Jump to content
BANGKOK
Sign in to follow this  
george

More Protection For Buyers Of Condos

Recommended Posts

More protection for buyers of condos

BANGKOK: -- Condominium buyers are to get better legal protection thanks to the amended Condominium Act, under which developers who do not deliver facilities as advertised will be penalised.

The amendment will become effective on July 4. Surasith Sahasthamrangsi of the real estate business promotion bureau of the Land Department said at a seminar yesterday that the new Act would punish de velopers who used misleading advertising to boost sales.

"If they can't deliver what they advertise, the Land Department is empowered to charge them with giving false information," Surasith said.

The amendment followed complaints by buyers whose purchases did not include what was advertised. Most of the angry buyers were people who bought units before they were completed. From July 4, developers will have to submit advertising plans with their construction proposals. On completion, the Land Department will check if all is as advertised.

Property Perfect's chief operations officer, Teerachon Manomaiphibul, said this law would hurt only developers who are inclined to cheat buyers.

Meanwhile, experts said the amended law might hurt the resale market, as the provisional clause that allows foreigners or foreign entities to hold more than 49 per cent of condominium units in Bangkok, municipal areas and other specified areas will be scrapped.

The limit will now be 49 per cent, without exception.

-- The Nation 2008-05-17

Share this post


Link to post
Share on other sites
More protection for buyers of condos

Meanwhile, experts said the amended law might hurt the resale market, as the provisional clause that allows foreigners or foreign entities to hold more than 49 per cent of condominium units in Bangkok, municipal areas and other specified areas will be scrapped.

The limit will now be 49 per cent, without exception.

Why would that hurt the resale market?

Share this post


Link to post
Share on other sites

Can we see the amendments to the law - or is this yet another case of presenting face for a current problem resulting in no change really ?

How will the Thai Gov penalise organisations/people who break this alleged amendment ?

Please provide the complete amended condominiums act or a link to it...

Share this post


Link to post
Share on other sites
"If they can't deliver what they advertise, the Land Department is empowered to charge them with giving false information"

woh, that sounds very severe ! :o

I guess we'll have to wait to see how far will go this kind of charge... But I doubt it'd end with any substantial financial compensation or anything like that...

Share this post


Link to post
Share on other sites
The limit will now be 49 per cent, without exception.
Why would that hurt the resale market?

You won't be able to sell your condo to a farang if your building already has 49% (or more) foreign owners. So you'll have a smaller set of buyers to deal with and they will be well aware of the bind you're in, so it'll be even more of a buyers' market.

On the other hand, if your building has fewer than 49% farang owners, you might find greater demand for your condo if it's in a location with farang-appeal.

Edited by Kaojai

Share this post


Link to post
Share on other sites
More protection for buyers of condos

Meanwhile, experts said the amended law might hurt the resale market, as the provisional clause that allows foreigners or foreign entities to hold more than 49 per cent of condominium units in Bangkok, municipal areas and other specified areas will be scrapped.

The limit will now be 49 per cent, without exception.

Why would that hurt the resale market?

At these prices (& in - generally - "farang" areas) , who's buying? This (the advertising clause) is a protection for Thais, not foreigners.

Reducing the ownership percentage is a step backward, so the total impact is negative for foreigners.

Share this post


Link to post
Share on other sites
More protection for buyers of condos

BANGKOK: -- Condominium buyers are to get better legal protection thanks to the amended Condominium Act, under which developers who do not deliver facilities as advertised will be penalised.

The amendment will become effective on July 4. Surasith Sahasthamrangsi of the real estate business promotion bureau of the Land Department said at a seminar yesterday that the new Act would punish de velopers who used misleading advertising to boost sales.

"If they can't deliver what they advertise, the Land Department is empowered to charge them with giving false information," Surasith said.

The amendment followed complaints by buyers whose purchases did not include what was advertised. Most of the angry buyers were people who bought units before they were completed. From July 4, developers will have to submit advertising plans with their construction proposals. On completion, the Land Department will check if all is as advertised.

Property Perfect's chief operations officer, Teerachon Manomaiphibul, said this law would hurt only developers who are inclined to cheat buyers.

Meanwhile, experts said the amended law might hurt the resale market, as the provisional clause that allows foreigners or foreign entities to hold more than 49 per cent of condominium units in Bangkok, municipal areas and other specified areas will be scrapped.

The limit will now be 49 per cent, without exception.

-- The Nation 2008-05-17

NO slight on George but in reality this is a load of old dogs.

I can just visualise them enforcing the new proposals as per amendments Thai style.

Meanwhile ex number of years later and appeal after appeal after appeal ect. ect.

Forget it unless they show it is enforced in practice as and when it is needed and the owners get their justice.

marshbags

Share this post


Link to post
Share on other sites

Thai Condo real estate is not a good investment since other regions such as Vietnam and China has appreciated 300-600%.

Share this post


Link to post
Share on other sites

Teerachon Manomaiphibul, said this law would hurt only developers who are inclined to cheat buyers

There is another kind?

I's like to see much stiffer penalties (public caning and remedial English classes perhaps) for the clowns who come up with names like "The Trendy" and nonsense Thinglish gibberish fluff to describe how super hip chic happy fun life mega convenience sanuk maak their over-priced poorly-finished poky little shoe boxes with 1 square meter balconies will be.

Yes there are substantial "savings" in buying off the plan compared to the price when finished, but the risks just aren't worth it, even when going into it fully expecting the developers to deliver less than advertised. Much better value buying a 10+ year old condo IMO.

Share this post


Link to post
Share on other sites

it looks like thai love that famous 49% rule all for everything...

when will they understand that buying land by a foreigner does not remove the land from the country.

they should have a look how spain did rise after franco, they had their arms open for foreign investments and see where they are now :o

Share this post


Link to post
Share on other sites

Condo Act to protect consumers

Aims to weed out shady developers

BANGKOK: -- The amended Condominium Act will improve the overall condo market and screen out non-professional developers that take advantage of buyers, says Opas Sripayak, managing director of the condo developer L.P.N. Development Plc.

''The amendments will benefit condominium buyers as most of them will focus on consumer protection. Condominium developers should pay more attention to what the sellers promise,'' he said yesterday.

He said a regulation in the amendment requiring developers to pay common area expenses for unsold units after unit transfers would put a greater burden on irresponsible developers who earlier tried to avoid this payment.

''L.P.N. will have no impact from the amendments as what we've done already will comply with them,'' said Mr Opas. ''This is the same for many listed and professional developers in the industry.''The Land Department will hold a public hearing about the amended Condominium Act next Friday before it becomes effective on July 4.

''After we talked with some developers about the amendments, what most of them were concerned about were odds and ends, not big issues,'' said Surasith Sahasthamrangsee, director of the department's Real Estate Promotion Office.

The department was waiting for consideration from the Consumer Protection Board on condominium pre-purchase and purchase and sales contracts before submitting details to the Interior Ministry next week. The department hopes the board will help tighten loopholes in the agreements as it earlier received thousands of complaints related to unfair agreements.

''It [the contract] will be a standard for all condominium projects to use,'' said Mr Surasith.

The amended Condo Act would require developers to keep all copies and versions of sale brochures or pictures advertised or sales letters publicised in any way at the juristic person office of the condominium for future reference, he added. ''Advertisements are part of a purchasing and selling contract. If there are many versions, all must be kept,'' he said.

This requirement aims to focus on the common area that developers promise to customers, not on selling prices or promotions. In the past, some developers changed the common area for other uses, taking advantage of unit owners.

''The amendments, responding to many problems, aim to protect consumers. Formerly, the act had no provisions for punishment as it left the private sector to manage and solve the problems by itself.''

Mr Opas said L.P.N. planned to launch three low-priced CondoTown projects in the Rama II, Rangsit and Pak Nam in Samrong areas with at least 2,000 units each. Spending for these three plots would be around 200-300 million baht each.

''CondoTown will focus on a large community where a discount store is situated,'' he said. The location has more than 100 apartment buildings where tenants pay rent of 3,000 to 4,000 baht a month.

During the first four months of this year, L.P.N. had pre-sales of 2.8 billion baht and it aims to achieve 11 billion baht by the end of the year. In the first quarter, it realised 1.2 billion baht and missed a target of two billion baht as government tax incentives took effect in late March and many buyers delayed purchases. However, the firm would realise tax benefits representing 4% of total revenue. It expected to realise 7.8 billion baht of revenue in 2008, said Mr Opas.

Next month the company will launch the first phase of Lumpini Place Ratchada-Rama IX on a 15-rai site near the MCOT Junction with unit prices of 1.3 million baht. It will have a total of 2,000 units.

''A rise in steel prices caused higher unit prices of 2-5% so [prices of] units in the existing projects will be revised up,'' Mr Opas said.

LPN shares closed yesterday on the Stock Exchange of Thailand at 7.30 baht, up 10 satang, in trade worth 209.9 million baht.

-- Bangkok Post 2008-05-17

Share this post


Link to post
Share on other sites
The limit will now be 49 per cent, without exception.
Why would that hurt the resale market?

You won't be able to sell your condo to a farang if your building already has 49% (or more) foreign owners. So you'll have a smaller set of buyers to deal with and they will be well aware of the bind you're in, so it'll be even more of a buyers' market.

On the other hand, if your building has fewer than 49% farang owners, you might find greater demand for your condo if it's in a location with farang-appeal.

Excuse me, but I think the above from Kaojai might not be true, or not always be true anyway (I don't know, I'm just suggesting, mind!) Here's how I would argue:

1. If the level of foreign ownership is less than 49%, any of the owners can sell to anybody (a sale to a foreigner in this case is only barred if that would push foreign ownership above the 49% level).

2. But if the level of foreign ownership has already reached 49%, then only a foreigner can sell to a foreigner. Effect on price? As far as foreign buyers are concerned, the number of available units has fallen by half, therefore the price that they will have to pay if they want to move into the building should increase. Generally, less supply = higher prices.

This is just my interpretation, based on a limited understanding of economic theory. Has anybody (Kaojai?) any actual experience of what happens to prices of units in a condo building (which is quite popular with farangs) after the 49% quota has been reached?

Share this post


Link to post
Share on other sites

Oh come ooonnn you guys.

The point is if you're in some place like Phuket or Pattaya or Samui where "foreigners" tend to be pushing the 49% envelope this is the same issue it's always been. You can sell to ANYONE, but a non-farang owner would NOT be able to sell to a foreigner cause it's already at the max.

In Bangkok - much less of an issue as most places are only around 10-30% foreign owners - high end is higher though.

Share this post


Link to post
Share on other sites
it looks like thai love that famous 49% rule all for everything...

when will they understand that buying land by a foreigner does not remove the land from the country.

they should have a look how spain did rise after franco, they had their arms open for foreign investments and see where they are now :o

Probably they want also an economic growth of 49% from which is possible due to the economic developments in Asia.

Share this post


Link to post
Share on other sites
I's like to see much stiffer penalties (public caning and remedial English classes perhaps) for the clowns who come up with names like "The Trendy" and nonsense Thinglish gibberish fluff to describe how super hip chic happy fun life mega convenience sanuk maak their over-priced poorly-finished poky little shoe boxes with 1 square meter balconies will be.

how about this for an "up yours" name for a housing development , in bang kradii , off rama 2.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...