Not being able to complete payment on a condo by the due date?

[Johnny Mac]

Hi,

 

Just wondering if anyone knows about what happens in this situation, as a general rule,  in Thailand? Or does it simply depend?

 

Okay, so it's a BKK condo by Supalai, final payment is due mid-October. Due to Covid my business has been hit hard and I 'may' not have the funds available, but I still hope I do.

 

Yes, I know details about this possibility may well be buried in the contract somewhere, but would still like to know if there is any wisdom, info, experiences on this? Is there a general procedure, ie the developer will give you an extended time to pay, maybe with a small amount of interest added?

 

Supalai are of course one of the biggest developer and must be use to this happening, especially in these strange, uncertain times. I'd be pretty sure I won't be the only one who may not be able to meet the final payment on time.

 

PS: It will be a cash type payment, mortgage is not an option.

 

Thanks for any help.

 

Johnny Mac

[madmen]

Flip it 

[Johnny Mac]

1 minute ago, madmen said:

Flip it 

That is an option, yes, but I do actually want it. It's more an investment for my children.

 

I've only put down 500k so far, which is 10% of the price. I think the project is sold out so hopeful of a buyer if it did come to that?

[madmen]

Just inform the sales office you want to sell. 

Call juristic or sales also if you want to keep it but pay at a later date. 

Every development has its own rules so not a lot of good asking on here. There is a chance they may be flexible but you must speak to them. 

[Johnny Mac]

3 minutes ago, madmen said:

Just inform the sales office you want to sell. 

Call juristic or sales also if you want to keep it but pay at a later date. 

Every development has its own rules so not a lot of good asking on here. There is a chance they may be flexible but you must speak to them. 

 

Yep, most likely that would be the case. but there maybe folk on here who have had dealings with Supalai with something similar.

[natway09]

Nearer the time if it becomes clear that you are going to need more time to settle talk to them openly & you will get what you wish within reason, I am sure.

A confirmed buyer like yourself they will bend over backwards to help as they know there are thousands of options for you at present

[Johnny Mac]

15 minutes ago, natway09 said:

Nearer the time if it becomes clear that you are going to need more time to settle talk to them openly & you will get what you wish within reason, I am sure.

A confirmed buyer like yourself they will bend over backwards to help as they know there are thousands of options for you at present

 

Ok noted, cheers.

[fakser]

I just bought a unit in a new condo in Bangkok. I paid 30 percent in October and had to pay the rest 70 percent in February 2021. Then the THB climbed sharply vs US$ and I talked with the project rep to allow me to wait for a while in hope of THB weakening in my favour.

They were very kind and friendly and let me wait few more months without any penalty.

least week, THB fell to 31/! US$ and I completed the transaction.

The developers suffered heavy losses during the Covid19 year, so they are very favourable for customers.

 

Just Talk to them

Good luck 

[tomazbodner]

Don't know about Supalai, but AP and Sansiri have a certain period (30 or 90 days, can't remember) to pay up, during which time the developer can choose to charge late payment interest; beyond that they have the right to keep deposit and sell it to someone else.

AP and Supalai have resold new units at a discount price, basically discounting by the amount that buyers already paid before they defaulted. There were many IDEO units available at low prices from this kind of scheme. What I don't know is whether there were any additional consequences other than losing deposit for the buyers.

[tomazbodner]

2 minutes ago, fakser said:

The developers suffered heavy losses during the Covid19 year, so they are very favourable for customers.

 

Just Talk to them

Probably best advice you'll get.

[Johnny Mac]

25 minutes ago, tomazbodner said:

Don't know about Supalai, but AP and Sansiri have a certain period (30 or 90 days, can't remember) to pay up, during which time the developer can choose to charge late payment interest; beyond that they have the right to keep deposit and sell it to someone else.

AP and Supalai have resold new units at a discount price, basically discounting by the amount that buyers already paid before they defaulted. There were many IDEO units available at low prices from this kind of scheme. What I don't know is whether there were any additional consequences other than losing deposit for the buyers.

 

Additional consequences?? Haha, do me a favour mate. But if they send me to the Bangkok Hilton for a couple of years for defaulting on a condo unit can you bring me some food and drink in?

[tomazbodner]

1 hour ago, Johnny Mac said:

 

Additional consequences?? Haha, do me a favour mate. But if they send me to the Bangkok Hilton for a couple of years for defaulting on a condo unit can you bring me some food and drink in?

They're not going to get you jailed unless you cause them defamation. Smaller developers could go after defaulting buyer for every possible fee described inside the contract signed, especially on projects they couldn't sell. Not very likely to happen with large developers. If you still want the unit (seems so), just give them a call and get some compromise sorted out. I can't expect there would be huge demand for your unit right now, hence they are very likely to be flexible, like fakser suggests.

 

If you want to see what's the worst they could do, read the contract you signed. It surely won't be jail time.

 

However if you did end up in there, I'll have food and drinks sent to you there. I can see it out the window!

Edited March 25, 2021 by tomazbodner

[SheungWan]

Sounds like the buyer has, due to circumstances, over-extended himself and hoping the financial situation will improve doesn't sound like a good plan. If the business is under pressure then holding on to cash better. Probably best to surrender the half million rather than getting in deeper. And start the process now. Not a good idea to spend the next 4+ months delaying and worrying. All IMHO. (The developers might still grant an extension to hold on to the sale, but really, is it worth sinking that money this year?)

Edited March 25, 2021 by SheungWan

[Johnny Mac]

7 hours ago, SheungWan said:

Sounds like the buyer has, due to circumstances, over-extended himself and hoping the financial situation will improve doesn't sound like a good plan. If the business is under pressure then holding on to cash better. Probably best to surrender the half million rather than getting in deeper. And start the process now. Not a good idea to spend the next 4+ months delaying and worrying. All IMHO. (The developers might still grant an extension to hold on to the sale, but really, is it worth sinking that money this year?)

 

All fair points. Of course it's difficult for anyone to give an exact opinion on what the OP should do as they obviously don't know the OP's (myself) exact situation, and yes I know I asked the question, but the question was more a case of asking how developers respond in this type of situation and/or wondering if anyone else has been in the same situation. This thread was never about asking for financial advice.

 

Fwiw, if I can rustle up the money by mid-October, or later if they grant an ext, I will go ahead, as I want this place, it's in a location I like, the price imo is very fair, and I like the floor it's on and it's  corner unit. I don't want to potentially lose half a mil, go back to the drawing board and 'possibly' look for something else later, I don't think I have the energy for that.

[Johnny Mac]

Bumping this (I'm the OP)

 

Time is moving on now and no closer to finding the money by mid-October. I obviously don't want to tell them last minute so will have to say something soon. I don't want a month to month 'hopefully to get the money' type of arrangement (that's if they even agree to that of course) so thinking to ask them for a 6 month ext (so April 22) and accept what ever interest, etc. I know I should just ask them, but any idea on here how they may react to that? Does it sound reasonable? I'm thinking due to Covid there must be others now struggling to come up with the readies? Cheers.

[Johnny Mac]

Anyone??

[nikita22]

On 5/14/2021 at 6:37 AM, Johnny Mac said:

Bumping this (I'm the OP)

 

Time is moving on now and no closer to finding the money by mid-October. I obviously don't want to tell them last minute so will have to say something soon. I don't want a month to month 'hopefully to get the money' type of arrangement (that's if they even agree to that of course) so thinking to ask them for a 6 month ext (so April 22) and accept what ever interest, etc. I know I should just ask them, but any idea on here how they may react to that? Does it sound reasonable? I'm thinking due to Covid there must be others now struggling to come up with the readies? Cheers.

 

I really do think your over thinking this, your spending 5m with them, there in hard times as we all are. just talk to them early which will not only allow you to plan should they turn your proposal down but will show them you actually do want to resolve the issue you face

[Johnny Mac]

Got the wife to read the contract and it states if you cannot pay on the due date then you can delay and it is 7% interest per year interest, so I assume approx 0.6% per month, each month you are late? The fact that is states this in the contract and is clear I don't suppose there is the need to ask the question, will just tell them when they contact us next.

[YT3k72Em]

On 6/30/2021 at 3:06 PM, Johnny Mac said:

Got the wife to read the contract and it states if you cannot pay on the due date then you can delay and it is 7% interest per year interest, so I assume approx 0.6% per month, each month you are late? The fact that is states this in the contract and is clear I don't suppose there is the need to ask the question, will just tell them when they contact us next.

 

You should still ask them what you can do. They probably have many people in your situation and are willing to be flexible.

[Johnny Mac]

48 minutes ago, YT3k72Em said:

 

You should still ask them what you can do. They probably have many people in your situation and are willing to be flexible.

Yes I know, but in no mad panic right now, will just wait and see what they say later. When you say ask them what I can do, won't they just say as per the contract ie 7% over one year, not sure why they would say anything different to that? I mean they just can't make it up as they go along, or can they?

[scubascuba3]

38 minutes ago, Johnny Mac said:

Yes I know, but in no mad panic right now, will just wait and see what they say later. When you say ask them what I can do, won't they just say as per the contract ie 7% over one year, not sure why they would say anything different to that? I mean they just can't make it up as they go along, or can they?

there could be people looking to buy so you could flip it

[Johnny Mac]

18 hours ago, scubascuba3 said:

there could be people looking to buy so you could flip it

 

Sure, but how do I flip it, this would be new territory for me. If I tried myself I assume I would list on baht & sold, etc? If so I don't even have any pics of the place. if I ask the developer to try to find a buyer I doubt they would entertain that as would probably be better for them if I default they keep my 300k and sell to someone else at list price, if not more?

[scubascuba3]

5 minutes ago, Johnny Mac said:

 

Sure, but how do I flip it, this would be new territory for me. If I tried myself I assume I would list on baht & sold, etc? If so I don't even have any pics of the place. if I ask the developer to try to find a buyer I doubt they would entertain that as would probably be better for them if I default they keep my 300k and sell to someone else at list price, if not more?

From what you said per your contract they just charge interest so default won't happen unless you don't pay. Maybe just maybe they have interested buyers, you won't know until you ask. @newnative seems to know about these things, see what he thinks?

[Johnny Mac]

16 minutes ago, scubascuba3 said:

From what you said per your contract they just charge interest so default won't happen unless you don't pay. Maybe just maybe they have interested buyers, you won't know until you ask. @newnative seems to know about these things, see what he thinks?

 

Ok, thanks for your input.

 

Btw, even though flipping is of course an option, I do actually WANT the place. And I have 2 youngsters that are excited about it, so don't want to let them down, if poss.

[Pravda]

On 3/25/2021 at 9:32 AM, Johnny Mac said:

I think the project is sold out

 

Of course it is. 

 

Then... Magically units become available a year later.... 2 years later.... 5 years later. 

[newnative]

10 minutes ago, Johnny Mac said:

 

Sure, but how do I flip it, this would be new territory for me. If I tried myself I assume I would list on baht & sold, etc? If so I don't even have any pics of the place. if I ask the developer to try to find a buyer I doubt they would entertain that as would probably be better for them if I default they keep my 300k and sell to someone else at list price, if not more?

     Saw Scubascuba3's  mention.  My Thai partner and I have taken over the contracts for two condos that had not been completed by the developer when we took over the contracts.   In both cases, the sellers decided that, for whatever reason, they did not want to complete the purchase of the condos. 

    We paid to the sellers the amount they had paid to the developer, plus a small profit for them.  In both cases we went to the developer with the seller and the contract was changed over to me, in one case, and to my partner in the other.   

   In both cases we were able to take over the contract at the original contract price--which was good for us since the prices had gone up as these were two very in demand condos at the time--The Base Central Pattaya and Centric Sea.  It was very easy to re-sell both high-floor seaview units later on--especially Centric Sea as it was one of the few units with a bathtub in a 3-sided window seaview alcove.

    My partner found the listings on websites, not through an agency.  I forget which websites.  But, you could advertise yours on Facebook, bahtandsold, Craigslist, Hipflat, etc.  Although you don't have photos of the actual unit, you could post photos of the room plan and some project photos from the brochure or project website.  

[Johnny Mac]

41 minutes ago, newnative said:

     Saw Scubascuba3's  mention.  My Thai partner and I have taken over the contracts for two condos that had not been completed by the developer when we took over the contracts.   In both cases, the sellers decided that, for whatever reason, they did not want to complete the purchase of the condos. 

    We paid to the sellers the amount they had paid to the developer, plus a small profit for them.  In both cases we went to the developer with the seller and the contract was changed over to me, in one case, and to my partner in the other.   

   In both cases we were able to take over the contract at the original contract price--which was good for us since the prices had gone up as these were two very in demand condos at the time--The Base Central Pattaya and Centric Sea.  It was very easy to re-sell both high-floor seaview units later on--especially Centric Sea as it was one of the few units with a bathtub in a 3-sided window seaview alcove.

    My partner found the listings on websites, not through an agency.  I forget which websites.  But, you could advertise yours on Facebook, bahtandsold, Craigslist, Hipflat, etc.  Although you don't have photos of the actual unit, you could post photos of the room plan and some project photos from the brochure or project website.  

 

Ok thanks. Tbh though i've never said that i want to sell it, not ideally anyway, other posters have come along and suggested it. The whole point of me starting this thread was to ask what are the options if i can't make payment on time.  So since I do want the place I most likely will plough on for the forseeable and hope to come up with the dough. Obviously at some point there will have to be a deadline and if and when I get to that I will explore the possible ways of selling it like you have listed above.

 

What would be the likely response from Supalai if I asked them to find a buyer? Would they be interested or would they see it as no benefit to them, ie it's not something developers do as a rule?

[newnative]

13 minutes ago, Johnny Mac said:

 

Ok thanks. Tbh though i've never said that i want to sell it, not ideally anyway, other posters have come along and suggested it. The whole point of me starting this thread was to ask what are the options if i can't make payment on time.  So since I do want the place I most likely will plough on for the forseeable and hope to come up with the dough. Obviously at some point there will have to be a deadline and if and when I get to that I will explore the possible ways of selling it like you have listed above.

 

What would be the likely response from Supalai if I asked them to find a buyer? Would they be interested or would they see it as no benefit to them, ie it's not something developers do as a rule?

   I can't say what Supalai's response would be.  In your shoes, I would check with them and see what your options are.  With covid, you might find they will be flexible and try to retain you as a buyer.  If the project is fully booked (not the same thing as 'sold out'), they might have a list of buyers interested in the project--again, I think your best bet is to check with them.

[Johnny Mac]

7 minutes ago, newnative said:

   I can't say what Supalai's response would be.  In your shoes, I would check with them and see what your options are.  With covid, you might find they will be flexible and try to retain you as a buyer.  If the project is fully booked (not the same thing as 'sold out'), they might have a list of buyers interested in the project--again, I think your best bet is to check with them.

 

Right. But not really sure what you mean by they may be flexible? Won't they just point to the contract ie the interest fee for late payment, or do you mean they may give longer to pay before the interest kicks in?

[newnative]

1 minute ago, Johnny Mac said:

 

Right. But not really sure what you mean by they may be flexible? Won't they just point to the contract ie the interest fee for late payment, or do you mean they may give longer to pay before the interest kicks in?

   I think there's a chance they might give longer to pay with the covid situation.  Again, I would check with them.