Frank67

developers can sell condos 2 times?

22 posts in this topic

33 minutes ago, smutcakes said:

 

From what i have seen it is normally the buyer who pushes the developer to let them move in prior to the building being completed.  I have seen cases where Co-owners are literally walking up 15 flights of stairs to their unit so they don't have to pay for alternative accommodation. As part of this, the developers normally make them pay the final instalment if they want to use the unit, and at this stage the title deeds are not issued.

 

Developers don't want them to move in, it is far more hassle than its worth for them.

 Before co -owners can move in -the building must have its safety certification.

Given that this is in place and all the co -owners (who have now paid all their money) move in.

 Is there any legal pressure on the developer to issue the Title Deeds?

 

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I think the first problem with buying off plan is, when the prepayments are to high. In my mind if i should pay more than 20% upfront, then I never would go on with a off plan buying. Then the 80% will only be transfered (chashier cheque) to the developer when on the land departement office, when I receive the title deed.

 

Attached is an example of a condo presales offer which I would consider OK for the payment details. (I checked quite a few and most offers I found had a very similar percentages. But I checked mainly in Bangkok and not in Pattaya...).

Cost: 6'407'000

Prepayment 817'000 (12.75%) -> Reservation 30K, Contract signing 70K and 30 months payments at 23'900

Final Payment 5'590'000 (87.25%)

 

This 5.5M will only be given for a title. So when for some reason something goes wrong and hopefully you will notice this before you paid up the 30 monthly rates... then you can loose maximum 12.75% but of course, when you buy a condo off plan where you have to pay 75% or even more I never ever would do that and in that case would only walk away... even with the best known developer

 

2 Br. ( 1213 ).jpg

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3 hours ago, Delight said:

 Before co -owners can move in -the building must have its safety certification.

Given that this is in place and all the co -owners (who have now paid all their money) move in.

 

You are assuming that the letter of the law is being obeyed. In some places envelopes speak much more loudly.

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2 hours ago, HampiK said:

Attached is an example of a condo presales offer which I would consider OK for the payment details. (I checked quite a few and most offers I found had a very similar percentages. But I checked mainly in Bangkok and not in Pattaya...).

Cost: 6'407'000

Prepayment 817'000 (12.75%) -> Reservation 30K, Contract signing 70K and 30 months payments at 23'900

Final Payment 5'590'000 (87.25%)

 

This 5.5M will only be given for a title. So when for some reason something goes wrong and hopefully you will notice this before you paid up the 30 monthly rates... then you can loose maximum 12.75% but of course, when you buy a condo off plan where you have to pay 75% or even more I never ever would do that and in that case would only walk away... even with the best known developer

 

In my experience in Pattaya (where, unless I'm mistaken, the OP has purchased) it is very common for farangs to sign sales contracts that allow for nearly all the cost to be paid in instalments during construction, with only a very small amount left at the end. Knowing what developers here can be like there would be snow on Jomtien beach before I would agree to any such terms, but many farang buyers here know no better and the terms are presented to them as being entirely normal and so they go along with it. Lies and deception abound here, and there is little or no consumer protection, and people are easily taken in.

Thai buyers often get much better terms such as you describe.

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34 minutes ago, KittenKong said:

 

In my experience in Pattaya (where, unless I'm mistaken, the OP has purchased) it is very common for farangs to sign sales contracts that allow for nearly all the cost to be paid in instalments during construction, with only a very small amount left at the end. Knowing what developers here can be like there would be snow on Jomtien beach before I would agree to any such terms, but many farang buyers here know no better and the terms are presented to them as being entirely normal and so they go along with it. Lies and deception abound here, and there is little or no consumer protection, and people are easily taken in.

Thai buyers often get much better terms such as you describe.

Unfortunately you are right, that in Pattaya many things are different.

Even that so many buy a property in thai names (company or gf's name)

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ID: 21   Posted (edited)

First of all thank you very much for the many and detailed replies!

Yes, it is about Pattaya and foreign ownership. AOR6 documents were granted, land office did the measurements. All the infrastructure is working (pool, elevators, aircons, water supply). People who live there are quite happy.

I hired a lawyer in Bangkok and he is doing the investigations right now.

 

I see manly these perspectives:

 

1.) Thai courts are customer friendly and will protect the buyer

2.) The buyer will be one of many the developer owes money to and will see a very very small return in case of developer's insolvency

3.) Bank has the title deed and the owner of the title deed owns the unit. Buyer gets nothing

 

to 1.) would certainly be most liked, but is least likely to kappen. Or has anyone a recent sample case to show where this happened?

to 2.) most likely if case variant 3 is wrong

to 3.) many countries have specific laws/regulations to have category 1 mortgage loans always to be first to be compensated. Not sure if Thailand has such rules in place.

 

I am not aware of any law which favors the buyer over other creditors. If this is the case than

- either buyers get nothing and the bank gets all the condos

- or buyer and bank have to share the leftovers and loose almost all of their money

 

Does not look very promising :sad:

Edited by Frank67

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Just listening on the radio about someone who paid 4MB deposit for a unit in the Waterfront, which is probably Pattaya's highest profile condo development (it is certainly the most visible, due to its location).

I dont know what proportion of the total unit cost this 4MB is, but the chap is understandably worried that the developer of the building has recently become the subject of a rehabilitation petition to the central bankruptcy court. Work on the building shell has been abandoned for a year and a half following investigations about the building permit and design.

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BANGKOK 29 June 2017 14:28
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