Thailand Law Online

Not all residential apartment buildings are condominiums registered under the Condominium Act B.E. 2522 therefore not all apartment buildings offer individual freehold ownership over the units. 

UNREGISTERED APARTMENTS ARE COMMON IN THE TOURIST AREAS OF THAILAND

In tourist resort areas such as Pattaya, Phuket and especially Koh Samui leasehold apartments are often confused with true condominiums registered under the Thailand Condominium Act. On the outside these buildings look the same but legally they cannot be compared. Buying a condominium unit registered under the Condominium Act is not the same as buying a leasehold apartment. With leasehold apartment we mean an apartment complex not registered under the Condominium Act. Leasehold apartment offer mere possession rights over part of a building and have several drawbacks which among others relate to:

• the limited rights associated with leasehold (tenancy) and limited true enforceable term of hire of property in Thailand 
• the lack of consumer protection laws and tenancy protection laws
• the owner's principle right of control over the building and common areas.

What are the main difference between a registered condominium and a unregistered leasehold apartment;

Registered condominiums

1. legally recognized government issued and administrated individual ownership title deeds 
2. the owner of the condiminium is free to sell and dispose of the condominium unit 
3. true condos offer co-ownership in the common areas, including the land on which the building sits 
4. management and control over the building lies with the unit owners jointly 
5. legally set democratic voting right system by the owners of the units on how the condo is managed 
6. condominium development is a ‘contract controlled’ business and must offer minimum consumer protection
7. the right to transfer upon death of the owner 

Leasehold apartments not registered under the Condominium Acrt

1. individual lease agreements over the units over part of the building 
2. 'selling' the unit requires cooperation of the owner of the building (landlord in the lease agreement)  
3. if any, ownership in the building and land must be created separately  
4. management and control over the building lies with the owner of the building (the landlord) 
5. the occupants of the building are basically tenants who have to comply with rules and maintenance fees set by the owner of the building 
6. the contract structure under which the leasehold apartment is sold could go either way, pro lessee or pro lessor 
7. leased properties are subject to housing and land tax
8. a lease agreement (as it is a tenancy) is terminated upon death read more...

Are leasehold residential apartments legal 

Legally there is nothing against leasehold apartments and generally these apartments are less expensive, but as a buyer of a leasehold apartment you should double or triple check the agreements involved and intention of the developer. These structures do not offer protection in the law as is offered in a licensed official condominium development project. An official government approved condo project offers government control, actual  ownership and protection under the Thailand Condominium Act and Consumer Protection laws. A leasehold apartment structure offers mere possession through a lease agreement under the Civil and Commercial Code (what is lease in Thailand) and could offer individual protection through private contracts, but could also put a negative burden on the buyer of a leasehold apartment read more...

The rule with leasehold apartments in tourist areas such as Pattaya, Hua Hin, Samui and Phuket is know what you are buying, let the 'buyer' beware and triple check the contracts involved. 

Is it a leasehold apartment or a true condominium?

If you are buying a condo off-the-plan the sale agreement will clearly mention that it is a project under the Condominium Act B.E. 2522 and that transfer of ownership will take place at the Land Department and if it concerns a leasehold or freehold purchase. In case of a true condominium each condo unit will have a government issued title deed as shown on the right. Leasehold apartment sale structures will usually involve a lease agreement and/ or maybe a share transfer and management agreement (depending on what you are offered) but not an ownership title.

House books

Each true condominium has in addition to the ownership title deed a house book (read more...). A leasehold apartment does not have a title deed but could have a separate house books stating the address of each unit, but do not confuse a house book with an ownership document, it is merely an administrative document.

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