Dept wants CAM fee removed from forced sales
The Legal Execution Department has proposed amending the Condominium Act so the outstanding common-area management fee for condominium sales does not apply to incidents where it initiates forced sales, said Jones Lang LaSalle (Thailand) managing director
The act mandates that the fee must be settled with the condominium juristic person (the theoretical owner of the complex) prior to a condo unit being transferred to its new owner.
Financially hurt
Suphin warned that while the proposed amendment should as planned help facilitate the sale of condos auctioned off by the department, it could financially hurt the condominium juristic person.
She said many prospective buyers avoided properties in which they would have to pay the fee and subsequent surcharge for the previous owner’s late payment.
The department had also said that it should be the juristic person’s responsibility to chase the outstanding fee from the previous owner.
Suphin said the juristic person committee could file a lawsuit, but this was the least preferred option as it was generally a costly and time-consuming process.
She said the non-payment became a bad debt and a financial burden to the juristic person and this could put the condominium at risk if the debt grows.
JLL expects the proposed amendment to have a limited impact on condominiums it manages as these are predominantly in the high-end segment, where non-payment of the fee is not as much of an issue as in the other segments.
