Thailand condominium laws for information purposes.
Since the regulation below the new condominium act 2008 has been issued requiring standard condo sale contracts protecting consumers (article). Also read the condominium handbook with practical information about how condos in Thailand work.
CONTRACT Committee’s Declaration, considering the Condominium and Apartment Sales Business shall be the contract controlled business B.E. 2543 (A.D. 2000)
By the power vested in article 35bis of the Consumer Protection Act B.E. 2522 (1979), amended by the Consumer Protection Act., (2nd edition) B.E. 2541 (1998), the Contract Committee declares as follows:
Article 1. Condominium and Apartment Sales Business shall be the contract controlled business.
Article 2. In this Declaration: “Condominium and Apartment Sales Business” means a business involved in the sales of a unit(s) in a condominium (condo) or an apartment (apt.), that is going to be constructed; or one that is being constructed; or one that had been completely constructed and in the process of being registered; or one that had been already constructed and registered as a Condominium /Apartment.
Article 3. The contract, provided by the business owner to the consumer, must be made in Thai; easy to be seen and read; the letter used must not be less than 2 millimeters and these clauses MUST be contained in the contract:
(1) Guaranteeing that the business owner holds the ownership over the land that the condo/apt. is going to be constructed on; and promises to complete the construction and register the condo/apt.; or the condo/apt. is being constructed; or the condo/apt. is completely constructed and in the process of being registered; or the business owner holds the ownership of the unit(s) and therefore have an authority signature according to the agreement by attaching the title document or authorized document therein.
(2) Informing if there are any encumbrances with any financial institutes or any other people over the Land, the Building or the Unit(s).
(3) The Land location, Land title deed no., the total amount of the Land of the project, the map or plan showing the entirely area of the Land and the location of the condo/apt. building(s).
(4) Sales price per square meter and the total size of the sales unit.
(5) The utilized objectives of each and every area in the condo/apt., the relevant details of the Unit, the list and size of the common area and facilities.
(6) The business owner shall be responsible for income tax, specific business tax (SBT) and duty stamp with regard to the transfer of ownership. Particularly, with respect to registration fee or contract fee, the business owner and the consumer shall equally be responsible.
(7) In case that the consumer defaults on any of the payment agreed before the transfer of the ownership. The business owner shall have the right to terminate the agreement at the following terms:
(a) Default on a payment when there is only one installment.
(b) Default on three consecutive payment when there are twenty four installments or more.
(c) Default of 12.5percent from the agreed price, when there are less than 24 installments.
However, to execute such termination, the business owner must provide a written notification requesting for the overdue payment to be paid within 30 days from the date the consumer received such notification; and the consumer neglect to the said notification.
(8) The business owner, involving in the Sales of condo/apt., whether the project is in construction or will be constructed, shall include the following terms:
(8.1) description, brand, type, model, quality, size and color of materials, floor’s surface, wall’s surface, ceiling’s surface, roof, sanitary wares, door’s and window’s pane and frame, such materials should be of those particular standard. In case that the business owner could not supply such materials the replacement must be of the even or a higher standard.
(8.2) the business owner shall construct the condo/apt. precisely to the plan and list approved by the government authority and the standard of the project shall not be lower than that prescribed by the relevant Law and Regulations
(8.3) the business owner shall provide and install of all the meters for the consumption of public utilities for both in common area and each unit. The business owner shall make a payment in advance for the expenditure and fee of the installation of meters inside the unit. After the transfer of ownership and the meters into the consumer’s name and possession, the business owner shall then make request to the consumer for such advance to be refunded; the amount shall not exceed the actual payment, paid by the business owner.
(8.4) identify the project completion and transfer of ownership registration date.
(8.5) in case that the construction has to be suspended, not by business owner’s faults, the constructing period extension could be allowed; such extension shall not exceed the suspension period. For such case, the business
owner must provide the written notification to the consumer demonstrating the incident within 7 days after such incident has ended; if the business owner fails to do so, it is considered that the business owner has disclaimed the extension.
The extension period, referred above, shall not exceed 1 year; and could not be applied to the purchasing agreement that will become effective at the specific point of time.
(8.6) in case that the business owner could not or might not be able to complete the construction in time, as specified in the agreement.
a) The consumer has the right to terminate the agreement and claim for the entire money that has already been paid, including the default penalty at the same rate specified by the business owner in case of late payment from the consumer. However, the consumer still has the right to claim for any other compensation.
b) in case that the consumer decided not to execute termination of contract, the consumer has the right to fine the business owner, such fine shall not be less than 0.01 percent per day, calculating from the unit price; however, the fine claimed shall not exceed the total amount of 10 percent of the unit price. Anyway, if the consumer oversaw the possibilities that the business owner has no potential to achieve the construction on schedule, the consumer still has the right to terminate the agreement.
(8.7) if the construction could not be completed, by force majeur, the business owner must refund the entire amount of the paid money to the consumer, including the interest at the highest rate equal to the savings interest of Krung Thai Bank Plc., calculating from the paid date. Such claim will not deprive the consumer’s right to claim for any other compensation. However, it could be stated in the agreement that the reimbursed money can be deducted from the owing interest.
9) The business owner must inform, not less than 30 days period, by the written notification, to the consumer about the ownership transferred registration date.
If the consumer required, by the written notification, to execute the registration earlier than the date formerly agreed, the business owner would manage premature registration within 7 days.
10) The business owner is liable for any defects on the unit:
- a) 5-years liability from the date of condo registration for the building’s structure and components.
- b) 2-years liability from the date of condo registration for other components rather than those of a).
The business owner shall repair the wear and tear within 30 days from the date of receiving written notification of such defect from the consumer or the condo management juristic entity; only when it is urgent, the business owner must fix the defect immediately. If the business owner neglects to repair the defect then, the consumer might repair the defect by themselves, or might hire the third party to do so, in such case, the business owner must pay for those expenses.
11) According to the relevant Law and Regulations, the written notification has to be posted by registered mail to the consumer at the exact address identified in the agreement or the address that has been informed by the
latest written notification.
Article 4. The contract, provided by business owner to consumer, must be fair and just, which means the contract that is not included:
- The clauses that excuse or restrict business owner from their faults.
- The clauses that excuse or restrict business owner from defects or deprive consumer’s right to claim for any compensations; unless while signing the contract, the consumer has acknowledged, by written notification, such defects or deprivations; however, such acknowledgement is sound only when it is fair and just.
This declaration is valid from 15th September B.E 2543 (A.D 2000).