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Introduction
When an earthquake causes damage to a condominium building, affecting both private property (individual units) and common property (building structure, columns, load-bearing walls, corridors, elevators, swimming pool), co-owners and the juristic person committee should follow these guidelines in accordance with Thailand's Condominium Act B.E. 2522 (1979).
Initial Steps
1. Coordinate with Insurance Companies: If the condominium has insurance coverage, promptly file claims and maintain communication with the insurance company.
2. Seek Government Assistance: Contact local authorities or relevant government agencies for available assistance programs.
3. Establish a Special Task Force: The condominium juristic person may appoint a special committee to monitor and manage reconstruction or dissolution processes.
Legal Procedures under the Condominium Act B.E. 2522 (1979)
1. Damage Assessment and Evaluation
• Structural Engineer Inspection: The condominium juristic person should urgently hire structural engineers or experts to assess the damage (as authorized by Section 36(2), which empowers the manager to take emergency actions).
• Comprehensive Damage Assessment: Evaluate damage to both common and private property to calculate repair costs.
2. Co-owners' General Meeting
• Extraordinary General Meeting: The manager must call an extraordinary general meeting promptly (Section 42/2) to discuss the damage and possible solutions.
• Required Resolutions:
Repairs to common property (Section 48(6)) require a resolution supported by at least half of the total votes of all co-owners.
If damage is severe enough to consider dissolution, a unanimous resolution is required (Section 51(2)).
3. Repair Procedures for Non-Severe Damage
• Common Property Repair Expenses: All co-owners must contribute to repair costs in proportion to their ownership shares in the common property.
• Private Property Repair: Expenses for repairing private property are the responsibility of each individual unit owner (Sections 18 and 50 paragraph 3). The cost of constructing or repairing damaged areas that are common property shall be shared by all co-owners in proportion to their ownership of common property, while costs for private property shall be borne by the owners of the damaged units.
4. Procedures for Severe Damage Potentially Requiring Dissolution
According to Section 51, a registered condominium may be dissolved for the following reasons:
1. In cases where a juristic person has not yet been registered, the condominium registrant or the transferee of ownership of all units in the condominium, as the case may be, requests dissolution.
2. The co-owners unanimously resolve to dissolve the condominium.
3. The condominium is completely damaged, and the co-owners resolve not to reconstruct the building.
4. The entire condominium is expropriated under the law on expropriation of immovable property.
Conclusion
Whether deciding to repair or dissolve the condominium, all actions must comply with legal procedures while prioritizing the safety of residents. The condominium management must maintain transparent communication with all co-owners about costs, progress, and available options throughout the process.
Thundthornthep Yamoutai
LAS / Legal Advance Solution