Owning A Condo

[edh]

Dear all,

I have signed a deal to buy a condo at the Chateau Dale lowrise condominium.

Yesterday I got an alarming e-mail from the owner where they explain that

We are pleased to inform you that we are now ready to transfer

ownership to

you. . As now upon instructions from the Pattaya Land Office,

Chateaudale

low rise condominium will no longer be available as a 100% foreign

ownership development as originally understood by all parties. This

ruling

also affects many other condo developments in Pattaya and around

Thailand.

This means ownership will now have to be split 49% foreigners / 51%

Thais.

We have addressed the situation and after careful consideration and

deep

regret, we can see that the only way to resolve the matter fairly is to

offer the 49% to the customers who paid their deposits and signed

contracts

on the earliest dates in each building.

I have problems understanding what the really mean. The original contract states that I am to be the sole owner of the condo. Do they mean 49% ownership of the condo or is it the land where the project is built on??

The contract was checked by a lawyer before signing and everything then looked ok (abt. 2 years ago) but now??

Should I contact a lawyer again to review the contract or?

Anyone with good suggestions in what to do in this for me very important matter?

Confused/tricked farang?

EDH

[monty]

Rather strange, since i thought this always has been so!

I think it's 49/51 % based on how many sqm living area available in the building...

If it is this means it's a major mistake on the part of the sales team, maybe they hoped the law would change by the time the building was finished?

[eyebee]

Here's a summary of the current law:

There are three legal acts relevant to the purchase of a condominium unit by an alien, being the Condominium Act B.E. 2522 (or 1979, the Condominium Act (No. 2), B.E. 2534 (or 1991) and the Condominium Act (N. 3) B.E. 2542 (or 1999) issued on 28th April, 1999. Until recently, foreigners could only own forty percent (40%) of the aggregate unit space. This has been amended to 49% of the aggregate unit space although the ministerial regulations governing this change have not yet been issued. The new Act allows that aliens or alien juristic persons (majority foreign-owned companies) can own up to 100% of the aggregate unit space registered in a condominium up to 27th April 2004. The total development area in that case must be under 5 rai (8000 m2) and located in Bangkok, all municipal districts and "such other areas as shall hereafter be announced by the Minister of the Interior to be foreign

owned, provided always (this is unchanged) that the funds for the purchase have been remitted from abroad".

Maybe Chateau Dale is over 5 rai, or it's outside the municipal district of Pattaya (it's in Jomtien on the Thappraya Road), or maybe it won't be completed until after 27th April 2004.

Anyway, you still own 100% of your condo, it's just that only 49% of the condominium development can be owned by farangs.

Interestingly, I just bought a condo at Markland on soi 1. I was told that 100% of the condos there can be foreign owned as it's under 5 rai, and inside the municipality of Pattaya.

I guess the developers of Chateau Dale must be really unhappy at the moment - but they should have done their homework.

[edh]

Thanks Eyebee..

I think the development is 3.5 rai according to the contract and yes, it is maybe outside the muncipal district of Pattaya (located by the new Bruno restaurant and corner Thepprasit rd).

Anyway, this eased my frustration a littlebit.

Now I only have to caugh up the cash before they sell my condo to someone else, I am currently in the states and will not be in Pattaya until May and they seem desperate getting their funds collected.

Thanks all for your time to answer.

This thai expat forum is great.

Regards

EDH

[naka]

EDH.

Note that as of 27th April the 100% foreign ownership law in force for the last four years or so becomes null and void FOR NEW DEVELOPMENTS regardless of the location/rai amount.

It will be the case that the first 49% to put up their money will get the unit registered in their own name and the rest of the farangs ??????? Company owenership ?, Thai partners name, ? Ouch.

Note that the 100% foreign ownership law was always considered to be "temporary" and was brought into effect due to the Thai economic meltdown of a few years ago.

Naka.

[tuky]

Understandably, the Thais worry that foreign ownership will push the prices of Thai property to a point that Thai people cannot buy a home/condo/block of land.

I understand and have no problem witht his, BUT there should be exceptions ie a condo. maybe in a certain area or block, even a moo barn.

Luckily for me my wife 100% trustworthy so I can rest assured that our house is in her name (of course the car and the prospective condo will be in my name )

[tuky]

Sorry, lets substitute the word "Thais" to "Our HOSTS" as we are the aliens here, and always will be.

any comments on that?

[edh]

Hi all!

Got the message from the seller of my condo that I am one of the 49%. There are still farangs in "line" for an open spot. If not I guess they will have to be company owned as they now are doing with the units sold to farangs in the newest View Talay building. It is a mess as I can understand.

View Talay is paying the taxes (3 years) for all farangs over 49% and thereafter every farang is on their own...

EDH