Follow up on condo issues
Posted by Paula Fan Club
BUYERS LODGE COMPLAINT OVER UNFINISHED CONDO PROJECT
THE NATION (Thailand)
www.nationmultimedia.com
BY PIYANUCH THAMNUKASETCHAI
SUCHEERA PINIJPARAKARN
DATE PUBLISHED: 09 JULY 2009
DATE POSTED: 09 JULY 2009
The developer of the delayed Charisma Sukhumvit condominium project, In Style Estate Ekamai Co Ltd, says the group is ready for an inquiry by the Department of Special Investigation (DSI) - to show they never meant to cheat clients.
Managing director Peerasak Klinsunthorn insisted the firm would return all money to clients despite suffering liquidity problems.
Yesterday, some 31 people who paid deposits for rooms in the planned luxury block lodged a complaint with the DSI. The buyers accused the project owner of fraud, after four years of little progress on the building.
The buyers made statements and presented evidence to show they had paid a total of Bt28 million in reservation fees and a fifth of the price of each unit to the managers of In Style Estate Ekamai.
Peerasak said that to improve liquidity, the firm might sell the Charisma project to other developers, or seek partners to jointly develop it or refinance its loans. That should ensure clients receive deposits and down-payments back on demand.
He said the company had to prepare around Bt50 million on returning the money to a total of 80 clients.
“We have talked with all 80 clients. Most of them understand the company situation, but some want the company to quickly pay back the money,” he said.
He noted that displeased clients had the right to file civil lawsuits against the group. But the firm was ready for the inquiry.
Buyers, however, told the DSI In Style promised to erect the 23-storey building by this month, but only a few pillars had been staked at the Sukhumvit 63 site since ads for the project appeared in March 2005.
Deputy DSI director-general Suchart Wonganantchai said the DSI would accept the case after verifying the buyers’ claims.
In their statements, buyers said the company had spent more than Bt200 million it obtained via a Bt280-million mortgage, with the site used as collateral.
They said the company had recently lost three civil court lawsuits, and had been told to pay Bt280 million to a contractor, an advertising firm and a commercial bank.
Actress Paula Taylor, who bought one of the units, recently filed a suit against the firm and “won” repayment of Bt1.8 million.
CONDO ISSUES
DATE POSTED: 23 MAY 2009
Some people may not know that part of Paula Taylor’s investment portfolio is the purchase of properties in both Thailand and Australia , which are then rented out.
Between two and three years ago Paula contracted to purchase a condo property in Bangkok, from a company, during its pre-selling period. However, sadly, after two years, there has been virtually no progress on the development of the project. Although Paula does not wish to disclose any personal details, she is considering the possibility of legal action against the company.
Due to the problems Paula has suffered throughout this unhappy period, her main hope is that others will learn from her experience, and take extra care when entering into such contracts.
Paula shares “I was really disappointed to experience stuff like this. I have been working very hard to earn money and trying to spend every penny worthily. For me, buying property is another way to save money as I am not good in managing cash. Actually, I have been many times trying to contact the project management in order to sort the problem out but I was totally refused. The only thing I feel secure to lean on now is the process of judgment and I do hope the results will come out positively. This will be my most valuable lesson in my life to consider everything carefully before making any decisions.”
Tags: Charisma Sukhumvit Condominium Project, Condo Buying, In Style Estate Ekamai Co Ltd, Style Estate Ekamai
