Requirements for Foreigners Purchasing Condos
The 1991 Condominium Act dictates that all expats or foreigners purchasing condos must transfer funds from overseas, in foreign currency (not Thai baht). You then need to obtain a “Foreign Exchange Transaction Form” certificate from the beneficiary bank, for each transfer. All original certificates must be presented to the Land Department to register the condominium into records.
Taxes on Condo Transfers
Individuals or other legal entities are subject to taxation on the sale of the property.
Expenses and Fees on Condo Transfer
There is a 2% (average
) transfer fee for condos which are paid either by the owner or buyer, or can be a shared expense between both parties, based on agreement.
Sinking Fund & CAM Fees
New condo projects require a buyer to pay a one-time fee upon transfer of the property to be used for major renovations and replacement of equipment when required, for building upkeep.
This does not preclude the any future CAM (common agent management) fees or annual building service maintenance fees voted in by the Condo’s AGM (annual general meeting) and JPM (juristic person manager).
Registration of an electricity meter is required for new purchases, and a transfer fee applies for any future unit sale.
Condo Ownership Terms and Definitions
AGM – Annual General Meeting used to determine regulations and initiatives for the management and maintenance of a specific condo. Each condo has its own JPM, Committee, and annual AGM for making quorum decisions (3 to 9 members)
CJP – Condominium Juristic Person
Committee – Board of Directors – 3 to 9 persons (must be an odd number) to constitute a quorum for voting on initiatives presented by its members
CO – Competent Official – a Ministry appointed officer to enforce the Condo Act via Land Office enforcement
EGM – Extraordinary General Meeting is a meeting to resolve open issues when an AGM doesn’t settle its agenda
JPM – Juristic Person Manager an AGM assigned entity of legal responsibility of a given condo
JP – Juristic Person – a delegated manager of the JPM (reportedly)
Maintenance Fund – AGM determined amount paid via CAM fees
Regulations = Condo specific rules and guidelines voted in at an AGM
Sinking Fund – A one-time assessment fee paid by the first buyers of a condo in a new building
TCL – Thai Condo Law
More on the Thai Condo Act @ThaiLaws.com >>
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