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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.

– The Nation 2008-05-17

source

The rights of condominium buyers will be protected under an amended Condominium Act that will take effect on July 4, according to the Lands Department.

Surasith Sahasthamrangsee, the director of the department’s Real Estate Promotion Office, said the new law clarified many issues that had been disputed between developers and unit buyers.

It makes developers accountable for claims made in their advertisements and imposes fines of 50,000 to 100,000 baht for violations.

Once the project is completed, the developer has to submit its brochure to the juristic person, the legal body that manages the condominium, to confirm that the finished product matches what had been claimed.

Mr Surasith said the law also set the standard for contracts and clarified that developers were responsible for the monthly common-area fees for unsold units.

If a unit holders fail to pay the fees, the juristic person can charge maximum interest per of 12% per year for one month overdue and up to 20% for payments that are six months overdue.

Regarding voting rights for the juristic person, any representative can vote on behalf of a maximum of three units. Developers must also provide an office for the juristic person.

Mr Surasith said there was concern that the new requirements did not cover projects that already had construction permits, especially with respect to the rule that developers had to create a different entrance for shops in condominium buildings in order not to disturb residents.

The new law also requires developers to specify exits from the project site to the main road.

Therefore, developers who already hold construction permits for designs that do not address the new requirement could have difficulty when they complete the building and register the establishment of a juristic person.

taken from http://www.bangkokpost.com