Setting up home in Thailand

[Steve-W]

Hi all we are buying a condo off plan in Pattaya and would like to know if anyone has done this and what the legal procedure is.

At the moment we have a solicitor on board we have already paid the reservation fees and payments up to May, and can anyone vouch for a company called Eastern Seaboard Property Management Co Ltd based in Pattaya w w w esp-intl . com We just have this thing in the back of our heads that we might get ripped off or does this always happen to all people buying abroad?

Any info would be more than welcome

[oddball]

Originally Posted by Steve-W

Hi all we are buying a condo off plan in Pattaya and would like to know if anyone has done this and what the legal procedure is.

At the moment we have a solicitor on board we have already paid the reservation fees and payments up to May, and can anyone vouch for a company called Eastern Seaboard Property Management Co Ltd based in Pattaya w w w esp-intl . com We just have this thing in the back of our heads that we might get ripped off or does this always happen to all people buying abroad?

Any info would be more than welcome

You have started a little late to be checking , but i guess it is better late than never , from what i have gathered over the years , condos are a reasonably safe bet , but there are certain things you need to be aware of . We have a recent poster who seems quite knowledgable in this field so please be patient , i have a feeling he will give you far better advise than i can . Colin .

[Roger Dennerley]

Oddball seems to have Thailand weighed up fairly well. He has obviously been round the traps a few times himself by the sounds of it. Here we go:

Buying a property ‘off the plan’ can be a great way to get a great deal on a condo in Thailand. If I was to give advice to any ‘newby’ it would be to stick with developers who have a good track record. They are at least a dozen large developers here in Thailand that have had a good to excellent track record over the past 10 years. A few that come to mind would be Supali / Areeya.

But there have also been many, many scams over the past 20 years here with people getting burnt either (1) COMPLETELY (IE: paid 70% up front and lost it all when 2 years later there is still no construction started – Then a protracted class action court case with the absconders now overseas – Purchasers have no choice but to write their money off in the end) OR burnt (2) SEVERELY (IE: the property got constructed only half way and I have moved in but it took 4 years instead of the promised 1 year, and now the building is only 40% occupied and current condo value is about 30% of what I paid, the courts said they cannot sue them because they no longer exist, you better just take what you can and be happy. OR Only (3) WOUNDED SLIGHTLY ( IE: The furniture and large electrical appliances promised on signing did not make it to the inside of the condo).

The Thai government just issued a new law this year to help protect purchasers from the last type of complaint which was, not rampant but ‘fairly’ common. As we can see, there has been a definite trend occurring here in Thailand by seeing dozens (could be hundreds) of the above type scenarios playing out. IE: If you let them stiff you – There is a better than even chance that they probably will. Not like in expat countries where the legal system steps in and comes down more heavily on this kind of crime. Yes Thailand Legal system & Police ‘try’ but have a much less successful track record, shall we say.

I have never heard of the company you mention. Nor can I get on their web site. Yes you should be concerned. Are you in a position to physically front the developers management?

One interesting aspect to this type of concern in Thailand, is that there is usually a Thai language chat forum that develops about the scam, which is normally very accurate. If I was a betting man, I would put good odds on the chance that if you grabbed a ‘Thai friend’ with internet skills and asked them to punch in (in Thai ) the developers name, and find the story, much would be revealed. This will most likely not work in English however. My recommendation for your quickest answer to your concerns.

GOOG LUCK.

[oddball]

Carefully check out ALL that Roger says,Thailand is not a country to fool around in,believe nothing you hear and half of what you see is a good perspective . Colin .

[Ted88888]

I own an apartment/condo on Phuket that I purchased "off plan" as does a friend, who bought into a different project. Both have been built and are satisfactorily completed.

As mentioned above there is always the possibility that the project will never be started, never be finished, OR be very poorly managed (almost as bad). And, they almost ALWAYS finish later than the projected dates - usually a good 6-12 months behind schedule.

I took the risk - knowing the risks. Property development here often begins without being "fully funded", meaning that the developer has no money to build the project - he is waiting for you and others to pay for their apartments - and with that money he will build the project.

A nice house of cards it is . . . But, as mentioned above also - it is a good opportunity to get a significant reduction in price as the developer usually really is interested in getting the project up and running. BUT - this does not always happen. Enter into such projects with your eyes wide open.

Many people say never invest more than you can afford to lose and I think that is probably the best advice. Once you are in (as you are) - just cross your fingers, keep an eye on the project and hope for the best.

Know also - that things like sinking funds and monthly fees are typically not well thought out until the project is near completion or completed. Keep some money back for inevitable surprises. Also - don't forget your property/lease registration fees when you take possession - 7% of the contract value for condos and (if I recall correctly) 1.5% of the contract value for long-term leases.

My advice to people interested in buying here (or anywhere really) is to NOT buy until you have LIVED here for a minimum of three years and have heard all the horror stories - and have a real sense of who is legitimate and who is not - and of how areas change and in what direction they are changing. The reason I suggest three years is that Thailand is full of bar-stool experts who are quite full of BS and you will hear more than your fair share of jive and it will take a bit of time to sort our the chicken salad from the chicken sh*it. It is not unusual to meet "multi-millionaires" who live in shacks and ride crap motorbikes . . . (up to you to sort that out ).

Purchasing while living overseas and not really knowing the players, the area and trends - is risky business indeed. And - not just in Thailand - there are some incredible horror stories from Spain (in the EU mind you!), Mexico and a multitude of other places as well.

[synthia]

Welcome to the forum, Steve! And pay close attention to the previous posts. These guys know what they are talking about.

[Ted88888]

BTW, know that lawyers here - are the just same as the evil snakes in your home country. Their goal is to separate you from your money and to drag any legal process out as long as possible to maximize their fees.

Only my opinion, but once something goes to the lawyers - you are all but toast. Probably better (BUT I AM NO EXPERT) - to just let things sort themselves out.

Perhaps I am too cynical - but I've not yet met a lawyer that I really liked or trusted - in any country. Their job/goal is to complicate things as much as possible and to charge you handsomely for doing so.

[Steve-W]

Thank you all for your replies, these comments are well and truly taken onboard.
As said before the company Eastern Seaboard Properties International Co Ltd aka Beach Properties Co Ltd at Thappraya Road, Moo12, Nongprue, Banglamung, Chonburi, 20260, claim to be "duly appointed as the sole authorized sales agent and conceptual consultant by the Developer T.W. Thepprasit Co Ltd, 300/8, Moo10, South Pattaya Road, Nongprue, Banglamung, Chonburi, 20260 to sell the Platinum Suites units at T.W. Jomtien Beach Condominium. Im sorry I cant put a website contact because of the few posts I have made, www beachpropertiesthailand com/ please note dots have been left out so I can post.

The agent has been quite cooperative and when we told him that we were not sending anymore payments until the lawyers have the appropriate paperwork etc.. he was more than accommodating , we just want to be rest assured that all is well and hopefully fingers crossed that everything will go well.

If there is anything more members can add tips etc.. we would be more than grateful.

Regards

Steve and Debbie

[skycop51]

do not think that is a wise location.

[synthia]

Why not? Some supporting information would help.