Thailand Condominium Rights of Unit Owners

Thailand is not so different from other jurisdictions in handling condominium ownership rights. The governing law in the country is the recently amended Condominium Act No. 4 B.E. 2551 (2008). The law defines a condominium as the building that can be separated into units for individual ownership which include personal and common properties. Ownership of a condominium unit generally brings with it a number of rights composed mainly of the right to own a specific individual unit and the right to enjoy the use of a common space. This article aims to explain and clarify the various rights that are accorded to a unit owner in light of the new changes introduced by the amendatory law.

The rights and benefits given to condominium owners begin even before signing a purchase agreement. The new Condominium Act protects potential condominium buyers by mandating the developer and the condominium to keep a copy of all the advertisements used in the promotion of the sale of the units until all of such units have been sold. These advertisements are required to correspond with those filed with the Land Office upon the registration of the developer. More importantly, these advertisements are considered under the law as being part and parcel of any purchase agreement which may be entered into. In the event where a variance in the terms and conditions between those found in the advertisement and the sales contract exists, the contract shall be construed in favour of the buyer. This has discouraged the previous practice of using exaggerated and unwarranted advertisement claims which have led to consumer abuse and fraud.

Another important protection afforded to condominium buyers is the requirement to observe a standardized form for all purchase contracts as prescribed by the Ministry of the Interior.  Additionally, any deviation from the format provided by the Ministry that is not advantageous to the buyer shall be considered as unenforceable. This requirement aims to standardize and make uniform purchase contracts in order to avoid situations where essential stipulations have been left out of the agreement either accidentally or on purpose. In line with this, the law also requires a detailed account of the specific use for each area in the condominium building, specifically, the spaces, nature of the utilizations and other interests as may be prescribed by the Minister. Any potential buyer would therefore be within his or her rights to demand that any omitted stipulation covering these details be integrated into the contract.

Additionally, the law prescribes that any form of business done within the condominium building be situated in such a way that it would not disturb the peace and tranquillity of the other co-owners. Furthermore, an additional entrance is required to be kept separate for the exclusive use of these businesses.

As an added measure of protection, the duty of paying taxes, common service expenses, and common maintenance of unsold condominium units has now been delegated by the law unto the developer. This measure has been enacted in order to prevent the pernicious practice of expending a condominium’s maintenance fund in order to answer for expenses and fees incurred by unsold units. A condominium owner has the right therefore to resist any attempt on the part of the condominium to collect fees or resort to the maintenance fund in order to pay for these kinds of expenses.

Being an owner of a Thailand condominium unit does not entail a passive role in determining the affairs of the condominium. Ownership vests a certain amount of control measured in terms of shares or voting rights determined by the amount of space occupied by the unit owned. Any individual owner may use this power to determine condominium policy such as deciding issues involving an increase in the maintenance and sinking fees and also whether to levy additional emergency funds. Certain voting requirements may vary depending on the controversy to be decided.

Moreover, the Thailand Condominium Act lists the qualifications and duties a condominium manager must possess and observe. Given the amount of confidence and fidelity required by the position, the manager is held accountable for every action that he might perform. In the event that the manager has performed an act which may be considered as a breach of this trust, a condominium owner has the right to call for the appointment of a new manager. An additional recourse exists in the creation of an oversight committee made up of not more than nine (9) co-owners elected during a general meeting. Coincidentally, all the requirements for committee membership are also provided by the law.

Furthermore, a condominium owner has the legal right to demand that the condominium provide him with an updated account of its expenses. Under the law, it is the duty of the condominium to provide the owner with a copy of the condominium’s accounts detailing the expenses incurred for its upkeep within fifteen (15) days before the end of each month and post the same in a Bulletin Board within the same period.

Finally, the Condominium Act requires an annual General Meeting of co-owners where grievances and other concerns may be voiced out. The law recognizes the need for a venue wherein conflicts may be resolved and the opportunity for co-owners to have a say in condominium policy.

In conclusion, the Condominium Act was enacted with the view of addressing the common concerns of condominium owners with respect to their rights and to curb the abuses formerly encountered by potential buyers and owners alike. As a result, these individuals have been granted greater benefits and protection unlike anything what the law has accorded them before.

Comments are closed.

Name
Email

WordPress SEO fine-tune by Meta SEO Pack from Poradnik Webmastera