Every time Lotus Villas/Regal Thailand sell land (and house/apartment) the contracts will be very vague and include a few things to look out for... below you will see 1 big issue that will lead to disputes at the time of transfer of the land
Thailand Regal Development Co,.Ltd with address 62/16 Petchkasem Rd. Nong Kae Hua Hin 77110 Prachuabkirikhan, represented by Georgios Mastronikolis, having its office located at 62/16 Petchkasem Rd. Nong Kae Hua Hin 77110 PrachuabkirikhanThailand.
Hereinafter referred to as “Developer” of the one part ;
AND
Mr. xxxx xxxxx , xxxxx national, carrying passport number xxxxxxxx residing at xxxxxxxxx, Hereinafter referred to as the “Purchaser” of the other part.
Whereas, the Developer is the beneficial owner of the land bearing the title deed (Nor Sor 3 Gor) no. xxxx, Land No. xxxxx Tambon Tab-Tai, Hua Hin District, Prachuabkirikhan Province, with an area of approximately 21 Rai or 33,600 square meter, where the land is located within the development known as Lotus Villas & Resort, referred to as the “Site”
In the above text you can see the "beneficial owner" typed. This mean that Regal Thailand or Lotus Villas and Development (or George... in the end they are all the same) does not own the land and it is most probably under debt or someone else owns the land.
George is famous for doing something in thai called Kai Fak, which basically is to borrow money against land as collateral.. Under this setup, interest is supposed to be paid to the lender in the amount of 1.5%-2%/month (which is illegal in Thailand) and the money should be paid back to the lender within a certain amount of time. George has failed many times to pay the interest and lost many pieces of land to the lender this way.
The whole of Black Lotus Resort / Lotus Villas & Resort is under this type of structure and thus selling houses and apartments with "lifetime access to the common facilites of Lotus Villas" is just fraud and nonsense as he cannot guarantee that the lender will not shut down the resort due to non performance of the loan.
Another thing to be very careful of is the fact that he has NEVER delivered a house on time. In some cases houses have been 1-3 years late as he uses client's money for his own private expenses. The classic example is to pay a deposit to start building the foundation of the house and then further installments as the construction progresses. However George continously uses clients money for other expenses than to build the customer's house and he does not have money in the end to continue the construction unless he sells another house where he get a deposit and use some of that money for the first house...
It's like borrowing money from one credit card to pay off the first credit card.. round and round it goes...
