Thailand Condominium Act (Chapter 5)

Thailand Condominium Act (Chapter 5)

Thailand Condominium Act

CHAPTER V

 

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. We cover the Apartment Title Deed here so you may understand the concepts used within Thai law. Again this is a rough translation to make examples of how certain laws are implemented. This text has been provided for educational and comprehension purposes and contains no legal authority. We will not assume any responsibility for any liabilities arising from the use and/or reference of this text.

Section 31

To transfer property the buyer and seller have to agree to the sale and submit the application to transfer the property as well as to register the condominium juristic person. There will need to be evidence of the condominium regulations and evidence of the registration of the juristic person to the registrar. The registrar will now register the transfer together with the juristic person’s registration. The registration of the juristic person will be published in the government gazette. This Section however does not apply to the transfer of ownership of the unit after the registration of the condominium juristic person has already taken place.

Section 32

Section 32 is amended by the Condominium Act (No. 4), B.E. 2551 (2008).

The condominium regulations will contain information including but not limited to the following:

1.) The name of the juristic person which contains the phrase “condominium juristic person”;

2.) The objectives under Section 33;

3.) Also the location of the condominium juristic person in the condominium;

4.) The number of expenses incurred by the condominium juristic person, payable in advance by the co-owners;

5.) Management of the common property;

6.) The use of personal and common property;

7.) The ratio of the ownership in the common property of each co-owner that is consistent with the ratio requested at the time of registration;

8.) Also the ratio of expenses responsible by each co-owner under Section 18;

9.) Other information prescribed by the Ministerial Regulation.

If there is any amendment to the registered condominium regulation. Then this may only be done on a resolution passed by the general meeting of the co-owners. The manager then registers the amended condominium regulation with the registrar within thirty days from the date that the resolution is passed. If the amendment is not contrary to the law, the registrar will register this. 

Section 33

The condominium juristic person that has been registered under Section 31 is a juristic person. The objective of a condominium juristic person is that it has to maintain as well as manage the common property. This will be subject to the approval of the co-owners under this Act.

Section 34

If part of the building is expropriated under the law on expropriation. The owner of the unit no longer has a right to the common property after expropriation. In this case, the condominium juristic person will manage to have the owners of the other units jointly pay for the loss of common property of the expropriated unit based on the ratio of ownership. This payment will be similar to those under Section 18 of the Act which is:

Co-owners shall be jointly responsible for the expenses arising from the provision of common services involving tools, supplies….. and expenses arising from maintenance and operation of common property in proportion to the ownership in the common property of each co-owner under Section 14 or proportion of interest in each unit, as prescribed in the condominium regulation.

This is deemed preferential to the personal property of the owners whose units are not expropriated.

Section 35

The condominium juristic person as described will comprise of one manager which may be an individual or a juristic person. If it is a juristic person then it had to appoint an individual. 

Section 35/1

This section tells you the requirements needed of the individual who is appointed by the condominium juristic person to manage the property. 

  1. The person is not insolvent; Not an incompetent or quasi-incompetent person;
  2. Never been expelled, dismissed, or discharged from an official service on the grounds of dishonest performance of duties;
  3. Never having been imprisoned due to a final judgment, except for an offense committed through negligence or a petty offense;
  4. Never been removed from the management position due to dishonesty, misbehavior, or an immoral issue;
  5. Or owing payment required under Section 18 which means he is not in arrears with the building he is about to manage.

If the juristic person is in charge appoints someone, then the same rules as above will apply to them.

Section 35/2

The appointment of the manager will be by resolution at the general meeting as in Section 49. Then his/her employment must be registered the person employment within 30 days from the resolution date.

Section 35/3

This explains when the manager has to vacate the office

1.) When the manager dies or when the juristic person loses its status;

2.) The manager resigns;

3.) Termination of employment;

4.) The manager is missing a qualification is disqualified under Section 35(1);

5.) When there is non-compliance with a provision under this Act or the employment terms. Then removed under a resolution at a general meeting under Section 49;

6.) A resolution passed by co-owners at a general meeting.

Section 36

The powers and duties of the manager are defined. The manager will carry out the tasks in his/her capacity. This except where the condominium regulations or the resolution passed by a general meeting of the co-owners under section 49(2) requires a representative to complete the task. The main tasks are:

  1. Carrying on tasks with the objectives under Section 33; The legal tasks set out by the condominium regulations or resolutions for the general meetings;
  2. If there is an emergency the manager must take initiative as a reasonable person to ensure the security of the building;
  3. Maintain order in the building and arrange a security system;
  4. The manager also has to represent the condominium juristic person;
  5. Check income and expenses and post to notify owners within 15 days from the end of the last month. This for at least 15 days consecutively. 
  6. Ensure that payments from unit owners are collected under Section 18;
  7. Also, other duties as required in the Ministerial Regulation.

Section 37

This covers the setup of the juristic person. There has to be a Committee of the Condominium Juristic Person (body corporate in the West) which has at least3 members and a maximum of 9. They must be appointed by a resolution at the general meetings of co-owners. Each member serves 2 years. If someone leaves before the 2 years then another member is added. This new member-only serves for the remainder of the 2 years of the person he replaces. 

Once their two-year terms expire, they remain on until they are replaced by new members. If someone leaves after the 2-year term. That can be reappointed but not for more than 2 consecutive terms. The manager has to register the members within 30 days of appointment with a competent official.

Section 37/1

Committee members also need to fill certain requirements. 

  1. A unit owner or his or her spouse;
  2. The legal curator for an incompetent person, or guardian of a minor child who owns a unit;
  3. A single representative of a juristic person who owns a unit;
  4. If there are co-owners then only one person may be on the committee.

Section 37/2

The committee member may not be one of the following

  1. It can’t be a minor or incompetent person;
  2. One who was dismissed from a term by a resolution for corruption misbehavior or moral issues;
  3. Been expelled, dismissed, or discharged from an official service;
  4. Imprisoned, except for an offense committed through negligence or a petty offense;

Section 37/3

A committee member can leave the office where

1.) On death;

2.) With a resignation;

3.) Someone who fails under Section 37/1, or is under Section 37/2;

4.) By resolution from a general meeting under Section 44 for leaving office.

Section 37/4

The committee must elect a Chairman and a Vice-Chairman;

Section 37/5

The Chairman calls the committee meeting, or two members can call a committee meeting. The Chairman has to set the date to be within 7 days of having called for the meeting. 

Section 37/6

At the committee meeting at least half the members must be present. If the Chairman is not at the meeting then the Vice-Chairman will preside over the meeting. If neither of them is there the committee will elect one of the members to chair the meeting. Decisions are made by majority vote. If there is a tie then the Chairman will have an additional vote.

Section 38

The committee will have the following powers

1.) Control the management of the condominium juristic person;

2.) Appoint a member to be the manager if the post is vacant, or the manager is unable to perform his/her duties for more than 7 days;

3.) Arrange a committee meeting at least once every 6 months;

4.) Any other duties as described by the Ministerial Regulations.

Section 38/1

The condominium juristic person must prepare a statement of the financial position of the condominium. This must occur at least once every 12 months. This is the accounting period for the condominium juristic person. These must include and show assets, debts as well as income and expenses. This must be audited by an auditor and approved as the general meeting by the unit owners within 120 days from the last accounting period.

Section 38/2

The condominium juristic person has to prepare an annual report to the general meeting of the unit owners along with the statement of financial position. You will need to provide a copy to the unit owners at least seven days in advance of the meeting.

Section 38/3

You will need to keep copies of all the financial reports for at least 10 years. 

Section 39

The condominium juristic person may subrogate the unit owner’s right on all common property against a third party, or may also reclaim the property for the benefit of all the unit owners.

Section 40

The unit owners will pay the condominium juristic person:

1.) Expenses incurred by the condominium juristic person paid in advance;

2.) Capital expenses are done by regulation or by resolution of the general meeting;

3.) Also anything passed by resolution at the general meeting.

Section 41

The enforcement of debt made under Section 18 on a unit owner 

1.) The preferential right upon the expenses under paragraph one (taxes on the common property) of Section 18, deeming to be as preferential as the right under Section 259(1) of the Civil and Commercial Code, over any movable property in the unit;

2.) The preferential right upon the expenses under paragraph two (maintenance and services of the common property) of Section 18, deeming to be as preferential as the right under Section 273(1) of the Civil and Commercial Code, over the personal property of each unit owner.

 

The preferential right in (2), if the manager has a court order, it is deemed to be more preferential to a mortgage. That is very important that the mortgage over the unit takes second place in terms of being a preferential creditor. 

Section 42

The condominium manager must call a general meeting, the first one must be in six months from the date of registration of the condominium juristic person. This is the first ordinary general meeting to appoint the Committee and approve condominium regulations. Also, the manager registered under the application to register the condominium juristic person. If there is a disagreement then they can consider changing the rules or changing the manager. 

Section 42/1

The Committee must arrange an ordinary general meeting at least once a year. This within 120 days from the last accounting period of the condominium juristic person. 

1.) Review the financial position;

2.) Review the annual report;

3.) Appoint an auditor;

4.) Review all other issues.

Section 42/2

The following people can call an extra-ordinary meeting

1.) The manager;

2.) The committee by resolution if the majority called for the meeting;

3.) When at least 20% of unit owners called for the meeting. This has to be arranged within 15 days of the request. If this is not done then the unit owners can arrange the extra-ordinary meeting and appoint a person to send out the invitations.

Section 42/3

The meeting must have the invitations sent at least 7 days before the meeting in writing. This must state the place, date, and time of the meeting, as well as the agenda and the issues.

Section 43

The quorum of a general meeting must comprise attendees who can cast at least one-quarter of the total votes. If the quorum is not met then another meeting has to be called within 15 days. If the quorum is not reached again then the manager or spouse will not be the Chairman of the meeting. 

Section 44

The resolution has to be passed by majority vote unless this Act prescribes otherwise.

Section 45

Each unit owner votes according to their share of common property. If a unit owner owns more than 50% of the common space then the maximum the unit owner can vote on is a maximum of half of the other unit owners combined. 

Section 46

Should the condominium regulations require that certain unit owners pay for an expense specifically, such unit owners will have the right to vote in the resolution involving the expense. Each unit owner in this regulation will have the right to vote according to the ratio prescribed in the condominium regulation.

Section 47

You can have someone vote by proxy however this proxy cannot vote for more than 3 people at a meeting. The following people cannot be a proxy voter.

1.) Committee members and their spouse;

2.) The manager or his spouse;

3.) Any worker or employee of the condominium juristic person;

4.) Any worker or employee of the manager if the manager is a juristic person.

Section 48

The following issues will need a vote of more than 50% of the people for a resolution

1.) Buy or accept immovable property attached with an encumbrance to be part of common property;

2.) Selling or disposing of immovable common property;

3.) Also permitting a unit owner to decorate or renovate this unit that affects common property;

4.) When amending regulations that affect the common property;

5.) Also amending the ratio of joint expenses under Section 32(8);

6.) Construction which common property to change by attachment or improvement;

7.) Obtaining benefits out of the common property.

 If 50% of the unit owners don’t attend the meeting for the vote. Then another meeting needs to be called for within 15 days from that meeting. Then at the second calling of the meeting, you will need only 1/3 of the votes from all the unit owners. 

Section 49

The following requires ¼ of the unit owners to vote for it

1.) Appointing or removing a manager from office;

2.) Prescribing an undertaking that may be executed by a person authorized by the manager.

Section 50

If the condominium is partly damaged or entirely damaged and it involves more than 50% of the units then the unit owners (damaged and undamaged unit owners) can pass a resolution under Section 48 to reconstruct or repair the damaged part. The condominium juristic person will reconstruct or repair the damaged part.

If the condominium is partly damaged or less than 50% of the building. If the (majority of the owners of the damaged units) pass a resolution to reconstruct or repair then the condominium juristic person will complete this. 

The expenses incurred in the reconstruction of the damaged part of the building, for the common property every unit owner in the building will be responsible for the expenses according to the ratio of ownership in the common property. Expenses incurred in the reconstruction of personal property shall be borne by the owner of the damaged unit.

The reconstructed units were deemed a replacement for the previous unit. The previous Certificate of Common Ownership is deemed the Certificate of Common Ownership for the reconstructed unit. If the details in the Certificate of Common Ownership are not accurate given the reconstructed unit is different from the previous unit, a competent official shall have the power to correct these details.

If a resolution is passed to disapprove reconstruction or repairs then Section 34 will apply. The other unit owners will then compensate the unit owners with the damaged units for their share in the common property only. The Certificate of Common Ownership for his or her unit shall be revoked and returned to a competent official within thirty days from the date that he or she receives the compensation for the common property to record the revocation onto the Certificate of Common.