Law Can Do More Harm than Good

It is never an easy thing trying to manage a condominium - you will never please everybody all the time. Things are particularly difficult because the Thai condominium law is generally a mixture of black and gray, with small pieces of black and white. I am not a qualified lawyer, but I have a vast experience in managing condominiums here in Thailand. Thai Condominium Act was written years ago and since its inception, has been amended only once with the Thai Condominium Act 2534 (1991), which basically covers only the rules on foreign ownership. However, instead of making positive changes in the law, when there was a problematic situation, rather than learning from experience, improve legislation and make it easier and more profitable for condominiums in Bangkok (there are, of course, much more condos now existed for 26 years), which has been done? That is, nothing. So if at first you do not succeed, let other people deal with the consequences. What consequences? The fact is that most developers of condominiums in Thailand are forced to break the law just to avoid bankruptcy. Over time, inflationary pressures at the end means that a building is spending more than it receives in the area of joint management committees (CAM). This means there will be funds available even for basic necessities, such as repairs, condominium painting, and cleaning. To keep things floating on top of CAM charges should be increased. While the Condominium Act itself is a little 'vague, the Land Department has confirmed that, in order to record an increase CAMfee with them, and make it a legal increase, there should be 75% or most of all condominium co-owners to approve the tax increase CAM in a general meeting. This is just almost impossible for most condominiums do. The possibility of having 75% of the joint owners in the same place at the same time for everyone to leave their social arrangements to attend a general meeting - simply can not happen. Thus, eight of the condominium does not increase your taxes CAM, and falls slowly in an abandoned, or the fees have increased CAM ignoring the rule of 75%, and the surge is not legally registered in the Land Department. What if the co-owners refused to pay the increased rates of CAM? Well, this is where Thai law makes things very difficult. Nothing can be done block. Fortunately for most condominiums, people generally want the best for the building and pay. But in some condominiums, co-owners refused to permit an increase in CAM fees, without the rule of 75% of the vote, and when the financial problems really start. The law should protect the majority of the co-owners, when in fact hurts everyone. Usually, it takes a third of all co-owners to attend a general meeting to make quorum. But the condominium law says that if you want to make changes in the Articles of Association of Condominium, raise taxes or CAM, is required for 75% of all co-owners to approve. So you can usually arrange a meeting, but can not vote on anything. What a wonderful piece of common sense it was. So remember, if you saw a condominium unit that you like, not only to buy, do some 'homework. Here are some things to consider: - Make sure the building is of sufficient income to pay their costs. Ask to see the budget. - Check that all co-owners pay their share of CAM. Not worth buying a unit if half the co-owners do not pay or can not pay. - Find out if there is any legal dispute occurring or may occur in the future, or whether banks have taken all the units. Neil Simmons, formerly of CB Richard Ellis, is co-director of Soho Properties (http://www.soho-properties.com), a leading real estate agent and location specialist for property in Bangkok.