The Condominium Act B.E. 2522 (1979) is the foundational Thai law governing condominium ownership. Every condo transaction in Thailand operates under its framework. For foreign buyers specifically, the Act’s most consequential provision is Section 19 — the 49% foreign-ownership quota per project. The Act also creates the juristic person structure, the registration framework, and the foreign-funds requirement (FET) that makes foreign condo ownership administratively distinctive.
What the Act does
Three primary functions:
1. Defines what a condominium is. A condominium is a building registered under the Act, with units in separate ownership and common areas in shared ownership. The Act specifies registration requirements, structural standards, and ownership-form rules.
2. Sets foreign ownership rules. Section 19 caps foreign-owned floor area at 49% per project. Foreign buyers must qualify under one of five sub-sections (Section 19(1)–(5)) — typically by bringing funds from abroad in foreign currency with FET documentation. Foreigners can own freehold within the quota; cannot own freehold beyond it.
3. Creates the juristic person framework. Each condominium project has a juristic person (entity) that manages common areas and shared services. The juristic person is run by an elected owners’ committee, collects CAM and sinking fund contributions, manages building services, and certifies ownership transfers.
The 49% rule (Section 19)
The most-discussed provision. Mechanics:
- Cap is 49% of total saleable floor area (square metres), not unit count
- Common areas, parking, lobbies, amenities are excluded from the calculation
- Cap is per registered project, not per developer or per building if buildings are separately registered
- Foreign buyer must bring funds from abroad in foreign currency, evidenced by FET form
- When a building reaches 49%, no further foreign freehold registrations until quota opens (foreign-owned unit sold to Thai or restructured to leasehold)
Detail: The 49% foreign quota in Thai condos — how it actually works.
The juristic person
The juristic person is created at building registration and runs the building’s collective interests. Key functions:
- Common area maintenance — pool, gym, lobby, lifts, security
- Sinking fund management — capital reserves for major repairs
- Building rules — pet policy, short-term rental policy, modification rules
- Foreign quota tracking — issues the foreign-quota letter required at ownership transfer
- Debt-free certificates — confirms unit’s CAM and sinking fund are paid current
- Annual general meetings — owner participation in governance
For foreign buyers, the juristic person’s quality is one of the largest hidden variables in condo investment. A well-run juristic produces a well-maintained building, smooth transactions, and good resale value. A poorly-run juristic produces deferred maintenance, special assessments, and resale friction.
What the Act does not cover
- Land ownership generally (that’s the Land Code)
- Leasehold mechanics (that’s the Civil and Commercial Code)
- Hotel licensing (that’s the Hotel Act 2004)
- Tax treatment (that’s the Revenue Code and the Land and Building Tax Act 2019)
For each of these, see the relevant articles: Foreign property ownership in Thailand — what you can and cannot own, Freehold vs leasehold property in Thailand — what's the difference and which to choose, Short-term rental in Thailand — Hotel Act 2004 reality and Phuket enforcement, Taxes and fees when buying property in Thailand — full 2026 breakdown.
The 75% proposal status
Since late 2024, the Pheu Thai government has floated raising the 49% foreign quota to 75%, sometimes with geographic targeting (Phuket only) or price-floor variants (units above THB 10M only). The proposals would also extend leasehold from 30 to 99 years.
Status as of 2026: not enacted. Both proposals face strong political pushback on sovereignty and Thai-affordability grounds. Plan as if 49% remains the binding rule until publication in the Royal Gazette says otherwise.
What this means for buyers
For most foreign buyers, the practical implications of the Condominium Act:
- Buy freehold within the quota where available — the cleanest foreign ownership in Thailand
- Verify foreign-quota status in writing before paying significant deposits
- Check the juristic person’s standing as part of due diligence
- Bring funds from abroad with FET — required for foreign condo registration
Detail: Foreign property ownership in Thailand — what you can and cannot own and How to buy property in Thailand — step-by-step guide for foreigners.