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What is condominium under the Thailand Condominium Act

Licensed and registered under the Condominium Act

The Thailand Condominium Act defines a condominium as a building that can be separated into units for individual ownership and which include personal and common properties (land on which the building sits, hallways, elevators, etc.). The Condominium Acts does not specify in any detail the specific requirements necessary in order for it to be identified as a condominium. As long as the building is able to hold ownership separately according to the area, whereby each area consists of private ownership in the property and joint ownership in the common property. There are no specifications outlining height or space requirements, nor are there any specifications outlining the minimum amount of individual units necessary within the building under the Condominium Act.

All building in Thailand must comply with zoning regulations under the City Planning Act and Building Control Act. A local regulation issued under the building Control Act could for example specify 'in the x region a person shall prohibit to construct any other building except a single-one level building which its height is not more than 6 meters and the total building area is not more than 75 square meters and there is empty space around the building not less than 75% of the land that is allowed to construct the building'. A building permit for a condo would not be allowed under the Building Control Act.

A condominium in Thailand could technically be a flat or horizontal building structure or vertical high rise building structure. Horizontal condos or a 'Villa Condominium' are as such not defined in the Condominium Act. A villa condominium under the Condominium Act is based on a decision by the government's legislative advisory but must obtain a condominium license. The legality of this type of (horizontal) condominiums under the Condominium Act is controversial and licensing is usually refused.

The rough guide from start of a condominium project, licensing, till transfer of ownership and operation of a condominium

Chapter 1 in the Condominium Act (article 6) Any owner of land and building wishing to register the said land and building as condominium under this act shall file application for registration of condominium with the Competent Official together with:

  1. Land title deed (must be a full ownership title deed (chanote)),
  2. Plan of the condominium (including entrances and exits to the public road)
  3. Details concerning the apartment, personal property and common property, such as; spaces, nature on the utilizations and other interests as set forth by the minister having charge and control of the execution of the Condominium Act,
  4. Ratio of each owner of the apartment has the ownership in the common property under Section 14 of the Condominium Act,
  5. Certificate of the applicant verifying that the building applied for registration as a condominium is free from any encimbrances and not under mortgage except the mortgage of the building with the land, and
  6. Draft of the regulations of the condominium juristc person
  7. Other evidences as prescribed in the Ministerial Regulations.

Land purchase

  1. land due diligence (must be completely unencumbered land)
  2. investigation with the government departments on building permission
  3. land survey
  4. purchase contract (sale and purchase agreement with the seller of the land)
  5. registration ownership

Condominium pre-construction

  1. I.E.E. or I.A.E. documentation (environmental impact assessment report depending on the size (number of units) of the development)
  2. Condominium construction permit (Or.Bor.Tor)
  3. Land upgrade if applicable (the land must have a freehold title deed Chanote/ Nor Sor 4 Jor to be registered and licensed as a condominium)

Condominium construction

  1. Start of the sales process of the units (sale contracts for the units)
  2. Electric meter application
  3. Water supply meter
  4. Connecting drainage
  5. Road access permit

Post construction

  1. Condominium registration
  2. Application (condo) house registration books (Tabien Baan)
  3. Official unit survey and measurement of the units
  4. Application occupancy certificate
  5. Appraised value of the units
  6. Draft rules and regulations (juristic person)
  7. Registration condo juristic person
  8. Handover units and registration unit title deeds

Operation as a condominium run by the owners

  1. Invitation to purchasers/ unit owners for first general meeting
  2. Actual general meeting of condo owners
  3. Deciding on registration of the condominium manager ann condo board members, and if any amendments to the draft rules and regulations of the condo - also see handbook

Relevant Condominium Acts (laws)

Apartment/ condominium structures must comply with the Building Control Act and its Ministerial Regulations as a residential building, and comply with the City and Town Planning Act and local Ministerial Regulations, and depending on the size (ground floor area and/ or height) and number of units apply for an Occupancy Permit and have to comply with licenses under the Enhancement and Conservation of National Environment Quality Act - read more...

For registered condominiums there are 4 acts relevant to condominiums in Thailand, being the Condominium Act B.E. 2522 (1979), the Condominium Act (No. 2), B.E. 2534 (1991), the 1991 Act is the amended Section 19 of the Condominium Act B.E. 2522, the Condominium Act (No. 3) B.E. 2542 (1999) issued on 28th April, 1999. The current Condominium Act including amendments to the Condominium Act No.4 made in 2008 can be found here: Thailand Condominium Act translation from Thai to English. The 2008 amended Condominium Act B.E. 2522: Condominium Act (No.4) B.E. 2551 (2008).

Between April 1999 and April 2004, as a temporary measure and an attempt to reduce the surplus number of condominiums, foreigners could under certain restrictions and in specified areas own up to 100 % of the aggregate unit space. This has since been amended back and foreigners can currently own up to 49% of the aggregate unit space.

Apartment projects not registered under the Condominium Act do not have to comply with the Condominium Act, nor does the land need to have a full freehold title.

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