Building Gone Bad

[patsfangr]

Several years ago my Thai wife and I made a $5000 down payment for a home to be built in a development in Bangkok. I forget the exact location. I believe it was somewhere in Ratchadapisek, just off of Rama IX. We paid installments on it for a few years.

Then, following 9/11, the developer went broke. With little more than the frame of the house completed, construction stopped, and our money was dust in the wind.

My wife's relatives looked into it for us, but we've been told that the legal process for pursuing recompence, or even laying claim to the land, is virtually hopeless.

Although I am resigned to that as the "Thai way", I'm curious as to whether any of you have had, or know of, a similar experience. If so, do you think there is any chance for us to get something out of the thousands of dollars we have put into that property. Do you know of any specific attorneys or agency that might be able to help?

I know I can' t use "U.S. legal logic" here. But it just seems outrageous by any standard that, since the land is still there, we shouldn't at least be able to claim that.

Comments?

George

[LoveDaBlues]

Who owns the property now? I'm guessing a bank. You're probably screwed. Sorry.

I was only in Thailand for 2 months but I learned one thing quickly. Get the goods or services first.....then pay.

[Braccobaldo]

..obviously I'm sorry for you..but take it easy...$5000 is not a big amount and this kind of things happens not only in Thailand, in Europe too...I heard of many people involved in constructor's bankrupcy, some of them losing much more than 5000$...this can happen buying cheap just on the project...my father too, don't take my advices and some years ago him lose about 10000 euro for a "ghost property" along the Austrian/Magyar border...next time buy what you can see..

[taxexile]

Several years ago my Thai wife and I made a $5000 down payment for a home to be built in a development in Bangkok.

I forget the exact location.

i'm sorry to hear you lost out but how can you forget the exact location ,

didnt you get any documentation with your deposit.

[patsfangr]

Several years ago my Thai wife and I made a $5000 down payment for a home to be built in a development in Bangkok.

I forget the exact location.

i'm sorry to hear you lost out but how can you forget the exact location ,

didnt you get any documentation with your deposit.

<{POST_SNAPBACK}>

There is documentation, but one of our nieces in Bangkok has is. I just meant that I can't remember it precisely. I've actually been there twice. Once when we signed the paperwork, and then again a few months later, when the construction was underway. It was a real property, with a real house being built. But the construction stopped, and that was the end of it.

[lopburi3]

Am not sure how 9/11 caused a building problem in Thailand.

As with so many off plan constructions it is a buyer beware situation. Often the land is not owned and the company so weak financially as to spell disaster waiting to happen; so when something like this happens there is very little that can be done. If the company is insolvent throwing money into lawyers is probably just a waste.

[haha]

usually, people in thailand like to do business with people they know. sort of networking.

so, my first question is - does your wife or her family know the developer?

[patsfangr]

Am not sure how 9/11 caused a building problem in Thailand.

As with so many off plan constructions it is a buyer beware situation.  Often the land is not owned and the company so weak financially as to spell disaster waiting to happen; so when something like this happens there is very little that can be done.  If the company is insolvent throwing money into lawyers is probably just a waste.

<{POST_SNAPBACK}>

I believe most would agree that 9/11 sent the economy of most of the world into a downward spiral. Look at what happened to the Thai economy in 2002. But that was just a side note. I certainly don't want to get into any socio/economic or political issues here.

As for the buyer beware issue, you are totally correct. It was my error to simply follow the recommendation of our oldest neice, who was, at the time, a VP at Thai Citibank. I am not going to blame her for the situation, as I don't know the full circumstances of the developer's collapse. She may have done her homework well, and we were simply victims of an unavoidable situation. In any case, I should have gotten more involved in detailed examination of the developer's solvency and reputation. My bad.

I gave up on recovery, and accepted this loss a couple of years ago. Just thought I'd ask here, in case someone knew of course of action that we had not pursued. No more weeping over the spilled milk.