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Buying property in Thailand (or anywhere for that matter) can be a minefield, especially for first-time buyers. Most of us learn from our mistakes, but as these mistakes can be costly, it’s better to avoid making them in the first place.
In this article we have laid out the top 5 mistakes buyers make when purchasing property to help you avoid any nasty pitfalls and minimize the potential risks of buying a property in Thailand.
A title search is a comprehensive examination of the history of the property, which traces the land back to its first owner and is recorded at the land department. Due diligence on the title search can spare you a lot of headaches.
● If the seller has a clear and legal title to the land.
● If there are any mortgages, leases, creditor right of ownership (lien), or other charges against the property.
● Area zoning, environmental, and planning codes.
Clear and Legal Title – You most likely wouldn’t buy a bike or car without the necessary ownership paperwork, so why do it with a much bigger investment like a property?
Before putting down any kind of deposit or signing an agreement, verify that the seller has the clear and legal title of the land. Take heed from the work of notorious early 20th-century con man Victor Lustig, infamously known as ‘the man who sold the Eiffel Tower twice.’ You may well laugh and say that wouldn’t happen to me, but that is exactly what you’re opening yourself up to if you don’t do a title search.
Mortgages, Liens, Encumbrances – a purchaser’s right to use the land can be affected by these. It is important to note that a valid contract to lease property or land not gets terminated by transfer of ownership.
Zoning, Environmental, and Planning Codes – When purchasing land in Thailand it is extremely important to verify the area's zoning, environmental, and planning codes, especially in beachfront areas which often have height restrictions.
Worst case scenario, you might find yourself owning a plot of land with little use for the property, and even just having to compromise on your dream home design due to restrictions could be devastating and costly.
For further reading, we recommend our article on Property and Land Title Deeds and Can Foreigners Own Property Legally in Thailand?
Although it certainly is possible to purchase property in Thailand without the assistance of a lawyer, we advise against it and always recommend our clients to get a lawyer.
You can read more in our Should I Use a Lawyer When Purchasing Property in Thailand article.
As always, do your due diligence and choose a reputable agent with good recommendations such as us at Pulse Real Estate. Contact us and find out more about how we can help you with your property purchase.
There has been a huge rise in the number of property developers in certain areas of Thailand recently, which has added to the diverse nature of development companies available.
When investing in off-plan property you are looking to be able to move in as soon as possible or get a timely return on your investment. Mismanaged developments can lead to:
You need to carry out due diligence on any developer you are interested to purchase from by looking at their previous projects and financial standing. If information is hard to find, ask your agent who will share their inside knowledge.
Pros:
Cons:
Pros:
Cons:
As we said at the beginning of this segment, the choice is ultimately yours, and only what you feel comfortable with matters. Keep in mind though, this is an area where the expertise of an estate agent can come in handy, as they will probably have knowledge of developers active in their area.
Everyone wants to know we’re getting a good deal, but when assessing price there are several variables to take into consideration.
Read more about this subject in our Cheap Condos in Phuket 101 article.
Alex is from the UK and our Managing Director, overseeing the business, managing the sales team, and also taking on clients himself. Alex is also a fluent Thai speaker, who has been living and working in Thailand for almost two decades.