broadvillage.com
   Main Page About Us Privacy Policy ToS Add Your Link Submit Article
Search:   

Hotels & Travel

Academics & Education

Law & Politics

Health & Hygiene

Healthcare & Treatment

Entertainment

Home Family & Garden

Shopping Online

Events & News

Outdoor & Sports

Cooking & Drinking

Culture & Art

Jobs & Careers

Online & Indoor Games

Software & Networking

Business & Services

Realty & Property

Technology & Science

Fashion & Lifestyle

Children & Teens

Automobile & Automotive

Society & Communities

Self Healing

Finance & Investment


 

  Main Page –› Realty & Property –› Property Agents
   
 

Law Can Do More Harm than Good

   

It's never an easy thing trying to manage a condominium - you'll never please all of the people all of the time. Things get particular difficult because the Thai condominium law is generally a mix of dark and light grey, with little snippets of black and white.

I'm not a qualified lawyer, but I do have extensive experience in managing condominiums here in Thailand. The Thai Condominium Act was written years ago and, since its inception, has only been modified once with the Thai Condominium Act 2534 (1991), which basically only covered rules relating to foreign ownership.

However, instead of making positive amendments to the Act when a problematic situation arose; instead of learning from experience, improving the Act and making it more user-friendly and more beneficial for condominiums in Bangkok (there are of course a whole lot more condominiums now than there were 26 years ago), what has been done? That's right, nothing. So, if at first you don't succeed, let other people deal with the consequences.

What consequences? The fact is that many condominium developers in Thailand are forced to break the law just to avoid going bankrupt.

As time goes by, inflationary pressure will eventually mean that a condominium will be spending more than it receives in common area management fees (CAM). This means that there won't be money available even for the most necessary things, like repairs, condominiums repainting, and cleaning. To avoid things going belly-up the CAM fees would need to be increased.

Although the Condominium Act itself is a bit vague, the Land Department has confirmed to me that in order to register a CAMfee increase with them, and make it a legal increase, there would need to be 75% or more of all of the condominium co- owners to approve the increase in CAM fees in a general meeting.

This is just practically impossible for most condominiums to do. The chances of having 75% of co-owners in the same place at the same time, for them all to give up their social arrangements to attend a general meeting - it just can't happen.

So, eight the condominium doesn't increase its CAM fees, and it slowly falls into a derelict state, or the CAM fees are increased ignoring the 75% rule, and the increase is not legally registered with the Land Department.

What if the co-owners refused to pay the increase in CAM fees? Well, this is where Thai law really makes things difficult. There's nothing the condominium can do.

Luckily for most condominiums, people generally want what's best for the condominium and they pay up. But in some condominiums, co-owners refuse to allow a CAM fee increase without the 75% voting rule, and that's when the financial troubles really start. The law is supposed to protect the majority of co-owners, when in reality it hurts them all.

Typically, you need one-third of all co-owners to attend a general meeting to make quorum. But the condominium Act states that if you want to make any changes to the Condominium Articles of Association, or increase CAM fees, you need 75% of all co-owners to approve. So you can normally hold a meeting, but just can't vote on anything. What a wonderful piece of common sense that was.

So remember, if you've seen a condominium unit that you like, don't just buy it, do a little homework first. Here are some things to bear in mind:

- Check that the condominium income is sufficient to pay for its expenditure. Ask to see the financial statements.
- Check that all co-owners are paying their CAM fees. It's not worth buying a unit if half the co-owners aren't paying or aren't able to pay.
- Find out if there are any legal disputes happening or likely to happen in the future, or if the banks have seized any units.

Author: Neil Simmons
 
Author Bio:
Neil Simmons is an expert on this subject. Neil has written several articles in the past on this topic.
This article can be searched using: agent, agents advertising, buyers agent, selling agent, sellers agent, agent marketing, free agent
 
 
 

Related Articles

 
Guide to Buying Real Estate For Sale By Owner
 
Home Staging 10 - Inexpensive Tips to Prepare Your Home for Sale!
 
The Real Estate Cycle
 
Paid Surveys Really Work -- If You Know Which Companies Are Legitimate
 
How I Became a Real Estate Investor
 
Seller Financing - Six Safety Tips
 
Buying and Selling Real Estate: Negotiating to Win-Win
 
Recreational Property- Choosing Your Dream Homesite
 
Market Changes Favor FSBOs
 
Low Income Housing Investments
 
 
 
 

Homes For Sale By Owner In Charlotte North Carolina

There are some benefits to selling your home yourself. By adding yours to the growing number of home ... - Ashley Andyshak
 

The Real Estate Cycle

The real estate cycle, like the business cycle, refers to the activity of the real estate market as ... - Martin Lukac
 

Why Would Anyone Want To Buy A Luxury Home In Branson, Missouri?

For years, many people from the East or West Coast snickered when Branson, Missouri was brought into ... - Donna Harper
 
 

Fraud - Beware Home Repair Schemes

Houses fall apart. All of them. And unless you're handy with tools and lumber, chances are you'll ha ... - Michael Russell
 

The Best Resource For Calgary Real Estate Properties, Listings and For Sale by Owner

If you would like the best information on Calgary property listings and for sale by owner homes chek ... - Sharon Trenaman
 

Home Buyers - Your Price, Not the Listing Price

Thanks to the media, news people in general and the political hacks who tout the minimal rise in int ... - Bill Carey
 

Designing A Clean, High-Tech & User-Friendly Real Estate Website

Many real estate websites are cluttered, unattractive and are trying to sell too many other services ... - Fred Turner
 

Unpaid Overtime - Stockbroker Lawsuits at AG Edwards, Edward Jones & Merrill Lynch

Thousands of stock brokers, brokers assistants, and financial advisors that worked at AG Edwards, Ed ... - Todd Going
 
 
Main Page Privacy Policy ToS
Copyright © 2006, www.broadvillage.com