Buying Off The Plan Condo

[cyrax]

Hi,

Sounds stupid, but its driving me insane at the moment as I haven't bought any property in thailand.

If anyone can give me any advice it would be so help for, here are my questions

1.When buying an off the plan condo, do they give you a title deed or some sort of letter saying that you will own the unit in your name?

I mean thats before you sign the contact as I have heard of people signing the contact then the people that own the condo can still sell it under you.

2.Do you also get the yellow book after the condo is finished built or after you have signed the contract.

Any help would be great as its doing my head in at the moment

Thanks

Shannon

Edited September 12, 2011 by cyrax

[Wonderboy]

All you get is a signed contract and receipts for deposit and downpayments. Title deed can not be issued before the building is completed, even if you should pay in advance. My advice to you is never buy off plan unless you have no problems walking away from it all. Contracts dont mean much in this country, and a builder's good reputation not much more. What you are shown in the prospect is at best similar to the end result. Build finish, material quality and completion time will almost without exception be inferior to what is expected. I bought off plan once, never again... The upside is there, but the downside risk is so much greater. I could elaborate a lot, but nobody listens to advice anyway...

Good luck,

WB

[london]

Hi Cyrax,

having bought property in Thailand over the years, I have adopted one policy that my lawyer advised me to do:

DO NOT BUY OFF THE PLAN

There are too many things that can go wrong and if you think you're guaranteed to get your money back, think again.

I was looking at buying off the plan around 4 years ago, but my lawyer (Thai) advised that due to the fact that builders come and go, specs change, projects don't complete....or if they do, often NOT within the specified time, fitouts change (as I believe is now happening with a major development), it was best to wait until the project has completed.

His view was that the only possible downside may be that the price increased due to completion, "but at least you can sleep at night".

I have never regretted taking his advice.....and I hope its helpful to you too.

[london]

All you get is a signed contract and receipts for deposit and downpayments. Title deed can not be issued before the building is completed, even if you should pay in advance. My advice to you is never buy off plan unless you have no problems walking away from it all. Contracts dont mean much in this country, and a builder's good reputation not much more. What you are shown in the prospect is at best similar to the end result. Build finish, material quality and completion time will almost without exception be inferior to what is expected. I bought off plan once, never again... The upside is there, but the downside risk is so much greater. I could elaborate a lot, but nobody listens to advice anyway...

Good luck,

WB

100% correct !!

[ShopBoy]

All you get is a signed contract and receipts for deposit and downpayments. Title deed can not be issued before the building is completed, even if you should pay in advance. My advice to you is never buy off plan unless you have no problems walking away from it all. Contracts dont mean much in this country, and a builder's good reputation not much more. What you are shown in the prospect is at best similar to the end result. Build finish, material quality and completion time will almost without exception be inferior to what is expected. I bought off plan once, never again... The upside is there, but the downside risk is so much greater. I could elaborate a lot, but nobody listens to advice anyway...

Good luck,

WB

100% correct !!

Absolutely agree

[stgrhe]

Well, you could buy off plan provided:

1) You are able to get a very detailed, balanced and well-worded contract; AND

2) A reasonable payment plan that follows the construction (never pay anything for nothing); AND

3) Payment through an escrow account.

I have yet to hear of anyone who has managed to accomplish that with a Thai developer.

[kwonitoy]

1.When buying an off the plan condo, do they give you a title deed or some sort of letter saying that you will own the unit in your name?

I mean thats before you sign the contact as I have heard of people signing the contact then the people that own the condo can still sell it under you.

From a reputable builder you'll get a contract with a copy of the building's chanote and exact details of you're unit, down payment, payment schedule, EXPECTED time of completion, amount to pay on completion (typically three years). You'll recive your title when you pay up fully at the end of construction and you can register it in your name if your in the first 49% of foreingers to apply.

2.Do you also get the yellow book after the condo is finished built or after you have signed the contract

After it's built and paid for when you register at the land office you'll recive your chanote and a BLUE book, you're name cannot go in this book. The yellow book is a whole different kettle of fish.

I personally bought off plan 6 years ago from View Talay, They are probably the only company I would touch for off plan, they don't build award winning buildings but they do build what they say they'll build. I bought in VT7 and it was a LONG four years to completion. But because I got in at the start I got a front unit at a price that has since appreciated in value.

I WOULD NEVER DO THIS AGAIN. It's to nerve wracking

[Raptor7]

Well, you could buy off plan provided:

1) You are able to get a very detailed, balanced and well-worded contract; AND

2) A reasonable payment plan that follows the construction (never pay anything for nothing); AND

3) Payment through an escrow account.

I have yet to hear of anyone who has managed to accomplish that with a Thai developer.

I would be very interested if anyone knows of any developers that have set up an escrow account (with a third party bank).... I'm also looking to buy off-plan......some projects in the pipeline look kinda interesting...

in the past, I've bought several off-plan...but happened to have sold off the contracts before the building completed...

[Wonderboy]

I personally bought off plan 6 years ago from View Talay, They are probably the only company I would touch for off plan, they don't build award winning buildings but they do build what they say they'll build. I bought in VT7 and it was a LONG four years to completion. But because I got in at the start I got a front unit at a price that has since appreciated in value.

I WOULD NEVER DO THIS AGAIN. It's to nerve wracking

I agree. Building schemes like View Talay is the safest you can get if buying off plan. You get a bare shell and fit it out yourself. Then you can have control over the materials and finishing, and dont have to endure air conditions to weak to cool the rooms, hoods that just blow air into the ceiling, uneven tiles of the cheapest Chinese grade, leaky windows, bad grouting and so on. Typically things you either dont notice at first or you have no chance in getting the builder to rectify no matter what the contract says. Then again, I would not like to live in VT, but that is another story...

WB

Edited September 13, 2011 by Wonderboy

[pauljones]

I would recommend you take a look at the 5,000 or mare available rooms for sale that are completed.

[iluvbeaches]

Jumping in here... problem is most of the available units in better buildings seem to have seriously inflated prices. Esp if you look at buildings that have good management companies like thos AP buildings.

I had a friend who bought at sutthisan a building by SC Asset (Taksins company I am told). Company is publicly traded, has tons of buildings under its belt, contract in English, 49% ownership or less guaranteed. Best part is its a monthly payment plan for a total of 10% spread over 1,5years then remainder paid when they turned over the keys. If they breech contract they owe paid in amount plus interest 8% i believe. Price was about 1m under any already built comparable apt in the area.

I am sure things could go south but I think the upside is pretty good if you go with reputable, publicly traded companies and you are not in a rush.

[wpcoe]

ISTR one of the big projects in Pattaya had a problem wherein they "promised" farangs who were buying off plan that they would be in the 49% allocation that could be owned in a farang name. However, they over-promised beyond the 49%, and not all the units "promised" could actually be registered in farang names when the time came to register them at the Land Office.

So, if you are buying off plan I would make sure there is a *guarantee* that your unit will be able to be registered in your name.