Forming A Home Owner's Association For A Development

[eljeque]

I would like to form a homeowner's association and take control of the manitenance money which is paid to the developer by the homeowners. The development owner is not doing its job. Hiring an outside business office / lawyer to perform the accounting work is our plan.

Is anyone familar with this process or is it even normal here?

[torrenova]

In condos, you may start a management company and transfer of the lease to that management company would be the norm. You may also have the freehold. This would usually happen at a set date or upon the sale of the last unit. You, the shareholders in the company (i.e. the owners) they have the right to manage the building as you see fit, within certain stipulations of the original lease. If you are also the freeholders, then you could alter this head lease.

What tends to happen is that certain interests, with numerous votes (i.e. many properties) rig the system so that they can benefit directly or indirectly. You then have to get a majority of the other owners to schedule an EGM and get rid of the current directors. You can then take charge for the benefit of all.

This is how I know the system but I envisage slight variations on this theme being the norm.

As for houses, then I suspect the same applies. However, givent the direct freehold nature of houses, then the estate must also have a committee or company which contracts with the current suppliers of services. Usually, this would be set up by the developers and you, the owners, would get shares in the company as you bought the houses. Again, you may need an EGM to get rid of current directors who should step down when all units have been sold anyway. Current contracts may have to be honoured but you could now, force the directors to enter into no more contracts with any suppliers given the impending resignation if they are still directors of the management company.

Again, variation on the theme wil lbe the order of the day.

[PattayaParent]

The owners of the units in a condo have the right to set up a homeowners association when 50% of the units have been sold.

I don't think there's a need for the Association to form a company to run the building (at least my condo doesn't have such a company) but you do need to appoint a Juristic Person to manage the condo.

There's an explanation in the Condominium Act if you search for it on here.

[quiksilva]

PM me and I will put you in touch with the an expert in this field.

[okinasan]

PM me and I will put you in touch with the an expert in this field.

If I knew what"PM" was and how to do it, I certainly would, as we on this small Moo Baan certainly need expert advice on a similar issue.

okinasan

[quiksilva]

PM = private message, click my name and select send message.

[eljeque]

Thanks for the info.

[PattayaParent]

PM = private message, click my name and select send message.

Is it so secret or sensitive that it can't be posted in an open forum?

[Jomtien]

We are dealing with it currently, a very slow process.

When we started it we looked into 2 different setups (forgot those....)

Officially, the landlord has to sent a letter to every property, saying that he stops.

Than write up the Rules, and let the landdepartment approve it, togehter with the letter from the landlord. Every year Landdepartment will look into your accounting.

I have a set of rules also translated into English on CD rom. I can give you a copy, (but not free, as i paid for it myself to translate it.... roughly 30 pages, about construction, waste removal, monthly payments ect.....)

Most possible that landlord has a deposit at the landdepartment for constructing the village. That will be your initial startup capital. (the landlord can not claim it back)

PM me if you need more info.

Jomtien

[quiksilva]

PM = private message, click my name and select send message.

Is it so secret or sensitive that it can't be posted in an open forum?

No, but its valuable and I make a living out of selling advice. I provide some pointers here because I like to think that my posts may have helped some people, but there is of course a commercial angle to this too.

I make no secret of the fact that Im a real estate consultant. Setting up a home owners association correctly is not simple, there is alot more to it than meets the eye. Everything has to be considered.

Doing it well is worthwhile and can save you all sorts of headaches later on in the estates lifecycle.

So I can hardly ask a colleague who does this for a living to give away all of his expertise for free on the internet can I? But I can at least put you in touch with him.