Jellybean
November 21st, 2012, 21:38
. . . Let the buyer beware indeed!
http://www.andrew-drummond.com/2012/11/ ... using.html (http://www.andrew-drummond.com/2012/11/exclusive-hua-hins-awfie-big-housing.html)
I thought members might be interested in seeing an article by the journalist Andrew Drummond about a developer in Hua Hin which highlights some of the pitfalls and dangers of buying property in Thailand. I have a particular interest in this case as I bought a house, off-plan, from the developer 7 years ago.
I was very lucky, a year later my house was, more or less, ready on time and I was able to move in with only some minor snaggings to deal with. I didnтАЩt have any major issues until 2 years later in 2008 (as the world economic crash started to take hold) when my neighbours and I heard about numerous problems with his other developments. It soon became obvious that he wasnтАЩt going to finish off the communal aspects of our development or complete the last two houses as we heard he was running out of money from new house purchasers. Ten of the twelve houses in our street were however completed and the owners of the two remaining houses are, I am sorry to say, currently taking individual legal proceedings against the developer.
Over the next two years my neighbours and I engaged in frequent negotiations with the developer, but, sadly, each time we thought we had reached an agreement he would resile and negotiations would collapse.
After those two fruitless years we eventually concluded that we would have to resort to more formal action and took legal advice. Our lawyer issued several written warnings, but they were ignored. We were then left with no alternative but to take legal proceedings through the Thai courts, which dragged on for a further two years. I am happy to report that two months ago we won our class action against the developer and were given legal control of our estate and the right to finish off the development ourselves, but, regrettably, at our cost.
We decided not to pursue the matter of costs and penalties on the grounds that we had already spent enough on lawyersтАЩ fees. And, importantly, we were advised that we could have been involved in further, protracted legal proceedings for up to another two years with no guarantee that we would ever be able to enforce the courtтАЩs judgment and receive a single Baht in compensation and costs from the developer.
We are currently installing a permanent electricity supply at our own cost тАУ for two years the developer refused us permission to do so despite the fact that we were paying twice the normal rate on a temporary supply. Our next action, which I hope to contribute to when I arrive back in Thailand, in just over two weeks time, is to agree on how we finish off the communal aspects of our small estate.
I count myself very lucky; there are a great number of people in the neighbouring estates who have lost a considerable amount of money with no prospect of their houses ever being completed. And I donтАЩt think it is any exaggeration to say that many have had their lives ruined.
It would be disingenuous of me to say that the difficulties and extra costs over the last 4 years have not, to a certain extent, blighted my enjoyment and experience of life in Thailand. I have however tried to reduce the impact by adopting a, тАШsuch is lifeтАЩ or тАШT.I.TтАЩ attitude by not letting this unhappy episode totally dominate my life or sour my view of Thailand. I was also extraordinarily lucky in another respect, I was able to rent out my house for most of the last 4 years and buy a condo in Bangkok where I have spent the majority of my time when not back here in the UK. I am happy to say IтАЩve not had any problems with the condo to date and, thankfully, you donтАЩt have to go through the annual rigmarole of producing company accounts as you do with the ownership of a house.
But with the benefit of hindsight I certainly wish I had not gone down the road of buying a house in Thailand. Although I acknowledge there are bound to be many foreigners ( and I know quite a few) who have bought properties in Thailand and have had no problems or regrets whatsoever.
When asked for my opinion, I always advise people who are thinking about moving to and buying property in Thailand to at least, in the first instance, consider renting rather than buying. In my view itтАЩs a lot less hassle and offers far greater flexibility.
http://www.andrew-drummond.com/2012/11/ ... using.html (http://www.andrew-drummond.com/2012/11/exclusive-hua-hins-awfie-big-housing.html)
I thought members might be interested in seeing an article by the journalist Andrew Drummond about a developer in Hua Hin which highlights some of the pitfalls and dangers of buying property in Thailand. I have a particular interest in this case as I bought a house, off-plan, from the developer 7 years ago.
I was very lucky, a year later my house was, more or less, ready on time and I was able to move in with only some minor snaggings to deal with. I didnтАЩt have any major issues until 2 years later in 2008 (as the world economic crash started to take hold) when my neighbours and I heard about numerous problems with his other developments. It soon became obvious that he wasnтАЩt going to finish off the communal aspects of our development or complete the last two houses as we heard he was running out of money from new house purchasers. Ten of the twelve houses in our street were however completed and the owners of the two remaining houses are, I am sorry to say, currently taking individual legal proceedings against the developer.
Over the next two years my neighbours and I engaged in frequent negotiations with the developer, but, sadly, each time we thought we had reached an agreement he would resile and negotiations would collapse.
After those two fruitless years we eventually concluded that we would have to resort to more formal action and took legal advice. Our lawyer issued several written warnings, but they were ignored. We were then left with no alternative but to take legal proceedings through the Thai courts, which dragged on for a further two years. I am happy to report that two months ago we won our class action against the developer and were given legal control of our estate and the right to finish off the development ourselves, but, regrettably, at our cost.
We decided not to pursue the matter of costs and penalties on the grounds that we had already spent enough on lawyersтАЩ fees. And, importantly, we were advised that we could have been involved in further, protracted legal proceedings for up to another two years with no guarantee that we would ever be able to enforce the courtтАЩs judgment and receive a single Baht in compensation and costs from the developer.
We are currently installing a permanent electricity supply at our own cost тАУ for two years the developer refused us permission to do so despite the fact that we were paying twice the normal rate on a temporary supply. Our next action, which I hope to contribute to when I arrive back in Thailand, in just over two weeks time, is to agree on how we finish off the communal aspects of our small estate.
I count myself very lucky; there are a great number of people in the neighbouring estates who have lost a considerable amount of money with no prospect of their houses ever being completed. And I donтАЩt think it is any exaggeration to say that many have had their lives ruined.
It would be disingenuous of me to say that the difficulties and extra costs over the last 4 years have not, to a certain extent, blighted my enjoyment and experience of life in Thailand. I have however tried to reduce the impact by adopting a, тАШsuch is lifeтАЩ or тАШT.I.TтАЩ attitude by not letting this unhappy episode totally dominate my life or sour my view of Thailand. I was also extraordinarily lucky in another respect, I was able to rent out my house for most of the last 4 years and buy a condo in Bangkok where I have spent the majority of my time when not back here in the UK. I am happy to say IтАЩve not had any problems with the condo to date and, thankfully, you donтАЩt have to go through the annual rigmarole of producing company accounts as you do with the ownership of a house.
But with the benefit of hindsight I certainly wish I had not gone down the road of buying a house in Thailand. Although I acknowledge there are bound to be many foreigners ( and I know quite a few) who have bought properties in Thailand and have had no problems or regrets whatsoever.
When asked for my opinion, I always advise people who are thinking about moving to and buying property in Thailand to at least, in the first instance, consider renting rather than buying. In my view itтАЩs a lot less hassle and offers far greater flexibility.