Condo Living in Phuket: Juristic Person, Common Fees, Sinking Fund and Owner Rights

Who runs the building

Every Thai condominium has a juristic person that manages the common property and collects fees. Many buildings hire a professional management company to act in that role. The Act lets owners elect a committee of up to nine members, and a general meeting must be held at least once a year, though in practice meetings can be more frequent. Ask for the building's regulations before you buy, which should name the juristic person, the sinking fund and how common areas may be used.

Common fees and sinking fund

Common area fees pay for security, cleaning, lifts and shared electricity and are charged in proportion to unit area. A Thai law firm reports typical rates of about 20 to 70 baht per square metre per month, often collected a year in advance. The sinking fund is a separate one-off reserve for big repairs. One law firm quotes 400 to 600 baht per square metre, while a property site quotes 500 to 800, so check your building. Fees follow the unit, not the owner.

Votes and disputes

A law firm says an increase in common fees or the sinking fund needs a three-quarters majority of owners and registration of the amended regulations. A general meeting can also vote a special levy if the fund runs low. Unpaid fees can block a sale because the juristic person issues the debt-free certificate needed at transfer. A Thai law firm reports that the Supreme Court has held that a juristic person cannot cut water or electricity or withhold key cards to force payment and must sue instead, and that claims for fees must be filed within five years.

Before you buy or rent

• Ask for the current fee rate, last audited accounts and sinking fund balance.
• Check house rules on noise, pets and short stays, see the neighbours and noise guide.
• Check the foreign quota, see the condo buying guide.
• Renters should confirm who pays fees, see the renting guide.