What Are Maintenance & Common Area Fees?

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Posted by Continent Property on September 22, 2022
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Maintenance & Common Area Fees Explained

One of the more common questions asked by people looking to buy property in Thailand is concerning the Maintenance and Common Area fees. So what are they?

The contributions each owner makes to support their portion of the management and maintenance of the condominium are known as Common Area Fees, Maintenance Fees, or Condominium Fees. These fees are put in place to ensure that the development runs smoothly and everything is well maintained.

These uses can include but are not limited to, lighting and light bulb replacement, swimming pool cleaning, security guards, termite and pest treatment, and accident insurance.

Each owner’s Maintenance and Common fee cost is calculated by using the size (in square meters) of their unit. This is further explained in the Condominium Act, defined as the ratio of the freehold in the common property. Unsurprisingly, the larger your condo or villa unit is, the more you will pay monthly.

What Are Maintenance And Common Area Fees?

How Often Are These Fees Paid?

This is dependent on the building or housing estate you are living in, but more often than not, fees are collected every six months or once per year.

The Thailand Condominium Act

As mentioned previously, condominium and maintenance fees are explained in Thailand’s Condominium Act under section 18. But what does that mean? The below information is taken directly from the Condominium Act.

Joint owners shall jointly share the payments of expenses incurred as a result of providing common services as well as equipment, appliances and facilities having for common utilizations and the expenses incurred as a result of the looking after, maintenance and operations of common property in accordance with the ratio of the freehold in common property under Section 14, by each joint owner or in accordance with the portion of the advantage upon the unit provided, however, that this shall be in accordance with the requirements set forth under the Regulations.

A person with freehold in the land and building under Section 6 shall be the joint owner of the unit which the ownership in it has not yet been transferred to any person and shall jointly share the payments of the expenses under paragraph one and paragraph two for such particular unit, as well.

Section 18/1 In the case where a joint owner fails to make payments set forth under Section 18 with the prescribed time, such joint owner shall pay surcharge at the rate not exceeding twelve percent (12%) per year of the amount unpaid without compound interest charging provided, however, that this shall be in accordance with the requirements set forth under the Bylaws.

A joint owner with an amount in arrears under Section 18 from six months and upwards shall pay surcharge at the rate not exceeding twenty percent (20%) per year and may be suspended from receiving common services or using common property as set forth under the By-laws including the non-existence of the right to vote in the General Meeting.

The surcharge under paragraph one shall be deemed as the expenses under Section 18.

For more information about the Condominium Act – click HERE

Maintenance & Common Area Fees Summary

While paying extra after you’ve bought your property can be seen as an inconvenience, it’s necessary to ensure that your development is well maintained and everything works as intended.

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