Property development services charges

[lizzy]

Our Developer has doubled the serviced charge on our development. As our contract is for the original amount does anyone know if we have a legal obligation to pay at the new rate?
There is nothing in our contract mentioning increases.
Can we demand the developer has accounts for this money signed off by an independent accountancy firm?
Thanks for any help.

[poosmate]

I would imagine any increase could only be implemented at the end of your current contract.
What does the service cost now and what is included ? This will give an idea to the value you are getting now.
As for mentioning increases - Most would presume things get more expensive and a reasonable increase in line with say inflation would be normal.That is unless your contract is for many years and does not allow for increase?

[STEVE G]

Certainly doubling the price of anything without justification is not reasonable and looks rather like extortion.
I'm not aware of any large increases in the sort of services that you could be using that would justify a doubling of fees, unless you've been paying the same amount for the last ten years or something like that.
Perhaps you could get together with others on your development and take the problem to a reputable law company in Bangkok.

[margaretcarnes]

The last apartment I owned in the UK had an obligatory 'management fee' which would be pretty much the same thing. To cover communal maintenance, gardening etc.
It was covered by a detailed contract which allowed for annual increases which were limited to a maximum increase p.a., but with a clause covering any unforeseen costs which may arise (Unlikely given the standard UK House Builders 10 year guarantee.)
I would expect any such fees anywhere to be covered by similar agreements. It is unrealistic to expect that costs won't increase - but equally unrealistic for fees to be doubled overnight!
Most importantly though - I would expect these fees/service charges to be administered by a separate Management Company. Not solely by the developer.
Unfortunately the Thai property market doesn't seem to have such strict controls. Getting together with other owners to take legal action - as already mentioned - is probably your only recourse against the increase. Opting out of the scheme and arranging one of your own together with other owners may be another longer term option worth investigating.
But these private arrangements are also fraught because there are always owners who don't want to know.
I wish you well - and hope potential buyers will learn from your experience.