How easy to get money back from failed project ?

[plus7]

Hi,

I invested in condo in construction state but it seems that project is obviously failing.

There is a chance to exchange invested money in already built condo in another project of same company. However I think those condos are bit overpriced. They are already offered 10% on the market lower than company offers.

Do you think it is better to wait for the end term of the contract and get money back or exchange on ready apartment and then sell ?

 

 

[trogers]

How much down payment have you paid?

[plus7]

Trogers,

Thank you for attention!

I paid 40%

[trogers]

7 hours ago, plus7 said:

Trogers,

Thank you for attention!

I paid 40%

Then it would be better to secure a completed unit from the same developer.

 

It's a choice between losing 10% or all 40%.

[al007]

I agree with what has been said so far

 

However try and stay strong, insist on the discount to what they are changing hands at

 

Is the developer in default on the current site and running behind

 

Do you have a lawyer, what does he say, being thailand probably useless

 

Tell the developer point blank sort you out and you will be quiet, otherwise any tactics are fair and you will encourage prospective investors to go else where

 

Do your best to talk face to face and do it quickly

 

Definition of preferential creditor, he who know first someone is going bust

 

 

[williamgeorgeallen]

i just walked away on my 30% deposit.  no point trying to upgrade to a completed condo in another project as they are asking about double what the actually sell for on the open market. there is a massive oversupply coming. cut your losses.

[KIWIBATCH]

You need your head read to have even invested in a "work in progress" condo...sorry to be so blunt....absolutely no slur on you personally.... not at all.........But this is Thailand...repeat T h a i l a n d......never buy/pay for anything  here unless it is placed in your hand following the purchase......never pay for a condo apartment unless the keys to the room and the ownership papers  are placed in your hand immediately following you paying for it......

 

[phantomfiddler]

Kiwibatch knows the way it is, especially now. There are so many scammers around Pattaya right now that only a completed unit THAT HAS A CHANOTE for the unit would be acceptable !

[whatawonderfulday]

This is a joke right ? you expect to get money back from a Thai developer ?

[colinneil]

plus7 some good advice here, sorry for you but cut your losses and get out.

Thai developers are like lawyers here, crooks out to con people.

It is a sad fact but paying for anything here up front is a crazy thing to do.

[little mary sunshine]

About as easy as trying to feed

hay to a dead horse!!!

[scorecard]

4 hours ago, al007 said:

I agree with what has been said so far

 

However try and stay strong, insist on the discount to what they are changing hands at

 

Is the developer in default on the current site and running behind

 

Do you have a lawyer, what does he say, being thailand probably useless

 

Tell the developer point blank sort you out and you will be quiet, otherwise any tactics are fair and you will encourage prospective investors to go else where

 

Do your best to talk face to face and do it quickly

 

Definition of preferential creditor, he who know first someone is going bust

 

 

 

'Preferential creditor' is a legal term, usually related to bankruptcy or insolvency, who is by law a preferential creditor is fixed by law, and relates to the type of unpaid debt, not by individual names.

 

Where bankruptcy or insolvency has happened (or before it happens) the original developer cannot nominate individual people just by their name as 'Preferential creditors'.

 

Example: In pretty much all cases, by law, first priority as 'Preferential creditors' are the people who (as direct employees of the developer), have not been paid due wages, allowances, etc. 

 

If the developer has been personally declared bankrupt by a court or if it's a company and it's been declared insolvent by a court it's practice in most countries and in Thailand for the court to appoint an uninvolved person or company (often a big accounting) as the manager / liquidator of the matter. The liquidator must follow specific rules about prioity to be paid from any funds available from sale of the assets.  The original developer has no say whatever in this activity.

 

If it's found that just before bankruptcy or insolvency the developer has paid 'friends' etc., in lieu of outstanding wages etc., the liquidator is obliged to try to recover these payments back into the general funds, to be disbursed according to the priorities set by law. 

[scorecard]

11 minutes ago, colinneil said:

plus7 some good advice here, sorry for you but cut your losses and get out.

Thai developers are like lawyers here, crooks out to con people.

It is a sad fact but paying for anything here up front is a crazy thing to do.

 

Many foreign developers just as bad.

[scorecard]

1 hour ago, KIWIBATCH said:

You need your head read to have even invested in a "work in progress" condo...sorry to be so blunt....absolutely no slur on you personally.... not at all.........But this is Thailand...repeat T h a i l a n d......never buy/pay for anything  here unless it is placed in your hand following the purchase......never pay for a condo apartment unless the keys to the room and the ownership papers  are placed in your hand immediately following you paying for it......

 

 

True, perhaps even better is to look at condos completed say 2 to 3 years ago and check what's happening with maintenance, is there an active owners committee, who is controlling the maintenance money, is there a sinking fund with lots of security on who can access the money, etc.

 

If you find an interesting building spend some time to quietly approach individual owners and ask a list of prepared questions about the above, plus noise, etc. 

[newnative]

21 minutes ago, scorecard said:

 

Many foreign developers just as bad.

And, many are worse.  If you're going to buy off-plan, stick with well-known, well-financed, large Bangkok developers with good track records like Sansiri, Lumpini, Supalai, Trust, SC Asset, etc. 

[lucjoker]

imagine you just bought the condo of your love ,

and under ( or left, right ,on top) you some <deleted> moves in and makes load music all night long......

or a big family with screaming children moves in next of you.......

You must realize you can do nothing to stop this .......you can try but.....it will not stop.

A stressful time awaits you......

 

If you rented .....you just move away.......no stress .....

 

[catman20]

1 hour ago, whatawonderfulday said:

This is a joke right ? you expect to get money back from a Thai developer ?

or a farang developer 

[scorecard]

2 hours ago, lucjoker said:

imagine you just bought the condo of your love ,

and under ( or left, right ,on top) you some <deleted> moves in and makes load music all night long......

or a big family with screaming children moves in next of you.......

You must realize you can do nothing to stop this .......you can try but.....it will not stop.

A stressful time awaits you......

 

If you rented .....you just move away.......no stress .....

 

 

Add... or a loud mouth farang drama queen with a loud mouth Thai ladyboy drama queen partner who have fights and screaming matches a couple of times a week often at 3 or 4 am, plates etc/. being thrown and more.

 

And ladyboy found some method to lock the lifts so a few times (until the manager called the police) he went downstairs to leave the building but immobilized the lifts to 'punish' his partner, but of course punishing the whole building.

 

In this case the building had an active owners committee who worked out a way to demand the farang sell the condo, and it did happen. Also in the picture farang had not paid the monthly service charges for about a year and was arguing that they could not force him to pay. 'I paid cash for the condo and the transfer fees, that's it, i'm not paying another cent'.

[Enoon]

 

 

 

 

 

 

[janclaes47]

22 hours ago, plus7 said:

There is a chance to exchange invested money in already built condo in another project of same company. However I think those condos are bit overpriced. They are already offered 10% on the market lower than company offers.

Exchanging for a condo already built is the best option of the two, but since the developer has an failed project and going from your comments about the already built condo. I would double check on the chanote availability of that project.

[al007]

I feel for you sir

 

however we all move forwards

 

there is a very true old saying  First Loss best loss, ie cut your losses it may be hard but maybe the best decision

 

Maybe all is not lost, there is a consumers association that might help

 

please feel free to call me , send a pm and you will have my tel no

 

I believe uou have taken a tough decision and maybe the right one

 

God bless and good luck

 

I am but a rather simple retired Chartered Accountant

[csabo]

Why do some guys do this to themselves?

[csabo]

4 hours ago, scorecard said:

 

Many foreign developers just as bad.

Name one foreign developer in Thailand who is just as bad.

[csabo]

1 hour ago, Enoon said:

 

 

 

 

 

 

Another rich dumb fish.

[janclaes47]

3 minutes ago, csabo said:

Name one foreign developer in Thailand who is just as bad.

 

 

Shall I go on?

[csabo]

3 minutes ago, janclaes47 said:

 

 

Shall I go on?

Just provide the names as requested 

[janclaes47]

Just now, csabo said:

Just provide the names as requested 

 

You know very well which condo's I pictured and who the developers are.

 

Thanks for the bait, but I don't step in it.

[scorecard]

20 minutes ago, csabo said:

Name one foreign developer in Thailand who is just as bad.

 

Perhaps your not aware of the several cases of highly unscrupulous foreign developers from the UK having fingers in many projects and taking hundreds of paying customers on a merry dance with no resolution and their thuggish harassment of their paying clients in Pattaya, perhaps 2 to 4 years back. I can't recall the names involved, all well documented by Andrew Drummond.

 

I have personal experience with two nasty characters who developed a big housing village in Pattaya, one from Germany the other from England who insisted their development was fully registered and it wasn't, the land split up into housing lots was a total mess and lots more serious  problems and even to today some buyers have never received a chanut and the developers have made it plain they don't care.  

[TallGuyJohninBKK]

34 minutes ago, janclaes47 said:

 

 

 

Shall I go on?

 

They even have/had a Facebook page:

 

Quote

 

Suan Sawan Condo

March 27, 2014 ·

We would like to present that We start work of construction again.

A. Building Now 100% Finish except the Transfer Document
B. Building Will Finish on June 2014
C. Building and another building will be ready in 2014.

 

 

https://www.facebook.com/suansawan.condo?ref=br_rs

 

http://www.towncountryproperty.com/project/Suan-Sawan-Condo

[TallGuyJohninBKK]

I don't know what the problem is here with the buy off plan market:

 

--Is it that the banks won't lend enough money to the developers for their projects, so they have to rely on the buyers' funds to actually complete construction, and then don't if they don't get enough buyers?

 

or

 

--the banks lend enough for the projects, but the developers go over budget and/or simply abscond with the buyers' deposits without completing the projects?