The Thai Condominium Act.

Overview

What Happens After You Buy Your Condo

Most expats focus their legal attention on the purchase itself. Title checks, FET documentation, contract review, transfer fees. Once the unit is registered in their name and they collect the keys, they assume the legal process is complete.

In one sense it is. But owning a condominium in Thailand means becoming a co-owner in a juristic entity regulated by the Condominium Act B.E. 2522 (1979) and its amendments. That juristic entity has its own rules, obligations, meetings and decision-making processes that affect every co-owner in the building.

Understanding the structure is practical knowledge, not legal theory. It determines how much you pay in annual fees, what decisions you have a vote on, what your rights are if the building is mismanaged, and what happens to your unit if maintenance fees are unpaid.

Section 1

The Juristic Person

Every registered condominium building in Thailand must establish a juristic person, sometimes called the condominium juristic person or co-owners juristic person. This is a legal entity formed automatically when the building is registered. It holds responsibility for the common areas, collects fees, enforces building rules and represents the co-owners collectively.

The juristic person is managed day-to-day by a juristic manager, who is appointed by the co-owners committee and ultimately accountable to the co-owners at the Annual General Meeting. In practice, the developer often appoints the initial juristic manager before co-owners have organised themselves into an active committee. Challenging or changing an underperforming juristic manager, or one acting against the interests of co-owners, is possible but far more straightforward where owners understand the governance structure from the outset.

• The juristic person is established when the building is registered with the Land Department.
• It manages all common areas including lobbies, pools, lifts, gardens and parking.
• It collects maintenance fees and the sinking fund from all co-owners.
• It is governed by co-owners through the AGM and the elected committee.
• The juristic manager handles daily operations and is accountable to the committee.

Section 2

Maintenance Fees

Maintenance fees (also called common area fees or CAM charges) are charged per square metre of the unit owned. The rate is set by the juristic person and approved at the AGM. Fees cover the cost of maintaining common areas, utilities for shared spaces, security, insurance on the building structure and staff wages.

Payment is typically annual, semi-annual or quarterly. Unpaid maintenance fees accrue interest and can result in the juristic person refusing services, restricting access to common facilities and ultimately pursuing legal action for recovery. Outstanding fees must be cleared before a unit can be transferred, and should be checked as a matter of course on any condominium purchase, because sellers do not always disclose arrears voluntarily.

• Charged per square metre of the unit, set by the AGM.
• Covers common area upkeep, utilities, security, insurance and staff.
• Unpaid fees accrue interest and can lead to legal recovery action.
• Outstanding fees must be cleared before a unit can be transferred.
• Check the maintenance fee rate and history before purchase.

Section 3

The Sinking Fund

The sinking fund is a one-time capital contribution paid when a unit is first sold by the developer. It funds major future repairs and replacements such as lifts, roof waterproofing, pool resurfacing and structural work. It is not a recurring fee but an initial deposit into the building's long-term capital reserve.

On a resale unit, the sinking fund status should always be confirmed as part of pre-purchase due diligence. Outstanding sinking fund obligations transfer with the unit in some buildings, and buyers have discovered after transfer that they inherited obligations the seller did not disclose. This is a point to settle before any money changes hands.

• One-time payment, typically collected at transfer from the developer.
• Held in reserve for major capital works and structural repairs.
• Rate is set per square metre at the time of initial sale.
• Confirm payment status on resale units before purchasing.
• Additional sinking fund top-ups can be voted for at the AGM for major works.

Section 4

The Annual General Meeting

The AGM is required by law and must be held within 120 days of the juristic person's financial year end. Co-owners are entitled to attend, vote and stand for the committee. Voting rights are allocated based on the ratio of the unit area to the total area of the building, which means larger units carry more votes.

The AGM approves the annual budget, sets or adjusts maintenance fee rates, approves financial accounts, elects the committee and deals with any special resolutions. Buildings accumulate maintenance problems and management disputes directly because expat owners do not engage with the governance process. For an owner, attending the AGM or appointing a proxy is the way to exercise these legal rights. A proxy can be appointed for an owner who cannot attend in person.

Section 5

Building Rules and Regulations

Each condominium has its own set of building rules approved under the Condominium Act. These rules govern noise, pets, modifications to units, rental arrangements, visitor access, parking and the use of common facilities. They are legally binding on all co-owners and their tenants.

Breaches of building rules can result in financial penalties and, in serious cases, legal proceedings by the juristic person. If you intend to let your unit, check the building rules on short-term rentals before completing your purchase.

Section 6

Checks Before Buying and Rights After Owning

The legal considerations around a condominium do not end when the keys are handed over. They run from pre-purchase checks through to the exercise of ownership rights once the unit is registered.

Before purchase, the building's financial health, maintenance fee history, sinking fund status, building rules and any active disputes within the juristic person should be reviewed. Many of these problems are only discovered after transfer, when they are harder to address.

After purchase, the areas that most often require attention are AGM voting rights and proxy appointments, disputes with the juristic person or committee, enforcement of building rules against other owners, and situations where the juristic manager has acted outside their authority or misappropriated funds.

• Pre-purchase due diligence: the building's financial accounts, fee history and building rules.
• A proxy can be appointed for AGM attendance where an owner cannot attend in person.
• Voting rights and the formal procedure for raising issues at a co-owners meeting.
• Disputes with the juristic person, committee or developer may require legal representation.
• Challenging juristic manager conduct, or requesting a special general meeting, follows a set procedure under the Act.
• Service and management contracts entered into by the juristic person bind the co-owners and are worth reviewing.
• Short-term rental compliance depends on the building's specific rules as well as Thai law.

In Summary

Know your rights before you buy or after you own.

Condominium governance, disputes and compliance are ongoing considerations at every stage of ownership.