Strategies To Get Payment Of Homeowner Fees

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PeteC
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Strategies To Get Payment Of Homeowner Fees

Post by PeteC »

A sour subject. In my development over here in Rayong we're just embarking on the transition between developer managed and association managed. Looking at the balance sheets there are about 20 out of 65 homeowners who are delinquent, some for more than two years, majority Thai but Farang also. The developer has been diligent and tried many techniques, from honey to hurling bombs. :shock: One that is in place which will remain is no transfer of the chanote unless fees are paid in full. That's already been established some time ago with the land office via a flag system in their computer records. That's all well and good but it doesn't provide the needed working capital to keep the place operating the way it should be.

Any creative ideas that you've seen work? Pete :cheers:
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Re: Strategies To Get Payment Of Homeowner Fees

Post by Takiap »

Hi Pete


From what others have told me, this seems to be a common problem here in the developments. Of course you will also get some people refusing to pay because they see it being unfair if they pay while some others don't. In the development across the road from me, virtually nobody is paying their fees any longer, so I don't know how the developers are coping with costs, but the place is still quite well maintained.

If you ask me, the only way to make sure people pay would be to cut their water and electricity if they don't, and prohibit them from using common areas. Yet another reason why I'm glad we never bought in a development. :laugh:


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Re: Strategies To Get Payment Of Homeowner Fees

Post by PeteC »

Thanks Takiap. Yeah, one option of course is to scrap the entire association and let the Tessaban take over running things like they do with most Thai villages. Each house can then take care of things like security, common areas near their place, maintenance of utilities near their place etc. I think only the sincerely conscientious would give a damn though and the overall place would slowly go to hell. Cutting off utilities can be a legal nightmare as well if the homeowner is current with the utility companies.

I think one of the first things we're going to try is to blacklist delinquents with gate security, forcing the drivers to get out of the car and raise the gate themselves each time. Plans are to install an automatic gate with magnetic access cards....and non-pays won't get one. Should prove interesting in the monsoon season! :laugh: Pete :cheers:
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Re: Strategies To Get Payment Of Homeowner Fees

Post by kalbow »

Hi Prcscct

Yes, this issue is something we've been thinking about on our estate as we transition into an association run development.

We've had some advise from legal and management companies and they've suggested some of the following:

1) As you point out restrict gate access. That is, prevent them from driving in - they have to walk.
2) Prevent visitors and service personnel, e.g. pool cleaners, builders from access if they are to work on the recalcitrant's property.
3) Cut off the water - on our estate the maintenance goes towards delivering water to their plot.
4) Put a lien on their property (as you've mentioned)
5) Sue their ass - apparently Tessaban takes a poor view of non-payers and estates usually win. If they still don't pay then force a sale on their property - well that's what we've been told. May be worth getting a more detailed legal opinion on this.

Good luck
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Re: Strategies To Get Payment Of Homeowner Fees

Post by Nereus »

Exactly the same situation occurs with Condominiums. The cutting off of utilities depends on the who supplies the service. In the Condominium that I have in Bangkok the water is supplied via the Juristic office, whereas the electricity is directly from the MEA. Under the Condominium Act the Juristic IS empowered to cut off the water supply. This actually happened with some units where mine is. However, they were able to obtain a court order to reinstate it after a couple of days. Ironically, the defaulting party is the original developer who has retained a block of units that he rents out, and the only ones to suffer were his tenants.

My house in Hua Hin, although part of the development, is outside the gated area. The residents formed a "committee", rather than a Juristic and attempted to have everyone contribute to the "common area" upkeep. I declined as there was and is NO common area around my property, it is directly on the government road. It has not worked out, and I now believe that the two parts of the development, which are separated by the mentioned road, are at loggerheads!

It is a big problem where common areas are involved, as there are always going to be those that will not contribute, both Thai and Farang.

In the case of the Condos it is a simple matter to block a sale until the arrears are paid, but it may not be so easy with a free standing house if it is on privately owned land. :cheers:
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Re: Strategies To Get Payment Of Homeowner Fees

Post by JW »

Close services to the property.. guess already tried that!
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