disclosure documentmay, before transfer of ownership, cancel the con-tract of sale and notify in writing the cancellation ofthe contract to the declarant.

5) The declarant shall deliver the purchaser an amendeddisclosure document whenever there is a materialchange in matters declared in the disclosuredocument. The purchaser who received an amendeddisclosure or who discovered a material change maynotify in writing the declarant the cancellation of thecontract.

.,~. !{j'i.!i~ ~Yu/..A '1:J/.'} :J'LflJ <I:'I'(;:t?; ~"''''L?; ""} Ii!~:i?; 'H". Federal Negarit Gazeta - No. 95 lllh September, 2003-Page 2400

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6) A delcarant who entered into a contract of sale of a

unit before the registration of the building shallcomplete construction and register the buildingwithout delay.

22. Lease of a Unit

I) The owner of a unit who leases or renews lease of a

unit shall notify to the unit owners association thecontract thereto, and shall provide a copy of thecontract of lease or renewal.

2) The owner of a unit shall notify the unit ownersassociation the termination of the contract of leaseand provided the relevant document that evidencethe termination.

3) The owner of a unit who leases a unit shall providethe lessee with a copy of the delclaration anddescription, by-laws and rules of the condominum.

23. Interim Occupancy

The contract of sale of a unit may provide the occupancyof a unit by the purchaser before registration of thebuilding and transfer of ownership and may determinethe occupancy fee to be paid by the purchaser and theduties of the declarant during interim occupancy.

P ART SIX

COMMON EXPENSES AND SURPLUS

24. Contribution by Owners

1) Without prejudice to other provisions of thisProclamation unit owners shall contribute to covercommon expenses in proportion to their undividedinterest in the common elements.

2) Sub Article 1 of this Article shall be applicable evenif, the owner has waived the right to use the commonelements or he has a claim against unit ownersassociation or the declaration, by-laws and rulesrestrict him from using the common elements.

25. The Right to Lien1) The unit owners' association shall have lien right in

proportion to the unpaid common expense against

the owner's unit and appurtenant common interest.The amount needed from the unit owner shallinclude interest on and expenses due to the delay ofthe payment of common expenses.

.2) The unit owners association must in accordance with

this proclamation obtain a certificate evidencing itsright of lien within three months period, begniningfrom the default.

3) A lien right not registered with in the period fixedunder Sub Article 2 of this Article shall have noeffect after the lapse of the three months period.

4) The certificate evidencing the right to lien shallspecify the defaulted amount and the expensesincumed by the association to recover the paymentfrom the unit owner.

5) The unit owners association shall give 15 days notice

to the concerned owners before the registration of thelien.

_._-.,~ ~it!!fli 4..1..&-&\ '1;,1&:" ;,Itt.lIJ ~'I'C j~ h"'1 } +'} I~fj~ '}.9". Federal Negarit Gazeta - No. 95 11ch September, 2003-Page 2401

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6) The unit owners' association shall cause the regis-tration of payment and give a testimonial to theowner who paid the defaulted contribution under thisArticle.

7) The right to lien of the unit owners association underthis Article shall have priority over registered or notregistered rights except tax and duties of the govern-ment.

26. Common Surplus1) The common Surplus obtained by the unit owners

association shall be used to cover common expensesor shall be deposited in the reserve fund.

2) Common profit shall not be divided among unitowners except upon the dissolution of the as-sociation.

27. Repair and Maintenance1) Repair of damage caused by accident:

(a) The unit owners association shall repair units,common elements and the assets of the as-sociation damaged by accident.

(b) Repair of damage caused by accident shallinclude repairing and replacing the damagedpart. But it does. not include repairing thedamage caused to improvements made to a unit.

(c) For the purpose of this proclamation im-provements to a unit shall be determined inaccordance with the standard set in the de-claration to which a particular unit belong.

(d) Notwithstanding Sub-Article l(b) of this Ar-ticle, the unit owners association shall have aresponsibility to repair improvements made to aunit before the registration of the building.

2) Maintenance(a) The unit owners association shall have a respon-

sibility to maintain common elements.(b) Each unit owners shall have a responsibility to

maintain the a unit.(c) Each unit owners shall have a responsibility to

maintain the limited common elelment reservedfor their exclusive use.

(d) The responsibility of maintenance shall meanwear and tear caused by normal use or old age.

3) Maintenance for the unit of owners(a) The unit owners association may maintain a

common element or a unit, which a}lnit owneris responsibl~ but failed to maintain with in areasonable period of time.

(b) The cost of the maintenance done under thisSub Article by the unit owners association shallbe added to the contributions of the defaultingunit owner to the common expenses.

28. Reserved Fund1) The unit owners' association shall establish a reserve

fund for repair and maintenance and may use itwhere necessary.

2) The unit owners' association shall collect con-tribution from owners for the reserve fund.

3) The Reserve Fund Under this Article shall be theproperty of the unit owners association. And it shallnot be divided among members except under thisproclamation.

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PART SEVENAMALGAMATION OF ASSOCIATION

29. Registration1) Without prejudice to the provisions of this

proclamation two or more unit owners associationsmay amalgamate by registering with the registrar theDeclaration, description, by-laws and rules for theamalgamated association.

2) The registrar must ensure the decision for amal-gamation is ratified by 80% of unit owners of eachassociation and is signed by duly authorizedrepresentatives of each association.

3) The amalgamated declaration, description, by-lawsand rules shall be presented and approved by thegeneral meeting held to decide on amalgamation.

4) The last year audit report of the amalgamating unitowners associations shall also be notified to mem-bers of each association at a meeting mentionedunder Sub Article 3.

30. Effect of Registration

1) The assocaitiol\s are amalgamated and one amal-

gamated association shall be established.2) The units and common elelements befor the amal-

gamation association shall be units and commonelements of the amalgamated association.

- 3) the declaration, description, by laws and rules of

each amalgamated association shall cease to apply.4) Without prejudice to Article 31 of this proclamation,

directors of each amalgamated association shalltogehter constitute the first directors of the amal-gamated association.

5) The memebers of the amalagmated association shall

designate one or more auditors serving until electionis held under Article 31 of this proclamation.

6) the declaration, description, by laws and rules

approved and registered under Article 29 of thisproclamation shall be the declaration, description, bylaws and rules of the amalgamating association.

7) The rights and duties of the (each) amalgamated

association shall be transferred to the amalgamatedassocaition.

31. EjectIOnof Directors and Auditors

The general meeting of the amalgamated associationshall, with in 90 days of registration of the declaration,description, by-laws and rules of the amalgamatedassociation elect members of the board of directors anddesignate auditors.

PART EIGHTTERMINATION OF CONDOMINIUM TO BE

GOVERNED UNDER THIS PROCLAMA TION

Consent of Unit Owners

The association shall notify in writing to the registrar if80% of the owners vote for termination of the con-dominium to be governed under this proclamation.

'I~' j{j'i.!!xt &.,Yo/..A ~;Jt,} :J/l.flJ </:1'C :i?; A.,."'L ?; ""} Ii!ti?; '}.9". Federal Negarit Gazeta - No. 95 11 th September, 2003-Page 2403

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33. Substantial Damage1) Whenever the board of directors decides there is

substantial damage to the building it must submit thematter to the general meeting and the later shalldecide on the extent of the damage and whether toterminate the condominium to be governed by thisproclamation.

2) The board shall notify the registrar if 80% of the

owners vote for termination of the condominium tobe governed by this proclamation in the generalmeeting held under Sub Article 1 of this Article.

3) The board must repair the damage if the unit owners

do not vote in favor of the termination of the of thecondabinium to be the governed by thisproclamation by a majority determined by thisArticle.

34. Sale

1) If the condominium or part of the common element issold, this proclamation shall cease to govern therespective condominium or common elementthereof.

2) To make a sale under this Article, the association

shall obtain.(a) 80% vote of unit owners in favor of sale, and(b) Consent expressed in writing of each unit

owners to whom the limited common elementsare designated where the sale includes limitedcommon elements.

35. Expropriation for Public Interest

A condominium or a common element expropriated forpublic interest shall cease to be governed by thisproclamation.

36. Proceeds and compensation

1) The unit owners shall share the proceeds of sale orcompensation received for condominium or com-mon elements sold or expropriated under Article 34and 35 of this proclamation, in the same proportionto their interest in the common element.

2) Notwithstanding Sub-Article 1 of this Article the

proceeds of sale of limited common elements shallbe divided among owners, to whotn it is designated.

37. Registration

1) The registrar shall examine the notice under Article

32 and Article 33 of this proclamation and shallregister and deliver a certificate.

2) This proclamation and other laws enacted to im-plement this proclamation shall cases to govern thecondominium up on the delivery of the certificate.

38. Distribution of AssetsWhen the condominium ceases to be governed by thisproclamation,1) The asset of the association shall be used to pay the

debts of the association and2) The remaining shall be divided among the owners in

proportion to their common interest.

'/~' !{i'I:!i~!i t.,yu{..t\ '1,?{..1. ,?/LfTJ <I:'I'C j?; A'/''''L:r; .,..t Xit!1?; 'HI'" Federal Negarit Gazeta - No.95 II th September, 2003-Page 2404

c!H!' nf.l.~~:"fuP(~ ~f 0.:" f'H1l.:" P'1r 0I/101r:" f;J1r c'h,}~

nuPp't.:" t}f\0I/ f\..f.lrT{. ~-:;'f\ir::40. Applicability of Co-operative societies Proclamation No.

147/1999

1) The co-operatives proclamation No. 147/98 shall beapplicable on co-operatives established for the pur-pose of building a condominium.

2) This proclamation shall be applicable on co-operatives established for the purpose of building acondominium up on registration under thisproclamation.

41. Registration of the Building1) The management committee of the co-operative

shall up on completion of construction, register thebuilding under this proclamation.

2) The management committee, which registers thebuilding under this Article shall become the firstboard of directors and shall have the powers andduties of the board under this proclamation.

3) The control committee under proclamation No. 147/98 shall be an auditor under this proclamation.

4) The unit owners may elect a new board of directorsand designate auditor with in 90 days from regis-tration of the building.

tI~AtllIl~

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.<-'{}uP tI.., fl A:

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tI~A nP'C

A f. A f. f:,} ;J1.91'f

PART NINE

Co-operatives' Condominium

39. Establishment

Co-operatives may be established for the purpose ofbuilding a condominium.

PART TENMISCELLANEOUS

ij~' f.'}.n {}l\IP/lD'll):"

fh"'°'1 n{}''''~f.~:t: ~tJ'} ner"f: i\IP/{}t.'A9"fIP/.l.~ f.'}.nl\IP/lD'll):"~-:;'f\ir::

42. Power to issue Regulation

The City Administrator may issue Regulation necessaryfor the implementation of this proclamation.iji:' {}i\ /bi\"-:;' c'h'Jo-:;''f.t.~IP/.":"

{i' n:m f2~ t}.9" flDll)CD-fn. :"f'A'f ~:",.h .n,.h.C c'h'"

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'f.t.~IP/.":" n~If"'9U:

~. 0I/'}~':CD-9"c'h"': AIP/'(' lD~9" nlPt.C OtltJ ner"f:IH.f. "11~ ~~f'-:;' f\~ 'f.t.~IP/.":" n~~ l.CD-9"::

43. Applicability of Other Laws

1) Articles 1281 to Article 1308 of the 1960 civil codeof Ethiopia shall not be applicable on a con-dominium governed under this proclamation.

2) Any law, custom or practice shall not be applicableon matters dealt with under this proclamation.

ner~: fIP/.O'in:" 1.IL

~tJ ner"f: n";Jk1' ;JUll) ;J.:,.iJDhlDll)(H' iJi\:" "f..9"~44. Effective Date

fO'i ~1f'iA::This Proclamation shall enter into force on date of itspublication in the Negarit Gazeta.

Done at Addis Ababa, this 11thday of September, 2003.

ij~'

nJt{} nnf1 ~1~o~ 'k4>,} Bin?; t}.9U

..,CIP/ lDAf.1.f'C1.{}

fn..1'f'A'f t..Y..t.f\lf Jt iJDtllr flf ~T.nf\..tIT ~IL~'}:"

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERALDEMOCRATIC REPUBLIC OF ETHIOPIA