How to Audit a Juristic Person When You Suspect Fraud or Financial Mismanagement

You've been paying common area fees for years, but whenever you ask where the money has gone, you receive only vague answers—or your questions are repeatedly avoided. It's completely understandable to feel uneasy in this situation.

Questioning the transparency of a juristic person is not an act of aggression or an attempt to create conflict. It is a fundamental legal right of every co-owner. Understanding how a juristic person is established and how its governance structure operates will help you identify who is responsible, what information you are entitled to review, and where to begin your investigation. This article explains the practical steps you can take, the documents you may request, and the available channels if you need to file a complaint or pursue further action.

Co-Owners' Right to Review the Juristic Person

Many property owners are unaware that they have the legal right to examine the operations of their juristic person directly.

For condominiums, the Condominium Act B.E. 2522 (1979) grants unit owners the right to access the juristic person's financial information and meeting minutes.

Similarly, for housing estates, the Land Allocation Act protects the rights of members to review the operations and records of the housing estate juristic person in much the same way. These rights are expressly recognized and protected by law.

Warning Signs That May Warrant Further Investigation

Before concluding that a juristic person has engaged in fraud or financial misconduct, it is important to first look for warning signs. Some issues may result from poor management rather than intentional wrongdoing. However, if multiple warning signs appear at the same time, it may be appropriate to conduct a more thorough investigation.

1. Unclear Financial Statements or Refusal to Provide Financial Records

A juristic person is responsible for preparing annual financial statements and reports of income and expenses for its members. If the financial reports contain vague entries, inconsistent figures, or if requests for more detailed information are repeatedly denied, this should raise legitimate concerns. A lack of financial transparency is one of the clearest warning signs that closer scrutiny may be warranted.

2. Unusually High Expenses and Non-Transparent Procurement Practices

Examples include paying disproportionately high prices for repairs to common facilities, awarding contracts without obtaining competitive quotations, or repeatedly allocating repair budgets for the same issue without a reasonable explanation. These practices may indicate potential conflicts of interest between the juristic person and its contractors, which is a common concern in cases involving suspected financial misconduct.

3. Meetings Are Not Properly Announced or Notices Are Intentionally Inadequate

The Annual General Meeting is one of the most important opportunities for co-owners to review the juristic person's operations and vote on significant matters. If meeting notices are issued with insufficient advance notice, contrary to legal requirements, meeting minutes are not made available, or meetings are conducted without adequate homeowner representation, these are circumstances that deserve careful attention and further inquiry.

4. Complaints Are Ignored or Receive No Follow-Up

If you submit a complaint but receive no updates, the original issue remains unresolved, or corrective action appears to benefit only certain individuals without a clear explanation, these may be warning signs. If this pattern occurs repeatedly, you should begin keeping detailed records as supporting evidence.

5. The Committee Refuses Access to Information

Co-owners are legally entitled to access certain information, such as meeting minutes, contracts, and financial statements. If requests for these documents are repeatedly denied or unnecessarily delayed without a valid reason, the matter should not be overlooked.

How to Begin Reviewing the Juristic Person and What Documents You Can Request

Once you notice concerning signs, the first practical step is to submit a formal request for relevant documents. Documentation forms the foundation of any further review or investigation.

Documents You May Request

As a co-owner, you are generally entitled to request certain records from the juristic person.

While the specific documents available may differ slightly between a housing estate juristic person and a condominium juristic person, depending on the applicable legislation, the underlying principle is the same: members have the right to understand how common funds are managed and how the juristic person operates.

How to Submit a Formal Document Request

Requests for documents should always be made in writing. This may take the form of a formal letter, an email with proof of delivery, or another written communication that provides evidence of both submission and receipt.

Your request should clearly identify the documents you wish to obtain and specify a reasonable deadline for the response—for example, within 15 days from the date the request is received. Always retain copies of your request together with proof that it was delivered.

If Your Request Is Refused or Ignored

If the juristic person refuses your request without providing a clear explanation, or simply fails to respond within the specified timeframe, you should document the situation in writing. Keep copies of your document request and all related delivery records, as these materials may later serve as supporting evidence if you decide to file a complaint with the appropriate authorities.

Gathering Evidence Before Filing a Complaint

A credible complaint must be supported by evidence—not merely by personal opinions or hearsay. It is also important to remember that the common area fees paid each month belong collectively to all co-owners. Gathering evidence is therefore not an act of confrontation, but rather an exercise of your legal rights.

The process should be approached patiently and systematically. The stronger and more comprehensive your evidence, the greater the likelihood that any subsequent action will be effective.

Evidence That Can Strengthen a Complaint

If you suspect financial misconduct in areas such as procurement or contractor selection, one useful form of evidence is to obtain comparable quotations from other contractors in the local area for similar work. This can help determine whether the prices paid by the juristic person are reasonable and consistent with market rates.

Collect Statements from Other Affected Homeowners

Complaints submitted on behalf of a group generally carry more weight than those filed by a single individual. Consider speaking with other co-owners who share similar concerns and collecting their names and signatures. Each participant should also describe how they have been affected by the issue.

The greater the number of affected homeowners who support the complaint, the more likely it is that the relevant authorities will give the matter serious consideration.

Where and How to File a Complaint Against a Juristic Person

Once you have gathered sufficient evidence, it is important to follow the complaint process step by step. Start with the most direct channel and escalate the matter only if it is not properly resolved.

Start by Raising the Issue Directly with the Juristic Person

The first step is to submit your evidence and concerns directly to the juristic person. Whenever possible, your complaint should be made in writing rather than communicated verbally. A formal written request provides an opportunity to resolve the issue before it escalates. If the juristic person acknowledges the problem and takes appropriate corrective action, the matter may be concluded at this stage.

Submit the Matter to the Juristic Person Committee

If discussions with the juristic person's management do not lead to a satisfactory resolution, the next step is to submit your complaint to the Juristic Person Committee, which is responsible for overseeing the performance of the juristic manager.

Your submission should include a written explanation of the issue, supporting evidence, and a request that the matter be officially recorded in the meeting minutes.

This is one of the most common approaches taken when filing complaints against a housing estate juristic person, and in many cases, disputes are addressed through this internal process before being referred to external authorities.

File a Complaint with the Relevant Government Authority

If the issue remains unresolved through the internal process, homeowners may file a complaint with the appropriate government authority. Complaints involving either a housing estate juristic person or a condominium juristic person can be submitted to the relevant agency, depending on the nature of the issue, as different authorities have different areas of responsibility.

In every case, you should bring all supporting documentation and request clear information regarding the complaint procedure and the expected processing timeline.

When Legal Action May Be Appropriate

Legal action should generally be considered only as a last resort, after other avenues have been exhausted and there is clear evidence of wrongdoing or financial loss.

Both condominium juristic persons and housing estate juristic persons may be subject to civil or criminal proceedings, depending on the nature of the alleged misconduct. Before initiating legal action, you should always consult a lawyer experienced in real estate law, as every case involves different facts and legal considerations. Proper preparation from the outset can significantly affect the outcome of the case.

The information provided in this article is intended for general informational purposes only and should not be regarded as legal advice.

Most disputes that eventually result in formal complaints do not arise overnight. Instead, they typically develop over time because information is not adequately disclosed and co-owners lack convenient access to verify how the juristic person is operating.

Well-managed and transparent juristic persons certainly exist, and transparency should not be considered exceptional—it should be the standard. When co-owners can access income and expense records, review budget expenditures, and monitor financial transactions in a timely manner, many concerns can be addressed before they develop into conflicts.

Silverman is designed to help juristic persons operate transparently from the very beginning. The platform includes a real-time accounting system with fully auditable financial records, along with comprehensive activity logs that record every action performed by staff members. For co-owners who wish to stay informed about their community, the resident application provides convenient access to project information, bill payments, maintenance requests, and communication with the juristic person anytime and anywhere.

Communities that use a transparent management platform like Silverman are far less likely to face questions about financial accountability, because the information residents need is already available within the system.

To learn more, visit silverman.app or call 08-1442-6888.