Residents Not Paying Common Fees? What Juristic Persons Can Do Before Filing a Claim

In reality, failure to pay common fees can legally lead to a lawsuit under the law. However, filing a lawsuit immediately may not always be the best solution. This article will guide you through the tools available to juristic persons and the proper steps to take before reaching that stage.

What Happens When Residents Do Not Pay Common Fees

Common fees are funds used to maintain shared facilities and utilities such as swimming pools, elevators, security systems, and common areas. When multiple residents fail to pay, the impact goes beyond increasing debt figures—it directly affects the quality of life of all residents in the project.

In housing estates, budgets for roads, lighting, and security systems are affected. In condominiums, unpaid fees can delay maintenance of elevators or fire protection systems, directly impacting safety. It also creates unfairness in the community, as responsible residents end up bearing the burden for those who do not pay.

What Can Juristic Persons Do Before Filing a Lawsuit

Before proceeding to legal action, there are steps juristic persons should follow in sequence. These steps not only comply with proper procedures but also increase the chances of successfully collecting payments without relying on the court.

Always Start with a Formal Reminder

The first step is to issue a formal reminder. In some cases, non-payment may result from forgetfulness or not receiving the invoice. Sending at least two reminders via registered mail and digital channels reduces the likelihood of residents claiming they were not notified. Clear evidence of reminders is also valuable if legal action becomes necessary later.

Apply Penalties According to Regulations

Charging penalties for overdue common fees is a legal right of the juristic person. The rate varies by project type. For housing estates, the law allows up to 10% per year of the outstanding amount. For condominiums under the Condominium Act, Section 18/1 allows up to 12% per year for delays under 6 months and up to 20% per year for delays exceeding 6 months. It is crucial to follow the prescribed regulations strictly to avoid legal issues.

Keep Complete Records and Evidence

This step is critical but often overlooked. Proper record-keeping includes tracking outstanding balances, dates of reminders, and responses received. Juristic persons using online management applications can store all this data in one place and use it immediately as evidence if needed.

Register a Restriction with the Land Department Before Legal Action

Once sufficient evidence is collected, another important step for housing estates is to register a restriction with the Land Department to prevent the property owner from transferring ownership, selling, or mortgaging the property during the legal preparation process.

Required documents to submit to the Land Office include:

1. List of outstanding common fee payments

2. Reminder letters and demand notices

3. Communication records with residents

4. Meeting resolutions (if any)

When Should You File a Lawsuit

The decision to file a lawsuit depends on several factors. Generally, if repeated follow-ups have been made and the resident does not respond or refuses to pay without valid reason, or if the outstanding balance significantly affects project management, it is a clear sign that legal action should be considered.

Signs that it is time to begin legal proceedings include:

Outstanding payments exceeding 6 months with no response

Refusal to pay without valid reason despite communication

Accumulated debt and penalties impacting project operations

In condominium cases, the court will evaluate whether proper procedures were followed. Having complete documentation and understanding the correct process from the beginning significantly strengthens the case.

Filing a Claim for Common Fees in Housing Estates

For projects under the Land Allocation Act, filing a claim for unpaid common fees is a legal right of the juristic person. A resolution from the committee or general meeting is required. These cases are considered consumer cases and must be filed in the defendant’s jurisdiction. The advantage is that no upfront court fees are required, reducing financial burden. Juristic persons may also use debt collection and legal services to handle the entire process.

Collect all evidence of outstanding payments and reminder letters

Prepare a summary of the debt including penalties

Send a final demand letter before filing

File the lawsuit with the appropriate court

Statute of Limitations for Common Fee Claims

A common question is how long the statute of limitations is. Under the Civil and Commercial Code Section 193/33(4), the limitation period is 5 years from the filing date.

It is important not to let debts accumulate close to the limitation period, as evidence becomes harder to gather and residents may raise limitation defenses.

Common Case Examples

The following examples show how non-payment situations can be handled and the outcomes:

Condominium in Bangkok: A resident had unpaid fees for over 18 months. After repeated reminders with no response, the juristic person filed a lawsuit and won due to complete evidence.

Suburban housing estate: Multiple residents were sued simultaneously after years of accumulated unpaid fees, leading to higher legal complexity and costs.

Required Documents for Filing a Claim

A typical claim includes the following components:

Required documents include:

1. Juristic person registration certificate

2. Appointment or change of committee/manager records

3. House registration / ID of property owner

4. Juristic person regulations

5. Ownership documents (Condominium Title Deed)

6. Demand letter with EMS receipt

7. Summary of outstanding debt

Unpaid common fees in housing estates or condominiums should not lead to immediate lawsuits, but also should not be ignored. The key lies in having a proper system from the start—timely reminders, complete records, and knowing when to escalate. Silverman.app provides an all-in-one solution, from automated debt tracking with evidence collection to penalty calculation and ready-to-use reports for legal cases. When everything is systemized, the path from collection to actual payment becomes much shorter. Call 08-1442-6888, 06-5579-6844 or contact us via Line Official.