LAWS AND REGULATIONS
Definition of Condominium
According to Section 4 of the Thailand Condominium Act B.E. 2522 (1979), as amended in 2008, a “condominium” is defined as:
“A building in which individuals are entitled to separate ownership of each unit, with each unit comprising private ownership of a specific unit and joint ownership of common property.”
This definition establishes the legal foundation for condominiums in Thailand, distinguishing between two key components:
Personal Property: The privately owned condominium unit, which includes the structure exclusively designated for the unit owner.
Common Property: Shared areas and facilities jointly owned by all unit owners, such as the land the building oc cupies, hallways, elevators, recreational areas, and other communal infrastructure.
Each unit owner retains full ownership of their individual unit and holds a proportionate share of the common property, typically calculated based on the unit’s size or value relative to the entire building. This ownership structure is formalized in an “Condominium Title Deed” or “Or. Chor. 2” which record the individual ownership rights.
The Act also provides for the creation of a “Juristic Condominium,” a legal entity responsible for managing the condominium’s common property and enforcing its rules and regulations.
This legal framework supports individual ownership within a shared multi-unit environment, ensuring a balance between private rights and collective responsibility.
Foreigner and Ownership of Condominium
Foreigners may legally own condominium units in Thailand under certain conditions specified in Section 19 of the Condominium Act B.E. 2522 (1979), as amended in 2008. The key eligibility criteria include:
Possession of a Thai Residence Permit: The individual must hold a valid residence permit in accordance with Thai immigration law.
Foreign Currency Remittance: The purchaser must bring foreign currency into Thailand, or withdraw funds from a foreign currency account or a non-resident Thai baht account, in an amount at least equal to the condomini um’s purchase price.
Process of Purchase a Condominium Unit by Foreigner
To ensure that your sale and purchase transaction is fully legal and secure, a qualified lawyer should provide the following key services:
Due Diligence: Conduct a thorough investigation to verify the legitimacy of the title deed, confirm the seller’s identity, review any existing encumbrances on the property, check for outstanding common area maintenance (CAM) fees, assess the status of the foreign ownership quota, and evaluate the seller’s legal standing to identify any risks from potential creditor claims.
Sale and Purchase Agreement Review: Carefully examine the terms and conditions of the contract to ensure your interests are fully protected and that the agreement complies with all applicable Thai laws.
Ownership Transfer (Conveyancing): Manage the entire process of registering the transfer of ownership from the seller to the buyer, ensuring a smooth transaction and that legal ownership is properly and officially trans ferred to the purchaser.
Visa Requirements for Foreigner who is buying a Condominium Unit
Visa is not required for purchase property in Thailand. There is also available option to purchase the property without presence in Thailand.
Open Thai Bank Account for Foreigner who is buying a Condominium Unit
Due to strict policy of The Bank of Thailand, foreigner with short term visa is not allowed to open personal bank account in Thailand unless the foreigner already acquired the property in Thailand.
Inheritance of Condominium Unit
A foreigner may inherit a condominium from the decedent without the requirement of transferring funds from overseas, as this situation is exempt from the foreign ownership regulations under the Condominium Act.
Issuance of Yellow House Registration Book (Tabianbaan) and Pink ID (Foreigner Identification Card)
A foreigner who has purchased a condominium and holds a long-term visa is eligible to apply for a yellow house registration book and a foreigner identification card (Pink Card).
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