Common Area Fees - Late Payment Penalties for Common Area Fees: Is It Possible Not to Pay?

Living in a condominium or a housing estate involves paying "common area fees," which are used to maintain shared facilities. So, what are the consequences of not paying these fees, and can you avoid paying late penalties? Today, YOOHOO will provide answers.

Before diving into the impact of not paying, let's clarify what common area fees are. These fees are collected by the legal entity of the project from residents or owners to maintain common areas and facilities, such as water and electricity for common areas, security staff salaries, cleaning services, equipment repairs, and the administrative staff's wages. They are collected as follows:

1. Collected from all residents, regardless of whether they live there or use the facilities.
2. Fees are calculated based on the area of the unit/house. For example:
   1. Housing estate common area fee: 40 THB/square wah/month (100 square wah house = 4,000 THB/month).
   2. Condo common area fee: 40 THB/square meter/month (30 square meter unit = 1,200 THB/month).
3. Fees are collected in advance, typically 1-2 years for condos and 2-5 years for houses.

What happens if you don’t pay the fees?

If the legal entity cannot collect enough common area fees, there will be insufficient budget for maintenance, which can result in:

• Deterioration of common areas and facilities, including inadequate security.
• Increased repair costs due to irregular maintenance, causing equipment to break down faster.
• Decline in property value, making it harder to sell or rent out at a good price.

Can you avoid paying common area fees?

The answer is NO, for two main reasons:

1. The purchase contract for the house/condo typically includes a clause stating that the owner is obligated to pay common area fees, which is agreed upon when signing the contract.
2. There are legal consequences for unpaid fees. According to the Land Allocation Act (Amendment No. 2) B.E. 2558 (2015), the legal entity managing the project has the right to suspend services to owners who default on their payments and can take legal action to enforce payment.

If you choose not to pay, the legal entity has the authority to impose penalties and restrict various rights, depending on the policies of the specific project.

Paying common area fees is crucial for maintaining the quality of life and environment in the community. Non-payment can lead to legal issues and disrupt the well-being of everyone in the project. Upholding shared responsibilities ensures peaceful and quality living. If you are unable to pay, it is best to negotiate with the legal entity to find a solution together.