Unbuilt Phuket condo buyers appeal to Gov to push refunds

[webfact]

Unbuilt Phuket condo buyers appeal to Gov to push refunds
Tanyaluk Sakoot


Not at all happy: Buyers Didier Giesen (left) and Paul Schmieken.

PHUKET: -- Thai and foreign buyers in a stalled condo project in Patong went to Provincial Hall on Wednesday (May 6) to push for the return of money they have already paid to the development company.

Construction of the 196-unit Ace 1 Condominium project, on Sai Nam Yen Rd, was scheduled to begin in February 2013 with completion last month. But, say the buyers, the site is still bare.

Because of an internal dispute within the development company, nothing has been built.

Advertised prices for Ace units run from B1.7 million for a studio apartment to B12.7 million for a penthouse. But although the buyers have paid almost all of the price, none of the units exists yet.

So on Wednesday a dozen buyers went to the Damrongdharm Centre to lodge a complaint and then met with Governor Nisit Jansomwang.

Buyers signed standard contracts with a deposit and monthly payments over 18 months from September 2013 to February this year, with handover of units supposed to have taken place last month. That was when the buyers found that nothing had been built.

Damrongtham Centre chief Prapan Kanprasang told the angry buyers, “All documents about deposits and payments must be given to the Damrongdharm Centre. We will pass on your demands for information to the project owner.”

Totsapon Ampasatien, administration officer of project told The Phuket News by phone, “Actually, this project should have been completed by July this year. But now it will probably be next year.

“The project cannot be completed [at the moment] because of a problem inside the project. I am not at liberty to say what that problem is.

“About 17 people have demanded their money back. The company will repay all the money, though I don’t know how just yet.

“Refunding the money is is not the problem. The problem is an internal company issue.”

After visiting the Damrongdharm Centre, the disgruntled buyers then met Governor Nisit Jansomwong and explained the situation to him. He also held a separate closed-door meeting with a representative of Ace.

Didier Giesen who paid to ACE condominium project. He told, “I bought two units in Building 1. I paid every month to their bank account.

“Finally, we found that after two years nothing has been built. I hope the governor’s office can help us to [rectify the situation] before things get stupid.”

Paul Schmieken, from Sydney, Australia, added, “We sent the payments, and we expected to get receipts. But all we got was emails saying, “Got it. Thank you very much.”

Mr Giesen said, “I want my money back. We met Alisa [”Note” Likitittiruks, Deputy Managing Director of Ace Condo] when we saw that nothing had been built. She is the daughter of the owner. But now she does not answer my calls. We can’t get in touch with her or the project owner. They might as well be invisible.

“We have a lot of questions about this but Alisa does not reply to my emails. We are upset about this.”

Mr Schmieken added, “You can visit the Ace sales office near Patong Hospital. You will meet nice girls who give you a glass of water but they can’t answer any questions.”

The Phuket News could not contact the owner of the project or even get an appointment to meet him, but did manage to get hold of his daughter, Ms Alisa.

She told The Phuket News, “At present I can give you no comment about the condominium project. Everything now is in the courts.”

Source: http://www.thephuketnews.com/unbuilt-phuket-condo-buyers-appeal-to-gov-to-push-refunds-52223.php


-- Phuket News 2015-05-08

[carvets]

Strange,....I was in Sai Nam Yen last year and i saw 4 or 5 stories of a structure that was going up. Although there was no work going on at the time, but a couple of weeks later i saw lots of workers filing into the site early in the morning. Seems it starts and stops.

[Xonax]

Buying condo´s off the plan in Thailand is like a lottery. If the condo´s are actually being built, you will gain a large profit. If not you will take the loss without crying.

[thhMan]

The internal problem could be that the money has funded some nice sports cars and holiday homes in other countries... Im sure Alisa will reply to the emails as soon as her private massage and designer clothes arrive... Priorities first!

[phuketrichard]

Sorry BUT

First rule

NEVER BUY ON SPEC in THAILAND

[harleyclarkey]

A couple of things bother me.

Why did the buyers pay monthly? I have never heard of this. A deposit is the norm

Why did they continue to pay when nothing was built?

Why did the red flag not go up when their payments were acknowledged with an email (!!) that said "Thanks" .

Bizarre.

[Kerryd]

Never forget Ocean Tower 1 ! (http://www.ocean1tower.com/index.php#home)

[Braddockrd]

Buying condo´s off the plan in Thailand is like a lottery. If the condo´s are actually being built, you will gain a large profit. If not you will take the loss without crying.

That is the most retarded comment I have ever read. You probably have never bought property in Thailand.

Edited May 8, 2015 by Braddockrd

[OmarZaidMD]

And ... iittttt's ........ GONE !

[Robert24]

why should the government get involved in this?

[FangFerang]

“Refunding the money is is not the problem. The problem is an internal company issue.”

If anyone is daft enough to believe this, I am selling timeshares at Buckingham Palace for 1-20 million euros.

[wowfactor10]

He says : About 17 people have demanded their money back. The company will repay all the money, though I don’t know how just yet.

“Refunding the money is is not the problem. The problem is an internal company issue.”

I disagree in these cases Its always the money that is the problem...

[ChiangmaiRob]

I'm wondering why it was only after they had paid every month for two years, that they discovered the project hadn't even started. I know if I had been paying into a project, I would have been making regular checks at the site to ensure all was going according to plan!

[ozyjon]

“The project cannot be completed [at the moment] because of a problem inside the project.

I am not at liberty to say what that problem is.''

Should i tell you what it is, naaaaaaaaa i aint gonna

[Suffinator]

Yet another reason NEVER to buy property in Thailand. Seriously you can't be playing with a full deck if you do and when you are scammed you deserve it for being so stupid. A fool and his money is soon parted ... obviously a mantra that some foreigners haven't yet fully understood.

[Johnny S]

Buying a condo that is not yet build is gambling with your money - people say otherwise are realtors ...

[rethaier]

Kiss your money goodbye. There is no way I would give money to a Thai for something they cannot yet deliver.

[mango66]

Buying condo´s off the plan in Thailand is like a lottery. If the condo´s are actually being built, you will gain a large profit. If not you will take the loss without crying.

I will and would take the loss with a cry,

as we did beleave Thailand is a developed country,

I never would have bought in Africa like this,

but today it looks like AFRIKA !!

[joebrown]

Buying condo´s off the plan in Thailand is like a lottery. If the condo´s are actually being built, you will gain a large profit. If not you will take the loss without crying.

That is the most retarded comment I have ever read. You probably have never bought property in Thailand.

'Xonaz' is absolutely correct. Sadly, I have personal experience of the 'buying off-plan' lottery results. The (Thai) developer I trusted with my money provided a product that fell way short of the promotional/advertising literature. Thai condo law states that the advertising literature forms part of the contract as it influences the decision to buy. OK so far....BUT trying to gain compensation is total waste of time. I (and other buyers) went to the Consumer Protection Office, and the Official's initial remark was " you're lucky, at least you have an Ownership Deed, because there are many other people who pay money and get nothing!" We then went to Provincial Court and the basis of any claim is subject to 'arbitration'. In other words, the developer can screw you, but the most you will be compensated for will be 50% of your claim. Also, Thai Defamation laws are heavily stacked in favour of the defaulting developer, because it is a criminal offence to make any adverse comments about the product/developer, even though he may have been in the wrong.

My advice about buying 'off-plan' in Thailand is, and always will be 'caveat emptor'.

[mango66]

I'm wondering why it was only after they had paid every month for two years, that they discovered the project hadn't even started. I know if I had been paying into a project, I would have been making regular checks at the site to ensure all was going according to plan!

checks are useless,

You have 100dred similar examples here in LOS,

I also pay to some one of this,

any minute to spend is lost,

all what you can do is pray, beg and hope !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

GVT is aware of this, do nothing,

as in majority,

the money just flows from reach farongs to poor Thais !!

[MobileContent]

I only buy from top developers with a proven track record and will inspect the site every two months. Furthermore I have my own lawyer that overlooks the contract and the first payment always goes via a lawyer. I have owned three condos in Thailand in the past 25 years and two I resold which was President Park Bangkok in the late 90's and Nichada Thani Bangkok in 2001.

Now I only own a small studio at Metro Park which is rented out.

[ChiangmaiRob]

I'm wondering why it was only after they had paid every month for two years, that they discovered the project hadn't even started. I know if I had been paying into a project, I would have been making regular checks at the site to ensure all was going according to plan!

checks are useless,

You have 100dred similar examples here in LOS,

I also pay to some one of this,

any minute to spend is lost,

all what you can do is pray, beg and hope !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

GVT is aware of this, do nothing,

as in majority,

the money just flows from reach farongs to poor Thais !!

"checks are useless" ... What utter nonsense! You sign a contract for your condo to be built, pay a deposit and monthly payments as per that contract. That contract will also have a project start date and expected finish date and if the project doesn't start, the developer has broken the contract. After checking and finding the developer hasn't started the project, you simply defer your payments until the developer honours the contract by starting the project. At least that way you haven't potentially lost the full cost of your condo, maybe only the deposit and a couple months payments.

[Eric Loh]

The same bumbling government will be deciding on our charter and economy. Scary future.

[realenglish1]

This is really disturbing What is the name of the company that is building the project No where in the Story does it state what the name of the company is

Just the name of the Condo We should know the company name too

[markeewan]

A couple of things bother me.

Why did the buyers pay monthly? I have never heard of this. A deposit is the norm

Why did they continue to pay when nothing was built?

Why did the red flag not go up when their payments were acknowledged with an email (!!) that said "Thanks" .

Bizarre.

I have bought a condo in Thailand from Areeya with a down payment and then monthly payments for about 18 months. When I looked at other developments they all seemed to have similar payment plans. The contract also can have a late payment penalty and so for each month past the completion date there will be a refund upon completion.

As an example the house I bought recently in Bangkok was a month late because of the turbulence last year. (all the Cambodian workers exited the country) and we got 12-15000 Baht refund upon completion.

[ChrisY1]

I liked the piece where she said that her name should not be used........I'de be spreading it everywhere!

[HerbalEd]

I think it's very foolish indeed to pay for an apartment that doesn't even exist.

[lumply]

No sympathy. Why do people do it then expect the Government to underwrite their mistakes? Good luck to the OP anyway; we all make mistakes.

[micmichd]

So, it's a European - Thai Scam going on. I'm also involved in one, initiated from UK, reported it in Europe, hit me in Thailand, no Thais involved. All scammers in UK, but part of it all was promised to a Thai family.

Any chance to hand this case over to Thai authorities?

Edited May 8, 2015 by micmichd

[joebrown]

I liked the piece where she said that her name should not be used........I'de be spreading it everywhere!

As I said in my earlier post, be careful what you say in public about any 'defaulting' developer. Even though the developer may be in the wrong, if you say anything which might be construed as damaging their reputation , don't be surprised if you then find you are facing a criminal defamation charge.