Thai Condominium Act Amended

[Thai at Heart]

Anyone seriously considering purchasing leasehold for a condo should think again.

For developers the big bucks are to be made from their estate property management subsidiaries, which in the long term is more lucrative than the actual selling of the units. Residential and commercial Estate property management is big business.

Many of these companies are run and owned by foreigners. I can remember one event that happened 20 years ago. An American and a Japanese man both were partners as developers and estate mangement directors for a block of condos in Phuket. There was a dispute between them and the Japanese partner took out a contract killing of the American.

Once in, the business becomes the old boys network. They collect the service changes gaining huge profits under the guise of administrative and professional fees, which forms as part of the service charge. The company directors is paid commissions from insurance companies, contractors and gardening companies for being chosen to complete any works or to block insure the estate, plus they often use their own contractors working for companies specially created by the Management company that have a ready made clientele (the residents).

The Management company according to the terms & conditions imposed by most leases can serve lump sum extra payment demands for any amounts to residents for repairs or refurbishing that they claim is necessary and essential work. The company directors and their workers usually give themselves annual inflationary or above cost of service increases that is obtained from yearly increases in service charges to lease holders.

For those who purchase a condo for investment purposes and are renting out their unit to tenants, may be contravening the terms of the lease and some clauses in the block insurance policy, meaning that in the event of a fire or disaster damaging or destroying the unit, may not be able to claim with the insurers and the management company.

I personally would rather take my chances in Thailand purchasing real estate in my wife`s name rather than find myself lumbered with a property trapped under the imperium of an estate management company.

Then investing in condos really must be a bad risk, if the better option is to invest outside your own name.

[distortedlink]

Anyone seriously considering purchasing leasehold for a condo should think again.

For developers the big bucks are to be made from their estate property management subsidiaries, which in the long term is more lucrative than the actual selling of the units. Residential and commercial Estate property management is big business.

Many of these companies are run and owned by foreigners. I can remember one event that happened 20 years ago. An American and a Japanese man both were partners as developers and estate mangement directors for a block of condos in Phuket. There was a dispute between them and the Japanese partner took out a contract killing of the American.

Once in, the business becomes the old boys network. They collect the service changes gaining huge profits under the guise of administrative and professional fees, which forms as part of the service charge. The company directors is paid commissions from insurance companies, contractors and gardening companies for being chosen to complete any works or to block insure the estate, plus they often use their own contractors working for companies specially created by the Management company that have a ready made clientele (the residents).

The Management company according to the terms & conditions imposed by most leases can serve lump sum extra payment demands for any amounts to residents for repairs or refurbishing that they claim is necessary and essential work. The company directors and their workers usually give themselves annual inflationary or above cost of service increases that is obtained from yearly increases in service charges to lease holders.

For those who purchase a condo for investment purposes and are renting out their unit to tenants, may be contravening the terms of the lease and some clauses in the block insurance policy, meaning that in the event of a fire or disaster damaging or destroying the unit, may not be able to claim with the insurers and the management company.

I personally would rather take my chances in Thailand purchasing real estate in my wife`s name rather than find myself lumbered with a property trapped under the imperium of an estate management company.

Then investing in condos really must be a bad risk, if the better option is to invest outside your own name.

It`s a choice between the devil and the deep blue sea. I opted for paying for real estate using my wife`s name, everyones views and situations are different.

I`m just giving informative information to those who may not be experienced with buying real estate in Thailand. I ran 2 estate management companies back in the UK for 20 years and know the system.

I choose to avoid estate management controled real estate for reasons given above, because I personally believe for me, using my wife`s name is the best option.

Edited March 27, 2008 by distortedlink

[tiger50]

Look its this simple whatever people try to tell ya Thailand is still third world and is moving backwards! its 500 yrs behind the rest of europe and as long as the idiots maintain this stupid face thing about not wanting to give up the land here it will remain so.

my advice to anyone who wants to move to los is to rent not buy till the morons who try and run the country finally scratch their tiny brains and realise people who invest in something want something for their hard earned cash.

without Farangs the Thais would still be in mud huts fact, you only have to go into a real Thai village to see how backward the place really is.

its all about perception and face and in the glossy mags on the face of it, all looks great untill you get here and get to know the real animal.

i agree with all your above comments, living in the so called "los" for 4 years...but i am buying condos to rent, its a gamble i know. i would advice people to rent in thailand, and buy property elswhere.

[Wonderboy]

Anyone seriously considering purchasing leasehold for a condo should think again.

For developers the big bucks are to be made from their estate property management subsidiaries, which in the long term is more lucrative than the actual selling of the units. Residential and commercial Estate property management is big business.

.....

This is interesting stuff. I bought a condominium off-plan, and the monthly fee will be around 6000B/month for around 130 sqm. Will keep this post in mind when the expenses are discussed at co-owner meetings. Dealing with the managment this far have been a real headache. Already the project is a year behind schedule, and all we have received are two (2) short e-mails. No kidding. In 3 a years building process I have received two e-mails. I am not two worried, it will be finished, but I guess it is a sign of what to come. Hope I will not have to deal with managment much....

[wanderluster]

does anyone know if there is anything in the new "laws", that deal with delays. is there any compensation for 1 yr or longer delays than when promised. Quite a usual thing for thailand.

[thailand_tom]

the way the balt keeps getting stronger..and only due to the chinese yuan..i really don't need to go there anymore..things will never change there..and there are plenty of bar girls in other countries..and cheaper..

[geriatrickid]

Posts and associateed comments merely reinforce that I was lucky not to buy. I am not a full time resident and I like the fact that I can up and leave anytime and am not tied down to a property where I'm viewed as a cash cow.

[Tammi]

Anyone seriously considering purchasing leasehold for a condo should think again.

For developers the big bucks are to be made from their estate property management subsidiaries, which in the long term is more lucrative than the actual selling of the units. Residential and commercial Estate property management is big business.

.....

This is interesting stuff. I bought a condominium off-plan, and the monthly fee will be around 6000B/month for around 130 sqm. Will keep this post in mind when the expenses are discussed at co-owner meetings. Dealing with the managment this far have been a real headache. Already the project is a year behind schedule, and all we have received are two (2) short e-mails. No kidding. In 3 a years building process I have received two e-mails. I am not two worried, it will be finished, but I guess it is a sign of what to come. Hope I will not have to deal with managment much....

You should be prepared to keep an eagle eye on management because if you don't you could end up with a very rundown condo after a few years.

You will be fine so long as you educate yourself on the The Condominium Act and the Regulations of your Juristic Person which Regulations have to follow the laws laid down in the Act . If the Act says a quorum at a General Meeting is 1/3 of the votes then that is what it is - not 1/2, not 1/4 or any other number.

Resolutions made by the co-owners have to be incorporated into the Regulations which are registered at the Land Office. You have to watch that self interested people do not put things into or omit things from the Regulations to suit themselves. I would advise meeting as many of your fellow co-owners as possible and plan how to entice co-owners to attend the AGMs. Also, when the co-owners elect the necessary committee from a panel of co-owners make sure that the committee members are open to giving say 30 minutes of time speaking with and discussing things with the other co-owners at the Committee Meetings which most condos hold every 2 months. The Act, Section 37 says that the Committee supervises the management of the Condominium Juristic Person that, under Section 33 of the Act, "has the objective to manage and maintain the common property and is empowered to undertake any act that benefits the said objective in accordance with resolutions of the co-owners under the stipulations of this Act." The Committee cannot take any duty unto itself until that duty has been discussed and voted on by the co-owners.

Your condo fee is quite high - must be a nice place. I would advise getting a professional management company such as CBRE to run the condo. Good luck!

[makri]

Nice to see they're working hard to make things easier for us...

[MaiChai]

Buying a condominium in Thailand is a nightmare; in my opinion to be avoided at all costs. If you do buy chances are you end up with nothing in 20/30 years time. If you can't own it don't buy it. If you buy a condo, what are you really buying? Too many risks and unanswered questions. If you are a European better to buy somewhere in the EU; at least you then have some rights. Better to rent and keep your money in the bank. I hear Cambodia is very much up coming now

Edited March 31, 2008 by MaiChai

[sbkk]

Dear Aikido

Just out of interest, in what part of Thailand have you seen mud huts? I ask because in all my travels here I have not seen any (other than those at the Evason).

Regards

Look its this simple whatever people try to tell ya Thailand is still third world and is moving backwards! its 500 yrs behind the rest of europe and as long as the idiots maintain this stupid face thing about not wanting to give up the land here it will remain so.

my advice to anyone who wants to move to los is to rent not buy till the morons who try and run the country finally scratch their tiny brains and realise people who invest in something want something for their hard earned cash.

without Farangs the Thais would still be in mud huts fact, you only have to go into a real Thai village to see how backward the place really is.

its all about perception and face and in the glossy mags on the face of it, all looks great untill you get here and get to know the real animal.

[Tammi]

Buying a condominium in Thailand is a nightmare; in my opinion to be avoided at all costs. If you do buy chances are you end up with nothing in 20/30 years time. If you can't own it don't buy it. If you buy a condo, what are you really buying? Too many risks and unanswered questions. If you are a European better to buy somewhere in the EU; at least you then have some rights. Better to rent and keep your money in the bank. I hear Cambodia is very much up coming now

I bought a condo more than 20 years ago and its still beautiful. We do go thro patches where we have dishonest and/or lazy, untrainable staff but if even a few of the co-owners are willing to see that management does its job and that the committee supervises the management then the co-owners can have a pleasant, clean, well run building. Of course it is a bonus if the co-owners will ALL take an active interest, attend the AGMs, help keep the committee and the Juristic Person Manager on paths as laid down by The Condominium Act.

[john b good]

From todays Bangkok Post......

Prinsiri admits wrongdoing

Built condos without construction permits

KANANA KATHARANGSIPORN

The listed developer Prinsiri Plc (PRIN) admitted that it illegally started construction on The Pulse Phahon Yothin 37 condominium as it did not have the proper construction permits.

The Bangkok Metropolitan Administration forced the company to stop construction. Now Prinsiri says it will belatedly follow the law and wait for the proper permits to be approved.

''We admitted we were wrong as we didn't have construction permits before starting construction,'' Pornprom Vongpivat, the company's vice-president for finance, said yesterday.

The 636-million-baht Pulse Phahon Yothin 37 is designed to have two buildings with a total of 308 units. Construction on Tower A was 40% complete, while Tower B was 80% complete. Construction on both has been stopped.

''Like other condominium developers, we asked for construction approval via Article 39 of the Building Control Act by submitting the plan of both buildings with fewer than 79 units, and we would correct the design later,'' he said.

Prinsiri could not seek permits via Article 39 for both buildings together as they would be located on the same plot and developed by one firm. As such, it started building Tower B first while waiting for environmental impact assessment (EIA) approval.

At the same time, it submitted an EIA for Tower A before seeking a construction permit. However, it had to adjust the EIA report three times after waiting for six months, and it still hasn't been approved.

''On the last submission, our management expected to obtain EIA approval and the company would have transferred units to customers as promised in May this year. So we started the construction of Tower A.''

Although Prinsiri did not receive EIA approval for Tower A, it refused to stop building until the Bangkok Metropolitan Authority (BMA) ordered it to stop building both towers. Tower A had no permit while Tower B was constructed with an incorrect plan.

He said the BMA gave the company a chance to obtain a legal construction permit.

The company needed to submit a Khor. 1 under Article 21 for retroactive construction approval, but would have to pay a fine of about three million baht for building without a permit.

At the same time, the company would refund down payments, including compensation of 7.1% interest per year, for any customers who wanted to return units. To date, only 10 of 300 units were returned, said Mr Pornprom.

He said the company was clearing all its problems and was expected to finalise the buildings within this month.

''From now on, we will definitely wait for the EIA approvals before starting construction of new projects.''

Prinsiri has launched three new condominiums in 2008: a 422-million-baht project in Pattaya Sai 2 with 280 units; a 1.4-billion-baht project in the Rat Burana area of Bangkok with 555 units; and an 885-million-baht, 312-unit building on Si Ayutthaya Road.

Another four condos planned for 2009 will be located in the Taksin and Pin Klao areas, Pattaya Na Klua and on Kampaeng Petch Road.

Prinsiri will also open sales of four projects: in the Samakkee area with 325 units worth 954 million baht; Bang Bon with 160 units worth 796 million baht; Vacharapol with 560 units worth 1.69 billion baht; and Krungthep Kreeta with 535 units worth 1.2 billion baht.

Mr Pornprom also said the company cancelled a new share offering worth 335 million baht at one baht apiece. Instead it will offer one warrants for every three shares held by existing shareholders to compensate for a lower dividend payment for 2007.

Shares of Prinsiri (PRIN) closed on the Stock Exchange of Thailand at 2.88 baht yesterday, down six satang, in trade worth 670,000 baht.

Therefore the simplest rule to avoid any heartaches in the future is that you should never trust a Thai in any business dealing. And if you buy a condo and think that the management committee is gonna loo out for your interest 'dream on'

The management committee will be "loaded" with or by Thais. You ain't never going to get a shake shake.

You have managers (condo managers) on the take, staff from cleaners, accountants, electricians etc., etc., all running their own scams.

They run all sorts of dodgy deals with outside service providers (accountants, lawyers, elevator maintenance, pest control etc)

You're going to be told what they want you to know, what they will allow you to know.

The above example from the Bangkok Post is the norm not an exception.

"caveat emptor"

[Tammi]

From todays Bangkok Post......

Prinsiri admits wrongdoing

Built condos without construction permits

KANANA KATHARANGSIPORN

The listed developer Prinsiri Plc (PRIN) admitted that it illegally started construction on The Pulse Phahon Yothin 37 condominium as it did not have the proper construction permits.

The Bangkok Metropolitan Administration forced the company to stop construction. Now Prinsiri says it will belatedly follow the law and wait for the proper permits to be approved.

''We admitted we were wrong as we didn't have construction permits before starting construction,'' Pornprom Vongpivat, the company's vice-president for finance, said yesterday.

The 636-million-baht Pulse Phahon Yothin 37 is designed to have two buildings with a total of 308 units. Construction on Tower A was 40% complete, while Tower B was 80% complete. Construction on both has been stopped.

''Like other condominium developers, we asked for construction approval via Article 39 of the Building Control Act by submitting the plan of both buildings with fewer than 79 units, and we would correct the design later,'' he said.

Prinsiri could not seek permits via Article 39 for both buildings together as they would be located on the same plot and developed by one firm. As such, it started building Tower B first while waiting for environmental impact assessment (EIA) approval.

At the same time, it submitted an EIA for Tower A before seeking a construction permit. However, it had to adjust the EIA report three times after waiting for six months, and it still hasn't been approved.

''On the last submission, our management expected to obtain EIA approval and the company would have transferred units to customers as promised in May this year. So we started the construction of Tower A.''

Although Prinsiri did not receive EIA approval for Tower A, it refused to stop building until the Bangkok Metropolitan Authority (BMA) ordered it to stop building both towers. Tower A had no permit while Tower B was constructed with an incorrect plan.

He said the BMA gave the company a chance to obtain a legal construction permit.

The company needed to submit a Khor. 1 under Article 21 for retroactive construction approval, but would have to pay a fine of about three million baht for building without a permit.

At the same time, the company would refund down payments, including compensation of 7.1% interest per year, for any customers who wanted to return units. To date, only 10 of 300 units were returned, said Mr Pornprom.

He said the company was clearing all its problems and was expected to finalise the buildings within this month.

''From now on, we will definitely wait for the EIA approvals before starting construction of new projects.''

Prinsiri has launched three new condominiums in 2008: a 422-million-baht project in Pattaya Sai 2 with 280 units; a 1.4-billion-baht project in the Rat Burana area of Bangkok with 555 units; and an 885-million-baht, 312-unit building on Si Ayutthaya Road.

Another four condos planned for 2009 will be located in the Taksin and Pin Klao areas, Pattaya Na Klua and on Kampaeng Petch Road.

Prinsiri will also open sales of four projects: in the Samakkee area with 325 units worth 954 million baht; Bang Bon with 160 units worth 796 million baht; Vacharapol with 560 units worth 1.69 billion baht; and Krungthep Kreeta with 535 units worth 1.2 billion baht.

Mr Pornprom also said the company cancelled a new share offering worth 335 million baht at one baht apiece. Instead it will offer one warrants for every three shares held by existing shareholders to compensate for a lower dividend payment for 2007.

Shares of Prinsiri (PRIN) closed on the Stock Exchange of Thailand at 2.88 baht yesterday, down six satang, in trade worth 670,000 baht.

Therefore the simplest rule to avoid any heartaches in the future is that you should never trust a Thai in any business dealing. And if you buy a condo and think that the management committee is gonna loo out for your interest 'dream on'

The management committee will be "loaded" with or by Thais. You ain't never going to get a shake shake.

You have managers (condo managers) on the take, staff from cleaners, accountants, electricians etc., etc., all running their own scams.

They run all sorts of dodgy deals with outside service providers (accountants, lawyers, elevator maintenance, pest control etc)

You're going to be told what they want you to know, what they will allow you to know.

The above example from the Bangkok Post is the norm not an exception.

"caveat emptor"

Condo co-owners must always remember that the condo is a co-operative.

The co-owners have to be interested in seeing that the management follows the Laws.

There have been court cases where co-owners have got rid of dishonest management.

The so-called management committee is elected by the co-owners to supervise the Juristic Person Manager.

The committee by itself cannot decide how the condo is to be run - those decisions are decided by the co-owners and voted on as per the Law. Some decisions need 50% and some 75%. For all other decisions a quorum of 1/3 of the votes must be present plus proxies.

It has been my experience that wherever I was in the world that staff would take advantage of slack management and look for every way to then be dishonest - from stealing office and cleaning supplies, to sloping off, to taking bribes from contractors. The co-owners of a condo must be actively interested and not allow bad management and dishonesty.

Accounting records are common property and are open for inspection by any co-owner. Good condos put financial statements on the notice board every month end.

None of the bad things john b good mentions above are possible if the co-owners are actively interested and demand their rights under the Law.

[Tammi]

And further to john b good's post above: I know of committees where foreigners were in the majority and cheated and lied. My own experience has been that my Thai co-owners are much, much nicer than many of the foreign owners

[quiksilva]

For developers the big bucks are to be made from their estate property management subsidiaries, which in the long term is more lucrative than the actual selling of the units. Residential and commercial Estate property management is big business.

As anyone in the industry will tell you property management and big bucks do not belong in the same sentence!! :D :D

[thaigene2]

I think that they can change the condo laws as much as they like, but thye real issue is being allowed to access that condo at any time. I would not like to think that i had invested in a condo in Thailand but was unable to get the correct visa so that i could access the condo for 12 months of the year. I am married to a Thai but i still worry about the changes in the visa laws. ie. will i get the next visa?

Cheers, Rick

You and me both Rick.

[john b good]

And even more on the cono theme.......

From this mornings Bangkok Post

""CITY

Condo parking lot ban sought in bid to ease traffic

SUPOJ WANCHAROEN KANANA KATHARANGSIPORN

The Bangkok Metropolitan Administration (BMA) is proposing to ban parking lots in condominiums along the routes of the electric train and Bus Rapid Transit (BRT) systems to encourage the property residents to use mass transit facilities. The request will soon be proposed to the Department of Public Works and Town and Country Planning to consider and enforce, said deputy Bangkok governor Panich Vikitsreth.

The proposed ban is expected to encourage condo residents in central Bangkok to make more use of mass transit systems and therefore help reduce traffic along electric train and BRT routes, said Mr Panich who supervises a project to relieve traffic congestion in Bangkok.

The ban will also bring down the prices of condo units in central Bangkok as developers would not have to invest in building parking lots, he said.

BMA will also ask office buildings that still need parking space for visitors to reduce the size of their parking lots.

Atip Bijanonda, deputy managing director of Stock Exchange of Thailand-listed developer Supalai Plc said the parking lot ban would benefit the real estate industry.

Echoing Mr Panich, he said residents of condos without parking lots would be forced to use existing mass transit system, resulting in lighter traffic in their neighbourhoods.

Also, developers would have more saleable space which would lead to declines in costs and in unit prices, he said. However, the extent of the price drops would depend on the location. Price declines on Sukhumvit would be lower than on Ratchadapisek.

With the absence of parking lots in condo buildings, developers would get their environmental impact assessment approvals more easily too, said Mr Atip.

The no-parking lot policy has been applied in other countries as well such as Japan and Hong Kong, he added.

He suggested the requirement should be extended to cover condo projects developed in a radius of one kilometre from the stations, not just 500 metres.

Beside the parking lot ban, to be fair in terms of public utilities taxation, Mr Panich will propose that the BMA collect higher public utility taxes from residents living in central city areas where public utilities are better developed, particularly neighbourhoods along the electric train and BRT routes where business profitability is higher than in suburban areas.""

So now they are gonna ban car parking. If there was a Nobel Prize for idiots these guys would be runaway contenders

[quiksilva]

Well look at it this way, at least it will add value to older buildings with car parks. Furthermore there is likely to be a lot fewer new condo developments within 1km of a BTS station now too.

I mean its all very well having more sellable space, but how are they going to sell condo units without car parking spaces?

[Tammi]

Developers can put car parking underground?

[thaigene2]

Well look at it this way, at least it will add value to older buildings with car parks. Furthermore there is likely to be a lot fewer new condo developments within 1km of a BTS station now too.

I mean its all very well having more sellable space, but how are they going to sell condo units without car parking spaces?

You know, when I read this news report in the newspaper at breakfast - the coffee nearly snorted out my nose. It's classic Thailand isn't it?

But then I read the story about Plus Properties being required to knock down the top few floors of ELEVEN OF THEIR NEW CONDO PROJECTS -- Many already built!

What a funny place - I mean really.

Edited April 3, 2008 by thaigene2

[cclub75]

You know, when I read this news report in the newspaper at breakfast - the coffee nearly snorted out my nose. It's classic Thailand isn't it?

But then I read the story about Plus Properties being required to knock down the top few floors of ELEVEN OF THEIR NEW CONDO PROJECTS -- Many already built!

What a funny place - I mean really.

You forgot :

"The listed developer Prinsiri Plc (PRIN) admitted that it illegally started construction on The Pulse Phahon Yothin 37 condominium as it did not have the proper construction permits.

''We admitted we were wrong as we didn't have construction permits before starting construction,'' Pornprom Vongpivat, the company's vice-president for finance, said yesterday.

The 636-million-baht Pulse Phahon Yothin 37 is designed to have two buildings with a total of 308 units. Construction on Tower A was 40% complete, while Tower B was 80% complete. Construction on both has been stopped. " !!

(source Bangkok Post)

Edited April 3, 2008 by cclub75

[thaigene2]

You know, when I read this news report in the newspaper at breakfast - the coffee nearly snorted out my nose. It's classic Thailand isn't it?

But then I read the story about Plus Properties being required to knock down the top few floors of ELEVEN OF THEIR NEW CONDO PROJECTS -- Many already built!

What a funny place - I mean really.

You forgot :

"The listed developer Prinsiri Plc (PRIN) admitted that it illegally started construction on The Pulse Phahon Yothin 37 condominium as it did not have the proper construction permits.

''We admitted we were wrong as we didn't have construction permits before starting construction,'' Pornprom Vongpivat, the company's vice-president for finance, said yesterday.

The 636-million-baht Pulse Phahon Yothin 37 is designed to have two buildings with a total of 308 units. Construction on Tower A was 40% complete, while Tower B was 80% complete. Construction on both has been stopped. " !!

(source Bangkok Post)

Nurse to Doctor: "Doctor I don't feel a pulse, what should I do?"

Doctor to Nurse: "Just pretend there is a pulse, maybe we can fool the coroner!"

[Tammi]

Well look at it this way, at least it will add value to older buildings with car parks. Furthermore there is likely to be a lot fewer new condo developments within 1km of a BTS station now too.

I mean its all very well having more sellable space, but how are they going to sell condo units without car parking spaces?

You know, when I read this news report in the newspaper at breakfast - the coffee nearly snorted out my nose. It's classic Thailand isn't it?

But then I read the story about Plus Properties being required to knock down the top few floors of ELEVEN OF THEIR NEW CONDO PROJECTS -- Many already built!

What a funny place - I mean really.

PLease can you tell me where you read this - I would very much like to know about this.

[john b good]

Well look at it this way, at least it will add value to older buildings with car parks. Furthermore there is likely to be a lot fewer new condo developments within 1km of a BTS station now too.

I mean its all very well having more sellable space, but how are they going to sell condo units without car parking spaces?

You know, when I read this news report in the newspaper at breakfast - the coffee nearly snorted out my nose. It's classic Thailand isn't it?

But then I read the story about Plus Properties being required to knock down the top few floors of ELEVEN OF THEIR NEW CONDO PROJECTS -- Many already built!

What a funny place - I mean really.

PLease can you tell me where you read this - I would very much like to know about this.

It was in yesterdays Bangkok Post.

[A_Traveller]

In the way of the Post a probably temporary link to the above in the Business section second lead story

Regards

Edited April 4, 2008 by A_Traveller

[mikejphuket]

I have had a look through many of the posts and can't find the answer to what should be fairly straight forward: is a person who has a 30+30 year lease on a condominium unit considered to be a "Co-owner" with voting rights at the AGM?

Thanks for any insight.

My understanding is that the the updates to the Condominium Act B.E. 2522 {1979} proposed are designed to alleviate difficulties involved with the enforcement and implementation of the existing Act, and additional measures to protect condominium unit buyers are also being introduced.

The significant amendments are:-

• the definition of "Co-Owners" will be further clarified
  
• the ownership right of co-owners to common property shall be according to the ratio of the official appraisal price prescribed by the relevant authorities
  
• the land official will have the authority to register the transfer of the condominium unit without requiring a "certificate of free of debts,” subject to other requirements being fulfilled
  
• standard rules and regulations governing condominium juristic persons are also proposed
  

In particular, under the proposed amendment the definition of "co-owners" will be clarified as "a person whose name is registered in a condominium unit title deed in each condominium” whilst the existing Act provides only that it is an “owner of condominium unit in each condominium.”

Point three above allows the relevant official, provided certain conditions are fulfilled, to register the transfer of the condominium unit without the "certificate of free of debts,” which is a critical document required for the registration under the existing Act. This will solve the problem of situations where the manager of the condominium juristic person does not issue a "certificate of free of debts" to the co-owner.

Another significant amendment is the standardisation of the rules and regulations for condominium juristic persons by prescribing a standard form with clarifications stipulating the qualifications of the manager of the condominium juristic person as well as the process for the appointment and removal of the manager of the condominium juristic person, which, perhaps surprisingly, are not currently prescribed in the existing Act.

Other areas reviewed include:-

• The evidence and other particulars required for the application to register the condominium.
  
• The ownership right of co-owners over the common property.
  
• The expenses and taxes for which co-owners shall jointly be responsible, including payment of the same and measures to enforce payment obligations.
  
• The rules and procedures for meetings of co-owners, the co-owners´ right to call a meeting and the voting procedure in a meeting.
  
• Foreigners´ entitlement to own condominium units in proportion with the area of the condominium units.
  

Regards

PS This post is based on email conversations with knowledgeable individuals. I've not seen authoritative texts at this time.

[Pappiklon]

I've searched thaivisa and the WWW for a copy of the new amendments that come into effect on July 4th and can't find an English version anywhere, does anyone have a link for this - In English

Thanks in advance