Legal Issues in the Claiming of Preferential Right on Account of Preservation of Immovable Property for Expenses under the Land Development Act B.E. 2543

Abstract

This research article examines the legal issues surrounding the claim of preferential rights for expenses related to the preservation of immovable property under the Land Development Act B.E. 2543. The issue arises because land developers and developed-estate juristic entities cannot claim debts with preferential rights prior to mortgagees, and auction proceeds from subdivided developed land of delinquent payers are not reserved for land developers.

This article employs comparative documentary research to examine the claiming of common property expenses within Thai law, in comparison with the laws of the United States (Florida, Nevada, and North Carolina), the United Kingdom, Malaysia, and the Condominium Act B.E. 2522.

The study finds that in Malaysia, the land developer is responsible for maintaining the estate before the juristic entity is established, with clearly defined responsibilities for each party. In contrast, the United States and the United Kingdom establish juristic entities at the outset. Specifically, in Florida and North Carolina, the juristic entity unilaterally records a lien on delinquent developed land for unpaid debt. Furthermore, in both Florida and Nevada, juristic entities have the right to receive portions of debt repayment prior to mortgagees, consistent with the Condominium Act B.E. 2522. Therefore, this research proposes amending Section 50 and 53 of the Land Development Act B.E. 2543, allowing unilateral notification of preferential rights, which would lead to the same priority right in debt repayment as mortgage creditors. It also proposes amending Section 335 paragraph 4 and 5 of the Civil Procedure Code to extend its scope to include debts from charges imposed by land developers.