Recent Condominium Act and the Escrow Act in Thailand

Two Acts that will probably have the most significant effect on foreign investment in Thailand, or foreigners residing in Thailand, is the recent Condominium Act and the Escrow Act. The new Condominium Act provides greater protection for buyers of condominiums in terms of giving more rights to buyers and restricting the legal loop holes of developers using brochures or other advertisements that are overreaching or exaggerate the characteristics of the condominium. In such an event, the Condominium Act provides additional means for consumers to seek redress. Other changes in the Act include a new definition for voting rights that provide greater equality between unit owners of different floor-values. The new Condominium Act has equalized the voting rights between more expensive and less expensive units, based on a pure square meter basis.

The Escrow Act has also provided a new tool for foreign and Thai consumers interested in a purchasing a condominium to protect their purchases of real estate. Previously, there was no specific structure for an escrow process for buying real estate in Thailand. The new Escrow Act provides a framework for an official escrow agent to be appointed and for consumers to voluntarily use the escrow framework and the legally sanctioned escrow agent services.