Table of content

• What is a Pre-Sale Condo?
• What can be done if the project is delayed?
• Steps to Claim Penalties?

• summary

What is a Pre-Sale Condo?

A Pre-Sale Condo is a condominium that is either not yet completed or not yet started construction, but is being sold during the construction phase. Buyers will have to wait another 1-2 years for the project to be completed before they can move in.

The project owner will provide a building model, 3D images, a sample room, and various plans for customers to view before deciding to purchase.

Those who buy a Pre-Sale Condo will get a fresh new unit at a lower price compared to when the construction is completed. There are various pros and cons as follows:

The advantages of buying a Pre-Sale condo are:

1. Lower price

Booking or purchasing a condo during the Pre-Sale phase often offers a lower price compared to buying after the project is completed.

This is a major incentive for those looking for a worthwhile investment or affordable housing.

2. Variety of room choices

Buyers during the Pre-Sale phase have the opportunity to select rooms in desired locations before anyone else, which is important for those seeking specific views or orientations.

3. investment potential

If the project is appealing and in a good location, the price of the condominium typically increases after completion, allowing buyers to sell at a higher price.

The disadvantages of buying a Pre-Sale condo are

1. Construction risks

Buying during the Pre-Sale phase carries the risk that the project may be delayed or not completed as planned, possibly due to the developer’s financial issues or other factors.

2. Uncertainty

The plans or amenities offered during the Pre-Sale phase may change upon completion, resulting in buyers not receiving what they expected.

3. Financial burden

Buyers may have to pay a deposit or installments while the project is still under construction, which is a long-term investment and may carry risks.

What can be done if the project is delayed?

You can claim compensation from the project’s company, which can be divided into three cases:

1. Case of condo completion delay

You need to check the contract for specified conditions, but generally, the company or developer must pay a daily penalty to the buyer, calculated as 0.01% of the purchase price per day until the construction is completed or handed over to the buyer.

For example, for a condo priced at 3 million Baht, with a 0.01% penalty, the buyer would receive 300 Baht per day.

2. Case of incomplete or halted construction

This situation is quite troublesome. The buyer can cancel the contract and request a full refund of all payments made, including the reservation fee and down payment, with an interest rate of 7.5% per year from the date of the initial payment until fully refunded.

3. Contract cancellation

The buyer will receive a refund of the down payment if the project breaches the contract, such as delayed completion or failure to transfer ownership as scheduled.

The buyer can cancel the contract immediately with supporting documents and contact the sales office to request a refund of the reservation fee, deposit, and down payment with interest.

4. Consulting a legal expert or lawyer

Nowadays, there are many lawyers specializing in real estate. If the developer does not respond or violates the contract, consulting a real estate lawyer for advice and legal action is recommended.

In some cases, it might be necessary to file a lawsuit for compensation or contract cancellation.

Steps to Claim Penalties?

1. Draft a letter, email, or send a demand notice via a lawyer to request penalties according to the contract.

The company should clearly specify how they will pay the penalty. Some companies may issue a check, some may deduct it from the room price, or use other methods.

You can send this via registered EMS express mail to ensure that the document has definitely reached the recipient, preventing any claims that you did not send the letter.

2. Address the letter or notice to the authorized signatory of the company.

The name can be found in the condominium contract or the company’s certificate. Send it to the address specified in the contract.

3. Wait for a response

If the company agrees to pay, that’s fortunate, and it’s just a matter of waiting. The letter may specify the amount or percentage, and whether you receive the full amount depends on whether the company provides any justifications.

However, you are guaranteed to receive some compensation.

The most concerning issue is if the company rejects the claim. In this case, send a follow-up letter to reaffirm your request for the penalty and inform them that if they do not comply, you will file a complaint with the Office of the Consumer Protection Board (OCPB).

Filing a complaint with the OCPB is convenient and easy, as it can now be done online through this link: https://www.ocpb.go.th/index.php?filename=index.

If you find it inconvenient to handle it yourself, we are happy to assist you.

summary

In summary, if the condo construction is delayed beyond the scheduled completion date, you can claim penalties or request a refund as specified in the contract.

Follow the steps outlined above. If the developer does not respond, consult a lawyer to take legal action and file a complaint with the Office of the Consumer Protection Board (OCPB) to protect your rights.