Pattaya Daily News

27 April 2009 :: 22:04:59 pm 1818

New Condominium Laws

This is an update to all our readers. Last year the Thai Government enacted a new Condominium Law which is retroactive to the 5th July 2007. The former Condominium Law was actively in force for the past 30 years but was out of date and the new law is seen as a necessity to solve many existing problems between owners and the juristic person of condominiums.
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The purpose of this newly enacted Condominium Law is to provide protection to all condominium owners from the juristic person who have tended to take advantage of them.

For example, common problems are:

Unfair communal service charge.

Most of the time the owners are required to pay more than they should while, at the same time, the management or the juristic person have refused to show the actual income and expenses of the condominium to all owners. Meanwhile, some of the communal areas of the condominium may have been put to commercial use for the benefit of the juristic person and not for the owners.

In addition, some owners have refused to pay the service charge due to additional construction or amendments which are not designated in original plans or layout, which is a violation of the Condominium Act. These problems are obstacles preventing both the owners and the juristic person from managing the condominium in a proper manner.

Another important factor is the obligation for the juristic person of all condominiums to hold an Annual General Meeting, and to call for an Extraordinary Meeting when necessary. The juristic person has often regarded the meeting as a minor matter and neglected to inform all the owners. Therefore, the meetings have usually failed as the required quorum was not reached. The new Condominium Law allows for a lower number of members to provide the necessary quorum.

Here below are some important provisions from the new Condominium Law:

1. Common Property

Common property and all facilities: The juristic person shall be duty bound to set up regulations and maintain all common property and facilities in good condition for the common use of all owners e.g. swimming pools, gardens, lobby and lounge. These properties must be the same as shown in the original layout as submitted to the Land Office prior to the construction. Also, all common property and facilities must be the same as advertised in the leaflets or catalogues of the condominium during their sale.

2. Non payment of community service charge

In the event that any owners of the condominium refuse to pay any common fees which may cause damage to all owners as a whole, the new Condominium Act regulates that a fine of 12% shall be imposed on all unpaid fees up to 6 months. In excess of 6 months, a fine of 20% shall be imposed. In addition, water and electricity utilities may be cut

3. The duty of the manager of Juristic person

Many condominium owners often find it difficult to gain any cooperation from the management of the juristic person of the condominium when requiring documents. This is a problem at every condominium. Also, money from communal service charge has not being used properly for the benefit of all owners. In order to solve this problem, the newly enacted Condominium Law provides that the management of the condominium must perform the following duties:

3.1. An owner may require the management to issue a letter to him certifying he is free from all debts to the condominium. The manager of the juristic person has the duty to issue such a letter within 15 days from the date of application.

3.2. The manager is duty bound to post the monthly income and expenses of the condominium within 15 days from of the end of the month, to be displayed at a location easily visible to the public. Violators shall be fined not exceeding THB 50,000 and an additional fine of THB 500 shall be imposed on a daily basis until all requirements are duly performed by the manager.

3.3. According to the new Condominium Law, appointment and dismissal of a manager of a juristic person can be carried by votes from owners counting not less than one quarter of all owners ,while the former Condominium Law required more than half of all owners.

In conclusion, this new version of the Condominium Law is to help and provide assistance to the owners of condominiums and specifies the duty of the manager as well as owners in order to clarify all matters and solve the problems which arise between owners and the manager of the condominium. It is hoped this will promote peace and harmony for those living in condominiums.

Reporter : PDN staff   Photo : Internet   Category : Legal

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