Professional services for foreign condominium investors and sophisticated condo developments

Thailand’s condominium market is one of the main drivers of foreign investments in the land of smile. The law firm assists buyers who do not see the Condominium Act and the marketing brochure as sufficient for a do-it-yourself approach. A little knowledge is a dangerous thing. With respect to condominium developments, the law firm advises on the sophisticated and tax efficient structure and advanced variations to get the condominium structured, built and sold. The non-controversial negotiation of a condominium deal is an indication of an imperfect and asymmetrical information distribution to the disadvantage of the condo buyer.

On the developer’s side, condominium developments require more and more additional features to be marketable to foreign investors. While the portion of condo purchases for self-consumption decreases, structured condominium developments gain in importance. Rental guarantees, timeshares, and fractional ownership models require sophisticated legal project management to avoid the barriers of Thailand’s foreigner legislation, the consumer protection laws and even the reclassification of the structured investment scheme as an illegal sale of securities.

Seven professional condominium services

PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property developments and acquisitions. With respect to condominium projects, the law firm advises and assists mainly in these seven areas:

#1. Acquisition of condominium units: The law firm provides comprehensive professional services in the acquisition of condominium units, mainly for foreign investors. This covers base cases, off plan cases, novation cases, resale cases, and second-hand cases.

#2. Condominium due diligence: The law firm accomplishes – in the course of a condo unit acquisition or on a stand-alone basis – comprehensive condominium due diligence examinations. 

#3. Development of condominium projects: While the condominium bubble is the talk of the Bangkok town, innovative and tax-efficient structures gain on importance. The law firm advises on rental guarantee schemes, timeshares, and fractional ownership models, as well as protected structures which take benefit from the possibilities of the Condominium Act and the underlying regulations. 

#4. Condotel projects: A condotel is the smart concept of a mixed-use property development and also known as condo-hotel, hotel-condo, condotel or (in American English) as contel. The law firm advises in the combined structuring of hotel and condominium projects.

#5. Massive investments in condominium units: The mass acquisition of condominium units is a reasonable tool for funds looking for a safe investment haven. This can be offshore money which is no longer accepted by offshore banks or cryptocurrency wealth.

#6. Litigation and representation of interests of condo buyers: Off-plan property, as well as other real estate transactions, are one of the law firm’s areas of competence, long-standing experience, and unique market reputation. Details at “Civil litigation as a continuation of sophisticated legal advice with other means“.

#7. Legal opinions and property investment reviews: The law firm provides particular transaction support and legal opinions on condominium developments for buyers, sellers. developers and other participants.