New Govt Regulation On Name Change On Developer Purchase Contract

[tangoll]

I heard from some Thai friends that the government has enacted a new regulation that developers can no longer charge for and collect any fee (usually called a name change fee) when the holder of a purchase contract sells his right to the condo unit (or maybe even land/house unit) before the formal transfer of ownership upon completion of the unit.

Does anyone here know anything about this new regulation? Key points, when enacted, and does the developer have to accept the change of name on the purchase contract without charge or cost? Any limit on the number of times that the contract name can be changed? If this regulation had been in the works for some time, I can't imagine the developers not putting up a big fight against its enactment.

Will this regulation encourage or dampen the flipping of contracts?

[thaiwanderer]

Not aware of such new regulation.

Difficult to see how it could be enforced in any event.

If you wish to avoid paying such a fee purchase / lease in the name of an offshore company.

This has other possible advantages too

[Raptor7]

correct (if you are talking about new off-plan freehold condos on sale---doesn't apply to longterm leaseholds (which arent technically condos)---or houses, townhouses, etc.):

(a) new Condo Act of 2008 (Section 6/2) states that a condo developer selling condo units must now use a prescribed sale and purchase agreement as notifed by the Ministry of Interior.....

(b ) Deputy Minister of Interior (referring to Section 6/2 of Condo Act) issued a notice this past July that now legally requires condo developers to use a government form sales contract called "Or.Chor.22" when selling condos....if you (or your g/f..b/f..PA..secy or atty) can read Thai (and he/she can adequately explain back to you) check out the Depart of Land website that sets out the whole Ministry Notice and sales contract form.... http://www.dol.go.th/lo/sst/mt05173tv17301.pdf

(c ) under Section 4.5 of that form sales contract ("Or.Chor.22"), developers are not allowed to charge a contract transfer fee...(... any appendix (or otherwise) to the contract purporting to charge a transfer fee contrary to such Section is VOID/not enforceable)...

(d) there are alot of other interesting provisions, tipping some power to consumers instead of developers....(some condo developers...like the one building the new Saladaeng Residences...forgot about this)....

spread the news

Edited October 29, 2008 by Raptor7

[tangoll]

Thanks, raptor7, for the information. So it appears that developers must use the new govt contract for off plan sales after July 5, 2008, and such contracts do not provide for charging a name change fee. Developers' contracts entered before the enactment of this new law would not be affected by this regulation, and thus, a name change fee can still be charged upon resale of the contract, even if the resale occurred after July 5th. Nice to know anyway. Can you summarize what are some of the other benefits for condo purchasers under the new contract?

Thanks.