Condominium ownership
The expenses of the condominium under section 18 of the Thailand Condominium Act relates to maintenance fees and are each owner's share in the costs incurred by the condominium juristic person in maintaining and managing the condominium. It relates to the common expenses of the condominium.
Why do owners of apartments in Thailand have to pay condo fees? Because common expenses, maintenance fees or condominium fees are the payments each owner makes to cover their share in the management and upkeep of the condominium. It covers the use of electricity in the common areas, window cleaning, pest control, pool, concierge, security, insurance, etc.. The condo fee for each owner is based on the size (square meters) of the owner's unit (the Condominium Act describes it as the ratio of the freehold in common property). Larger units in the condominium building have a higher monthly fee than the smaller sized units.
Section 18 of the Thailand Condominium Act:
Joint owners shall jointly share the payments of expenses on tax and duty in accordance with the ratio of the freehold in common property under Section 14, by each joint owner. Joint owners shall jointly share the payments of expenses incurred as a result of providing common services as well as equipment, appliances and facilities having for common utilizations and the expenses incurred as a result of the looking after, maintenance and operations of common property in accordance with the ratio of the freehold in common property under Section 14, by each joint owner or in accordance with the portion of the advantage upon the unit provided, however, that this shall be in accordance with the requirements set forth under the Regulations.
A person with freehold ownership in the land and building under Section 6 shall be the joint owner of the unit which the ownership in it has not yet been transferred to any person and shall jointly share the payments of the expenses under paragraph one and paragraph two for such particular unit, as well.
Each owner of apartments in Thailand shall pay money to the juristic condominium for the carrying out of the business of juristic condominium person as follows:
- each owner shall pay the expenses of juristic condominium in advance (monthly fees)
- each owner shall pay upon starting to do anything under the Condo Regulations or under a resolution of the General Meeting of the condominium
- each owner shall make other payments according to the resolution of the General Meeting (condominium dictatorship of the majority over the minority) under the conditions prescribed by the General Meeting.
The condo's sinking reserve fund
A reserve fund or sinking fund is set up by the condominium juristic person to cover major repairs and upgrades of the building. The reserve fund in Thailand is at the start of the existence of the condominium in Thailand a one time payment (separate from the monthly fee). This fund is meant to cover the major repairs and upgrades of the building.
