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maintenance fees after buying a condo on auction


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Hello,

After purchasing a condo on auction, which part of maintenance arrears do you have to pay to condominium management ?? Saw two lawyers.. One says only 5 years arrears can be recovered, the other one says full amount...

How are the interests calculated ??? I saw compbound interests are not allowed.. so I imagine for example for year minus 5 from purchase, should be for example 10.000 bahts.. o which 20% is 2000 bahts, which would come to 10000 bahts = 5 times 2000 so, total 20000 bahts ??

If interest is counted differently could be much higher.. 10.000 bahts + 2000 first year, then next year 12000 + 20% etc...

If anybody has the text of law regarding the possibiity not pay more than 5 years arrears, would be very much appreciated.

Thanks a lot

Have a nice sunday

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Thanks for your answer but it doesn't help..

I am trying to verify if they are entitled to get what they claim.

Have a nice afternoon..

I assume that the said condo is a repossesion and the previous residents were in service charge arrears.

The norm when someone sells is that exchange of contracts cannot go ahead until the serivice charges are up to date. But in the cases of a repossession, if the ex-residents cannot be traced or do not have the funds to pay off the arrears, than the management company can insist that the full arrears are paid by the new mug who purchases the leasehold, because the new owner automatically takes on any debts owed on the property. The interest accrued on the debt is usually estimated according to the present bank rates. That`s the policy that could be described as fine law.

Why did you not check on this prior to purchase?

Edited by Beetlejuice
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Hello

In ask the lawyer they speak about interest rate and don't tell how many years of expenses they can charge you for...

A lot of people unfortunately don't know that they have to pay the arrears in case of auction.. they come to know when it is too late..

So, again, does anybody have the law text applying to the subject.. mainly is there or not a 5 years limit to the maintenance arrears that can be charged to new owner ??

Have a good week

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The Condo Act would be a good place to start, there's a copy here http://www.thaivisa.com/forum/topic/320264-the-condominium-act-and-definition-of-a-condominium-in-thailand/

You may also consider looking in the local bylaws of the building you're considering, whilst it won't trump the act it may actually define the interest rate.

Let's try this in Real Estate.

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Hello

I read the condominium act but didn't find anything about this supposed limit to 5 years debt..

Thanks for putting this in real estate forum.. I had tried to do it at the beginning but couldn't manage to find it

Have a nice day

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The location of the Real Estate forum is historical and apparently we are stuck with it due to search engine optimisation :(

If there's no reference in the Condo. Act you're unlikely to find a law which directly references unpaid fees, more likely something to do with debt.

I believe debts do expire but I've no references to quote.

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Hello

There could be a "general" law stating debts are not possible to recover over 5 years.. The problem here is to find a lawyer who knows what he is talking about and states.. So 2 lawyers, one says there is no limit, the other one that there is a 5 years limit.. Went back to the first one and he says "they can ask for more but can be discussed if you have to pay"..

When asked to give the lax reference none of them is able to provide the basis of what he says..whistling.gifsad.png

In France normal "prescription" is 30 years but some special prescriptions in 5 years..for example in case of tenants, you cannot claim for debts over 5 years if you are the owner and the tenant can't ask you any refund after 5 years.. As thai law is qutie similar to french law, maybe could be this 5 years limit

Good day

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Over 1 million.. Lawyers are totally useless here, sorry to say this but my experience with them is very bad..

I prefer to try to negociate myself but having the law reference is necessary.. By the way even the lawyers are unable to tell you which law applies and what the law says..

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Hello

When you purchase from owner it is simple, as the land office wants the debt free letter from the manager.. On auction, you purchase and nobody tells you that you are responsible for the debts .. So, you get the surprise later..

Have a nice day..

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Over 1 million.. Lawyers are totally useless here, sorry to say this but my experience with them is very bad..

I prefer to try to negociate myself but having the law reference is necessary.. By the way even the lawyers are unable to tell you which law applies and what the law says..

How many lawyers have you actually hired?

Our attorney seems competent and has saved us a lot of time, effort and money any number of times over the years. You get what you pay for.

You knew it all when you bought the place, and you know it all now, even as you go on moaning about how you've been beaten.

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Hello

When you purchase from owner it is simple, as the land office wants the debt free letter from the manager.. On auction, you purchase and nobody tells you that you are responsible for the debts .. So, you get the surprise later..

Have a nice day..

One would assume a buyer at an action would be aware of what they would be responsible for.

You must be an American.

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I believe the lawyer came up with 5 years because this is the statue of limitations in Thailand for personal debt.

On this basis I believe the JPM could only sue for 5 years of unpaid common area fees from the previous owner... (However the JPM could go down the route of forcing the property to be sold to recover sums owed, so this point becomes mute with respect to existing tenants).

Your case, though, is both interesting and different.

Do you owe the fees for a previous tenant?

Can debt be re-assigned in this way?

Is the JPM's claim with you, or does it remain with the previous owner?

I don't know, and I believe it will take a decent lawyer to provide an answer. Please keep us updated as I would really like to know the outcome, as would others who find themselves in the same situation.

What I would say is that compromise is probably the best way forward. Will the JPM accept a reduced amount? Can you talk to the Committee about it?

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Yes, best thing is to find a compromise.. Apparently the claim is only againt the buyer who is responsible for debts (and also easier for them as the previous owner maybe disappeared or has no money)..

What you say is very important.. If they cannot claim from somebody for over 5 years, I think they cannot claim for more from the buyer, as in fact their action is exerced against the buyer BUT for the previous buyer's debt, so they should not get from the buyer more than they should get from the first one..

Do you per chance have the law precising that only 5 years debt can be claimed ??

Will keep you posted.. I am not the only one in this case.. One friend of mine has the same issue.. they asked him 9 years debt, he compromised on half of it recently.

Have a nice day

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I

I don't know, and I believe it will take a decent lawyer to provide an answer.

Not possible. None of the lawyers in Thailand know the law.

The best and only route is to seek free advice on English speaking Internet websites.

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I

I don't know, and I believe it will take a decent lawyer to provide an answer.

Not possible. None of the lawyers in Thailand know the law.

The best and only route is to seek free advice on English speaking Internet websites.

How strange. A few posts ago you said:

Our attorney seems competent and has saved us a lot of time, effort and money any number of times over the years. You get what you pay for.

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Hello

When you purchase from owner it is simple, as the land office wants the debt free letter from the manager.. On auction, you purchase and nobody tells you that you are responsible for the debts .. So, you get the surprise later..

Have a nice day..

One would assume a buyer at an action would be aware of what they would be responsible for.

You must be an American.

That comment was uncalled for. You must be an a$$ hole.

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Pls save your time and keep your stupid comments for yourself.. I am not moaning about anything, just trying to sort the matter the best way I can..

I have already explained to you in detail.

In the UK regarding debts incurred on properties is 12 years before it expires. My guess is Thailand is the same, as many Thai laws are loosely based on British law.

If you require more knowledge of Thai civil law, than one option is to visit a book shop where there are many books on Thai law, both in English and Thai. I have several here myself.

Every law regarding condos in Thailand is all here:

http://www.samuiforsale.com/law-texts/new-thailand-condominium-act-2008.html

And explained in simple terms that even you may understand. I suggest you peruse the information very carefully and you will probably find your answers within the ACTs.

Edited by Beetlejuice
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I

I don't know, and I believe it will take a decent lawyer to provide an answer.

Not possible. None of the lawyers in Thailand know the law.

The best and only route is to seek free advice on English speaking Internet websites.

How strange. A few posts ago you said:

Our attorney seems competent and has saved us a lot of time, effort and money any number of times over the years. You get what you pay for.

I was being sarcastic.

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Hello

When you purchase from owner it is simple, as the land office wants the debt free letter from the manager.. On auction, you purchase and nobody tells you that you are responsible for the debts .. So, you get the surprise later..

Have a nice day..

One would assume a buyer at an action would be aware of what they would be responsible for.

You must be an American.

That comment was uncalled for. You must be an <deleted> hole.

Must be what, a fellow American?

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One should have find out the quantum of debt in arrears before bidding in an auction.

You need to clear this arrears before the jurisdic manager would issue a letter of clearance for title transfer.

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I

I don't know, and I believe it will take a decent lawyer to provide an answer.

Not possible. None of the lawyers in Thailand know the law.

The best and only route is to seek free advice on English speaking Internet websites.

How strange. A few posts ago you said:

Our attorney seems competent and has saved us a lot of time, effort and money any number of times over the years. You get what you pay for.

I was being sarcastic.

So are you saying that on any number of times you paid an attorney that didn't save you time, effort and money and that you didn't get what you paid for?

You either repeatedly hired a good attorney who saved you money, in which case it's strange that you state that none of the lawyers in Thailand know the law, or you repeatedly hired an attorney who didn't save you money.

Which is it?

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I

I don't know, and I believe it will take a decent lawyer to provide an answer.

Not possible. None of the lawyers in Thailand know the law.

The best and only route is to seek free advice on English speaking Internet websites.

How strange. A few posts ago you said:

Our attorney seems competent and has saved us a lot of time, effort and money any number of times over the years. You get what you pay for.

I was being sarcastic.

So are you saying that on any number of times you paid an attorney that didn't save you time, effort and money and that you didn't get what you paid for?

You either repeatedly hired a good attorney who saved you money, in which case it's strange that you state that none of the lawyers in Thailand know the law, or you repeatedly hired an attorney who didn't save you money.

Which is it?

I was being sarcastic when I said that none of the lawyers in Thailand know the law.

Lawyers I have used have always been well worth the money.

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This forum is great when you have a problem - you can tap into a wealth of information and past experience of thousands of members- from some bizarre experiences.

However to buy a condo at auction with outstanding debts does seem a bit foolish- caveat emptor.

Then to expect members to sort out your problems- and berate them for a few critical posts.

Sort out your own problems- pay the money.

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