Common Problems When Buying Property
The Real Estate Industry is Unregulated
Thailand has no limited regulations governing the real estate industry. As a result, You have limited protection concerning the majority of real estate transactions, and you could be charged unreasonably high fees and commissions whereas in the West other countries, most agents provide full disclosure of fees and commissions.
Avoid the One Stop Service Center
This sort of handy service center offers easy service to acquire land. There are many one stop service centers that offer a variety of services for acquisition of property ranging from the beginning steps such as choosing a property of interest, to the final steps of the transfer of ownership. These one stop services should be avoided as a Lawyer may act for the benefit of the seller as well as the buyer therefore earning them twice as much and hence creating a conflict of interest. Also, a lawyer may act for the benefit of the seller, rather than yours. In the end, the lawyer may get paid twice, once for performing the legal work, and once for brokering the property.
You don't need a lawyer, this is a standard contract
For your safeguard, have a specialized lawyer review thecontract for you. If you sign a document in Thai, it becomes a legally binding contract after you sign it. In some cases, it may be stated by the buyer or seller that in the event of a sales and purchase agreement, that the contract is in most cases. However, it is common that most standard contracts tend to exclude protection of ones own interest, whether you are the seller or the buyer. In order to avoid this, it is recommended that you contact a lawyer or a solicitor to review the relevant contracts for you before proceeding with any signing.
Thailand Issues Four Types of Land Titles
There are 4 types of land title deed available in Thailand: Freehold land title (Chanote), Nor Sor Sam Kor, Nor Sor Sam, and Sor Kor Nueng (rights of the owner decrease with each new option listed). The best way is to buy land using the first option stated here, known as Chanote.
Avoid Making a Deposit
Avoid making a deposit! Never make any deposit without an agreement, or a receipt, stating that such payment will be used for a reduction of the price. After a deposit payment is made to reserve the right to purchase land, it is possible that the deposit Is not recorded and the buyer receives no credit for it, and when this does happen, it is normally non-refundable.
Thai translations into English
The possibility exists when the owner/developer provides two contracts ;Thai and English, and contents of the two contracts are different: hence it is suggested that you have these contract reviewed beforehand by a lawyer or a solicitor.
Condo Development over 49% foreign ownership
The Law in Thailand allows foreigners to own 49% of the total space of all units in that condominium project. It is suggested that you verify with the developer or the condominium juristic person that your ownership in the project will not be over 49% total space of all the units of the project.
Not dealing with the owner or to owner's authorized agent
Always verify the originality of land title, as there have been cases where counterfeit title deeds have been reported. Fake land titles have been reported. Also, there are those who try to sell land without having the legal right to do so. Cases in which the true owners are not who they say they are and attempt to sell the land without being the legal owner.
Buying an incomplete condominium project
A buyer should be aware that there are a number of projects, which have never been completed for different reasons. Choose carefully a project and a developer. Due Diligence is very important in your buying process.
Responsible partly for fees an expenses at registration time
Verify who is responsible for fees payable at the time of registration. All fees are negotiable. A skill legal negotiator will help you greatly. This will be outlined in the contract of sale beforehand.
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