Wednesday, October 3, 2007

Condominium Law Supported by AG Opinion

In an Attorney General's Opinion released this September, the Condominium exception to Article XII of the CNMI Constitution (Section 3), implemented by Public Law 15-49, was found to be constitutional. (Disclaimer: my husband participated in the drafting of the opinion). For those readers not intimately familiar with CNMI laws, Article XII limits land ownership to persons of Northern Marianas descent. Persons who are not of Northern Marianas descent may lease private lands for a maximum of 55 years. Public Law 15-49 implements the Condominum exception by more clearly breaking down the form of ownership into a unit, a common area, and a descent restricted estate, and more clearly defines the ownership rights of the parties. In a lengthy opinion which discussed the development of the law interpreting Article XII, the AG emphasized the fact that the Legislature was putting into effect the will of the people through the Article XII condominium exception. As a result, the AG found that a necessary easement was created running to condominium units which would preserve the perpetual nature of ownership in units above the first floor. With renewed corporate interest in the CNMI as a retirement and vacation destination for Asia, it is in the interest of the CNMI to clarify its condominium laws to provide a stable base for long term investment. However, while an AG's opinion is persuasive, the final interpretation will come from the Court if and when the issue is raised through litigation. Hopefully any uncertainty raised by this possibility will not negatively affect development.

No comments: