“Condominium” combines the Latin roots com (“together”) and dominium (“right of ownership or property”) into a word that literally means “shared property.” This shared ownership of property—which in the condominium’s case has come to mean a large building of residential units—has been enormously popular in Bangkok and other Thai cities, and regardless of the economic situation in Thailand, condominiums continue to be attractive to Thai people and foreign investors due to their favorable locations, pleasant common spaces, access to convenient methods of transportation, and reasonable prices. The land available for “low-rise” buildings—such as detached houses, townhouses, twin houses, or commercial constructions—is expected to become progressively scarcer in urban areas, with condominiums or “high-rise” residences eventually becoming the residence of choice. Despite its advantages, living in condominiums involves the coming together of the people owning or leasing the units, so various conflicts among the owners or with the condominium juristic person are bound to arise from time to time. As a continuation of a similar discussion of condominiums that we wrote a few years ago, this article aims to provide some clarity to these issues by identifying some key elements of the legal framework governing condominiums, considering some of the more common disputes that arise, and suggesting legally sound resolutions to those disputes. Legal basics The main law governing condominiums in Thailand is the Condominium Act B.E. 2522 (1979), which establishes the following key definitions: Condominium. A building in which the ownership is divided into multiple parts consisting of individual personal properties and jointly owned common property. Personal property. A condominium unit, including constructions and land provided to each unit owner. Personal property can be divided into two main types: a “unit,” which refers to the parts of the condominium that are divided to be owned by different persons; and

COVID-19 and the resulting lockdown measures to limit outbreaks in Thailand have caused significant financial difficulties for many business operators, large and small. Whether a business is a creditor or debtor, there is a high likelihood they have faced or will face a default caused by the pandemic. This article identifies three legal options available when a party defaults—civil cases, bankruptcy actions, and business rehabilitation actions—and compares key elements associated with each option. For context, those three options are defined as follows: Civil case. A legal proceeding in which a creditor files a civil lawsuit (or arbitration claim) against a debtor for debt collection. If a debtor fails to settle a debt in accordance with a judgment, the creditor can ask the court to enforce the judgment by seizure and sale of the debtor’s assets through public auction. Bankruptcy action. A legal proceeding under the Bankruptcy Act in which a government authority can collect a debtor’s assets, sell the assets by public auction, and distribute the net proceeds among creditors. In bankruptcy proceedings, the creditors will receive repayment in proportion to the size of the outstanding debts. Business rehabilitation action. A legal proceeding under the Bankruptcy Act aimed at helping a debtor recover from insolvency and continue its business. Debtors are given debt relief and a “new start” through business rehabilitation, while creditors are able to collect a higher percentage of outstanding debt under rehabilitation than they would under a bankruptcy action. In short, a civil case is a claim in court for repayment of a specific debt, a bankruptcy action results in distribution of the debtor’s assets among the creditors, and a business rehabilitation action aims to enable the debtor to stay in business while repaying their debts to some degree. A civil case may be appropriate when

Attorneys from Tilleke & Gibbins have prepared the Thailand section of the Foreign Investment Restrictions Guide, published by Lex Mundi. The guide provides answers to key questions related to the regulatory regime for foreign investments in the jurisdictions of Lex Mundi member firms in 57 jurisdictions around the world. Each country-specific section contains in-depth information on the jurisdiction’s legal framework governing employment relationships, addressing the following questions and topics: General overview of the country’s foreign investment restrictions Sectors subject to investment restrictions Relevant thresholds, notification obligations, and approval requirements Grounds to block a foreign investment Information specific to COVID-19 and other relevant potential developments The guide draws on the expertise of Lex Mundi member firms from around the world. Its innovative format allows users to compare current information from multiple jurisdictions in a side-by-side customizable report. To browse the contributions, generate country-specific reports, and compare regulatory guidance on cross-border investment and transactional activity across multiple jurisdictions, please visit the Lex Mundi website.

A new regulation from Thailand’s Ministry of Interior grants a three-year extension for obtaining an alteration permit or a certificate to change the use of a hotel building. The eligibility period—which had been scheduled to expire on August 18, 2021—is now open until August 18, 2024. The extension was announced in the Government Gazette on August 6, 2021, after Ministerial Regulation Prescribing the Descriptions of Other Types of Buildings Which Can Be Used for a Hotel Business Operation (No. 3) B.E. 2564 (2021) was issued on August 2. The regulation, which is issued under the Building Control Act B.E. 2522 (1979), specifies which types of buildings can be used as “hotels providing accommodation only,” and which types can serve as “hotels providing accommodations and a restaurant, or a place for serving or cooking food.” This is the third such regulation, with previous versions being issued in 2016 and 2018 prescribing standards of the qualified buildings. The previous regulations set requirements for the following building features: The width of walkways in the building; The width and length of ladders; The maximum loading weight in all parts of the building; and The number of standard fire extinguishers installed on each floor. Moreover, the previous ministerial regulations stipulate that the building’s boundaries, height, space from other buildings, setback, and parking lots must comply with the building control regulations effective at the time of construction or alteration. These regulations also include requirements on additional fire alarm systems and emergency lighting system, as well as details on the fire escapes and ladders for buildings over a certain size. For more information on property and building regulations in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.