About to Buy a Condo

[papillon 695]

Fellows BMs correct me if I am wrong, but I thoguht as a farang you could buy a house, but the actual land must be owned by a Thai ie: two separate titles - one for the house and one for the land.

 

You're correct. Although I'm not sure you'd get a Title deed for a house. It's the land that gets the Title deed.

 

You then need to Lease the land from the land owner. Current maximum is thirty years. Then build your house on the leased land. After 30 years your house could be worthless to you unless you can get another 30 year lease. That's not guaranteed. You might end up in a situation where the Land Owner charges you for demolishing your house and clearing the land back to its original condition. Best way to look at it is a 30 year rental.

 

I was talking to a Bloke in the Philippines (in a bar) about buying land and building a house on it. Not sure about the validity of it but this is the jist of it......

There's a Condominium act whereby the land has to be owned by a Filipino at least 51 percent. A Foreigner can then build a house on the land as long as the 'foot print' of the house is less than 49 percent.

 

So the Filipino could have a 6 Feet square tin shack on his 51 percent of the land and you could theoretically erect a 90 floor Sky Scraper on your 49 percent plot

[aussiexpat 1]

Wahoo, my condo is ready for inspection on 1 October

 

Now, in Australia I always hired a qualified building inspector when a house was finished. Does anyone know if this is available in Patts or is that just wishfull thinking

[Emil 0]

Wahoo, my condo is ready for inspection on 1 October

 

Now, in Australia I always hired a qualified building inspector when a house was finished. Does anyone know if this is available in Patts or is that just wishfull thinking

 

 

Not sure about any building inspector, do you really need one? Don't condo owners only own the interior of the unit? Also you should have a warranty period of a few years so you should have plenty of time to check out the workmanship, check your contract.

 

I also put a deposit down on a condo last month, the Prime Suites near Foodland. The exterior is completed and about 75% of the units are completely done and occupied, but they are now doing the interior of my unit and have until the end of November before they have to pay me penalities. Its in their best interest to not drag it out becasue they receive the bulk of the funds upon completion. I also used the services of the Magna Carta and BM Tony.

 

If your not aware you'll have some construction noise in your area for awhile. They just recently began construction on the Urban Suites which is located where the sales office was located for your condo.

 

Hope you enjoy many years in your condo.

[aussiexpat 1]

Not sure about any building inspector, do you really need one? Don't condo owners only own the interior of the unit? Also you should have a warranty period of a few years so you should have plenty of time to check out the workmanship, check your contract.

 

Yeah not so much a "Building" inspector but more like someone who can pick up any major issues before the transfer rather than trying to get it fixed after. Having said that, as long as all the fittings are straight and the water pressure is good then I'm not too worried as warranty should take care of it later.

 

Probably of bigger concern is how to do the inspection without my ususal FLB induced hangover

[2Dangerous 0]

Having said that, as long as all the fittings are straight and the water pressure is good then I'm not too worried as warranty should take care of it later.

 

Probably of bigger concern is how to do the inspection without my ususal FLB induced hangover

 

If you're still hungover and drunk, those crooked fixtures might look straight . good luck with inspection either way, drunk or sober .

[aussiexpat 1]

Well, first condo inspection finished, then 2nd...and it's all accepted now and this post will hopefully help others to prepare for the same....

 

Go to inspect condo, bathroom not finished (tiles everywhere), mirror cracked, floor tiles feel spongy, marks all over walls, stairs not adequately mounted, steps crooked and aircon blows directly onto balcony so too hot to go out there, some cupboards have no shelving and other cupboards too low (above fridge only 160cm so that's gotta go). The most frustrating experience is that the guy admitted later that he knew all the problems but they still wait untill you pick them up or they don't fix

 

The biggest problem, and reason for this post though is to do with money transfer. My advice is to always transfer you payments direct to the Developer's account or your Lawyer's account as then they are responsible for obtaining the Tar Tort 3 proof that funds came from overseas. My payments have been a nightmare as even though all funds were transferred from overseas my TMB bank cannot seem to give me the right documentation, even with the Thai Sales agent being with me. I then transferred the final payment of $100k to my TMB account on the 10th of December, left Thailand on 14th with money still not showing up (supposed to take 2 business days) and then went back on 31 Dec to be shocked that money had still not turned up. After getting HSBC to invetigate the wire transfer, they tell me Thai bank has held the money awaiting proof documents from the beneficiary, without stating what documents are required (weird as I was remitter and beneficiary).

 

I then asked HSBC to reverse the wire transfer and I sent the money again directly to the Developer as I'm sure they don't need to show any prooof documents (I'll find out in 2 days). I also arranged for the Dveloper to "buy"the Tar Tort 3 for the other baht already sent that TMB wouldn't process, for which they did for 4,000 baht per 600k.

 

In summary, don't use TMB (I heard Siam Commerial is quite good) or just transfer direct to condo developer...this should save many headaches and I must add that the Urban Sales Lady has been fantastic to get me out of this mess...live and learn :)

[jacko 8,786]

Well, first condo inspection finished, then 2nd...and it's all accepted now and this post will hopefully help others to prepare for the same....

 

Go to inspect condo, bathroom not finished (tiles everywhere), mirror cracked, floor tiles feel spongy, marks all over walls, stairs not adequately mounted, steps crooked and aircon blows directly onto balcony so too hot to go out there, some cupboards have no shelving and other cupboards too low (above fridge only 160cm so that's gotta go). The most frustrating experience is that the guy admitted later that he knew all the problems but they still wait untill you pick them up or they don't fix

 

The biggest problem, and reason for this post though is to do with money transfer. My advice is to always transfer you payments direct to the Developer's account or your Lawyer's account as then they are responsible for obtaining the Tar Tort 3 proof that funds came from overseas. My payments have been a nightmare as even though all funds were transferred from overseas my TMB bank cannot seem to give me the right documentation, even with the Thai Sales agent being with me. I then transferred the final payment of $100k to my TMB account on the 10th of December, left Thailand on 14th with money still not showing up (supposed to take 2 business days) and then went back on 31 Dec to be shocked that money had still not turned up. After getting HSBC to invetigate the wire transfer, they tell me Thai bank has held the money awaiting proof documents from the beneficiary, without stating what documents are required (weird as I was remitter and beneficiary).

 

I then asked HSBC to reverse the wire transfer and I sent the money again directly to the Developer as I'm sure they don't need to show any prooof documents (I'll find out in 2 days). I also arranged for the Dveloper to "buy"the Tar Tort 3 for the other baht already sent that TMB wouldn't process, for which they did for 4,000 baht per 600k.

 

In summary, don't use TMB (I heard Siam Commerial is quite good) or just transfer direct to condo developer...this should save many headaches and I must add that the Urban Sales Lady has been fantastic to get me out of this mess...live and learn :)

I most certainly do not like the idea of transferring the money directly into the developers account!

Getting the TT3 from them may not be easy and likely would not be in your name.

If the TMB are proving problematic, close the account, and get one with a better bank.

I use Bangkok Bank and have transferred large sums and obtained TT3s with minimal issue.

Edited January 7, 2010 by jacko

[torrenova 644]

The FET (Foreign Exchange Transaction) document (TT3) must state that the money is solely for the purpose of condominium purchase. I do not see how you can buy a TT3 and if someone says they can then they are doing something fishy. I would also not send the money to anyone else. I hope you are ok.

[aussiexpat 1]

I most certainly do not like the idea of transferring the money directly into the developers account!

Getting the TT3 from them may not be easy and likely would not be in your name.

If the TMB are proving problematic, close the account, and get one with a better bank.

I use Bangkok Bank and have transferred large sums and obtained TT3s with minimal issue.

 

The Developer is an overseas company so I'm not too worried about them obtaining a TT3 as they say its routine and they've now confirmed the title transfer to happen on 14 Jan

 

...as for TMB, please everyone avoid this bank if you're buying a condo...I'll be closing this account next time I come to Thailand and will be opening a Bangkok Bank or Siam Commercial Bank account as everyone I've met that hold these accounts are very happy with them. That will teach me not to be so lazy as I went to the closest bank to my rented View talay condo at Jomtien

[aussiexpat 1]

The FET (Foreign Exchange Transaction) document (TT3) must state that the money is solely for the purpose of condominium purchase. I do not see how you can buy a TT3 and if someone says they can then they are doing something fishy. I would also not send the money to anyone else. I hope you are ok.

 

I understand that this happens quite often as I was told many buyers stuff up the TT3 requirements.....will hopefully let you know I'm ok on 14th when Condo transfers....otherwise my furniture that's arriving on the 16th will need to sit in the car park

[torrenova 644]

I see what is happening more clearly now but you do have to watch out for a couple of things.

 

You are presumably aware that there are a number of prices connected with condos (and houses for that matter) and you should have the figure you are paying tax on as well as the price paid. These may be the same but it is the tax paid price which relates to your FET.

 

Check that they are not buying and reselling it to you and working some sort of loss or gain (whichever way around they do it). People such as Fair Properties and others were always using this scam, pushing things through right at the last minute.

 

Don't be pressured into anything if it is all screwed up. Unravelling a ball of shit is impossible. Best of luck.

[LostInAmsterdam 0]

Check that they are not buying and reselling it to you and working some sort of loss or gain (whichever way around they do it). People such as Fair Properties and others were always using this scam, pushing things through right at the last minute.

 

Don't be pressured into anything if it is all screwed up. Unravelling a ball of shit is impossible. Best of luck.

 

 

Can you explain this in simple terms TerraNova for a simple person like me.

 

Cheers

 

LiA

[scorpions 6]

How did you handle the final payment together with the registration at the land office? Cash check to the lawyer or what? Hope you can finaly enjoy your condo - well deserved

[torrenova 644]

Can you explain this in simple terms TerraNova for a simple person like me.

 

Cheers

 

LiA

 

OK, say you are the buyer and I am the seller. In the middle is "the agent". Now what should happen is that the property is transferred from me to you directly. However, some unscrupulous agents try to pull the wool over the eyes of foreigners and baffle them with bullshit. What reall happens is that the property is transferred from me to at least one other person or company, even back to the developer and then on to you.

 

Now for the financials. Say I had it on the market for 5m but had reduced the price to 4m. If you were paying 5m but later twigged that the price paid was 4m, then you'd be pissed off. I am only expecting 4m so they have to hide 1m. What happens is that they push it around, add fixtures and fittings or take them away, anything really, commission payments to finders are common, and effectively buy it from me at 4m, then sell it to you at 5m. You see 5m registered so you think ok. I saw 4m so I was ok, unless I ever meet you and we talk about it.

 

Happens more on the upward swing of a market where property prices can jump between putting it on the market and when it sells. The agent can market it at a higher rate and then just pocket the difference instead of notifying you that they have received a higher offer and just taking their commissions.

 

Piss poor non regulated market with loads of scam artists pretending to be honest businessmen. Watch out for hiked commissions as well. Prices went up and they then wanted to raise commission levels, saying that they could not live on 3% or so. Bollocks.

 

Caveat Emptor with bells on.

[aussiexpat 1]

How did you handle the final payment together with the registration at the land office? Cash check to the lawyer or what? Hope you can finaly enjoy your condo - well deserved

 

Thanks. I sent my final payment straight to the Developer as my lawyer had checked them out already and I was comfortable with that. The Law office then sent one staff to the land office to sign on my behalf as I had signed a power of attorney form for the Lawyer.

 

Well it all worked as at 1pm today I became the proud owner of a Condo in Pattaya...with the condo warming party coming up

[LostInAmsterdam 0]

OK, say you are the buyer and I am the seller. In the middle is "the agent". Now what should happen is that the property is transferred from me to you directly. However, some unscrupulous agents try to pull the wool over the eyes of foreigners and baffle them with bullshit. What reall happens is that the property is transferred from me to at least one other person or company, even back to the developer and then on to you.

 

Now for the financials. Say I had it on the market for 5m but had reduced the price to 4m. If you were paying 5m but later twigged that the price paid was 4m, then you'd be pissed off. I am only expecting 4m so they have to hide 1m. What happens is that they push it around, add fixtures and fittings or take them away, anything really, commission payments to finders are common, and effectively buy it from me at 4m, then sell it to you at 5m. You see 5m registered so you think ok. I saw 4m so I was ok, unless I ever meet you and we talk about it.

 

Happens more on the upward swing of a market where property prices can jump between putting it on the market and when it sells. The agent can market it at a higher rate and then just pocket the difference instead of notifying you that they have received a higher offer and just taking their commissions.

 

Piss poor non regulated market with loads of scam artists pretending to be honest businessmen. Watch out for hiked commissions as well. Prices went up and they then wanted to raise commission levels, saying that they could not live on 3% or so. Bollocks.

 

Caveat Emptor with bells on.

 

Thanks TerraNova

[yankee99 1]

Congratulations.....looking forward to the pictures. I have transferred over 50k from the US to Kasikorn and never had a problem. I just walked in and asked to the tt3 and they printed it out...

[scorpions 6]

Thanks. I sent my final payment straight to the Developer as my lawyer had checked them out already and I was comfortable with that. The Law office then sent one staff to the land office to sign on my behalf as I had signed a power of attorney form for the Lawyer.

 

Well it all worked as at 1pm today I became the proud owner of a Condo in Pattaya...with the condo warming party coming up

 

 

Thanks

[ShadowDweller 2]

Congrats Aussie! Hope everything is going well for you.

[asco 0]

Does that means i have some place to sleep at when i coming to Patta ya?

[Zeus 56]

Now that you have gone through the whole process, it would be great to see your total costs and expenses associated with a condo purchase. Maybe in a spreadsheet format (you sound like you have been tracking this carefully).

 

I think that would be of great help to those of us considering condo purchase. It could show all the litle eexpenses that might not be considered. Taxes, sinking fund, maintenance, furnishing and outfitting etc.... It might also show the time necessary for all the steps. It seems like a year is almost a minimum to complete the transaction.

 

In any case, enjoy your place and your time in Pattaya!

 

Zeus

[scorpions 6]

What kind of insurance you have put in place now? How did you handle this?