The phenomenon of "buying a condo and not getting it" that once plagued buyers in the 1997 Tom Yum Kung crisis may be coming back to haunt property seekers during this global economic downturn.

There are an increasing number of condominium projects that are unlikely to be completed as scheduled. Some haven't even started.

Many of the developers experiencing financial problems include small-scale ones, newly established ones and less professional ones. Some of them haven't been able to record enough sales during the downturn to get project loans from banks.

Basically the developer's default period is normally no more than six months after the promised date. Responsible developers will generally pay daily penalties to their unit buyers.

If buyers want to return units they've booked, they can demand a refund plus interest from developers. High end developers will normally give a refund as it's not worth damaging their reputation by refusing. But what about developers who are not so scrupulous and try to avoid giving refunds?

Many buyers have sought help from the Office of Consumer Protection Board (OCPB). Complaints should be made as soon as possible if an initial negotiation with a developer fails.

The agency provides a consumer information network to give advice with regard to the process of lodging a complaint. For more information, please visit http://www.ocpb.go.th or contact their 1166 hotline. Most cases end with positive results.

One thing buyers must always bear in mind is to keep all written contracts, receipts, letters, sales brochures, sales kits, advertisements and the like as evidence.

Other details that need to be kept include: developers' contact numbers and addresses, booking documents and other forms of communication sent by developers. You just never know when you might need them.

Fortunately, it's now easier and faster for buyers to file complaints after the Consumer Case Procedures Act came into effect last year. The act allows consumers to sue or lodge a complaint at any local court.

More good news for consumers is that they are not required to prove their cases - it's the developers' job. And if consumers win their case, developers are responsible for all expenses incurred, including those of the consumer.

- Here are some suggestions from experts on how to avoid choosing the wrong developer and project.

Aliwassa Pathnadabutr, managing director of property consultant CB Richard Ellis (Thailand), says buyers should first consider a developer's financial status and check if there is any financial institution supporting the project's construction.

"To make sure, the projects should already have construction permits so that risks of not getting a condo will decrease," she suggests, adding an escrow account is a good tool to prevent possible risks.

An escrow agent, not the developer, will collect payments from buyers and will pay the developer in line with the construction progress. The agent will ensure that the benefits of each party are properly met. Under an escrow agreement, property sellers and buyers need to perform in accordance with the terms and conditions.

A good track record is helpful. Buyers should visit previous projects the developer has completed and see whether there were problems.

The internet is another source. Search for information online to see if there are any complaints posted by past buyers.

source : www.bangkokpost.com