Do a property due diligence when buying property or any form of real estate in Thailand. A due diligence report would always be advised. The property market in Thailand is not well regulated. Not to long ago in Samui, property had been developed and sold which was located on government property.
The Due Diligence report will help to avoid these types of problems. When buying any form of real estate you need to know that what you are buying is actually what you will be getting. The Due Diligence report allows for a certain amount of protection from losing your investment. Firstly the developer needs to be looked at. The large listed companies are not an issue but there are many smaller ones who push huge amounts of property onto the market many times building with money collected from deposits from buyers who are buying offplan. This creates many issues as the developer might not be well funded and the project could very well not be completed. This has occured in Thailand many times and there are well know examples of projects which have not even so much as had thier foundation dug. Ask around on any of the Thai forums about incompleted projects in Thailand and they will give you a vast list of projects which have never been completed. Always ensure that the developer can deliver and that you will see your condo or villa when it is done.
The Due Diligence report also has to look at the project and if it has the approval of the Thai government and that the title deeds of the property are correct. As stated before many foreigners had been arrested a few years ago when they bought property in Samui where the development was built on government land and that they all lost their property and investments. They had also been arrested and this shows what happens when you do not investigate the developer and the property title itself. Don’t lose your investment in Thailand by thinking that Thailand is like your home country when it comes to property transactions.
The solicitor also has to view the property contract. This is even more important when you are buying property that has not been built. Buying offplan has many risks attached to it but by investigating the developer, title deed and the contract you are lowering your financial risk or losing your complete investment. There are clauses which has to be in the contract and this we have explained on antoher post on this website.
If you are looking at buying any property in Phuket or for that matter Thailand then speak to our solicitors in Thailand or simply walk into any of our offices located in all the major cities of Thailand to have a personalized consultation with any of our legal staff.