LEGAL PROBLEMS INVOLVING LEASEHOLD CONDOMINIUMIN TERMS OF THE EFFECTIVENESS OF THE LAW ENFORCEMENT
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Abstract
Because of the implementation of AEC and Government’s policy to urge and boost industrial and commercial long term investment, it results to the free flow of labour and capital come to Thailand. Owing to the restriction of law on the foreigners holding the ownership of land and the limitation of the foreign ratio to hold the ownership of freehold condominium, leasehold condominium becomes an excellent alternative for the foreigners who desire a long term living in Thailand.
Since the leasehold condominium is developed on the land which is subject to leasehold, it is not governed by Thai Condominium Act B.E. 2522 (1979). Instead, it is governed by the hire of immovable property law, section 537-574 of Thai Civil and Commercial Code. As the unique business concept of leasehold condominium, which the buyer (lessee) is required to make fully payment of the rental in advance on the date of lease registration, some provisions under Thai Civil and Commercial Code are not proper in compliance with lease of leasehold condominium. In practice, most parties negotiate some clauses differentiate from the law in order to correspond to such unique business concept; however, it does not guarantee or ensure the buyer of leasehold condominium to have properly protection by law as well as it leads to many unsolved problems.
In order to urge the economy of our country, particularly in real estate sector, and to guarantee or ensure the buyer of leasehold condominium to be properly protected by law, this thesis, therefore, studies on the foreign laws relevant to leasehold interest; the United States of America and Ontario, Canada are the countries where their legal systems have been influenced from common law system whereas the legal system of Germany and France are the root countries of civil law system. Furthermore, this thesis will suggest the legislative solutions by amending Thai Civil and Commercial Code to specify provisions regarding the lease of leasehold condominium.
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