Another Thing To Check When Buying A Condo

[Tony121]

Found this in this months asia report.

EIA rules threaten unit resales

by Kanchana Paha

Luxury condominiums which have failed to comply with the Thai Government´s Environmental Impact Assessment (EIA) requirements can be the cause of buyers loosing their right to transfer ownership after purchase.

Mr. Kasemsun Chinnavaso, Secretary General of the Office of Natural Resources and Environmental Policy and Planning, said that between 2006 and 2007 a number of buyers invested in the condominium business in Bangkok and other provinces without complying with the EIA directives.

Mr. Kasemsan added that there are numerous such projects scattered around Bangkok with several concentrated around the Sukhumvit, Ladprao, and Phaholyothin areas.

Under planning law, EIA applies to all developments that consist of more than 80 units. However, some unscrupulous developers are submitting plans for projects of 80 units and under, then splitting units once construction is complete. Buyers can then be prevented from selling their units on, as the development they have bought into is no longer either of less than 80 units or meets EIA requirements. The Secretary confirmed that in projects found not to be EIA compliant, the buyers may not be allowed ownership transfer.

Eight Ua Athorn low-cost housing projects have fallen foul of the EIA regulations already and despite the fact that the developments have been completed, they have failed on EIA and ownership transfers have therefore been restricted.

[Irene]

Good point! I have also been concerned with the EIA requirement but feel partly relaxed since the developers have to find ways and means of meeting the EIA rules in order to get my 70% final payments. My risk is with my 30% payments. Because the developer has a higher stake, so I feel not too bad. Furthermore, the end result is with higher costs for the developers for more greenery which will benefit buyers in the end.