Jomtien project goes bust

[Gaybutton]

They are held in escrow until move in ready.

Does it work that way in Thailand? I've never even heard the word 'escrow' in Thailand.

In any case, no matter how it's done in Thailand, there have been too many reports of developers making off with the money before construction ever starts or when it's partially completed. I know one condo in Jomtien where construction of what apparently was going to be another condo is right behind it. Construction was started and abandoned, leaving only part of the framework. It's been sitting there like that for at least four years. I wouldn't want to be someone who invested in that.

For me, Rule 1 would be buy a condo only in an established existing building, built by a reputable company, and talking with other tenants to make sure they're pleased with the building, maintenance, condo fees, etc. Any red lights and I'd be looking elsewhere.

Rule 2 would be don't break Rule 1.

[firecat69]

Has nothing to do with the developer, at least in the USA. All deposits by law are put in an escrow account separate from the developer and he has absolutely no access. Naturally the willingness of people to put down a deposit before or during construction gives the developer's lending bank a solid feeling about the development being successful, but they have no access to the deposits either as they are put in a Trust account.

[fountainhall]

I was perhaps wrong to state "all over the world". But in some countries, especially in Asia, it is common practice. Hong Kong would not have got built had it not been for developers getting their hands on most of the cash up front. Now I do not know exactly how they do that, but I did spend about a year as part of a team arranged by one of the biggest developers concerning a major project there and was told that first hand by a top executive. And here in Thailand, yes, you pay a large deposit to the developer often before - sometimes long before - ground is broken with most of the purchase price paid before it is complete. That I do know from a friend who purchased a very expensive large apartment in the business district some years ago.

[Undaunted]

And here in Thailand, yes, you pay a large deposit to the developer often before - sometimes long before - ground is broken with most of the purchase price paid before it is complete. That I do know from a friend who purchased a very expensive large apartment in the business district some years ago.

My experience buying condo in Pattaya was guite different, I paid a small amount each month to the developer and the large remaining balance was paid upon coompletion.

[fountainhall]

Probably different developers, different policies. All I can say is that the bulk of purchase price of the large condo my friend bought in Bangkok's business district was paid prior to completion and handing over.

[Gaybutton]

Has nothing to do with the developer

It doesn't matter to me who it has to do with. If a condo isn't already built and occupied, I'm not buying. As I said, too many stories about people investing their money only to have it disappear - and no condo ever built.

[firecat69]

Although I never bought anything in Thailand I came close a number of times . In every instance when the project was completed the units were still at the same price or even less . Which for me would mean waiting like GB. The only downside is that you may not have as big a selection for floor and view. Granted that was a small sample of 3 projects. In USA the opposite almost always happens and the units appreciate while you wait for final occupancy.

[Gaybutton]

Buyers of Centara Residence condo file lawsuit

by King-Oua Laohong

8 Mar 2017

Miss Thailand 2000, Panadda "Boom" Wongphudee, is leading a group of 157 people so upset over five years of construction delays that they filed a complaint with the DSI against the Centara Grand Residence Pattaya.

The suit says that the 157 had bought and paid for units in the project, but it was still unfinished, with work apparently halted.

Ms Pannada's actions forced Central Plaza Hotel Plc, owners of the Centara brand, to back away from the project, claiming the company has a licensing agreement but no involvement in the unfinished construction project.

The Australian educated "Boom", who has been an actress and businesswomen since her year as Miss Thailand, filed the complaint Tuesday with the Department of Special Investigation (DSI) against the developer of the mixed-use Centara Grand Residence Pattaya project after the company called a halt to construction at what many in Pattaya call an eyesore.

The suit names Tulip Group (Bazis Development Co). The firm has been advertising an "iconic" Centara Grand Residence at Jomtien, and selling units since at least 2012.

Tulip Group is a Pattaya-based firm with Israeli roots. The CEO and founder is Kobi Elbaz.

It introduced Centara Grand Residence in September, 2012, as a condominium project on 10 rai in Pattaya's Na Jomtien area. Mr Elbaz said that when completed in 2014, it would comprise 283 condominium units worth 6.4 billion baht and 200 hotel rooms operated by the Central Plaza Hotel Group's Centara chain. It still has not been finished.

Mr Elbaz claimed after a project pre-launch in December, 2011, that the group sold 55 units worth 550 million baht. Some 80% went to Thai buyers, followed by Russians and Americans.

Central Plaza Hotel Plc, which manages the Centara hotel brand, said immediately after the suit was filed that the company has only a licensing agreement with the Tulip Group to use the Centara Grand brand for the project and had been contracted to manage the hotel after it was completed.

The group denied any involvement in building or selling units in the Jomtien project.

"The company is not the owner of the project and is not involved with the sales management side," it said.

The company says a clear disclaimer appears in all promotional materials for the condo part of the project which says "Centara Grand Residence, Pattaya is being developed and sold by the developer, Tulip Group (Bazis Development Co) and not by Central Plaza Hotel Plc or its affiliates.

"Centara has not confirmed the accuracy of any of the statement of representations made herein, and Centara is not part of, or an agent for the developer and has not acted as a broker in connection with the sale of Centara Grand Residence Pattaya. Neither Central Plaza Hotel Plc nor its affiliates, employees or representatives make any warranties or representations in respect of the project," the disclaimer says.

The company said it regretted the situation and sympathised with buyers. News the project is in trouble emerged only recently, observers said. The developer could not be reached for comment.

The group of buyers said they bought units off-plan at prices ranging from 2 million to 35 million baht per unit. They estimated the damages they had suffered at 500 million baht.

Boom said she booked a 35-million-baht unit in 2012, convinced by the ads and condo plans.

The owner offered her a price cut to 20 million baht for her unit in exchange for her acting as the project's presenter. She accepted the offer and signed a contract.

Months later, she said the owner chatted with her online, made advances to her and asked her to go out with him at night. "I thought it was suspicious so I cancelled the presenter deal and asked for a return of the deposit of 2.5 million baht," she said.

But the project owner returned only 1.8 million baht, saying some of the money had been invested in a business in Singapore, Ms Panadda said.

Story and photos: http://www.bangkokpost.com/news/general ... le-lawsuit

[Gaybutton]

Still need to be convinced to avoid buying a condo yet to be built?
________________________________________________________

Waterfront Tells Lie To Buyer

Waterfront informed its buyers they are approved to continue construction, though they weren’t yet approved by Pattaya city.

PATTAYA-[PattayaDailyNews]; According to the case that project contractor of “Water Front Suite and Residence” was canceled its construction due to environmental and city plan issues, representatives and 20 lawyers of room buyers went to Pattaya City Hall in order to discuss about the progress on the case. However, the official couldn’t exactly clarify when the contractor will be able to continue.

Mr Chalermwat Wimuktayon, lawyer, said that room buyers received email from the project contractor that the project has been approved from Pattaya official to continue the construction. However, the buyers don’t believe the contractor anymore due to pending problems. As a result, they decided to assemble at Pattaya City Hall in order to discuss about the probe.

Mr Chalermwat added that they were informed by Pattaya official that the official didn’t yet approve the contractor to continue construction due to oversize area, parking lot dismantling and other issues.

In addition, skyscraper blueprint is unclear and several parts aren’t yet approved. The official has to extend duration of document inspection to 11 May 2017.

Meanwhile, Mr Sukwat Suksawas, deputy mayor of Pattaya, said that Waterfront has pended for a long time and it is now being stopped the construction due to several troubles. Pattaya official has the way to cope the situation according to strict rule, however the contractor needs to obey the law and submit the document as requested so that the official so that the official will be able to approve the contractor.

http://pattayadailynews.com/waterfront- ... -to-buyer/

[fountainhall]

Even when a building has been given permits and completed for some years, there is still no guarantee that it can stay up! In October last year, the developers of the luxury Bangkok Aetas Hotel on Soi Ruamrudee - the small soi behind All Seasons Place on Wittayu - were given notice that the upper floors of the hotel must be demolished. Corruption is naturally at the heart of the issue. There is in Bangkok a law stating that buildings on a soi with a width of less than 10 meters can only be of a certain height (I believe this is 8 storeys). This hotel far exceeds that limit. Residents surrounding the building fought for some years to get the upper floors demolished. The last time I went down that soi I did not notice any work being undertaken, and all the hotel booking agencies are still taking bookings! Watch this space!

The permit was issued despite a ministerial regulation in the Buildings Control Act prohibiting a very tall building on a soi with a surface width less than 10 metres.

http://www.nationmultimedia.com/news/national/30296630