Interest On Unpaid Fees

[Eneukman]

I have an unofficial translation of the new Condominium Act and was reading the part about the new interest rates that can be charged to owners who fail to pay their maintenance fee on time. The translation has a note to the effect that the new Section 18 does not apply to condominiums registered before the new Act came into force.

At present, we are charging interest of 15% on unpaid fees and proposse disconnecting the utilities from those who are more than 3 months in arrears as prescribed in the condo regulations. The condo regulations have not yet been amended to incorporate the relevant parts of the new Act (will probably be done at the next AGM, which is likely to be held in January). The management company have produced a list of the changes that are required to the regulations but these do not include amending the rate of interest to be charged.

Whilst I am not a solicitor, I do have some legal training and my interpretation is that we should continue to charge interest at the rate of 15% rather than the rates specified in the new Act. Also, the management committee have the right to disconnect utilities after 3 months as specified in the condo's regulations rather than 6 months as specified in the new Act. Is this correct or am I totally misinterpreting what the new Act.

I will ask the area manager the next time I see him in the building.

Thanks,

Alan

[jojothai]

I have an unofficial translation of the new Condominium Act and was reading the part about the new interest rates that can be charged to owners who fail to pay their maintenance fee on time. The translation has a note to the effect that the new Section 18 does not apply to condominiums registered before the new Act came into force.

At present, we are charging interest of 15% on unpaid fees and proposse disconnecting the utilities from those who are more than 3 months in arrears as prescribed in the condo regulations. The condo regulations have not yet been amended to incorporate the relevant parts of the new Act (will probably be done at the next AGM, which is likely to be held in January). The management company have produced a list of the changes that are required to the regulations but these do not include amending the rate of interest to be charged.

Whilst I am not a solicitor, I do have some legal training and my interpretation is that we should continue to charge interest at the rate of 15% rather than the rates specified in the new Act. Also, the management committee have the right to disconnect utilities after 3 months as specified in the condo's regulations rather than 6 months as specified in the new Act. Is this correct or am I totally misinterpreting what the new Act.

I will ask the area manager the next time I see him in the building.

Thanks,

Alan

Hi Alan you do need to be wary of some translations. There is no official english translation as far as I can find. Even when one is semi-official the Thai will prevail. Some things do not translate well. I have seen several versions and some of them miss important points. You also need to read and interpret some things which takes several times of discussion and reflection.

Even the best I have which is from a thiavisa posting misses out a very important part of clause 18. this is the best version I have seen.

Penalty for non payment of contributions: Where unit owners do not pay for the costs within the due date, they are liable to pay a penalty not exceeding 12% per year, but this may not be compounded. Unit owners who owe money for more than 6 months must pay an additional amount at a rate not exceeding 20% per year and may not use communal property, or their communal services may be discontinued, and they may not be permitted to vote at the annual general meeting.

Note the very last part which is missing from the Thaivisa version. I have confirmed it is in the Thai law and we had legal opinion that the JPM can take away votes even if the 6 months is retrospective.

Going back to your issue, I believe you cannot charge 15% until 6 months. The law says the maximum is 12%. After 6 months you can up it to a maximum of 20% if you may want to do so. Get your manager and condo lawyer to read an official thai version and confirm the english translation is correct.

You also need to need to understand that section 18/1 is not section 18. Western logic may consider that section 18/1 is under 18 but why? It is recognized that some Items in the old section 18 from before cannot be changed by the new law retrospectively, but the new 18/1 is new across across the board. The extra section of the new condo act (numbered 31) actually even states which aspects of 18 shall not apply. This is what our condo group is advised. Your condo needs to get a legal opinion if you want to assume different, as co-owners can sue you if you break the law.

With respect to cutting off services the same applies. if I was you I would not comtemplate cutting off at 3 months unless you are prepared for consequential legal action. Just because your rules say 3 months does not matter now if the law says 6 months and the law is above any of your condo rules and regulations. So your condos own legal opinion on clause 18.1 is extremely important. Just because I say something our group have been advised you cannot assume it is correct, the condo needs to protect itself with its own formal legal opinion.

I would be very interested to know what you find.

regards

jojo

[glyph]

I own a unit in a ten-year old condo, and the new rates were implemented within a month after the Act was revised.

[Eneukman]

I have an unofficial translation of the new Condominium Act and was reading the part about the new interest rates that can be charged to owners who fail to pay their maintenance fee on time. The translation has a note to the effect that the new Section 18 does not apply to condominiums registered before the new Act came into force.

At present, we are charging interest of 15% on unpaid fees and proposse disconnecting the utilities from those who are more than 3 months in arrears as prescribed in the condo regulations. The condo regulations have not yet been amended to incorporate the relevant parts of the new Act (will probably be done at the next AGM, which is likely to be held in January). The management company have produced a list of the changes that are required to the regulations but these do not include amending the rate of interest to be charged.

Whilst I am not a solicitor, I do have some legal training and my interpretation is that we should continue to charge interest at the rate of 15% rather than the rates specified in the new Act. Also, the management committee have the right to disconnect utilities after 3 months as specified in the condo's regulations rather than 6 months as specified in the new Act. Is this correct or am I totally misinterpreting what the new Act.

I will ask the area manager the next time I see him in the building.

Thanks,

Alan

Hi Alan you do need to be wary of some translations. There is no official english translation as far as I can find. Even when one is semi-official the Thai will prevail. Some things do not translate well. I have seen several versions and some of them miss important points. You also need to read and interpret some things which takes several times of discussion and reflection.

Even the best I have which is from a thiavisa posting misses out a very important part of clause 18. this is the best version I have seen.

Penalty for non payment of contributions: Where unit owners do not pay for the costs within the due date, they are liable to pay a penalty not exceeding 12% per year, but this may not be compounded. Unit owners who owe money for more than 6 months must pay an additional amount at a rate not exceeding 20% per year and may not use communal property, or their communal services may be discontinued, and they may not be permitted to vote at the annual general meeting.

Note the very last part which is missing from the Thaivisa version. I have confirmed it is in the Thai law and we had legal opinion that the JPM can take away votes even if the 6 months is retrospective.

Going back to your issue, I believe you cannot charge 15% until 6 months. The law says the maximum is 12%. After 6 months you can up it to a maximum of 20% if you may want to do so. Get your manager and condo lawyer to read an official thai version and confirm the english translation is correct.

You also need to need to understand that section 18/1 is not section 18. Western logic may consider that section 18/1 is under 18 but why? It is recognized that some Items in the old section 18 from before cannot be changed by the new law retrospectively, but the new 18/1 is new across across the board. The extra section of the new condo act (numbered 31) actually even states which aspects of 18 shall not apply. This is what our condo group is advised. Your condo needs to get a legal opinion if you want to assume different, as co-owners can sue you if you break the law.

With respect to cutting off services the same applies. if I was you I would not comtemplate cutting off at 3 months unless you are prepared for consequential legal action. Just because your rules say 3 months does not matter now if the law says 6 months and the law is above any of your condo rules and regulations. So your condos own legal opinion on clause 18.1 is extremely important. Just because I say something our group have been advised you cannot assume it is correct, the condo needs to protect itself with its own formal legal opinion.

I would be very interested to know what you find.

regards

jojo

Thanks, jojo.

The translation I have came from ThaiVisa and the notes regarding Section 18 were not clear. I had noticed that whilst Section 31 referred to Section 18, it did not refer to Section 18/1 and this is the point that was causing me some considerable confusion. What you say does make sense to me.

Due to the management company only taking over from the original Thai management company at the end of last year and a brand new committee being appointed in July, we are somewhat behind with tackling late payers. Second letters to delinquent owners were issued a couple of days ago giving them 15 days to pay and by the time this period is up, all payments will be more than 6 months overdue. Some have yet to pay their fees for last year and three have three or four years' fees outstanding! Legal action will be taken against these three very soon.

Our management company have their own legal team who can give us advice at no extra cost.

Alan

[jojothai]

I have an unofficial translation of the new Condominium Act and was reading the part about the new interest rates that can be charged to owners who fail to pay their maintenance fee on time. The translation has a note to the effect that the new Section 18 does not apply to condominiums registered before the new Act came into force. At present, we are charging interest of 15% on unpaid fees and proposse disconnecting the utilities from those who are more than 3 months in arrears as prescribed in the condo regulations. The condo regulations have not yet been amended to incorporate the relevant parts of the new Act (will probably be done at the next AGM, which is likely to be held in January). The management company have produced a list of the changes that are required to the regulations but these do not include amending the rate of interest to be charged. Whilst I am not a solicitor, I do have some legal training and my interpretation is that we should continue to charge interest at the rate of 15% rather than the rates specified in the new Act. Also, the management committee have the right to disconnect utilities after 3 months as specified in the condo's regulations rather than 6 months as specified in the new Act. Is this correct or am I totally misinterpreting what the new Act. I will ask the area manager the next time I see him in the building. Thanks, Alan

Hi Alan you do need to be wary of some translations. There is no official english translation as far as I can find. Even when one is semi-official the Thai will prevail. Some things do not translate well. I have seen several versions and some of them miss important points. You also need to read and interpret some things which takes several times of discussion and reflection. Even the best I have which is from a thiavisa posting misses out a very important part of clause 18. this is the best version I have seen. Penalty for non payment of contributions: Where unit owners do not pay for the costs within the due date, they are liable to pay a penalty not exceeding 12% per year, but this may not be compounded. Unit owners who owe money for more than 6 months must pay an additional amount at a rate not exceeding 20% per year and may not use communal property, or their communal services may be discontinued, and they may not be permitted to vote at the annual general meeting. Note the very last part which is missing from the Thaivisa version. I have confirmed it is in the Thai law and we had legal opinion that the JPM can take away votes even if the 6 months is retrospective. Going back to your issue, I believe you cannot charge 15% until 6 months. The law says the maximum is 12%. After 6 months you can up it to a maximum of 20% if you may want to do so. Get your manager and condo lawyer to read an official thai version and confirm the english translation is correct. You also need to need to understand that section 18/1 is not section 18. Western logic may consider that section 18/1 is under 18 but why? It is recognized that some Items in the old section 18 from before cannot be changed by the new law retrospectively, but the new 18/1 is new across across the board. The extra section of the new condo act (numbered 31) actually even states which aspects of 18 shall not apply. This is what our condo group is advised. Your condo needs to get a legal opinion if you want to assume different, as co-owners can sue you if you break the law. With respect to cutting off services the same applies. if I was you I would not comtemplate cutting off at 3 months unless you are prepared for consequential legal action. Just because your rules say 3 months does not matter now if the law says 6 months and the law is above any of your condo rules and regulations. So your condos own legal opinion on clause 18.1 is extremely important. Just because I say something our group have been advised you cannot assume it is correct, the condo needs to protect itself with its own formal legal opinion. I would be very interested to know what you find. regards jojo

Thanks, jojo. The translation I have came from ThaiVisa and the notes regarding Section 18 were not clear. I had noticed that whilst Section 31 referred to Section 18, it did not refer to Section 18/1 and this is the point that was causing me some considerable confusion. What you say does make sense to me. Due to the management company only taking over from the original Thai management company at the end of last year and a brand new committee being appointed in July, we are somewhat behind with tackling late payers. Second letters to delinquent owners were issued a couple of days ago giving them 15 days to pay and by the time this period is up, all payments will be more than 6 months overdue. Some have yet to pay their fees for last year and three have three or four years' fees outstanding! Legal action will be taken against these three very soon. Our management company have their own legal team who can give us advice at no extra cost. Alan

hi alanyou should get them to confirm the section 31 issue relating to just 18 and not 18/1. glad if you will let me know what they say.if you have just got things under control then catching up with late payers will take time. however do query the new rule that requires the juristic manager to take legal action against people delinquent payers for more than six months. Obviously the management company have to advise the manager from payments made so they could be exposed to liability. so you should ask them to clarify how this will be implemented.I am out of town so cannot tell you which clause.regardsjojo