A condominium in Thailand: the owners’ meeting, changing the management company and the sinking fund

In a Thai condominium the unit owners hold a meeting once a year: they vote on how the common fund is spent and can replace a management company that has served its year. The sinking fund contribution is paid once, when the unit is registered. For the first 3–5 years the developer repairs the common areas.

What does the owners' meeting decide?

The meeting is held annually. By majority vote the owners decide how the common money and the common areas are used.

An example from our closed session for brokers: residents vote to put a canopy and a roundabout on an unused patch of ground, and it is done out of the fund. An owner can take part through a representative holding a power of attorney.

Can the management company be replaced?

Yes. A management company is given the building for a year, and after that year the meeting is entitled to replace it by its own vote.

A practitioner with 12 years in the Thai market called this a strength of the Thai system: a flat owner in Dubai has no such direct lever.

What is the sinking fund?

It is a one-off contribution towards future major repairs to the building. It is paid when the unit is registered in the owner's name, along with the other fees.

For the first 3–5 years the developer usually takes care of repairs to the common areas. Later the costs come out of the fund, and the meeting decides how the money is spent.

How much does building upkeep cost?

The service charge is low and differs from building to building. By the practitioner's estimate, letting the flat for six months comfortably covers it for the whole year.

The owner's other payments are in our piece on condo taxes and costs.

Who owns the land under the building?

All the unit owners jointly, whichever quota they hold, foreign or Thai. The developer buys the plot and transfers it to the owners together with the common areas.

That is why no outside owner of the pool or the car park can turn up in a condominium. For how a condominium differs from an "apartment", see our piece on housing formats.

What decides the state of a building in 10 years' time

The management company. A building ages the way it is looked after: with good management it stays in order many years after handover.

Before buying on the resale market, it is worth finding out who manages the building and how often the company has changed.

Frequently asked questions

How often is a condominium owners' meeting held?

Once a year. You can attend in person or send a representative with a power of attorney.

Who repairs the building in the early years?

As a rule the developer, for the first 3–5 years. After that the costs are met from the sinking fund built up from owners' contributions.

Can foreign owners vote?

Yes. Unit owners, foreigners and Thais alike, jointly own the land and the common areas and settle the building's affairs by vote.