Firms will now be as good as their word

The amended Condominium Act, which comes into effect on July 4, will ensure property companies give the 'real picture' when it comes to projects and put pressure on them to deliver what they advertise, developers said.

The real beneficiaries of the law will be condominium buyers as, under the act, developers who use misleading advertisements to boost sales would be punished.

The act will authorise the Land Department to charge property developers with providing false information if they do not make good on the promises they make in advertisements, Surasith Sahasthamrangsi of the real-estate business promotion bureau of the Land Department said.

Starting July 4, developers will have to submit advertising plans along with construction proposals. Once a project is completed, the Land Department will inspect it and tally the facilities provided with those promised in the advertisement. If there is any variance, the department would have the power to fine the developer.

The act was made necessary after buyers - who had bought units before they were completed - complained of developers not providing facilities that were promised. Before the act was formulated, 2,000 such cases were recorded every month, Surasith said.

Property Perfect chief executive Dr Teerachon Manomaiphibul said the act would hurt only those developers who are inclined to cheat buyers.

Due to the act, developers will not be able to transfer a property to buyers if they do not deliver the facilities they promised while promoting the project.

Home-buyers would also be able to file cases against such developers. While this will protect buyers, developers who do not follow ethical practices would stand to lose, he said.

"I think the act will be better for developers who do everything according to the law and are concerned about business ethics. The act will also help reduce competition [from unethical people] in the market," LPN Development managing director Opas Sripayak said.