Condominiums – Farangs Ownership Exceeds 49% Of Total Area

[tominchaam]

I have some questions for the legal experts here on thaivisa,

What is the legal procedure and possible consequences when proven a registered condominium juristic person has exceeded the 49% quota for aliens? Also how can it affect those aliens who bought when the quota was not exceeded and now wants to sell to another farang?

[sabaijai]

Is this a hypothetical question or are you involved in such a situation? I'm no legal expert but ordinarily it's impossible to complete a sale without specific evidence from both the condo itself and the government land registration office affirming that the quota has not been reached. I can't see how someone could legally buy a unit in a condominum that had already reached quota. I would assume that if they did manage to pay for the unit and take occupancy, and it later came out that foreign ownership was over quota, that any owners who had bought beyond the quota would have their titles revoked. It shouldn't affect anyone else who bought legally.

[jumnien]

A condo near here is currently at 70% farang ownership and their voting rights have come into question. Interesting?

[sabaijai]

They have a lot more to worry about than voting rights.

[jumnien]

In another country perhaps. After all, they just today decided to do something about a hotel collapse in 1993. I don't think anyone fears anything will happen before the 22nd century regarding condo ownership.

[briley]

If a farang becomes the owner of land or a condo with more than 49% ownership by inheritance or any other reason they have 1 year to sell it, from my memory of the 2008 Condo act. (Section 14 and 15?)

Not sure what happens if you fail to do so. Probably confiscated by the state.

It is impossible, except by mistake or fraud, for farang to own over 49% of a Condo building by purchase in their name.

It is possible for a company that a farang 'manages' to own units and take the figure over 49% but technically the company is Thai owned so the unit is Thai owned. In the case of a company they give a proxy vote to whoever they like, including to a farang. (But not the building judicial manager, employees or staff.)

So farang can have over 49% of the vote.

[thaiwanderer]

not apparently the OP's situation but the special cases 99-04 were 100% farang ownership - can all of them transfer to farangs forever?

[quiksilva]

If a farang becomes the owner of land or a condo with more than 49% ownership by inheritance or any other reason they have 1 year to sell it, from my memory of the 2008 Condo act. (Section 14 and 15?)

Not sure what happens if you fail to do so. Probably confiscated by the state.

It is impossible, except by mistake or fraud, for farang to own over 49% of a Condo building by purchase in their name.

It is possible for a company that a farang 'manages' to own units and take the figure over 49% but technically the company is Thai owned so the unit is Thai owned. In the case of a company they give a proxy vote to whoever they like, including to a farang. (But not the building judicial manager, employees or staff.)

So farang can have over 49% of the vote.

Correct and this seems the most likely case.

If 'mistakes' were made, they were most likely made by the land department. However, if mistakes were .. ehem.. 'encouraged' by the buyers then they have no one but themselves to blame. Unless the developers played a part in it.

[PattayaParent]

I have some questions for the legal experts here on thaivisa,

What is the legal procedure and possible consequences when proven a registered condominium juristic person has exceeded the 49% quota for aliens? Also how can it affect those aliens who bought when the quota was not exceeded and now wants to sell to another farang?

I would guess that if those Farangs had bought their condos legally (within the 49%) then they are legally entitled to sell them to another Farang. But the ones that were bought illegally (over the 49%) must be sold to a Thai only.

But are you sure that you're not in a condo that allows 100% Farang ownership?

[jumnien]

To be clear, Thai law concerns "foreigner" ownership, not "farang" ownership.

[trogers]

But are you sure that you're not in a condo that allows 100% Farang ownership?

A condo built on leasehold land has no quota allocation - nor will land titles (chanots) be issued.

Condos owned through a Thai controlled company fall under the local quota.

[jumnien]

But are you sure that you're not in a condo that allows 100% Farang ownership?

A condo built on leasehold land has no quota allocation - nor will land titles (chanots) be issued.

Condos owned through a Thai controlled company fall under the local quota.

What about condos owned through a Thai company that is controlled by a farang? I'm thinking of "dummy" companies set up by farang for the purposes of owning Thai property including condos.

[trogers]

What about condos owned through a Thai company that is controlled by a farang? I'm thinking of "dummy" companies set up by farang for the purposes of owning Thai property including condos.

Nominee companies has been set up by many foreigners to do business (or hold real property) in Thailand. The nominee company still have to show majority Thai ownership to own the condo and this will fall under the local quota. But note, the major thai shareholders can be charged for deceit should it be shown that the money invested belongs to a foreigner. See the case for Thai Air Asia.

Also, such a property will have to be sold to another local, and not to a foreigner.

[tominchaam]

Thanks to all posters for information given.

My questions are about a condominium Juristic Person registered with the Land Office many years ago.

It is not covered by the changes in the Condominium Act of 1999 so aliens are not allowed to own more than 49% of total area. Condos owned through a nominee company are not included in the number owned by aliens.

PattayaParent – I have seen nothing that verifies your guess. If it is based on facts please post them as it might help a lot.

[thaiwanderer]

To be clear, Thai law concerns "foreigner" ownership, not "farang" ownership.

if we are nit picking its 'aliens'

[thaiwanderer]

for the op it sounds like tea money obviously

in practice unless it is now under investigation is it actually a problem?

alien wishing to sell to another alien - the seller has a chanote for the unit in his/her name - straightforward transfer? or is it tea money every sale (the gift that keeps giving)

if cannot sell to another alien looks like inheritance / ineligible acquisition provisions will apply

for the alien can plead ignorance - can buy condo thought it was part of 49% have chanote so must be - though will then have to sell to thai therefore drop in price

(know of a fair few condos where the registered floor area with aliens is 49% but actual floor area with aliens much higher - shared area not actually shared etc etc)