getting a refund from an off plan condo build

[harrry]

One problem is that you say it is in your son's name. Thai children can own property but that property can not be sold until majority.

Property owned by a Thai child can be sold, but to do this the Land Office requires an order from the Family Court.

The Family Court, in turn, need to be convinced that the sale is in the child's best interests.

Not an easy task, but possible.

I have been led to believe that they are very reluctant to allow a sale. Somone I know wanted to sell land put in a childs name to ensure education to allow the child to go to University....they would not allow it. He had to defer his eduction till he was over 20 and could sell it.

[blackcab]

One problem is that you say it is in your son's name. Thai children can own property but that property can not be sold until majority.

Property owned by a Thai child can be sold, but to do this the Land Office requires an order from the Family Court.

The Family Court, in turn, need to be convinced that the sale is in the child's best interests.

Not an easy task, but possible.

I have been led to believe that they are very reluctant to allow a sale. Somone I know wanted to sell land put in a childs name to ensure education to allow the child to go to University....they would not allow it. He had to defer his eduction till he was over 20 and could sell it.

It's not so much that the Family Court is reluctant to allow a sale, but more that they absolutely put the child's interests first (and rightly so).

Combined with the inherent Thai love of land and use of land as a store of wealth I do agree that it is not easy to gain approval for sale - but then again it shouldn't be easy.

Selling a property to pay for university fees can is done on a case by case basis. What course? How will this financially benefit the child in preference to remaining the owner of the property? Have all other options been exhausted (scholarships and bursaries), etc?

It's an individual decision of the Judge, and their decisions can vary.

[williamgeorgeallen]

One problem is that you say it is in your son's name. Thai children can own property but that property can not be sold until majority.

Property owned by a Thai child can be sold, but to do this the Land Office requires an order from the Family Court.

The Family Court, in turn, need to be convinced that the sale is in the child's best interests.

Not an easy task, but possible.

I have been led to believe that they are very reluctant to allow a sale. Somone I know wanted to sell land put in a childs name to ensure education to allow the child to go to University....they would not allow it. He had to defer his eduction till he was over 20 and could sell it.

It's not so much that the Family Court is reluctant to allow a sale, but more that they absolutely put the child's interests first (and rightly so).

Combined with the inherent Thai love of land and use of land as a store of wealth I do agree that it is not easy to gain approval for sale - but then again it shouldn't be easy.

Selling a property to pay for university fees can is done on a case by case basis. What course? How will this financially benefit the child in preference to remaining the owner of the property? Have all other options been exhausted (scholarships and bursaries), etc?

It's an individual decision of the Judge, and their decisions can vary.

getting a bit off topic. the contract for the condo is in my company name (was only going to put it in my sons name if i sold my business) still interested to hear from anyone who as succeeded or failed at getting a refund for an off plan purchase that was not finished on time.

[trogers]

One problem is that you say it is in your son's name. Thai children can own property but that property can not be sold until majority.

Property owned by a Thai child can be sold, but to do this the Land Office requires an order from the Family Court.

The Family Court, in turn, need to be convinced that the sale is in the child's best interests.

Not an easy task, but possible.

I have been led to believe that they are very reluctant to allow a sale. Somone I know wanted to sell land put in a childs name to ensure education to allow the child to go to University....they would not allow it. He had to defer his eduction till he was over 20 and could sell it.

It's not so much that the Family Court is reluctant to allow a sale, but more that they absolutely put the child's interests first (and rightly so).

Combined with the inherent Thai love of land and use of land as a store of wealth I do agree that it is not easy to gain approval for sale - but then again it shouldn't be easy.

Selling a property to pay for university fees can is done on a case by case basis. What course? How will this financially benefit the child in preference to remaining the owner of the property? Have all other options been exhausted (scholarships and bursaries), etc?

It's an individual decision of the Judge, and their decisions can vary.

getting a bit off topic. the contract for the condo is in my company name (was only going to put it in my sons name if i sold my business) still interested to hear from anyone who as succeeded or failed at getting a refund for an off plan purchase that was not finished on time.

Would be like squeezing blood out of a stone. First, why the huge delay in completing construction?

Most likely reason is illiquidity on the part of the developer who depended on a quick and high sales volume that did not happen.

If there is no money to get construction going, where would there be funds to refund buyers, and getting worse sales figures?

Refunds would only be successful from well capitalised developers.

[Berty100]

getting a bit off topic. the contract for the condo is in my company name (was only going to put it in my sons name if i sold my business) still interested to hear from anyone who as succeeded or failed at getting a refund for an off plan purchase that was not finished on time.

You could ask the buyers from Suan Sawarn, The park, Waterfront or Ocean 1 just to name a few. All of them are between 1 and 8 years overdue, and from a few I know buyers, and none of them has seen a single Baht refunded.

[williamgeorgeallen]

looks like the condo development will be finished early next year, not sure how much longer the title will take. they are fitting the kitchens now. will still go for a refund as i am not going to get much use from the condo and it is just tying up money i could drop on my mortgage back home. it is one of the biggest developers who are still launching projects. wonder if anyone tried to get a refund or if they are all just waiting and hoping.

[blackcab]

Another option is to wait until the units are almost complete and then try and sell the contract, even at a bit if a loss.

[williamgeorgeallen]

Another option is to wait until the units are almost complete and then try and sell the contract, even at a bit if a loss.

i was lucky to sell one already at a 20% loss, i had put down an 80% deposit and got a fair bit of my money back. other units are going for about 30% less than what i paid off plan. i suspect prices will drop again closer to completion as speculators have to dump their investments rather than pay the last installment and all the fees and charges. the very best i can do is a refund, second best is to ditch my 30% deposit. not alot of money to loose but would still rather get it back if possible.

[lkn]

the sales company is offering a free tv and fridge worth about 15000thb as compensation for them taking so long to build

From the completion date in your contract, you should be entitled to daily interests of 0.01% on the amount paid (capped at 10%) or to cancel the deal (with a full refund + interests). If you paid 600,000 baht and it is two years delayed, your compensation claim is well above the free fridge and TV.

I bought off plan myself and it was delayed by six months or so, and they did pay me compensation, so there are certainly developers who respect the conditions outlined in the sales contract (they should all be modelled after some standard sales contract which gives the buyer these interest/refund options, and companies must at a minimum match that).

I was never interested in a refund, so I did not pursue that, but I am sure any respectable developer would give it. Though I am also aware of unrespectable developers, but I think they are all in Pattaya, and the worst are run by foreigners.

Without knowing your developer, it’s hard to predict your chance of success, but it’s definitely worth sending them a formal request for a refund, based on the terms in your sales contract.

[dksharron]

I bought a house being built by Eakmongkol 11 years ago. After three years, one full year late, it was not even close to being completed, and it was not being worked on. I got a 100% refund of about 800,000 baht from a 2.3M baht house price.

I have no idea how much contact you have had with them already, and the situation with deposits and properties in process is much different today than 8 years ago.

My suggestion:

1. See them one time and ask for a refund, as the property is well behind schedule. Demand an answer. Then put the request in writing via registered mail, return receipt requested.... they won't pay.

2. Then have a lawyer write a letter citing the line items in the contract where you are promised a refund if the property is behind schedule more than a certain time period. Wait for a response, normally a two week time period. When no response is forthcoming....

3. Sue them. I think you can sue for a good deal more than the deposits. Your lawyer will know a lot more about it than I do. As long as there is a clause with a completion date, then you will win.

The lawyer will cost about 30,000 - 40,000 baht.

After you win, then your lawyer will need to get a lien on their bank account or their property. I would guess that you have made deposits to their bank account, so you may already know it. Plus, on their contracts, or other paperwork, they more than likely have listed their account numbers to receive payments. It is likely that their property already has a mortgage on it, and many developments do, but your lawyer can see that your name is included so that the property cannot be transferred until you have been repaid. There will be one or more land deeds for the property, but the individual condo unit deeds are not created until the end.

If you choose to wait until the unit is completed, then you will still have to sell the condo later, and that will be a lot of work.

Good luck.

Do not listen to the naysayers about anything. Just go through it all, slowly, surely and correctly, and you will do fine.

[williamgeorgeallen]

I bought a house being built by Eakmongkol 11 years ago. After three years, one full year late, it was not even close to being completed, and it was not being worked on. I got a 100% refund of about 800,000 baht from a 2.3M baht house price.

I have no idea how much contact you have had with them already, and the situation with deposits and properties in process is much different today than 8 years ago.

My suggestion:

1. See them one time and ask for a refund, as the property is well behind schedule. Demand an answer. Then put the request in writing via registered mail, return receipt requested.... they won't pay.

2. Then have a lawyer write a letter citing the line items in the contract where you are promised a refund if the property is behind schedule more than a certain time period. Wait for a response, normally a two week time period. When no response is forthcoming....

3. Sue them. I think you can sue for a good deal more than the deposits. Your lawyer will know a lot more about it than I do. As long as there is a clause with a completion date, then you will win.

The lawyer will cost about 30,000 - 40,000 baht.

After you win, then your lawyer will need to get a lien on their bank account or their property. I would guess that you have made deposits to their bank account, so you may already know it. Plus, on their contracts, or other paperwork, they more than likely have listed their account numbers to receive payments. It is likely that their property already has a mortgage on it, and many developments do, but your lawyer can see that your name is included so that the property cannot be transferred until you have been repaid. There will be one or more land deeds for the property, but the individual condo unit deeds are not created until the end.

If you choose to wait until the unit is completed, then you will still have to sell the condo later, and that will be a lot of work.

Good luck.

Do not listen to the naysayers about anything. Just go through it all, slowly, surely and correctly, and you will do fine.

great thanks. condo completion will be 2 years behind schedule at the end of this year. i am off to nz mid december for 4 months so i am going to leave my lawyer some instructions to request a refund in writing. i have not had any contact with the developer other than doing the paperwork to sell the other condo i had in the same project. i am going to offer my lawyer 25% of any money they can get me back which hopefully will give her a bit of an incentive.

[williamgeorgeallen]

the sales company is offering a free tv and fridge worth about 15000thb as compensation for them taking so long to build

From the completion date in your contract, you should be entitled to daily interests of 0.01% on the amount paid (capped at 10%) or to cancel the deal (with a full refund + interests). If you paid 600,000 baht and it is two years delayed, your compensation claim is well above the free fridge and TV.

I bought off plan myself and it was delayed by six months or so, and they did pay me compensation, so there are certainly developers who respect the conditions outlined in the sales contract (they should all be modelled after some standard sales contract which gives the buyer these interest/refund options, and companies must at a minimum match that).

I was never interested in a refund, so I did not pursue that, but I am sure any respectable developer would give it. Though I am also aware of unrespectable developers, but I think they are all in Pattaya, and the worst are run by foreigners.

Without knowing your developer, it’s hard to predict your chance of success, but it’s definitely worth sending them a formal request for a refund, based on the terms in your sales contract

i will not be jumping at the free TV and fridge but i think many will forfeiting compensation and/or refunds. only 1000thb to get the lawyer to request a refund so that will be step one in jan next year. surprised there are not more people with some experience on this topic.

[Andrew65]

I've just started the process with the letter from a lawyer to the developer, now into the second year overdue.

 

Will keep you posted on progress, or lack of it!

[Delight]

There was a successful outcome for a purchaser(who suffered a 2 year delay) against the  same developer that built my condo

 

The judge ruled that the developer had to pay the purchaser interest on all monies paid to date -at 7.5 %

He also ruled that the developer had to provide free accomodation -The developer had a row of unsold town houses. The purchaser lived there -rent free( I also think power and water cost free)

That all ended when the purchasers 2 condos were supplied.