If you are buying property in Thailand then this is a brief breakdown of what you be careful of when buying any form of real estate. Before you provide a deposit always ensure that you speak to an attorney or a solicitor in Thailand for legal advice as you may create problems for yourself and wave your investment or retirement egg goodbye.
Always be careful about property transactions in Thailand as the market is not regulated, there is no Fidelity Fund insurance with your attorney in Thailand while holding your money and the consumer court in Thailand is new and not well proven as yet as a way to settle property matters.
Finding the authorized property agent is always going to be a problem as many might want to ‘bring you in’ in order to get a commission for bringing in a buyer. The agent not being authorized might promise heaven and earth without being held liable in the end or ensuring that any of what you agreed upon is in the contract when it comes to signing. Language is another barrier and there may also be misunderstandings when it comes to negotiating the property agreements. Most large developers have their own agents and they are well versed in the law and will also ensure that what you agreed upon is in the contract. It is very important that you always seek the advice from an independent attorney to verify what is said and written.
Always ensure you speak to your attorney before you pay a deposit. Ensure that due diligence has been done and that you will not wave your deposit goodbye when the developer is bankrupt or already has massive liabilities. This occurred with the Asian crisis when many of the developers had been building property out of the deposits collected. When the market went sour all those deposits had been lost and the projects never completed. Thailand is full of half-completed property projects. The contract has to state the deposit amount and also the time limit set for when the project will be completed and also what penalties the developer has to pay if the project is not done on time.
Ownership or Rent
Something to consider is a rental option. What buy when you can rent. Speak to your attorney about rental agreements over sale agreements. Each has its own advantages and should always remain an option in Thailand.
This report allows your attorney to investigate the project, see if the permits are all in order. Investigate the property developer and view his reputation in the market. Also, check that what you agreed upon is in the agreement from the developer. A due diligence report is one of the best insurance strategies you can have when buying property in Thailand. The chances of an investment lose become smaller when due diligence has been done. This as stated also views the payment terms, penalties for late completion, ensure that the tiles you wanted are included in the agreement and above all how payment will be made. Normally this is done in stages being in tranches of 25% of the sale price for each milestone completed. What these milestones are and the time limits are important. Call us toll-free or speak to us online. Better yet if in Thailand walk into any of our offices in Thailand for legal advice. The first appointment is always free.