Sino ThaiFrom time to time, you can come across videos on the Internet of real estate buyers in Phuket with stories about construction delays and developers failing to fulfill their obligations. In these videos, people, often without understanding, make loud statements on emotions. We would like to clarify some details on these issues.
A small construction delay is almost the norm for developers in Thailand. Any contract specifies periods from 6 months to a year, for which the developer can delay construction without penalties. Of course, some delay for a longer period, and for this there are already penalties – a percentage of the cost of the property. However, there are large developers with a long history who do everything on time, so it is important to buy real estate from them.
What to do if the property was purchased on full payment terms and the developer was contractually obliged to pay a guaranteed income, but does not do so? The reasons for the developer’s failure to pay may vary – poor apartment sales, delayed payments by buyers, errors during the construction of the project. And if such a developer does not fulfill its obligations to pay a guaranteed income, and such payments may begin even before the property is fully ready and commissioned, or does not want to pay a penalty for late construction, then this is a breach of contract and you should contact lawyers.
It should be noted that the situations described above are not typical for Thailand – violations in this area exist in every country, so there is no need to exaggerate, but rather to deal with each specific case.
Once again, I would like to emphasize that the choice of a developer is the most important moment when buying real estate. Yes, this is not so easy to do, that is why real estate agencies are needed, which work independently of developers, protect the interests of the buyer first of all, checking each specific project for all the necessary certificates and permits. Our advice is to contact agencies with a history, long-standing real estate sales, check their reputation, ask them questions about this or that developer and compare their answers. Because from the total number of developers, we would single out only 20 percent with an excellent reputation, from whom you can buy something without risk. By choosing such an agency, you will buy an apartment from a top developer with its help, you will be guided through all stages of the transaction from the beginning to receiving the keys, and the risk of problems will be excluded or completely minimal. Even if some controversial issues suddenly arise, serious agencies help to resolve them with the help of their lawyers, and you will not be left alone with your problems. Buying real estate is not an easy process even in your own country, and even more so abroad, so you need to make some effort to avoid losing your money.