Not all apartment buildings are registered under the Condominium Act B.E. 2522
Not all apartment buildings in Thailand are registered under the Condominium Act B.E. 2522 and not all apartments in Thailand offer freehold ownership titles over the units in the building. Only condominiums buildings registered under the Condominium Act offer individual freehold ownership unit title deeds issued by the Land Department. Apartment buildings are common in the tourist areas of Thailand.
A unit in an apartment building in Thailand not registered under the Condominium Act are generally sold under a 30-year lease, including rules and regulations and maintenance/ management contracts. The owner of the land and building sells the possession of the unit under a lease agreement. Such a lease (exceeding 3-years) must be in writing in Thai script and registered as lease over part of a building at the Land Department. The unit leased is indicated and specified in the plan of the building and must be administrated by the local Land Office (i.e. only the Land Department is the competent authority to register enforceable leases over immovable properties). Normal 'hire of property' laws apply on apartments.
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 Residential apartment buildings (opposite registered condominiums) are governed by general laws applicable since there is no specific law issued regulating apartments or apartment unit ownership. Only true registered condominiums in Thailand offer individual unit title deeds and co-ownership over the land and common areas by the foreigner and are regulated by the Thailand Condominium Acts.
The sales structure of unregistered apartment units needs close scrutiny by a reputable legal professional familiar with property law and apartment structures as purchasers of apartments do not find the same protection in the law as purchasers of true condominiums have in the Condominium Act and Comsumer Protection Act. An apartment complex is an allowed concept, however, has drawbacks and offers less protection compared to freehold ownership in a registered condominium.
It is possible for each apartment to obtain a 'Ta Bian Baan' or house registration book, however, this is an administrative document which must not be confused with an ownership title and it can't be used as proof of ownership.
A unit (not being a true condominium unit) can be sold as co-ownership in the apartment building as a whole by all the purchasers (e.g. a foreign or Thai juristic entity owns the building on behalf of the purchasers). Foreigners or foreign juristic entities are allowed to own a buildings under Thai law, however not the land it stands on. Here lies another drawback of apartment structures as the purchasers cannot have (co-)ownership in the land on which the apartment stands. In a registered condominium the unit is freehold owned (within the foreign ownership ratio) and the land is legally jointly owned by all the unit owners. In case of ownership of an apartment building as a whole (which can be 100% foreign owned), ownership over the building is generally combined with a land lease agreement in favor of the owner(s) of the building. The land lease is under present law only guaranteed for 30-years. The lease must be renewed after that period (at the descretion of the owner) or the building remains illegally upon land owned by someone else.
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Both in case of a unit lease (lease of part of a building) or ownership of the apartment building as a whole by all the purchasers the guaranteed term of possession (lease) and therefore ownership over the building upon that land is limited to 30-years (opposite to true condominium units which offer indefinite ownership rights).
Only in case of a true condominium the the apartment unit has a unit title deed issued by the Land Department. The Land Department is responsible for issuance of condominium unit title deeds and registration of transactions, including the transfer of ownership and mortgages of condominium units. In case of an unregistered apartment building the Land Department is responsible for the registration of the lease of the unit (as part of a building) or transfer of ownership of the building as a whole.
If you found an apartment you like the first thing to do is obtain the service of an independent legal professional. Make sure you understand what you are buying and signing before you hand over any money. Thailand Law Online offers professional independent legal service in Thailand. Reliable legal service in Thai and English at low prices. |
