Phuket home owners still battling Chom Tawan developer, bank

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Phuket home owners still battling Chom Tawan developer, bank
Nattha Thepbamrung


More trouble for Napawan and the Streets: Tawan Views, photographed from a neighbouring property.

PHUKET: -- The supposed December 17 deadline for agreement on a deal over the troubled Chom Tawan development – when, some home owners feared, they would be evicted from their homes – passed without incident.

This is despite developer Napawan Co Ltd failing to pay the remaining debt to the Industrial and Commercial Bank of China (ICBC), a debt that was secured using the land titles and the homes.

“The payment has not been made. The bank and the builder are starting the auction process, which will take some months,” said Daryl Davies, 70, from Australia, who bought a condominium in Chom Tawan three years ago.

He said that more than 20 cases have been filed in the Phuket Court against Napawan and its principals, Andy and Julie Street.

Some buyers are also suing ICBC for accepting the mortgages on their properties as collateral on the Napawan loans without the home buyers’ knowledge.

“We [the buyers] are trying get the court’s consideration. We have also filed our case with the Bank of Thailand.”

“It should take around six months for the auction process. Mr Street told us that he had offered a plot of land [elsewhere] to the builder instead of money, and that the deal was accepted. We are waiting to see what happens next.”

Meanwhile, it has emerged that the Streets have more problems over another project, Tawan Views, overlooking Ao Por on the northeast coast of Phuket.

That project, consisting of 24 units in six buildings, ground to a halt more than three years ago with the main structure completed.

The builder of that project, Pisanu Vorawath, has told The Phuket News that he has been owed B15 million since the project stopped and, despite repeated assurances from the Streets, he has yet to receive a penny.

The project website describes Tawan Views as “80 per cent complete” and offers buyers the possibility “to design and finish your own ‘shell’ apartment and buy at up to 32% off the standard price!!”

The full prices as advertised on the website range from B19.75 million to B45.6 million for the “new” three-floor mega-penthouse.

Mr Pisanu told The Phuket News that he was owed B13 million in retained fees and another B2 million for water and electrical work he had done after the main construction halted.

Most construction contracts stipulate that the client withholds a percentage of payments until the contract is completed to the client’s satisfaction.

Mr Pisanu pointed out that he did not call a halt to contruction; the client did, and should therefore pay the B13 million retained.

He also noted that he had received multiple SMSs from the Streets promising payment soon, which indicated that they agreed that he should be paid.

As a result of not being paid, Mr Pisanu’s company – which once employed 150 workers – is now effectively dead. All staff apart from a handful have been found jobs elsewhere and he is being dunned by creditors.

Mrs Street, who is a director of Tawan Views, told The Phuket News, "Tawan Views is being restructured under the guidance of professional advisers. We are preparing to [re]commence the project 1st or 2nd quarter next year [2015]."

Asked whether he believed this, Mr Pisanu just laughed. He is considering legal action.

Additional reporting by Alasdair Forbes

Source: http://www.thephuketnews.com/phuket-home-owners-still-battling-chom-tawan-developer-bank-50344.php


-- Phuket News 2014-12-29

[hansgruber]

Westerners should be banned from developing property in Thailand. Just up and leave when the market slows.

This is why I never get western run businesses to do work for me.

[gamini]

The biggest crooks in Real Estate business in Thailand are farangs

[Guest]

I would not mind if that project would some day finnish. It could be nice to have more people to Ao Por.

A bit south of the project, close to the 'ghost hotel', which also never finished, is some land clearance going on at the moment.

How the Tawan views looks today.

[Nuddy]

Amazing Thailand

So this is a development run by a falang?

It gets even better.

Regards

[hansgruber]

This is just another case of robbing Peter to pay Paul.

Some investors/buyers have a false sense of security when buying from another westerner thinking they are more trustworthy than those cheating thais stories they hear.

I hope for a good outcome for these people but I doubt it seeing who their dealing with.

[robertthebruce]

I cannot believe IT, I nearly bought a property there about four years ago, but was very hesitant when it was not complete, and to be honest, now that they have built that new development just in front of it, it now looks an eye sore.....

Ao Por is a lovely area I will admit.

[pitchag]

When will people learn never to buy off the plan, if the building is not finished completely stay away from it

Off the plan was big on the Gold Coast in Australia many years ago so many lost money when property slumped and prices crashed and they owed more than the property was worth.

Basically off the plan works like this the developer does not have the funds to complete the project so he effectively borrows the money from you by selling off the plan at zero interest rate, if he goes belly up you lose it all.

Another way they get funds is to complete a project but hold back the deeds (chanotes) of the condos sold and lodge these with the bank to secure a loan for the next project again if they default you lose everything.

When I bought my condos I handed over the money when they handed me the chanotes at the land office

Do not trust the slick talking sales people at the temporary sales office on a building site 90% of them downright lie and the other 10% don't tell the whole truth

BUYER BEWARE is a great saying never to be forgotten

[mercman24]

seen it happen in Spain, when i lived there, one whole estate, half finished, the builder owed millions, roads not finished. manholes protruding 1 foot in the air, the poor people living there will never be able to re-sale, so their property is worth nothing.

[Bogan Koori]

Farang Real Estate agents in Thailand are completely untrustworthy. They get involved in scams like this one or hang around for that once in a year sale commission. They are completely unregulated, anyone can just set up a real estate company and website.

They are easy to spot with their plastic boxes on the backs of their scooters, wearing linen pants, loafers and collared shirts. They often try to rent cars off me when there is prospective buyers in town. The usual spiel is... 'Hey Im just in the process of closing a deal, and I am waiting for the cheques to clear...blah blah, Im just going to pick up the prospective clients from the airport for the next few days, do you mind if I pay you next week to rent your Honda Jazz, I have some really good land I can get for you cheap in Krabi orKoh Yao Noi, business is going great, you know now is the time to buy, its really booming?" I normally reply "Sure you can pay me next week, and you can pick up the car then too"

These imposters try to project affluence when they have nothing. To me they are no different to timeshare touts.

[NamKangMan]

I would not mind if that project would some day finnish. It could be nice to have more people to Ao Por.

A bit south of the project, close to the 'ghost hotel', which also never finished, is some land clearance going on at the moment.

How the Tawan views looks today.

That picture tells the story of a thousand shattered dreams.