House Bill No. 8-19-1S, HD2, SD1 creates a statutory framework that will govern establishments of a condominium –type of edifice on the island.
The measure has earlier passed the House of Delegates and it was only yesterday when the Senate finally gave the nod to the new measure.
The new bill also establishes that developer use escrow funds for construction projects on the condominium.
“This bill will encourage development and investment in Palau because it creates a common framework for condominium declarations, leases and the developers and condominium associations’ power to administer condominiums.
The Senate Committee on Tourism Development endorsed the passage of the measure which will be good in highly populated area such as Koror.
The measure said vertical development such as condominiums will reduce the demand for land.
It also noted that apartment building owners can convert their apartments to condominiums.
The bill, according to the committee report will also support Palau’s economy by encouraging construction and foreign investment.
The measure also creates a condominium property right and establishes a process in which a developer declares that right; establishes law governing condominium associations; rights and remedies of owners and lessees; rights and obligations of condominium developers.
The framework will also govern the legal relationship between the condominium developer and unit owners.
The voluminous measure will create a “stable, predictable system for condominium ownership and management and will thus encourage the development of condominium in the Republic.”
The bill has been transmitted back to the House of Delegates for action.
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