Apartments Versus Condominiums

So what’s the difference between an apartment and a condominium in Thailand?

If you’re considering investing in a building with multiple units, in most cases you have a choice between a condominium or an apartment. It’s worthwhile considering the legal differences between the two.

A condominium means the individual ownership of a unit in a building with multiple units including the land… which may also include other building components and facilities of the complex which are shared in common with the other owners of the units in the building (so-called common areas).

Condominiums are regulated by the Condominium Act.

The term ‘apartment’ is not defined by law but is also generally used to describe a unit in a building with multiple units. The important difference is that individual ownership of a unit in an apartment building is not permitted by law.

Apartments are regulated by the Civil and Commercial Code in Section 1356 and other provisions following this, and must obtain a permit as ‘Residential Building Complex’ under the Building Control Act.

In a condominium complex, foreigners are permitted to own a condominium unit in their own name, provided that not more than 49% of the total unit space of all units (not including the common areas) in the condominium complex is owned by foreigners.

In order to obtain the ownership of a condominium unit, which can be registered at the competent Land Office, the foreigner must also provide a special proof of remittance of funds into Thailand… the Foreign Exchange Transaction Form. Without this proof the Land Office will not allow the transfer of the ownership to the foreign buyer.

(continued next post)