Condo Scams

[Gaybutton]

For years, for those interested in buying a condo in Thailand, I have recommended buying a unit only in well established existing condos. I always urge people not to buy a condo that has not yet been built. There has been too many stories over the years about people investing huge sums of money for a unit only to find that the condo never even gets built and the owner is long gone - and so is your money. I have yet to ever see a story about any of these victims ever getting any of their money back. I also never see stories about the scammer caught and arrested.

Also, if it is not a well established condo, make sure you find out where the condo is being built and whether the builder has all the necessary paperwork and permissions. If any paperwork is missing or the condo is encroaching on public land, you can also kiss your money goodbye.

This article makes it a good time to remind everyone to KNOW what you're doing if you're going to buy a condo in Thailand. And if you have reached the age at which you can now legitimately be described as "elderly", unless you think you're going to live forever you might be better off renting rather than buying.
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Ownership nightmare: British buyer’s 15 million baht condo purchase in Koh Samui hits legal roadblock

By Petch Petpailin

June 1, 2023

A British man filed a complaint with the Thai authorities after he bought a 15 million baht condominium in Koh Samui from a real estate company in the southern province of Surat Thani but could not obtain legal ownership. Many foreigners fell victim to this company, resulting in estimated damages of 100 million baht.

A representative of the Thailand Consumers Council, Phattakorn Teepaboonrat, accompanied the British victim, 70 year old David Edward Chapel, to the Central Suppression Division to file a complaint against the real estate company, whose name was not revealed.

Phattakorn spoke to the media about the issue explaining that Chapel bought a luxury condo in Koh Samui in 2016 and stayed there only three times a year. He has been trying to pursue official ownership but has been unsuccessful.

According to Phattakorn, Chapel discovered on May 19 that the condo did not gain construction permission. As if this was not disheartening enough, it came to light that certain portions of the land on which the property stood had been illicitly mortgaged and subsequently sold.

Phattakorn added that Chapel was not the only victim. Other foreigners also fell victim to this company.

The company targeted only foreigners who had limited knowledge of Thai laws. They assured the clients that they would be exempt from paying land taxes and associated fees upon purchasing the condo if buying the property from them. They also created counterfeit documents to lure foreigners into buying.

The case is now under investigation by the police. It is anticipated that further developments in this regard shall be soon reported to the public

Aside from the real estate scam, the British Foreign Office also warned British tourists and expats in Thailand to be aware of a passport scam. Scammers draw the attention of those who want to renew their passports by advertising the faster service. A fake website was created with a similar URL and features to lure the victims into paying the fee to them.

https://thethaiger.com/news/national/ow ... -roadblock

[Jun]

There are enough examples of part completed condos around to alert almost anyone to the potential risk. I see several in Pattaya.

And if you have reached the age at which you can now legitimately be described as "elderly", unless you think you're going to live forever you might be better off renting rather than buying.

I read somewhere that foreigners can only get 30 year leases. If that's true, then if you're not elderly when buying, what happens when you outlive the lease ?

[Gaybutton]

I read somewhere that foreigners can only get 30 year leases. If that's true, then if you're not elderly when buying, what happens when you outlive the lease ?

Then you negotiate a new lease or go elsewhere. I think, but am not certain, that the 30 year lease limit has been dropped.

But no law says you have to sign a 30 year lease. Most farang I know who rent have annual leases. Whatever kind of lease you want is negotiable between the tenant and landlord. Just remember to fill out and submit whatever forms immigration would want.

[Jun]

Then you negotiate a new lease or go elsewhere. I think, but am not certain, that the 30 year lease limit has been dropped.

But no law says you have to sign a 30 year lease. Most farang I know who rent have annual leases. Whatever kind of lease you want is negotiable between the tenant and landlord. Just remember to fill out and submit whatever forms immigration would want.

Various sources still refer to the 30 year limit. Such as this: https://www.siam-legal.com/realestate/Leases.php

I also thought the thread was about PURCHASING condos.
I've assumed those purchases are leasehold, as the properties are off the ground & in any case, I gather foreigners cannot directly own land in Thailand.
A 30 year lease is fairly short in my view, although if someone is well past 70 at the time of purchase, it is probably sufficient for their needs.
If they are in their mid 50s, then there's a 50% probability of outliving the lease.

I don't fancy the idea of negotiating a new lease, as surely that would reflect the full value of the property at the time ?

Surely annual leases amount to renting, which is a different topic ?

[Gaybutton]

Surely annual leases amount to renting, which is a different topic ?

The topic is about scams when buying a condo, which makes talking about alternatives perfectly appropriate for the topic.

[Dodger]

A good rule-of-thumb when buying a condo is to ask the selling agent (or property owner) for a copy of the "Property Contract" before making any final decisions. The Property Contract is nothing more that an engineering sketch of the building floorplan including designated common grounds which is required by law to be on record at the local Land Office where the property is registered.

Second: Take the copy of the Property Contract you received from the seller (or selling agent) to the local Land Office and verify if in fact the property being offered for sale is legally registered with the Land Office. If it is you're all set. If it's not you should walk away from the deal.

If a property owner is selling units "Pre-Construction", where basically you're buying a condo off the Property Contract (engineering sketch) only because the construction has not been completed yet, then the Property Contract still has to be registered with the local Land Office before the property owner can legally sell any unit.

Buying a condo which has already been built and in operation is a pretty safe bet as long as it's registered with the Land Office.

Buying a condo on a pre-construction contract in Thailand is risky business as-far-as-I'm concerned - and I personally wouldn't even consider this without having a lawyer who specializes in Property Management overseeing the entire process.

[Jun]

Thank you Dodger. Very useful advice.

From the evidence I've seen, I would only buy pre-construction if I could insure against non-completion, with an insurer that I trust.