Is it a Phuket condo, condominium or apartment? There are two types of residential apartment buildings in Thailand (including Phuket), the ones registered and licensed under the Condominium Act B.E. 2522, and apartment building NOT registered under the Condo Act.
Condominium can refer to a true condominium registered under the Condominium Act B.E. 2522, or an apartment or apartment building NOT registered under the Condominium Act, often referred to as:
- a hotel condo,
- leasehold apartment,
- condo apartment,
- residential apartment,
- fractional ownership,
- etc.
Should you consider buying a condo in Thailand, what does it mean for you as a foreign property buyer? Are there any practical difference between condos or apartments in Thailand registered or not registered under the Condo Act?1
They look the same but legally there are major differences
A freehold apartment unit in a titled and licensed condominium project offers far more protection and ownership rights for foreign buyers than a unit in an apartment not licensed under the Condo Act. To start, unregistered apartments do not offer separate personal ownership over the apartment units in the building and joint ownership in common areas of the project.
Am I dealing with a licensed condo project or something else not registered?
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.
In case of an existing condominium each condo unit will have a title deed (as shown on the right) and transfer of ownership will take place at the local Land Department.
In other unregistered apartment buildings the sale structures will usually involve a lease agreement and/ or maybe a share transfer agreement.
Main Legal Differences
Without getting into too much details, what are the main practical differences between a licensed condo and other apartments in Thailand?
1. In an apartment NOT registered under the Condominium Act you do not get ownership over the apartment unit. This is not possible, simply because legally ownership is not separated from the building as a whole. There are no individual ownership titles.
2. In an condo apartment development NOT registered under the Condominium Act there is no automatic joint ownership by all apartment owners over the common areas of the project as is guaranteed under the Condominium Act.
3. Also democratic management of the building by all owners is NOT legally arranged in an unlicensed apartment, but is at the discretion of the seller or developer. Basically these buyers are tenants and could be stuck with high maintenance and managements costs set and charged by the owner without recourse for the tenants.
4. True condominium projects are ‘contract controlled’ and must offer minimum consumer protection for the buyers as arranged under the Condominium Act and Consumer protection Act. Unlicensed projects do not have to comply with these minimum requirements.
Legally there is nothing against apartment buildings not registered under the Condominium Act and generally they are less expensive, but as a ‘buyer’ of such an apartment you should double check the agreements involved and intention of the developer.
Resources: Buying a condominium in Thailand, Condominium House Book, Condominium Act
- In section 4 of the Condominium Act Condominium is defined as: “the building where persons are able to hold ownership separately according to the section whereby each section consist of personal ownership in the property and joint ownership in common property”. [↩]
