Is It Okay Not To Pay Common Facilities Fee at Housing Sub-Divisions or Condos

09 ม.ค. 2018 เคล็ดลับการอยู่อาศัย

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After you have made the decision to buy a condominium unit or a housing unit in a project where a juristic person management is in charge, it is an accepted fact that an unavoidable expense to be incurred is the “Common Facilities Fee” that all buyers and tenants must pay regularly every year. These common facilities fee are used to cover the costs of repair, maintenance and renovation of common facilities and areas to keep them in good condition and in working order.

Today, it must be admitted that most projects cannot collect Common Facilities Fee from all bona fide tenants, and most times the juristic persons at housing projects and condominiums hear many excuses for the refusal to pay the common facilities fee as well as the required fines in cases of delays. Most often-heard excuses are:
“I am an investor and don’t actually live here. I buy assets in many projects.”

“I have never used any common facilities, why must I pay?”

“I never knew of any common facilities fee to be collected on any specific date/time because I never received any invoice.”

“I am not satisfied with the services of staff (such as security personnel, maids, etc.)”

Those are the excuses most quoted by delinquent tenants who simply refuse to pay the common facilities fee. However, a question arises as to how would the tenants who promptly and regular pay their common facilities fees feel? Would they feel taken advantage of? What if WE also refuse to pay?

Surely, the condominium and housing projects where the ratio of the delinquent tenants is high there is a big impact on expenses that are used in the course of project management. This is because there will be long-term repercussions on projects that are not well and properly maintained, such as:

  • As the building ages, the machinery and all systems will fall into disrepair due to lack of proper maintenance up to a certain standard.
  • The value and the image of the project will decline due to neglect.
  • The project will no longer be attractive to renters and residents due to the first impression of the common areas that may have been well designed but now lack care and maintenance.
  • Loss in trust and confidence due to lax security.
  • The atmosphere is not conducive for living and has no sense of community and shared activities.

    • In addition, the refusal to pay the common facilities fee may result in penalties in accordance with the juristic person regulations and legal procedures are applicable because once a person enters into the purchase agreement and the deed transferred, that person is considered to be a joint owner of the project with duties pertaining to the rules and regulations governing the law on juristic persons and the Land Department. The basic regulation that the joint owner must be aware of without exceptions are as follow:

    Penalties for dereliction of Common Facilities Fee payment in the case of a housing estate:
    1. Late payment beyond specified date – a fine of 10-15 percent of the due amount must be paid with interest. The fine is to be specified in the juristic person rules and regulations of each project.
    2. Tardy payment for three (3) months or more – The rights to use central services or other utilities may be withheld, such as the use of keycard to enter the housing project, garbage collection service, the use of common areas namely, fitness centre, swimming pool, library, conference room, etc.
    3. Tardy payment for six (6) months – The juristic person may withhold the rights to registration and other transaction activities including the ability to sell or transfer properties.
    4. Tardy payment for over six (6) months
      5. – The juristic person may bring the case to court. (The decision to do so rests with the juristic person committee)

    Penalties for dereliction of Common Facilities Fee payment in the case of a condominium:
    1. Late payment beyond specified date – If the due is not paid within six (6) months beyond the date and time specified, a fine of not over 12 percent of the due amount must be paid immediately, if the delayed payment is over six (6) months, the fine of 20 percent of the due amount including interest must be levied. The due date for the payment of the common facilities fee depends on the payment rounds of each project, but usually are due on three (3) months / six (6) months / one (1) year.
    2. Withheld rights to vote at meetings – Tenants who are overdue on common facilities fee payment will have their voting rights withheld although they may attend meetings.
    3. Withheld “Debt-free Certification” notice – When there is a transaction or transfer of rights, the owner must pay all outstanding payments, such as for water, electricity, and common facilities fee, upon which the “Debt-free Certification” notice will be issued for use in the process at the Land Department
    4. The delinquent party may be sued in the court of law. (The decision to do so rests with the juristic person committee)

    The appointing professional management to run the juristic person of the project must have the ability to dispense the annual common facilities fee to properly manage and maintain the machinery and other assets, such as lifts, water, sewage, telephone, security, fire control, accident deterrence, traffic and environment, to ensure that all systems are fully functional, suitable and efficient to the satisfaction of the tenants, as well as the reduction in maintenance cost. All of which will lead to the appreciation of the project also through transparency in management and accountability, plus the success in growing the fund through wise investment. Therefore, the payment of the common facilities fee is not for any specific group of people, but rather for you own convenience and well-being.

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