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Knowing the number of estates around Hua Hin, be them condos, apartments, villas etc. Can I pose a hypothetical question.
In the case where an owner or leaseholder fails to pay their management fees, what is the recourse?
I understand that the management company may be able to disconnect utilities (electricity & water) but being aware a number of owners stay overseas and rarely use their property losing utilities is not much of a deterrent. In such cases what then is the legal process to recover unpaid debts in Thailand?
This is not an exact answer to your question, but I have heard of people not paying their management fees then when trying to sell later, the management company/developer of course wouldn't assist (for example cancel a land lease an issue a new one) without the arrears being paidl in full.
Before transferring title of condo to a purchaser a, the land office will ascertain from the condominium management if there are any outstanding bills owed either to the condo or the utilities. The sale will not proceed until an arrangement has been put in place to pay any outstanding monies before the title deeds are transferred.
In the event of an owner not paying the annual or bi annual management fees, the condominium management will sue the owner for the fees, in the event of the owner still not paying, the courts will revoke the title deed back to the condominium, who will then sell the condo unit and after all fees and expenses have been paid will give what is remaining back to the owner.
I was a member of the committee of our condo in Hua Hin, and we had to do this a couple of times. One Japanese owner had been absent for many years and all attempts to contact him or his family went unanswered, eventually we took him to court and regained possession of the condo unit, which was sold at auction and the outstanding fees recovered. One Thai owner eventually paid, but it took about 3 years during which time he tried unsuccessfully to bargain the price down, he eventually paid up along with the lawyers fees incurred over the 3 years.
