With the continued development and proliferation of new hotels and condominiums — set against many unused or underused older office and apartment buildings in places like Bangkok and Phuket — some have wondered whether refurbishing such a pre-existing structure might be both an environmentally wise and economically prudent move for a prospective hotel or condominium developer. At the same time, there’s a common misconception that such a conversion is not possible under Thai law.
The Building Control Act (1979) (“BCA”) generally regulates the construction and use of buildings in Thailand. Unless the BCA states otherwise, any construction must be permitted by the relevant Local Administrative Office (e.g., Tessabaan or Or Bor Tor, depending on location) overseeing the area where the building is located. To obtain a building permit, the applicant must, among other things, state the building’s intended use — which is then recorded on the permit itself (e.g., “residence” for a villa, “hotel” for a hotel, “condominium” for a condominium, and so on).
So what if the owner of an office or apartment building decided he could create a far more lucrative asset by converting it into a condominium to sell as units, or into a hotel to operate as such? Is that doable in Thailand? The answer is a qualified “yes.”
Under Section 32 of the BCA and the 2009 Ministerial Regulation issued under it, certain building types are classified as subject to control over their use (a “Use Controlled Building”). This includes: any hotel, condominium, warehouse, hospital, or hazardous goods storage room; any dormitory or common residential building (such as an apartment) classified as a “Large Building”;[1] any convention hall or office building with a total floor area of 300 square meters or more; any building used for commercial purposes with a total floor area of 300 square meters or more; and any building used for industrial or educational purposes.
Section 32 further requires that, upon completion of construction of a Use Controlled Building, notice must be given to the Local Administrative Office to inspect the structure. If the inspection confirms the construction matches the building permit, permission to use the building is granted and a Certificate of Use is issued for the permitted purpose. If, however, the Local Administrative Office fails to inspect the building within 30 days of the completion notification, the owner or possessor may proceed to use — or allow others to use — the building for the purpose stated in the permit.
Additionally, Section 33 of the BCA provides that the owner or possessor of a non-Use Controlled Building must not use it, or allow it to be used, for any purpose reserved for Use Controlled Buildings. Likewise, a Use Controlled Building may not be used for any Use-Controlled purpose other than the one originally permitted — unless the Local Administrative Office grants permission for a change.
To change a non-Use Controlled Building into a Use Controlled Building, or to convert one type of Use Controlled Building into another (regardless of whether the building is yet to be constructed, under construction, or already complete), the following steps must be followed:
1. Submit the following documents to the relevant Local Administrative Office (pursuant to 1985 Ministerial Regulation No. 10 issued under the BCA):
- (a) An application to change the building’s purpose of use (Form “KHOR. 3”);
- (b) A copy of a document legally evidencing ownership or possession of the building;
- (c) A consent letter from the building’s owner, if the applicant is the possessor rather than the owner;
- (d) Any prior permit for a previous change of purpose of use, if applicable;
- (e) A signed copy of the applicant’s corporate documents (updated within the last six months) and the authorized director’s identification card, house registration, or passport, if the applicant is a company;
- (f) Five copies of the building plan;
- (g) A structural calculation report, if the change of use will decrease the building’s weight-carrying capacity;
- (h) A letter of approval and certification from the calculating engineer, along with a copy of that engineer’s Thai engineering license, if the building requires engineering control under the BCA; and
- (i) Any other supporting documents required by the Local Administrative Office.
2. The Local Administrative Office must then either issue a permit for the change of use (Form “OR. 5”) or deny it in writing with reasons, within 45 days of the application. The office may extend this deadline for up to two additional 45-day periods for reasonable cause, provided it notifies the applicant in writing of the reason for each extension.
Note that changing a building’s purpose of use to a non-controlled use does not require government permission.
Finally, it’s worth noting that obtaining a building permit and use certification is not the end of the regulatory road. Additional legal requirements apply before the building can actually be operated as a condominium or hotel — such as obtaining the requisite condominium or hotel license.
Footnote:
[1] “Large Building” means a building with a total floor area exceeding 2,000 square meters, or a building 15 meters or more in height with a total floor area exceeding 1,000 but not exceeding 2,000 square meters.