When purchasing Property in Thailand there are a few dangers to avoid. Purchasing real estate is an experience that should be approached with caution and thoughtfulness. Many foreigners travel to Thailand to buy property for a variety of reasons, including retirement, second homes, and investment. Buying a second home is becoming increasingly common in many parts of the world. Here are some of the most prevalent mistakes people make when buying property in Thailand
- No Title Search- Before putting down a deposit or signing a reservation agreement, a thorough investigation of the title deed recorded at the Land Department should be performed. Before entering into any commercial deal, make sure the seller has a clear and legal title to the land. The title search will trace the land back to its earliest owner and check for any encumbrances on the title, such as liens, leases, or mortgages.
- Failure to carry out Due Diligence- Every financial transaction necessitates some level of due diligence on the part of the buyer to ensure that the investment is sound. When consumers buy stock in a publicly-traded firm or a mutual fund, they usually do their homework on the company’s profile and performance. When they buy a property in Thailand from a developer, the same thing happens. They should verify with prior buyers to determine if they were satisfied with the construction’s quality and timeliness. If they don’t have time to look into the developer’s past, a local lawyer in the area will know or be able to look into the project, who the directors are, and their track record.
- Purchasing a Property in Thailand Without a Lawyer- It is often possible to purchase a property in Thailand without the assistance of a local legal company. This could be dangerous unless they are familiar with the country, its legal system, and its language. Contracts in Thailand may not necessarily comply with international norms that people are accustomed to in their native country, and they may find them foreign. As a result, they should sit down and discuss the purchasing process with a lawyer or attorney before making a decision.
- Purchasing a home without the use of a real estate agent- When people buy the property back home, they are often taught that they should always invest in an area that they are acquainted with. This is because property markets are influenced by a wide range of factors. It is critical to understand the market and manage the potential risk that any transaction may entail.
- Putting down a deposit too soon- Understandably, sellers and agents want to sell their houses as soon as possible. When customers have located the perfect home and are confident that it will satisfy their needs, the typical transaction procedure is to pay a reservation fee or an earnest deposit. In exchange, the seller or agent will hold the property for them and start the process of creating the acquisition contracts. This is usually a small percentage of the buying price, about 10-15%. If both parties fully meet their obligations under the contract, this will usually be deducted from the original purchase price.