CONDOMINIUM ACT OF THAILAND
(Allowing qualified foreigners to own condominium units in Thailand)
Our apologies for the strange language syntax. This has been translated directly from Thai and left this way in an effort to preserve the spirit of the information
The Condominium Act (No. 3) B.E. 2542 (A.D. 1999) has rendered a favorable outcome as to the issue of 100% ownership by qualified foreigners who, from now on, are eligible to own the whole units in each condominium located in some areas. Both potential foreign buyers and those seeking to sell property here will be gratified by the provisions in the long-anticipated legislation.
In the light of this Act, it is necessary that we follow upcoming provisions, rules, methods and conditions which will be issued in the form of Ministerial Regulations.
Condominium Act of 1999
Section 19 (1): Aliens and Juristic persons which the law treats as aliens may own a condominium unit if they qualify as one of the following types of aliens or juristic persons:
1. An alien who has been permitted to stay in the kingdom as a resident under the laws of immigration.
2. An alien who has been permitted to enter the Kingdom under the laws on promotion of investment.
3. A juristic person as prescribed under Sections 97 and 98 of the land code which has been registered as a juristic person under Thai law.
4. A Juristic person who is an alien under Announcement of the National Executive Council No. 281, dated 24 November B.E. 2515, and which has received a promotion certificate under the laws on promotion of investment.
5. An alien or a juristic person which the law treats as an alien which imports foreign currency into the Kingdom or withdraws money from a deposit account of Thai Baht of a person having residence abroad or withdraws money from a deposit account of foreign currency
Section 19 (2): Each condominium may have aliens and / or juristic persons as stated under section 19 take ownership of its units in total of not more than forty-nine per cent of the whole area of all units in that condominium as shown at the time the condominium was registered.
In any condominium where aliens or juristic persons as stipulated in section 19 take ownership of units in excess of the rate as prescribed by the preceding paragraph, that condominium shall be located in Bangkok, municipal or other local government areas as prescribed by Ministerial Regulations, and the area of the land on which the condominium is situated including the land available for use or for common interests of its co-owners shall not exceed five rai.
The ownership of units pursuant to the second paragraph, which is acquired by aliens or juristic persons as stated in section 19, shall be in accordance with the rules, methods and conditions prescribed by Ministerial Regulations.
Section 19 (3): To transfer ownership of a condominium unit to an alien or a juristic person as stated under Section 19, the transferor of ownership in the condominium unit shall give the names of the aliens or juristic persons as stated under Section 19 and the ratio of the area of the condominium units of which aliens and juristic persons have ownership to the competent official, and the alien or juristic person who applies to accept the transfer of ownership in the condominium unit shall provide the following evidence to the competent official:
1. An alien prescribed under Section 19(1) shall produce evidence of a permit to hold residency in the kingdom under the laws on immigration.
2. An alien prescribed under Section 19(2) shall produce evidence of a permit to enter the kingdom under the laws on promotion of investment.
3. A juristic person prescribed under Section 19(3) shall produce evidence of being registered under Thai law.
4. A juristic person prescribed under Section 19(4) shall produce evidence of being a holder of a promotion certificate under the laws on promotion of investment.
5. An alien or a juristic person as prescribed under Section 19(5) shall produce evidence of having imported foreign currency into the Kingdom or evidence of withdrawal from a deposit account of Thai Baht of a person having residence abroad or evidence of withdrawal from a deposit account of foreign currency in the amount of not less than the price of the unit to be purchased.
Section 19 (4): When a competent official who has received and checked the documents and evidence under Section 19, and has found that they are correct documents and evidence according to Section 19 and that the ratio of ownership of the area of the condominium units held by aliens or juristic persons under Section 19, also by those who have acquired ownership and by those who have applied to accept ownership, does not exceed the rate prescribed under the first paragraph of Section 19 or meets the requirements under the second and third paragraph thereof, the competent official shall register the right and juristic act concerning the condominium unit according to Chapter IV for the alien or juristic person who applied to accept ownership.
Section 19 (5) An alien or a juristic person prescribed under Section 19 shall dispose of the condominium unit under the following circumstances:
When an alien or juristic person prescribed under Section 19 has acquired a condominium unit through inheritance as legitimate heir or legatee of a will or through any other means, as the case may be, which when added to the units in that condominium already owned by aliens and/or juristic persons prescribed under Section 19, causes the ratio prescribed under the first paragraph of Section 19 to be exceeded, or does not meet the requirements under the second or third paragraph of Section 19
When a competent official who has received and checked the documents and evidence under Section 19, and has found that they are correct documents and evidence according to Section 19 and that the ratio of ownership of the area of the condominium units held by aliens or juristic person
