Thread: Changes to Condo Act

Please note that I have not seen an English language translation of these changes. I cannot therefore say with any certainty what they really mean. Reading this article, I'm of the initial opinion that the changes are artificial. But that could just be me.

Clarity for condo owners SOMPORN THAPANACHAI
The rights of condominium buyers will be protected under an amended Condominium Act that will take effect on July 4, according to the Lands Department.

Surasith Sahasthamrangsee, the director of the department's Real Estate Promotion Office, said the new law clarified many issues that had been disputed between developers and unit buyers.

It makes developers accountable for claims made in their advertisements and imposes fines of 50,000 to 100,000 baht for violations.

Once the project is completed, the developer has to submit its brochure to the juristic person, the legal body that manages the condominium, to confirm that the finished product matches what had been claimed.

Mr Surasith said the law also set the standard for contracts and clarified that developers were responsible for the monthly common-area fees for unsold units.

If a unit holders fail to pay the fees, the juristic person can charge maximum interest per of 12% per year for one month overdue and up to 20% for payments that are six months overdue.

Regarding voting rights for the juristic person, any representative can vote on behalf of a maximum of three units. Developers must also provide an office for the juristic person.

Mr Surasith said there was concern that the new requirements did not cover projects that already had construction permits, especially with respect to the rule that developers had to create a different entrance for shops in condominium buildings in order not to disturb residents.

The new law also requires developers to specify exits from the project site to the main road.

Therefore, developers who already hold construction permits for designs that do not address the new requirement could have difficulty when they complete the building and register the establishment of a juristic person.

source: Bangkok Post : Business news

Truth be told it actually means very little by way of any rights.

I am curious William. What is the Thai equivalent to the South African Usury Act?

^Usury laws in Thailand are very strict and are regulated in a number of laws and regulations - such as Bank of Thailand rules on interest charged on credit card debt. However, the cornerstone is contained within the Civil and Commercial Code.

Reaper, here you go (provisions in the CCC)

Section 654. Interest shall not exceed 15% per year; when a higher rate of interest is fixed by the contract, it shall be reduced to 15% per year.


Section 655. Interest shall not bear interest. The parties to a loan of money may, however, agree that the interest due for not less than one year shall be added to the capital, and that the whole shall bear interest, but such agreement must be made in writing.
Commercial usage for the calculation of compound interest in current accounts, as well as in similar commercial transactions, are not governed by the forgoing paragraph.

^hhmmmmm.... How would that affect credit card debt?

Is this just for a bit more palm greasing?

Thanks William!

Originally Posted by Gerbil

^hhmmmmm.... How would that affect credit card debt?

Interest on credit cards and bank overdrafts fall under "commercial usage" and are governed by the regulations of the Bank of Thailand.

Prior to leaving Thailand late 2007, BoT regulations governing interest on credit cards was 20%. I believe, but could be wrong, that overdrafts was 18%.

These could have changed.

Originally Posted by William

Prior to leaving Thailand late 2007

So you have left Thailand - permanently?

^yes mate - I live in Sydney now

^ sure. Let me know when you are around.

Dear Sir,

Is it possible for a foreigner to get a loan from a bank in Thailand?
Thank you in advance for your help.

Best regards,
MarkyVee

^ a loan, yes. A mortgage might be a little more difficult.