With Thailand’s government’s economic development plans combined with tourism promotional campaigns for the Eastern Seaboard and Pattaya area, Pattaya had become a rapidly growing city in economic and population terms. Many residential projects, especially condominiums, are being built to support the City’s growth. A condominium project is developed by a property developer who then delivers ownership of individual residential units to individual owners and the common property to co-owners.
In order to maintain the common property, the Condominium Juristic Person is appointed to serve the purpose.
Once the condominium is completed and the occupancy commences, it is common practice for the developer to appoint a Condominium Juristic Person to manage the condominium’s common property. This appointed Juristic Person will be registered at the land office at the same time that the developer transfers the first unit to the owner at the land office.
Prior to the transfer of the first unit, despite of its non-registered title, the Condominium Juristic Person shall perform its duties to its best competence.
In order to create the most stress-free and smooth transaction and operation of the building for all parties, it is vital for a condominium developer to appoint a Condominium Juristic Person who is capable of understanding the developer’s nature of business and willing to, within their jurisdiction and without compromising the co-owners, work with the developer rather than against the developer.
Condominium Juristic Person’s objectives are to manage and maintain the common property with the power to do any acts for the benefit of these objectives. Such acts normally include collection of sinking fund and common maintenance fee, arrangement for annual balance sheet, arrangement for the maintenance and repair of the common property to ensure its good condition and efficiency, arrangement for security measures and security system management and/or any necessary measure in order to ensure the safety and prevention of perils including execution of insurance agreements and maintaining the common rights and property regarded as mutual benefit of the co-owners. It is also, by law, the duty of the Condominium Juristic Person to provide the necessary certification letters to the Land Office for the condominium unit ownership transfer and registration.
It is extremely important for the condominium and the co-owners to have a Juristic Person with a thorough knowledge of both legal and operational aspects of the Juristic Person’s roles and duties.
Once the Condominium Juristic Person’s establishment is registered at the Land Office, the Condominium Juristic Person must arrange to have a General Meeting convened which shall be deemed to be the first Ordinary General Meeting within six months from the date of such registration. The Agenda of this meeting is to appoint the Condominium Committee and consider for approval the Rules and Regulations and the Condominium Juristic Manager. The Committee shall arrange to have the Ordinary General Meeting convened once a year within one hundred and twenty days from the date ending the accounting year to consider for approval of the balance sheet, annual report, auditor appointment and other business.
As 49 per cent of the ownership of condominium is allowed for foreigners, there is quite a substantial amount of interaction and communication between the Condominium Juristic Person and the co-owners that require English language skills. Not being able to communicate with the Condominium Juristic Person, who is in charge of your benefit, is a living nightmare.
You can avoid this by selecting the team with business-level English communication and mediation skills.
At Pattaya Business Alliance, we have solid teams with extensive experience and proven track records who are willing to assist you every step of the way.
Contact us on 092 280 3638 or i[email protected] for a non-obligation discussion.
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