More protection for buyers of condos
Source: Bangkok Post March 2008
More protection for buyers of condos
BANGKOK: -- Condominium buyers are to get better legal protection thanks to the amended Condominium Act, under which developers who do not deliver facilities as advertised will be penalised.
The amendment will become effective on July 4. Surasith Sahasthamrangsi of the real estate business promotion bureau of the Land Department said at a seminar yesterday that the new Act would punish de velopers who used misleading advertising to boost sales.
"If they can't deliver what they advertise, the Land Department is empowered to charge them with giving false information," Surasith said.
The amendment followed complaints by buyers whose purchases did not include what was advertised. Most of the angry buyers were people who bought units before they were completed. From July 4, developers will have to submit advertising plans with their construction proposals. On completion, the Land Department will check if all is as advertised.
Property Perfect's chief operations officer, Teerachon Manomaiphibul, said this law would hurt only developers who are inclined to cheat buyers.
Meanwhile, experts said the amended law might hurt the resale market, as the provisional clause that allows foreigners or foreign entities to hold more than 49 per cent of condominium units in Bangkok, municipal areas and other specified areas will be scrapped.
The limit will now be 49 per cent, without exception.
