Amendments To Protect Home-buyers

[george]

Amendments to protect home-buyers

BANGKOK: -- Even as Thailand's popularity as a tourist destination has seen steady growth over recent years, the number of foreigners looking to invest in real estate has also gone up.

This is evident from the many new condominium projects being developed not only in and around Bangkok, but also in popular beach-front areas of Hua Hin and Phuket.

These developments promote high-quality lifestyle and affordable prices, which Thailand is able to provide. These factors are attractive to foreigners and, in turn, benefit the local economy.

On February 27, amendments to the Condominium Act (No 4) 2008 were issued to protect buyers of condominiums and to make the existing Condominium Act more efficient and up-to-date.

In the amendments to the Condominium Act, the rights of foreigners who are permitted to own condominium units in Thailand (up to 49 per cent of the aggregate unit space in a condominium building) are specified.

The amendments are designed to provide protection for the buyers. Developers must prepare agreements to sell and buy condominiums in a standard format prescribed by the Interior Ministry.

The amendments also say that the material used to advertise and promote the sale shall be deemed an integral part of the agreement to sell the condominium. The developer must keep copies of all advertisement-related material until all units in the condominium have been sold. This will ensure that the developer delivers as promised.

In addition to pre-purchase measures, the amendments also provide protection for buyers who have taken delivery of the unit. These include provisions regulating how the condominium juristic person operates and manages a condominium building and how the co-owners control and protect their rights in the units and the common property.

These amendments will be effective from July 4.

-- The Nation 2008-04-07

[Tammi]

Amendments to protect home-buyers

BANGKOK: -- Even as Thailand's popularity as a tourist destination has seen steady growth over recent years, the number of foreigners looking to invest in real estate has also gone up.

This is evident from the many new condominium projects being developed not only in and around Bangkok, but also in popular beach-front areas of Hua Hin and Phuket.

These developments promote high-quality lifestyle and affordable prices, which Thailand is able to provide. These factors are attractive to foreigners and, in turn, benefit the local economy.

On February 27, amendments to the Condominium Act (No 4) 2008 were issued to protect buyers of condominiums and to make the existing Condominium Act more efficient and up-to-date.

In the amendments to the Condominium Act, the rights of foreigners who are permitted to own condominium units in Thailand (up to 49 per cent of the aggregate unit space in a condominium building) are specified.

The amendments are designed to provide protection for the buyers. Developers must prepare agreements to sell and buy condominiums in a standard format prescribed by the Interior Ministry.

The amendments also say that the material used to advertise and promote the sale shall be deemed an integral part of the agreement to sell the condominium. The developer must keep copies of all advertisement-related material until all units in the condominium have been sold. This will ensure that the developer delivers as promised.

In addition to pre-purchase measures, the amendments also provide protection for buyers who have taken delivery of the unit. These include provisions regulating how the condominium juristic person operates and manages a condominium building and how the co-owners control and protect their rights in the units and the common property.

These amendments will be effective from July 4.

-- The Nation 2008-04-07

Any amendments as to the role of the committee elected by the co-owners? Act of 1979 Section 37 says that co-owners set up a committee to supervise management. But I have often heard of committees that make decisions without agreement from the other co-owners and pass committee decisions on to management so, in fact, condos can be in the grip of 3 to 9 co-owners doing what they like.

Edited April 8, 2008 by Tammi

[backflip]

"But I have often heard of committees that make decisions without agreement from the other co-owners and pass committee decisions on to management so, in fact, condos can be in the grip of 3 to 9 co-owners doing what they like. "

I can't vouch for the accuracy of your statement that you "heard" of something or not, but what you "heard" was wrong.

[quiksilva]

Well it would be rather difficult for the committee and/or the managers to seek all co-owners' approval on every decision they take. Of course it is expected that there are limits on what can be done with and without approval, but what these might be may change from condo to condo.

[Tammi]

"But I have often heard of committees that make decisions without agreement from the other co-owners and pass committee decisions on to management so, in fact, condos can be in the grip of 3 to 9 co-owners doing what they like. "

I can't vouch for the accuracy of your statement that you "heard" of something or not, but what you "heard" was wrong.

So what do you say is "right"?

[Tammi]

Well it would be rather difficult for the committee and/or the managers to seek all co-owners' approval on every decision they take. Of course it is expected that there are limits on what can be done with and without approval, but what these might be may change from condo to condo.

And who sets the limits? And where are those limits defined?

[quiksilva]

Those limits are usually defined in the building management agreement, and are usually set or discussed by the elected committee. Property managers are usually selected at an AGM, usually the only items discussed are their manager's track record, fees and added value services, although I am sure that if raised at an AGM (or even an EGM if necessary) it can be discussed.

If you are a co-owner and have further questions, about this find out when the next committee meeting is scheduled and ask if you can join it.

[Tammi]

Those limits are usually defined in the building management agreement, and are usually set or discussed by the elected committee. Property managers are usually selected at an AGM, usually the only items discussed are their manager's track record, fees and added value services, although I am sure that if raised at an AGM (or even an EGM if necessary) it can be discussed.

If you are a co-owner and have further questions, about this find out when the next committee meeting is scheduled and ask if you can join it.

Lots of "usuallys".

We have tried every which way to get the committee members to meet with us. The answer was a definite NO.

Anyway, I hear that new condo act says that committee members will no longer be allowed to bring proxy votes and if they have done 2 terms they must step aside if another co-owner wants to be on the committee.

Anybody else heard this?

[quiksilva]

Lot's of "usuallys"

So?

Do want free advice, or do you want to critique my writing?

If the committee will not meet you, perhaps you could try being a little less abrasive?

People maybe more willing to help.

[Tammi]

Lot's of "usuallys"

So?

Do want free advice, or do you want to critique my writing?

If the committee will not meet you, perhaps you could try being a little less abrasive?

People maybe more willing to help.

You must be a committee member.

[Tammi]

As per the new Condo Act 2008, Section 31, the provisions of Section 18 as amended by the provisions of this Act shall not apply to a condominium that was registered as a juristic person on or before the date the new Act comes into force.

Section 18 is to do with expenses incurred as a result of common services.

A new Section 18/1 has been added that is to do with co-owners who fail to make payment for common expenses. Those co-owners will be fined non-compounded interest of 10% per annum and if failure to pay exceeds six months they will be subject to a 20% per annum additional penalty on top of the overdue amount.

My question is: Does Section 18/1 come under Section 18 and thus the exemption provided by Section 31? I hope not because under the new Act the Juristic Person Manager will have the DUTY to take legal action against co-owners who have overdue payment exceeding 6 months. If the JPM doesn't do his duty any co-owner can advise the competent officer at the Land Office who presumably will sort things out.

[briley]

Does anyone have an English - or even Thai - version of the 2008 Condo act?

I keep seeing bits and pieces but would like to know the whole lot.

[dave111223]

Any amendments as to the role of the committee elected by the co-owners? Act of 1979 Section 37 says that co-owners set up a committee to supervise management. But I have often heard of committees that make decisions without agreement from the other co-owners and pass committee decisions on to management so, in fact, condos can be in the grip of 3 to 9 co-owners doing what they like.

The committee gets voted in each year, so if the majority of the owners disagree with the decisions of the committee theywould be able to elect different committee members the next year.

So i guess during the year that they are "in office" they could make some limited poor decisions (I say limited as any large changes such as service cost increases, major building changes, etc.. have to be voted for by a certain percentage of owners).

[Tammi]

Any amendments as to the role of the committee elected by the co-owners? Act of 1979 Section 37 says that co-owners set up a committee to supervise management. But I have often heard of committees that make decisions without agreement from the other co-owners and pass committee decisions on to management so, in fact, condos can be in the grip of 3 to 9 co-owners doing what they like.

The committee gets voted in each year, so if the majority of the owners disagree with the decisions of the committee theywould be able to elect different committee members the next year.

So i guess during the year that they are "in office" they could make some limited poor decisions (I say limited as any large changes such as service cost increases, major building changes, etc.. have to be voted for by a certain percentage of owners).

Our committee has a 2 year term and it's not easy to get any of them off. Believe me we have tried. Even when committee members resign due to ill health or whatever the committee won't accept resolution that they be replaced. Why anyone wants to stay on the Committee I have no idea - seems like a thankless job to me but we have these same people politicking and striving to remain on the committee! We even vote in people who never attend committee meetings or AGMs!!!

But the new Act should help, what with committee members cannot hold proxies, and an appointed committee has a 2 year term and may be re-elected for a second term but shall not be entitled to be the committee longer than 2 consecutive terms except when no replacement can be recruited. And the appointment of the committee has to be registered at the Land Office. And the Juristic Person Manager has the duty to take legal action against co-owners who have overdue payments exceeding 6 months and accounting records must be published each month.

Heaven knows if it will be good that if there is not a quorum (which will be one-fourth of the co-owners) at the first called AGM then at the second called AGM within 15 days "the constitution of a quorum shall be irrelevant." And this will apply to large changes such as service cost increases, major building changes, change of use of common property, disposal of common property, etc. which before required 75% of the votes from July 4 2008 will need one half of the votes but if not available at first called meeting then at second called meeting within 15 days the resolutions shall be determined by the majority of the votes of the meeting attendees. So whatever committee members care to turn up and the few co-owners who do will decide the fate of the building and the annual maintenance fee.

Our Committee has, in the past, had some stupid ideas about change of use of common areas and it was good to be able to say that they needed 75% approval which we all knew would be very difficult to get. Now not difficult at all - get a few pals on their side and we will have a snooker table in the main lobby and storage rooms converted to maids' quarters, etc, etc.

[Tammi]

Anyone know - Is the new Condominium Act coming into force today?