Condominium vs. Apartment Building
All the apartment buildings in Thailand were not created equal. There are condominiums licensed and registered under the Thailand Condominium Act and there holiday leasehold apartments as well. While they may often times look indistinguishable from one another, there are numerous major differences, especially on the legal side.
One of the major differences between the two structures lies in the ownership. Apartment buildings do not offer outright ownership over the individual units where the condominiums licensed and registered with the Land Department do. Furthermore, the condominium units must comply with the legal structure as laid down in the Condominium Act which is built around individual unit ownership, joint ownership of the common areas and joint management of the building by all the unit owners. Contrary to this, the business developers of an apartment building don’t have to follow such rules and regulations and can sell possession of the units under own terms and conditions. Please note that the ownership may or may not be sold. As a result, a potential buyer of an accommodation unit should be extra careful when choosing a property, for they might be in for a surprise if they ended up “leasing” an apartment building unit instead of owning a condominium.
Condominium Building Governance
The Condominium Act regulates the condominium buildings and its units issued in individual title deeds. The owners of the condominium can sell and dispose of them as they wish. The common areas of the building are co-owned by all unit holders. They also have the responsibility to govern the management and control of the building.
Leasehold Residential Apartments
Contrary to condominium units, units in this type of property are only let under a lease contract and lessees hold no ownership nor co-ownership of the common areas (unless specified otherwise). The owners of the building are responsible for its upkeep and management. The drawback of this type of property is that they are subject to housing and land tax. The possession under a lease agreement is fixed with a maximum of 30 years, and upon the death, it is terminated.
Need Help? Contact Us
The above information can help you buy the ideal condominium for yourself in Thailand. However, if you find yourself in some sort of trouble, contact us and we will help. We, Sunbelt Asia Legal Advisors, are a law firm in Thailand. Our team of legal and accounting experts has years of experience and extensive knowledge of the laws. We will help you in each step and process of buying a condominium or leasing an apartment in Thailand. If you want to know more about our services or want to book a free consultation with us, contact us now at (+66) 02-662-7004. Sunbelt Asia Legal Advisors can be your best partners in acquiring a property in Thailand.