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BANGKOK 18 March 2019 21:14
banagan

Buying condo process, deposit first normal?

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Not sure how they do things here in the land of smiles, but back home in Ireland, you go sale agreed and it takes 2 - 3 months for the sale to go through. I believe it's a lot quicker here? Trip to some office and a bit of rubber stamping?

 

I've found a condo I like, although I won't have all the funds for another 2 weeks or so.

 

Is it normal to put a deposit down, like 10%. If so, how would you protect yourself here, is there an agent you can hire?

 

Back home, the deposit is refundable if the buyer pulls out, would that be the case here... I'm guessing, no? 

 

My first rodeo here, just trying to get my head around the best way to go about this.

 

Cheers

 

 

 

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 The best protection is within the contract.

Developer/cutomer contract

 

Ensure that a completion date is detailed.

If the buiding is seriously late then a judge will rule in your favour

He will command the developer to supply you with free accomodation and further command the developer to pay you interest of the money so far deposited.

For those reasons developers are loathed  to commit to a completion date.

The alternative is to pay as small a deposit as possible.

The balance to be paid when the Condominium Title Deed is in your name.

 

Back home, the deposit is refundable if the buyer pulls out, would that be the case here... I'm guessing, no

 

No is correct.

 If you are buying a pre -owned condo then the process is simple

You as buyer will have tp provide just one document i.e the FET

The seller will have provide a letter from the building i.e.  a letter from the JPM of the building-specifying how much 'foreign quota' space is available

With both  these letters in place it's just a  matter of a trip to the land office.No lawyer required

I over simplify the process slightly

 

You need to specify if your proposed  new purchase is

A  New development

B Pre owned

C In the foreign quota or not

Issues not relevant in Ireland

Highly relevant in Thailand

 

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Any deposit given you would loose in Pattaya as agent collect it first in most cases …., my advice : only pay at the registration office as some condos are no longer for transfer in foreign name , even the owner has the condo in foreign name , reason : in the past there was a relaxation for the foreign quota temporary higher for sale in foreign name , which is now no more relevant , only the present owner can keep it in foreign name but not selling in foreign name only in Thai or company name .

Agents could "forget " to tell you or even really not knowing it...., the registration office is the final boss to accept in foreign name or not ..!!

Give all evidence you have the money .or even freeze the deposit available on your bank (inquire your bank , they can be assisting you better than a agent for your protection. )

If seller or agent not accept that ...it means he wish to be paid anyway by the deposit in his pocket whatever is the sales result....WALK Out !

Remember that recovering the deposit by going court could cost you more than the deposit ...THE AGENTS KNOWING THAT :whistling: So....

Edited by david555
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Thanks for the feedback. This is a pre owned, old condo.

Edited by banagan

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If I was buying a condo in Thailand (which I am not as risk/reward is unacceptable to me), I would only buy from a reputable developer. I would definitely not buy a used condo with no experience like yourself.

 

If I was buying a used condo, I would only buy it if I had an extremely reliable Thai person by my side to babysit me through every step.

 

I bought a condo from a developer back in 2013. It was an installment payment with a booking fee and monthly installments of 10,000b until competition. I managed to get rid of it after I saw some photos on Pantip from unhappy customers where kitchen shelves were falling off and roof leaking after 6 months. I managed to get rid of it before taking possession and made 30k baht. A mistake in hindsight as I would have made around 200k baht on appreciation, but the bigger thing is I would have made extra 25% on currency exchange alone.

 

So, yes, don't listen to be about condo purchase as unlike other real estate bears I will admit I am wrong. But I do hope you listen to me and buy from a reputable developer only. Preconstruction as it will give you time if you want to bail out. There will always be a buyer for your condo contract it seems. You may even make a profit.

 

 

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11 hours ago, banagan said:

Back home, the deposit is refundable if the buyer pulls out, would that be the case here... I'm guessing, no? 

The process regarding deposits is usually written into the sale and purchase agreement, and the ones I have seen stipulate that if you renege on the deal you lose your deposit. This particularly if you are using an agent, as this deposit will be paid to them as commission for getting the deal.

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20 minutes ago, banagan said:

Thanks for the feedback. This is a pre owned, old condo.

I send you a pdf file with more info I got from more experienced people by pm, check your message box 

Edited by david555

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"Back home, the deposit is refundable if the buyer pulls out, would that be the case here... I'm guessing, no?"

   I doubt that very much...what would be the point in placing a  deposit (at which point the property is usually taken off the market) if one can change their mind at any time, pull out, and get their deposit returned to them (and the owner may have turned down later offers) ?

   Here, you put down your deposit when you sign a contract stating by what date the balance must be paid. If you pull out you not only lose your deposit you will pay a penalty. Likewise, if the Vendor "pulls out"...same applies to them. 

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7 minutes ago, dotpoom said:

"Back home, the deposit is refundable if the buyer pulls out, would that be the case here... I'm guessing, no?"

   I doubt that very much...what would be the point in placing a  deposit (at which point the property is usually taken off the market) if one can change their mind at any time, pull out, and get their deposit returned to them (and the owner may have turned down later offers) ?

   Here, you put down your deposit when you sign a contract stating by what date the balance must be paid. If you pull out you not only lose your deposit you will pay a penalty. Likewise, if the Vendor "pulls out"...same applies to them. 

one reason could be that some things are not as the agreements states , example foreign name not accepted by registration office , debts on the condo, and so many other things ….

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5 hours ago, dotpoom said:

Likewise, if the Vendor "pulls out"...same applies to them. 

Good luck with that ….. as different than the already given deposit , the seller did not give anything ,  o.k. go court and pay the double amount to get your given deposit back...😋

Edited by blackcab
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49 minutes ago, Pravda said:

If I was buying a condo in Thailand (which I am not as risk/reward is unacceptable to me), I would only buy from a reputable developer. I would definitely not buy a used condo with no experience like yourself.

 

If I was buying a used condo, I would only buy it if I had an extremely reliable Thai person by my side to babysit me through every step.

 

I bought a condo from a developer back in 2013. It was an installment payment with a booking fee and monthly installments of 10,000b until competition. I managed to get rid of it after I saw some photos on Pantip from unhappy customers where kitchen shelves were falling off and roof leaking after 6 months. I managed to get rid of it before taking possession and made 30k baht. A mistake in hindsight as I would have made around 200k baht on appreciation, but the bigger thing is I would have made extra 25% on currency exchange alone.

 

So, yes, don't listen to be about condo purchase as unlike other real estate bears I will admit I am wrong. But I do hope you listen to me and buy from a reputable developer only. Preconstruction as it will give you time if you want to bail out. There will always be a buyer for your condo contract it seems. You may even make a profit.

 

 

This is normal. Thai developers build to a barely passable standard and then leave it up to the buyers to go through the condo and mark any defects. In my own case the current condo Im living in was delivered with a warped imitation wood floor so they refunded me 20 k which was perfect as I wanted tile anyway.

 

My GF just got her 5 million baht studio finished so I went to inspect it..no less than 20 items noted and on re-inspection everything was fixed.

 

Im on my second condo and have found developers to be very fair when requesting repairs before payment and even after if the defect was missed or water leaks etc. Its just the way it is in Thailand 

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I know agents that have kept deposits, or spent them, then made up excuses to delay transfer until they find enough to replace the deposit. Just pay one lump sum on the day, unless of course it is an unbelievable bargain that will have a queue of people wanting to buy

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5 hours ago, baansgr said:

...unless of course it is an unbelievable bargain that will have a queue of people wanting to buy

That is the most common cheating trick...…,the golden opportunity …, must signing at lightning speed👎  …..meaning no time to reflect or control the sale as "soooo many others could take it from you…. very common trick 

Edited by blackcab
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    Normally, when the sales contract is signed, the buyer puts down a small deposit, which is usually held by the agent.  The contract should clearly state what happens if the buyer or the seller fail to go to closing.  The contract should also clearly specify what conveys and what does not convey and the buyer should be allowed to do an inspection on or before the day of closing.

     The seller needs to provide a debt free letter showing the buyer that the condo is free of debt.  The buyer should check the condos financials, especially the sinking fund (the amount of money the condo has in reserve to pay for any unexpected large expenses).  The sinking fund is especially important with older condos, where things might be wearing out.   If the condo refuses to show the financials, I would look elsewhere for a condo to buy.

      Take a thorough look around the condo complex.  Is the pool clean and tilework ok? Buildings in good repair?   Grounds being maintained?  Try to visit several times, both during the day and in the evening.  Spend some time just observing--is the condo super busy with comings and goings?  Lots of people dragging suitcases? Likely a lot of illegal daily rentals and you will be living in a hotel atmosphere.  If possible, chat up some of the residents.  Management responsive?  Owners paying their condo fees or lots of delinquencies?  Any specific problems?

      A condo purchase is a big ticket item.  I would suggest you take your time and gather as much information you can.  Do some comparison shopping if possible.  Good luck.

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1 hour ago, banagan said:

Thanks for the feedback. This is a pre owned, old condo.

So no deposit required, you would normally pay the entire amount at the land office when they transfer the chanote.

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