Most Common Mistakes when Buying Property in Thailand
Buying property in Thailand is a complicated process and should always be undertaken with the advice of a lawyer. Before you begin, however, you should familiarise yourself with some key points. These include:
- Not Conducting Due Diligence,
- Not Engaging a Lawyer to Review the Contract,
- and Not Having a Lawyer Check the Title Deeds.
By following these tips, you can make sure that you are making the correct decision.
Not Conducting Due Diligence
Performing due diligence is an essential part of buying property in Thailand, as it protects you from being duped and losing money. This involves checking the legal documents and the title of the property. It also includes researching the developer or owner's financial status. Due diligence is a complex process and is especially important in Thailand, where there are many scams involving land and property.
Due diligence is an investigation of a property's history, current owners, and any other relevant information. This ensures the property's reliability and legal status. It also helps you ensure that the owner is legitimate. It's also important to check whether the person behind the property is listed in the court's database.
If you are buying property in Thailand from a developer, you should check for usufructs and servitudes. If the landowner has a gas pipeline, for instance, you should find out if it's registered or executed over the land. It's a sign that something is wrong - and it's never a good idea to invest in a property with a servitude that is unregistered or invalid.
No Lawyer to Review the Contract
While it may seem like you do not need a lawyer to purchase a property in Thailand, it is important to hire a lawyer at the time of purchase. The lawyer will review the contract to make sure that it is as clear as possible and that you will not face legal issues later. The contract will protect you from any legal problems and ensure that you get the best possible deal.
The sales contract is an important document for foreign buyers to understand. Even if the contract is not in English, it should be carefully read to ensure it reflects the actual purchase price. Inaccurate or outdated information on the title deed or government permits can cause legal issues. A lawyer can also help you determine the proper ownership structure of the property.
Title Deeds are not properly checked by a lawyer
In Thailand, property buyers should always be aware of their rights and liabilities by reviewing the title deeds of properties they are considering purchasing. A title deed, which is also known as a 'Nor Sor Sam Kor', is the legal right of ownership to the land. Unlike a lease agreement or a mortgage, a Nor Sor Sam is not transferable and cannot be sold or leased.
The buyer should seek legal advice before making a deposit on a property. If the property is a pre-sale property, the seller must have an attorney review the Title Deed before it can be transferred to the buyer. The buyer should also provide copies of his passport and marriage certificate, the buyer's passport, and the name of the owner's parents.
It is important to ensure that the title deeds are checked by a lawyer when buying property in the country. A lawyer will be able to check whether the property has a history of previous transfers and liens. They will also be able to reveal zoning and building restrictions. In Thailand, it is illegal for a foreigner to claim land and sell it under another name.