Buying a new property in Bangkok is not that simple. The experience that real estate endows should be seen in an advance planning and forethought. A lot of foreigners go to Thailand to buy a property for several reasons, like for investment purposes, a second home and retirement. In fact, owning a second home is a top motivation across the globe. For example, during 2004 it was found out that there are over a third of all homes bought by UK citizens abroad are from countries outside Europe. In this lieu, Thailand is growing to be a top destination choice for a second home. Read more about it here.
No Title Search
A detailed study of the title deed recorded at the Land Department should be performed before paying any deposit or signing of a reservation agreement. It is necessary to check on the seller, if he or she bears a clear and legal title of the land prior to entering any contractual agreement. For a fact, the title search will trace the land to its first possession. It is also done for those who have encumbrances like such as mortgages on the title, liens and leases.
The study will also check on the planning codes, environmental and zoning in the area. Furthermore, any mortgage, liens or encumbrances should be known in the process. In the past, there have been several cases where foreign buyers have bought a property only to gain into account that they are restricted in terms of structural height on the land. Hence, the possession of the land is virtually worthless. This is seen in beach resort communities, where height limitations are present. This is the top mistake, because a title search is done within a few days. Not able to undergo this process is a big mistake and may hurt your plans to build your dream house on the land you seek.
Check out more on the risks in buying a home thru this link.
Buying Without A Lawyer
Usually, there are foreigners who buy a property in Thailand, without seeking the services of a local law firm. Such can make the matter worst, unless you are familiar with its legal system, culture the language and the country. The property contracts in Thailand usually does not conform to the international standards you are used to back in your mother country. Things may seem unfamiliar in purchasing a property, so consulting a lawyer or solicitor is needed. It is important to take note that prior to signing any deposit agreement or contract, you should think of discussing terms with a lawyer or solicitor. For a foreigner to own a property in Thailand, knowledge of the correct legal process in the country is asked for. Don’t forget that in buying a property, you are spending big amounts of money, so be sure to carefully plan your steps. You may also consult a lawyer back in your mother land, but he or she might not be familiar in Thailand’s country laws.
Failure To Conduct Due Diligence
Each financial transaction calls for due diligence on behalf of the buyer to check if there is a sound investment. Upon buying shares of a listed company in the stock market or a mutual fund, you will basically look for the profile and performance of the company. The same goes for when one buys a property from a developer. Checking on the past buyers is necessary. It lets you see if they are satisfied with the quality and range of time of the construction. On the other hand, when you have no time to check on the history of the developer, you may consult a local lawyer to check their performance history, who their directors are and the project. The Due Diligence report will also mention all the facts seen in a title search mentioned above.