This information is for reference only and is not legal advice. Consult a licensed lawyer before any transaction.
Condominium Act
Condominium Act B.E. 2522 (1979)
The information is reviewed and updated monthly against official sources.
In short
Governs condominiums: foreigners can own units within the 49% floor-area quota using proof of inbound foreign currency.
Section 4: Definitions: condominium, unit and common property
This section sets the core terms. A condominium is a building where separate parts can be individually owned together with a shared interest in common property. A unit is the privately held portion; common property is everything else, including the land beneath the building and facilities provided for joint use by all co-owners.
Section 6: Registration of a condominium
To create a legal condominium, the owner files an application with the land official, attaching the title deed, building and unit plans, the proportion of ownership for each unit, an encumbrance certificate and draft regulations. Only after registration may units be sold and titled as separate condominium ownership.
Section 6/2 (6 bis): Mandatory public-sale contract form
Pre-sale and sale agreements between a developer and a buyer must follow the standard contract form prescribed by the Minister. Any clause that places an unfair burden on the purchaser beyond that approved form is treated as void, protecting buyers in off-plan and first-hand condominium transactions.
Section 14: Unit title document and ownership ratio
Each registered unit receives its own ownership certificate showing the floor area, the unit's share of common property and the corresponding voting and expense ratio. This document is the proof of title that the buyer registers at the Land Office and that is transferred on any future resale.
Section 17/18: Co-owners' shared expenses
Co-owners must contribute to the upkeep of common property in proportion to their ownership share. These contributions cover maintenance, utilities for shared areas, insurance and applicable taxes on common property, and form the basis of the recurring common-area charges paid by every unit owner.
Section 19: Foreigners eligible to own a unit
A foreigner may own a unit only if they fall into a permitted category: holders of permanent residence, persons admitted under investment-promotion law, qualifying juristic persons, or, most commonly, those who bring sufficient foreign currency into Thailand to pay for the unit. The category determines what evidence the buyer must submit.
Section 19/5: Foreign currency remittance route
The most used basis for foreign ownership is bringing foreign currency into Thailand, or withdrawing from a non-resident baht account or foreign-currency account. The remitted amount must equal at least the purchase price, and the buyer proves this with the bank's foreign exchange documentation when registering title.
Section 19/7 (FET / Tor.Tor.3): Foreign Exchange Transaction evidence
When registering ownership, a qualifying foreigner must present bank evidence of the inbound transfer. The receiving Thai bank issues a Foreign Exchange Transaction Form (formerly Tor.Tor.3) stating the currency, baht conversion and the stated purpose of buying a unit. Transfers of USD 50,000 or more must be reported to the Bank of Thailand.
Section 19 bis: 49 percent foreign ownership quota
Foreigners and foreign-qualifying entities combined may hold units whose floor area does not exceed 49 percent of the total saleable floor area of all units in the building, measured at registration. Once the quota is full a foreigner can take a unit only on a registered long lease (leasehold). Using a Thai company with nominee shareholders to hold a quota-exceeding unit for a foreigner is an unlawful nominee arrangement under the Foreign Business Act (section 36), exposing both parties to criminal penalties and forced divestiture.
Section 31: Creation of the condominium juristic person
When the first unit is transferred from the developer to a buyer, the condominium juristic person (nitibukkhon) must be registered at the same time. This legal entity holds and manages the common property on behalf of all co-owners and is the formal body through which the building is operated.
Section 33: Powers of the juristic person and manager
The condominium juristic person acts through a registered manager and manages common property in line with co-owner resolutions and its registered objectives. It can sue, hold funds, enforce regulations and collect charges, but its authority is limited to matters serving the maintenance and common interest of the building.
Section 40: Sinking fund and advance contributions
Beyond routine common charges, owners must pay advance contributions and a special reserve (sinking) fund established by the regulations, plus any further sums approved by a general meeting. These funds cover major repairs and capital expenditure on common property, and unpaid amounts can block transfer of a unit.
Section 29: Transfer of a unit and clearance of debts
Registering the sale of a unit requires a certificate from the juristic person confirming that the seller has no outstanding common-area charges or fund contributions. Without this debt-free certificate the Land Office will not record the transfer, which protects buyers from inheriting the previous owner's arrears.
Section 17: Rights and duties over common property
Every co-owner has the right to use common property according to its purpose and must not alter, damage or appropriate shared areas for exclusive use. Voting power and entitlement to benefits follow each owner's registered ownership ratio, balancing individual use of the unit with collective rights in the building.