Sectional Properties Act 2020: Do I Need to Convert My Lease to Sectional Title?
You bought your apartment with a “long-term lease” back in 2015, and now you’re planning to sell. But wait—someone mentioned the Sectional Properties Act 2020, and now you’re wondering: Do I legally need to convert my lease to a “sectional title” before I can sell? The short answer: It depends. Let’s break it down.
The introduction of the Sectional Properties Act 2020 has created significant confusion among apartment owners across Kenya. If you own—or think you own—an apartment in a multi-unit development, understanding the difference between long-term leases and sectional titles is crucial for protecting your investment and ensuring smooth property transactions.
In this comprehensive guide, we’ll clarify what sectional title means, how it differs from your long-term lease, whether you need to convert, and what steps to take if conversion is necessary.
Understanding Apartment Ownership in Kenya: The Evolution
Before 2020, apartment ownership in Kenya was complicated and often legally ambiguous. Most apartment buyers received what was called a “long-term lease”—typically 99 years—carved out from the developer’s master title. This system, while functional, created several problems:
- No individual titles: You didn’t own a specific, independently registered unit
- Dependency on master title: Your ownership was tied to the developer’s larger title deed
- Limited rights: Common areas like lobbies, elevators, and parking weren’t clearly defined
- Financing challenges: Banks were hesitant to accept these leases as collateral
- Sale complications: Transferring ownership was cumbersome and uncertain
The Sectional Properties Act 2020 was enacted to solve these problems by introducing a modern framework for apartment ownership similar to what exists in countries like South Africa, Australia, and Singapore.
What Exactly is Sectional Title?
Sectional title (also called strata title or condominium ownership in other countries) is a system where a multi-unit building is divided into individually owned units, each with its own separate title deed registered at the Ministry of Lands.
đź“‹ Key Features of Sectional Title:
- Individual Title Deeds: Each apartment gets its own independent, registered title
- Unit Entitlement: Your percentage share in common property (lifts, corridors, gardens)
- Body Corporate: A legal entity formed by all unit owners to manage common areas
- Clear Rights & Obligations: Defined rules for maintenance, repairs, and shared costs
- Easier Transfers: Buying and selling becomes as straightforward as for standalone houses
Sectional Title vs. Long-Term Lease: What’s the Difference?
| Feature | Long-Term Lease (Pre-2020) | Sectional Title (Post-2020) |
|---|---|---|
| Title Deed | Sublease from master title | Independent registered title |
| Registration | Not individually registered | Registered at Ministry of Lands |
| Common Areas | Unclear ownership | Jointly owned by all unit owners |
| Management | Developer or informal arrangement | Body Corporate with legal mandate |
| Financing | Difficult to mortgage | Easily mortgageable |
| Resale | Complex transfer process | Standard property transfer |
The Critical Question: Can I Still Sell My Apartment with a Long-Term Lease?
Here’s where things get interesting—and where most apartment owners panic unnecessarily.
âś… Good News: You Can Still Sell
Your existing long-term lease remains valid and legally enforceable. The Sectional Properties Act 2020 does not automatically invalidate or cancel leases issued before its enactment. You can legally sell your apartment under the existing long-term lease arrangement.
However—and this is important—there are practical considerations that may make conversion to sectional title beneficial or even necessary:
When Conversion Becomes Necessary or Beneficial:
⚠️ Scenarios Where You Should Consider Converting:
- Developer Initiates Conversion: If your building’s developer decides to convert the entire property to sectional title, you’ll need to participate
- Buyer Demands It: Modern buyers increasingly prefer sectional titles due to clearer ownership rights and easier financing
- Refinancing Needs: Banks now strongly prefer—and sometimes require—sectional titles for mortgage approvals
- Legal Disputes: If there are ownership disputes or management issues, sectional title provides clearer legal framework
- Building Requires Major Repairs: Sectional title creates a body corporate with legal authority to collect funds and manage repairs
When You Don’t Need to Convert (Yet):
If your buyer is comfortable purchasing under the existing long-term lease, the building is well-managed, financing isn’t an issue, and there are no disputes, you can proceed with the sale as-is. Many transactions are still happening this way in 2024.
🚨 Important Legal Point:
While the Act doesn’t mandate immediate conversion of existing leases, there’s growing market pressure. Properties with sectional titles are commanding higher prices and selling faster because buyers perceive them as less risky. This trend will likely continue as the market matures under the new framework.
How to Convert Your Long-Term Lease to Sectional Title
If you’ve determined that conversion is necessary or beneficial, here’s the process:
Developer/Owner Initiative
The master title holder (usually the developer) must initiate the sectional title conversion. Individual unit owners cannot do this alone—it requires the cooperation of whoever holds the master title.
Sectional Plan Preparation
A licensed land surveyor prepares a detailed sectional plan showing each unit, common property, exclusive use areas, and unit entitlements. This plan must meet strict Ministry of Lands requirements.
Document Submission
The developer submits the sectional plan along with building plans, compliance certificates, and other required documents to the Ministry of Lands for approval.
Registration & Title Issuance
Once approved, the Ministry registers the sectional plan and issues individual title deeds to each unit owner. The body corporate is also formally registered at this stage.
Body Corporate Formation
All unit owners become members of the body corporate, which then holds its first meeting to elect management committee members and establish operational rules.
Timeline & Costs:
Timeline: The conversion process typically takes 6-12 months, depending on the complexity of the development and efficiency of the Ministry of Lands.
Costs: Expect to pay for surveyor fees (KES 500,000-2,000,000 for the entire building, divided among owners), legal fees, registration fees, and body corporate formation costs. Individual unit owners typically pay KES 50,000-200,000 depending on unit size and building complexity.
What Should You Do Right Now?
🎯 Your Action Plan:
- Review Your Documents: Understand exactly what type of ownership you have—is it a sublease, long-term lease, or already a sectional title?
- Check Building Status: Find out if your developer has initiated or plans to initiate sectional title conversion
- Consult a Conveyancing Lawyer: Get professional advice specific to your situation before listing your property for sale
- Gauge Buyer Expectations: Talk to real estate agents about what buyers in your area are demanding
- Consider Timing: If conversion is underway, it might be worth waiting for completion before selling to maximize your price
- Engage with Other Owners: If your building hasn’t converted, discuss it with neighbors—collective action may be needed
Frequently Asked Questions
The Bottom Line
You do not legally need to convert your long-term lease to sectional title to sell your apartment in 2025—your existing lease remains valid. However, practical market realities may make conversion highly beneficial or even necessary to attract serious buyers and secure competitive pricing.
The Kenyan real estate market is in transition. While both systems currently coexist, the trend is clearly moving toward sectional titles as the preferred ownership structure. Properties with sectional titles enjoy better marketability, easier financing, clearer legal protections, and typically higher values.
If you’re planning to sell, start by understanding your current ownership status, consulting with legal professionals, and assessing whether conversion makes financial sense for your specific situation. Don’t panic, but don’t ignore this issue either—informed decisions today will protect your investment tomorrow.
Need Expert Legal Guidance on Sectional Title?
Our property law specialists can review your ownership documents, advise on conversion requirements, and guide you through the entire process.
Schedule a Legal ConsultationDisclaimer: This article provides general information and should not be considered legal advice. Property law is complex and individual circumstances vary. Always consult with a qualified conveyancing lawyer or property law specialist before making decisions about your property ownership or transactions.