Condominium Admin Handbook

Juristic Condo Admin Handbook (Thailand)

Source: Real Estate Development Office, Department of Land, Ministry of Interior

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Questions and Answers about the Manager of Juristic Condominium

Is it necessary to have the Manager in Juristic Condominium?

According to Section 35, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551, states that 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.

What are the qualifications of the Manager?

According to Section 35, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551, states that the Manager shall not be lower than full 25 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.

Who is eligible to appoint the Manager?

The first Manager shall be the person who was specified at the time of registering the condominium. Thus, the Manager so appointed is the developer’s man in fact.

Is it necessary to register the Manager with the competent official?

The law prescribes that the appointed Manager shall bring the evidences or employment agreement to the competent official for registration within 30 days from the date on with the Joint Owner General Meeting has passed the resolution.

When does the appointment of Manager become effective?

The appointment shall be effective since the resolution has been passed but it might not set up against a third person if such appointment hasn’t been registered.

What if the appointed Manager does not bring the evidences or Employment Agreement to the competent official for registration within 30 days from the date on with the Joint Owner General Meeting has passed the resolution?

The resolution passed by the Joint Owner general meeting is still effective but the Manager shall be liable for punishment of a fine not exceeding 50,000 Baht according to Section 69, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551.

When does the Manager vacate?

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.

How does the law prescribe about powers and duties of the Manager?

According to Section 36, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551, states that 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 Juristic Condominium.
  5. Arranging to have a monthly Receipt and Expenditure Account prepared and post it on the Bulletin Board to inform the Joint Owners within 15 days from the end of the month and that such relevant Announcement shall be posted at least for a consecutive period of 15 days.
  6. Suing for compulsory performance from a Joint Owner for overdue payment of expenses under Section 18 in excess of 6 months and over.
  7. Other duties prescribed under Ministerial Regulation.

Nowadays, there’s still no Ministerial Regulation prescribed about such duties.

Does the Manager have to carry out his duties by own self?

Normally, the Manager must carry out his duties by own self. However, he may assign the other person to carry out on his behalf in these 2 cases;

  1. The work stipulated by resolution of the regulations that he can assign the other person to carry out on his behalf.
  2. Receive the votes of not less than one fourth of the Joint Owners’ total votes according to Section 49 (2) stipulating the business which the Manager has the power to assign the other person to carry out on his behalf

Does the Manager have to perform his duties all the time?

The law prescribes that the Manager’s performance must be accordance with the time stipulated in the regulations. Thus, the regulations of Juristic Condominium shall specify such working period clearly.

For example: The Manager must carry out his duties in the Juristic Condominium Office from 08.30 hours to 16.30 hours.

In what case the Manager shall be liable for punishment under the Condominium Act? And how?

The Condominium Act B.E.2522, amended by Condominium Act (No.4) B.E.2551, prescribes the liability for the Manager as follows

  • In case he does not observe to issue a clear debt letter to the Joint Owner, who has already paid for the expense under Section 18, within 15 days since the Joint Owner requested.

He shall be liable for punishment of a fine not exceeding 50,000 Baht and an additional fine not exceeding 500 Baht per day throughout the period of such failure.

  • In case he fails in arranging to have a monthly Receipt and Expenditure Account prepared and post it on the Bulletin Board to inform the Joint Owners within 15 days from the end of the month and that such relevant Announcement shall be posted at least for a consecutive period of 15 days.

He shall be liable for punishment of a fine not exceeding 50,000 Baht and an additional fine not exceeding 500 Baht per day throughout the period of such failure.

  • In case he does not register an alteration on or addition to the regulations with the competent official within 30 days from the date on which the Joint Owner General Meeting has passed such resolution.

He shall be liable for punishment of a fine not exceeding 5,000 Baht.

  • In case he doesn’t bring the evidences or employment agreement to the competent official for registration within 30 days from the date on with the Joint Owner General Meeting has passed the resolution. http://samuiforsale.com.

He shall be liable for punishment of a fine not exceeding 5,000 Baht.

  • In case the Manager fails to register the appointments of the members with the competent official within 30 days from the date on which the Joint Owner General Meeting has passed a resolution on such appointments.

He shall be liable for punishment of a fine not exceeding 5,000 Baht.

  • In case the Manager fails in arranging to have the first Ordinary General Meeting within 6 months from the date of the registration of the Juristic Condominium in order that the meeting can appoint the Committee and consider for approval the regulations and the Manager having been registered in accordance with the application for the registration of the Juristic Condominium which has already been submitted.

He shall be liable for punishment of a fine not exceeding five thousand Baht.

  • The Manager may be liable for punishment regarding to Section 71 which is the punishment for any Juristic Condominium violating or failing to comply with Section 38/1, Section 38/2, and Section 38/3; and the Manager can’t prove that he takes no part in committing such offence. The Section 38/1, Section 38/2, and Section38/3 are as follows;

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

The balance sheet under paragraph one must contain the particulars on the amount of properties and liabilities of the Juristic Condominium as well as receipt-expenditure account and audited by an auditor and then submitted to the Joint Owner General Meeting for approval within 120 days from the date ending the accounting year.

Section 38/2 the Juristic Condominium 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 7 days prior to the date scheduled for the Meeting.

Section 38/3 the Juristic Condominium shall maintain the annual report showing the operational result and balance sheet including regulations at the Juristic Condominium office to enable the competent official or Joint Owners for jointly review.

The Juristic Condominium shall maintain the annual report showing the operational result and balance sheet under paragraph one for a period of not less than 10 years from the date of receiving approval from the Joint Owner General Meeting.

He shall be liable for punishment of a fine not exceeding 10,000 Baht.

Has the Condominium Act (No.4) B.E.2551 affected to the Manager who is taking this position in the time that it became effective (4th July 2008)?

The law allows such Manager to keep taking this position until the period prescribed by the regulations has come to an end or until the Joint Owner General Meeting has passed another resolution to appoint a new Manager.

As the Condominium Act (No.4) B.E.2008 has modified many regulations about appointment of the Manager from the Condominium Act B.E.2522 – i.e. the qualifications of the Manager is added. Thus, a transitory provision is provided for the Manager appointed through the Condominium Act B.E.2522 to keep taking this position until the period prescribed by the regulations has come to an end or until the Joint Owner General Meeting has passed another resolution to appoint the new Manager.

If the period prescribed by the regulation has come to an end but there is no resolution to appoint the new Manager by the Joint Owner General Meeting yet, it’s deemed that there’s no Manager in practical. Therefore, the Committee should appoint one of members to act as the Manager temporarily.

Q&A about the Condominium Committee

Is it necessary that the Juristic Condominium must provide a Juristic Condominium Committee?

In the past: The Condominium Act B.E.2522 hadn’t stipulated that the Juristic Condominium must provide the Committee. If it provides such Committee, the Committee shall consist of not exceeding of 9 persons. Moreover, the law hadn’t prescribed that such appointments shall be registered with the competent official.

Present: The Condominium Act (No.4) B.E.2551 enforced since 4th July 2008 prescribes that there shall be a Juristic Condominium Committee consisting of members of not less than 3 persons but not exceeding 9 persons

Such appointments shall be registered with the competent official within thirty days from the date on which the Joint Owner General Meeting has passed a resolution on such appointments.

The appointments shall be effective since the resolution has been passed but it might not set up against a third person if such appointments haven’t been registered.

Who are eligible for an appointment as a member?

According to Section 337/1, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551, states that 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 Juristic Condominium in the case where the Juristic Condominium is a Joint Owner.

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

How long for the term of the member?

The members shall hold office for 2 years each term. 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.

Who are eligible to act on behalf of members if the term is come to an end and the new members haven’t been appointed?

Upon completion of the term in office, 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.

Who are eligible to appoint the Committee?

The members shall be appointed by the resolution passed by the Joint Owner General Meeting regarding to Section 44 – The resolution shall be made by the majority votes of the Joint Owners attending the meeting and such meeting shall be hold by at least one forth of the total number of the votes to constitute a quorum. http://www.samuiforsale.com/index.php/miscellaneous-condominium-admin-handbook.html

Shall appointments of the Committee be registered with the competent official?

The law prescribes that such appointments shall be registered with the competent official within thirty days from the date on which the Joint Owner General Meeting has passed a resolution on such appointments.

When do the appointments become effective?

The appointments shall be effective since the resolution has been passed but it might not set up against a third person if such appointments haven’t been registered.

What if the Manager does not register such appointments passed by the Joint Owner General Meeting with the competent official within 30 days?

The resolution passed by the Joint Owner General Meeting is still effective but the Manager is liable for the punishment of violating Section 69, Condominium Act B.E.2522 amended by Condominium Act (No.4) B.E.2551, and he shall be fined not more than 5,000 Baht.

What are the qualifications of the members?

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.

What are the powers and duties of the Committee?

The Committee shall have the powers and duties as follows:

1. Monitoring control over the Juristic Condominium managements,
2. Appointing a member to assume duties of the Manager of the Juristic Condominium in the case where there is no Manager or the Manager is unable to perform normal duties in excess of 7 days.
3. Arranging the Board Meeting to be convened at least once in every 6 months.
4. Other duties prescribed under Ministerial Regulation.

Nowadays, there’s still no Ministerial Regulation prescribed about such duties.

If the Committee appoints member to assume duties of the Manager, whether such appointment shall be registered with the competent official or not?

Such appointment shall not be registered to the competent official because it’s not an appointing of the Manager; but it’s in the case the Committee appoints one member to act as the Manager (temporary) because there is no Manager or the Manager is unable to perform normal duties in excess of 7 days.

How many votes of the Joint Owners required for removal of the temporary Manager appointed by the Committee?

As such person is a Committee not the Manager, he has just been appointed by the Committee to act as the Manager in the case that;

1. There’s no Manager,
2. There’s the Manager but he is unable to perform normal duties in excess of 7 days.

Thus, when there’s an appointment of the Manager or the Manager is able to perform his normal duties; such member shall be discharged immediately without the vote for removal.

Is it eligible to change the member acting as the Manager?

It’s eligible if it’s done by the majority vote of the Committee.

In this case, the resolution passed by the majority vote of the Joint Owners shall not be applied because the law assigns this power to the Committee.

Such member shall be discharged suddenly when a resolution with the majority vote passed by the Committee to change the member acting as the Manager. Moreover, the law doesn’t prescribe that such resolution shall be registered with the competent official.

In what case the Committee shall be liable for punishment under the Condominium Act? And how?

The Condominium Act hasn’t specified any punishment for the Committee but there’s only the punishment for the board chairman in the following cases;

Case 1: The board chairman fails to summon a meeting within 7 days after receiving a request for summoning the board meeting submitted by at least 2 members.

He shall be liable for the punishment of a fine not exceeding 5,000 Baht.

Case 2: The board chairman fails to arrange the board meeting at least once in every 6 months.

He shall be liable for the punishment of a fine not exceeding 5,000 Baht.

Has the Condominium Act (No.4) B.E.2551 affected to the Committee taking this position before it became effective (4th July 2008)?

The law allows such Committee to keep taking this position until the period prescribed by the regulations has come to an end or until the Joint Owner General Meeting has passed another resolution to appoint a new Committee.

Q&A about the Juristic Condominium

What is the objective of the Juristic Condominium?

The Condominium Act prescribes that the objective of the Juristic Condominium is to manage and maintain common property such as;

1. Land on which the condominium is situated: such as; the land where the condominium is built on and also the place nearby – the land with lawn or trees planted on is deemed as the land on which the condominium is situated.
2. Land provided for mutual use or benefits: such as; car park or garden.
3. Frame structure and structures for stability and prevention and damages to the condominium: such as; pillar, foundation pile, roof, roof-deck, and wall.
4. Building or part of the building and equipment provided for mutual use or benefits: such as; garage, terrace, railing, stair way, passage between studio unit.
5. Machines and tools provided for mutual use or benefits: such as; lawn mower, lift pump, and vacuum cleaner.
6. Facilities and services provided for common use to the condominium: such as; swimming pool, ground for sports, and playground.
7. Other properties provided for mutual use or benefits: such as; elevator and garbage.

Remark: The land stated in article 1 must have only the land title deed or the Pre-occupation certificate stamped “Already put to use” as its evidence.

What is the power of the Juristic Condominium?

The Condominium Act prescribes that the Juristic Condominium 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.

Such regulations shall be examined at the local land office where the condominium is located.

Are there any punishments for the Juristic Condominium prescribed by law? In what case?

The Condominium Act B.E.2552, amended by the Condominium Act (No.4) B.E.2551, provides the punishment for the Juristic Condominium in these following 3 cases;

  • Violating or failing to comply with Section 38/1

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

The balance sheet under paragraph one must contain the particulars on the amount of properties and liabilities of the Juristic Condominium 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.

  • Violating or failing to comply with Section 38/2

Section 38/2: The Juristic Condominium 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 7 days prior to the date scheduled for the Meeting.

  • Violating or failing to comply with Section 38/3

Section 38/3: The Juristic Condominium shall maintain the annual report showing the operational result and balance sheet including Bylaws at the Juristic Condominium office to enable the competent official or Joint Owners for jointly review.

The Juristic Condominium shall maintain the annual report showing the operational result and balance sheet under paragraph one for a period of not less than 10 years from the date of receiving approval from the Joint Owner General Meeting.

Such Juristic Condominium shall be liable for punishment of a fine not exceeding 10,000 Baht.

Q&A about the Meeting

Past: The Condominium Act B.E.2522 stated that Summoning of General Meeting and Practice of Joint Owner General Meeting shall be according to the regulations stipulated by the Juristic Condominium

Present: The Condominium Act B.E.2551 prescribes provisions about Summoning of General Meeting and Practice of Joint Owner General Meeting. Thus, the Meeting must be accordance with the law; otherwise, the resolution passed by such Meeting shall have no enforcement.

Who are eligible to summon the Joint Owner General Meeting under the Condominium Act (No.4) B.E.2551?

Ordinary General Meeting

1. The Manager – In case it’s the first Ordinary General Meeting within 6 months from the date of the registration of the Juristic Condominium in order that the Meeting can appoint the Committee and consider for approval the regulations and the Manager having been registered in accordance with the application for the registration of the Juristic Condominium which has already been submitted.
2. The Committee – In case it’s the Ordinary General Meeting convened once a year within 120 days from the date ending the accounting year of the Juristic Condominium to approve the balance sheet, consider the annual report, appoint an auditor, and consider other matters.

Extraordinary General Meeting in case of necessity

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 15 days from the date of receiving such request. If the Board fails 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 their own self by appointing a person from them to be their representative in issuing letters of summoning to attend the Meeting.

How does the Condominium Act (No.4) B.E.2551 state about the practice of summoning the General Meeting?

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 7 days prior to the Meeting date.

Other important matters affecting to the other benefits which could not be presented to the Joint Owner General Meeting for the resolution or in the case of necessity (the topic was arisen in the Meeting) because of failing to comply with the provision prescribed by law that such matters shall be made and forwarded to the Joint Owners at least 7 days prior to the Meeting date.

The authorized persons who can sign in the letter of summoning to attend the Meeting are as follows;

1. The first Ordinary General Meeting – the Manager
2. An Annual Ordinary General Meeting – the Committee Chairman
3. An Extraordinary General Meeting are;
1. The Manager
2. The Committee
3. The representative of Joint Owners regarding to Section 42/2 (3)

Q&A about Quorum and Resolution

How to count the vote?

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

In case one unit is own by 2 owners, one of such owners is able to cast the vote in the Joint Owner General Meeting without being appointed as proxy and his vote shall be counted in the full ration of his ownership in the common property.

How to calculate the ration of ownership in the common property?

The Condominium Act B.E.2522 prescribed that ownership on the part of joint-ownership in common property shall be according to ratio of the price of each apartment and the total price of all apartments at the time of application for registration of condominium.

The Condominium Act (No.4) B.E.2551, enforced on 4th July 2008, prescribes that ownership on the part of joint-ownership in common property shall be according to ratio of the space of each apartment and the total space of all apartments at the time of application for registration of condominium.

Is it necessary that the Juristic Condominium registered before 4th July 2010 must change the ration of ownership in the common property when the Condominium Act (No.4) B.E. has becomes effective?

The Condominium Act (No.4) B.E.2551 provides a transitory provision to exempt the principle of the ration of ownership in the common property with the Juristic Condominium registered before this act becomes effective. Thus, the Juristic Condominium registered in accordance with the Condominium Act B.E.2522 does not need to change such ration.

How is about the Quorum of a General Meeting?

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, a new meeting shall be convened within 15 days from the day convening in the previous time; the latter general meeting has no enforcement that the quorum shall be constituted.

However, the written letters shall be made and forwarded to the Joint Owners at least 7 days prior to the Meeting date.

According to the law, who shall be the Chairman of General Meeting?

The law doesn’t prescribe about this topic but it prescribes that the Manager or spouse of the Manager shall be prohibited to be the chairman of General Meeting.

In practical, the Chairman shall be selected by the Meeting before the Meeting starts.

How does the law prescribe about the resolution of General Meeting?

Normally, the resolution of General Meeting shall be made by the majority of votes of joint-owners attending the meeting unless the law have provided otherwise.

In what case the law prescribes about the resolution of the General Meeting particularly? And how?

Section 48: The 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: The 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.

Section 51: The condominium already registered may be revoked upon any of the following reasons;

1. Joint-owners adopt the resolution unanimously to revoke the condominium.

Is it necessary that the Joint Owners must attend to the Meeting by his own self?

A Joint Owner may appoint a proxy to give the vote on his behalf by the following conditions;

1. The appointment must be made in written,
2. The proxy shall not be permitted to receive such appointment to give the votes in a meeting in excess of three units,
3. The following persons shall be prohibited to receive an appointment to give the vote on behalf of a Joint Owner:
1. Members of the Committee and their spouses,
2. The Manager and his spouse,
3. Staffs or employees of the Juristic Condominium or contractors of the Juristic Condominium,
4. Staffs or employees of the Manager in the case where the Manage is a corporate.

The law has no prescription about the form of such power of attorney. However, the power of attorney must be made in written.

Suggestion:

The power of attorney shall specify name-surname and domicile of appointer and appointee, evidence concerning to the unit, and transaction entrusted to the appointee. Signature of the appointer shall be similar to the last signature made in the last transaction with the competent official.

There must be at least 1 witness signs name in the power of attorney. In case the appointer gives finger print instead, 2 witnesses must be provided. However, the witness must certify by his signature only because finger print aren’t accepted.

In casting of vote, is there any problem if one joint-owner has the votes more than half of the total votes?

There is no problem because the law prescribes that 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.

Whether Joint Owner’s overdue payment of expenses under Section 18 shall be added up as unpaid debts under the second paragraph of Section 18/1 to deprive such Joint Owner from casting vote in the General Meeting or not?

No, the overdue payment of expenses under Section 18 regarding to the second paragraph of Section 18/1 must be only the payments under Section 18 which has been unpaid since the Condominium Act (No.4) B.E.2551 has become effective.

Whether the Joint Owner who is deprived to cast a vote in the General Meeting under the second paragraph of Section 18/1 could be counted as a Quorum or not?

Yes, he could be counted as a Quorum because the Quorum is according to the collective votes of the attendees in the Meeting and the votes are according to the ration of ownership in the common property. Even though he’s deprived from casting a vote, he still has the ration of ownership in the common property.

According to the second paragraph of Section 18/1, is it necessary to stipulate the deprivation of the Joint Owner who has overdue payments under Section 18 from 6 months and upwards in casting a vote into the regulations?

No, it’s not necessary to do so because the law has already prescribed such deprivation in the second paragraph of Section 18/1.

Q&A about expenses of the Juristic Condominium

The Condominium Act B.E.2522, amended by the Condominium Act (No.4) B.E.2551, prescribes that the Joint Owners shall jointly share the payments of expenses for the Juristic Condominium in 2 categories as follows;

1. Expenses according to Section 18

Section 18: Joint Owners shall jointly share the payments of expenses on tax and duty in accordance with the ratio of the freehold in common property under Section 14, by each Joint Owner.

Joint Owners shall jointly share the payments of expenses incurred as a result of providing common services as well as equipments, appliances and facilities  having for common utilizations and the expenses incurred as a result of the looking after, maintenance and operations of common property in accordance with the ratio of the freehold in common property under Section 14, by each Joint Owner or in accordance with the portion of the advantage upon the unit provided, however, that this shall be in accordance with the requirements set forth under the Regulations.

A person with freehold in the land and building under Section 6 shall be the Joint Owner of the unit which the ownership in it has not yet been transferred to any person and shall jointly share the payments of the expenses under paragraph one and paragraph two for such particular unit, as well.

Section 18/1: In the case where a Joint Owner fails to make payments set forth under Section 18 with the prescribed time, such Joint Owner shall pay surcharge at the rate not exceeding twelve percents (12%) per year of the amount unpaid without compound interest charging provided, however, that this shall be in accordance with the requirements set forth under the regulations.

A Joint Owner with an amount in arrears under Section 18 from six months and upwards shall pay surcharge at the rate not exceeding twenty percents (20%) per year and may be suspended from receiving common services or using common property as set forth under the By-laws including the non-existence of the right to vote in the General Meeting.

The surcharge under paragraph one shall be deemed as the expenses under Section 18

2. Expenses of carrying out the business for the Juristic Condominium according to Section 40

Section 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.

Remark:

In case the Joint Owner fails to make a payment according to Section 40, the Manager of the Juristic Condominium can’t deem it as a cause to refuse issuing a clear debt letter according to the third paragraph of Section 29 because such payment isn’t the payment that Section 18 refers to. Right of entering the case to the court shall be applied if there’re any unpaid debts.

How much could the Juristic Condominium call for surcharge and interest in the case where a Joint Owner fails to make payments of expenses according to Section 18?

This topic should be considered in 2 cases as follows;

The first case: The Condominium registered before the Condominium Act (No.4) B.E.2551 has become effective on 4th July 2008.

The Condominium Act B.E.2522 hasn’t provided a provision about surcharge and interest when a Joint Owners fails to make payments of expenses according to Section 18; thus, it should be considered from the regulations in each Juristic Condominium.

However, if there’s a dispute about the surcharge or interest, the parties has to take action to the court. It should be noticed that the surcharge and interests incurred from the overdue payment of expenses under Section 18 are not deemed as jointly expenses. Therefore, the Manager can’t add such expenses to the overdue payments under Section 18 to refuse issuing a clear debt letter regarding to Section 29.

The second case: The Condominium registered after the Condominium Act (No.4) B.E.2551 has become effective on 4th July 2008.

Surcharge and interest incurred from the jointly expenses according to Section 18 are uncollectable though the regulations stipulates that they are collectable because such regulations conflict with the Condominium registered after the Condominium Act (No.4) B.E.2551; thus, the provision in the Condominium registered after the Condominium Act (No.4) B.E.2551shall be applied. In other word, since 4th July 2010 whenever a Joint Owner fails to make payments of expenses under Section 18, the provision under Section 18/1 shall be applied as follows;

In the case where a Joint Owner fails to make payments set forth under Section 18 with the prescribed time, such Joint Owner shall pay surcharge at the rate not exceeding 12 percents (12%) per year of the amount unpaid without compound interest charging provided, however, as stipulated in the regulations.

As the provision stated above, the Juristic Condominium is entitled to collect surcharge when a Joint Owner fails to make the payments under Section 18 with the prescribed time. Such surcharge shall not exceed 12 percent per year. The Juristic Condominium can claim such surcharge less than 12 percent but can’t claim more than 12 percent. An important point is such claim for the surcharge shall be prescribed in the regulation; otherwise, it shall be uncollectable and deemed as expenses under Section 18.

A Joint Owner with an amount in unpaid debts under Section 18 from 6 months and upwards shall pay surcharge at the rate not exceeding twenty percents (20%) per year and may be suspended from receiving common services or using common property as set forth under the regulations including the non-existence of the right to vote in the General Meeting.

Such surcharge shall be deemed as the expenses under Section 18.

As the provision stated above, when a Joint Owner fails to make the payments under Section 18 from 6 months and upwards, the Juristic Condominium is entitled to collect surcharge at the rate not exceeding 20 percent per year. The Juristic Condominium can claim such surcharge less than 20 percent but can’t claim more than 20 percent. Furthermore, the law prescribes that the Juristic Condominium is entitled to suspend common services or usage of common property as well. But if the regulations haven’t stipulated such matters, the Juristic Condominium is not entitled to do so. However, though the regulations haven’t stipulated about the non-existence of the right to vote in the General Meeting, the Joint Owner shall be deprived from exercising such right because of the provision of law.

Q & A about Joint Owners

Is it able to divide the ownership of condominium unit when it’s owned by co-owners?

Whether co-owners can divide the ownership of condominium unit or not?

No, they can’t. The Condominium Act B.E.2522 prescribes that the ownership of the Condominium Unit is indivisible.

How does the Condominium Unit Owner have the ownership in the Condominium?

The owner of the Condominium Unit has the ownership in the personal property which is his own and has the joint-ownership in the common property.

What is the personal property?

1. Condominium Unit
2. Building or land provided for each Condominium Unit stated in an application for registration of condominium which may be fixed with or apart from the Condominium Unit; such as, basement, parking lot, and small garden.

Partition wall of the room dividing any apartment shall be regarded as personal or common property?

If it’s not supporting an upper level, it shall be regarded as personal property. All wall area shall be added up to the total space of the Condominium Unit.

Building-side wall partition wall exceeding air space which is also deemed as building-side wall shall be regarded as personal or common property?

They are deemed as stability structures and damage prevention for the Condominium so they’re regarded as common property.

Is it possible for personal property to be located outside the Condominium?

Yes, it’s possible i.e. parking lot.

Office of the Juristic Condominium shall be regarded as personal or common property?

Before the Condominium Act (No.4) B.E.2551 has become effective, it shall be considered how the regulations prescribe about the office.

Since Before the Condominium Act (No.4) B.E.2551 has become effective, the office shall be located in the Condominium and it’s regarded as common property.

What is regarded as Common Property?

Common Property means parts of building which is not a Condominium Unit, Land on which the condominium is situated, and Land or other property provided for mutual use or benefits.

Section 15: The following properties shall be regarded as common property:

1. Land on which the condominium is situated;
2. Land provided for mutual use or benefits;
3. Frame structure and structures for stability and prevention and damages to the condominium;
4. Building or part of the building and equipment provided for mutual use or benefits;
5. Machines and tools provided for mutual use or benefits;
6. Facilities and services provided for common use to the condominium;
7. Other properties provided for mutual use or benefits;
8. Office of the condominium juristic person;
9. Immovable property bought or acquired under Section 48 (1);
10. Structures or systems built for security operations or environmental condition conservation within the condominium: such as; fire hazard preventive system, lighting, air ventilation, air-conditioning, water drainage, waste water treatment or refuse and waste disposal.
11. Property which the money is used in accordance with Section 18 in looking after and maintenance.

How does a condominium unit have right in personal property?

The owner of property has the right to dispose, use, lease out, or create charge on the property regarding to the principal or ownership under Section 1336 of the Civil and Commercial Code. However, exercising of right always has a limitation – the last paragraph of Section 13 states that owner of the condominium unit shall not do anything to his personal property which might effect the frame structure, stability, the prevention of damages to the building or others as prescribed in the Regulations which means that the Condominium Unit Owner is restricted from using his property in the following cases;

1. Unable to do anything to his personal property which might affect the frame structure, stability, the prevention of damages to the building.
2. Unable to do the others as prescribed in the Regulations.

How does a condominium unit have right in common property?

The Condominium Unit Owner shall have use in common property but he must comply with this act and as prescribed in the regulations. Section 17 states that “management and utilization of common property shall be compliant to this act and the regulations.”

The right of each Condominium Unit Owner is the right to have use in common property but it shall be under limitations; such as, the right shall be used in accordance with an objective of property and shall not obstruct other Joint Owners in having use, and it shall be accordance with the regulations as well.

In what case a Joint Owner shall be liable under the Condominium Act (No.4) B.E.2551?

1. Violating Section 17/1

Section 17/1: In the case where a space in the condominium is set aside as a place to carry out the business, the system on entering and exiting such area shall be specifically set up in order to prevent the disturbance on the peaceful enjoyment of the Joint Owners.

No person shall be permitted to engage in any trade transactions in the condominium except it is a trade transaction in the area of the condominium designated in accordance with paragraph one.

He shall be liable for punishment of a fine not exceeding 50,000 Baht and an additional fine not exceeding 5,000 Baht per day throughout the period of such violation.

1. Whoever holding an ownership in a unit in the capacity of an owner on behalf of an alien or a corporate deemed by law to be an alien notwithstanding whether or not such alien or corporate shall have a right to hold an ownership in a unit under this Act.

He shall be liable for punishment of imprisonment not exceeding 2 years or a fine not exceeding 20,000 Baht or both.

1. Whoever failing to comply with an order of, obstructing against or failing to provide facilitation to a competent official performing duty under Section 60/1.

He shall be liable for punishment of imprisonment not exceeding 3 months or a fine not exceeding 6,000 Baht or both.

Revocation of Condominium

Is it possible to revoke the Condominium registered?

The condominium already registered may be revoked upon any of the following reasons

1. In the case where registration of juristic condominium has not yet been made, the applicant for registration of condominium or the transferee of ownership of all the apartments in the condominium, whichever the case may be, request for the revocation of condominium.
2. Joint-owners adopt the resolution unanimously to revoke the condominium.
3. The entire of the condominium being damaged and Joint Owners adopt the resolution not to build that building anew.
4. The whole of the condominium has been expropriated under the law governing the expropriation of immovable property.

If the condominium is damaged wholly and Joint Owners adopt the resolution not to build that building anew, shall the unanimous resolution from Joint Owners be required?

The law has no obvious description about this but it’s been stated in Section 50 that 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.

Thus, the unanimous resolution shall not be required for this case but the vote under Section 48 shall be applied. That is to say such resolution must receive the votes of not less than a half of the total votes of the Joint Owners.

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 15 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.

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