If you are buying a property that has not been started or still in progress then you need to ensure that you have done a due diligence on the property and the developer to minimize risking your investment. Thailand had hundreds of incomplete properties from the Asian financial crisis which swept through Thailand. since then the government has tried to reign in the property developers in more ways than one. The first line was to avoid property speculation and regulating this with higher transfer duties if the property has been held for less than 5 years. They also brought in the Consumer Protection Act to help settle property disputes quickly.
If you are buying property in Thailand, always peak to a property lawyer before signing any documents. The following would be the very basics of a property contract and what to look for when the property agreement is handed to you. Again – speak to a property lawyer before you sign the document. Here are the basics:
- – The Seller must provide a guarantee that they own the land where the property is located;
- – The Seller must also provide the title deed for inspection;
- – The Seller must disclose loans and mortgages on the land;
- – The Seller must show the construction permits;
- – The Seller must make available the zoning approvals;
- – The Seller must disclose the common property areas;
- – The Seller must give a specific transfer date;
- – The Seller must guarantee that the building and material are to government standard;
- – The Seller has to notify the buyer of work stoppages but stoppages cant be for longer than 1 year;
- – The Seller must ensure that water and electric is installed on transfer;
There are also a number of documents which need to be attached to the agreement. You property lawyer would know what they are but the basic documents needed which you need to sign and view is the title deed for the property, construction permits, diagram of the property and a number of other documents.
Ensure that you investment in Thailand is a good and secure investment. Speak to us at Law Firm in Thailand at any of our offices in Thailand from Phuket, Pattaya, right to Chiang Mai. We have a law offices in every major city in Thailand where there are expatriates.
Call us today!