The Biggest Mistakes When Buying Property In Thailand
There can be many pitfalls when buying property in Thailand, that why you need a good Real Estate agent in Hua Hin. The best real estate agents in Hua Hin you can find on THE WHITE LIST where also Dream Estate Hua Hin is a certified member.
Buying property in Thailand is an big experience that should be taken with some advanced planning and many forethought. Many foreigners who come to Thailand to buy an cheap and nice Thailand property for many reasons: maybe for their retirement, as a second home or vacation house or for investment purposes. Buying a 2nd home or property is gaining popularity in many places around the world. For example, in 2005 just over a third of all homes owned by Scandinavians abroad were located outside Europe. And Thailand is becoming a very popular tropic destination of choice as a location for a second property and house. We will here look at the biggest pitfalls which are most common in purchasing property in Thailand and Hua Hin.
Forgetting The Title Search
A deep examination of the title deed recorded at the Land office should be done prior to placing on a deposit or signing of a reservation agreement. You need to verify that the Seller has clear and legal title of the land before you enter into any contractual agreement. The title search will trace the land to its first possession, and checking for any encumbrances such as liens, leases or mortgages on the title deed.
This very important search will also verify area zoning, environmental planning codes in the area. Moreover, any mortgage, liens or encumbrances will be discovered during this process. There have already been many cases where foreign buyers have purchased property only to discover later that they are restricted in terms of structural height on the land and therefore rendering the land virtually worthless.
This is especially true for beach resort or residences where there are most of the time is an height limitations closer to the beach like at in Hua Hin Beach area. This is the # 1 pitfall since a title search can be completed within a few days. Failure to conduct this important step is a big error and could be fatal to your plans to build your dream house or condo in Hua Hin or Thailand.
Failure To Conduct Due Diligence
Every financial transaction requires some sort of due diligence on behalf of the purchaser to verify that it is a sound investment. When you purchase shares of a listed company in the stock market or a mutual fund you will generally research the profile and performance of the company or fund. The same is true when you purchase a property from a developer. You should check with the previous buyers to see if they are satisfied with the quality and time frame of the construction. If you don’t have time to spend on checking the history of the developer, a local lawyer near the development will know or can check the project, who their directors are and their performance history. This Due Diligence report will also outline all the information consisted in a title search mentioned above.
Buying Without A Good Local Lawyer
It is often possible for individuals to purchase a property in Thailand without the services of a local law firm. This may be risky unless you are familiar with the country, the language and its legal system. Contracts in Thailand do not always adhere to the international standards that we are used to back home and may seem quite unfamiliar to us hence why prior to purchase you should take the time to sit down and discuss the purchase process with a lawyer or a solicitor.
That is why before you sign any deposit agreement or contract, you should take some time and sit down with a lawyer or solicitor to discuss the process. You need to know the correct legal process in Thailand for a foreigner to acquire property. Remember that you are spending part of your life savings to acquire this property and you must carefully plan your steps in the process. Your lawyer back home can give you general advice about the contracts and agreements; however they will not be familiar with the country’s laws as they may not have the experience in dealing with matters here.
To be continue……