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Foreign Condominium Purchases Beyond the 49% Quota Are Void
Foreign Purchaser v Condominium Juristic Person & Developer
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
A foreign purchaser entered a purchase-and-sale agreement for a condominium unit in Thailand. The developer accepted the deposit and progress payments. At transfer, the Land Office refused to register the transfer because the building's foreign-ownership quota under Section 19 bis of the Condominium Act had already reached 49% of the total saleable floor area. The foreign purchaser sued the developer for return of monies, claiming the contract was unenforceable on the developer's part.
Legal Issue
Whether a purchase contract that, if performed, would cause a condominium building to exceed the statutory 49% foreign-ownership quota is enforceable, void, or partially enforceable; and what the foreign purchaser's remedies are.
Holding
The Supreme Court has consistently held that transfer of condominium units to foreign nationals beyond the 49% quota is void as contrary to public policy and statute. The foreign purchaser cannot obtain registration of ownership. The purchase contract is generally treated as impossible of performance in its registered form, entitling the purchaser to recover the purchase price paid (with interest in appropriate cases), but not to compel transfer.
Reasoning
Section 19 bis of the Condominium Act caps foreign ownership at 49% of total saleable floor area in any one building. The cap is a statutory rule of public order; private contract cannot override it. A developer who sells beyond the cap is unable to perform, and the purchaser is therefore released and entitled to restitution.
Significance
Defines the absolute hard limit for foreign condo ownership in Thailand. Reliable evidence of remaining foreign quota — from the condominium juristic person — should be a closing condition of every foreign-condo purchase contract.
Practical Takeaway
Before paying any deposit on a Thai condo, obtain a current foreign-quota certificate from the condominium juristic person. Include a contractual right to terminate and recover all funds if the quota is unavailable at transfer. Insist on remitting funds from abroad with a 'foreign exchange transaction form' to evidence eligibility under Section 19.
Cited Statutes
- Condominium Act B.E. 2522 (1979), Sections 19 bis, 19 quinque
- Civil and Commercial Code, Section 150 (acts contrary to public order are void)
- Civil and Commercial Code, Section 391 (restitution on rescission)
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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