When Buying Thailand houses, avoid certain pitfalls. Investing in real estate requires a pre-plan, a lot of experience, and forethought. International buyers invest in Thailand propertyfor several reasons such as –
- Retirement purpose
- Investment reasons
- For getting a second home etc.
Thailand is becoming a popular location for many people to engage in real estate transactions. So it is necessary to avoid mistakes while engaging in Thailand real estate.
- Legal title –
Before signing a reservation agreement or placing on a deposit, you need to comprehensively examine the title deed recorded at Land Department. It is necessary to ensure that sellers possess a legal title of the land deed before entering into any contract or settlement. The legal title search will check for any mortgage, liens, leases, or other encumbrance in the title and will help trace the land or property to its first possession.
This step is important for discovering encumbrance and verifying planning, zoning, and environmental codes in that area. Foreign buyers often have discovered that their purchase property is restricted in many aspects, such as Land’s structural height, which proved the land to be worthless. Failure to title search is one pitfall that can prove fatal to your dream of having a property of your own.
- Due Diligence –
Purchasers require due diligence in financial transactions to ensure a sound property investment. While purchasing a limited company’s share in mutual funds or the stock market, you need to research the company’s performance /fund/profile. Similarly, while purchasing a property from developers, you need to ensure whether the previous buyers are fully satisfied with the time frame and the quality of construction. You can take help from a local lawyer if you don’t want to check the developer’s history. The lawyer can check the performance history, profile of directors, and the project.
It is risky to buy a property in Thailand without availing the service of a law firm unless the investors are accustomed to the language, legal system, and the country. Also, contractual agreements in Thailand don’t adhere to international standards always. So these contracts may seem unfamiliar to them, and thus it is necessary to discuss the investment process with a lawyer before purchase. Foreigners need to know the appropriate legal process to acquire any property in Thailand by taking the lawyer’s advice on property contracts and agreements.
- Estate agent –
Investing in Thailand property requires the expert knowledge of a real estate agent to manage potential risk. Agents are aware of the Thai language and geographical area to show quality properties in their inventory. They will help you to obtain a fair price.
- Planning a deed-
Prepare a separate will and testaments for your assets and newly purchased property in Bangkok since drafting a will covering all assets of Thailand and your home country requires lots of documentation to be notarized by the government. Planning to ensure that estate affairs are in order even after your demise secures your family and avoids stress. On the death of the foreigner, the government will seek the will from the heirs, and the beneficiary needs to pay fees to the land department on transferring the name and title of deed.