7Meaning of “exclusive land use entitlement”

7 Meaning of “exclusive land use entitlement”

7 Meaning of “exclusive land use entitlement”

(1) This section applies to an interest if the Chief Commissioner is satisfied—

(a) the interest gives the owner an exclusive right to occupy part of a building on land, and

(b) the interest is—

(i) shares or units in a relevant entity that owns or leases the land, or

(ii) a part ownership of the land if—

(A) ownership of the land is as tenants in common, and

(B) each part ownership gives an exclusive right to occupy a different part of the building on the land, and

(c) the interest is transferable, and

(d) the whole of the land is reasonably used in connection with the occupation of the building.

(2) The interest giving the exclusive right to occupy part of a building may be jointly owned.

(3) The owner of the interest is taken to be the owner of the part of the building that the owner is entitled to exclusively occupy because of the interest.

(4) The part of the building is taken to be a separate lot (the exclusive land use entitlement).

(5) An interest that gives an exclusive right to occupy part of a building only at certain times is not an interest to which this section applies.

(6) If there is more than 1 building on the land, this section applies to an exclusive right to occupy a whole building, but not all buildings, in the same way as it applies to part of a building.

(7) In this section—

relevant entity means a company or unit trust where all shares in the company or units in the trust—

(a) are distributed to persons, and

(b) give the persons a right to occupy parts of a building on land owned by the company or trust.