Section 15 of the Condominium Act clarifies that common property includes:
- the land on which the condominium is situated;
- the land provided for use or for common benefit;
- the structure and structures for stability and for preventing damage to the building;
- the building and its parts and the accessories that are provided for use or for common benefit;
- implements and instruments provided for use or for common benefit;
- premises provided for common services to the condominium;
- other property provided for use or for common benefit;
- office of condominium building juristic person;
- immovable property bought or acquired under Section 48(1);
- structures or systems built for maintaining security or environments within the condominium building, for example, the fire prevention system, lighting, air ventilation, air-conditioning, the drainage system, waste water treatment, or disposal of garbage and refuse; and
- property using the money under Section 18 for maintenance thereof
Therefore, the owner of a unit is a co-owner of the land on which the Thailand condominium is situated. The proportion of a co-owner's ownership interest in common property is based on the proportion of the area of the co-owner's unit to the total area of all units of the condominium.
Limitation on Foreign Ownership
Although the Condominium Act is designed to promote foreign ownership in condominium projects, there are still restrictions on foreign ownership that cannot be ignored. Section 19 bis of the Condominium Act (as amended by No. 4) provides that aliens or alien juristic persons may own up to forty-nine percent of the total area of the units of the condominium at the time the registration application for the condominium was filed. There are also further rules that define which foreigners may acquire ownership interests in condominium units and that specify when foreigners who have acquired ownership interests in condominium units are required to divest themselves of those units.
Which Foreigners May Own Units in a Condominium
The Condominium Act permits five classes of aliens to own condominium units, namely:
- aliens with a residence permit under the immigration laws;
- aliens allowed to enter Thailand under the laws for the promotion of investment in Thailand;
- juristic persons deemed to be aliens under the Land Code and registered as juristic persons under Thai law;
- juristic persons with a certificate of promotion of investment under the laws for the promotion of investment; and
- aliens or juristic persons deemed by Thai law to be aliens, who have brought into the Kingdom foreign exchange or withdrawn the money from the non-resident Baht account or withdrawn the money from the foreign currency deposit account
Compulsory Dispositions of Condominium Units
If an owner of a condominium unit is an alien and any of the following occurs, such owner will be required to notify the Land Department within sixty days and divest himself of that unit within one year of acquisition or change in status:
- an alien or juristic person deemed to be an alien acquires a unit by legacy through inheritance or otherwise, and when such alien's or juristic person's ownership is included in the calculation of the percentage of foreign ownership in the condominium units, the percentage limitation is exceeded;
- an alien is no longer permitted to reside in Thailand or his residence permit ceases to be valid;
- an alien is deported and has not received a relaxation;
- an alien allowed to enter Thailand under the laws for the promotion of investment is not permitted by the Board of Investment to stay in Thailand; or
- the certificate of promotion of investment of a juristic person deemed to be an alien is revoked.
Conclusion
Although the Condominium Act has been amended numerous times to encourage foreign investment and protect purchasers of units in condominium developments, using experienced advisors, including legal advisors, is even more important for foreigners than it is for condominium purchases in their more familiar home countries.
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