PHUKET CONDO INVESTORS: KEY POINTS OF THE CONDOMINIUM ACT

Thailand’s Condominium Act was enacted in 1979 to allow foreigners to own a type of Thai property. Condominiums in Thailand can be “co-owned” by both foreigners and Thais. The laws governing condominium ownership are all about how the property is divided up among co-owners.

The Act aimed to limit the extent of foreign investment in each individual condo development by capping the number of foreigners owning within a given development. The permissible foreign ownership threshold was raised from 40% up to 49% in the 1999 amendment to the Act.

The 2008 amendment focused on protecting consumers. The Act requires honest marketing material, a standard purchase contract, and coverage of common area costs for unsold units. Common areas cannot be used by a developer for future development and profit. A Thai company may retain ownership of unsold units and use them to generate rental income.

Foreigners may purchase the “Thai units” on a leasehold basis. Each amendment to the Condominium Act over the years has made purchasing a condo in Thailand a more compelling investment opportunity. It is still advisable for buyers to obtain legal assistance when purchasing condominiums in Thailand.

A complete unofficial translation of the Condominium Act is available at the link below for those who are interested in more technical details: