When A Condominium Lessee Renegs On His Obligations.

[up2you2]

The following Public Notice was published in one of the Phuket weekly newspapers this week :

Public Notice

Notice is hereby given to the Lessee (Teo Kah Kheng and Emile Aryaan Nolten of 17 Bo Seng Avenue, Singapore 1130) of condominium unit LV/S-04#1111, unit registration No.29/11 in Allamanda I Condominium Project to make payment of outstanding common area fees in the amount of 336,879.04 Baht invoiced by you by the Condominium Juristic Person. If the outstanding balance is not settled on or before 16th December, 2012, the Lessor (Laguna Grande Limited) shall consider this material breach of contract and the lease shall be terminated forthwith and all previous lease premiums being forfeited.

Made on this 2nd day of November, 2012 by the authorized Directors of Laguna Grande Limited.

Can anyone throw some light on this subject, what happens if this mater does end up in the Courts, if the defendant losses can he appeal, how long does this process normally take, and what costs are incurred by both parties?

In the event these fees are not reimbursed, then is this deficit, plus litigation costs then divide by the remaining Lessees?

[BlackPuddingBertha]

"outstanding common area fees in the amount of 336,879.04"

One hell of a bill for common fees.

[MrRealDeal]

The normal course of action for people who don't pay the fees when they own, is nothing is done until the unit is sold, for renters they can be booted , but normally the assoc. will file with a court and the fees must be paid to transfer the title to a new buyer. The other people are not responsible exept to the extent that the people who pay generally have to pay more when others don't to keep the services running.

[trogers]

The normal course of action for people who don't pay the fees when they own, is nothing is done until the unit is sold, for renters they can be booted , but normally the assoc. will file with a court and the fees must be paid to transfer the title to a new buyer. The other people are not responsible exept to the extent that the people who pay generally have to pay more when others don't to keep the services running.

"...the Lessor (Laguna Grande Limited) shall consider this material breach of contract and the lease shall be terminated forthwith and all previous lease premiums being forfeited"

This is exactly what the Lessor is doing, giving notice and if still default, boot the Lessee out. Just that this agreement seems to be on a 30-year lease.

[Langsuan Man]

The normal course of action for people who don't pay the fees when they own, is nothing is done until the unit is sold, for renters they can be booted , but normally the assoc. will file with a court and the fees must be paid to transfer the title to a new buyer. The other people are not responsible exept to the extent that the people who pay generally have to pay more when others don't to keep the services running.

"...the Lessor (Laguna Grande Limited) shall consider this material breach of contract and the lease shall be terminated forthwith and all previous lease premiums being forfeited"

This is exactly what the Lessor is doing, giving notice and if still default, boot the Lessee out. Just that this agreement seems to be on a 30-year lease.

trogers,

I agree sounds like it BUT I was under the impression that with 30 year leases, the money was payable in advance

[bangkokburning]

But they really cant go after him for 30yrs of condo fees no? The owner will surely relet the place and that person will pay fees. This is just pure grubbing windfall. I can't see how any reasonable judge (outside 3rd world) would allow.

[Delight]

This situation is I think somewhat unusual –but not unique.

The co –owner of this condo is Laguna Grande Limited.

That company leased the condo on a 30 year deal. Presumably the money paid ,by the lessee , was close to the sales price of the condo, and was paid up front. The deal will feature on the Chanote

The lessee ,for his own reasons, did not wish to buy via a Thai company

The deal specified that the lessee paid the maintenance fees.

It’s all down to the detail specified on the contract.

Presumably the leasing contract is revoked if fees are not paid.

The Condo Act specifies that the co –owner pays the fees.

There is no reference to Leasing contracts.

Therefore Laguna Grande Limited owe the money –not the lessee.

The Jurisitic Person can sue Laguna Grande Limited and presumably that is what is about to occur.

The numbers will all work out when the leasing contract is removed from the Chanote and the condo can be sold.

The Notice referred to by the OP is the first stage in this process.

In the meantime Laguna Grande Limited owe 336,879.04 Baht

Edited November 27, 2012 by Delight