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A condominium juristic person helps buy a condo in Thailand for foreigners because they can legally own a freehold condo in their own name.
What is a Condominium Juristic Person?
A Condominium Juristic Person (CJP) is an entity responsible for managing and maintaining a condominium’s common areas and facilities. It acts on behalf of all condo owners to ensure the property is well-kept and the rules are followed. The CJP can be a person or a group (such as a management company), recognized by law, that handles duties like collecting fees, paying bills, and overseeing repairs and maintenance. This entity ensures the smooth operation of the condominium juristic person and represents the collective interests of the owners.
Benefits of Owning a Freehold Condo in Thailand
Condo resorts offer shared amenities like swimming pools and gyms. condominium juristic persons share the gardens and communal areas, meaning they have part ownership in all common areas and facilities.
Who Takes Care of Shared Spaces?
The role of a juristic person (CJP) handle the maintenance and upkeep of all common areas and amenities. This article explains the condominium juristic person’s role and its importance to condo owners.
What is a Juristic Person?
A condominium management can hire a juristic person who is an individual or a group (like a company) recognized by law to have specific rights and duties. In a condo, this group manages the resort on behalf of all the owners, usually including a management company and an owners’ committee.
A condominium juristic person is important for several reasons:
- Management and Maintenance: The condominium juristic person handles the day-to-day management and upkeep of the condominium’s common areas and facilities, ensuring they are clean, functional, and well-maintained.
- Legal and Financial Responsibilities: They collect maintenance fees, pay bills, manage the budget, and handle financial transactions, ensuring the condominium’s finances are in order.
- Representation: They represent the collective interests of all the condo owners in legal and administrative matters, providing a unified voice.
- Decision-Making: They facilitate decision-making processes, such as organising meetings, voting on important issues, and implementing the decisions made by the owners and committees.
- Compliance and Enforcement: They ensure compliance with the condominium’s rules and regulations and enforce them, helping to maintain order and harmony within the condominium community.
- Coordination of Major Projects: They manage major repair projects and improvements, utilising the sinking fund when necessary, and ensuring that these projects are completed efficiently and effectively.
What Does the CJP Do?
The condominium juristic person can manage the condo or appoint a manager from ourvillas. If a company is hired, it appoints a condominium juristic person to handle all management tasks, including signing documents and financial transactions.
Rights and Duties
The condominium juristic person acts on behalf of all owners to perform duties like maintaining cleanliness, collecting fees, paying bills, and keeping facilities in good condition.
Common Area Fee
Owners pay a Common Area Fee (or Maintenance Fee) to fund the upkeep of the condo resort. The fee is based on the size of each unit and can be changed by a majority vote at the Annual General Meeting (AGM).
Sinking Fund
The condominium juristic person also manages the sinking fund, used for major repairs or emergencies. A majority vote is usually needed to use or replenish this fund.
Condominium Act
The Condominium Act of 1979 outlines the laws for managing condos in Thailand. Control of the resort is handed from the developer to the condominium juristic person, manager, committee, and owners once the development is completed.
Committees
Not all condos have committees, but owners can vote to elect a committee to help manage the resort. Committee members usually serve for two years and ensure the condo is well-managed.
Voting for Foreigners
Owners may vote on issues or elect committee members. Absentee owners can vote by proxy. Some resorts may provide translations of AGM notices for foreign owners.
Condominium Rules and Regulations
Each condo has its own set of rules, which can cover topics like pet ownership, parking, noise, and rental policies. Rules are usually approved or changed at the AGM.
Ownership Ratio
The condominium juristic person ensures that no more than 49% of the condo units are owned by foreigners, as required by law.
Qualifications for CJP
The condominium juristic person must be at least 25 years old, reputable, and free of serious legal or financial issues. The Condominium Act details the condominium juristic person’s responsibilities, including maintaining common areas, managing finances, and collecting payments.
Frequently Asked Questions
What is a Condominium Juristic Person (CJP)?
A CJP is a group or person responsible for managing and maintaining the shared areas and facilities in a condo building.
Why is the CJP important?
The CJP ensures the condo is clean, safe, and well-maintained, handles finances, and represents all the condo owners in legal matters.
Who makes up the CJP?
The CJP usually includes a management company and an owners’ committee, which is a group of condo owners who help make decisions.
How does the CJP get money to maintain the condo?
The CJP collects a maintenance fee from each condo owner, based on the size of their unit. This fee is used to pay for upkeep and repairs.