Thailand Condominium Act : Chapter 5

Thailand Condominium Act
Thailand Condominium Act

The current Section 5 of the Thai Condominium Act of Thailand explains the duties of all those who have an interest in the condo unit. It also looks at the responsibilities of those who manage the building. Again speak to a property lawyer first!

CHAPTER V

Juristic Condominium

Section 31 The transfer of rights in the apartment to any person without transferring the entire ownership in the apartment in the condominium to one or several persons holding the rights jointly shall be made only upon the transferror and the transferee of rights in the said apartment filing the application for the transfer of rights in the apartment together with the application for the registration of juristic condominium with the copy of the Regulations and evidence in the registration of condominium to the Competent Official.

Upon finding it correct, the Competent Official shall register the transfer of rights in the apartment to the transferee and register the juristic condominium under the first paragraph simultaneously and publish it in the Government Gazette.

Section 32 The Regulations shall at lease contain the following main particulars:
(1)     Name of juristic condominium shall contain the words ‘juristic condominium’ as well
(2)     Objectives under Section 33
(3)     Location of office of juristic condominium
(4)     Amount of expenses of juristic condominium the joint-owners shall have to pay in advance.
(5)     Management of common property
(6)     The use of personal property and common property,
(7)     Ratio of the freehold in common property which each unit joint owner has as specified in condominium registration application,
(8)     Expense ratio where the payment is shared by joint owners in accordance with Section 18,
(9)     Other statements prescribed under Ministerial Regulation.

An alteration on or an addition to the Regulations which has already been registered can be made only by the resolution of the Joint Owner General Meeting and the Manager shall register such alteration or addition with the competent official within thirty days from the date on which the Joint Owner General Meeting has passed such resolution.

In the case where the competent official is of the view that such alteration or addition is not contradictory to the law, the competent official shall then register such alteration or addition thereof.

Section 33 Juristic condominium duly registered shall have the status as a juristic person and shall have the objectives to manage and maintain the common property with the power to do any acts for the benefits of the said objectives. However, it shall be in accordance with the resolution of joint-owners under the provisions of this Act.

Section 34 In the event certain part of the condominium being expropriated under the law governing expropriation of immovable property, the joint-owners whose apartments have been expropriated shall have no right in the common property remains from the expropriated. In this instance, the juristic condominium shall arrange for the joint-owners whose apartments have not been expropriated jointly indemnify the price to the joint-owners whose rights extinct. However, it shall be according to the ratio of each joint-owner is entitled to the common property.

For the purpose of indemnify the price to the joint-owners whose rights extinct under the first paragraph, it shall be regarded that the debt indemnifying the said price has preferential rights over the personal property of the owners whose apartments have not have been expropriated similarly to the expenses under Section 18, the second paragraph.

Section 35 The juristic condominium shall have one manager who may be an ordinary person or a juristic person. In the case where the manager is a juristic person, such juristic person shall appoint an ordinary person to be the person acting for the juristic person in the capacity as the manager.

Section 35/1 The Manager shall not be lower than full twenty-five years old and shall not possess the following prohibitions:
(1)     Being bankrupt
(2)     An incompetent or quasi-incompetent person,
(3)     Used to be dismissed, removed or discharged from government service, government or private organization or agency on charge of misfeasance,
(4)     Used to be imprisoned by final judgment except an offence committed through negligence or petty offence,
(5)     Used to be removed from the capacity of a manager because of corruption or his conduct is detrimental or defective on morality.
(6)     Having unpaid debt being the expenses under Section 18.

In the case where the Manager is a juristic person, the person acting on behalf such juristic person in the capacity of a manager shall as well have the qualifications and shall not possess the prohibitions described under paragraph one.

Section 35 /2 The appointment of the Manager shall be in concordance with the resolution of the Joint Owner General Meeting in accordance with Section 49 and the Manager so appointed shall bring the evidences or Employment Agreement to the competent official for registration within thirty days from the date on with the Joint Owner General Meeting has passed the resolution.

Section 35/3 The Manager vacates office upon
(1)     Death or the status of being a juristic person has come to an end,
(2)     Resignation,
(3)     The period prescribed under Employment Agreement has come to an end,
(4)     Disqualification or possessing prohibitions set forth under Section 35/1,
(5)     Failure to comply with the provisions under this Act or Ministerial Regulation issued under this Act or failure to comply with a condition set forth under the Employment Agreement and that the Joint Owner General Meeting has passed a resolution for removal in accordance with Section 49.
(6)     The Joint Owner General Meeting has passed a resolution on the removal.

Section 36 The manager shall have the following powers and duties:

(1)     To carry out the work according to the objectives under Section 33 or resolution of the Regulations or resolution of the joint-owners General Meeting, however it shall not be contradictory to the law.
(2)     In the case of necessity and urgency, the Manager shall have the power by his own initiative to carry out the business for the safety of the building as a prudent person should do to his own property.
(3)     Providing security operations or taking actions in maintaining peace and order within the condominium.
(4)     Acting as a representative of the condominium corporate.
(5)     Arranging to have a monthly Receipt and Expenditure Account prepared and post it on the Bulletin Board to inform the joint owners within fifteen days from the end of the month and that such relevant Announcement shall be posted at least for a consecutive period of fifteen days.
(6)     Suing for compulsory performance from a joint owner for overdue payment of expenses under Section 18 in excess of six months and over.
(7)     Other duties prescribed under Ministerial Regulation.

The Manager shall perform his duties by own self except the business by the Regulations or the resolution of the Joint Owner General Meeting in accordance with Section 49 (2) prescribing that the other person can be assigned to work on his behalf and that the person so assigned shall be present to perform duties in accordance with time set forth under the Regulations.

Section 37 There shall be a Condominium Corporate Committee consisting of members of not less than three persons but not exceeding nine persons appointed by the Joint Owner General Meeting.

The members shall hold office for two years each term. In the case where a member vacates office prior to the expiration of term or a member is additionally appointed during which the members having already been appointed still have a term in office, the member so appointed to take place or in addition shall have a term in office equivalent to the remaining term in office of the members having already been appointed.

Upon completion of the term in office in accordance with paragraph two, if new members have not yet been appointed, the members vacating office on the expiration of the term shall continue to perform their duties until the newly appointed members assume their duties.

A member vacating office may be re-appointed but shall not be eligible to hold office exceeding two consecutive terms unless other person cannot be found to hold office.

On the appointments of the members, the Manager shall register such appointments with the competent official within thirty days from the date on which the Joint Owner General Meeting has passed a resolution on such appointments.

Section 37/1 The following persons shall be eligible for an appointment as a member:
(1)     A joint owner or his spouse,
(2)     A statutory heir, custodian or curator in the case where a joint owner is a minor, incompetent or quasi-incompetent person, as the case may be.
(3)     An agent of the condominium corporate in the case where the condominium corporate is a joint owner.

In the case where any unit’s ownership holder consist of several joint owners, only one person shall be eligible for an appointment as a member.

Section 37/2 A person eligible for appointment as a member shall not possess the following prohibitions:

(1) A minor, an incompetent or quasi-incompetent person,
(2) Used to be relieved from the position of a member by the Joint Owner General Meeting or removed from being a manager because of corruption or his conduct is detrimental or defective on morality.
(3)  Used to be dismissed, removed or discharged from a government service, government or private organization or agency on charge of misfeasance,
(4) Used to be imprisoned by final judgment except an offence committed through negligence or petty offence.

Section 37/3 In addition to vacating office on the expiration of term, a member vacates office upon

(1) Death,
(2) Resignation,
(3) Not being a person under Section 37/1 or having the prohibitions set forth under Section 37/2,
(4) The Joint Owner General Meeting has passed a resolution in accordance with Section 44, relieving him from the position.

Section 37/4 The Committee (Board) shall elect a member as the Board Chairman and may elect a member as the Board Vice Chairman.

Section 37/5 The Board Chairman shall summon members for a Board Meeting and in the case where at least two members have submitted a request for summoning a Board Meeting, the Board Chairman shall schedule the date for such Meeting within seven days from the date of receiving such request.

Section 37/6 On the Committee (Board) Meeting, there must be members of not less than a half of the total number of the members attending to Meeting to constitute a quorum.

On the Committee Meeting, if the Board Chairman is not present at the Meeting or is unable to perform his duty, the Board Vice Chairman shall preside over the Meeting as the Meeting Chairman, but, if in the absence of the Board Vice Chairman or even in his presence, however, he is unable to perform his duty, the members in attendance shall elect a member to be the Chairman of the Board Meeting.

The Meeting decision shall be on the basis of the majority of votes. In casting votes, each member shall have one vote. In the case of an equality of votes, the Meeting Chairman shall have an additional vote as the casting vote.

Section 38 The Board shall have the power and duty as follows:

(1) Monitoring control over the condominium corporate managements,
(2) Appointing a member to assume duties of the Manager of the condominium corporate in the case where there is no Manager or the Manager is unable to perform normal duties in excess of seven days.
(3) Arranging the Board Meeting to be convened at least once every six months.
(4) Other duties prescribed under Ministerial Regulation.

Section 38/1 The condominium corporate shall prepare a balance sheet at least once every twelve-month cycle which shall be deemed as accounting year of such condominium corporate.

The balance sheet under paragraph one must contain the particulars on the amount of properties and liabilities of the condominium corporate as well as receipt-expenditure account and audited by an auditor and then submitted to the Joint Owner General Meeting for approval within one hundred and twenty days from the date ending the accounting year.

Section 38/2 The condominium corporate shall prepare an annual report showing operational result for submission to the Joint Owner General Meeting together with proposing the balance sheet and that photocopies of such documents shall be forwarded to joint owners at least seven days prior to the date scheduled for the Meeting.

Section 38/3 The condominium corporate shall maintain the annual report showing the operational result and balance sheet including Bylaws at the condominium corporate office to enable the competent official or joint owners for jointly review.

The condominium corporate shall maintain the annual report showing the operational result and balance sheet under paragraph one for a period of not less than ten years from the date of receiving approval from the Joint Owner General Meeting. (http://www.samuiforsale.com)

Section 39 The juristic condominium may exercise the right of joint-owner covering all the common property in defending outside persons or demanding the return of property for the benefit of all joint-owners.

Secion 40 Joint-owners shall pay money to the juristic condominium for the carrying out of the business of juristic condominium as follows:
(1)     Expenses of juristic condominium which the owner of each apartment shall pay in advance.
(2)     Fund upon starting to do anything under the Regulations or under the resolution of the general meeting.
(3)     Other monies for the carrying out of the resolution of the general meeting under the conditions prescribed by the general meeting.

Section 41 For the purpose in the enforcement of settlement of debts arising from the expenses under Section 18, the juristic condominium shall have the preferential rights as follows:

(1) Preferential rights in connection with the expenses under Section 18, first paragraph shall be regarded as preferential rights of the same nature as the preferential rights under Section 259 (1) of the Civil and Commercial Code and over the movable property the owner of the said apartment brought into his apartment.
(2) Preferential rights concerning the expenses under Section 18, second paragraph shall be regarded as preferential rights of the same nature as the preferential rights under Section 273 (1) of the Civil and Commercial Code and over the personal property of each owner of the apartment.

Preferential rights under (2), if the manager has duly submitted the description of debt to the Competent Official, it shall be regarded a priority to the mortgage.

Section 42 The Manager shall arrange to have a General Meeting convened which shall be deemed to be the first Ordinary General Meeting within six months from the date of the registration of the condominium corporate in order that the Meeting can appoint the Board and consider for approval the Bylaws and the Manager having been registered in accordance with the application for the registration of the condominium corporate which has already been submitted.

In the case where the Ordinary General Meeting does not give the approval on the Regulations or the Manager under paragraph one, the Ordinary General Meeting shall consider the alteration or modification on such Bylaws or Manager or removal thereof and then appoint a Manager, as well.

Section 42/1 The Board shall arrange to have the Ordinary General Meeting convened once a year within one hundred and twenty days from the date ending the accounting year of the condominium corporate to undertake the following businesses:

(1) Considering for approval the balance sheet,
(2) Considering the annual report,
(3) Appointing an auditor,
(4) Considering other matters.

Section 42/2 In the case of necessity, the following persons shall have the right to summon an Extraordinary General Meeting whenever required:

(1) The Manager,
(2) The Committee by its resolution exceeding a half of the Board Meeting,
(3) Joint owners of not less than twenty percents (20%) of the total votes of the joint owners signing to make a letter requesting the Meeting to be convened for submission to the Board. In this case, the Board shall arrange to have the Meeting convened within fifteen days from the date of receiving such request. Should the Board fail to have the Meeting convened within such prescribed time, The joint owners of the aforementioned number shall have the right to arrange to have such Extraordinary General Meeting convened by themselves by appointing a person from them to be their representative in issuing letters of summoning to attend the Meeting.

Section 42/3 On summoning to the General Meeting, written letters indicating the place, date, tie and Meeting agendas and the matters to be presented to the Meeting together with reasonable details shall be made and forwarded to the joint owners at least seven days prior to the Meeting date.

Section 43 At a General Meeting, there must be the Meeting attendees with the collective votes of not less than one fourth of the total number of the votes to constitute a quorum.

In case co-owners present in the meeting do not constitute the quorum as specified in First Paragraph, a new meeting shall be convened within fifteen days from the day convening in the previous time; the latter general meeting has no enforcement that the quorum shall be constituted.

The Manager or spouse of the Manager shall be prohibited to chair the General Meeting.

Section 44 The resolution of the general meeting shall be by the majority of votes of joint-owners attending the meeting unless this Act will have providedotherwise.

Section 45 In casting of votes, each joint-owner shall have the votes according to the ration of his ownership in the common property.

If one joint-owner owner has the votes more than half of the total votes, the number of votes shall be reduced to remain equivalent to the total votes of all other joint-owners.

Section 46 Upon there being a Regulation stipulating that certain joint-owners shall pay expenses in particular, only these joint-owners shall have the right to vote in the resolutions concerning the said expenses with the number of votes of each joint-owner is entitled according to the ration prescribed in the prescribed in the Regulations under Section 18, first paragraph.

Section 47 A joint owner may give a written proxy to the other person in casting the vote on his behalf, however, a proxy shall not be permitted to receive such written proxy to cast the votes in a meeting in excess of three units.

The following persons shall be prohibited to receive a proxy to cast the vote on behalf of a joint owner:

  1. Board members and their spouses,
  2. The Manager and his spouse,
  3. Staffs or employees of the condominium corporate or contractors of the condominium corporate,
  4. Staffs or employees of the Manager in the case where the Manage is a corporate.

Section 48 A resolution on the following matters must have the votes of not less than a half of the total votes of the joint owners:

  1. A purchase of real estate or acceptance as a gift of real estate with the encumbered charge being the common property,
  2. A disposition of common property being the real estate,
  3. A permission to a joint owner to build, decorate, make a change in, alteration on or addition to his own unit at his own expenses which adversely affect the common property or the external features of the condominium,
  4. An alteration on or a change in the Bylaws relating to the use or management of the common property,
  5. An alteration on or a change in the ratio of the common expenses in the Bylaws defined under Section 32 (8),
  6. A construction deemed to be a change in, addition to or modification on the common property,
  7. An arrangement for the exploitation from the common property.

In the case where the joint owners attending a meeting does not constitute the number set forth under paragraph one, a new meeting shall be summoned within fifteen days from the date of summoning the preceded meeting and that a resolution relating to the matter provided under paragraph one in this new meeting must receive the votes of not less than one third of the joint owners’ total votes.

Section 49 A resolution relating to the following matters shall receive the votes of not less than one fourth of the joint owners’ total votes:

(1) Appointment or removal of the Manager,
(2) Stipulation on the business which the Manager has the power to assign the other person to carry out on his behalf.

Section 50 In the event of the total damage of the condominium or part of the condominium but more than half of the total number of the apartments, if the joint-owners adopt s resolution by a vote under Section 48 to construct or repair the part of the building which is damaged, the juristic condominium shall construct or repair the part of the building which is damaged to restore it to good condition.

If the condominium is damaged partly but less than half of the total number of the apartments, if the majority of the joint-owners of the damaged apartments adopt resolution to construct or repair the said damage, the juristic condominium shall construct or repair the said damage to restore it to good condition.

Expenses in the construction or repair of the damaged building which is the common property, every joint-owner of the condominium shall jointly pay according to the ratio each joint-owner has ownership in the common property. With regard to the expenses in the construction or repair of the part which is personal property it shall be borne by the owner of the said damaged apartment.

The apartment newly constructed under the first paragraph or the second paragraph shall be regarded as replacement of the original apartment and the original apartment title deed shall be regarded as the apartment title deed of the newly constructed apartment. If the details in the original apartment title deed does not correspond with those of the newly constructed apartment, the Competent Official shall have the power to make correction therefore.

If it arrives at a resolution not to construct or repair the damaged part of the building under the paragraph or the second paragraph, Section 34 shall apply mutatis mutandis.

Upon the owner of the apartment not to be constructed or repaired of the part damaged having received indemnity of the price of the common property from the joint-owners, the apartment title deed of the said apartment shall be revoked and the owner shall return it to the Competent Official within thirty days from the date of receipt of the indemnity of the price of the common property for he remark of revocation in the apartment title deed both the copy of the owner of the apartment and the copy retained at the Office of the Competent Official and the Competent Official shall publish revocation of the said apartment title deed in the Government Gazette.

 

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