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What is the Condominium Act in Thailand?

The Condominium Act is the Thai law that lets buildings be registered as condominiums so individual units can be sold on freehold titles — and it's the law that lets foreigners own units outright within a 49% foreign-ownership quota.

The Condominium Act is the single most important piece of law for a foreign property buyer in Thailand — it's the reason foreign freehold ownership exists at all. In plain terms, it's the Act that lets a building be formally registered as a condominium, so that its individual units can be sold on their own freehold title deeds.

Crucially for overseas buyers, the Act also created the 49% foreign-ownership quota: up to 49% of the total floor area of a registered condominium may be owned freehold by foreigners, in their own names. That quota is what allows you to own a Phuket condo outright — not on a lease, not through a company, but registered to you personally — provided your purchase money is brought in from abroad and documented with a Foreign Exchange Transaction (FET) form.

The Act also sets the framework for how condominiums are run: the juristic person that manages the building, common-area rights, service charges and the sinking fund for major maintenance. Understanding it matters because it defines both what you own — your unit, plus a share of the common property — and the rules and costs that come with it. A building that isn't registered under the Act simply can't offer foreigners freehold units.

How does the Condominium Act protect foreign buyers?

It gives foreign buyers something rare in the region: genuine, registered freehold ownership in their own name, backed by a unit title deed and a defined 49% quota. Your lawyer verifies at the Land Office that the building holds a Condominium Act licence, that quota space is available, and that the unit can be transferred to you. That legal clarity — you own the unit outright, indefinitely — is a big part of why Phuket compares well to markets where foreigners can only lease.

What does the Condominium Act say about foreign ownership?

It permits foreigners to collectively own up to 49% of the total floor area of a registered condominium on a freehold basis, in their own names, with the balance held by Thais. To register the transfer, a foreign buyer must show the purchase funds were remitted from abroad via an FET form. It's a clear, well-established framework — which is why the freehold condominium is the standard route for overseas investors. See also the other structures foreigners can use.

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Common questions

What is the 49% rule in the Condominium Act?

The Act allows up to 49% of a registered condominium's total floor area to be owned freehold by foreigners, with at least 51% held by Thai nationals. If the foreign quota in a building is full, remaining units can only be sold to foreigners on a leasehold basis — so quota availability is something to check before you buy.

Does the Condominium Act apply to houses and villas?

No — it applies to registered condominium buildings and their units, not to land or standalone houses. For a villa, where land is involved, foreigners use a long registered lease, a usufruct or superficies right, or genuine company ownership. The Act is specifically what makes foreign condominium freehold possible.

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