Pace Development in trouble, friend bought a unit

[Will E Vormer]

Hi there. 

A Thai friend of mine bought a 35m unit in half contructed Bangkok luxury condo development, with the above developers. He's kept up with payments inspite of the problems.

As you have probably read, Pace are in real financial trouble, owing at least 21 billion baht, defaulting on payments to SCB, no money to finish projects, which have stopped for some time. 

Now even the President of the United States is suing Pace

https://www.google.com/amp/s/ny.eater.com/platform/amp/2019/11/14/20964288/trump-building-dean-and-deluca-lawsuit-nyc

 

In Thai law what generally happens to a homeowner on half finished project if developers go bust? 

[Ron jeremy]

Probably the same as the fools that bought at the Bali hai project in pattaya. Yet another fool is born.

[Matzzon]

Bad buying choice. Only ever invest in already existing property.

[Halfaboy]

Lucky it is your friend and not you....

[ThomasThBKK]

1 hour ago, Will E Vormer said:

In Thai law what generally happens to a homeowner on half finished project if developers go bust? 

 

bankruptcy works the same as everywhere else here.

Companies go into bankruptcy, then someone takes over their assets and distributes the remaining funds, you can try suing but they are pretty much protected by the company setup if they did everything by the book....

 

Good overview: https://juslaws.com/bankruptcy-procedures-in-thailand.php

 

 

And as already said, don't buy non existing property, the only exclusion to that is if you build yourself obviously.

[baansgr]

Lenthgy court cases with very little chance of retrieving anything. A small condo in Jomtien, started 2011 due completion 2013 never finished. 5 years of court cases by investors and they lost everything. The part completed condo has now been bought by another developer and construction restarted

[smutcakes]

The only hope your friend has is that there are obviously many very wealthy other people in the Condo so the chances of the project getting finished, or having some kind positive resolution are higher than in some 2 bit Pattaya <deleted> hole. In terms of this being a rare freehold plot on that area, and the location being popular is a positive. When a developer normally goes bankrupt then someone can buy their interest and carry on the development. However i heard a rumor on this project and no idea if it is true or not that it would cost more to complete than the sum of all unpaid condo monies still owed, which essentially makes the situation very difficult.

 

Not sure how much your friend has put down, looking at the construction, maybe 10%, so not the end of the world. Probably best bet would be to have the whole thing knocked down, and the land plot sold and monies returned. Although  expect their are banks and other lending institutions who might come before co-owners.

[Will E Vormer]

19 hours ago, Halfaboy said:

Lucky it is your friend and not you....

If it's your good friend you dont think 'glad its him not me'

[Will E Vormer]

Smutcakes, thanks for the info.

 

When Pace defaulted to SCB, they then sent 2 letters to condo owners, 1 explaining that they were trying to renegotiate, the other a letted of contract to protect themselves from getting sued by the owners! I havent seen the letters but will ask him for screen shots, as long as they cant be traced back electronically