Condominium Act of Thailand (Chapter 1)

Thailand Condominium Act

Thailand Condominium Act

This is the Condominium Act of Thailand . The Condominium Act is one of the most important Acts when it comes to foreigners outside of the Civil and Commercial Code. The Condominium Act covers what the rules and regulations are for condo ownership in Thailand. This is a very rough translation of the Act and is done for comprehension purposes so that foreigners can understand and compare the Act to the rules in their home country.

This translation should not be seen as legally binding or used as legal advice or guidance. This text has been provided for educational and comprehension purposes and contains no legal authority. We will assume no responsibility for any liabilities arising from the use and/or reference of this text. Speak to us online or via WhatsApp or application Line for proper legal advice.

Chapter One

The first Chapter of the Condominium Act covers the requirements to register a condominium (building). This is to sell the apartments (condo units) to the public. There are several requirements when it comes to registration and once they are met. The condominium can then be noted in the Government Gazette as being officially registered. You can also appeal in writing if your registration has been denied. When you complete a due diligence on the property, looking at the building’s registration is going to be part of the property report. This is as the Act states that the advertising brochures have to reflect the sales agreement for the property under Chapter One.

Section 1

The first section of the Act states the name of the Act being the Condominium Act B.E. 2522

Section 2

This section tells you when the Act comes into force.

Section 3

This states that the Act supersedes all other rules and regulations that conflict with it.

Section 4                

This defines all the words used in the Act and their meanings. As an example, the word “apartment” is defined as “a separate part of a condominium that may be separately owned by an individual”. Whereas “Condominium” is defined as “the building where persons can hold ownership separately according to the section whereby each section consist of personal ownership in the property”

These are unofficial translations of the Acts, so speak to us before you buy property in Thailand. You will note the difference in meaning even though most would use the two words interchangeably. Some will call it a condo while others would call it an apartment. There is a difference in Thai law.

Section 5

This states that the Minister of the Interior will be in charge of enforcing the Act. The Minister has to appoint the officials as well as set the fees and issue regulations based on the Condominium Act. 

Section 6*

If an owner wants to register the condominium and land under the Act there are certain provisions. The seven provisions to register under the Condominium Act in Thailand is as follows:

1.) You will need to have the title deed;

2.) The blueprints of the condo showing the public roads and all the exits and entrances in the plan;

3.) The blueprint will also need to show the apartments as well as personal and common property. These are spaces such as passageways, reception, fire escape, elevator shafts which are all common property areas. 

4.) The percentage of common property which each owner holds under Section 14;

5.) The property needs to be shown as having no encumbrances, other than the mortgage bond over the building with the land. No other property liens would be allowed.

6.) The draft regulations of the condominium juristic person;

7.) Also any other proof as required in the Ministerial Regulations.

Section 6/1*

This covers the law that all advertisements (adverts, letters, and pictures) when selling the units have to be retained until such time that all the units have been sold. When all the units have been sold at least one copy of all the documents has to be given to the body corporate of the building to retain.

The advertising documents have to be similar to the documents submitted (Section 5) when the project was registered under the Condominium Act. It also has to show all the common property in the building outside of this which must be provided for under Section 15. 

The letters of induction or sales brochures are part of the sale of agreement or contract of sale. There should be no contradiction between the sales brochures and the contract of sale. If there is, then the buyer should be favored with the construction development.

Section 6/2**

The contract of sale has to be made in accordance with the form of the Agreement or Contract set forth by the Minister. If the sale of agreement is not advantageous to the party who is buying the unit then the agreement will not be enforceable.

Section 7

The section states that if you wish to register your building and land as condominiums under Section 6. If there is a mortgage bondholder or a creditor with a preferential right over the land and building. The government will publish the application for registration as well as send a letter to the creditor. They will need to appear before the officials within 30 with evidence of their preferential status. 

The government official will consider that the land is free of any liens or binding obligations. If there is a mortgage bond on the land and the mortgagee has given consent to register as a condominium, the official will accept the application. If however the building is under a mortgage and the land is not included then the application will be denied. The official will then need to state why the application has not been accepted. If the application is accepted then the registration will be published in the Government Gazette.

Section 8

This states that your application is subjected to the procedures under Section 7.

Section 9

When the application has been accepted. The official will forward the registration of the Condo under (Section 6) to the competent official of the Land Department. This should take less than 15 days to enter the title deed into the land registration. The land will now be subjected to the Condominium Act and retrain the title deed. 

When there is a mortgage bond where the consent has been registered. There will be a memorandum of the consent under (Section 7). This as well as the amount that the mortgagee will also receive from each apartment towards settling the debt under (Section 22).

Section 10

Once the condominium has been registered and the official had completed and filed the memorandum on the land title deed under (Section 9). Then it is prohibited to register any further rights and juristic acts against the condominium unless it is in accordance with the Condominium Act. Hence you cannot create obligations to the condominium. 

Section 11

This Section states that should the application to register the condominium fail. You can apply to the Minister of the Interior in writing within 30 days from knowing, to appeal the decision. 

 

 

See the other Chapters on the Condominium Act

 

Section 4 defines “general meeting”, was added by the Condominium Act (No. 4), B.E. 2551 (2008).
Section 4 defines “Committee”, was added by the Condominium Act (No. 4), B.E. 2551 (2008).
Section 4 defines “Committee member”, was added by the Condominium Act (No. 4), B.E. 2551 (2008).
Section 4 defines “manager”, was added by the Condominium Act (No. 4), B.E. 2551 (2008). 

* Section 6 is amended by the Condominium Act (No. 4), B.E. 2551 (2008).
* Section 6/1 is amended by the Condominium Act (No. 4), B.E. 2551 (2008)

** Section 6/2 is amended by the Condominium Act (No. 4), B.E. 2551 (2008)