Condominium Governance In Thailand

[KhunPadThai]

There are plenty of topics here about prices for condos, but I have never read any discusssion about governance for those actually living in a condo. I have lived in a condo here in New York City for the past 15 years and have served on the Board of Managers as Treasurer for most of that time. We have monthly meetings of the Board of Managers and take actions such as: retaining a management agency to handle the day to day functioning such as paying bills, hire and fire staff, undertake projects such as replacing the boiler, make and review budgets, etc. In addition there is an Annual General Meeting of the condominium owners at which they elect new Board members to replace those whose terms have ended or who have vacated their seats by selling out. It may be routine, but it is often not smooth. We have had screeching matches at the annual meeting, threats of lawsuits from one board member to another, loss of bank funds by a management company who stole them, and other more routine complaints and criticisms. How does all this work in a condominium controlled by 51% Thai people. I have a hard time imagining that communication goes smoothly across the cultural gap. In any situation where there money is being handled there is always the opportunity for bad judgment and even corruption, imagined or otherwise. Do I not read of this because it doesn't happen in Thailand or do the condo owners have so little ownership rights as to have no say at all in governance?

Khun Pad Thai

[number6]

There are plenty of topics here about prices for condos, but I have never read any discusssion about governance for those actually living in a condo. I have lived in a condo here in New York City for the past 15 years and have served on the Board of Managers as Treasurer for most of that time. We have monthly meetings of the Board of Managers and take actions such as: retaining a management agency to handle the day to day functioning such as paying bills, hire and fire staff, undertake projects such as replacing the boiler, make and review budgets, etc. In addition there is an Annual General Meeting of the condominium owners at which they elect new Board members to replace those whose terms have ended or who have vacated their seats by selling out. It may be routine, but it is often not smooth. We have had screeching matches at the annual meeting, threats of lawsuits from one board member to another, loss of bank funds by a management company who stole them, and other more routine complaints and criticisms. How does all this work in a condominium controlled by 51% Thai people. I have a hard time imagining that communication goes smoothly across the cultural gap. In any situation where there money is being handled there is always the opportunity for bad judgment and even corruption, imagined or otherwise. Do I not read of this because it doesn't happen in Thailand or do the condo owners have so little ownership rights as to have no say at all in governance?

Khun Pad Thai

in the condo we own in BKK we have annual meetings to elect managing commitee - any major proposals are always put to a vote - at annual meeting i am usually 1 of only 3 or 4 forangs but i know 10% are owned by foreigners - the thais at meeting are really nice and even translate for me since my thai is quite limited - maybe because most of block is owned by quite wealthy Thais who wither let out, use it for their BKK base or live their - most are proffesionals (doctors etc), some models, some minor film stars etc - maybe thats why it all seems to be quite well managed and run - by cental BKK standards its not an expensive block , condos 65 sq mts go for aorund 3-3.8 million -normal problems exist such as complaints about kids in pool being to noisy etc

having said that i looked at about 100 condo blocks before buying in this block and id say well over 80% are run pathetically - some dont even bother to insure buildings etc - a lot are xxxxxxxxxx

[KhunPadThai]

in the condo we own in BKK we have annual meetings to elect managing commitee - any major proposals are always put to a vote - at annual meeting i am usually 1 of only 3 or 4 forangs but i know 10% are owned by foreigners - the thais at meeting are really nice and even translate for me since my thai is quite limited - maybe because most of block is owned by quite wealthy Thais who wither let out, use it for their BKK base or live their - most are proffesionals (doctors etc), some models, some minor film stars etc - maybe thats why it all seems to be quite well managed and run - by cental BKK standards its not an expensive block , condos 65 sq mts go for aorund 3-3.8 million -normal problems exist such as complaints about kids in pool being to noisy etc

having said that i looked at about 100 condo blocks before buying in this block and id say well over 80% are run pathetically - some dont even bother to insure buildings etc - a lot are xxxxxxxxxx

That's pretty interesting. Insurance can be a big problem. You never know if you have enough until you need it and lots of people don't recognize how important it is. When you were evaluating condominiums before buying were you able to see financial statements, minutes of annual meetings, minutes of Board meetings,etc.? I would think it would be pretty hard to evaluate the management of a condo in BKK.

[number6]

That's pretty interesting. Insurance can be a big problem. You never know if you have enough until you need it and lots of people don't recognize how important it is. When you were evaluating condominiums before buying were you able to see financial statements, minutes of annual meetings, minutes of Board meetings,etc.? I would think it would be pretty hard to evaluate the management of a condo in BKK.

I had a long list of questions before i bought - over 50% where confused i even asked questions even tohugh my thai wife translated in perfect thai - i tihnk i was lucky but if you look at older blocks, ours is abnout 10 years old you can get a pretty good feel - yes annual accounts etc should be vailable and in good blocks will be but my advice is best to look carefully - try to talk to other owners etc etc - the owner wanted to sell but we made her a really good offer to let us rent for a bit before finally deciding - basically we paid well over rental and paid 6 months up front which being Thai she could not resist - we bought 3 months later - we were so impressed we bought another in same block later - but my advice be very very careful about new blocks and up to you but i would never buy of plan - i know lots of people are going to say u can make a killing buying of plan - probably in raising market if project gets done (many dont) - thialanhd like everywhere has not seen a falling market for years - for example in our block it was completed just after crash and prices fell to 50% of off plan price - so a lot of people lost a lot but now they have all done well since prices are probably 3 times low

[RAZZELL]

That's pretty interesting. Insurance can be a big problem. You never know if you have enough until you need it and lots of people don't recognize how important it is. When you were evaluating condominiums before buying were you able to see financial statements, minutes of annual meetings, minutes of Board meetings,etc.? I would think it would be pretty hard to evaluate the management of a condo in BKK.

I had a long list of questions before i bought - over 50% where confused i even asked questions even tohugh my thai wife translated in perfect thai - i tihnk i was lucky but if you look at older blocks, ours is abnout 10 years old you can get a pretty good feel - yes annual accounts etc should be vailable and in good blocks will be but my advice is best to look carefully - try to talk to other owners etc etc - the owner wanted to sell but we made her a really good offer to let us rent for a bit before finally deciding - basically we paid well over rental and paid 6 months up front which being Thai she could not resist - we bought 3 months later - we were so impressed we bought another in same block later - but my advice be very very careful about new blocks and up to you but i would never buy of plan - i know lots of people are going to say u can make a killing buying of plan - probably in raising market if project gets done (many dont) - thialanhd like everywhere has not seen a falling market for years - for example in our block it was completed just after crash and prices fell to 50% of off plan price - so a lot of people lost a lot but now they have all done well since prices are probably 3 times low

Sounds a nice place...do you mind saying which block and where???