Thailand Condominium Act (Chapter 2)

Thailand Condominium Act

Thailand Condominium Act

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.

This Chapter of the Thailand Condominium Act covers the ownership of the apartments or what you would call condominium units. Most of this chapter deals with the property where the foreign and Thai ratios are covered. If you inherited property but the foreign ratio is already full then the government needs to be notified and you will need to sell the property within a year.

 

Chapter Two

 

This is not uncommon with mixed marriages. There are several examples below where it has been explained by example. This is a rough translation of the Thailand Condominium Act to explain the legal concepts only in Thai law. 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 of the Thailand Condominium Act.

Section 12

The apartment (condo unit) is indivisible.

Section 13

The owner of the apartment owns the unit as personal property, with joint ownership of the common property. If you divide the unit with a partition it is still legally a single unit and will be seen as joint ownership and must comply with the regulations. The owner of the property also may not commit any changes to the unit which will damage the structure of the building. This or its stability or damage to the building or any others described by the regulations. 

Section 14*

The ownership of common property in the building is divided by the ratio of the price of each apartment and the total price of all apartments at registration under (Section 6).

Section 15*

This section will describe what is seen as common property according to the Act.

  1. The land the building is built on; Land which is provided for mutual use by unit owners;
  2. The frame structure which provides for stability and damage prevention; (flood control)
  3. Parts of the building and equipment for mutual use; (swimming pool)
  4. Tools and machines for mutual benefit; (water pumps)
  5. Services and facilities of mutual use; (gym) 
  6. Other properties for mutual use; (parking lot)
  7. The offices of the building management;
  8. Immovable property under Section 48(1);
  9. Structures and systems such as the security system, water, sewerage treatment, etc.;
  10. Property with money used in Section 18 of the Act.
  11. Property maintained at the expense of the fund under Section 18***

Section 16

The common property which is immovable property cannot be attached for division to enforce a mortgage bond or sold at auction separately from personal property.

Section 17

The Sections covers the management and use of the common property

Section 17 (1) *

There is also the allowance of trade in a building. This is in that you cannot have a store at the entrance or exit where it will disturb the unit owners. You also cannot operate a shop where it has not been designated to be. 

Section 18 *

Owners of the units are jointly liable for rates and taxes as well as services for the building as calculated under Section 14.

Section 18(1) *

If the joint owners fail to pay for services then they will pay interest at the rate of 12% per year without compound interest. This or at the rate of any by-laws. If the arrears are longer than 6 months in arrears then the interest is calculated at a maximum of 20% per year. They may also suspend any services which you might have been receiving.

Section 19 *

Foreigners and juristic persons may hold ownership over property under the following conditions:

  1. Foreigners who have residence in Thailand in terms of immigration laws;
  2. Foreigners who entered Thailand under an investment law;
  3. Juristic persons registered under Section 97 and Section 98 of the Land Code;
  4. Juristic persons with a promotion certificate under the investment promotion laws and Section 4 of the Foreign Business Act;
  5. Foreigners or Juristic persons who have brought in foreign currency or withdrawn currency domestic or foreign from a Thai account. (Speak to us as to how this works in practice)

Section 19/2 (bis) *

Foreigners and corporates shall not own more than 49% of the units. 

Section 19/3 (ter) *

When a unit is sold to a corporate or a foreigner, then the government has to be informed of the change in ownership. This has to comply with (Section 19) of the Act. The owner will need to provide the following documents:

  1. The foreigner has to show evidence that he/she is permitted to reside in Thailand;
  2. Evidence has to be shown if the foreigner comes under an investment promotion law;
  3. If it is a juristic person, the registration of the juristic person needs to be shown;
  4. For the juristic person under (Section 19(4)) evidence of the promotion certificate;
  5. *The juristic person under (Section 19(5)) needs to show foreign currency brought in and withdrawn that is not less than the purchase price of the apartment. 

Section 19/4 (quarter) *

The Section states that the government will proceed with the registration of rights and juristic acts if all the requirements of the foreigner or juristic persons are met. This has been set out in Section 19 as well as under Chapter 4 of the Act while accepting the transfer.

Section 19/5 (quiquies) *

The foreigner or the juristic person as described in Section 19 will dispose of an apartment under certain circumstances.

  1. *This occurs where you inherited property and the ratio of foreign ownership is oversubscribed;
  2. Where your permission to stay in Thailand has been revoked or residency is no longer valid;
  3. *Also where the foreigner has been deported;
  4. Where the juristic person has not received permission from the Board of Investment to stay;
  5. Where the juristic person has had its promotion certificate revoked;

The foreigner or juristic person who is compelled to dispose of the apartment (1) must notify in writing the government within sixty days after the sale.

For the case of (1), only the apartments exceeding the designated proportion should be disposed of. For the case of (2), (3), (4), and (5), all the apartments owned shall be disposed of and will need to be sold within 1 year of the deportation or loss of residency, loss of permission under the BOI or loss of the promotion certificate.

Section 19/6 (sex)*

The government official shall notify the Director-General of the Land Department within sixty days from the date of issue of the order or the date of knowledge of the facts. This is regarding (Section 19/5) of the Act.

Section 19/7 (Septem)*

This again covers Section 19/5 (1) where a foreigner inherits an apartment and has 60 days to notify the government. Then sell the property within 1 year as the foreign property ratio is oversubscribed. 

Section 19/8 (octo)*

The section covers the process for a Thai person who has lost their Thai nationality. They will now also fall under the civil process as a foreigner. The person will need to notify the government officials within 60 days of his loss of Thai citizenship and his inability to hold onto the property. He will then need to sell his property within 1 year.

Section 19/9 (novem)*

Much like Section 19/8 above where a Thai national loses his Thai nationality. The apartment he bought as a Thai, now falls under the foreign ratio where only 49% is allowed. He will have 180 days to notify the government of his loss of nationality and prove that he meets the requirements as a foreigner. In this case, he would have 1 year to sell the property if there is no space in the foreign quota of the building. 

Section 19/10 (Decem)*

This is where a juristic person which had Thai nationality losses it and becomes a foreigner. You will then have 60 days to notify the government of the change and your inability to hold the property legally. You will then have to sell the property within 1 year.

Section 19/11 (undecim)*

This is where a juristic person which had Thai nationality losses it. You will have 180 days from the date of the change to notify the government of the change and provide evidence that it qualifies as a foreigner. If the juristic person does not want to hold onto the apartment then they have 60 days to report the change in status to the government and 1 year to sell the apartment.

Section 19 duodecies. (Repealed)*

 

Section 19 ter decies. (Repealed)*

 

See the other Chapters on the Condominium Act

 

Section 14 is amended by the Condominium Act (No. 4), B.E. 2551 (2008)

Section 15 (8) is added by the Condominium Act (No. 4), B.E. 2551 (2008)
Section 15 (9) is added by the Condominium Act (No. 4), B.E. 2551 (2008)
Section 15 (10) is added by the Condominium Act (No. 4), B.E. 2551 (2008)

Section 15 (11) is added by the Condominium Act (No. 4), B.E. 2551 (2008)

Section 17 (1) is added by the Condominium Act (No. 4), B.E. 2551 (2008).
Section 18 is amended by the Condominium Act (No. 4), B.E. 2551 (2008).
Section 18/1 is added by the Condominium Act (No. 4), B.E. 2551 (2008).

Section 19 is amended by the Condominium Act (No. 2), B.E. 2534 (1991).
Section 19 (5) is amended by the Condominium Act (No. 3), B.E. 2542 (1999).
Section 19 bis is amended by the Condominium Act (No. 4), B.E. 2551 (2008).

Section 19 ter is added by the Condominium Act (No. 2), B.E. 2534 (1991)
Section 19 ter (5) is amended by the Condominium Act (No. 3), B.E. 2542 (1999)
Section 19 quarter is amended by the Condominium Act (No. 4), B.E. 2551 (2008)
Section 19 quiqies is added by the Condominium Act (No. 2), B.E. 2534 (1991)

Section 19 quiqies (1) is amended by the Condominium Act (No. 4), B.E. 2551 (2008)
Section 19 sexies is added by the Condominium Act (No. 2), B.E. 2534 (1991)

Section 19 septies is added by the Condominium Act (No. 2), B.E. 2534 (1991)
Section 19 octies is added by the Condominium Act (No. 2), B.E. 2534 (1991)
Section 19 novies is added by the Condominium Act (No. 2), B.E. 2534 (1991)

Paragraph one of section 19 novies is amended by the Condominium Act (No. 4), B.E.2551 (2008)
Section 19 decies is added by the Condominium Act (No. 2), B.E. 2534 (1991)
Section 19 undecies is amended by the Condominium Act (No. 2), B.E. 2534 (1991)

Section 19 duodecies is repealed by the Condominium Act (No. 4), B.E. 2551 (2008)
Section 19 ter decies is repealed by the Condominium Act (No. 4), B.E. 2551 (2008)